Justia Contracts Opinion Summaries

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The Supreme Court affirmed the judgment of the district court confirming an arbitration award in a commercial contract matter, holding that there was no error.The parties in this case were two newspapers with a lengthy contractual relationship. The parties' contract contained a provision submitting disputes arising out of the contract to binding private arbitration. A dispute arose over amounts owed under the parties' contract, and the matter was submitted to arbitration. After the arbitrator rendered an award, both parties sought to vacate portions of the award by arguing that the arbitrator's award was so egregiously wrong that the arbitrator had clearly failed to apply the contract at all. The district court confirmed the award. The Supreme Court affirmed, holding that the district court properly found that there was no clear and convincing evidence that the arbitrator had exceeded his powers, acted arbitrarily and capriciously, or manifestly disregarded the law. View "News+Media Capital Group LLC v. Las Vegas Sun, Inc." on Justia Law

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The Supreme Court held that because Nevada's wrongful termination claims do not significantly conflict with any concrete federal interest expressed by the Labor Management Reporting and Disclosure Act (LMRDA), the LMRDA did not preempt those claims.This case concerned the termination of the employment of two plaintiffs with the Nevada Service Employees Union. Plaintiffs filed this complaint against Nevada Service Employees Union, Local 1107 and the Service Employees International Union, alleging, inter alia, breach of contract and wrongful termination. The district court granted summary judgment for the Unions, concluding that the LMRDA preempted all of Plaintiffs' claims. The Supreme Court reversed in part, holding (1) the LMRDA does not preempt state law wrongful termination claims; (2) the district court did not err in granting summary judgment in favor of one of the unions; and (3) the court did not abuse its discretion in denying a union's motion for attorney fees. View "Clark v. Service Employees International Union" on Justia Law

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The Supreme Court accepted a question certified to it by the United States District Court for the District of Nevada asking to decide whether Nev. Rev. Stat. 41.031(1) constitutes a waiver of Nevada's sovereign immunity from damages liability under the Fair Labor Standards Act (FLSA), holding that Nevada has waived the defense of sovereign immunity to liability under the FLSA.Appellant and several other employees of the Nevada Department of Corrections (NDOC) filed a putative class and collective action complaint alleging that the State and NDOC violated the FLSA and the state Minimum Wage Amendment (MWA) and breached their contract under state law. The State removed the action to federal district court, where at issue was whether the State possessed sovereign immunity. The district court concluded that the State waived its Eleventh Amendment immunity by removing the case to federal court. The Ninth Circuit affirmed and left open the question of whether the State retained its sovereign immunity from liability. The court then certified the question to the Supreme Court. The Supreme Court answered that, by enacting Nev. Rev. Stat. 41.031(1), Nevada consented to damages liability for a State agency's violation of the minimum wage or overtime provisions of the federal Fair Labor Standards Act. View "Echeverria v. State" on Justia Law

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Williams International Company LLC designed, manufactured, and serviced small jet engines. Dodson International Parts, Inc., sold new and used aircraft and aircraft parts. After purchasing two used jet engines that had been manufactured by Williams, Dodson contracted with Williams to inspect the engines and prepare an estimate of repair costs, intending to resell the repaired engines. Williams determined that the engines were so badly damaged that they could not be rendered fit for flying, but it refused to return one of the engines because Dodson had not paid its bill in full. Dodson sued Williams in federal court alleging federal antitrust and state-law tort claims. Williams moved to compel arbitration under the Federal Arbitration Act (FAA), relying on an arbitration clause on the original invoices. The district court granted the motion, and the arbitrator resolved all of Dodson’s claims in favor of Williams. Dodson then moved to reconsider the order compelling arbitration and to vacate the arbitrator’s award. The court denied both motions and, construing Williams’s opposition to the motion for vacatur as a request to confirm the award, confirmed the award. Dodson appealed, challenging the district court’s order compelling arbitration and its order confirming the award and denying the motions for reconsideration and vacatur. After review, the Tenth Circuit affirmed, holding: (1) the claims in Dodson’s federal-court complaint were encompassed by the arbitration clause; (2) the district court did not abuse its discretion in denying Dodson’s untimely motion to reconsider; and (3) that Dodson failed to establish any grounds for vacatur of the arbitrator’s award or for denial of confirmation of the award. View "Dodson International Parts v. Williams International Company" on Justia Law

