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Justia Contracts Opinion Summaries
Bruder v. Seneca Mortgage Services, LLC
The Supreme Court affirmed the judgment of the trial court in favor of Seneca Mortgage Services after finding that Neal Bruder breached the parties' consulting agreement by failing to pay the consultant's fee, holding that there was no error.The court of appeals reversed the judgment of the trial court, finding that Seneca's recovery of the fee would sanction the requirement of an illegal act as a condition of the loan Seneca obtained to Bruder. The Supreme Court granted transfer, vacated the court of appeals' opinion, and affirmed the trial court's judgment, holding (1) the record lacked support for the conclusion that Bruder was required, or even asked, to commit an illegal act; and (2) the parties' agreement provided for the consultant's fee to be paid regardless of whether a particular financing offer was accepted. View "Bruder v. Seneca Mortgage Services, LLC" on Justia Law
Posted in:
Contracts, Supreme Court of Indiana
Sonoiki v. Harvard University
The First Circuit affirmed in part and reversed in part the judgment of the district court dismissing Plaintiff's complaint against Harvard University for breach of contract and other related claims, holding that the district court erred in dismissing Plaintiff's breach of contract claim.The day before Plaintiff was about to graduate from Harvard three female Harvard students accused him of sexual assault. Following a disciplinary hearing, Harvard withheld Plaintiff's undergraduate degree. Plaintiff sued, and the district court dismissed the complaint for failure to state a claim. The First Circuit reversed in part, holding (1) at the pleadings stage, Plaintiff's allegations, taken as true, stated a plausible breach of contract claim; and (2) the district court properly dismissed the remaining counts of Plaintiff's complaint. View "Sonoiki v. Harvard University" on Justia Law
SWN Production Co., LLC v. Kellam
The Supreme Court answered certified questions seeking to clarify whether, in payment of royalties under an oil and gas lease, the lessor may be required to bear a portion of the post-production costs incurred in rendering the oil and gas marketable.Specifically, the district court asked whether Estate of Tawyne v. Columbia Natural Resources, LLC, 633 S.E.2d 22 (W. Va. 2006) is still good law in West Virginia and then asked the Supreme Court to expound upon its holding in Tawney. The Supreme Court answered (1) Tawney is still good law; and (2) this Court defines to answer the reformulated question of what level of specificity Tawney requires of an oil and gas lease to permit the deduction of post-production costs from a lessor's royalty payments. View "SWN Production Co., LLC v. Kellam" on Justia Law
State ex rel., 3C LLC v. Honorable Eric H. O’Briant
The Supreme Court granted Petitioner's request for a writ of prohibition as moulded in this case involving a business dispute rooted in a contract between Petitioner, a manufacturer of hemp-derived vaping cartridges, and Respondent, its distributor, holding that Petitioner was entitled to the writ.Respondent filed a complaint in the Circuit Court of Logan County even though the parties' contract required that any lawsuit arising out of the breach of their agreement be filed in the Circuit Court of Hamilton County, Indiana. The circuit court denied Petitioner's motion to dismiss the complaint based on the forum-select clause. The Supreme Court remanded the case after granting a writ of prohibition, holding that the circuit court incorrectly evaluated the enforceability of the forum-selection clause. View "State ex rel., 3C LLC v. Honorable Eric H. O'Briant" on Justia Law
Posted in:
Contracts, Supreme Court of Appeals of West Virginia
Patel v. Tulsa Pain Consultants
Plaintiff-appellant Jayen Patel, M.D. brought a tort claim for wrongful termination against defendant-appellee Tulsa Pain Consultants, Inc. (TPC). The trial court found Patel was not an at-will employee and entered a directed verdict in favor of TPC. Patel appealed, and the Court of Civil Appeals affirmed. TPC moved for appeal-related attorney fees, which the Court of Civil Appeals denied. The Oklahoma Supreme Court granted certiorari to determine whether TPC had a contractual right to recover attorney fees as the prevailing party in Patel's wrongful termination claim. After review, the Supreme Court found that the specific language in the parties' employment agreement authorized attorney fees in this case. View "Patel v. Tulsa Pain Consultants" on Justia Law
Crown Energy Co. v. Mid-Continent Casualty Co.
