Justia Contracts Opinion Summaries

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Plaintiff appealed the district court's dismissal of his discrimination claim against his former employer under Rule 12(b)(3) for improper venue. Defendants moved to dismiss on the basis of a clause contained in plaintiff's employment contract, which indicated that English law governed the agreement and that "any dispute arising hereunder shall be subject to the exclusive jurisdiction of the English courts." The court affirmed, holding that where a contract contained both a valid choice-of-law clause and a forum selection clause, the substantive law identified in the choice-of-law clause governed the interpretation of the forum selection clause, while federal law governed the enforceability of the forum selection clause; under English law, plaintiff's discrimination claims arose under the employment agreement, within the meaning of the forum selection clause; and the forum selection clause was enforceable under federal law. Accordingly, the court affirmed the judgment of the district court. View "Martinez v. Bloomberg LP" on Justia Law

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In 2006, Plaintiffs entered into a five-year oil and gas lease covering 47 acres in Ross Township, Ohio, and granting Chesapeake exclusive rights to “all oil and gas and their constituents” for $5.00 per mineral acre per year and a royalty on production. The lease provides for extension, if “Operations” are being “conducted on the Leasehold, or on lands pooled, unitized or combined with all or a portion of the Leasehold.” In 2011, Chesapeake submitted drilling-permit applications for property that did not include Plaintiffs’ property. Later, Chesapeake filed a “Declaration and Notice of Pooled Unit,” consisting of 21 properties, including Plaintiffs’ property, and declared that “operations and/or production … anywhere within the Unit shall be deemed to be operations and/or production on each separate tract sufficient to extend and maintain each included lease in the Unit.” It specified that production from the unit would be allocated among all leases in the unit proportional to the surface area of each lease. Plaintiffs sought a declaration that the lease expired; Chesapeake filed a counterclaim. The district court ruled in favor of Plaintiffs, concluding that Chesapeake’s actions did not extend the lease because the lease required that a permit application pertaining to the leased property or a property already unitized with the leased property, be filed before the expiration of the lease. The Sixth Circuit reversed and remanded. View "Henry v. Chesapeake Appalachia, LLC" on Justia Law

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In 1989, Alva Hickerson signed a ten-year promissory note payable to Vessels Oil and Gas Company. Under the terms of the note, the debt was due for full payment in 1999. The holder of the note sued in 2009 for collection of the full, unpaid amount of the debt, plus interest. The six-year statute of limitations would have barred suit after 2005, but the unpaid balance was restarted because a partial payment was deemed a promise to repay the remaining debt. The trial court allowed the laches defense, but the Court of Appeals ruled that Colorado's separation of powers doctrine prohibited a court form applying laches to shorten the filing period. Upon review of the matter, the Supreme Court held that the separation of powers doctrine did not bar a laches defense to a debt collection action filed within the original or restarted limitations period because laches does not conflict with the statute of limitation. View "Hickerson v. Vessels" on Justia Law

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When Rita Licata was transferred to a nursing facility operated by Defendant Rita’s son Salvatore signed an agreement with the facility to arbitrate disputes arising from Rita’s stay at the facility. Salvatore signed the agreement in the space provided for the resident’s “authorized representative.” Rita suffered personal injuries at the nursing facility resulting in her death. Salvator filed a complaint as administrator of Rita’s estate against Defendant for, inter alia, wrongful death and negligence. Defendant filed a motion to dismiss the complaint and to compel arbitration. The motion judge denied the motion, concluding that Salvatore lacked authority to execute the arbitration agreement on Rita’s behalf. The Supreme Court affirmed, holding (1) Salvatore lacked authority to execute the agreement on Rita’s behalf; and (2) the arbitration agreement did not otherwise bind Rita’s estate. View "Licata v. GGNSC Malden Dexter LLC" on Justia Law

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Barbara Johnson, in her capacity as her husband Dalton’s health care agent, signed an agreement with a nursing facility to arbitrate disputes arising from Dalton’s stay at the facility. While a resident of the facility, Dalton suffered burns and later died. The administrators of Dalton’s estate, filed a complaint against nursing home defendants and others, arguing that Barbara, as Dalton’s health care agent, did not have the authority to execute the arbitration agreement on his behalf. A superior court judge entered an order compelling mediation or arbitration. The Supreme Court vacated the order of the superior court, holding that a health care agent’s decision to enter into an arbitration agreement is not a health care decision under the health care proxy statute, and therefore, an agreement to arbitrate all claims arising out of a principal’s stay in a nursing facility does not bind the principal where the agreement was entered into solely by a health care agent under the authority of a health care proxy. View "Johnson v. Kindred Healthcare, Inc." on Justia Law

