
Justia
Justia Contracts Opinion Summaries
ORP Surgical v. Howmedica Osteonics Corp.
In a dispute between ORP Surgical, LLC (ORP), and Howmedica Osteonics Corp., also known as Stryker, the United States Court of Appeals for the Tenth Circuit affirmed in part and reversed in part the district court's ruling. ORP and Stryker, both involved in medical device sales, had a successful business relationship under two sales contracts, the Joint Sales Representative Agreement (JSRA) and the Trauma Sales Representative Agreement (TSRA). The relationship soured when Stryker terminated the JSRA and hired one of ORP's sales representatives, and later, when ORP terminated the TSRA, Stryker hired a dozen of ORP's representatives. The district court ruled in favor of ORP, finding that Stryker breached the sales contracts and owed ORP damages, attorneys’ fees, sanctions, and costs. On appeal, Stryker challenged the rulings on the breach of contract claims, the attorneys’ fees award, and the nominal damages award. The Court of Appeals affirmed the district court’s holdings on the breach-of-contract claims but reversed its award of attorneys' fees under the indemnification provision. It also affirmed the award of nominal damages for Stryker's breach of the non-solicitation/non-diversion provision. The case was remanded for further proceedings. View "ORP Surgical v. Howmedica Osteonics Corp." on Justia Law
City of Elk River vs. Bolton & Menk, Inc.
The Minnesota Supreme Court reversed a decision by the Court of Appeals, ruling that the district court did not abuse its discretion in certifying an order as a final partial judgment under Minnesota Rule of Civil Procedure 54.02. The case arose from a dispute between the City of Elk River and Bolton & Menk, Inc. over a large construction contract for a wastewater treatment plant improvement project. The City sued Bolton for alleged breach of contract and professional negligence. Bolton responded by filing a third-party complaint against three other parties involved in the contract. The district court dismissed Bolton's third-party complaint and Bolton sought to have the dismissal order certified as a final judgment for immediate appeal. The district court granted this certification, but the Court of Appeals dismissed Bolton's appeal, determining that the district court had abused its discretion in certifying the order as a final judgment. The Minnesota Supreme Court disagreed, finding that the district court had offered valid reasons for its certification, including that the third-party claims presented distinct issues from the principal claims and that the case was in its early stages at the time of certification. The Supreme Court therefore reversed the decision of the Court of Appeals and remanded the case for further proceedings. View "City of Elk River vs. Bolton & Menk, Inc." on Justia Law
Snap! Mobile v. Vertical Raise
Two online fundraising companies, Snap! Mobile, Inc. ("Snap") and Vertical Raise, LLC ("Vertical Raise"), were involved in a dispute. Snap accused Vertical Raise and its CEO, Paul Landers, of poaching its sales representatives and customers, which violated non-compete and confidentiality provisions in the former sales representatives’ employment agreements with Snap. The trial court granted Snap a preliminary injunction to prevent further violations and partially ruled in Snap's favor on some claims. A jury trial on damages resulted in an award of $1,000,000 to Snap. However, the trial court increased the award to $2,310,021. Both parties appealed. The Supreme Court of Idaho affirmed the trial court's award of discretionary costs for expert witness fees but reversed the trial court’s order granting an additur or new trial. The Supreme Court ordered the trial court to enter a judgment consistent with the original jury award. The Supreme Court also reversed the trial court’s decision granting Snap a permanent injunction. In a separate contempt proceeding, the Supreme Court affirmed the contempt court's decision to dismiss contempt charges against Vertical Raise and Paul Croghan, a former Snap employee. The contempt court had determined the preliminary injunction was vague, overbroad, and unenforceable. View "Snap! Mobile v. Vertical Raise" on Justia Law
RODRIGUEZ v. SAFECO INSURANCE COMPANY OF INDIANA
This case involves a dispute between a homeowner, Mario Rodriguez, and his insurance company, Safeco Insurance Company of Indiana. After a tornado damaged Rodriguez's home, Safeco issued a payment of $27,449.88, which Rodriguez accepted. Rodriguez's counsel then informed Safeco that it owed an additional $29,500 and threatened to sue. Rodriguez sued Safeco, bringing several claims, including breach of contract and statutory claims under the Insurance Code. Safeco invoked the insurance policy’s appraisal provision and subsequently issued a check to Rodriguez for $32,447.73, which it viewed as full payment of the appraisal amount due under the policy. Safeco also paid an additional $9,458.40, which it claimed would cover any interest possibly owed on the appraised amount.The Supreme Court of Texas was asked to answer a certified question from the United States Court of Appeals for the Fifth Circuit: “In an action under Chapter 542A of the Texas Prompt Payment of Claims Act, does an insurer’s payment of the full appraisal award plus any possible statutory interest preclude recovery of attorney’s fees?” The Supreme Court of Texas held that the answer is yes. When an insurer has fully discharged its obligations under the policy by voluntarily paying the appraised amount, plus any statutory interest, in compliance with the policy’s appraisal provisions, section 542A.007 of the Insurance Code prohibits an award of attorney’s fees. This is because there is no remaining “amount to be awarded in the judgment to the claimant for the claimant’s claim under the insurance policy,” which means no attorney’s fees are available under section 542A.007(a)(3)’s formula. View "RODRIGUEZ v. SAFECO INSURANCE COMPANY OF INDIANA" on Justia Law