Crown Energy Company ("Crown") brought suit against Mid-Continent Casualty Company ("Mid-Continent") seeking declaratory judgment that two commercial general liability policies issued to Crown provided coverage for claims of property damage brought against Crown in a separate action. The claims arose out of seismic activity allegedly caused by Crown's use of waste water disposal wells in its oil and gas operations. Mid-Continent filed a counterclaim, seeking declaratory judgment that the claims were not covered under the policies because the seismic activity did not constitute an "occurrence" and that the claims fell within a pollution exclusion to the policies. The trial court granted summary judgment in favor of Crown. Mid-Continent appealed, and the Court of Civil Appeals affirmed the trial court's judgment. After its review, the Oklahoma Supreme Court found that the seismic activity did constitute an occurrence under the policies, and that the pollution exclusion did not bar coverage. The Court of Civil Appeals’ judgment was reversed and the trial court affirmed. View "Crown Energy Co. v. Mid-Continent Casualty Co." on Justia Law
Cardiovascular Systems, Inc. v. Cardio Flow, Inc.
Cardiovascular Systems, Inc. (“CSI”) brought this action against Cardio Flow, Inc. (“Cardio Flow”), alleging the breach of a settlement agreement that resolved ownership of intellectual property rights related to atherectomy devices. Cardio Flow was not a named party to the settlement, however, and moved for summary judgment on that basis. In response, CSI asserted that principles of equitable estoppel and agency bound Cardio Flow to abide by the agreement.
The district court rejected CSI’s arguments and dismissed its claims and the Eighth Circuit affirmed. The court held that equitable estoppel provides no basis to enforce the settlement agreement against Cardio Flow. The court reasoned that the doctrine of equitable estoppel generally involves some type of misrepresentation. Given the Minnesota Supreme Court’s unequivocal holdings elsewhere that a representation or concealment is essential, the court declined to supplant the usual equitable estoppel elements.
Further, the party who signed the agreement with Plaintiff was not acting as Defendant's agent when she signed the settlement; there was no joint venture between the signer and Defendant, and Defendant did not control the signer's lawsuit against Plaintiff which led to the settlement agreement. View "Cardiovascular Systems, Inc. v. Cardio Flow, Inc." on Justia Law
Mecosta County Medical Center v. Metropolitan Group Property, et al.
Mecosta County Medical Center, d/b/a Spectrum Health Big Rapids (and others) sued Metropolitan Group Property and Casualty Insurance Company and State Farm Mutual Automobile Insurance Company at the Kent Circuit Court, seeking personal protection insurance (PIP) benefits related to a single-car crash involving Jacob Myers. Myers co-owned the vehicle involved in the crash with his girlfriend; his girlfriend’s grandmother had purchased a no-fault insurance policy on the vehicle through Metropolitan Group. Myers assigned plaintiffs his right to collect PIP benefits in the amount of his treatment bills. After the assignment, Myers sued Metropolitan Group and State Farm at the Wayne Circuit Court for PIP benefits related to other costs arising from the crash. Plaintiffs sued defendants at the Kent Court to recover on the assigned claim. Defendants moved for summary judgment against Myers at the Wayne Court. State Farm argued that because Myers did not live with the State Farm policyholders he was not covered by their policy. Metropolitan Group asserted that Myers was not entitled to coverage because he did not personally maintain coverage on the vehicle. The Wayne Court granted both motions and dismissed Myers’s PIP claim with prejudice. Myers did not appeal. While defendants’ motions were pending with the Wayne Court, Metropolitan Group also moved for summary judgment at the Kent Court on the same basis as its motion in the Wayne Court. However, the Wayne Court granted defendants’ motions before the Kent Court considered Metropolitan Group’s motion. After the Wayne Court granted summary judgment for defendants, defendants filed additional motions for summary judgment at the Kent Court, arguing plaintiffs’ claims were barred under the doctrines of res judicata and collateral estoppel because the Wayne Court had concluded that Myers was ineligible for PIP benefits. The Kent Court granted the motion, holding that plaintiffs’ claims were barred by res judicata and collateral estoppel. Plaintiffs appealed, and the Court of Appeals reversed in a split, unpublished opinion. The appellate majority held that an assignee was not bound by a judgment against an assignor in an action commenced after the assignment occurred. The Michigan Supreme Court affirmed, finding that plaintiffs were not in privity with Myers with respect to the judgment entered subsequently to the assignment, and therefore, plaintiffs could not be bound by that judgment under the doctrines of res judicata and collateral estoppel. View "Mecosta County Medical Center v. Metropolitan Group Property, et al." on Justia Law
