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Justia Contracts Opinion Summaries
Sherman v. Ellis
The issue this case presented was a legal negligence case arising from the preparation of a premarital agreement. Plaintiff-Appellant Dean Sherman, appealed the Superior Court’s grant of summary judgment in favor of Defendant-Appellee Stephen P. Ellis, Esquire. The appeal presented two issues: (1) whether the traditional “but for” test for proximate cause applied in a “transactional” legal negligence case, or whether it is sufficient that the alleged negligence creates an increased risk of future damages; and (2) whether the evidence satisfied the summary judgment requirement that there be no genuine issue as to any material fact. As to the first issue, the Delaware Supreme Court concluded the traditional “but for” test, not a risk of future damages test, was the appropriate test for determining proximate cause. As to the second issue, the Court concluded the evidence, viewed in the light most favorable to Mr. Sherman, raised a genuine issue of material fact and that summary judgment should have been denied. In light of the Court's second conclusion, the Superior Court's judgment was reversed and the matter remanded for further proceedings. View "Sherman v. Ellis" on Justia Law
In re Trust Created by McGregor
The Supreme Court affirmed the decision of the county court declining to approve a nonjudicial settlement agreement, holding that the agreement violated a material purpose of the trust, of which Appellant was a beneficiary.Appellant, a beneficiary of a trust created by his father, now deceased, filed this action in the county court seeking approval of a trust settlement agreement entered into between Appellant, his mother, and his sister. Appellant further sought an order requiring compliance with the terms of the agreement. The trial court issued an order rejecting the agreement and finding that the agreement was nonbinding under Neb. Rev. Stat. 30-3811. The Supreme Court affirmed, holding that the probate court did not err in finding that the agreement altered a material purpose of the trust and in declining to approve the agreement. View "In re Trust Created by McGregor" on Justia Law
J. Clancy, Inc. v. Khan Comfort, LLC
The Supreme Court reversed in part the decision of the circuit court concluding that J. Clancy, Inc.'s mechanic's liens placed against certain property were valid and unenforceable and rejecting J. Clancy's breach of contract and unjust enrichment claims, holding that the trial court erred in holding that a divisible implied-in-fact contract controlled the parties' express agreement.J. Clancy, a construction company, sued Ghazanfar Khan and his company, Khan Comfort, LLC. J. Clancy sought enforcement of mechanic's liens it placed against the property and, in the alternative, brought claims for breach of contract and unjust enrichment. The circuit court concluded (1) the mechanic's liens were unenforceable because they were insufficiently itemized; (2) a divisible, implied-in-fact contract, rather than an express contract, governed the parties' relationship; and (3) J. Clancy breached the contract due to non-performance. The court then ordered J. Clancy to reimburse Khan Comfort for overpayments Khan Comfort made. The Supreme Court reversed in part and remanded the case, holding that the circuit court (1) erred in concluding that a divisible implied-in-fact contract controlled the parties' express agreement because a valid, express contract controlled the parties' obligations; and (2) erred in invalidating the mechanic's liens for inadequate itemization. View "J. Clancy, Inc. v. Khan Comfort, LLC" on Justia Law
Choice Feed Inc. v. Montierth
Choice Feed, Inc. sued Ray and Susan Montierth, alleging that Ray breached an oral agreement to sell his feedlot property to Choice Feed once he arranged a 1031 tax deferred agreement. Although Ray collected money from Choice Feed that was to go toward the purchase of the feedlot property, he never arranged the 1031 exchange. Instead, without notice to Choice Feed, Ray sold the feedlot property to someone else while continuing to accept monthly payments from Choice Feed. At the conclusion of the trial, the jury found in favor of Choice Feed on one count of fraud against Ray, awarded compensatory damages, and assessed $250,000 in punitive damages. Ray moved for judgment notwithstanding the verdict, which the district court granted in part, thereby reducing the jury’s awards of both the compensatory and punitive damages. Ray appealed the jury’s verdict, including the compensatory and punitive damages that were reduced by the district court. Choice Feed cross-appealed the district court’s decision