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Justia Contracts Opinion Summaries
Winegeart v. Winegeart
The Supreme Court affirmed the order of the circuit court ordering Eryn Winegeart to sell real estate she owned jointly with her former spouse, Weston Winegeart, holding that the court did not err by ordering Eryn to sign a purchase agreement signed by a third party.After the parties underwent mediation, Weston signed an agreement with a real-estate agent to list the jointly owned real estate, and the listing agreement included a commission for the realtor. After the third party signed the purchase agreement, Eryn refused to sign it, asserting that during mediation Weston had orally agreed to sell the property without paying for a realtor. The circuit court found that the parties had not entered into an enforceable oral agreement in regard to realtor fees and ordered Eryn to sign the purchase agreement. The Supreme Court affirmed, holding that the circuit court did not err by entering its order requiring Eryn to sign the purchase agreement. View "Winegeart v. Winegeart" on Justia Law
Community Bank of Trenton v. Schnuck Markets, Inc.
In 2012, hackers infiltrated the computer networks at Schnuck Markets, a large Midwestern grocery store chain based in Missouri, and stole the data of about 2.4 million credit and debit cards. By the time the intrusion was detected and the data breach was announced in 2013, the financial losses from unauthorized purchases and cash withdrawals had reached the millions. Financial institutions filed a class action, having issued new cards and reimbursed customers for losses as required by 15 U.S.C. 1643(a). They asserted claims under the common law and Illinois consumer protection statutes (ICFA). The Seventh Circuit affirmed the dismissal of the suit. The financial institutions sought reimbursement for their losses above and beyond the remedies provided under the credit-debit card network contracts; neither Illinois or Missouri would recognize a tort claim in this case, where the claimed conduct and losses are subject to these networks of contracts. Claims of unjust enrichment, implied contract, and third-party beneficiary also failed because of contract law principles. The plaintiffs did not identify a deceptive guarantee about data security, as required for an ICFA claim, nor did they identify how Schnucks’ conduct might have violated the Illinois Personal Information Protection Act. View "Community Bank of Trenton v. Schnuck Markets, Inc." on Justia Law
Leonetti’s Frozen Foods,Inc. v. Crew, Inc.
Leonetti's filed suit against Crew for negligence, breach of contract, breach of fiduciary duty, and trade libel. Leonetti's alleged that an email sent by the president of Crew caused Sam's Club to decline to purchase Leonetti's stromboli products. The district court granted summary judgment for Crew on each count except the breach of contract count, which was later dismissed with prejudice. The Eighth Circuit reversed the district court's grant of summary judgment, holding that there was a genuine issue of material fact as to the causation of the project termination. In this case, the district court failed to consider Leonetti's evidence offered to rebut an email explaining that Sam's Club was terminating the project for product quality concerns. View "Leonetti's Frozen Foods,Inc. v. Crew, Inc." on Justia Law
Floyd v. U.S. Bank National Association
Linderman bought an Indianapolis house in 2004 and lived there with her ex-husband, their children, and her parents. In 2013, Linderman left and stopped paying the mortgage loan. The others left in 2014. The unoccupied structure was vandalized. U.S. Bank, which owns the note and mortgage, started foreclosure proceedings. The vandalism produced insurance money that was sent to the Bank. The city notified Linderman of code violations. Linderman hired a contractor. In 2015 the Bank disbursed $10,000 for repairs. The contractor abandoned the job. The house was vandalized twice more; a storm damaged the roof. Linderman has not hired a replacement contractor or asked the Bank for additional funds but inquired about the status of the loan and the insurance money. The Bank sent a response. Asserting that she had not received that response, Linderman sued under the Real Estate Settlement Procedures Act, 12 U.S.C. 2605(e)(1)(B). The Seventh Circuit affirmed the rejection of her claims. None of Linderman’s problems with her marriage and mental health can be traced to the Bank. Linderman does not explain how earlier access to the Bank’s record of the account could have helped her; some of her asserted injuries are outside the scope of the Act. The contract between Linderman and the Bank, not federal law, determines how insurance proceeds must be handled. Contract law also governs the arrangement between Linderman and the contractor. View "Floyd v. U.S. Bank National Association" on Justia Law
Smith v. Gebhardt
The Supreme Court reversed the order of the circuit court dismissing Petitioners’ civil action as a sanction for alleged discovery violations, holding that the circuit court abused its discretion by imposing the sanction of dismissal.Petitioners bought this civil action against Respondent alleging unfair and deceptive acts, breach of express and implied warranties, breach of contract, and other causes of action. Respondent eventually filed a second motion to dismiss the civil action as a sanction for alleged discovery violations. The circuit court identified ten instances of alleged wrongful conduct by Petitioners and granted Respondent’s motion to dismiss. The Supreme Court reversed, holding that, even assuming that there was a discovery violation, the circuit court’s imposition of the extreme sanction of dismissal was an abuse of discretion. View "Smith v. Gebhardt" on Justia Law
Krawiec v. Manly
Plaintiffs failed to state claims for tortious interference with contract, misappropriation of trade secrets, unfair and deceptive practices, civil conspiracy, and unjust enrichment sufficient to survive Defendants’ motion to dismiss pursuant to N.C. R. Civ. P. 12(b)(6).After Plaintiffs asserted various causes of action against Defendants, including the "Metropolitan defendants" and "dancer defendants," the Metropolitan defendants and dancer defendants filed motions to dismiss the amended complaint in its entirety pursuant to Rule 12(b)(6). The business court granted the motion to dismiss as to all of Plaintiffs’ claims except for the claims for breach of contract, fraudulent misrepresentation, unjust enrichment, and punitive damages against the dancer defendants. The Supreme Court affirmed as modified, holding (1) Plaintiffs failed to state valid claims for forties interference with contract, unfair and deceptive practices, and unjust enrichment against the Metropolitan defendants; (2) Plaintiffs failed to state valid claims for misappropriation of trade secrets and civil conspiracy against all defendants. View "Krawiec v. Manly" on Justia Law
Dudley Construction, Ltd. v. ACT Pipe & Supply, Inc.
