Beginning in 1965, Honeywell and the labor union negotiated a series of collective bargaining agreements (CBAs). Honeywell agreed to pay “the full [healthcare benefit] premium or subscription charge applicable to the coverages of [its] pensioner[s]” and their surviving spouses. Each CBA contained a general durational clause stating that the agreement would expire on a specified date, after which the parties would negotiate a new CBA. In 2003, the parties negotiated a CBA obligating Honeywell to pay “not . . . less than” a specified amount beginning in 2008. The retirees filed suit, arguing that the pre-2003 CBAs vested lifetime, full-premium benefits for all pre-2003 retirees and that the CBAs of 2003, 2007, and 2011 vested, at a minimum, lifetime, floor-level benefits for the remaining retirees.The Sixth Circuit agreed with the district court that none of the CBAs vested lifetime benefits. Without an unambiguous vesting clause, the general durational clause controls. Reversing in part, the court held that the “not . . . less than” language unambiguously limited Honeywell’s obligation to pay only the floor-level contributions during the life of the 2011 CBA. The court rejected a claim that Honeywell acquired a "windfall" at the retirees' expense. View "International Union, United Automobile, Aerospace and Agricultural Implement Workers of America v. Honeywell International, Inc." on Justia Law

In this complaint seeking to have the Attorney General preliminarily and permanently enjoined from distributing monies received pursuant to an agreement between the Attorney General and Smithfield Foods, Inc. and several of its subsidiaries regarding the operation of hog farms to any recipient other than the Civil Penalty and Forfeiture Fund, the Supreme Court held that the payments contemplated by the agreement did not constitute penalties for purposes of N.C. Const. art. IX, 7.In their complaint, Plaintiffs argued that payments made pursuant to the agreement constituted penalties under article IX, section 7 and that the Attorney General lacked the authority to enter into the agreement. The trial court entered summary judgment in favor of the Attorney General, concluding that even if Smithfield and its subsidiaries had entered into the agreement in hope of avoiding future penalties, the payments made under the agreement were not penalties, forfeitures or fines collected for any breach of the penal laws of the State. The court of appeals reversed, concluding that genuine issues of material fact existed precluding summary judgment. The Supreme Court reversed, holding that the payments contemplated by the agreement did not constitute penalties for purposes of article IX, section 7. View "New Hanover County Board of Education v. Stein" on Justia Law

Top Rank and Middendorf are boxing promoters and parties to an Agreement and Release regarding a successful boxer's promotional rights. The Eighth Circuit affirmed the district court's grant of summary judgment to Middendorf in part, holding that the Agreement and Release contemplates that Middendorf is entitled to a fee so long as Top Rank promotes the boxer's title defenses pursuant to a promotional rights agreement. However, the court reversed the district court's grant of summary judgment for Middendorf in part, holding that the term "purse," as used in the Agreement and Release, does not include a boxer's share of gate revenues. View "Middendorf Sports v. Top Rank, Inc." on Justia Law

In this appeal from the district court's denial of a motion to dismiss and compel arbitration the Supreme Court held that the court-appointed liquidator of a now-insolvent health insurer pursuing common law tort claims against a third-party contractor is bound by an arbitration provision in a preinsolvency agreement between the health insurer and the third-party contractor.Prior to its insolvency, the health insurance provider entered into an agreement with a third-party contractor for consulting services. The provider was later declared insolvent and placed into liquidation. Plaintiff, the provider's court-appointed liquidator, brought an action against the contractor, asserting common law tort damages. The contractor filed a motion to dismiss and compel arbitration on the grounds that the parties' agreement contained an arbitration clause. The district court denied the motion, concluding that the arbitration provision did not apply. The Supreme Court reversed, holding (1) the liquidator was bound by the arbitration provision because the liquidator stood in the shoes of the provider; (2) the liquidator could not use Iowa Code 507C.21(k) to disavow a preinsolvency agreement that the contractor already performed; and (3) the McCarran-Ferguson Act does not permit reverse preemption of the Federal Arbitration Act when the liquidator asserts common law tort damages against a third-party contractor. View "Ommen v. MilliMan, Inc." on Justia Law

Dr. Sandra Leal appealed a circuit court's grant of summary judgment to the University of Southern Mississippi (USM) and the Board of Trustees of the State Institutions of Higher Learning (IHL). Leal brought suit against USM and the IHL for breach of contract and disability discrimination. Dr. Sandra Leal was a junior faculty member at USM. After spending several years at USM, Leal applied for tenure and promotion in 2012, but, at the recommendation of faculty members, she deferred her application for one year. In September of 2013, she resubmitted her application and materials. On October 4, 2013, her department voted not to recommend her application. Leal was notified of this on October 7, 2013. Each review of her application cited an insufficient number of publications as the primary reason for not recommending Leal’s application. Following these reviews, in March of 2014, Leal wrote to USM’s then-provost. Leal had suffered from rheumatoid arthritis throughout her time at USM, but, for the first time, she claimed it as a disability. She requested an additional year to remedy her insufficient number of publications. Both the provost and USM’s president recommended that Leal’s application be denied. Leal was notified of these determinations on March 24, 2014, and April 30, 2014, respectively. Leal sought review of her application by the IHL, and the IHL considered her request and ultimately rejected her application too. Because Leal has failed to demonstrate any genuine issue of material fact and failed to demonstrate that USM and the IHL were not entitled to judgment as a matter of law, the Mississippi Supreme Court affirmed summary judgment. View "Leal v. University of So. Miss." on Justia Law

