Justia Contracts Opinion Summaries

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Plaintiff Robert Foti sold most of his fuels business to defendant James Kurrle and agreed to sell gasoline to defendant through a retained wholesale distributorship. When the business relationship soured, plaintiff sued defendant for one month's nonpayment of gasoline and other claims. Defendant counterclaimed for breach of contract, breach of the covenant of good faith and fair dealing, and violation of the Vermont Consumer Fraud Act (CFA), all stemming from the original purchase of plaintiff's business. Defendant appealed the trial court's judgments as a matter of law on the counterclaims in favor of plaintiff, specifically the CFA counterclaim, arguing that the court should not have considered plaintiff’s motion because plaintiff did not raise the argument that the CFA did not cover the transaction until after trial, and that the court erred in holding that the transaction was not "in commerce." Furthermore, defendant appealed the court’s ruling on the breach of contract and breach of the covenant of good faith and fair dealing counterclaims arising from the non-competition provision. The Supreme Court affirmed in part and reversed in part. The Court concluded, as the trial court did, that the CFA did not apply to this transaction as a matter of law. The Court agreed with defendant that the trial court should have sent the case to the jury on the contract claims. View "Foti Fuels, Inc. v. Kurrle Corporation" on Justia Law

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In 1994, Norem purchased a “Flexible Premium Variable Life Insurance Policy” from Lincoln Benefit. With variable life insurance, part of the premium is allocated to the insurer’s investment funds, called subaccounts. Policyholders may move their investments within the subaccounts and the death benefit, which is guaranteed not to fall below a certain amount. With variable universal life, the policyholder may easily invest and alter insurance coverage. The policy is comprised of the policy value, which represents the investment component, and its net amount at risk, which represents the insurance component. Norem purchased his policy because he wanted both life insurance and an investment vehicle for the proceeds from the sale of his ownership of a medical business. The policy has a “cost of insurance” (COI) charge deducted monthly from the policy. The policy explains how the COI rate is calculated. Norem filed a putative class action on behalf of himself and other similarly situated policyholders, claiming that Lincoln Benefit breached the terms of its policies in its method of calculating the COI rate.Before deciding on class certification, the district court granted summary judgment to Lincoln Benefit, concluding that its calculation of COI rates did not breach the contract. The Seventh Circuit affirmed. View "Norem v. Lincoln Benefit Life Co." on Justia Law

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Egg Harbor Township authorized construction of a Community Center and, as required by N.J.S. 52:38-3 adopted a project labor agreement (PLA). All contractors working on the project were required to sign the PLA, which contained a “supremacy provision,” providing that the PLA, with the local Collective Bargaining Agreements, superseded any national agreement, local agreement or other collective bargaining agreement (CBA). Sambe, the general contractor, signed the PLA. Sambe subcontracted roofing work to Donnelly, which signed the PLA and agreed that any party it selected to perform work would also be required to sign the PLA. Donnelly selected the Carpenters Union to perform the work, even though it was not a signatory to the PLA, apparently because the two were parties to a CBA. Sheet Metal Workers protested. The NLRB assigned the work to Carpenters and later concluded that Sheet Metal violated the NLRA, 29 U.S.C. 185, by maintaining a section 301 suit against Donnelly and Sambe following that decision. In the parallel litigation district court granted summary judgment on Sheet Metal’s breach of contract claim. The Third Circuit granted the NLRB’s petition for enforcement of its order; vacated the breach of contract judgment against Donnelly and Sambe; and remanded the with directions to enter judgment in favor of Donnelly and to conduct further proceedings on the claim against Sambe. View "Sheet Metal Workers Int'l Ass'n v. E.P. Donnelly, Inc." on Justia Law

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After Mary Lou Fox died, Plaintiff, Mary Lou's daughter and the administratrix of Mary Lou's estate, sued Mary Lou's former husband, Robert Fox. Plaintiff alleged that Mary Lou jointly owned 960 acres of farmland with Robert, that Robert deprived Mary Lou of her ownership interest in the land, and that Plaintiff was thereby deprived of an inheritance from Mary Lou. The circuit court granted summary judgment to Robert, concluding that Mary Lou had no ownership interest in the 960 acres. The Supreme Court affirmed, holding that each cause of action brought by Plaintiff failed because Mary Lou had no claim to a right of ownership in the 960 acres and Plaintiff had no authority supporting her claims. View "Niesche v. Wilkinson" on Justia Law

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Christine and David Colburn leased property from Robert Hartshorn and agreed to care for Hartshorn's cattle. Neither the terms of the cattle care agreement or the lease agreement were reduced to writing. After a dispute, the Colburns served on Hartshorn an agister's lien for caring for Hartshorn's cattle. The Colburns also brought an action to recover amounts due for their care of Hartshorn's cattle and to foreclose the lien. Ultimately, the Colburns received a court order to sell the calves. The circuit court ruled that the Colburns were entitled to one half the net calf sale proceeds from the sale but found the agister's lien invalid under the terms of the parties' implied contract because the cattle were cared for on Hartshorn's land and not the Colburns' land. The Supreme Court reversed, holding that nothing in the state's laws governing agister's liens defeats their validity when cattle are entrusted to a caretaker on the cattle owner's land. Remanded. View "Colburn v. Hartshorn" on Justia Law