granting Ray’s motion for judgment notwithstanding the verdict and the resulting reduction in damages. After its review, the Idaho Supreme Court affirmed the district court on all issues raised in Ray’s direct appeal: (1) to deny Ray’s motion to dismiss for Choice Feed’s failure to plead fraud with particularity; (2) to give jury instructions that conformed with the evidence presented at trial; (3) to allow Choice Feed to seek improvement expenses as damages at trial; (4) to allow the jury to consider punitive damages; and, (5) to consider punitive damages in its prevailing party analysis and its conclusion that Choice Feed was the prevailing party. The Supreme Court also rejected Ray’s argument that Choice Feed did not have standing to bring suit or that it was not the real party in interest and the Court declined to add a tenth element of a transfer or sale of property to common law fraud. On Choice Feed’s cross-appeal, the Supreme Court reversed the district court’s decision to grant Ray’s JNOV motion and reduce the compensatory damage and punitive damage awards as raised in Choice Feed’s cross-appeal. However, the Court affirmed the district court on Choice Feed’s remaining issue raised in its cross-appeal concerning the award of prejudgment interest to Ray on his open account hay claim. Costs and attorney fees are awarded to Choice Feed as the overall prevailing party on appeal. View "Choice Feed Inc. v. Montierth" on Justia Law
Asher v. McMillan
Lester McMillan bought a dilapidated house that Terry Asher and Pamela Kitchens (“the Ashers”) planned to repair. The parties orally agreed that the Ashers would perform certain repairs to make the house livable, rent the house from McMillan for five years, and then buy the house from McMillan. For reasons that were disputed, the sale was never consummated. However, the Ashers continued to live in the house, make improvements to the property, and pay monthly rent to McMillan. After relations between the parties soured, McMillan sued to evict the Ashers. The Ashers then sued McMillan for specific performance of the oral contract to convey or, in the alternative, restitution for the value of the improvements. The district court found the oral contract was unenforceable, but awarded the Ashers restitution for certain improvements. McMillan appealed, alleging the district court erred in determining that he was unjustly enriched and in determining the amount of restitution. The Idaho Supreme Court found the district court did not err, except for a minor miscalculation of the amount of restitution. View "Asher v. McMillan" on Justia Law
Electra v. 59 Murray Enterprises, Inc.
Plaintiffs filed suit alleging that defendants unlawfully used photographs of them to advertise strip clubs owned by defendants in violation of New York Civil Rights Law sections 50 and 51. The district court granted summary judgment for defendants, holding that plaintiffs signed full releases of their rights to the photographs.The Second Circuit concluded that the terms of Plaintiff Shake and Hinton's release agreements are disputed material facts, and defendants concede that neither they nor the third-party contractors that created and published the advertisements secured legal rights to use any of the photographs at issue. The court held that the district court erred in granting summary judgment to defendants and in denying summary judgment to plaintiffs on liability. Therefore, the court vacated in part and remanded for further proceedings.The court affirmed in part and held that the district court correctly concluded that plaintiffs had not accepted the offer of judgment because the offer's settlement amount term was ambiguous, the parties disagreed over how to interpret the term, and there was accordingly no meeting of the minds. Finally, the court held that the district court correctly dismissed the Lanham Act, 15 U.S.C. 1125(a), New York General Business Law Section 349, and libel claims. View "Electra v. 59 Murray Enterprises, Inc." on Justia Law
Guo v. Moorpark Recovery Service, LLC
