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Justia Contracts Opinion Summaries
APCO Construction, Inc. v. Zitting Brothers Construction, Inc.
The Supreme Court affirmed the decision of the district court granting summary judgment and awarding attorney fees and costs in favor of Zitting Brothers Construction, a subcontractor on a development project, on its breach of contract action against APCO Construction, Inc., the general contractor, holding that the pay-if-paid provision in construction contract here was void under Nev. Rev. Stat. 624.628(3).Provisions in the subcontract in this case conditioned payment on the general contractor receiving payment first and required the subcontractor to forgo its right to prompt payment under Nev. Rev. Stat. 624.624 when payment would otherwise be due. When the project failed, Zitting sued APCO seeking payment for work completed. APCO defended its nonpayment with the pay-if-paid provisions in the contract. The district court granted partial summary judgment in favor of Zitting on its breach of contract and mechanics' liens claims, concluding that the pay-if-paid provisions were void and unenforceable. The Supreme Court affirmed, holding that the pay-if-paid provisions in the parties' subcontract were void and unenforceable under section 624.628(3) because they limited Zitting's right to prompt payment under section 624.624(1). View "APCO Construction, Inc. v. Zitting Brothers Construction, Inc." on Justia Law
Crouch Railway Consulting, LLC v. LS Energy Fabrication, LLC
The Supreme Court affirmed the decision of the court of appeals reversing the judgment of the chancery court dismissing this complaint against a Texas company for lack of personal jurisdiction, holding that the exercise of specific personal jurisdiction was constitutionally permissible.The Texas company contracted with a Tennessee civil engineering company for services related to the potential construction of a railcar repair facility in Texas. When the Texas company failed to pay in full, the Tennessee company filed a breach of contract action in Tennessee. The chancery court dismissed the complaint, concluding that the Texas company lacked the minimum contacts necessary for the exercise of personal jurisdiction and that requiring the Texas company to litigate in Tennessee would be unreasonable and unfair. The court of appeals reversed. The Supreme Court affirmed, holding (1) the Tennessee company established a prima facie case for the valid exercise of personal jurisdiction over the Texas company; and (2) the exercise of jurisdiction was fair and reasonable. View "Crouch Railway Consulting, LLC v. LS Energy Fabrication, LLC" on Justia Law
Pilcher v. Elliott
The Supreme Court affirmed the district court's denial of a motion to set aside default judgment against it after it failed to answer a writ of garnishment, holding that, despite certain procedural infirmities, the district court did not err in denying the motion to set aside default judgment.After Monty Elliott obtained a judgment his efforts to collect led to a writ of garnishment of Sonny Pilcher's earnings from Rack's Gentlemen's Club, a business operated by CC Cowboy's Inc. The district court entered default judgment against CC Cowboys. Pilcher filed a motion to vacate default judgment, which the district court denied. The Supreme Court affirmed, holding that CC Cowboys waived its objection to personal jurisdiction by appearing in the proceeding without making that objection. View "Pilcher v. Elliott" on Justia Law
Posted in:
Contracts, Wyoming Supreme Court
XL Insurance America, Inc., et al. v. Noranda Aluminum Holding Corporation
Following two operation-disabling accidents, Noranda Aluminum Holding Corporation, an insured aluminum-products manufacturer, whose “all-risks” property-insurance policy included business- interruption coverage, did not rebuild its damaged facility and consequently did not resume operations. Noranda and its insurers agreed that the failure to rebuild and resume operations did not negate the business-interruption coverage. But when Noranda submitted its business-interruption claim, the parties could not agree on how to calculate the Noranda's gross-earnings loss, which was the measure of the insurers’ liability under the relevant policy. After a seven-day trial, a jury found in favor of Noranda, and the insurers appealed. At trial, Noranda's damages expert employed a model that measured the insured’s gross-earnings loss by comparing the value of the insured’s production had the accident not occurred with the value of its production after the accidents had it repaired and resumed operations with due diligence. Although the parties disputed whether the insurers took issue with this methodology at trial in this appeal, the insurers contended that the model was inconsistent with the policy’s formula for calculating gross-earnings loss and that it grossly exaggerated the amount of the Noranda's claim. The insurers also challenged Noranda's expert’s factual assumptions and claimed he improperly included amounts that the insured had waived in an earlier property-damage settlement. The Delaware Supreme Court concluded Noranda's expert's damages model was consistent with the relevant policy provisions, and that the trial court's determination that the factual assumptions made by the expert were sufficiently reliable for the jury to consider was not an abuse of discretion. Likewise, the Court held the insurers' claim that the earlier property-damage settlement precluded a portion of Noranda's recovery was without merit. Therefore, the Supreme Court affirmed. View "XL Insurance America, Inc., et al. v. Noranda Aluminum Holding Corporation" on Justia Law
Robertson v. Intratek Computer, Inc.
