Justia Contracts Opinion Summaries

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Plaintiff filed suit against defendant, alleging a common count claim for "money lent." The trial court found that plaintiff loaned defendant $874,708.44, which defendant never repaid. Defendant argued that the money came from entities controlled by plaintiff rather than from plaintiff himself. The Court of Appeal affirmed the trial court's judgment against defendant because defendant waived his defense of lack of capacity by failing to assert it at the earliest opportunity. The court also held that the trial court properly concluded that proof of an implied promise to repay was legally sufficient for plaintiff's common count claim. In this case, substantial evidence supported the trial court's finding that defendant made such an implied promise. Finally, defendant's statute of frauds argument is meritless. View "Rubinstein v. Fakheri" on Justia Law

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Founding USM to acquire FCC licenses, Elkin contributed $750,000 and Norman $250,000. Norman acquired the licenses; his day-to-day involvement ended. In 1998, the FCC announced another auction. USM won several licenses, which Elkin transferred to TEG, another company that he owned; purportedly USM did not have sufficient funds. Elkin did not respond to Norman's inquiries. Some FCC notices listed USM as the winning bidder; others referred to TEG as the licenses' owner. Before 2002, without notifying Norman, Elkin caused USM to enter into a Shareholder Loan Agreement (SLA) to treat any amount Elkin contributed above his capital requirement as a loan. Elkin lent USM more than $600,000. In 2000-2001, USM sold licenses. Norman received federal income tax forms that declared USM had realized a capital gain. In 2000-2002, USM paid Elkin $615,026 from the sales proceeds. Norman received nothing. In 2002. Elkin admitted that licenses had been sold and that he had taken a distribution. Norman's 2004 Delaware "books and records" action was resolved in his favor in 2005. Norman sued, raising various tort and contract claims After two trials and a remand, the district court concluded that the limitations period for each of Norman’s claims was tolled during the Delaware Action and that Norman’s claim based on 2002 distributions was timely. Oer Third Circuit mandate, the court ruled in Normans' favor with respect to the execution of the SLA. For Norman’s other claims, including those based on 2001 distributions, the court held that Norman had at least inquiry notice beyond the limitations period. Elkin then argued that Norman was not entitled to tolling relating to the Delaware Action because he brought that suit in bad faith. The district court refused to consider new evidence. The Third Circuit affirmed, except with respect to Norman’s claim based on 2001 events. View "Norman v. Elkin" on Justia Law

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In 2015, CPA’s predecessor was awarded Defense contracts to provide stevedoring and terminal services along the Eastern Seaboard, including Charleston. The contracts incorporated a Federal Acquisition Regulation provision that gave the government options to extend the term of the agreement for up to four one-year periods by giving “preliminary written notice of its intent to extend at least 60 days before the contract expire[d].” Such notice did not obligate the government to exercise the option. After the preliminary notice, the government was required to exercise the option itself within 15 days of the expiration date. On June 15, 2016, the government exercised the first-year option. During the extension period, CPA purchased its predecessor and began seeking revised pricings, asserting that it might default because the contracts were not profitable. On January 31, 2017, the government’s contracting officer sent an email to CPA, stating: The Government intends to exercise options at awarded rates … expects [CPA] to continue performing per the terms. A May 3, 2017, formal letter to CPA, stated the government's intent to extend the contract through 30 June 2018. CPA responded that the notice was untimely. The government pointed to the January 31 email as the preliminary written notice. In July 2017, CPA sought a declaration that the contract had expired and additional money for its performance under protest. A contracting officer denied the claims. The Board of Contracts Appeals and the Federal Circuit affirmed. The government satisfied the preliminary notice requirement; the email unambiguously provided preliminary written notice of the government’s intent to extend at least 60 days before the contract expired on May 1, 2017. View "Cooper/Ports America, LLC v. Secretary of Defense" on Justia Law

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Subcontractor Construction Drilling, Inc. (CDI) appealed a trial court’s judgment on the merits in its breach-of-contract claim against Engineers Construction, Inc. (ECI). CDI contended the trial court erred in: (1) holding that the terms of the parties’ subcontract required CDI to request a change order before it billed ECI for “drilling in obstructions” in excess of CDI’s bid price; (2) denying CDI’s motions to reopen the evidence and for a new trial; and (3) awarding ECI $234,320 in attorneys’ fees under the Prompt Payment Act. ECI cross-appealed, arguing the trial court improperly allowed CDI’s owner to offer opinion testimony absent a finding of reliability under Vermont Rule of Evidence 702 and maintaining that his testimony could not have met this standard in any event. Therefore, should the Vermont Supreme Court reverse the trial court’s denial of CDI’s breach-of-contract claim, ECI asserted the matter had to be remanded for a new trial without such testimony. The Court affirmed the trial court, and therefore did not reach the issue raised in ECI’s cross-appeal. View "Construction Drilling, Inc. v. Engineers Construction, Inc." on Justia Law

