The defendant hired the plaintiff as a gardener and required him to sign an employment agreement (“Agreement”), which mandates arbitration of “all disputes between Employee and Company relating, in any manner whatsoever, to the employment or termination” of the employee. Plaintiff sued his employer, and the employer demanded arbitration. Plaintiff argued that the defendant waived the right to arbitrate, that he did not sign the Agreement or signed without informed consent, and the Agreement is unconscionable.On appeal, the court reasoned that arbitration agreements are “valid, enforceable and irrevocable, save upon such grounds as exist for the revocation of any contract.” Code Civ. Proc., Sec. 1281. To declare an agreement unenforceable, a court must find procedural and substantive unconscionability. Here, the court found that defendant had superior bargaining power over the plaintiff. Further, the employer drafted the Agreement and presented it to the plaintiff as a condition of employment on a take-it-or-leave basis. The plaintiff claimed he had no opportunity to review the Agreement and was told the English-language Agreement involved a company change, not that it waived his right to a jury trial. The plaintiff was instructed to sign the Agreement or be fired.The court found that the employer presented the plaintiff with an agreement in a language he cannot read, misrepresented the nature of the document, denied him an opportunity to review it, included unfair and onerous provisions, and chilled his ability to claim civil rights violations. Thus, the court denied the defendant’s motion to compel arbitration. View "Nunez v. Cycad Management LLC" on Justia Law

In this action brought for the nonpayment of a promissory note the First Circuit affirmed the rulings of the district court entering summary judgment against SBK Holdings USA, Inc. and denying SBK's motion to set aside the judgment, holding that there was no error.Unibank for Savings sued Edgar and Elina Sargsyan and 999 Private Jet, LLC based on their nonpayment of a promissory note secured by a Gulfstream aircraft. The district court granted Unibank's unopposed motion for a preliminary injunction authorizing it to repossess the aircraft. SBK subsequently moved to intervene, asserting an alleged superior security interest in the aircraft. The district court allowed the intervention. The district court entered summary judgment against SBK and denied its subsequent motion to set aside the judgment. The First Circuit affirmed, holding that Unibank held a perfected security interest in the aircraft, while SKB did not. View "UniBank for Savings v. SBK Holdings USA, Inc." on Justia Law

Pursuant to the Ownership Interest Purchase Agreement dated April 23, 2014 (the “Agreement”), Appellant North American Leasing, Inc. purchased Appellant NASDI, LLC, and Appellant Yankee Environmental Services, LLC. NASDI was in the business of providing demolition and site redevelopment services throughout the United States. The seller was Appellee NASDI Holdings, LLC, which before the sale, possessed all ownership interests in NASDI and Yankee. Great Lakes Dredge and Dock Corporation (“Great Lakes”), the parent company of NASDI Holdings, agreed that performance and payment bonds on existing projects being performed by NASDI and Yankee at the time of the sale would remain in place for the duration of each project. The Agreement also provided that North American Leasing, NASDI, Yankee, and Appellant Dore & Associates Contracting, Inc. (“Dore”), would indemnify NASDI Holdings and its affiliates for any losses arising from those bonds that Great Lakes agreed would remain in place on existing projects. After the sale of NASDI and Yankee was completed, Great Lakes incurred losses from performance and payment bonds on a project known as the Bayonne Bridge project. The Defendants have taken the position throughout this litigation that they have no obligation to indemnify the Plaintiffs because the Plaintiffs’ claims notices were untimely under the Agreement. The Court of Chancery rejected the Defendants’ contention and entered judgment against the Defendants for the total amount of the Plaintiffs’ claim. Finding no reversible error in this judgment, the Delaware Supreme Court affirmed. View "North American Leasing, Inc. v. NASDI Holdings, LLC" on Justia Law

The Supreme Court affirmed the circuit court's judgment finding as a matter of law that Defendant Antero Resources Corporation breached the parties' contract and granting partial summary judgment in favor of Plaintiff Directional One Services Inc., USA, holding that the court did not err in its rulings.At issue was the ruling of the circuit court that because two separate documents involved the same parties, the same subject, and were clearly related, then the documents should be construed together as the terms of one contract between the parties. The Supreme Court affirmed the judgment of the circuit court in its entirety, holding that there was no merit to Defendant's allegations of error on appeal. View "Antero Resources Corp. v. Directional One Services, Inc., USA" on Justia Law

The Supreme Court reversed the portion of the order of the circuit court applying prejudgment interest to the jury verdict in this lawsuit alleging breach of express and implied warranties and other claims but otherwise affirmed, holding that the circuit court erred in its assessment of prejudgment interest.Plaintiff sued Defendant, a car dealership, alleging breaches of consumer laws and contract principles. During discovery, DCW withheld requested documents even after the circuit court imposed monetary sanctions. When the requested documents appeared as an exhibit in DCW's motion for summary judgment the circuit court denied the motion and sanctioned DCW. The Supreme Court affirmed in part and reversed and remanded in part, holding that the circuit court (1) did not abuse its discretion by issuing the sanction, approving the jury's verdict, and ordering DCW to pay attorney fees and costs; but (2) erred by applying prejudgment interest to the entire verdict. View "Dan's Car World, LLC v. Delaney" on Justia Law

