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Justia Contracts Opinion Summaries
Gables Construction v. Red CoatsGables Construction, Inc. v. Red Coats, Inc.
The Court of Appeals held that where a waiver of subrogation precludes liability to an injured party, a third-party defendant does not fall within the definition of a "joint tortfeasor" under the Maryland Uniform Contribution Among Joint TortFeasors Act (UCATA), Md. Code Cts. & Jud. Proc. 3-1401, and there is no statutory right of contribution.After a fire damaged a building, the owner, Upper Rock II, LLC, sued Red Coats, Inc. Red Coats filed a third-party claim against Gables Construction, Inc. (GCI) seeking contribution under the UCATA. Prior to construction, Upper Rock and GCI entered into a contract, which included a waiver of subrogation, requiring Upper Rock to transfer all risk of loss for fire-related claims to the insurer rather than holding GCI liable. Upper Rock and Red Coats settled. GCI moved for summary judgment, arguing that because it was not liable to Upper Rock, it was not a joint tortfeasor under the UCATA. The motion was denied. A jury concluded that Red Coats was entitled to contribution from GCI. The Court of Appeals reversed, holding that GCI could not be liable to Upper Rock because the waiver of subrogation prevented liability, and without liability to the injured party, the UCATA does not provide for a right to contribution. View "Gables Construction v. Red CoatsGables Construction, Inc. v. Red Coats, Inc." on Justia Law
Oakland Bulk & Oversized Terminal, LLC v. City of Oakland
After the City agreed to have OBOT develop a commercial terminal at an Army base near the bay. The City moved to block coal from being transported through the terminal amid a public backlash. The district court concluded that the City breached its contract with OBOT.Because this is a breach of contract dispute, the Ninth Circuit must defer to the district court's factual findings, rather than administrative law review principles. The panel held that the district court did not clearly err in finding that the City breached the contract, because the City lacked substantial evidence of a substantial danger to health or safety when it enacted its resolution barring coal. Furthermore, the district court did not abuse its discretion in denying intervention of right. Therefore, the panel affirmed the district court's judgment. View "Oakland Bulk & Oversized Terminal, LLC v. City of Oakland" on Justia Law
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Contracts, US Court of Appeals for the Ninth Circuit
Benjamin v. Bierman
The Supreme Court affirmed the judgment of the district court finding that Defendants breached two operating agreements, ordering an accounting for each, declining to dissolve either, and awarding Plaintiff damages, holding that there was no merit to the assignments of error on appeal.Plaintiff, the personal representative of the estate of Mark Benjamin, filed separate complaints against Douglas Bierman (Doug) and Sixth Street Rentals, LLC (collectively, Rentals) and against Doug, Eugene Bierman, and Sixth Street Development, LLC (collectively, Development) generally seeking an accounting to dissolve both Rentals and Development and damages. After the district court entered judgment, Plaintiff appealed and Defendants cross appealed. The Supreme Court affirmed, holding (1) Brenda lacked standing to seek dissolution; (2) Defendants' assignments of error regarding fair market value were without merit; (3) there was no merit to Defendants' assignments of error related to breach of contract and specific performance; and (4) there was no merit to Defendants' remaining assignments of error. View "Benjamin v. Bierman" on Justia Law
O’Donnell v. Allstate Indemnity Company
Plaintiff John O’Donnell appealed a superior court order granting summary judgment to defendant Allstate Indemnity Company. Following a November 2015 motor vehicle accident, O’Donnell filed an underinsured motorist claim under a personal umbrella insurance policy that he had purchased from Allstate. Allstate denied the claim. O’Donnell then filed this declaratory judgment action to determine whether his policy provided uninsured motorist coverage. The trial court concluded that O’Donnell’s policy did not provide uninsured motorist coverage, finding that a written waiver of uninsured motorist coverage that O’Donnell had executed in September 2011 remained in effect at the time of the accident. Finding no reversible error in that judgment, the New Hampshire Supreme Court affirmed. View "O'Donnell v. Allstate Indemnity Company" on Justia Law
Bierman v. Benjamin
The Supreme Court reversed the judgment of the district court granting partial summary judgment in favor of Plaintiffs, Doug Bierman and Jim Hoppenstedt, on the issue of the enforceability of a buy-sell agreement, holding that the buy-sell agreement was clearly ambiguous.Mark Benjamin, Doug, and Jim entered into a buy-sell agreement providing for the sale and purchase of BD Construction, Inc. shares. After Mark died, Brenda Benjamin was appointed to serve as president of BD. One year later, Brenda terminated Plaintiffs' employment. Plaintiffs filed this lawsuit against Brenda and BD, seeking, among other things, specific performance of the buy-sell agreement. Prior to trial, Plaintiffs filed a motion for summary judgment seeking a finding that the buy-sell agreement was enforceable. The district court granted summary judgment to Plaintiffs on that issue. The Supreme Court reversed the grant of summary judgment, holding that the district court's determination that the buy-sell agreement was unambiguous was plain error. View "Bierman v. Benjamin" on Justia Law
San Miguel Produce, Inc. v. L.G. Herndon, Jr. Farms, Inc.