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Plaintiffs, former employees of a school district (District), were members of a collective bargaining unit. One plaintiff retired while the 1999-2003 collective bargaining agreement (CBA) was in effect, and the other plaintiffs retired under the 2003-2007 CBA. In 2009, the District informed Plaintiffs that their co-pays would be governed under the terms of the 2007-2012 CBA, resulting in an increase from their previous co-pay charges. Plaintiffs filed this action for breach of contract, alleging that by increasing their co-pays, the District violated the terms of the CBAs in effect when Plaintiffs retired. Supreme Court granted summary judgment for Plaintiffs. The Appellate Division reversed, concluding that the contract did not specify that an equivalent level of coverage would continue during retirement. The Court of Appeals affirmed the order of the Appellate Division as modified, holding (1) the plain meaning of the contract unambiguously established that Plaintiffs had a vested right to the "same coverage" during retirement as they had when they retired; and (2) because an issue of fact remained as to whether the parties intended for the right to the "same coverage" to preclude any modifications to prescription co-pays, it was necessary to remit the case for a hearing on the issue. View "Kolbe v. Tibbetts" on Justia Law

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Johnny Washington died after his 1994 Ford Explorer was struck by another vehicle driven by Karah Williams and rolled over twice. Johnny suffered a fatal head injury when his head exited the vehicle during the rollover and was crushed. Paulette Washington, Johnny's wife, filed a complaint against Ford Motor Company, asserting claims for, among other things, negligence, strict liability, failure to warn, and breach of warranties. A jury returned a verdict finding that both Ford and Williams, equally, had been the proximate cause of Johnny's death. Following a second remand, the circuit court entered an order awarding judgment against Ford in the amount of $7,152,125. The Supreme Court affirmed in part and reversed in part, holding that the circuit court (1) did not err in excluding evidence of Johnny's nonuse of a seat belt; (2) did not err in determining that the defective-glass claim was not preempted by Federal Motor Vehicle Safety Standard 205; (3) did not err in denying Ford's motion for judgment notwithstanding the verdict on the issue of punitive damages; (4) did not err in failing to reduce the jury's compensatory-damages award; and (5) erred in including a nunc pro tunc provision for postjudgment-interest purposes. View "Ford Motor Co. v. Washington" on Justia Law

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The Standard Fire Insurance Company appealed a court of appeals' decision that reversed the trial court's grant of summary judgment in its favor, and finding respondents Thomas, Debra, and Christopher were entitled to stack underinsured motorist (UIM) coverage despite an exclusion in Standard Fire's policy purporting to limit an insured's ability to stack such coverage when the vehicles insured under the subject policy were not involved in the accident. After review of the trial and appellate court records, the Supreme Court found no reversible error and affirmed the appellate court's decision. View "Carter v. Standard Fire Insurance" on Justia Law

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The issue before the Supreme Court in this matter centered on whether defects in load-bearing walls were a result of "any defect" due to noncompliance with the buildings standards subject to a one year peremptive period, or whether they constituted a "major structural defect" subject to a peremptive period of five years. This case stemmed from damages caused by a home flooding. The District Court found the defects in the four exterior load-bearing walls constituted a major structural defect under the Act to which the five-year warranty period applied and awarded plaintiff Barbara Shaw damages. The Court of Appeal reversed, finding the plaintiff's claim was for a defect in workmanship subject to a one year peremptive period. After review, the Supreme Court reversed, finding the record supported the failure of the load-bearing walls affected the "load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable," as provided by La. Rev. Stat. 9:3143. Thus, it constituted a major structural defect and the five-year warranty applied. View "Shaw v. Acadian Builders & Contractors, LLC" on Justia Law

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Benjamin and Keri Fidelak filed a petition for damages in Caddo Parish district court (a court of proper venue) against Foreign & Classic Auto Centre, Inc., a small, independent repair shop in Shreveport, which specialized in the repair of high end foreign automobiles. The Fidelaks claimed that Foreign & Classic sold them a defective engine for their 2004 Land Rover. In response, Foreign & Classic raised numerous defenses and asserted a third party demand against British Parts International (BPI) for reimbursement and indemnification because BPI sold the engine to Foreign & Classic. BPI is headquartered in Houston, Texas, and conducts business nationwide. The issue before the Supreme Court in this matter centered on the enforceability of a forum selection clause. After reviewing the record and the applicable law, the Court reversed the judgments of the lower courts and held that the forum selection clause at issue here was not enforceable because a third party defendant may not object to venue where the principal action has been instituted in the proper venue. View "Fidelak v. Holmes European Motors, LLC" on Justia Law