
Justia
Justia Contracts Opinion Summaries
Gillis v. The Principia Corp.
Plaintiff filed suit against Principia, alleging claims arising from events that occurred during plaintiff's time as a student at Principia. The district court granted Principia's motion to dismiss. The court held that plaintiff failed to state a claim for breach of contract because none of the policies and provisions that she identifies in her Third Amended Complaint create obligations that Principia owed to plaintiff; the district court did not err in dismissing plaintiff's intentional infliction of emotional distress (IIED) claim where the allegations set forth in plaintiff's complaint detail, at most, insults, indignities, threats, annoyances, petty oppressions, or other trivialities to which liability for IIED clearly does not extend; and the district court properly dismissed the negligent infliction of emotional distress claim (NIED) where, under Missouri law, plaintiff failed to allege that her emotional distress or mental injury is medically diagnosable. Accordingly, the court affirmed the judgment. View "Gillis v. The Principia Corp." on Justia Law
Watson Bowman Acme Corp. v. RGW Construction
RGW entered into a contract with Watson for the delivery of 146 sealed expansion joints for use on the Caltrans project for the construction of Highway 99. Watson filed a breach of contract action, contending it was entitled to an adjustment of the price on RGW’s original purchase order because the items ordered were changed. The trial court concluded that RGW’s purchase order was ambiguous and allowed the jury to decide what the contract meant and what price was appropriate. The jury decided in favor of Watson, finding the amount of the subject agreement was $605,990. The jury awarded Watson damages of $383,032. The court concluded that the trial court correctly (1) determined that RGW’s purchase order was ambiguous and (2) allowed the jury to evaluate the conflicting parol evidence before deciding the meaning of the contract. The court also concluded that the price adjustment owed to Watson for the change in the order was sufficiently certain to meet the statutory requirements for an award of prejudgment interest. Accordingly, the court affirmed the judgment, except for its failure to award prejudgment interest to Watson. View "Watson Bowman Acme Corp. v. RGW Construction" on Justia Law
City of Montebello v. Vasquez
The City of Montebello filed a complaint against three of its former council members and a former city administrator for conflict of interest, seeking a declaration that Defendants violated Cal. Gov't Code 1090 by voting on a waste hauling contract in which Defendants held a financial interest. After the contract was voided in a separate action, Defendants moved to strike the City’s complaint under the anti-SLAPP statute. The trial court denied the motion to strike. The court of appeal affirmed. The Supreme Court reversed, holding (1) the statutory anti-SLAPP exemption for public enforcement actions did not apply in this case; but (2) the votes cast in favor of the contract were protected activity under section 425.16, and because the court of appeal did not reach the issue of whether the City could establish a likelihood of the lawsuit succeeding, the case must be remanded. View "City of Montebello v. Vasquez" on Justia Law
Posted in:
Contracts, Supreme Court of California
Morlin Asset Mgmt. LP v. Murachanian
After plaintiff was injured when he slipped on the stairs in the common area of a commercial building, he filed suit against the building and its managers (the landlords), for negligence and premises liability. The landlords each filed virtually identical cross-complaints against Edward Murachanian (the tenant), a dentist who rents an office suite in the building. The tenant had hired plaintiff’s employer to clean the carpets in his second-floor suite. The trial court granted the tenant’s motion for summary judgment, finding the lease obligated the tenant to indemnify the landlords only against claims for injuries occurring within the tenant’s office suite, not in the common areas. The court held that, under the indemnity clause in this case, the injury to a third party that occurred outside the dental suite, in a common area over which the landlords have exclusive control, did not arise out of the tenant’s use of the dental suite. It does not matter that the accident would not have happened but for the tenant hiring the third party to clean the carpets in the dental suite, and that the third party may have been at fault. Accordingly, the court affirmed the judgments and the order awarding attorney fees. View "Morlin Asset Mgmt. LP v. Murachanian" on Justia Law
CypressPoint Condominium Association, Inc. v. Adria Towers, L.L.C., et al.
This dispute arose from the construction of Cypress Point, a luxury condominium complex in Hoboken. Co-defendants Adria Towers, LLC, Metro Homes, LLC, and Commerce Construction Management, LLC (collectively, the developer) served as the project's developer and general contractor, and subcontractors carried out most of the work. During construction, the developer obtained four CGL policies from Evanston Insurance Company, covering a four-year period, and three from Crum & Forster Specialty Insurance Company, covering a subsequent three-year period (collectively, the policies). In this appeal, issue before the Supreme Court was whether rain water damage caused by a subcontractor's faulty workmanship constituted property damage and an occurrence under the developer's commercial general liability (CGL) insurance policy. In a published decision, the Appellate Division reversed, holding that, under the plain language of the CGL policies, the unintended and unexpected consequential damages caused by the subcontractors faulty workmanship constituted property damage and an occurrence. The Supreme Court agreed and affirmed, finding that the consequential damages caused by the subcontractors faulty workmanship constituted property damage, and the event resulting in that damage water from rain flowing into the interior of the property due to the subcontractors faulty workmanship was an occurrence under the plain language of the CGL policies at issue here. View "CypressPoint Condominium Association, Inc. v. Adria Towers, L.L.C., et al." on Justia Law
Drake-Williams Steel, Inc. v. Continental Cas. Co.
