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Great Lakes Brewing sought to end its relationship with one of its distributors, Glazer’s., after it executed a corporate merger without seeking Great Lakes’ consent, as required by their contract. Glazer’s successor corporation sought to preliminarily enjoin the impending termination, arguing that the contract’s consent requirement was invalid under the Ohio Alcoholic Beverages Franchise Act, Ohio Rev. Code 1333.82–87. The district court agreed and found that the remaining equities weighed in favor of granting the preliminary injunction. The Sixth Circuit reversed. Because the parties’ consent provision is valid under state law, the distributor had no likelihood of success on the merits. Far from prohibiting such provisions section 1333.84(F) actually anticipates that parties will include such provisions in their written franchise agreements; the fact that it requires manufacturers to “act in good faith in accordance with reasonable standards for fair dealing” regarding the sale of a distributor’s business necessarily implies that manufacturers can have a say over the transaction. View "Southern Glazer's Distributors of Ohio, LLC v. Great Lakes Brewing Co." on Justia Law

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Girdwood Mining Company transferred stock and mineral royalty interests to Comsult LLC pursuant to a contract between the parties. Girdwood Mining later refused to perform its obligations with respect to the stock and royalty interests, arguing that the contract transferring the stock and royalty interests was illegal. The superior court ruled that because the contract was illegal, it would not grant relief to either party. Comsult appealed seeking enforcement of its stock and royalty interests. the Alaska Supreme Court held that Comsult’s stock and royalty interests and its rights to enforce them remained valid, and therefore reversed the superior court’s decision. View "Comsult LLC v. Girdwood Mining Company" on Justia Law

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Plaintiffs claimed that the sale of property without their consent to an entity of which Defendants were principals, was fraudulent. Plaintiffs also named as a defendant the title insurance and escrow agent in connection with the sale of the property. The superior court granted summary judgment in favor of all defendants. The Supreme Court affirmed the judgment in part and vacated it in part, holding (1) the hearing justice erred in determining that there was no factual issue regarding damages, and summary judgment is vacated as to the individual defendants to the extent that Plaintiffs may show damages for lost profits sustained in their individual capacities only; (2) the superior court properly granted summary judgment for the individual defendants as to Plaintiffs’ tortious interference with a contractual relationship claims, intentional interference with prospective contractual relations claims, breach of contract claims, fraud claims, and civil conspiracy claims; and (3) the judgment is affirmed in favor of the title company in all respects. View "Fogarty v. Palumbo" on Justia Law

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In this commercial property dispute between a landlord, Roadepot, LLC and Keyserton, LLC (collectively, Roadepot), and a tenant, Home Depot, U.S.A., Inc., regarding sewer assessment charges, the Supreme Court affirmed in part and vacated in part judgments of the superior court. The Supreme Court held that the superior court (1) properly granted partial summary judgment in favor of Home Depot obligating Roadepot to pay the disputed sewer assessment charges; (2) the superior court erred in requiring Roadepot to reimburse Home Depot for sewer assessment charges paid by Home Depot before September 17, 2009; and (3) did not err in limiting Home Depot’s request for prejudgment interest and denying its claim for late fees on the sewer assessment charges. View "Roadepot, LLC et al. v. Home Depot, U.S.A., Inc." on Justia Law

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Jewels by Park Lane, Inc. ("JBPL"), and Kathy Cassidy, the national director for JBPL, sought a writ of mandamus compelling the Circuit Court to vacate its order denying their motion to dismiss an action against them on the ground of improper venue arising out of a forum-selection clause, and to enter an order dismissing the case. JBPL was a multilevel marketing company that sold jewelry through independent contractors who host parties offering JBPL's jewelry line for sale. Jennifer Miller became a “director” for LBPL. Miller sued JBPL and Cassidy, alleging JBPL promised to employ her for a 12-month period and to pay her $4,000 a month for that period. Miller set out claims alleging account stated, open account, breach of contract, and fraud. Miller sought compensatory damages, punitive damages, and attorney fees. The employment agreement contained a “forum selection clause” in which any disputes between the parties would be settled in accordance with the laws of Illinois. Miller admitted that the director agreement contained a forum selection clause but argued that she would not have entered into the agreement but for the fraud perpetuated by JBPL and Cassidy. The Alabama Supreme Court concluded JBPL and Cassidy have shown a clear legal right to have the action against them dismissed on the basis that venue in the Tallapoosa Circuit Court was, by application of the outbound forum-selection clause, improper. The trial court exceeded its discretion in denying their motion to dismiss Miller's action. View "Ex parte Jewels by Park Lane, Inc." on Justia Law

