Justia Contracts Opinion Summaries
Certain Underwriters at Lloyd’s v. Axon Pressure Products Inc.
This dispute arose from a 2013 oil well blowout on the HERCULES 265 drilling rig in the Gulf of Mexico. After the rig's charterer filed suit raising products liability claims against a refurbisher of the rig's blowout-prevention components, counterclaims and third-party claims ensued. The district court subsequently granted a series of summary judgments, based both on contractual indemnity and also on the merits of the liability claims. The Fifth Circuit affirmed the district court's grant of summary judgment as to Hercules' duty to defend, hold harmless, and indemnify Axon; reversed the district court's grant of summary judgment as to Walter's duty to directly indemnify Axon; reversed the district court's grant of summary judgment as to Walter's duty to indemnify Hercules for Axon's claims; vacated the district court's order excluding Bellemare's testimony; vacated the district court's orders excluding the expert reports of Sones, Bourgoyne, Williams, Rusnak, Bellemare, and Adair, as well as the orders excluding the affidavits of Sones and Bourgoyne; reversed the district court's grant of summary judgment as to the causation and "unreasonably dangerous condition" prongs of the Louisiana Products Liability Act; vacated the district court's final judgment and fee orders; and remanded for further proceedings. View "Certain Underwriters at Lloyd's v. Axon Pressure Products Inc." on Justia Law
Walgreen Co. v. Johnson & Johnson
Walgreen sells Remicade, a drug used to treat autoimmune diseases that is marketed and manufactured by Janssen. Walgreen procures Remicade from the Wholesaler, which acquires Remicade pursuant to a Distribution Agreement with JOM, a Janssen affiliate. Only Wholesaler and JOM are identified as parties to the Distribution Agreement. New Jersey law governs the Distribution Agreement, which contains an Anti-Assignment Provision, stating that “neither party may assign, directly or indirectly, this agreement or any of its rights or obligations under this agreement … without the prior written consent of the other party.” In 2018, Wholesaler assigned to Walgreen “all of its rights, title and interest in and to” its claims against Janssen “under the antitrust laws of the United States or of any State arising out of or relating to [Wholesaler]’s purchase of Remicade[.]” Walgreen filed suit against Janssen, asserting various federal antitrust claims relating to Remicade, citing exclusive contracts and anticompetitive bundling agreements with health insurers that suppressed generic competition to Remicade, which allowed Janssen to sell Remicade at supra-competitive prices. If the Anti-Assignment Provision prevented the assignment, then, under Supreme Court precedent, Walgreen, an “indirect” Remicade purchaser, would lack antitrust standing to assert claims against Janssen. The district court granted Janssen summary judgment. The Third Circuit reversed. The antitrust claims are a product of federal statute and thus are extrinsic to, and not rights “under,” a commercial agreement. View "Walgreen Co. v. Johnson & Johnson" on Justia Law
Brillman v. New England Guaranty Insurance Company, Inc.
At issue in this case before the Vermont Supreme Court was the meaning of “date of loss” for the purpose of an insurance policy’s condition that any action be commenced within one year after the “date of loss.” The trial court concluded that the insurance provision requiring that an action be brought “within one year after the date of loss” was ambiguous and had to be interpreted against insurer to mean that the one-year period began to run when insurer breached its obligations (i.e., at the time homeowner received final, allegedly insufficient, payment from insurer). The court accordingly denied insurer summary judgment and granted partial summary judgment to homeowner. After its review, the Supreme Court concluded the provision was unambiguous in requiring suit to be brought within one year of the date of the occurrence giving rise to coverage and reversed the partial summary judgment for homeowner. View "Brillman v. New England Guaranty Insurance Company, Inc." on Justia Law
Liberty Mutual Fire Insurance Co. v. Fowlkes Plumbing, L.L.C.
In May 2015, the Chickasaw County School District entered into a contract with Sullivan Enterprises, Inc., for window restoration work on the Houlka Attendance Center. In July 2015, during construction, a fire began that completely consumed the attendance center. Liberty Mutual, the school district’s insurer, paid the school district $4.3 million for the damage to the building. Liberty Mutual then filed a subrogation suit against Sullivan Enterprises, Fowlkes Plumbing, LLC, and Quality Heat & Air, Inc. The United States District Court for the Northern District of Mississippi found that the waiver of subrogation did not apply to damages to the “non-Work” property, thus Liberty Mutual could proceed in litigation as to “non-Work” property damages. The United States Court of Appeals for the Fifth Circuit allowed an interlocutory appeal and certified a question to the Mississippi Supreme Court regarding whether the subrogation waiver applied to “non-Work” property. The Supreme Court determined that based on the plain meaning of the contract language, the waiver of subrogation applied to both work and non-work property. View "Liberty Mutual Fire Insurance Co. v. Fowlkes Plumbing, L.L.C." on Justia Law
Wanke, Industrial, Commercial, etc. v. AV Builder Corp.
Wanke, Industrial, Commercial, Residential, Inc. (Wanke) was a company that installed waterproofing systems. It sued Scott Keck and another of its former employees in 2008 for trade secret misappropriation after they left Wanke to form a competing business, WP Solutions. The parties entered into a stipulated settlement and later litigated Keck's alleged breach of that settlement agreement. To collect, Wanke filed a creditor's suit against third party AV Builder Corp. (AVB) to recover $109,327 that AVB owed WP Solutions in relation to five construction subcontracts. Following a bench trial, the court entered judgment in Wanke's favor for $83,418.94 after largely rejecting AVB's setoff claims. Invoking assignment principles, AVB contended: (1) Wanke lacked the ability to sue given judgment debtor WP Solutions's corporate suspension; (2) Wanke's suit was untimely under section 708.230 of the Code of Civil Procedure; and (3) the trial court erred in denying its request for warranty setoffs under section 431.70. Rejecting each of these contentions, the Court of Appeal affirmed the judgment View "Wanke, Industrial, Commercial, etc. v. AV Builder Corp." on Justia Law
Chevron Oronite Co., LLC v. Jacobs Field Services North America, Inc.