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Plaintiffs filed suit for fraud, rescission, conspiracy, aiding and abetting, fraudulent conveyance, and unjust enrichment alleging that defendants had misrepresented that collateral managers would exercise independence in selecting assets for collateralized debt obligations (CDOs). The district court granted summary judgment in favor of defendants.The Second Circuit affirmed and held that plaintiffs have failed to establish, by clear and convincing evidence, reliance on defendants' representations. In this case, plaintiffs based their investment decisions solely on the investment proposals their investment advisor developed; the advisor developed these detailed investment proposals based on offering materials defendants provided and on the advisor's own due diligence; plaintiffs premised their fraud claims on the advisor's reliance on defendants' representations; but New York law does not support this theory of third-party representations. The court also held that plaintiffs have failed to establish that defendants misrepresented or omitted material information for two of the three CDO deals at issue—the Octans II CDO and the Sagittarius CDO I. The court explained that defendants' representations that the collateral managers would exercise independence in selecting assets were not misrepresentations at all, and defendants did not have a duty to disclose their knowledge of the hedge fund's investment strategy because this information could have been discovered through the exercise of due care. View "Loreley Financing (Jersey) No. 3 Ltd. v. Wells Fargo" on Justia Law

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In an earlier action, 623 Partners, LLC, obtained a default judgment against Bart Bowers. But 623 Partners never collected on that judgment. About nine years after obtaining the judgment, 623 Partners filed this case, alleging that Bart and members of his family had orchestrated the fraudulent conveyance of a property that should have been used to pay the judgment. While this case was pending, the judgment in the earlier action reached the 10-year mark, meaning the judgment was presumed satisfied. 623 Partners tried but failed to revive the judgment. The defendants in this case then moved for summary judgment on the sole basis that 623 Partners could not enforce the judgment -- effectively arguing that the 623 Partners' fraudulent-conveyance claims were moot. The trial court granted that motion. Because the Alabama Supreme Court presumed the judgment against Bart and its underlying debt were satisfied, the Court affirmed. View "623 Partners, LLC v. Bowers et al." on Justia Law

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The Supreme Court held that, for purposes of calculating whether a plaintiff has met the threshold amount of difference between an offer of judgment and the judgment entered for purposes of Fla. Stat. 768.79, post-offer prejudgment interest must be excluded from the amount of the "judgment entered."The Fourth District held that caselaw required the exclusion of post-offer prejudgment interest from the "judgment obtained" when determining entitlement to attorney's fees under section 768.79. Because this conclusion conflicted with the Third District's decision in Perez v. Circuit City Stores, Inc., 721 So. 2d 409 (Fla. 3d DCA 1998), and the First District Court of Appeal’s decision in Phillips v. Parrish, 585 So. 2d 1038 (Fla. 1st DCA 1991), the Fourth District certified conflict. The Supreme Court approved the Fourth District decision and disapproved the decisions in Perez and Phillips to the extent they were inconsistent with the decision today, holding that the Fourth district's interpretation of section 768.79 was not erroneous. View "CCM Condominium Association, Inc. v. Petri Positive Pest Control, Inc." on Justia Law

