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The Supreme Court affirmed the judgment of the superior court denying the motion brought by Plaintiff, SMS Financial XXV, LLC, for summary judgment and granting the cross-motion for summary judgment brought by Defendants, David Corsetti and 385 South Main Street, LLC, on Plaintiff’s suit alleging that Defendants breached the terms of a promissory note. In the cross-motion for summary judgment, Defendants asserted that Plaintiff was unable to enforce or collect upon the note because the note had been lost. The hearing justice granted Defendants’ cross-motion for summary judgment. The Supreme Court affirmed, holding (1) under the plain language of R.I. Gen. Laws 6A-3-309(a) Plaintiff was not entitled to enforce the note because the note was in the possession of the original holder of the note when it was lost, not Plaintiff, to whom the original holder assigned its interest; and (2) pursuant to the statute, Plaintiff was not entitled to enforce the note’s provision mandating that Defendants issue a replacement note. View "SMS Financial XXV, LLC v. Corsetti" on Justia Law

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Fiorentini is the owner and president of a small technology company. When cancer treatment left him unable to perform his job, he received total disability benefits under a Paul Revere policy. Five years later, after Fiorentini was back at work and exercising full control of the company, Paul Revere notified him that he no longer qualified for the benefits. Fiorentini argued that he still satisfied the policy’s requirements for total disability because, although he could perform most of his job duties, he was unable to do what it takes to generate new business. Paul Revere rejected that argument, encouraging him to apply for “residual disability benefits,” which would have required Fiorentini to show that he was either unable to perform “one or more of the important duties” of his occupation or could only perform his important job duties for “80% of the time normally required to perform them” and that he earned at least 20% less than he did predisability. Fiorentini instead sued for breach of contract. The Seventh Circuit affirmed summary judgment for Paul Revere. The total disability provision does not cover the insured who has a diminished ability to perform his occupation, but rather the insured who is unable to continue it. View "Fiorentini v. Paul Revere Life Insurance Co." on Justia Law

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The Supreme Court dismissed this appeal from a circuit court order granting Defendant’s motion to compel arbitration, holding that no statutory authority existed to entertain the appeal as a matter of right. Plaintiffs sued Defendant seeking a declaratory judgment and rescission of a contract for the sale of land and an incorporated lease. The circuit court issued a temporary restraining order against Defendant and a show cause order setting a hearing for preliminary injunction. Thereafter, Defendant filed a demand for arbitration. The circuit court entered an order compelling arbitration on all claims alleged in Plaintiffs’ complaint. Plaintiffs appealed. The Supreme Court dismissed the appeal, holding that the order compelling Plaintiffs to engage in arbitration was not an order appealable as a matter of right under either S.D. Codified Laws 15-26A-3(2) or S.D. Codified Laws 21-25A-35. View "Stoebner v. Konrad" on Justia Law

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Simpkins began working for DuPage Housing Authority (DHA) in 2009 under an “Independent Contractor Agreement” for “general labor” to rehabilitate vacant properties to make them suitable for occupants. In 2011, the rehab work slowed and Simpkins began working primarily at Ogden townhome community, for which DHA served as on‐site management. Ogden’s property manager and maintenance supervisor, DHA employees, gave Simpkins instructions and prioritized the order in which he needed to complete tasks. In May 2012, Simpkins and DHA entered into another “Independent Contractor Agreement,” covering “general labor” at Ogden. Simpkins worked full‐time and exclusively for DHA; reported his hours by invoice; and was paid bi‐weekly via check. DHA issued Simpkins 1099‐MISC tax forms, while others received W‐2 forms. Simpkins knew that DHA considered him an independent contractor and repeatedly requested to become an employee. DHA did not provide him with pension, insurance, or other benefits. In 2015, Simpkins was injured in a car accident; his relationship with DHA ended. He filed suit, claiming that DHA had repeatedly failed to pay him overtime and was required to provide him with disability benefits. The district court ruled that Simpkins was not an employee under the Fair Labor Standards Act and rejected all of his federal claims. The Seventh Circuit reversed, finding genuine issues of fact as to the control exercised by DHA, questions concerning the origin of tools and material, and ambiguity as to the termination date of the second contract. View "Simpkins v. DuPage Housing Authority" on Justia Law

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In 2003, Pain Center contracted with SSIMED for medical-billing software and related services. In 2006, the parties entered into another contract, for records-management software and related services. In 2013, Pain Center sued SSIMED for breach of contract, breach of warranty, breach of the implied duty of good faith, and four tort claims, all arising out of alleged shortcomings in SSIMED’s software and services. The district judge found the entire suit untimely. The Seventh Circuit affirmed on all but the claims for breach of contract. The judge applied the four-year statute of limitations under Indiana’s Uniform Commercial Code (UCC), holding that the two agreements are mixed contracts for goods and services, but the goods (i.e., the software) predominate. The Seventh Circuit disagreed. Under Indiana’s “predominant thrust” test for mixed contracts, the agreements in question fall on the “services” side of the line, so the UCC does not apply. The breach-of-contract claims are subject to Indiana’s 10-year statute of limitations for written contracts and are timely. Pain Center licensed SSIMED’s preexisting, standardized software but received monthly billing and IT services for the life of both contracts. View "Pain Center of SE Indiana, LLC v. Origin Healthcare Solutions LLC" on Justia Law