The United States District Court for the Southern District of Georgia certified three questions to the Georgia Supreme Court regarding the scope of the Georgia Dealers in Agricultural Products Act, Ga. L. 1956, p. 617 (codified as amended at OCGA sections 2-9-1 to 2-9-16) (“the Act”). At issue was the effect of the Act’s provisions upon contracts entered into by an agricultural products dealer that failed to obtain a license from the Georgia Commissioner of Agriculture: in this case, a contract entered into between San Miguel Produce, Inc. (“San Miguel”), a California corporation, and L. G. Herndon Jr. Farms, Inc. (“Herndon Farms”), a Georgia corporation. The Supreme Court concluded: (1) an entity as described by the district court did qualify as a dealer in agricultural products under the Act and was not exempt under OCGA 2-9-15 (a) (1), with the limited exception of specific transactions “in the sale of agricultural products grown by [itself];” (2) the Act’s licensing requirements were part of a comprehensive regulatory scheme in the public interest and not merely a revenue measure; and (3) if a dealer has failed to obtain a license as required by OCGA 2-9-2, it may not recover under a contract to the extent that the contract relates to business coming within the terms of the Act. View "San Miguel Produce, Inc. v. L.G. Herndon, Jr. Farms, Inc." on Justia Law
Jones v. Mackey Price Thompson & Ostler
In this longstanding dispute between attorney Gregory Jones and his former law firm, Mackey Price Thompson & Ostler, P.C. (MPTO), over the distribution of litigation proceeds the Supreme Court upheld the jury's $647,090 verdict on Jones's quantum meruit/unjust enrichment claims, holding that the district court did not abuse its discretion in admitting the testimony of Jones's expert witness.Jones claimed a right to some of the fees collected by MPTO in personal injury cases arising out of the use of the drug known as Fen-Phen. Jones asserted claims for fraudulent transfer, quantum merit/unjust enrichment, breach of fiduciary duty and sought an award of punitive damages and to impose a constructive trust on the funds held by MPTO. A jury ultimately entered a verdict against MPTO on a quantum meruit/unjust enrichment theory and dismissed or rejected Jones's remaining claims. After a trial, the district court concluded that the judgment extended to Mackey Price, LLC, an entity the court ruled was a successor in interest to MPTO. The Supreme Court reversed the dismissal of Jones's fraudulent transfer and punitive damages claims, the decision that a constructive trust was categorically unavailable, and the default determination that Mackey Price, LLC was a successor in interest to MPTO and otherwise affirmed the district court. View "Jones v. Mackey Price Thompson & Ostler" on Justia Law
State v. Beres
The Supreme Court reversed the order of the district court denying Defendant's motion to dismiss four additional arson charges as breach of his plea agreement with the State as to second-degree arson, holding that the State remained bound by its plea agreement under the circumstances of this case.The plea agreement provided that Defendant would plead guilty to second-degree arson, that Defendant would cooperate in an interview regarding other suspicious fires, and that the State would not bring charges regarding the other fires. Defendant pled guilty. Thereafter, the State decided not to hold the interview and advised Defendant that he would be charged with other arsons. The State gave Defendant an opportunity to withdraw from the plea agreement, but Defendant declined to withdraw. The State brought four additional arson charges, and Defendant moved to dismiss them as breach of the plea agreement. The district court denied the motion. The Supreme Court reversed, holding (1) the State could not unilaterally withdraw from the plea agreement by declining to conduct the interview; and (2) Defendant did not ratify the State's modification of the plea agreement by refusing the State's offer of rescission. View "State v. Beres" on Justia Law
Traynor Law Firm v. North Dakota, et al.
