Justia Contracts Opinion Summaries

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JT Construction, LLC ("JTC"), appealed a circuit court's judgment awarding declaratory and injunctive relief to MW Industrial Services, Inc. ("MWI"). MWI contracted with Golder Associates, Inc., to provide labor and services for a construction project at Plant Gorgas, a power plant operated by Alabama Power Company. Pursuant to the terms of the contract, MWI was prohibited from "permit[ting] any lien, affidavit of nonpayment, stop payment notice, attachment or other encumbrance ... to remain on record against [Plant Gorgas] or the property upon which it is situated for ... work performed or materials finished in connection [there]with" by any subcontractor with whom MWI might also contract. JTC subcontracted with MWI to work at Plant Gorgas. The subcontract agreement ("the lien-waiver provision") precluded JTC, in accordance with the master contract, from filing a lien against property owned by Alabama Power or Southern Company. Following execution of the subcontract agreement, a dispute arose between MWI and JTC in connection with JTC's performance of its contractual obligations and the amount owed to JTC for the work it had performed. In September 2020, counsel for JTC provided a "Notice of Mechanics' Lien" indicating that JTC claimed against the real property on which Plant Gorgas was situated, a lien in connection with JTC's work under the subcontract agreement. MWI pointed out the language of the lien-waiver provision of its subcontract, and demanded that JTC withdraw the lien notice. MWI asserted that JTC had been paid for any previous work before its execution of the subcontract agreement, and demanded that JTC withdraw its notice of lien. The trial court ultimately entered an order issuing a permanent injunction and ruling in favor of MWI on its declaratory-judgment claim, prohibiting JTC from filing its lien. The Alabama Supreme Court held the trial court erred in issuing the declaratory judgment and in awarding permanent injunctive relief without prior notice to JTC, as required by Rule 65(a)(2), and that JTC was prejudiced by that error. The trial court's judgment was therefore reversed, and this case was remanded for further proceedings. View "JT Construction, LLC v. MW Industrial Services, Inc." on Justia Law

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In 2010, AMN Healthcare contracted with Aya Healthcare to provide travel nursing services to healthcare facilities. The contract prohibited Aya from soliciting AMN’s employees. In 2015, Aya began actively soliciting AMN’s travel nurse recruiters. AMN temporarily terminated Aya’s access to AMN’s platform. The parties ended their relationship. Aya filed suit under the Sherman Antitrust Act, 15 U.S.C. 1, 2, including a “per se” claim and a quick-look/rule-of-reason claim and claims for attempted monopolization and monopolization, and state law tortious interference and other claims. Aya claimed that it suffered exclusionary damages as a result of AMN’s non-solicitation covenant and retaliatory damages as a result of AMN’s termination of the relationship.The Ninth Circuit affirmed summary judgment in favor of AMN. The non-solicitation agreement is an ancillary, rather than a naked restraint, because it is reasonably necessary to the parties’ procompetitive collaboration; it is not per se unlawful but is subject to the rule-of-reason standard. Aya failed to satisfy its initial burden under that standard because it did not establish a triable issue of fact with respect to whether AMN’s nonsolicitation agreement has a substantial anticompetitive effect that harms consumers in the relevant market. Aya’s claim for retaliatory damages failed because it did not present any evidence of a cartel or a concerted action in the termination of the agreement. View "Aya Healthcare Services, Inc. v. AMN Healthcare, Inc." on Justia Law

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Edwin Schulz appealed a judgment following a bench trial on the damages to his barn, pole barn and shed. Schulz sued Adam Helmers for negligence and breach of contract following a fire that destroyed the barn, pole barn and shed. At the time of the fire, Schulz was leasing the farmstead to Helmers, including the three buildings. He argued the district court applied the wrong measure of damages in his breach of contract claim against Helmers. The district court concluded N.D.C.C. 32-03-09.1 applied to the breach of contract claim, which provided the measure of damages for an injury to property not arising from contract was the diminution of value. The North Dakota Supreme Court concurred with the district court's finding and affirmed the judgment. View "Schulz v. Helmers" on Justia Law

