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Rex Distributing Company was a wholesaler of Anheuser-Busch’s beer. When Rex sought to sell its business, Anheuser-Busch asserted a contractual right to “redirect” the sale to its preferred buyer, Mitchell Distributing Company. Rex alleged the redirect provision was void under Mississippi’s Beer Industry Fair Dealing Act (BIFDA) and that Anheuser-Busch’s interference with the sale caused it damages actionable under the same statute. The trial court dismissed Rex’s claims against Anheuser-Busch and Mitchell for failure to state a claim upon which relief can be granted. The Mississippi Supreme Court reversed, however, concluding Rex alleged a valid cause of action. The dismissal of Rex’s BIFDA claim against Anheuser-Busch and the derivative claims against Mitchell were reversed and the matter remanded for further proceedings. The Supreme Court affirmed the trial court’s judgment dismissing Rex’s other claims. View "Rex Distributing Company, Inc. v. Anheuser-Busch, LLC" on Justia Law

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The First Circuit affirmed the district court's grant of summary judgment to AXIS Reinsurance Company (AXIS) on Plaintiffs' complaint seeking to enforce a directors and officers insurance policy with AXIS, holding that the district court did not err in granting summary judgment in favor of AXIS and in denying Plaintiffs' motion for partial summary judgment. Plaintiffs were BioChemics, Inc., a pharmaceutical company based in Massachusetts, and John Masiz, its president and chief executive officer. Plaintiffs sought damages for what they claimed was AXIS's breach, under the relevant policy, of its duty to defend them in connection with an investigation conducted by the Securities and Exchange Commission against BioChemics and its officers. In its motion for summary judgment, AXIS argued that it did not breach its duty to defend under the policy because Plaintiffs were seeking to enforce that duty in relation to a claim that was first made before the policy took effect and thus was not covered by the policy. The district court granted the motion. The First Circuit affirmed, holding that the district court did not err in granting summary judgment to AXIS. View "Biochemics, Inc. v. Axis Reinsurance Co." on Justia Law

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In this case in which Debbie Worsham was awarded damages on her breach of contract action the Supreme Court affirmed the judgment of the circuit court denying Worsham's motion for attorney's fees and costs and Worsham's motion for reconsideration, holding that Worsham's motion for attorney's fees was untimely. On appeal, Worsham argued that she was entitled to attorney's fees pursuant to Ark. Code Ann. 16-22-308 and that the circuit court erred in denying her motion for attorney's fees because it was timely under Ark. R. Civ. P. 54(e). The Supreme Court affirmed the circuit court's denial of Worsham's motion for attorney's fees, holding (1) the circuit court correctly found that the attorney's fees motion was untimely; and (2) Worsham's argument that she was entitled to attorney's fees under section 16-22-308 was without merit. View "Worsham v. Day" on Justia Law

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The Supreme Court quashed preliminary writs issued preventing the circuit court from enforcing its orders sustaining motions to compel arbitration and stay proceedings filed by Dollar General, holding that the circuit court properly sustained Dollar General's motions to compel arbitration, stayed the cases, and ordered the parties to arbitrate the question of whether consideration existed. After Jesse Newberry and Becky Lowrance were discharged from Dollar General, they filed charges of discrimination. Dollar General filed motions to compel Newberry and Lowrance to submit their claims to arbitration and stay further proceedings on the grounds that the employees signed agreements to arbitrate. The circuit court sustained Dollar General's motions to compel. Newberry and Lowrance each sought a permanent writ of prohibition preventing the circuit court from enforcing its orders, arguing that Dollar General failed to meet its burden to show consideration supported either the employee arbitration agreements or the provisions delegating threshold issues of arbitrability to the arbitrator. The Supreme Court held that the circuit court properly sustained Dollar General's motions to compel arbitration and stay the cases. View "State ex rel. Newberry v. Honorable Steve Jackson" on Justia Law

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The Supreme Court affirmed the order of the district court entering partial summary judgment against Rex Rammell on all his claims against his former employer, Mountainaire Animal Clinic, P.C., its president, and its office manager except Rammell's breach of express contract claim and then dismissing that claim as a sanction for willful obstruction of discovery and fraud upon the court, holding that the district court did not err. Specifically, the Court held (1) deficiencies in Rammell's certification did not mandate dismissal of his appeal; (2) defects in Rammell's notice of appeal did not mandate dismissal; (3) the district court did not err in entering summary judgment against Rammell on his tortious interference claim; and (4) the district court did not abuse its discretion in dismissing Rammell's breach of express contract claim as a sanction for discovery violations. View "Rammell v. Mountainaire Animal Clinic, P.C." on Justia Law