Guo owned TVGC, which operated a Pleasanton spa. TVGC agreed to sell the business to Mazurova's corporation, LSI. The sale was partially financed through a promissory note. The sales agreement and promissory note contained provisions allowing a party prevailing in a legal action to recover attorney fees. After the sale, a dispute arose regarding Guo’s alleged nondisclosure of outstanding coupons for free spa services and Mazurova’s alleged failure to make payments. A judgment was entered for $161,085.58 against Guo and TVGC, which was affirmed. A subsequent order specifically stated that LSI and Mazurova were deemed the prevailing parties under Code of Civil Procedure Section 1032, “entitled to recover their costs of suit and reasonable attorney fees.” Mazurova and LSI assigned the judgment to Moorpark, which engaged in collection efforts and moved for attorney fees under Code of Civil Procedure section 685.040.The court denied the motion because the underlying judgment did not include an award of attorney’s fees. The court of appeal reversed. The judgment awarded reasonable attorney fees to the prevailing parties, although it did not set a particular amount of fees and no costs bill including such fees was ever filed. The court’s failure to include a specific amount in the judgment does not defeat section 685.040. View "Guo v. Moorpark Recovery Service, LLC" on Justia Law
Maldonado v. Fast Auto Loans
In a putative class action, plaintiffs Joe Maldonado, Alfredo Mendez, J. Peter Tuma, Jonabette Michelle Tuma, and Roberto Mateos Salmeron (collectively referred to as “the Customers”), claimed Fast Auto Loans, Inc., (Lender) charged unconscionable interest rates on loans in violation of California Financial Code sections 22302 and 22303. Lender filed a motion to compel arbitration and stay the action pursuant to an arbitration clause contained within the Customers’ loan agreements. The court denied the motion on the grounds the provision was invalid and unenforceable because it required consumers to waive their right to pursue public injunctive relief, a rule described in McGill v. Citibank, N.A., 2 Cal.5th 945 (2017). On appeal, Lender argued the “McGill Rule” did not apply, but even if it did, other claims were subject to arbitration. Alternatively, Lender contended the McGill Rule was preempted by the Federal Arbitration Act . Finding Lender’s contentions on appeal lacked merit, the Court of Appeal affirmed the trial court’s order. View "Maldonado v. Fast Auto Loans" on Justia Law
Meso Scale Diagnostics, LLC v. Roche Diagnostics GMBH
In 2010, Appellants Meso Scale Diagnostics, LLC and Meso Scale Technologies, LLC (collectively “Meso”) filed suit in the Delaware Court of Chancery against Appellee entities Roche Diagnostics GmbH, Roche Diagnostics Corp., Roche Holding Ltd., IGEN LS LLC, Lilli Acquisition Corp., IGEN International, Inc., and Bioveris Corp. (collectively “Roche”), all of which were affiliates or subsidiaries of the F. Hoffmann -- La Roche, Ltd. family of pharmaceutical and diagnostics companies. Meso alleged two counts of breach of contract. Roche prevailed at trial, and the Delaware Supreme Court affirmed the judgment in 2014. In 2019, Meso brought a new action asking the court to reopen the case, vacate the judgment entered after trial, and order a new trial. Meso alleged that the Vice Chancellor who decided its case four years earlier had an undisclosed disabling conflict, namely, that Roche’s counsel had been simultaneously representing him in an unrelated federal suit challenging the constitutionality of Delaware’s law providing for confidential business arbitration in the Court of Chancery, 10 Del. C. 349. In that federal litigation, which ended in 2014, the Chancellor and Vice Chancellors of the Court of Chancery, as the parties responsible for implementing the challenged statute, were nominal defendants (hereinafter, the “Judicial Officers”). The Court of Chancery denied relief and dismissed the action. Meso appealed. Finding no reversible error, the Supreme Court affirmed the Court of Chancery. View "Meso Scale Diagnostics, LLC v. Roche Diagnostics GMBH" on Justia Law
Hall v. City of Plainview
The Supreme Court affirmed in part and reversed in part the judgment of the district court granting the City of Plainview's motion to dismiss Donald Hall's contract and statutory claims, holding that the City had a contractual obligation to pay accrued paid time off (PTO) to Hall.After the City terminated Hall's employment as manager of the City's municipal liquor store it refused to pay Hall accrued PTO due to Hall's failure to provide sufficient notice per the requirements of the City's personnel policies and procedures manual. Hall sued the City for breach of contract and violation of Minn. Stat. 181.13. The district court dismissed Hall's contract and statutory claims. The Supreme Court remanded the case, holding (1) disclaimer provisions in the City's employee handbook stating that the handbook's policies should not be construed as a contract did not unambiguously allow the City to refuse to pay accrued PTO in accordance with the employer policy set forth in the handbook; and (2) Minn. Stat. 181.13(a) does not create an independent substantive right to payment of accrued PTO in the absence of a contract between the employer and employee. View "Hall v. City of Plainview" on Justia Law