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Ascente filed suit against Digital River for Minnesota contract, fraud, and fraud-adjacent claims. Ascente's claims arose after it hired Digital River to build a customer-facing web portal and the portal fell below Ascente's expectations.The Eighth Circuit affirmed the district court's denial of Ascente's motion to amend its fraud and reckless-misrepresentation claims where amendment would be futile. The court concluded that there was no error in granting summary judgment on the contract claims where Ascente failed to raise a triable issue of fact regarding whether Digital River breached its purported duties. The court also concluded that there was no error in granting summary on the fraudulent inducement claim where Ascente failed to raise a triable issue of fact regarding its actual reliance. View "Ascente Business Consulting, LLC v. DR myCommerce" on Justia Law

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The Court of Chancery granted in part an anti-suit injunction sought by a buyer and a parent corporation with whom the buyer contracted to acquire a wholly owned subsidiary (the Company) to bar the seller and its subsidiary from pursuing their claims in a Texas lawsuit, holding that the forum selection provision in the stock purchase agreement applied.Under the stock purchase agreement, the buyer contracted with a Company and caused the Company to enter into a supply agreement with a wholly owned subsidiary of the seller. The stock purchase agreement contained a forum selection provision. The seller signed the stock purchase agreement and did not sign the supply agreement. The seller's subsidiary signed the supply agreement but did not sign the stock purchase agreement. The seller and its subsidiary later filed a lawsuit in Texas state court seeking rescission of the supply agreement. The buyer and the Company then brought this action asking the court to apply the forum selection provision in the stock purchase agreement to the claims implicating the supply agreement. The Court of Chancery granted the request for an anti-suit injunction against the seller and against a non-signatory signatory, holding that an injunction was warranted. View "Florida Chemical Company, LLC v. Flotek Industries, Inc." on Justia Law

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The Supreme Court reversed the order of the trial court denying a motion to compel arbitration, holding that a fee agreement between a client and her attorney, especially where the attorney agrees to advance the costs of arbitration, is relevant to determining a plaintiff's ability to arbitrate her claims.Plaintiff signed two contracts with Defendants when arranging for her mother, Concetta Rizzio, to live at a nursing care facility. Each contract included an arbitration clause with a cost-shifting provision (the agreement) stating that Rizzio would be responsible for all costs of arbitration if she made a claim against the nursing home. When a fellow resident attacked Rizzio, Plaintiff brought this action alleging negligence and abuse of a vulnerable adult. The trial court denied Defendants' motion to compel arbitration, finding that the agreement was unduly oppressive, unenforceable, and unconscionable. The court of appeals reversed as to the issue of procedural unconscionability but agreed that the cost-shifting provision was substantively unconscionable. The Supreme Court reversed in part, holding that the agreement was not substantively unconscionable and that it was enforceable. View "Rizzio v. Surpass Senior Living LLC" on Justia Law

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The United States Third Circuit Court of Appeals certified a question of law to the Pennsylvania Supreme Court involving the state's Motor Vehicle Financial Responsibility Law (“MVFRL”). In July 2015, Corey Donovan (“Corey”) suffered significant injuries due to a collision between a motorcycle, which he owned and was operating, and an underinsured vehicle. He recovered the $25,000 limit of coverage available under the policy insuring the underinsured vehicle as well as the $50,000 per person limit of UIM coverage available under Corey’s policy insuring the motorcycle, issued by State Farm Automobile Insurance Company. Corey then sought coverage under a policy issued by State Farm to his mother, Linda Donovan (“Linda”), under which he was insured as a resident relative. Linda’s Auto Policy insured three automobiles but not Corey’s motorcycle. Linda’s policy had a UIM coverage limit of $100,000 per person, and Linda signed a waiver of stacked UIM coverage on her policy which complied with the waiver form mandated by Section 1738(d) of the MVFRL. First, the Pennsylvania Court considered whether an insured’s signature on the waiver form mandated by 75 Pa.C.S. 1738(d) resulted in the insured’s waiver of inter-policy stacking of UIM coverage where the relevant policy insured multiple vehicles. To this, the Supreme Court held the waiver invalid as applied to inter-policy stacking for multi-vehicle policies in light of its decision in Craley v. State Farm Fire and Casualty Co., 895 A.2d 530 (Pa. 2006). The Court then determined whether the policy’s household vehicle exclusion was enforceable following its decision in Gallagher v. GEICO Indemnity Company, 201 A.3d 131 (Pa. 2019). Finally, after concluding that the household vehicle exclusion was unenforceable absent a valid waiver of inter-policy stacking, the Court addressed the third question posed by the Court of Appeals regarding the applicability of the policy’s coordination of benefits provision for unstacked UIM coverage. After review, the Supreme Court held that the policy’s coordination of benefits provision for unstacked UIM coverage did not apply absent a valid waiver of inter-policy stacking. Having answered these questions of law, the matter was returned to the Third Circuit. View "Donovan, et al. v. State Farm Mutual Ins. Co." on Justia Law

