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Justia Contracts Opinion Summaries
Crutcher v. MultiPlan, Inc.
Plaintiff, the owner of TLDI, filed suit against MultiPlan and PHCS, alleging numerous causes of action, including those relevant to this appeal—breach of contract and a right to an award of attorneys' fees. The Eighth Circuit affirmed the district court's denial of attorneys' fees, concluding that the Network Agreement's indemnity clause does not permit recovery of attorneys' fees in this dispute between the contracting parties.However, the court reversed the district court's holding that plaintiff's conduct waived the contractual amendment-in-writing requirement, concluding that waiver and modification have been pleaded adequately. Furthermore, even assuming arguendo that Multiplan presented evidence sufficient to establish the presumption of receipt, plaintiffs countered with evidence that it was not received. Finally, the court concluded that alterations in position suffice as to consideration. In this case, the revised fee schedule together with the increased potential patient pool changed the obligations of both parties. View "Crutcher v. MultiPlan, Inc." on Justia Law
Munoz v. PL Hotel Group, LLC
This case involved the purchase and leaseback of a vacant hotel and restaurant. Buyers-plaintiffs claimed the sellers-defendants surreptitiously substituted altered versions of the lease and financing instruments containing terms extremely adverse to the buyers, and which they alleged were neither bargained for nor agreed to. Acting under the misapprehension that plaintiffs’ theory was promissory fraud, the superior court sustained a demurrer brought by defendants Inn Lending LLC (Inn Lending) and Rajesh Patel on the grounds that “[i]nsufficient facts” were alleged showing they “made promises” upon which plaintiffs relied. The court also determined that related causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, and financial elder abuse also failed. "Fraud in the execution is distinct from promissory fraud, which involves false representations that induce one to enter into a contract containing agreed- upon terms." The Court of Appeal found the allegations made in this case were "quite literally, a textbook cause of action for fraud in the execution," and reversed the superior court's judgment. View "Munoz v. PL Hotel Group, LLC" on Justia Law
Gavora, Inc. v. City of Fairbanks
Gavora, Inc., a real estate company, acquired an existing long-term lease with a purchase option for a municipality-owned property. Dry-cleaning businesses operating on the property contaminated the groundwater both prior to and during the real estate company’s involvement. The municipality knew about, but did not disclose, groundwater contamination at nearby sites when the real estate company ultimately purchased the property. A state agency later notified Gavora and the municipality of their potential responsibility for environmental remediation. Gavora sued the municipality in federal district court; the federal court determined that the parties were jointly and severally liable for the contamination, and apportioned remediation costs. Gavora also sued the municipality in state court for indemnity and further monetary damages, alleging that the municipality had misrepresented the property’s environmental status during purchase negotiations. The superior court ruled in the municipality’s favor, finding the municipality did not actively deceive Gavora; Gavora had reason to know of the contamination; and all physical harm occurred before the sale. Gavora challenged all three findings. Finding no error, the Alaska Supreme Court affirmed the superior court’s decision. View "Gavora, Inc. v. City of Fairbanks" on Justia Law
Ex parte Space Race, LLC.
The Alabama Space Science Exhibit Commission d/b/a U.S. Space & Rocket Center ("ASSEC") filed suit against Space Race, LLC ("Space Race"), seeking to avoid an arbitration award entered in favor of Space Race and against ASSEC by an arbitration panel in New York. In July 2016, Space Race agreed to produce an animated series for ASSEC aimed at promoting the interest of children in space exploration and science. The series was to be created and released to the public over a three-year period. In exchange, ASSEC agreed to compensate Space Race with funds ASSEC would receive from a grant from the National Aeronautics and Space Administration ("NASA"), which had contracted with ASSEC to provide funding for the series. The compensation was to be paid to Space Race annually as the series episodes were created during the three-year contract term. The parties' agreement provided that it "shall be governed" by Alabama law. Space Race produced the series before the contract term expired, but ASSEC failed to pay the amount owed for the last year of the series. Space Race claimed that ASSEC still owed Space Race approximately $1.3 million when the contract term expired. The parties' agreement contained an arbitration provision. In December 2017, after being notified by ASSEC that it would no longer make payments to Space Race because the grant from NASA had been terminated, Space Race commenced arbitration proceedings against ASSEC in New York. Space Race moved to dismiss ASSEC's Alabama action, asserting that a New York court had already entered a final judgment confirming the arbitration award. The Alabama trial court denied Space Race's motion to dismiss, and Space Race petitioned the Alabama Supreme Court for a writ of mandamus directing the trial court to dismiss ASSEC's action. Because the New York judgment confirming the arbitration award against ASSEC was entitled to full faith and credit and res judicata effect, the Supreme Court granted Space Race's mandamus petition. The trial court was directed to vacate its order denying Space Race's motion to dismiss and to enter an
order granting that motion. View "Ex parte Space Race, LLC." on Justia Law
BBBB Bonding Corp. v. Caldwell
Caldwell signed an agreement to obtain a bail bond for her friend and was unable to pay the premiums. BBBB began collection efforts. Caldwell filed a putative class action. The trial court enjoined BBBB from enforcing bail bond premium financing agreements entered into by Caldwell and other similarly situated persons who had cosigned on behalf of an arrestee without having first been provided with notice under Civil Code 1799.91: if a creditor obtains the signature of more than one person on a consumer credit contract, and the signatories are not married, the creditor must provide the cosigner with a specified cosigner notice describing the financial risks of the transaction.The court of appeal affirmed, rejecting BBBB’s argument that because the Legislature adopted a comprehensive scheme to regulate the conduct of bail bond licensees, it intended to exclude from such transactions the consumer protections applicable to consumer credit contracts. A bail bond premium financing agreement between a cosigner and the bail bond agent is a consumer credit contract subject to the notice provision of section 1799.91 and related statutory protections. While acknowledging that it decision may upend business expectations for bail bond agents, the court declined to apply the injunction only on a prospective basis. View "BBBB Bonding Corp. v. Caldwell" on Justia Law
Clark County REMC v. Reis
The Supreme Court reversed the decision of the trial court granting summary judgment to Plaintiffs in this dispute over whether a board policy created a binding contract with the former directors of the board of a county rural electric membership cooperative (REMC), holding that there was no contract.Plaintiffs, former directors of Clark County REMC, sued Clark RMEC after the board changed a series of board policies that allowed former directors who met certain requirements to receive health-insurance benefits, alleging breach of contract. The trial court granted summary judgment on Plaintiffs' partial summary judgment motion on liability and resolved all other claims in a settlement agreement. The court of appeals affirmed. The Supreme Court reversed, holding that there was not a contract because the policy was not an offer. View "Clark County REMC v. Reis" on Justia Law
Posted in:
Contracts, Supreme Court of Indiana
Midwest Medical Solutions, LLC v. Exactech U.S., Inc.