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Plaintiff David Hester was a reality television star on “Storage Wars.” Plaintiff made the winning bid and purchased the contents of a self-storage unit at an auction held by defendant, Public Storage. Defendant learned it had mistakenly sold the goods about half an hour after the sale was complete. The unit’s occupant had paid his past due rent weeks before the auction, but defendant’s computer system incorrectly marked the unit for sale. Due to this error, defendant immediately rescinded the deal based on two documents plaintiff had signed that contained clauses allowing defendant to void the sale for any reason. Plaintiff claimed defendant’s rescission was invalid and sued for breach of contract and conversion, among other claims. Defendant moved for summary judgment on the contract and conversion claims on grounds it had properly voided the sale under the null and void clauses. The trial court granted defendant’s motion. Plaintiff appealed, arguing summary judgment was inappropriate because the null and void clauses were invalid because: (1) they were precluded by various statutes governing self-storage auction sales; and (2) he agreed to them under duress. After review, the Court of Appeal disagreed, and rejected plaintiff’s argument that defendant was required to file an unlawful detainer action to retake possession of the purchased goods after it rescinded the sale. View "Hester v. Public Storage" on Justia Law

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Under a 2008 consignment agreement, Eloquence would consign jewelry and loose diamonds to HCC for resale. HCC was to send a monthly sales report of each item sold. Upon receipt of that report, Eloquence would prepare an invoice setting forth the payment due from HCC. The Agreement required HCC to pay the invoices within 30 days and provided for a bi-annual reconciliation of the inventory of consigned goods. Following a reconciliation, two invoices dated November 10, 2009, identified “items reported as missing” from an HCC store: 16 pieces of jewelry ($64085). Eloquence gave HCC a five-month extension for payment. Delivery of consigned goods to HCC continued for seven years, totaling $616,633.30 in sales invoices. In 2017, Eloquence sued HCC and its general partners, asserting “breach of written agreement” and “open book account” by failing to pay the November 2009 invoices, in the total amount of $64,085 and that it “furnished to HCC, at its request, on an open book account, merchandise of the agreed value of $64,085. The court of appeal affirmed summary judgment. Eloquence’s breach of contract cause of action time-barred because the agreement contemplated a series of discrete transactions each evidenced by a separate invoice. The doctrine of continuous accrual applies; the statute of limitations expired in May 2014. There was no agreement by the parties to enter into an open book accountt. View "Eloquence Corp. v. Home Consignment Center" on Justia Law

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The Supreme Court affirmed the order of the circuit court affirming amended integration orders entered by the Arkansas Oil & Gas Commission (AOGC), holding that the AOGC did not exceed its statutory authority in granting SWN Production, LLC's (SWN) request to reduce the royalty payable under Appellants' oil and gas leases when the lessees elected to go "non-consent." On appeal, Appellants argued that the AOGC's actions were both ultra vires and arbitrary and capricious. The Supreme Court affirmed, holding (1) while there is no statutory provision specifically stating that the AOGC may reduce the royalty rate contained in a lease, there is also no statutory language expressly stating that the consenting parties - such as SWN - are responsible for payment of royalties when an uncommitted leasehold working-interest owner elects to go non-consent; and (2) the AOGC's orders were neither ultra vires nor arbitrary and capricious. View "Hurd v. Arkansas Oil & Gas Commission" on Justia Law

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The Oklahoma Supreme Court granted certiorari to address first impression questions of: (1) whether a home warranty plan met the definition of an insurance contract; (2) and if it was insurance, whether a forced arbitration clause in such a contract was unenforceable under the Oklahoma Uniform Arbitration Act; (3) whether 12 O.S. 2011 section 1855 of the Oklahoma Uniform Arbitration Act was a state law enacted for the purpose of regulating insurance under the McCarran-Ferguson Act; and (4) whether pursuant to the McCarran-Ferguson Act, did section 1855 preempted the application of the Federal Arbitration Act. The Supreme Court answered all questions in the affirmative. View "Sparks v. Old Republic Home Protection Co., Inc." on Justia Law

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CRST filed suit against TransAm, alleging that TransAm wrongfully recruited and hired several long-haul truck drivers who were under contract with CRST. The district court granted TransAm's motion for summary judgment and dismissed all of CRST's claims with prejudice. The Eighth Circuit held that the district court erred with respect to the causation element but did not err with respect to the existence of a valid contract element, and that the record contains sufficient evidence to support the intentional and improper interference element. The court also held that the district court erred in granting TransAm's motion for summary judgment on CRST's unjust enrichment claim. Finally, the court held that the district court did not abuse its discretion in finding the drivers were not indispensable parties. Accordingly, the court reversed and remanded the district court's order granting TransAm's motion for summary judgment and affirmed the district court's determination that the drivers are not indispensable parties to the proceedings. View "CRST Expedited, Inc. v. Transam Trucking, Inc." on Justia Law

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The United States District Court for the District of South Carolina certified a question of law to the South Carolina Supreme Court. Plaintiff Johnny Thomerson alleged Defendants, the former owners of Lenco Marine (a manufacturer of boat products), failed to give him a three-percent ownership interest in Lenco that was promised to him as part of his compensation package. Plaintiff was hired by Lenco no later than May 2007. Defendant Samuel Mullinax was the CEO of Lenco and Defendant Richard DeVito was its president. Lenco was sold in December 2016 to Power Products, LLC. In his complaint, Plaintiff asserted claims against Defendants for: (1) breach of contract and the covenant of good faith and fair dealing; (2) promissory estoppel; (3) quantum meruit and unjust enrichment; (4) negligent misrepresentation; (5) constructive fraud; and (6) amounts due under the South Carolina Payment of Wages Act. Defendants moved for summary judgment, arguing the claims were time-barred. The federal court asked whether the three-year statute of limitations of S.C. Code Ann. 15-3-530 applied to claims for promissory estoppel. The Supreme Court took the opportunity to clarify state law in this regard, and held that the statute of limitations did not apply to promissory estoppel claims. View "Thomerson v. DeVito" on Justia Law