In this billing dispute between a general contractor, Dudley Construction, Ltd., and a pipe supplier, ACT Pipe and Supply, Inc., the Supreme Court affirmed the judgment of the court of appeals in part and reversed it in part, holding (1) in defending a favorable judgment notwithstanding the jury’s verdict, ACT successfully raised a “cross-point” in the court of appeals that preserved an alternative argument proscribing the jury’s original verdict, even though ACT did not formally label its argument a “cross-point”; and (2) attorney’s fees are not recoverable for a claim brought under the Texas Construction Trust Fund Act. The Court remanded this case to the trial court for further proceedings. View "Dudley Construction, Ltd. v. ACT Pipe & Supply, Inc." on Justia Law
Amica Mutual Insurance Co. v Muldowney
At issue was what sort of “specific agreement” is required under DiLullo v. Joseph, 792 A.2d 819 (Conn. 2002), to overcome DiLullo’s presumption that a landlord’s insurer has no right of subrogation to bring an action against a tenant for damage the tenant caused to the rented property.The lower courts in this case concluded that it was sufficient for the lease to allocate to the tenant responsibility for damage caused by the tenant and to require the tenant to obtain insurance even without a specific agreement authorizing subrogation. The Supreme Court affirmed, holding (1) an express agreement that the tenant will bear responsibility for his or her negligence and needs to obtain his or her own insurance to cover that responsibility is the kind of “specific agreement” that will overcome DiLullo’s presumption against subrogation; and (2) the parties in this case made a specific agreement sufficient to overcome the application of DiLullo’s presumption against subrogation, and allowing subrogation was fair and consistent with the doctrine of equitable subrogation. View "Amica Mutual Insurance Co. v Muldowney" on Justia Law
Morgantown Machine & Hydraulics of Ohio v. American Piping Products, Inc.
The Eighth Circuit affirmed the district court's grant of American Piping's motion to dismiss the complaint in an action filed by Morgantown for breach of implied warranties. The court held that Morgantown failed to state a breach of warranty claim on which relief could be granted. In this case, the Terms & Conditions of the contract at issue included an express disclaimer of warranties, and Morgantown did not challenge the validity or enforceability of the express disclaimer. View "Morgantown Machine & Hydraulics of Ohio v. American Piping Products, Inc." on Justia Law
Posted in:
Contracts, US Court of Appeals for the Eighth Circuit
RECP IV WG Land Investors LLC v. Capital One Bank
In this dispute over contractual provision in a real estate purchase agreement (agreement) allocating future development rights for properties located near a new Metro rail station, the circuit court did not err in dismissing RECP IV WG Land Investors LLC’s (WG Land) suit against Capital One Bank (USA), N.A. (Capital One).WG Land, an assignee of certain rights of the seller under the agreement, sued Capital One, the assignee of the purchaser, alleging that Capital One breached the agreement and certain related covenants by developing the property acquired under the agreement without conveying a portion of floor area ratio rights to WG Land. The circuit court ultimately all three counts in the complaint and awarded attorney’s fees and costs to Capital One. The Supreme Court affirmed, holding that the circuit court did not err in sustaining Capital One’s demurrer as to Count I, sustaining Capital One’s plea in bar and granting its motion for summary judgment as to Counts II and III, and awarding attorney’s fees and costs to Capital One. View "RECP IV WG Land Investors LLC v. Capital One Bank" on Justia Law