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Justia Contracts Opinion Summaries
Butler v. Gavek
In this partition action, the Supreme Court vacated the judgment of the superior court ruling that Plaintiff's death terminated her interest in a joint tenancy, holding that R.I. Gen. Laws 34-15-12 abrogates the common law right of survivorship in a joint tenancy when an action for partition is pending.Plaintiff filed a partition action requesting that the superior court partition property she owned in a joint tenancy with Defendants. Defendants asserted counterclaims for unjust enrichment and breach of agreement. While the litigation was pending, Plaintiff died. Defendants moved to dismiss the partition action, asserting that Plaintiff's property interest had passed to the remaining joint tenants by operation of law upon Plaintiff's demise. The hearing justice granted the motion. The Supreme Court vacated the judgment, holding that Plaintiff's decease did not abate her action for partition, and therefore, the litigation remained pending. View "Butler v. Gavek" on Justia Law
Elvis Presley Enterprises, Inc. v. City of Memphis
The Supreme Court reversed the judgment of the court of appeals affirming the trial court's dismissal of Plaintiffs' action seeking a declaratory judgment concerning the rights and obligations of the parties under a 2001 contract, holding that the court of appeals erred in concluding that dismissal was appropriate on the grounds that the complaint was barred by the doctrine of res judicata.In a previously filed action, Plaintiffs sought similar relief, but the case was dismissed for failure to exhaust administrative remedies. In the instant case, the trial court granted Defendants' motions to dismiss, finding that Plaintiffs lacked standing. The court of appeals affirmed on other grounds, concluding that res judicata barred the complaint and, as such, declined to address the standing issue. The Supreme Court reversed, holding that dismissal of the previous case did not constitute an adjudication on the merits for purposes of res judicata. The Court then remanded the case to the court of appeals for consideration of the standing issue. View "Elvis Presley Enterprises, Inc. v. City of Memphis" on Justia Law
Tercero v. Texas Southmost College District
After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount. View "Tercero v. Texas Southmost College District" on Justia Law
Goldfarb v. Solimine
Plaintiff Jed Goldfarb claimed defendant David Solimine reneged on a promise of employment after Goldfarb quit his job to accept the promised position managing the sizeable investment portfolio of defendant’s family. The key issue in this appeal involved whether plaintiff could bring a promissory estoppel claim because he relied on defendant’s promise in quitting his prior employment even though, under New Jersey’s Uniform Securities Law of 1997 (Securities Law or the Act), he could not bring a suit on the employment agreement itself. The New Jersey Supreme Court determined the Securities Law did not bar plaintiff’s promissory estoppel claim for reliance damages. The Court affirmed the liability judgment on that claim and the remanded for a new damages trial in which plaintiff would have the opportunity to prove reliance damages. The Court found he was not entitled to benefit-of-the-bargain damages. To the extent that the Appellate Division relied on an alternative basis for its liability holding -- that a later-adopted federal law “family office” exception had been incorporated into the Securities Law -- the Court rejected that reasoning and voided that portion of the appellate court’s analysis. View "Goldfarb v. Solimine" on Justia Law
House v. U.S. Bank National Ass’n
The Supreme Court affirmed the judgment of the district court granting various mortgage lenders and trustees summary judgment on Plaintiff's claims for negligence and breach of the implied covenant of good faith and fair dealing, holding that genuine issues of material fact did not preclude summary judgment.Plaintiff filed an action asserting negligent loan supervision/administration, breach of the implied contract covenant of good faith and fair dealing, anticipatory declaratory judgment, and quiet title to mortgaged property. The district court granted summary judgment to Bank of America, N.A. (BOA) on all claims. The Supreme Court affirmed, holding that the district court did not err in granting BOA summary judgment on Plaintiff's asserted negligence and breach of the implied covenant of good faith and fair dealing claims. View "House v. U.S. Bank National Ass'n" on Justia Law
Varney Entertainment Grp. v. Avon Plastics
Plaintiff Jason Varney was a master dock builder, and star of a cable television show called “Docked Out.” He was also the president and sole shareholder of plaintiff Varney Entertainment Group, Inc. (Varney). Defendant Avon Plastics Inc., d/b/a/ Master Mark Plastic Products (Avon), manufactured products used to build docks. Plaintiff’s operative complaint alleged claims for breach of contract and for unauthorized commercial use of name or likeness in violation of Civil Code section 3344. Defendant served a statutory offer to compromise under Code of Civil Procedure section 998, offering to have a $250,000 judgment entered against it on both claims, plus attorney fees and costs through the date of the offer. Less than a week later, while its section 998 offer was still pending, defendant offered to enter into a stipulated judgment for $191,626.03 