Land v. IU Credit Union
The Indiana Supreme Court heard a case involving a dispute between Tonia Land and the IU Credit Union (IUCU). When Land became a customer at the credit union, she was given an account agreement that could be modified at any time. Later, when she registered for online banking, she accepted another agreement that allowed the IUCU to modify the terms and conditions of the services. In 2019, the IUCU proposed changes to these agreements, which would require disputes to be resolved through arbitration and prevent Land from initiating or participating in a class-action lawsuit. Land did not opt out of these changes within thirty days as required, which, according to the IUCU, made the terms binding. However, Land later filed a class-action lawsuit against the credit union, which attempted to compel arbitration based on the addendum.The court held that while the IUCU did provide Land with reasonable notice of its offer to amend the original agreements, Land's subsequent silence and inaction did not result in her assent to that offer, according to Section 69 of the Restatement (Second) of Contracts. The credit union petitioned for rehearing, claiming that the court failed to address certain legal authorities and arguments raised on appeal and in the transfer proceedings.Upon rehearing, the court affirmed its original decision, rejecting the credit union's arguments. However, the court also expressed a willingness to consider a different standard governing the offer and acceptance of unilateral contracts between businesses and consumers in future cases. The court found no merit in the credit union's arguments on rehearing and affirmed its original opinion in full. View "Land v. IU Credit Union" on Justia Law
Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC
In this case, Epochal Enterprises, Inc., also known as Divine Orchids, entered into a commercial lease agreement with LF Encinitas Properties, LLC and Leichtag Foundation. The lease included a limitation of liability clause which stated that the defendants were not personally liable for any provisions of the lease or the premises, and the plaintiff waived all claims for consequential damages or loss of business profits. After the plaintiff sued the defendants, a jury found the defendants liable for premises liability and negligence.The jury awarded the plaintiff damages for lost profits and other past economic loss. However, the trial court granted the defendants’ motion for judgment notwithstanding the verdict (JNOV), reasoning that the lease agreement’s limitation of liability clause prevented the plaintiff from recovering the economic damages the jury awarded.The Court of Appeal, Fourth Appellate District Division One State of California, reversed the order granting JNOV in the defendants' favor, finding that the limitation of liability clause did not bar plaintiff’s recovery of damages. The court reasoned that the jury's award of damages necessarily implied a finding of gross negligence on the part of the defendants, which would be outside the scope of the indemnification clause. Further, the court held that the limitation of liability clause was void to the extent that it sought to shield the defendants from liability for their violations of the Health and Safety Code, as it violated public policy under Civil Code section 1668.On the defendants' cross-appeal regarding the damages award, the court affirmed the denial of the defendants' motion for partial JNOV, finding that substantial evidence supported the damages award. The court concluded that the jury could reasonably interpret the term "other past economic loss" on the verdict form as a different form of lost profits, and that the evidence presented to the jury provided a reasonable basis for calculating the amount of the plaintiff's lost profits. View "Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC" on Justia Law
Roe v. St. John’s University
This case is about a dispute between Richard Roe and St. John’s University (SJU) and Jane Doe. Roe, a male student at SJU, was accused of sexually assaulting two female students, Doe and Mary Smith, on separate occasions. SJU's disciplinary board found Roe guilty of non-consensual sexual contact with both Doe and Smith and imposed sanctions, including a suspension and eventual expulsion. Roe then sued SJU, alleging that his rights under Title IX of the Education Amendments of 1972 and state contract law had been violated. He also sued Doe for allegedly defaming him in an anonymous tweet accusing him of sexual assault. The United States District Court for the Eastern District of New York dismissed Roe's Title IX and state law claims, and declined to exercise jurisdiction over his defamation claim. On appeal, the United States Court of Appeals for the Second Circuit affirmed the district court's decision, holding that Roe's complaint failed to state a plausible claim of sex discrimination under Title IX. The court found that, while Roe had identified some procedural irregularities in SJU's disciplinary proceedings, these were not sufficient to support a minimal plausible inference of sex discrimination. Furthermore, the court ruled that Roe's hostile environment claim was fatally deficient, as the single anonymous tweet at the center of his claim was not, standing alone, sufficiently severe to support a claim of a hostile educational environment under Title IX.