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Three defendants, Charles Richards, Chairman’s View, Inc. (Chairman’s View), and CoreValue Holdings, LLC (CoreValue), appealed a superior court order denying their motion to dismiss for lack of personal jurisdiction, this action brought by plaintiff, Christine Seward. Plaintiff filed suit against defendants for claims related to the transfer of a patent. Plaintiff was a New Hampshire resident and was a former employee of Chairman's View; Chairman’s View was a Delaware corporation registered with the New Hampshire Secretary of State to do business in New Hampshire as a foreign corporation. Its principal office was located in White River Junction, Vermont. CoreValue was a Nevada limited liability company registered to do business in Vermont and has the same principal office address in White River Junction as Chairman’s View. Richards resided in Norwich, Vermont, and was the president, sole director, and majority shareholder of Chairman’s View and was the managing member, and either the sole or majority member, of CoreValue. In 2014, plaintiff loaned Chairman’s View $312,500 and an additional $58,000 at Richard’s request. In 2016, plaintiff made a formal demand for payment on both notes. Chairman’s View failed to honor the demands, constituting an event of default on both notes. To secure the payment of both notes, the parties entered into a Security Agreement which pledged all of Chairman’s View’s assets. The pledged assets included U.S. Patent No 960727842 for proprietary software (the Patent), which, the complaint alleged, on “knowledge and belief, . . . constitutes Chairman’s View’s nearly only—but significantly valuable—asset.” Due to continued nonpayment, plaintiff filed suit in superior court to collect on the notes. After a judgment in this suit was issued and became final, and without plaintiff’s knowledge or consent, Chairman’s View recorded an assignment of the Patent to CoreValue at the United States Patent and Trademark Office. In 2018, the superior court granted plaintiff permission to attach the Patent, but it had already been assigned. Plaintiff contended defendants continued to receive license fees, and they continued to receive revenue from marketing the software covered by the Patent. The New Hampshire Supreme Court concluded the superior court did not err in denying defendants' motion to dismiss. View "Seward v. Richards et al." on Justia Law

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SMI, a supermarket retailer, and XPO, a logistics company, both appeal the district court's orders and judgment in a breach of contract and tort dispute arising out of the parties' business relationship.The Eighth Circuit concluded that the parties' agreement bars SMI from recovering non-direct damages from XPO; the Limitation of Liability Provision contractually limits both parties' liability to each other, but does not exonerate them, and is therefore not contrary to Missouri public policy; the Limitation of Liability Provision does not violate Missouri public policy simply because it prevents SMI from recovering its mitigation damages; there was no error in the district court's determination at summary judgment that three categories of SMI's claimed damages were consequential damages; there was no error in granting judgment as a matter of law on SMI's negligence counterclaim where SMI has not provided sufficient evidence to show that XPO breached a duty of care other than its contractual duty under the agreement; there was no error in the district court's determination that two emails SMI sought to exclude were protected by the attorney-client privilege; and there was no error in awarding statutory prejudgment interest to XPO.In regard to XPO's arguments on appeal, the court concluded that there was no error in the district court's denial of judgment as a matter of law on SMI's breach of contract counterclaim, and there was no error in the district court's determination that XPO was not entitled to attorney's fees under the agreement. View "Jacobson Warehouse Co., Inc. v. Schnuck Markets, Inc." on Justia Law

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The Supreme Judicial Court held that the six-year statute of limitations for contract actions governed this case and that the efforts of Executive Office of Health and Human Services, Office of Medicaid (MassHealth) to collect overpayments made to providers in the State Medicaid program were time barred.In 2005, MassHealth sent an audit notice to a provider, Suburban Home Health Care, Inc., but took no further action until 2016, when it initiated recovery proceedings. Suburban sought declaratory relief, arguing that the proceedings were barred under the statute of limitations for "actions of contract" in Mass. Gen. Laws ch. 260, 2. The superior court denied relief, concluding that the administrative proceedings to collect the overpayments could not be considered civil actions, and therefore, no statute of limitations applied. The Supreme Judicial Court reversed, holding that the six-year statute of limitations for contract actions applied and that MassHealth's action was time barred. View "Suburban Home Health Care, Inc. v. Executive Office of Health and Human Services, Office of Medicaid" on Justia Law