At the center of this dispute was defective rebar that was incorporated into the construction of concrete pile caps that would form support for the Pinnacle Bank Arena. Some of the pile caps had to be modified in order to provide the necessary structural support for the Arena. The general contractor paid the costs of the correction and sought reimbursement from Drake-Williams Steel, Inc. (DWS), which fabricated the rebar. DWS reimbursed the general contractor and sought coverage from its insurers. The insurers denied the claim and commenced this action to determine their obligations under the policies of insurance. The district court granted summary judgment in favor of the insurers. The Supreme Court affirmed, holding that there was no coverage under the policies. View "Drake-Williams Steel, Inc. v. Continental Cas. Co." on Justia Law
Geysen v. Securitas Security Servs. USA, Inc.
After hiring Plaintiff, Defendant-employer amended its sales commission plan. At dispute in this case was a revised commission provision, which provided that Plaintiff’s commissions would not be paid unless Defendant had invoiced commissionable amount to the client prior to Plaintiff’s termination. After Plaintiff was terminated, he filed a wage statute claim alleging that the commission provision was contrary to public policy and a violation of Conn. Gen. Stat. 31-72. Plaintiff’s remaining two claims were stricken upon Defendant’s motion. After a trial, the court granted judgment in favor of Plaintiff, holding that the commission provision at issue was contrary to public policy. Both parties appealed. The Supreme Court affirmed in part and reversed in part, holding that the trial court (1) improperly determined that the commission provision violated public policy and constituted a violation of section 31-72; (2) erred in striking Plaintiff’s claim alleging breach of the implied covenant of good faith and fair dealing; and (3) did not err in striking Plaintiff’s claim alleging wrongful discharge. Remanded. View "Geysen v. Securitas Security Servs. USA, Inc." on Justia Law
Walker v. Hartford Life and Accident Ins.
Plaintiff was insured under a group long-term disability policy the county obtained from Hartford. After Hartford denied plaintiff's claim for disability benefits, she filed suit in Minnesota state court for breach of contract. Hartford timely removed to federal court based on diversity jurisdiction. The district court then granted Hartford summary judgment. Under the plain meaning of the statute, the court concluded that plaintiff's suit was time-barred. The court also concluded that the legislative distinction between individual and group policies does not violate the principles of equal protection under the United States and Minnesota constitutions. Accordingly, the court affirmed the district court's conclusion that plaintiff's suit was untimely. View "Walker v. Hartford Life and Accident Ins." on Justia Law
ACE Fire Underwriters v. Romero
ACE Fire Underwriters Insurance Company appeals the district court’s declaration that a policy ACE issued offered total coverage up to $2 million for an accident involving two insured vehicles: a tractor and trailer. The trailer detached from the tractor. The driver pulled off the roadway to reattach, then hoped to make a quick u-turn and continue down the road. But before he could complete the turn, another vehicle collided with the trailer, killing the vehicle's driver. As the insurer of the tractor and the trailer, ACE reached a settlement with the Estate of the vehicle's driver. But the parties conditioned the settlement upon litigating the available limits of the policy. ACE maintained that the policy provisions limited its liability to $1 million per accident, regardless of the number of covered autos involved. The Estate, on the other hand, insisted that ACE’s liability under the policy was $1 million per covered auto involved in each accident. That interpretation of the policy would cap ACE’s liability in this case at $2 million because, according to the Estate, the tractor and the trailer were both involved in the accident. Under the terms of the settlement, ACE initially paid the Estate $1 million. But it agreed to pay it an additional $550,000 if the court accepted the Estate’s interpretation of the policy. Because the Tenth Circuit agreed with ACE that the policy instead limits its liability to only $1 million, it reversed. View "ACE Fire Underwriters v. Romero" on Justia Law
Olmsted v. Saint Paul Pub. Sch.
After plaintiff attempted to unilaterally rescind his resignation and resume his teaching role, and the District refused to reinstate him, plaintiff filed suit for breach of his employment contract. The district court granted summary judgment for the District. The court rejected plaintiff's duress claim, concluding that no evidence supports the allegation that the District made an unlawful threat. Even if plaintiff could demonstrate that the District unlawfully threatened him, the threat was cured by applying the factors set forth in St. Louis Park Inv. Co. v. R.L. Johnson Inv. Co. In the absence of duress, plaintiff's resignation was valid when accepted. Plaintiff's attempted rescission of that resignation merely constitutes an offer and requires that the District provide its consent. In this case, the district did not provide consent, and plaintiff cannot unilaterally rescind his resignation. Finally, the court concluded that there is no evidence that the District made material misrepresentations to plaintiff. Accordingly, the court affirmed the judgment. View "Olmsted v. Saint Paul Pub. Sch." on Justia Law