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In construing an unambiguous deed, the parties’ intent is paramount, and that intent is determined by conducting a careful and detailed examination of a deed in its entirety rather than applying some default rule that appears nowhere in the deed’s text. In this case, the Supreme Court construed a deed that conveyed a mineral estate and the surface above it. At issue was whether the language of the deed passed the entire burden of an outstanding non-participating royalty interest (NPRI) to the grantees or whether the NPRI proportionately burdened the grantor’s reserved interest. The trial court ruled that the deed burdened both parties with an outstanding NPRI and that the parties must share the burden of the NPRI in proportion to their respective fractional mineral interests. The court of appeals affirmed. The Supreme Court affirmed, holding that the only reasonable reading of the deed in this case resulted in the parties bearing the NPRI burden in shares proportionate to their fractional interests in the minerals. View "Wenske v. Ealy" on Justia Law

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In this dispute involving mineral interests pooled for natural gas production, lessors and other stakeholders alleged that the lessee underpaid royalties owed to them under their mineral leases and pooling agreements. The issues presented in this appeal centered on the lessee’s efforts to avoid a contractual obligation to pay royalties to the overlapping unit stakeholders for production from a zone shared by the two pooled units. The lower courts held that the agreement to pay royalties was enforceable. The Supreme Court affirmed, holding (1) ineffective conveyance of title does not preclude the lessee’s liability under a contract theory; (2) the lessee’s quasi-estoppel and scrivener’s error defenses to contract enforcement failed as a matter of law; and (3) the lessee was not entitled to recoup royalty payments from stakeholders in another pooled unit; (4) this court’s decision in Hooks v. Samson Lone Star, Ltd. Partnership, 457 S.W. 3d 52 (Tex. 2015) precluded the unpooling stakeholders’ claims; and (5) the court of appeals properly construed a proportionate-reduction clause to award royalties owed to the overlapping unit stakeholders in accordance with their fifty percent mineral-interest ownership. View "Samson Exploration, LLC v. T.S. Reed Properties, Inc." on Justia Law

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ConocoPhillips Co. and Alma Energy Corp. exchanged oil and gas interests under an exchange agreement in which each indemnified the other for any environmental claims related to the properties received. Alma later filed for protection under Chapter 11 of the Bankruptcy Code. Thereafter, Noble Energy Inc. agreed to by the properties Alma had received from Conoco under the exchange agreement. After the bankruptcy proceeding concluded, an environmental contamination suit was filed against Conoco, and Noble refused to indemnify Conoco under the exchange agreement. Conoco filed suit against Noble alleging breach of the exchange agreement and seeking to recover the $63 million it paid to settle the suit. The trial court granted summary judgment for Noble. The court of appeals reversed and entered summary judgment for Conoco, concluding that the exchange agreement was an executory contract that was assumed by Alma and assigned to Noble in the bankruptcy proceeding. The Supreme Court affirmed, holding that under the terms of the bankruptcy court order confirming the plan of reorganization and the agreement for sale of Alma’s assets, Noble was assigned an undisclosed contractual indemnity obligation of Alma. View "Noble Energy, Inc. v. Conocophillips Co." on Justia Law

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In 2010, the Indianapolis Colts NFL professional football team established an online marketplace for owners of season tickets to transfer their season ticket rights upon payment of a fee equal to 30 percent of the sale price of the tickets. Frager bought 94 season tickets in 2015, believing that he would be able to renew those season tickets in 2016. The Colts refused to give him season tickets for 2016. He sued, claiming conversion. The Seventh Circuit affirmed the dismissal of the suit. A season-ticket holder has no right to future season tickets unless the Colts sold them that right in the first place, and the Colts ticket contract forecloses that possibility. Frager had a reasonable expectation that he would be able to renew his season tickets for 2016. The fact that purchasers of season tickets are willing to pay a 30 percent transfer fee in the online marketplace indicates that the expectation of renewal added to the salable value of season tickets, but given the wording of his contract with the Colts it was merely “a speculation on a chance, not a legal right.” View "Frager v. Indianapolis Colts, Inc." on Justia Law

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Plaintiff purchased an automobile insurance policy from Progressive. The policy included UM coverage with a limit of $25,000. Plaintiff was injured in an automobile accident with an uninsured motorist. Plaintiff filed a proof of loss for UM benefits with Progressive. ORS 742.061(1) generally provides for an award of attorney fees when an insured brings an action against his or her insurer and recovers more than the amount tendered by the insurer. Subsection (3) provides a “safe harbor” for the insurer: an insured is not entitled to attorney fees if, within six months of the filing of a proof of loss, the insurer states in writing that it has accepted coverage, that it agrees to binding arbitration, and that the only remaining issues are the liability of the uninsured motorist and the “damages due the insured.” At issue in this case was what the safe-harbor statute meant when it referred to the “damages due the insured.” The insurer, Progressive Classic Insurance Company, responded to plaintiff’s claim by agreeing that the accident was covered by the policy, but challenged the nature and extent of plaintiff’s injuries, as well as the reasonableness and necessity of his medical expenses. Plaintiff argued that, by reserving the right to challenge the nature and extent of his injuries, Progressive raised issues that went beyond the “damages due the insured.” The trial court, Court of Appeals and Oregon Supreme Court all rejected plaintiff’s construction of the safe-harbor statute. View "Spearman v. Progressive Classic Ins. Co." on Justia Law