
Justia
Justia Contracts Opinion Summaries
Ibe v. Jones
Appellants purchased tickets to Super Bowl XLV and were either displaced from their seats, relocated, or had an obstructed view of the field. The majority of the affected ticketholders settled with the NFL. However, appellants in this instance elected to file suit, alleging various claims relating to breach of contract and fraud. Most of appellants’ claims were dismissed before trial, and class certification was denied. Seven individual appellants went to trial against the NFL and prevailed on breach of contract, but not on fraudulent inducement claims. The court concluded that, because appellants have presented no authority supporting that a third-party vendor with limited responsibility is also responsible for the performance of the express ticket terms, appellants’ argument that the Cowboys are liable for their tort claims fails; an inference of fraudulent inducement is untenable; and the economic loss rule bars appellants' claims. The court also concluded that the contract claims failed where the unambiguous term of the contract entitling ticketholders to “a spectator seat for the game” was not breached by an obstructed view of the video board. Furthermore, the fraudulent inducement claims failed because appellants were not fraudulently induced to buy Super Bowl tickets thinking they would see the game on the video board. As to class certification, the court concluded that the district court did not abuse its discretion in refusing to certify the Displaced Class, the Relocated Class, and the Obstructed-View Class. Finally, the court concluded that the district court did not abuse its discretion in declining to give appellants' proposed jury instruction. Accordingly, the court affirmed the judgment. View "Ibe v. Jones" on Justia Law
Holiday Motor Corp. v. Walters
Shannon Walters sustained serious injuries when her 1995 Mazda Miata convertible overturned while she was driving it with the soft top closed. Walters filed negligence and breach of implied warranty of merchantability claims against Mazda Motor Corporation and Mazda Motor of American, Inc. (collectively, Mazda), arguing that the soft top’s latching system was defective and that she was injured after the windshield headed disconnected from the top and collapsed into the occupant compartment. The jury rendered a verdict in favor of Walters. The Supreme Court reversed, holding (1) Mazda had no legally recognized duty to design or supply a soft top that provided occupant protection in a rollover crash; and (2) the opinion offered by Walters’ expert that the Mada Miata latching system was defectively designed lacked an adequate foundation, and therefore, the circuit court abused its discretion in admitting it. Final judgment entered for Mazda. View "Holiday Motor Corp. v. Walters" on Justia Law
Federated Capital Corp. v. Libby
In 2005, Connor Libby and Elena Chapa (collectively, Defendants) signed credit card agreements with Federated Capital Corporation’s predecessor-in-interest, a Utah corporation with its principal place of business in Pennsylvania. The agreements contained a forum selection clause and choice of law provision that adopted Utah substantive and procedural law to govern any dispute under the contract. The agreements required Defendants to make monthly payments to the address specific on their billings statements, and each billing statement required Defendants to send their payments to an address in Philadelphia, Pennsylvania. Defendants defaulted in 2006. In 2012, Federated filed separate claims in separate proceedings against Defendants. In each proceeding, the district court granted summary judgment in favor of Defendants, ruling that Utah’s borrowing statute required the court to apply Pennsylvania’s four-year statute of limitations, thereby barring Federated’s claims. Federated appealed, arguing that the agreement’s forum selection clause precluded the application of Utah’s borrowing statute. The Supreme Court affirmed, holding that the borrowing statute applied to and barred Federated’s causes of action. View "Federated Capital Corp. v. Libby" on Justia Law
Addie v. Kjaer
In 2004, buyers contracted to buy an island off of St. Thomas and a St. Thomas launch for $21,000,000 and $2,500,000. The sellers’ attorney, D’Amour, also owned the escrow company involved in the transaction. The buyers deposited $1,000,000. They later paid another $500,000 to extend the closing date. The deposits were nonrefundable. After another extension, the buyers had not paid the purchase price; the sellers had not conveyed marketable title. D’Amour sent the buyers a notice of default; they demanded refunds. The buyers sued; the sellers filed counterclaims. The district court granted summary judgment to the buyers on a conversion claim against D’Amour for $500,000. A jury awarded one buyer, Taylor, $1,500,000 in contract damages from the sellers and $46,000 for fraudulent misrepresentation by D’Amour. The jury awarded the sellers $339,516.76 from the other buyers for misrepresenting their ability to purchase the properties; the court granted judgment as a matter of law, finding the tort claims barred by the gist of the action doctrine. The court reduced Taylor’s contract damages award to $0, but upheld the fraudulent misrepresentation verdict against D’Amour The Third Circuit concluded that all parties failed to perform under the contracts and denied all damages, but concluded that Taylor was entitled to restitution from the sellers ($1,500,000). On remand, the district court awarded prejudgment interest at rates of three and six percent; declined to award attorney’s fees to Taylor, citing Taylor’s “role in breaching the contract” and the complexity of the case; and concluded that D’Amour was not entitled to attorney’s fees . The Third Circuit affirmed, except the award of prejudgment interest at a rate other than the statutorily provided 9 percent. View "Addie v. Kjaer" on Justia Law
Arceneaux v Amstar Corp.