After Wayne Bourgeois contracted mesothelioma, he filed suit against Chevron and other defendants in state court. Chevron settled with Bourgeois for $550,000, and then sought contractual indemnity from Jacobs Field Services. The district court determined that Chevron was entitled to the full value of the settlement as well as about $256,000 in attorney's fees and costs. The Fifth Circuit affirmed, holding that Chevron easily met its burden to establish potential liability as the governing rule, and the district court did not err in setting potential liability as the operative standard; Chevron established, as a matter of law, that it was potentially liable to Bourgeois; and the district court did not err by finding that the relevant indemnity provision unambiguously entitled Chevron to indemnity in the Bourgeois suit and attorney's fees and "ordinary litigation costs." View "Chevron Oronite Co., LLC v. Jacobs Field Services North America, Inc." on Justia Law
NESC, Inc. v. Bacon Construction Co.
In this dispute between a general contractor, Bacon Construction Co., Inc., and a subcontractor, NESC, Inc., regarding an agreement to install flooring in a college dormitory the Supreme Court affirmed the judgment of the superior court in favor NESC and awarding NESC $125,733.67 in damages, holding the trial justice did not clearly err in denying Bacon's motion for a new trial, appropriately denied Bacon's request for a remittitur and properly denied NESC's cross appeal. NESC brought this suit alleging, inter alia, breach of contract and unjust enrichment. Bacon filed a counterclaim against NESC alleging breach of contract and negligence. The jury rendered a verdict in favor of NESC. On appeal, Bacon challenged the trial justice's decision denying Bacon's motion for a new trial and its alternative request for a remittitur. NESC cross appealed from the denial of its motion to amend and its motion to reconsider its motion to amend. The Supreme Court affirmed the judgment and orders of the superior court, holding that the court did not err. View "NESC, Inc. v. Bacon Construction Co." on Justia Law
Antrim Pharmaceuticals LLC v. Bio-Pharm, Inc.
The patent for Lexapro, an anti-depressant, was expiring, creating a potentially lucrative opportunity to sell a generic version, escitalopram. BioPharm, a generic drug manufacturer, and Antrim planned to sign an updated version of the terms for a previous venture, but never signed a contract for the escitalopram venture. The FDA approved Antrim’s Abbreviated New Drug Application for escitalopram. Bio-Pharm manufactured the first batch but never shipped it to Antrim because the companies never signed a new agreement. Antrim sued Bio-Pharm for breaching an oral contract. Bio-Pharm counterclaimed, arguing promissory estoppel or breach of the claimed oral contract. Antrim unsuccessfully argued the court should preclude testimony by Bio-Pharm’s expert on how the FDA regulates ANDA holders. BioPharm successfully argued the court should preclude testimony by Antrim’s expert on industry practices and how Bio-Pharm’s alleged breach impaired the value of Antrim’s business. The court rejected Antrim’s proposed Jury Instruction that under FDA policy an ANDA holder owns the product underlying that ANDA and denied Antrim’s motion to bar Bio-Pharm from requesting lost profits in its counterclaim, despite missing the Rule 26(a)(1) disclosure deadline. A jury ruled in favor of Bio-Pharm on Antrim’s claim and in favor of Antrim on Bio-Pharm’s counterclaim. Neither party was awarded damages. The Seventh Circuit affirmed, rejecting Antrim’s challenges to the jury instructions, evidentiary rulings, and allowing Bio-Pharm to request lost profits. View "Antrim Pharmaceuticals LLC v. Bio-Pharm, Inc." on Justia Law
Robinson v. Town of Marshfield
The First Circuit affirmed the district court's grant of summary judgment on Appellant's federal law claims under the Age Discrimination and Employment Act, and on the state-law claims for discrimination, retaliation based on a complaint of age discrimination, and failure to investigate and vacated the summary judgment on the state law claims for retaliation based on a report of gender discrimination, breach of contract, intentional interference with contractual relations, and defamation, holding that the court erred in granting summary judgment as to these claims. This lawsuit arose from events that led to Appellant's retirement from his position as Fire Chief for the Fire Department of the Town of Marshfield, Massachusetts. The district court granted summary judgment in favor of the Town on all of Appellant's federal and state law claims. The First Circuit affirmed in part and vacated in part, holding (1) summary judgment was properly granted as to some of Appellant's claims; but (2) as to the remaining state law claims, there was no analogue to the common law claims in the federal law claims that were addressed, and rather than attempt to resolve the state law issues that were in dispute as to these claims, their dismissal was directed without prejudice. View "Robinson v. Town of Marshfield" on Justia Law
33 Carpenters Construction, Inc. v. IMT Insurance Co.
The Supreme Court affirmed the decision of the district court granting summary judgment in favor of an insurer on the grounds that the plaintiff's contractual assignment was unenforceable, holding that a residential contractor acting as an unlicensed public adjuster cannot enforce its post-loss contractual assignment of insurance benefits against the homeowner's insurer. The contractor in this case represented homeowners as an assignee of their insurance claim for storm damage to their home. The district court concluded that the contractor's contractual assignment was invalid because the contractor acted as an unlicensed public adjuster. The Supreme Court affirmed, holding that the district court did not err in ruling that the contractor acted as an unlicensed public adjuster and that the assignment contract was void and unenforceable under Iowa Code 103A.71(5). View "33 Carpenters Construction, Inc. v. IMT Insurance Co." on Justia Law