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Acting as receiver, the FDIC conveyed substantially all of WaMU's assets and liabilities to JPMorgan Chase, including certain long-term real-estate leases. At issue was whether the owners of the leased tracts could enforce the leases against Chase by virtue of the FDIC's conveyance. The court held that, in the interest of maintaining uniformity in the construction and enforcement of federal contracts, the landlords did not qualify as third-party beneficiaries. The court concluded, however, that the landlords have "standing" to prove the content of the Agreement and that the Agreement, properly construed, was a complete "assignment" sufficient to create privity of estate under Texas law. Accordingly, the court affirmed the judgment of the district court. View "Excel Willowbrook, L.L.C., et al. v. JPMorgan Chase Bank, N.A., et al." on Justia Law

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Plaintiff formed a contract with Imperial Premium Finance with regard to a financing arrangement for life insurance. Imperial later assigned its interest in the arrangement to Defendant, a limited partnership with its principal place of business in California. Plaintiff filed a petition for declaratory judgment in Iowa, claiming that the contract was not valid. The district court granted Defendant’s motion to dismiss for lack of personal jurisdiction, concluding that that contacts of Imperial, the assignor, did not impute to Defendant, the assignee. The Supreme Court reversed, holding (1) an assignor’s contacts with Iowa are not automatically imputed to the assignee for purposes of obtaining personal jurisdiction over the assignee, but this assignee is subject to personal jurisdiction in Iowa based on its own contacts with this forum through the contractual relationships it assumed by the assignment; and (2) Defendant in this case did have the required minimum contacts to subject Defendant to personal jurisdiction in Iowa. Remanded. View "Ostrem v. PrideCo Secure Loan Fund, LP" on Justia Law

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Plaintiff was a passenger who was injured while riding in the vehicle of his brother, who had coverage, including underinsured motorist (UIM) coverage, with Defendant. The policy contained a provision limiting the time to file an action to recover UIM benefits. Plaintiff brought this action to recover UIM benefits approximately one month after the deadline set forth in the policy. Defendant moved for summary judgment, claiming Plaintiff’s petition was untimely because he failed to file it within the policy’s two-year deadline. The district court denied the motion. The Supreme Court reversed, holding (1) Plaintiff, as an insured and a third-party beneficiary of the policy, did not have greater rights than the policyholder, and therefore, Plaintiff could not avoid the contractual time limitation unless the policyholder under similar circumstances would have been able to avoid it; and (2) the record did not demonstrate either that the policy’s time limit was unreasonable or that Defendant should be equitably estopped from enforcing it. Remanded for entry of summary judgment in favor of Defendant. View "Osmic v. Nationwide Agribusiness Ins. Co." on Justia Law

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This case involves a dispute between Bessemer Water Service (BWS) and Lake Cyrus Development Company, Inc. (LCDC) over a contract referred to as the "1998 water agreement." In "Bessemer I," the Supreme Court concluded that the trial court had exceeded its discretion in holding that the 1998 water agreement was a valid binding contract and in awarding LCDC $224,979.83 because the agreement was entered into violation of section 39-2-2 and was therefore void. On appeal, the Attorney General intervened and filed a complain seeking to recover payments BWS made to LCDC under the 1988 water agreement. The trial court ultimately entered a judgment in favor of the Attorney General (for the benefit of BWS). LCDC thereafter filed a postjudgment motion requesting the trial court alter, amend or vacate its judgment, or in the alternative, order a new trial. The trial court denied LCDC's motion; that denial was brought before the Supreme Court in this case. After review, the Supreme Court held the trial court's denial of LCDC's motion should have been reversed. The case was then remanded for further proceedings. View "Lake Cyrus Development Company, Inc. v. Bessemer Water Service " on Justia Law

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Pennsylvania National Mutual Casualty Insurance Company filed suit against Roger D. Allen, Homeland Vinyl Products, Inc., and Deric Miner, individually and as the personal representative of the estate of Jane Miner, seeking a declaratory judgment that it owed no duty of defense or indemnity to Allen for claims arising out of a fatal automobile accident that occurred in New Jersey. Allen was a New Jersey resident, and moved to dismiss the claims against him for lack of personal jurisdiction. In response, the trial court dismissed the case in its entirety. The insurance company appealed that decision. But finding no reversible error, the Supreme Court affirmed. View "Pennsylvania National Mutual Casualty Insurance Company v. Allen " on Justia Law