View "Roe v. St. John's University" on Justia Law
Hassett v. Secor’s Auto Center, Inc.
In this Connecticut case, the plaintiff, Erin C. Hassett, purchased a used motor vehicle from the defendant, Secor’s Auto Center, Inc., and experienced mechanical problems shortly after the purchase. The plaintiff claimed the defendant breached its warranty by refusing to make necessary repairs and, as a result, she revoked her acceptance of the vehicle. The plaintiff brought legal action against the defendant, alleging breach of warranty and revocation of acceptance under statute § 42a-2608. The jury found in favor of the plaintiff, including on her revocation of acceptance claim, awarding her $11,000 in damages.The plaintiff then moved for additur, requesting a refund of the full purchase price of the vehicle in addition to the $11,000 award. The trial court denied the motion, and the Appellate Court upheld the trial court’s decision. The plaintiff appealed to the Supreme Court of Connecticut, arguing that she was entitled to the $11,000 award plus a refund of the full purchase price because the jury found in her favor on her revocation of acceptance claim.The Supreme Court affirmed the Appellate Court’s decision, concluding that the trial court had not abused its discretion in denying the plaintiff’s motion for additur. The court found that the issue of revocation of acceptance damages had been submitted to the jury as a matter of disputed fact. The jury's award of $11,000 was determined to represent revocation of acceptance damages equivalent to its determination of "so much of the price as had been paid" in accordance with § 42a-2-711 (1). The plaintiff's argument that the court should have determined the proper measure of revocation of acceptance damages post-verdict was rejected. The court found that the plaintiff's dissatisfaction with the verdict did not constitute grounds to award her the full purchase price of the vehicle as a matter of law. View "Hassett v. Secor's Auto Center, Inc." on Justia Law
Perl v. Grant
In this case, the Supreme Court of the State of Montana addressed a dispute over a settlement agreement regarding the sale of a house and the subsequent release of construction-related claims. Daniel Perl and Sandra Perl (collectively, "the Perls"), who are the plaintiffs and appellants, entered into discussions with Christopher Grant and other related parties (collectively, "the Grants"), who are the defendants and appellees. The Perls had purchased a home from the Grants and later became dissatisfied with the construction quality. After negotiations, the parties, through text messages, appeared to reach an agreement wherein the Grants would buy back the property for $2.8 million, and the Perls would release all claims related to the house's construction. However, the Perls later objected to several terms in the formal documents prepared by the Grants' attorney and disputed the existence of an enforceable settlement agreement.The lower court, the Eleventh Judicial District Court, Flathead County, granted the Grants' motion for summary judgment and denied the Perls' cross-motion for partial summary judgment. The lower court held that there was indeed an enforceable settlement agreement.The Supreme Court of the State of Montana affirmed the lower court's decision. The Supreme Court found that the parties' text messages satisfied the statute of frauds and constituted an enforceable settlement agreement. The court pointed out that the text messages contained all the essential elements of a contract, including the parties, the subject matter, a reasonably certain description of the property, the purchase price, and mutual assent. The court also found that the Perls' objections to non-material terms in the formal documents did not invalidate the settlement agreement. Therefore, the Supreme Court affirmed the lower court's decision to grant the Grants' motion for summary judgment and deny the Perls' cross-motion for partial summary judgment. View "Perl v. Grant" on Justia Law
Tremblay v. Bald
In the Supreme Court of New Hampshire, the case involved Gail C. Tremblay, the plaintiff, and the Estate of Donald D. Bald, the decedent, and Allan Bald, the defendants. Tremblay and Donald Bald were engaged and lived together for over ten years but never married. During their relationship, they executed several agreements stating that if they were living together at the time of Bald's death, Tremblay would receive certain properties. Upon Bald's death, Tremblay initiated legal action, arguing that the agreements were enforceable contracts. The defendants disagreed, asserting that the agreements lacked consideration, and the Superior Court sided with the defendants.Upon review, the Supreme Court of New Hampshire reversed the lower court's decision, concluding that the agreements are enforceable. The court stated that a valid enforceable contract requires an offer, acceptance, consideration, and a meeting of the minds. While the defendants argued that the agreements lacked consideration because the couple was already living together when the agreements were executed, the court disagreed. The court held that the plaintiff's continued cohabitation constituted a benefit to the decedent, thereby satisfying the requirement for consideration. Furthermore, the court stated that either party's ability to end the relationship prior to the decedent's death did not affect the enforceability of the agreements. As a result, the court reversed the lower court's ruling and remanded for further proceedings. View "Tremblay v. Bald" on Justia Law