After Midwest failed to meet its sales quota for two or more consecutive quarters, Exactech terminated its Agency Agreement with Midwest. The Agreement contained a non-compete provision entitling Midwest to Restricted Period Compensation (RPC) after termination. Midwest filed suit seeking, among other things, a declaratory judgment as to the amount of RPC.The Eighth Circuit reversed the district court's judgment, concluding that the district court did not apply the plain and ordinary meaning of Paragraph 5.D.ii as required by Minnesota law. Furthermore, nothing in the remainder of the Agreement contradicts the plain meaning of Paragraph 5.D.ii. There is no claim of unilateral or mutual mistake and the court remanded for further proceedings. View "Midwest Medical Solutions, LLC v. Exactech U.S., Inc." on Justia Law
Estate of Sprague v. Bankers Life & Casualty Co.
The Supreme Judicial Court vacated the summary judgment of the superior court concluding that the complaint brought by the Estate of Marion Sprague against Bankers Life and Casualty Company for breach of a home health insurance contract was barred by the applicable statute of limitations, holding that the facts established that the limitations period had not expired before the Estate filed suit.The Estate brought this complaint alleging breach of contract, detrimental reliance, impossibility of performance, quantum merit, and violation of Me. Rev. Stat. Ann. 24-A, 2155. Bankers Life filed a motion for summary judgment, arguing that the Estate's action was time-barred under Maine's six-year statute of limitations for civil actions. The Supreme Judicial Court vacated the summary judgment, holding that the Estate timely filed its complaint within the six-year limitations period. View "Estate of Sprague v. Bankers Life & Casualty Co." on Justia Law
Posted in:
Contracts, Maine Supreme Judicial Court
Yankee Pride Transportation & Logistics, Inc. v. UIG, Inc.
The Supreme Judicial Court affirmed the summary judgment entered in the business and consumer court in favor of UIG, Inc. on Yankee Pride Transportation and Logistics, Inc.'s claims of negligence, breach of contract, and breach of fiduciary duty, holding that there was no genuine issue of material fact as to causation.On appeal, Yankee Pride argued that it had an implied contract with UIG based on the parties' relationship and that UIG breached that contract by failing to make timely efforts to renew Yankee Pride's policy. The Supreme Judicial Court disagreed, holding that Yankee Pride's failure to offer competent evidence of causation precluded a prima facie showing on any of its claims, whether they sounded in contract, tort, or breach of fiduciary duty. View "Yankee Pride Transportation & Logistics, Inc. v. UIG, Inc." on Justia Law
Theresa D. v. MBK Senior Living LLC
Plaintiff (K.D.) was a resident at Muirwoods when she suffered falls, resulting in a fractured hip and deteriorating health. She became bedbound and was allegedly left in unsanitary conditions and infected with scabies. Muirwoods alleged that K.D.’s daughter Tennier, signed an arbitration agreement pursuant to her authority to make health care decisions for K.D. when assisting in her placement at Muirwoods. The arbitration provision included a delegation clause providing that an arbitrator would decide whether a claim or dispute must be arbitrated. The clause specified that the agreement to arbitrate could be withdrawn within 30 days and that “agreeing to arbitration is not a condition of admission to the Community.”The court of appeal affirmed the denial o the motion to compel arbitration. The initial determination of whether Tennier was authorized to agree to arbitration on K.D.’s behalf is one for the court, not the arbitrator. Tennier was not K.D.’s agent for purposes of binding her to arbitration. Because the arbitration provision was optional, with its own signature line, it was essentially a separate agreement, Muirwoods did not establish that Tennier, who did not act pursuant to a durable power of attorney or similar authorization, could bind K.D. to an arbitration agreement as part of authorizing her admission. View "Theresa D. v. MBK Senior Living LLC" on Justia Law