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In this appeal brought by Alex Mantle and Marjorie Mantle the Supreme Court affirmed in part and reversed and remanded in part the district court's decision as to various post-trial issues in ongoing litigation arising from a soured business deal. The Court held (1) the district court lacked subject matter jurisdiction to offset the judgments when that issue was pending in the Supreme Court in Mantle I; (2) with respect to Killmer Settlement Funds, (a) there was no reviewable order in the record regarding whether the Garlands had standing to assert a direct claim against Karl Killmer, and (b) the Mantles did not have a superior security interest in the Killmer Settlement Funds by operation of the “general intangibles” clause of the FNB security agreement; (3) the district court did nor when it awarded North Star Energy & Construction, LLC's attorneys, The Kuker Group, their attorney fees from a portion of the Killmer Settlement Funds; and (4) the district court did not err when it issued a nunc pro tunc order that removed Marjorie Mantle’s name from the order that disbursed the Killmer Settlement Funds. View "Mantle v. North Star Energy & Construction LLC" on Justia Law

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Plaintiff filed suit against Allstate and its agent for breach of contract after Allstate refused to pay a claim for flood damage. The Fifth Circuit affirmed the district court's judgment in favor of Allstate, holding that the district court did not err in granting summary judgment on the breach of contract claim because the claim was time-barred. The court also held that the district court did not abuse its discretion in denying petitioner's Federal Rule of Civil Procedure 59(e) motion. View "Cohen v. Allstate Insurance Co." on Justia Law

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Rotondo was the sole owner of Apex, which wholly owned four limited liability companies (Directional Entities). Apex and the Directional Entities provided services, such as human resources, to different clients. Rotondo sold the Directional Entities’ key asset, customer lists, to AES, which agreed to pay Rotondo a share of its gross profits in the form of “Consulting Fees.” Two entities sought to collect Rotondo’s Consulting Fees: Akouri loaned money to one of Rotondo’s other companies and had a security interest in Apex’s assets and a judgment against Rotondo and Apex for $1.4 million. Rotondo also owes the IRS $3.4 million. The IRS filed several notices of tax liens against Rotondo, Apex, and the Directional Entities. AES filed an interpleader action. The Sixth Circuit affirmed summary judgment in favor of the IRS. The timing of a federal tax lien is measured by when the IRS gave notice of its lien, 26 U.S.C. 6323(a), (f); the timing of state security interests, like Akouri’s, is measured by when they become “choate”—i.e., complete or perfected. Akouri’s interest would be choate as of 2019, but the IRS’s tax liens date to before 2019. The court rejected Akouri’s attempt to recategorize the customer list assets as originally belonging to Apex rather than the Directional Entities. View "AES-Apex Employer Services, Inc. v. Rotondo" on Justia Law

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Jessie and Rickey Castleberry appealed a circuit court order dismissing their claims against Angie's List, Inc., based on a forum-selection clause in a contract between Angie's List and the Castleberrys. The Castleberrys, who are father and son, became members of Angie's List in 2014. They claim that they used their membership with Angie's List to locate a contractor, Dream Baths of Alabama, LLC ("Dream Baths"), which the Castleberrys hired to renovate a bathroom in Jessie Castleberry's house to make it handicapped accessible. According to the Castleberrys, Dream Baths was not properly licensed and poorly performed the work it contracted to do. The Alabama Supreme Court found the Castleberrys simply pointed out in the argument section of their brief that, in addition to suing Angie's List, they also sued Dream Baths. They asserted that "[t]his action pertains not only to the agreement between the Castleberrys and Angie's List, but to improper work performed upon a home located in Montgomery County, Alabama by defendant Dream Baths." The Castleberrys provided no significant discussion of the specific claims against Dream Baths and Angie's List. To the Supreme Court, it appealred that the Castleberrys' claims against Angie's List and Dream Baths were based on different categories of wrongdoing that were only tangentially related. The trial court, therefore, did not err in enforcing the forum-selection clause simply because the Castleberrys also sued Dream Baths. View "Castleberry v. Angie's List, Inc." on Justia Law

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Greenway Health, LLC, and Greenway EHS, Inc. (formerly EHS, Inc.) (collectively, "the Greenway defendants"), and Sunrise Technology Consultants, LLC, and Lee Investment Consultants, LLC (collectively, "the Sunrise defendants"), appealed separately a circuit court order denying their motion to compel the arbitration of certain claims asserted against them by Southeast Alabama Rural Health Associates ("SARHA"). Because the Alabama Supreme Court determined the Greenway defendants failed to establish the existence of a contract containing an arbitration provision, the Sunrise defendants' argument based on an intertwining-claims theory also failed. The Court therefore affirmed the trial court's denial of the Greenway defendants' and the Sunrise defendants' motions to stay proceedings and to compel arbitration. View "Greenway Health, LLC, and Greenway EHS, Inc. v. Southeast Alabama Rural Health Associates" on Justia Law