In early 2011, Trent Gearheart was severely injured in an automobile accident caused by an underinsured motorist (“UIM”). After the accident, Trent’s parents, Ronald Gearhart and Brandi L. McMahon, who were divorced, each attempted to collect on their separately held auto insurance policies with Enumclaw. Each of those policies provided maximum coverage of $300,000 for accidents caused by underinsured motorists. Enumclaw contended that because of anti-stacking language in the policies, the total UIM benefit under the combined policies was limited to $300,000. The district court held on summary judgment that the UIM anti-stacking provision in each policy was invalid and, therefore, ruled that Enumclaw was obligated for the full $300,000 policy limit on both policies. Enumclaw appealed. Finding no reversible error, the Idaho Supreme Court affirmed the district court's judgment. View "Gearhart v. Mutual of Enumclaw Ins Co" on Justia Law

At issue in this case was whether plaintiff, Ronnisch Construction Group (RCG), could seek attorney fees under section 118(2), MCL 570.1118(2), of the Construction Lien Act (CLA) from defendant Lofts on the Nine, LLC (LOTN), given that plaintiff received a favorable arbitration award on its related breach of contract claim but did not obtain a judgment on its construction lien claim. After review, the Michigan Supreme Court held that the trial court could award attorney fees to RCG because RCG was a lien claimant who prevailed in an action to enforce a construction lien through foreclosure. Therefore, the Court affirmed the Court of Appeals and remanded this case back to the trial court for further proceedings. View "Ronnisch Construction Group, Inc. v. Lofts on the Nine, LLC" on Justia Law

Berg was a long‐time pit broker at the Chicago Mercantile Exchange. In 1991 and 1994, Berg bought disability‐income insurance policies. In 2005, he started to experience a tremor in his arms and hands, which interfered with his ability to write quickly and legibly. In 2007, the tremor forced him to leave his job. In 2010, a neurologist diagnosed Berg with an “essential tremor.” Berg applied for total disability benefits. Although the insurers approved Berg’s claim, they designated his disability onset date as February 2010, rather than September 2007. In 2012, Unum discontinued Berg’s total‐disability benefits, asserting that he was eligible only for residual‐disability benefits because when he applied, his regular occupation was “unemployed person.” The district court granted summary judgment to the defendants. The Seventh Circuit reversed, rejecting an argument that, until he saw a physician in 2010, Berg did not meet the policy’s definition: “Total Disability means that the Insured can not [sic] do the substantial and material duties of his or her regular job,” that “[t]he cause of the total disability must be an injury or a sickness,” and that “[t]he injury or sickness must be one which requires and receives regular care by a Physician.” The clause does not contain a temporal element. View "Berg v. New York Life Ins. Co." on Justia Law

Byrne & Jones Enterprises, Inc. filed an action against Monroe City R-1 School District alleging that it was denied a fair and equal opportunity to compete in the bidding process for a public works contract to build an athletics stadium. The trial court dismissed the petition, concluding that Byrne & Jones, as an unsuccessful bidder, lacked standing to challenge the school district’s award of the contract to another bidder because it did not bring the action in the interest of the public or as a taxpayer. The Supreme Court affirmed, holding (1) Byrne & Jones had standing to challenge the award of the contract to another bidder; but (2) the trial court did not err in dismissing the petition because Byrne & Jones was not entitled to the relief requested in the petition. View "Byrne & Jones Enters., Inc. v. Monroe City R-1 Sch. Dist." on Justia Law

At the heart of this case was a 2004 oil and gas lease with a five-year term between Trans-Western Petroleum, Inc. and United States Gypsum Co. (“USG”). Trans-Western contacted USG to lease its land at the conclusion of an existing lease between USG and Wolverine Oil & Gas. USG and Trans-Western agreed to terms, and Trans-Western recorded its lease. Wolverine protested the recording of the new lease, claiming that its lease with USG remained valid under pooling and unitization provisions contained in its lease. In response to the protest, USG, in writing and by phone, rescinded the Trans-Western lease. Trans-Western sued for a declaration that the Wolverine lease expired. The district court determined that the Wolverine lease had expired. As part of their agreement, USG and Trans-Western executed a ratification and lease extension. Armed with the determination that the Wolverine lease was no longer in effect, in 2010, Trans-Western also filed a second amended complaint, seeking a declaratory judgment that its lease with USG was valid and damages for breach of contract and breach of the covenant of quiet enjoyment, among other claims. The district court granted partial summary judgment to Trans-Western, determining that USG had breached the lease but denied attorney’s fees due to disputed material facts on damages. During a bench trial on damages, Trans-Western contended that it was entitled to expectation damages for both breach of contract and breach of the covenant of quiet enjoyment because USG deprived it of the opportunity to assign the lease during its five-year term. USG contended, inter alia, that damages for the breach of an oil and gas lease, like any real property, were measured at the date of breach and not pegged to a hypothetical sale at the market’s peak. The district court rejected Trans-Western’s damages theories, finding that Trans-Western was entitled only to nominal damages based on the value of the contract on the date of breach, which had not increased since the date of execution. The Tenth Circuit certified a question of how expectation damages for the breach of an oil and gas lease should have been measured to the Utah Supreme Court. The Utah Supreme Court held that general (or direct) and consequential (or special) damages were available for the breach of an oil and gas lease and should be measured in “much the same way as expectation damages for the breach of any other contract.” In light of the Utah Supreme Court’s holding, the Tenth Circuit remanded this case to the district court for consideration of damages. View "Trans-Western Petroleum v. United States Gypsum Co." on Justia Law

