Debtor brought an adversary proceeding against Kestrel for breach of contract, alleging that Kestrel failed to pay for services owed that debtor provided Kestrel to help it collateralize a corporate debt offering with life settlements. The Fifth Circuit affirmed the district court's judgment upholding the bankruptcy court's holding that the contract was voidable because debtor failed to register as an investment adviser in violation of the Investment Advisers Act of 1940. The court held that debtor contracted with Kestrel to advise it about life settlements, and the life settlements contemplated in the origination agreement were investment contracts within the meaning of the Act. View "Living Benefits Asset Management v. Kestrel Aircraft Co." on Justia Law

UFAA filed suit seeking declaratory relief against the Companies and FGI (collectively, Farmers), alleging that Farmers engaged in numerous practices that violated the terms of Agent Appointment Agreements signed prior to 2009. The trial court found that UFAA lacked standing to pursue its claims and failed to demonstrate it was entitled to declaratory relief. The Court of Appeal held that UFAA had associational standing to pursue its claims related to performance and office standards, but did not have standing to pursue its other claims. However, on the merits, UFAA was not entitled to declaratory relief on its claims related to office locations and performance standards. In this case, although the Agreements did not expressly prohibit specific office locations or require agents meet performance standards, Farmers could terminate agencies for such reasons pursuant to the no-cause termination provision. The court also held that UFAA's single enterprise arguments were moot and UFAA's arguments related to the motion for new trial were meritless. Accordingly, the court affirmed the judgment. View "United Farmers Agents Assoc. v. Farmers Group, Inc." on Justia Law

In this case arising from a bond transaction involving a municipal golf course in the City of Buena Vista, Virginia (the City), the Fourth Circuit affirmed the district court’s motion to dismiss a ten-count complaint filed by ACA Financial Guaranty Corporation (ACA) and SunTrust Bank (Bank) against the City and the Public Recreational Facilities Authority (Authority), holding that the complaint failed to allege claims for which relief could be granted. In an effort to refinance a loan that the Authority took out to finance the construction of the golf course, the Authority issued over $9 million in bonds. The Authority and the Bank entered into a trust agreement regarding the bonds. To repay the bonds, the Authority leased the golf course to the City. The City and the Authority then issued deeds of trust to the Bank pledging certain property as security. The City later failed to pay the rent due on the golf course lease, and the Authority could not repay the bonds. ACA, which provided insurance on the bonds, and the Bank sued. The district court dismissed the complaint. The Fourth Circuit affirmed, holding that the City’s obligation to make rent payments was not legally enforceable when the obligation was expressly subject to the city’s annual decision to appropriate funds. View "ACA Financial Guaranty v. City of Buena Vista, Virginia" on Justia Law

In 2006, T3 Enterprises entered into the Distributor Agreement with Safeguard Business Systems (SBS). In 2014, T3 filed suit alleging SBS had breached the Distributor Agreement by failing to prevent other SBS distributors from selling to T3’s customers and for paying commissions to the interfering distributors rather than to T3. The Distributor Agreement between SBS and T3 contained an arbitration clause indicating disputes must be resolved in a Dallas, Texas based arbitration procedure. The Distributor Agreement also contained a forum selection clause indicating that the Federal Arbitration Act (FAA) and Texas law would apply to any disputes between the parties. Pursuant to this agreement, SBS moved the district court to compel arbitration in Dallas. The district court determined the parties had to submit to arbitration, but that the Dallas forum selection clause was unenforceable, and arbitration was to take place in Idaho. The Arbitration Panel (the Panel) found for T3 and the district court confirmed the award in the amount of $4,362,041.95. The district court denied SBS’s motion to vacate or modify the award. SBS appealed, but finding no reversible error, the Idaho Supreme Court affirmed the district court. View "T3 Enterprises v. Safeguard Business Sys" on Justia Law

The Supreme Court reversed the decision of the circuit court denying Defendant’s motion to compel arbitration, holding that the circuit court erred in denying the motion for arbitration because the parties’ disagreements were controversies arising out of or relating to their contract, and therefore, pursuant to the contract, an arbitrator must resolve them. Plaintiffs sued Defendant, alleging that the home Defendant constructed for Plaintiffs suffered from defects that caused damage to the home. Defendant filed a motion to compel arbitration under the arbitration clause of the parties’ contract. The circuit court denied the motion, concluding that the arbitration clause was unenforceable. The supreme Court reversed, holding that the parties’ disagreement over the interpretation of the arbitration clause, as well as the application of the doctrine of impossibility to the arbitration clause, were “controvers[ies] arising out of or relating to the contract,” and therefore, the circuit court erred in refusing to compel arbitration. View "Brush Arbor Home Construction, LLC v. Alexander" on Justia Law