Theresa Driskell, with the help of an insurance agent, submitted applications for a life insurance policy and a disability income rider. When reviewing the application, the insurance company discovered Driskell was ineligible for the disability income rider. So it issued her a life insurance policy that varied from her application: a policy that did not provide disability income. Driskell received this policy and reviewed it. She did not reject or return it. Instead, she accepted the policy and began making premium payments. Nearly three years later, Driskell made a claim with the insurer for disability income. Because the policy did not include a disability income rider, the insurer denied her claim. Driskell sued the insurer, citing her expectation of disability income coverage. The insurer moved for summary judgment, which the trial judge denied. The Mississippi Supreme Court granted the insurer’s interlocutory appeal to decide if summary judgment was wrongly denied. After review, the Court determined it was clear the policy issued to Driskell and accepted by her did not include a disability income rider. Therefore, it reversed the denial of summary judgment and rendered a judgment in the insurer’s favor. View "Mutual of Omaha Insurance Co. v. Driskell" on Justia Law

House owns an organic farm, adjacent to the Property, formerly owned by Moller. In 2002, House entered into a six-year lease with Moller for 35 farmable acres, containing a renewal option and a right of first refusal. House converted the Property to certified organic status. In 2007, Moller, with no notice to House, agreed to sell the Property to Foss. Foss, a licensed real estate agent, prepared the agreement, which did not contain a fixed closing date. House became aware of the agreement, notified Foss about the right of first refusal, and sued Moller. While the lease remained in effect, Foss entered the Property and sprayed nonorganic herbicides, cut down trees, and altered the fencing. House sued Foss. Moller filed for bankruptcy. The Property was foreclosed on and sold to a third party in 2015.The trial court found Foss liable for inducing a breach of contract, intentionally interfering with House’s prospective economic advantage, conversion, trespass, and negligence and awarded compensatory damages of $1,669,705 and $1,000 in punitive damages. House sought attorney fees and costs. The court denied the motion. The court of appeal remanded for a determination of reasonable attorney fees under Code of Civil Procedure 1021.9, which refers to “any action to recover damages to personal or real property resulting from trespassing on lands either under cultivation or intended or used for the raising of livestock.” The damages award is supported by substantial evidence. View "Kelly v. House" on Justia Law

In this dispute over a purported royalty fee, the Supreme Judicial Court vacated the superior court's order granting partial summary judgment in favor of InfoBridge, LLC on InfoBridge's claim for breach of contract, holding that the contract's royalty provision was ambiguous.Chimani and InfoBridge entered into a contract under which InfoBridge would create a software program. For this work, Chimani was to pay InfoBridge scheduled payments. The contract also contained a royalty provision requiring Chimani to pay InfoBridge royalties. InfoBridge later filed a complaint against Chimani alleging, inter alia breach of contract. InfoBridge then moved for partial summary judgment on its breach of contract claim, arguing that the royalty provision unambiguously required Chimani to pay InfoBridge 14.5 percent of Chimani's net revenue from the program, up to a total royalty fee of $150,000. The court granted the motion for summary judgment and denied Chimani's cross-motion for summary judgment on its equitable estoppel affirmative defense on the grounds that Chimani waived the equitable estoppel issue. The Supreme Court affirmed in part and vacated in part the judgment below, holding (1) Chimani waived its equitable estoppel defense; but (2) the royalty provision was ambiguous, and the summary judgment record did not permit a determination of its meaning as a matter of law. View "InfoBridge, LLC v. Chimani, Inc." on Justia Law

The Supreme Court held that the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (Convention) does not apply when parties have agreed to waive formal service of process in favor of a specified type of notification.Defendant, a company based in China, and Plaintiff entered into a contract providing that the parties would submit to the jurisdiction of California courts and to resolve disputes between them through California arbitration. The parties further agreed to provide notice and service of process to each other through Federal Express or a similar courier. Plaintiff later sought arbitration. Defendant neither responded nor appeared for the arbitration, and the arbitrator awarded Plaintiff $414,601,200. Defendant moved to set aside default judgment for insufficiency of service of process, arguing that Plaintiff's failure to comply with the Convention rendered the judgment confirming the arbitration award void. The motion was denied. The court of appeal reversed. The Supreme Court reversed, holding (1) the Convention applies only when the law of the forum state requires formal service of process to be sent abroad; and (2) because the parties' contract constituted a waiver of formal service under California law in favor of an alternative form of notification, the Convention does not apply. View "Rockefeller Technology Investments (Asia VII) v. Changzhou SinoType Technology Co." on Justia Law

Jasmin appealed the district court's grant of Trina's petition to confirm an arbitration award entered in its favor and denial of Jasmin and JRC's motion to vacate the award. The district court relied on an agency and direct benefits theory of estoppel to find that Jasmin was bound by the arbitration clause.The Second Circuit reversed the district court's judgment as to Jasmin, holding that the district court erred when it determined that Jasmin was bound as a principal to the contract under agency theory. The court was not persuaded that JRC acted as Jasmin's agent in executing the contract or that, in the alternative, Jasmin was bound to the arbitration clause under a direct benefits theory of estoppel. In this case, the commercial contract containing the arbitration clause was governed by New York law and signed by Trina and JRC, not Jasmin. The court explained that Jasmin was not a party to the contract and thus could not enforce any rights or duties under the contract. The court remanded with instructions to enter an amended judgment dismissing the case as to Jasmin. View "Trina Solar US, Inc. v. Jasmin Solar Pty Ltd." on Justia Law