on the contract claim only, and further offered that plaintiff would be the prevailing party on that claim for purposes of awarding attorney fees and costs. Plaintiff accepted the second offer and never responded to the section 998 offer. Two months later, at the beginning of trial, plaintiff dismissed its remaining section 3344 claim without prejudice so it could refile that claim in a different jurisdiction. Defendant moved for attorney fees and costs based on section 3344’s fee shifting provision and its unaccepted section 998 offer. The trial court denied its motion, and the Court of Appeal affirmed: "Section 3344 does not provide a basis for awarding the defendant its fees or costs here because the defendant was not the prevailing party on that claim within the meaning of section 3344. And section 998 does not provide a basis for shifting fees or costs to the defendant because the defendant’s offer to enter into a stipulated judgment extinguished its prior section 998 offer." View "Varney Entertainment Grp. v. Avon Plastics" on Justia Law
Hampton v. Kohler
Plaintiff filed suit against defendant, former president of Milestone Systems, for refusing to pay plaintiff his pro-rata share of "Post-Closing Amounts" paid by Kudelski pursuant to its April 2016 cash purchase of Milestone's outstanding stock.The Eighth Circuit affirmed the district court's grant of summary judgment to defendant. Interpreting the plain language of the agreements at issue, the court concluded that no reasonable factfinder could find that plaintiff was terminated by Kudelski without cause. In this case, the district court correctly concluded, as a matter of law, that plaintiff's failure to meet the requirements of Section 3 of the Post-Closing Amount was a material breach of an unambiguous term of the contract. Therefore, plaintiff was ineligible for payment. View "Hampton v. Kohler" on Justia Law
Posted in:
Contracts, US Court of Appeals for the Eighth Circuit
Corinth Pellets, LLC v. Arch Specialty Insurance Co.
The Supreme Judicial Court vacated the judgment of the superior court dismissing for failure to state a claim Corinth Pellets, LLC's complaint alleging that a fire loss at Corinth's wood pellet mill was covered under a commercial property insurance policy issued by Arch, holding that the superior court erred in its interpretation of Maine's surplus lines insurance law, Me. Rev. Stat. 24-A, 2009-A.On appeal, Corinth argued that the fire loss was covered under the policy, despite having occurred after the policy term had expired, because Arch failed notify Corinth of its intention not to renew the policy as required by section 2009-A, and therefore, the policy was automatically renewed at the end of the term. The Supreme Judicial Court vacated the judgment, holding that section 2009-A(1) requires a surplus lines insurer to give written notice of its intent either to cancel a policy or not to renew a policy at least fourteen days before the effective date of cancellation or nonrenewal. View "Corinth Pellets, LLC v. Arch Specialty Insurance Co." on Justia Law
Sinclair Wyoming Refining v. A & B Builders
In 2013, a refinery unit (“Unit”) at the Sinclair Wyoming Refinery Co. (“Sinclair”) in Sinclair, Wyoming caught fire and exploded because its “FV-241” control valve fractured and released flammable hydrogen gas. A high temperature hydrogen attack (“HTHA”) weakened the valve and caused the fracture. FV-241 was made from carbon steel, which was more susceptible to HTHA than stainless steel. Sinclair had purchased the Unit in 2004. Sinclair moved the Unit from California to Wyoming and converted it from its previous use to a hydrotreater, a refinery unit that introduced hydrogen to remove impurities from the product stream. Sinclair contracted the design, engineering, and construction work to other companies. During the moving and conversion process, FV-241 was remanufactured and installed on the Unit. Sinclair brought a diversity action against seven companies involved in dismantling the Unit, converting it to a hydrotreater, rebuilding it in Wyoming, and remanufacturing and installing FV-241. Sinclair alleged various contract and tort claims. The district court granted several motions to dismiss and motions for summary judgment that eliminated all of Sinclair’s claims. The court also entered summary judgment in favor of certain Defendants’ indemnity counterclaim. Although its analysis diverged from the district court's judgment in some respects, the Tenth Circuit affirmed orders dismissing or granting summary judgment on all of Sinclair's claims, and granting summary judgment on the indemnity counter claim. View "Sinclair Wyoming Refining v. A & B Builders" on Justia Law
Carlile v. Reliance Standard Life Ins.
Reliance Standard Life Insurance (“Reliance”) appealed district court’s orders: (1) concluding that Reliance wrongly denied David Carlile’s claim for long-term disability benefits; (2) refusing to remand the case and instead ordering an award of benefits; (3) awarding attorney fees and costs to Carlile; and (4) denying Reliance’s motion to amend or alter judgment. After reviewing the policy at issue here, the Tenth Circuit determined the relevant policy language was ambiguous and therefore construed it in Carlile’s favor, and in favor of coverage. Furthermore, the Court concluded the district court did not err in refusing to remand the case back to Reliance or in awarding attorney fees and costs to Carlile. View "Carlile v. Reliance Standard Life Ins." on Justia Law