Kelly v. University of Vermont Medical Center
Plaintiff Sean Kelly appealed the grant of summary judgment to the University of Vermont Medical Center (UVMMC) on employment discrimination and breach-of-contract claims arising from UVMMC’s decision not to extend his one-year medical fellowship. UVMMC selected plaintiff for the 2017-18 fellowship. UVMMC was aware that plaintiff suffered from an adrenal deficiency that had delayed the completion of his residency. In the first five months of the fellowship, plaintiff missed nineteen full days and parts of nine more days for various reasons. By February 2018, after missing several more days and expressing that he felt “frustrated with [his] absences” and “overall inadequate as a fellow,” program personnel became concerned that plaintiff was falling behind in his training. In a March 30 meeting, the program director told plaintiff his performance had “deficiencies and these need[ed] to be addressed.” At some point during this period, the director also told plaintiff he “should plan on extending [his] fellowship due to [his] time out and some minor deficits through August.” Plaintiff emailed other program personnel expressing frustration at the prospect of staying through August to complete his training. On April 14, 2018, plaintiff suffered a stroke, and on April 19th he attempted suicide. He was hospitalized from April 14 through May 3 and was not cleared to return to work until June 1, 2018. In all, plaintiff missed approximately six more weeks of the fellowship. On or about May 31, the director called plaintiff and told him that while UVMMC had determined he needed six more months of training to finish the fellowship, it could not accommodate additional training for that length of time. UVMMC paid plaintiff his remaining salary. Plaintiff filed a grievance under the Graduate Medical Education rules; the grievance committee affirmed UVMMC's decision. Because the decision not to extend his fellowship was an academic decision, there was no employment action and consequently no adverse employment action. The Vermont Supreme Court did not find plaintiff's arguments on appeal persuasive, and affirmed the grant of summary judgment in UVMMC's favor. View "Kelly v. University of Vermont Medical Center" on Justia Law
Anderson v. Coleman, et al.
Plaintiff Terri Anderson appealed the grant of summary judgment entered in favor of the defendants. At issue was an agreement to purchase certain residential property located on Ono Island in Baldwin County, Alabama ("the property") for $1.4 million. In 2012, Robert Bowling III acquired the property and executed a promissory note in favor of Merchants Bank. Merchants Bank subsequently assigned the promissory note and its mortgage interest in the property to Wells Fargo Bank ("Wells Fargo"). In 2018, Bowling conveyed his interest in the property to Robin and Michael Coleman via a vendor's lien deed. The Colemans executed a promissory note evidencing a debt to Bowling. In 2020, the Colemans conveyed a partial interest in the property to their friends, France Frederick and Thomas Sparks. In March 2021, the Colemans, Frederick, and Sparks entered into a purchase agreement regarding the property with Anderson. In April 2021, the sellers decided they had made a mistake by agreeing to sell the property. Robin Coleman eventually sent a communication to Anderson's realtor explaining, in relevant part: "We have voided the contract you sent us and have decided to keep our property." Anderson then initiated this action seeking an injunction prohibiting the sellers from violating the terms of the purchase agreement and a judgment requiring specific performance under the terms of the purchase agreement or, as an alternative to specific performance if the court were to determine that such relief was unavailable, damages for breach of contract. The sellers moved to dismiss Anderson's complaint, arguing that title to the property was unmarketable due to Bowling's and Wells Fargo's respective unsatisfied interests in the property. Accordingly, they contended, the language of the purchase agreement required a refund to Anderson of her earnest-money deposit and an automatic termination of the purchase agreement. The Alabama Supreme Court held only that the sellers could not invoke the marketability requirement of the termination provision set out in the purchase agreement to unilaterally rescind the purchase agreement under the circumstances presented by the record because it appeared that Anderson was willing to waive marketability of the sellers' title to the property to purchase whatever interest they were able to convey and because the sellers have expressly agreed to sell their interest in the property to Anderson, provided that the other pertinent contingencies of the purchase agreement were met. Judgment was reversed and the case remanded for further proceedings. View "Anderson v. Coleman, et al." on Justia Law