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Justia Contracts Opinion Summaries
Charlson v. Charlson
Prior to their marriage in 1993, Wife and Husband entered into a pre-marriage agreement (PMA) listing their assets and liabilities. In 2012, Husband sued Wife for divorce in Minnesota. The Minnesota court determined that Butte County, South Dakota, was the proper venue to determine the issues regarding the validity and enforceability of the parties’ PMA. Wife filed a declaratory judgment action against Donald in Butte County requesting a judgment declaring the PMA valid and enforceable and asking the court to construe the rights and interests of the parties under the PMA. The circuit court declared the PMA valid and enforceable and interpreted the PMA. The Supreme Court affirmed, holding (1) the circuit court did not err when it interpreted the PMA to permit tracing of earnings or property through the joint marital account and applied the marital loan concept; (2) the circuit court did not err when it adopted Wife’s expert’s report; and (3) Wife was not entitled to appellate attorney’s fees. View "Charlson v. Charlson" on Justia Law
Obermeyer Hydro v. CSI Calendering
The parties to this suit agreed they had a contract, but disputed prices. The district court granted summary judgment to CSI Calendaring, Inc. On appeal the parties raised a number of arguments about whose view of the price should prevail. They disagreed about whether they already had agreed on the price before issuance of the January quote at issue, whether the January quote modified any prior agreement, and whether Obermeyer Hydro Accessories, Inc. was bound by CSI’s view of the pricing because Obermeyer paid a number of invoices over several months that reflected that view. In the Tenth Circuit's view, there were unresolved factual disputes that precluded judgment for either party, and therefore reversed and remanded for further proceedings. View "Obermeyer Hydro v. CSI Calendering" on Justia Law
Oltmans Construction Co. v. Bayside Interiors, Inc.
Escobar was an employee of O’Donnell, a sub-subcontractor of Bayside, which was a subcontractor of Oltmans, the general contractor on a Menlo Park construction project. Escobar sued Oltmans and the property owner, alleging that Oltmans negligently cut and left unsecured a skylight opening in the building under construction, through which Escobar fell while installing scaffolding that O’Donnell was erecting for Bayside. Oltmans filed a cross-complaint against the subcontractors, alleging a right to contractual indemnity and breach of Bayside’s contractual obligation to provide certificates of insurance certifying that Oltmans was covered as an additional insured under liability policies the subcontractors were obligated to obtain. The subcontract provided indemnity to Oltmans for injury claims arising out of the scope of the subcontractor’s work “except to the extent the claims arise out of, pertain to, or relate to the active negligence or willful misconduct” of Oltmans. Reversing the trial court, the court of appeal ruled in favor of Oltmans. Under such a provision the general contractor is precluded from recovering indemnity for liability incurred as a result of its own active negligence but may be indemnified for the portion of liability attributable to the fault of others. The court noted the same question arises as to the meaning of Civil Code section 2782.05, which renders unenforceable an indemnity provision “to the extent the claims arise out of, pertain to, or relate to the active negligence or willful misconduct of that general contractor.” View "Oltmans Construction Co. v. Bayside Interiors, Inc." on Justia Law
Segura v. State
Plaintiffs’ attorney filed two board claim forms with a state appeals board on behalf of Plaintiffs, signing their names and his own. The attorney did not attach any document showing he had power of attorney. The board rejected Plaintiffs’ claims. Plaintiffs then filed their claim in district court. The district court dismissed Plaintiffs’ claims on the ground that their attorney signed the forms on their behalf. The Supreme Court reversed, holding (1) a claimant presents a claim when the board receives a writing that discloses the amount of damages claimed and generally describes the legal theories asserted against the State; and (2) the district court had jurisdiction to hear Plaintiffs’ claims. View "Segura v. State" on Justia Law
DuTrac Community Credit Union v. Hefel
The district court granted a request for entry of a charging order against a personal guarantor and judgment debtor’s transferable interest in an LLC. The judgment debtor and intervenor filed a motion to quash alleging that multiple levies and garnishments were improper. The district court granted the motion to quash. The Supreme Court affirmed in part and reversed in part, holding (1) the entry of the charging order was proper; but (2) the district court erred in granting the motion to quash because it is proper to have multiple levies and garnishments at the same time so long as they are under a single execution. Remanded. View "DuTrac Community Credit Union v. Hefel" on Justia Law
Central Bank v. Hogan
Liberty Bank made five loans to the owner of real property (Property). Liberty Bank and five other banks entered into participation agreements related to the loan. Iowa Great Lakes Holding later defaulted on the loan, and the mortgage was extinguished. After the surrender and foreclosure, Liberty Bank and Central Bank entered into an agreement under which Central Bank acquired assets, including loans, from Liberty Bank. Liberty Bank conveyed the Property to a Central Bank affiliated entity via quitclaim deed. Central Bank then filed a declaratory action against Liberty Bank and the five participating banks seeking a ruling that it owned the Property free and clear of any interest of the participating banks. The district court granted summary judgment for Defendants, concluding that, under the participation agreements, Central Bank did not own the property in fee simple because Liberty Bank did not sell Central Bank a one hundred percent interest in the property. The Supreme Court affirmed, holding that the ownership interest of the participating banks in the mortgage and underlying collateral was superior to Central Bank, which claimed its interest was derivative of and limited to the interest held by Liberty Bank. View "Central Bank v. Hogan" on Justia Law
James v. Global TelLink Corp.