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The Mundens own ranching property in Bannock County, Idaho. They purchased 768 acres in 2012 and 660 acres in 2014 and purchased title insurance for the first purchase through Stewart and for the second purchase through Chicago Title. The property contains a gravel road. A 2019 ordinance amended a 2006 ordinance that closed specified snowmobile trails, including that gravel road, to motor vehicles except snowmobiles and snow-trail-grooming equipment during winter months. The 2019 ordinance deleted the December-to-April closure, giving the County Public Works Director the discretion to determine when to close specified snowmobile trails, and increased the maximum fine for violations. The Mundens sought an injunction. The county asserted that the road had been listed as a public road on county maps since 1963 and that the Mundens purchased their property expressly subject to easements and rights of way apparent or of record.The Mundens filed a federal complaint, seeking declaratory relief, indemnification, and damages. The district court granted the insurance companies summary judgment. The Ninth Circuit reversed as to Chicago Title, finding that the county road map is a “public record” within the meaning of its policy so that coverage applied. Stewart has no duty to indemnify or defend; its policy disclaims coverage for damages “aris[ing] by reason of . . . [r]ight, title and interest of the public in and to those portions of the above-described premises falling within the bounds of roads or highways.” View "Munden v. Stewart Title Guaranty Co." on Justia Law

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The Supreme Court affirmed the decision of the court of appeal reversing the judgment of the trial court in favor Plaintiff on its claim for breach of contract, holding that the court of appeals did not err by reversing and remanding the case back to the trial court with instructions to make findings of fact and to enter clear and specific conclusions of law based on the findings of fact.On appeal, the court of appeals held that the trial court failed to make findings of fact necessary to resolve conflicts in the evidence and support conclusions of law. The court reversed and remanded the trial court's judgment and remanded with instructions to make ultimate findings of fact based on the evidence and to enter clear and specific conclusions of law based on the findings of fact. The Supreme Court affirmed, holding that the court of appeals did not err. View "Carolina Mulching Co. v. Raleigh-Wilmington Investors II, LLC" on Justia Law

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In this dispute between competitors in the bingo hall gaming industry that sued each other for breach of contract, the Supreme Court affirmed in part and reversed in part the judgment of the trial court, holding that the court should not have awarded postjudgment interest in favor of VKGS, LLC.After a trial on VKGS's claims, the jury found Planet Bingo, LLC and its wholly owned subsidiary, Melange Computer Services, Inc. (together, Planet Bingo), liable for $558,405. After a separate trial on Planet Bingo's claims, the jury found VKGS liable for $2,990,000. The trial court awarded VKGS postjudgment interest from the time of the first verdict and then entered judgment in favor of Planet Bingo, while offsetting VKGS' award. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) did not err in bifurcating trial of the parties' claims; (2) did not err in declining to dismiss Planet Bingo's claims, in refusing VKGS' evidence, or in declining to give VKGS' jury instructions; and (3) erred in awarding VKGS postjudgment interest. View "VKGS, LLC v. Planet Bingo, LLC" on Justia Law