A federal whistleblower statute, 41 U.S.C. 4712, does not render unenforceable an arbitration agreement between plaintiff and his former employer, Intratek. The Fifth Circuit held that the district court correctly enforced the arbitration agreement between plaintiff and Intratek. However, the court held that the district court erred in compelling arbitration of claims not covered by that agreement. Finally, the court held that the district court did not abuse its discretion by denying plaintiff's motion to amend the complaint. Therefore, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Robertson v. Intratek Computer, Inc." on Justia Law
Slota v. Imhoff
The Supreme Court affirmed the order of the circuit court granting Defendants' motion for judgment on the pleadings and dismissing Plaintiff's fraud and deceit claims, holding that the claims were time barred.Plaintiff sued a law firm and its attorneys, alleging legal malpractice, fraud and deceit related to their representation of Plaintiff on criminal charges. The circuit court granted judgment on the pleadings for Defendants, concluding that the claims were time-barred by the three-year statute of repose for legal malpractice under S.D. Codified Laws 15-2-14.2. Plaintiff appealed, arguing that the circuit court erred in dismissing the fraud and deceit claims because those claims were subject to a six-year statute of limitations. The Supreme Court affirmed, holding (1) Plaintiff's fraud and deceit claims were subsumed within his malpractice claim; and (2) therefore, all of Plaintiff's claims were precluded under the repose statute. View "Slota v. Imhoff" on Justia Law
Compania Embotelladora Del Pacifico, S.A. v. Pepsi Cola Co.
This appeal stems from a contract dispute between PepsiCo and one of its independent Peruvian bottlers, CEPSA. After PepsiCo terminated its contract with CEPSA, CEPSA filed suit in district court alleging, inter alia, breach of contract claims based on wrongful termination and PepsiCo's alleged failure to protect CEPSA's rights as the exclusive bottler and distributor of PepsiCo products in specified areas of Peru.The Second Circuit affirmed the district court's judgment in favor of PepsiCo and held that the contract was terminable at will and that PepsiCo had no affirmative duty under the contract to protect CEPSA against the alleged harm to its exclusive rights. In this case, the court applied the New York common law of contracts, looked within the four corners of the contract, and concluded that the Exclusive Bottler Appointment (EBA) was terminable at will and that PepsiCo had no duty to police or prevent transshipment. The court considered CEPSA's remaining arguments on appeal and concluded that they are without merit. View "Compania Embotelladora Del Pacifico, S.A. v. Pepsi Cola Co." on Justia Law
Posted in:
Contracts, US Court of Appeals for the Second Circuit
Massey et al. v. Duke Builders, Inc.
Property owners and the contractors they hired to build a house had a dispute. The Georgia Supreme Court granted the owners' request for review to consider: (1) whether anticipated profits could be included in a materialmen’s lien; and (2) if so, whether the improper inclusion of such profits rendered the entire lien void. Because the Court of Appeals correctly held that anticipated profits could not be included in a lien and that their inclusion does not invalidate the entire lien, the Supreme Court affirmed. View "Massey et al. v. Duke Builders, Inc." on Justia Law
Mantle v. North Star Energy & Construction LLC
The Supreme Court affirmed the decision of the district court using a judgment against Alexander Mantle to set off judgments Alexander and Majorie Mantle had against Ray and Gary Garland and failing to recognize the Mantles' right to the proceeds from a settlement of a third-party action against Karl Killmer and Killmer & Associates (collectively, Killmer), holding that the district court did not err.Specifically, the Supreme Court held (1) Ray and Gary were entitled to use the assigned portions of the judgment against Alexander to satisfy the judgments the Mantles had against them for fraudulent transfers; and (2) the district court did not have jurisdiction to the portion of the Killmer settlement funds not deposited with the district court. View "Mantle v. North Star Energy & Construction LLC" on Justia Law
Mann Agency, LLC v. Mississippi Department of Public Safety
After the Mississippi Department of Public Safety (MDPS) reinterpreted a provision in a contract between it and the Mann Agency, LLC, the MDPS refused to pay more than $700,000 in invoices submitted by the Mann Agency. The Mann Agency filed suit against the MDPS for breach of contract. The trial court dismissed each party’s breach-of-contract claim, found that the case involved a bona fide dispute, and denied the Mann Agency’s claim for interest and attorneys’ fees. The Mann Agency appealed the trial court’s decision to deny its claim for interest and attorneys’ fees, arguing that the MDPS acted in bad faith. The MDPS cross-appealed, arguing the trial court erred by dismissing as moot its breach-of-contract claim. Finding no reversible error, the Mississippi Supreme Court affirmed the trial court's decisions. View "Mann Agency, LLC v. Mississippi Department of Public Safety" on Justia Law