In New Jersey, GTL is the sole provider of telecommunications services that enable inmates to call approved persons outside the prisons. Users can open an account through GTL’s website or through an automated telephone service with an interactive voice-response system. Website users see GTL’s terms of use and must click “Accept” to complete the process. Telephone users receive an audio notice: Please note that your account, and any transactions you complete . . . are governed by the terms of use and the privacy statement posted at www.offenderconnect.com.” Telephone users are not required to indicate their assent to those terms, which contain an arbitration agreement and a class-action waiver. Users have 30 days to opt out of those provisions. The terms state that using the telephone service or clicking “Accept” constitutes acceptance of the terms; users have 30 days to cancel their accounts if they do not agree to the terms. Plaintiffs filed a putative class action alleging that GTL’s charges were unconscionable and violated the state Consumer Fraud Act, the Federal Communications Act, and the Takings Clause. GTL argued that the FCC had primary jurisdiction. Plaintiffs withdrew their FCA claims. GTL moved to compel arbitration. The district court denied GTL’s motion with respect to plaintiffs who opened accounts by telephone, finding “neither the knowledge nor intent necessary to provide ‘unqualified acceptance.’” The Third Circuit affirmed. The telephone plaintiffs did not agree to arbitration. View "James v. Global TelLink Corp." on Justia Law
Flournoy v. CML-GA WB, LLC
Plaintiff, an African-American, filed suit against defendants after her application to lease a space for her hair salon was denied. Plaintiff alleged that the denial infringed her right to freedom from racial discrimination in the making of a contract. The district court granted summary judgment for defendants. The court affirmed the district court's alternative conclusion that plaintiff failed to rebut the legitimate, nondiscriminatory reasons defendants proffered for denying her lease application. Defendants' reasons included: odors emanating from the salon would disturb the residential tenants on the upper floors; plaintiff's business would not survive given the number of other salons in the area; a salon would not generate cross-shopping with other commercial tenants; plaintiff's credit score was too low; and defendants would not break even given the high cost of building out the unit. View "Flournoy v. CML-GA WB, LLC" on Justia Law
Hartman v. State
Petitioner pled guilty to theft in exchange for the State’s recommendation that she receive no executed jail time. The district court did not follow the State’s recommendation and instead imposed a sentence of thirty days’ incarceration. Petitioner filed a de novo appeal to the circuit court and entered a plea of not guilty. The State subsequently offered a new plea agreement whereby, in exchange for Petitioner’s guilty plea, the State would recommend Petitioner receive thirty days’ incarceration. Petitioner filed a motion to enforce the plea agreement in the circuit court, contending that the state violated the terms of the district court plea agreement by altering its sentencing recommendation. The circuit court denied the motion, concluding that on de novo appeal, the district court plea agreement was no longer enforceable. The Court of Appeals affirmed, holding that the district court plea agreement did not extend to the de novo circuit court proceeding. View "Hartman v. State" on Justia Law
Compton v. Houston Casualty Co.
At issue in this appeal was the scope of the “covered profession” clause of a professional liability errors and omissions insurance policy issued to Utah County Real Estate, LLC (Prudential) by Houston Casualty Company. While working as a real estate agent for Prudential, Robert Seegmiller engaged in a professional relationship with the plaintiffs in this action (collectively, Investors) on a real estate deal that went sour. The Investors obtained a judgment against Seegmiller for negligence. Rather than execute the judgment against Seegmiller, the Investors settled with him, acquiring any claims he might have against Prudential’s insurer, Houston Casualty. The Investors then brought this action alleging that Houston Casualty breached the policy by failing to defend and indemnify Seegmiller. The district court granted summary judgment for Houston Casualty. The Supreme Court affirmed on the ground that Seegmiller’s conduct in the transaction was not covered by the policy because he was not providing services “for a fee” in the transaction. View "Compton v. Houston Casualty Co." on Justia Law