The issue this case presented for the Louisiana Supreme Court's review was whether the duty to defend in long latency disease cases could be prorated between an insurer and its insured when occurrence-based policies provide coverage for only a portion of the time during which exposure occurred. In the underlying Arceneaux suit, plaintiffs alleged that they suffered hearing loss from exposure to unreasonably loud noise in the course of their work at American Sugar’s refinery in Arabi, Louisiana. Two sets of plaintiffs, the Barbe plaintiffs and the Waguespack plaintiffs, filed suit against American Sugar in 2006. These suits were consolidated with the Arceneaux action, which was filed in 1999 against American Sugar’s predecessor, Tate & Lyle North American Sugars, Inc. This opinion concerned only the Barbe and Waguespack plaintiffs, and not the Arceneaux plaintiffs whose claims had been litigated extensively in the trial court, the court of appeal, and the Louisiana Supreme Court. Continental Casualty Company argued that defense costs should have been prorated among insurers and the insured if there were periods of non-coverage. American Sugar Refining, Inc. claimed that the duty to defend as agreed upon in the policy provided for a complete defense so long as the duty to defend attached, even if some claims fell outside of coverage. The Supreme Court held that the duty to defend should have been prorated in this case based upon policy language. View "Arceneaux v Amstar Corp." on Justia Law
Junkermier, Clark, Campanella, Stevens, P.C. v. Alborn, Uithoven, Riekenberg, P.C.
Junkermeir, Clark, Campanella, Stevens, P.C. (Junkermeir) was a Montana accounting firm with offices in several Montana cities. Junkermeir lost its Bozeman branch office after the majority of its Bozeman shareholders decided to start their own firm, taking a significant number of Junkermier’s clients with them. Junkermeir filed a complaint against the former shareholders, claiming breach of contract and breach of fiduciary duty. The district court dismissed the breach of contract claim on summary judgment, concluding that the contractual covenant restricting competition that Junkermeir sought to enforce was unenforceable. After a trial, the district court ruled that most of the former shareholders owed no legal duty to Junkermeir and that while the remaining former shareholder breached his fiduciary duty to Junkermeir, Junkermeir failed to prove awardable damages from that breach. The Supreme Court reversed in part and affirmed in part, holding that the district court (1) erred in ruling that the agreement was not an enforceable contract; and (2) did not err in concluding that only one former shareholder breached a fiduciary duty but erred in concluding that Junkermeir was not entitled to collect any damages stemming from that breach. View "Junkermier, Clark, Campanella, Stevens, P.C. v. Alborn, Uithoven, Riekenberg, P.C." on Justia Law
Monster Heavy Haulers, LLC v. Goliath Energy Services, LLC
In consolidated appeals, Goliath Energy Services, LLC, and George Satterfield challenged orders denying their N.D.R.Civ.P. 60(b) motions to vacate default judgments entered against them in favor of Monster Heavy Haulers, LLC, and Rossco Crane and Rigging, Inc. Monster was in the oil field construction, trucking, and rigging business. Rossco was in the business of providing various crane and rigging services. Goliath was a limited liability company with its principal place of business located in Grand Junction, Colorado, and it conducted business in North Dakota. Satterfield was Goliath's president and Karl Troestler was its chief financial officer. Rossco and Monster sued Goliath, Troestler, and Satterfield to collect payment of outstanding balances owed for services provided to Goliath. A default judgment eventually entered in favor of Monster for $240,107.23. Rossco advised its attorney that negotiations had also failed with the defendants. Rossco's attorney filed the closing papers with the clerk of court, and a default judgment was entered against the defendants in favor of Rossco for $97,233.04 a month later. On appeal, Goliath and Satterfield argued the district court erred in denying their motions to vacate the default judgments under N.D.R.Civ.P. 60(b). The North Dakota Supreme Court concluded after review that the district court acquired personal jurisdiction over the defendants in the underlying actions and did not abuse its discretion in denying the motions for relief from judgment. Accordingly, the Court affirmed. View "Monster Heavy Haulers, LLC v. Goliath Energy Services, LLC" on Justia Law