This appeal involved a challenge to how Geico General Insurance Company (“GEICO”) processed insurance claims under 21 Del. C. 2118. Section 2118 provided that certain motor vehicle owners had to obtain personal injury protection (“PIP”) insurance. Plaintiffs, all of whose claims for medical expense reimbursement under a PIP policy were denied in whole or in part, were either GEICO PIP policyholders who were injured in automobile accidents or their treatment providers. Plaintiffs alleged GEICO used two automated processing rules that arbitrarily denied or reduced payments without consideration of the reasonableness or necessity of submitted claims and without any human involvement. Plaintiffs argued GEICO’s use of the automated rules to deny or reduce payments: (1) breached the applicable insurance contract; (2) amounted to bad faith breach of contract; and (3) violated Section 2118. Having reviewed the parties’ briefs and the record on appeal, and after oral argument, the Delaware Supreme Court affirmed the Superior Court’s ruling that the judiciary had the authority to issue a declaratory judgment that GEICO’s use of the automated rules violated Section 2118. The Supreme Court also affirmed the Superior Court’s judgment as to the breach of contract and bad faith breach of contract claims. The Court concluded, however, that the issuance of the declaratory judgment was improper. View "GEICO General Insurance Company v. Green" on Justia Law

The Supreme Court reversed the judgment of the court of appeals reversing the judgment of the trial court, rendered pursuant to a jury verdict, that Stephen Stelly owned real property free of any encumbrance, holding that Stelly adequately pleaded a trespass-to-try-title claim.Stelly brought this action against John DeLoach claiming that DeLoach had breached the parties' contract by not delivering a real property deed after Stelly had paid off the debt on the land's original purchase price.The jury entered a verdict in favor of Stelly. The court of appeals reversed, concluding that Stelly pleaded only a breach-of-contract claim, not a trespass-to-try-title claim and that the statute of limitations had run on Stelly's breach of contract claim. The Supreme Court reversed and remanded the case for further proceedings, holding that Stelly adequately pleaded a trespass-to-try-title claim. View "Stelly v. DeLoach" on Justia Law

The Supreme Court reversed the judgment of the court of appeals as to attorney's fees in this case concerning whether Defendant, a condominium association, was entitled to attorney's fees after obtaining a take-nothing judgment on claims by Plaintiff, a unit owner, the Supreme Court held that the fee award was authorized by Tex. Prop. Code 82.161(b).Plaintiff sued Defendant for, among other things, fraud, civil conspiracy, breach of contract, and negligence. Defendant filed a counterclaim for declaratory judgment and requested attorney's fees. The trial court granted Defendant's motion on twelve declaratory issues. After a trial, the court granted judgment for Defendant and awarded attorney's fees. The court of appeals affirmed the judgment for Defendant but reversed the award of attorney's fees. The Supreme Court reversed in part, holding that Defendant was a prevailing party under Tex. Prop. Code 82.161(b) and was thus entitled to reasonable attorney's fees. View "Sunchase IV Homeowners Ass'n v. Atkinson" on Justia Law

The Consumer Financial Protection Bureau (“CFPB”) sued Ocwen Financial Corporation (“Ocwen”) and several of its affiliates claiming some of the company's mortgage-servicing practices violated federal law. The CFPB’s suit was resolved by a settlement agreement that was memorialized in a formal consent judgment. The CFPB sued Ocwen a second time, alleging various consumer-protection law violations occurring between January 2014 and February 2017. The district court granted summary judgment to Ocwen on res judicata grounds, reasoning that the 2013 action barred the lawsuit.The CFPB contends that the 2013 action’s res judicata effect should be controlled by that case’s consent judgment, not its complaint and that the underlying settlement agreement shows that the parties didn’t intend to preclude a challenge to any conduct occurring from 2014 onwards. The court reasoned that determining the preclusive effect of a consent judgment requires applying contract law principles. The court found that the res judicata effects of an earlier lawsuit resolved by a consent judgment are measured by reference to the terms of the consent judgment, rather than the complaint. Thus, CFPB may sue Ocwen for alleged violations that occurred between January 2014 and February 2017, if the claims are not covered by the consent judgment’s servicing standard, monitoring, and enforcement regime. View "Consumer Financial Protection Bureau v. Ocwen Financial Corporation, et al." on Justia Law

Cromer, formerly a “managing loan officer” for Union Home Mortgage, agreed to several restrictive covenants, including that he would “not become employed in the same or similar capacity” with a competitive entity. Cromer left Union and started working for Homeside Financial as a “non-producing” branch manager. Union sought a preliminary injunction to enforce Cromer’s restrictive covenants, citing the 2016 Defend Trade Secrets Act, 18 U.S.C. 1836; the Ohio Uniform Trade Secrets Act; the non-compete, confidentiality, and nonsolicitation covenants; the contractual duty of loyalty; and the common law duty of loyalty. Against Homeside, Union alleged tortious interference with business relationships and with contracts.The district court issued an injunction—without any time limitation—prohibiting Cromer, and anyone acting in concert, from “competing with Union Home.” The Sixth Circuit vacated. The injunction failed to satisfy the specificity requirements of FRCP 65(d)(1), was overbroad, and was otherwise improperly granted under the standard for preliminary injunctions. The broad prohibition covers any form of competition, irrespective of Cromer’s employer, job title, or duties, and created an inherent risk that the scope of the injunction exceeds the Agreement that the parties signed. The district court also failed to consider whether the non-compete covenant is reasonable and thus enforceable. View "Union Home Mortgage Corp. v. Cromer" on Justia Law