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Kenosha used Comsys as its information-technology department. Comsys had its offices inside City Hall and stored its electronic information on the City’s servers. Their contract automatically renewed from year to year unless terminated, and provided that either party “shall have the right, with or without cause, to terminate the Agreement by written notice delivered to the other party at least twelve (12) calendar months prior to the specified effective date of such termination.” In 2014, hostilities broke out between the parties: a Comsys employee because a city employee with plans to bring the IT department in-house and there were allegations of stolen email and a search of the servers. The City’s Common Council voted to end the contract. The Mayor delivered formal notice days later. The contract ended a year later. Comsys sued, alleging First and Fourth Amendment violations. The district court dismissed several claims on the pleadings and dismissed the Council’s members on the ground of legislative immunity but denied motions for summary judgment on the First and Fourth Amendment claim and official immunity claims by the Mayor, City Administrator, and the City Manager. The Seventh Circuit reversed as to those officials, finding that they did not violate clearly established law and cannot be ordered to pay damages under 42 U.S.C. 1983, and noting that trying to isolate contract administration from speech may be impossible in this situation. View "Comsys Inc. v. Pacetti" on Justia Law

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In 2008, facing insolvency, Chrysler offered certain employees incentives to take early retirement, in addition to benefits they had earned under its Pension Plan. Pearce, then 60 years old, had worked for Chrysler for 33 years, and was eligible for the buyout plus the Plan’s 30-and-Out benefits--a monthly pension supplement “to help early retirees make ends meet until eligible for Social Security.” Chrysler provided Pearce with Pension Statements that repeatedly advised him to consult the Summary Plan Document (SPD). The SPD cautioned that “[i]f there is a conflict ... the Plan document and trust agreement will govern.” With respect to the 30-and-Out benefits, the SPD stated: “You do not need to be actively employed at retirement to be eligible ... you must retire and begin receiving pension benefits within five years of your last day of work for the Company.” Pearce believed that he could not lose his 30-and-Out benefits if he lost his job and declined the buyout offer. Chrysler terminated him that same day. Pearce was told that, because he had been terminated before retirement, he was ineligible for the 30-and-Out benefits; the SPD omitted a clause contained in the Plan, which said that an employee who was terminated was ineligible. Pearce sued under the Employee Retirement Income Security Act, 29 U.S.C. 1001. The Sixth Circuit reversed the district court’s grant of summary judgment to the Plan on Pearce’s request for reformation, affirmed summary judgment rejecting Pearce’s request for equitable estoppel, and remanded. Analyzing Pearce’s request for reformation under contract law principles, the court should consider information asymmetry--Chrysler had access to the Plan while Pearce did not but repeatedly referred Pearce to the SPD--and other factors. View "Pearce v. Chrysler Group LLC Pension Plan" on Justia Law

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At issue was whether an agreement between two children, executed before their father’s death, could be enforced using a chapter in the Probate Code providing for the adjudicated compromise of controversies. Father, who was terminally ill, asked his son and daughter to agree between themselves how they would divide some of his assets after his death. Before Father died, Son attempted to rescind the agreement. After Father died, Daughter sued to enforce the agreement as part of the probate process. The trial court found that the agreement was not a codicil to Father’s will and that Son rescinded the agreement. Accordingly, the court ordered the personal representatives to administer Father’s estate according to his will without reference to the agreement. The Supreme Court affirmed the trial court’s order and findings, except for its alternative finding that Son rescinded the agreement, holding that the Probate Code chapter at issue may be used to enforce only post-mortem compromises. View "In re Supervised Estate of Gary D. Kent" on Justia Law

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Auto-Owners Insurance Company provided automobile insurance to Frank and Nancy Csaszar and their daughter, Jennifer. But when that policy’s term came to a close, Auto-Owners informed Mr. and Mrs. Csaszar that, because of their daughter’s driving record, it would only renew their policy if it excluded her from coverage. The Csaszars agreed. The policy accordingly included an “excluded-driver” provision that stated the policy “shall provide no coverages” for “claims arising out of [Jennifer Csaszar’s] operation or use of any automobile. While this new policy was operative, an uninsured motorist rear-ended Jennifer while she was driving a vehicle not scheduled under her parents’ Auto-Owners policy. Jennifer filed a claim with Auto-Owners, requesting it pay her $500,000 in uninsured and underinsured motorist (UM/UIM) coverage. Auto-Owners denied the claim because it believed the excluded-driver provision barred Jennifer from such coverage. It then sought a declaratory judgment that Jennifer was not entitled to any coverage, including UM/UIM coverage, under her parents’ policy. In response, Jennifer filed a counterclaim seeking a declaration she was, in fact, entitled to this coverage. The district court granted Auto-Owners’ motion for summary judgment. Finding no reversible error in that judgment, the Tenth Circuit affirmed the district court. View "Auto-Owners Insurance Company v. Csaszar" on Justia Law

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The Supreme Judicial Court affirmed the district court’s grant of partial summary judgment in favor of Avis Rent A Car System, LLC on Avis’s claim for breach of contract but vacated the court’s award of damages. Defendant, a Maine resident, rented a car from an Avis location in Las Vegas, Nevada. The vehicle was damaged when it was involved in an accident in Las Vegas. When Defendant refused to pay for the damages, Avis filed a complaint against Defendant, alleging breach of connect and negligence. The district court concluded that Avis was entitled to partial summary judgment on the breach of contract claim as a matter of law. After an evidentiary hearing, the court granted Avis its requested amount of $15,342 and also awarded attorney fees and costs. The Supreme Judicial Court reversed in part, holding that partial summary judgment as to liability was correctly granted but because Avis presented no admissible evidence as to the amount of damages, it failed to prove it was entitled to the damages awarded to it. The Court then remanded the case for an award of nominal damages in accordance with Nevada law. View "Avis Rent A Car System, LLC v. Burrill" on Justia Law