Dustin Irwin died in 2014, in the Ward County, North Dakota jail. The circumstances of his death led to an investigation and criminal charges against Ward County Sheriff Steven Kukowski. Initially, Divide County State’s Attorney Seymour Jordan was appointed to handle the criminal proceeding. Jordan determined the circumstances justified a petition for removal of Sheriff Kukowski from office. Governor Jack Dalrymple appointed Jordan as the special prosecutor for the removal. Ultimately, Jordan requested to withdraw and Governor Burgum appointed attorney Daniel Traynor as the special prosecutor. After completion of the removal proceedings, Traynor submitted his bill to the State on May 1, 2017. The State forwarded the bill to Ward County. Ward County refused to pay the bill. Traynor sued the State and Ward County to recover the unpaid fees. The State responded to Traynor’s complaint by filing a motion to dismiss. Ward County answered Traynor’s complaint and cross-claimed against the State. The State moved to dismiss Ward County’s cross-claim. Traynor moved for judgment on the pleadings. The district court entered judgment in Traynor’s favor against the State, and awarded interest at 6% per annum. The State argued Ward County had to pay Traynor’s bill because Chapter 44-11, N.D.C.C., failed to address who should pay for the special prosecutor fees in a county official’s removal proceeding, and therefore the catch-all provision in N.D.C.C. 54-12-03 applied. Ward County argues neither Chapter 44-11, N.D.C.C., nor Chapter 54- 12, N.D.C.C., imposes an obligation upon a county to pay the fees of an attorney appointed by the Governor for proceedings for the removal of a public official. The North Dakota Supreme Court concurred with the district court that Chapter 44-11, N.D.C.C., was silent regarding the payment of special prosecutor fees in a removal proceeding, and it was not necessary or required to import N.D.C.C. 54-12-03 into Chapter 44-11. Based on these facts, the Supreme Court concluded the district court did not err in finding a contract existed for legal services between Traynor and the State. The Court agreed with Traynor that the district court erred by awarding 6% per annum interest instead of the 1.5% monthly interest rate stated on its bill. The Supreme Court therefore affirmed in part, reversed in part and remanded for further proceedings. View "Traynor Law Firm v. North Dakota, et al." on Justia Law
In re Estate of Petelle
After six years of marriage, Michael Petelle filed a petition to dissolve his marriage to petitioner, Michelle Ersfeld-Petelle, having separated on January 27, 2017. The parties, both represented by counsel, executed a separation contract and CR 2A agreement on February 14, 2017. The contract divided assets and liabilities, contained an integration clause, and required all modifications to be in writing. In the contract, the parties agreed “to make a complete and final settlement of all their marital and property rights and obligations on the following terms and conditions.” The contract also provided that the “contract shall be final and binding upon the execution of both parties, whether or not a legal separation or decree of dissolution is obtained[,]” and, by its terms, the contract remained valid and enforceable against the estate of either party if either party died after the execution of the contract. Though the contract contained a “Full Satisfaction of All Claims” section, the right to intestate succession was not mentioned. Petitioner claimed that she and Michael were contemplating reconciliation, citing an e-mail Michael sent to his attorney requesting an extension to the “closing date” of the divorce. Before any reconciliation or dissolution occurred, Michael died intestate on May 1, 2017. The issue this case presented for the Washington Supreme Court's review centered on whether Michelle, as surviving spouse, agreed in a separation contract to give up her right to intestate succession under RCW 11.04.015. Petitioner sought reversal of a published Court of Appeals opinion reversing the trial court’s denial of a motion to terminate her right to intestate succession in Michael's estate. After review, the Supreme Court concluded that under the terms of the contract, petitioner expressly waived her right to intestate succession. View "In re Estate of Petelle" on Justia Law