MLG Enters., LLC v. Johnson
In 2007, Landlord entered into a written agreement for the lease of commercial real estate to Tenant. In 2009, Landlord filed a complaint against Tenant and Richard Johnson alleging that Tenant breached the lease and that Johnson breached the personal guaranty agreement in the lease. The trial court dismissed Landlord’s claims against Johnson, concluding that Johnson was not personally liable for the obligations in the lease because he did not sign the lease in his personal capacity. At issue on appeal was whether Johnson agreed to be personally liable for Tenant’s obligations when he signed the agreement a second time. The Court of Appeals affirmed. The Supreme Court reversed, holding that Johnson’s second signature, “which followed a paragraph clearly indicating that the parties agreed that [Johnson] would be personally responsible for [Tenant’s] obligations,” was effective to bind Johnson. Remanded. View "MLG Enters., LLC v. Johnson" on Justia Law
Baker Hughes Inc. v. S&S Chemical, LLC
Stevens worked for Baker from 1989 until 1996. When his employment ended, Stevens signed a contract in which he promised to maintain the confidentiality of Baker’s trade secrets. In 1999, Stevens sued, alleging failure to fully pay the compensation due him during his employment. The parties eventually settled; Baker paid Stevens $10,000. Around that time, Stevens formed S&S Chemical to produce polyethylene products. Baker suspected that S&S was improperly using Baker’s EP Processes and sent Stevens a letter in 2002 reminding Stevens of his Termination Agreement. Stevens responded that he had independently developed the processes used to manufacture S&S’s chemicals. Baker later confirmed that S&S was not then using Baker’s confidential information. Baker again became suspicious and, in 2014, sued Stevens. The Sixth Circuit affirmed judgment in favor of Stevens. Petrolite unquestionably knew of and approved each step that gave rise to the settlement contract at issue, the Release Provision of which unambiguously released Stevens from the obligations of the Termination Agreement. View "Baker Hughes Inc. v. S&S Chemical, LLC" on Justia Law
Tyson v. Sterling Rental, Inc.
Plaintiff purchased a 2006 Chevrolet Cobalt from Car Source for $8,525.00. Plaintiff paid $1,248, using a grant from the state of Michigan. A salesman entered information from her most recent pay stubs and a recent bank statement into a computer program that incorrectly calculated that Plaintiff’s monthly income as $1,817.38. Plaintiff’s actual income was about $900 per month. It is not clear how the error occurred. Based on the incorrect estimate and her deposit, the APR on Plaintiff’s loan was set at 24.49%. Plaintiff signed an agreement. Days later she was notified that the terms had to be modified and returned to Car Source. Plaintiff claims that Car Source employees began “yelling and swearing” at her; removed her belongings from the Cobalt and “dumped them” at her feet; and stated that if she wanted her car back, she would have to make an additional payment of $1,500. Plaintiff refused to sign a new agreement and was never provided with written notice explaining why her credit arrangement had been or needed to be changed. The Sixth Circuit affirmed summary judgment that Car Source violated the Equal Credit Opportunity Act, 15 U.S.C. 1691, by changing the terms without providing a written notice with specific reasons. The court reversed the district court’s determination that injunctive relief was not available to Plaintiff under the ECOA and reversed summary judgment in favor of Defendants on Plaintiff’s statutory conversion claims. View "Tyson v. Sterling Rental, Inc." on Justia Law