At issue in this case were two provisions of a title insurance policy underwritten by Fidelity National Title Insurance Company. One provision insured against unmarketability of title, and the other insured against a lack of access to property. The owner of the policy, Woody Creek Ventures, LLC, contended that both provisions covered losses it sustained when it learned, after purchasing two parcels of land, that one parcel lacked permanent access. And although Fidelity obtained a 30-year right-of-way grant to that parcel, Woody Creek argued Fidelity failed to cure the lack of access and the title remained unmarketable. After review, the Tenth Circuit agreed with the district court’s conclusions that: (1) the policy did not insure a permanent right of access; (2) the right-of-way cured the lack of access to the parcel; and (3) the lack of permanent access did not render Woody Creek’s title unmarketable. View "Fidelity National Title v. Woody Creek Ventures" on Justia Law

Illumina’s 794 patent, covering DNA assay optimization techniques, issued in 2011. In 2010-2011, Ariosa provided Illumina, as a prospective investor, with information on its efforts to develop a noninvasive prenatal diagnostic test. Seven months after the 794 patent issued, Illumina agreed to supply consumables, hardware, and software to Ariosa for three years, providing Ariosa with a non-exclusive license to Illumina’s “Core IP Rights in Goods,” specifically excluding “Secondary IP Rights … that pertain to the Goods (and use thereof) only with regard to particular field(s) or application(s), and are not common to the Goods in all applications and fields.” The agreement’s arbitration clause excluded “disputes relating to issues of scope, infringement, validity and/or enforceability of any Intellectual Property Rights.” Illumina never indicated that Ariosa needed to license the 794 patent . Ariosa launched the Harmony Prenatal Test, using materials supplied by Illumina. Verinata and Stanford sued, alleging that the Test infringed other patents. Illumina later acquired Verinata and accused Ariosa of breaching the supply agreement by failing to license Secondary Rights. Ariosa filed counterclaims, asserting invalidity and non-infringement; breach of contract; and breach of the covenant of good faith and fair dealing. The district court concluded that the counterclaims were not subject to compulsory arbitration. The Federal Circuit affirmed. The counterclaims depend on the scope determination of licensed intellectual property rights, which is expressly exempt from arbitration. View "Verinata Health, Inc. v. Ariosa Diagnostics, Inc." on Justia Law

Barkley filed suit against Gabriel Brothers, alleging breach of a master services agreement. In the alternative, Barkley alleged that Gabriel Brothers breached a subsequent agreement to pay "actual costs" and Gabriel Brothers was unjustly enriched. The court concluded that the district court did not err in granting summary judgment to Gabriel Brothers on Barkley’s breach-of-the-agreement claim because the alleged February 21, 2013, draft 2013 statement of work was not part of a written contract and the document did not contain the agreement’s incorporation clause. The court also concluded that Barkley’s damages claim was liquidated and that the district court should have awarded prejudgment interest; assuming that the district court’s statement constituted a sua sponte summary judgment on the actual-costs contract claim, the court concluded that Gabriel Brothers was given adequate notice and that the district court therefore did not err in granting partial summary judgment in Barkley's favor on that claim; the court rejected Gabriel Brothers's evidentiary challenges; the district court did not abuse its discretion by denying Gabriel Brothers's motion for judgment as a matter of law where a reasonable jury could find from the evidence that the parties had formed a contract for Gabriel Brothers to pay Barkley's actual costs; a jury could reasonably find that Barkley was entitled to $138,223.52; and, in regard to attorney's fees, the court agreed with the district court that neither party was the prevailing party. Accordingly, the court affirmed in part, reversed in part, and remanded for entry of an award of prejudgment interest. View "Barkley, Inc. v. Gabriel Brothers, Inc." on Justia Law

The Weitz Company, LLC, a general contractor, submitted a bid on a planned nursing facility. Weitz’s bid incorporated the amount of a bid submitted to Weitz by H&S Plumbing and Heating for the plumbing work and the heating, ventilation, and air conditioning parts of the job. The project owner awarded the project to Weitz, but H&S reneged on its bid. Weitz used other subcontractors to complete the project at greater expense. Weitz later sued H&S, claiming breach of contract and promissory estoppel. The court determined that the parties had not formed a contract but enforced H&S’s bid under promissory estoppel, awarding Weitz damages of $292,492. The Supreme Court affirmed the judgment and the amount of damages, holding that the district court did not err by entering a judgment for Weitz on its promissory estoppel claim and correctly measured Weitz’s damages. View "Weitz Co., LLC v. Hands, Inc." on Justia Law

Plaintiffs owned two convertible notes issued by SBAC. After converting the notes into equity and/or cash, plaintiffs filed a breach of contract claim, alleging that SBAC failed to pay the interest owed on the underlying notes following the conversion. Plaintiffs assert two identical causes of action: a breach of contract claim for each set of notes. The district court dismissed the claim with prejudice, holding that there was no reasonable interpretation of the underlying contract that entitled plaintiffs to both the benefits of the conversion and the final interest payment. The court held that SBAC’s refusal to pay plaintiffs the final interest payment did not constitute a failure to perform under the indentures. Accordingly, the court affirmed the district court's judgment. View "Orchard Hill Master Fund v. SBAC Corp." on Justia Law