Telecommunications providers Peerless and Verizon entered into an Agreement, providing for lowered rates for certain switching services. If a contractual rate did not apply, Peerless billed Verizon its tariff rates, as filed with the FCC and state public utility commissions. The relationship failed. Verizon withheld payments. Peerless sued Verizon, alleging 12 counts, including breach of the Agreement and breach of tariffs. Verizon alleged that Peerless was an access stimulator and failed to reduce its rates as required by the FCC and that Peerless was billing certain services at inappropriate rates. The district court dismissed four counts and granted Verizon summary judgment on Count X. The district court referred the access stimulation and other counterclaim issues to the FCC under the primary-jurisdiction doctrine and stayed Verizon’s counterclaims. It nonetheless granted Peerless summary judgment on its breach-of-tariff claims, reasoning that Verizon’s defense could be adjudicated separately from the collection action; entered a partial final judgment on the breach-of-tariff claims pursuant to Federal Rule of Civil Procedure 54(b), finding that it would be “unjust” to make Peerless wait to collect the unpaid bills; and granted Rule 54(b) partial final judgment on claims regarding the breach of the Agreement, reasoning that Verizon had not disputed the breach, only the amount owed. The Seventh Circuit vacated in part. Rule 54(b) partial final judgment was improper, given the significant factual overlap with pending claims. A genuine issue of fact persists with respec breach-of-contract claims. View "Peerless Network, Inc. v. MCI Communications Services, Inc." on Justia Law

NRP made preliminary arrangements with the City of Buffalo to build affordable housing on city‐owned land and to finance the project in part with public funds. The project never came to fruition, allegedly because NRP refused to hire a political ally of the mayor. NRP sued the city, the Buffalo Urban Renewal Agency, the mayor, and other officials The district court resolved all of NRP’s claims in favor of defendants. The Second Circuit affirmed. NRP’s civil RICO claim against the city officials is barred by common‐law legislative immunity because the mayor’s refusal to take the final steps necessary to approve the project was discretionary legislative conduct, and NRP’s prima facie case would require a fact-finder to inquire into the motives behind that protected conduct. NRP’s “class of one” Equal Protection claim was properly dismissed because NRP failed to allege in sufficient detail the similarities between NRP’s proposed development and other projects that previously received the city’s approval. NRP’s claim for breach of contract was properly dismissed because the city’s “commitment letter” did not create a binding preliminary contract in conformity with the Buffalo City Charter’s requirements for municipal contracting. NRP fails to state a claim for promissory estoppel under New York law, which requires proof of “manifest injustice.” View "NRP Holdings LLC v. City of Buffalo" on Justia Law

This appeal arose in the context of Safeguard Business Systems, Inc.’s (“SBS”) alleged breach of its distributorship agreement with Thurston Enterprises, Inc. (“Thurston”). After a jury trial Thurston was awarded approximately $6.8 million in damages. SBS filed a motion for post-judgment relief, which the district court denied. The Idaho Supreme Court determined the district court correctly decided that SBS breached Thurston’s account protection rights under the Agreement as a matter of law. Furthermore, the district court properly denied SBS’s motions for post-judgment relief on Thurston’s claim for fraud in the inducement of the March 2014 agreement, on Thurston’s claim that SBS breached the pricing guarantee in the Agreement, and on Thurston's claim for good faith and fair dealing because the jury’s findings were supported by substantial evidence. The Supreme Court, therefore, affirmed the district court's judgment. View "Thurston and T3 v. Safeguard" on Justia Law

In 2007, the VA sought to lease space for a Parma, Ohio VA clinic. A pre-solicitation memorandum stated that the building must comply with the Interagency Security Committee (ISC) Security Design Criteria. The subsequent Solicitation discussed the physical security requirements. Premier submitted a proposed design narrative that did not address those requirements. In 2008, Premier and the VA entered into a Lease. Premier was to provide a built-out space as described in the Solicitation. About 18 months later, the VA inquired about Premier’s first design submittal, advising Premier to obtain access to the ISC standards, because “the project needs to be designed according to the ISC.” The ISC denied Premier’s request, stating that the documents had to be requested by a federal contracting officer who has a “need to know.” The VA forwarded copies of three ISC documents. Some confusion ensued as to which standard applied. The VA then instructed Premier to disregard the ISC requirements and to incorporate the requirements from the latest VA Physical Security Guide. Months later, the VA changed position, stating that “[t]he ISC is the design standard.” Premier’s understanding was that only individual spaces listed in a Physical Security Table needed to comply with the ISC. The VA responded that the entire building must conform to the ISC at no additional cost. Premier constructed the building in accordance with the ISC standards then unsuccessfully requested $964,356.40 for additional costs. The Federal Circuit affirmed summary judgment in favor of the government. The contract unambiguously requires a facility conforming to ISC security requirements. View "Premier Office Complex of Parma, LLC v. United States" on Justia Law

The U.S. Department of Housing and Urban Development (HUD) administers the project-based Section 8 housing program using Housing Assistance Payments renewal contracts. The landlords own publicly-assisted housing in Yonkers and allege that the government breached the renewal contracts, resulting in money damages. The trial court determined that it had jurisdiction, found the government liable for breach of contract, and awarded $7.9 million in total damages. The Federal Circuit vacated, finding that the trial court lacked jurisdiction because the parties were not in privity of contract. The contracts at issue were executed in a two-tiered system. First, HUD contracted with a public housing agency (New York State Housing Trust Fund Corporation), which contracted with the Landlords. Neither contract explicitly named both the government and the Landlords as directly contracting parties. View "Park Properties Associates v. United States" on Justia Law