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Justia Contracts Opinion Summaries
Glassie v. Doucette
This case involves a dispute over the will of the late Donelson C. Glassie. The plaintiff, Marcia Sallum Glassie, is the testator’s former wife. She appealed from a Superior Court judgment in favor of the defendant, Paul Doucette, in his capacity as Executor of the Estate of Donelson C. Glassie. The Superior Court affirmed an order of the Newport Probate Court denying the plaintiff’s petition for leave to file a claim out of time against the estate. The denied claim would have alleged a breach of contract, based on the plaintiff’s contention that a key provision of the testator’s will violated the terms of the couple’s property-settlement agreement.The plaintiff and the testator were married in 1986, had three children, and were divorced in 1993. According to their property-settlement agreement (PSA), the testator was to execute a will that would not only treat his obligations under the PSA as “a claim against any assets in [his] [e]state” but also “specifically bequest to [plaintiff] an amount equal to said obligations.” A dispute soon unfolded over what the PSA required of the testator’s will.In 2017, the Supreme Court of Rhode Island vacated the Superior Court judgment on multiple grounds. Relevant to the present appeal, the court determined “that the disputed provision in the will is ambiguous” because it “does not clearly specify under what circumstances plaintiff is to receive the sum of $2,000,000 or the circumstances under which she is to receive such other amount necessary to satisfy all of [the testator’s] remaining obligations.” Because “a proper resolution of this matter require[d] factfinding and conclusions of law with respect to [the] testator’s intent,” the court remanded the case to the Superior Court.Back in Superior Court, the plaintiff sought to amend her complaint with a claim for breach of contract. The Superior Court denied plaintiff’s motion to amend her complaint, in part because she did not first submit the claim to the probate court, and also because the applicable statute of limitations had expired. The plaintiff thereafter filed a petition in the Newport Probate Court for leave to file a claim out of time and, after the court denied her petition, she appealed that denial to the Superior Court.The Supreme Court of Rhode Island affirmed the judgment of the Superior Court, concluding that the plaintiff’s failure to timely present her claim for breach of contract was not due to excusable neglect and, therefore, her claim must be denied. View "Glassie v. Doucette" on Justia Law
The University of Rhode Island Board of Trustees v. Hellenic Society Paideia-Rhode Island Chapter
This case involves a dispute between the University of Rhode Island Board of Trustees and the University of Rhode Island (plaintiffs) and the Hellenic Society Paideia – Rhode Island Chapter (defendant). The dispute arose from a breach-of-contract related to the construction of a Center for Hellenic Studies at the University of Rhode Island. The plaintiffs and defendant had entered into a Ground Lease Agreement that established the parameters for this construction project. The defendant failed to construct the Center for Hellenic Studies within the agreed timeframe, leading to litigation.The Superior Court stayed the litigation pending arbitration, as per the mandate. The arbitration proceedings were held, and the arbitrator issued a decision. The arbitrator found that the defendant had breached the lease agreement by failing to construct the Center for Hellenic Studies within the requisite timeframe, among other failures. The arbitrator also determined that a joint venture did not exist between the parties. The arbitrator directed the defendant to reimburse the plaintiffs for the cost and expenses that they will incur in their efforts to restore the construction site to its prior status.The plaintiffs filed a motion in Superior Court to confirm the arbitration award, which the defendant objected to and cross-moved to vacate. The trial justice granted the plaintiffs' motion to confirm the award and denied the defendant's cross-motion to vacate. The trial justice declined to review the arbitrator’s determination that the plaintiffs properly terminated the lease agreement and rejected the defendant’s objection to the arbitral remedy.The Supreme Court of Rhode Island affirmed the judgment of the Superior Court. The court concluded that the arbitrator's award drew its essence from the parties' lease agreement and lacked any indication that the arbitrator manifestly disregarded the law. The court rejected the defendant's arguments that the arbitrator had exceeded his authority. The court affirmed the trial justice's order confirming the arbitration award. View "The University of Rhode Island Board of Trustees v. Hellenic Society Paideia-Rhode Island Chapter" on Justia Law
Axelrod v. Reid Limited Partnership
This case involves a dispute between two neighboring landowners, David W. Axelrod, as Trustee of the David W. Axelrod Family Trust, and Reid Limited Partnership (RLP) and Michael Reid, an individual. The dispute arose from a settlement agreement concerning the real property and easement rights of the two parties. Axelrod purchased a property in Teton County in 2003, which was not accessible by road. Reid, who owned and operated an organic dairy farm nearby, preferred Axelrod to build onto an existing dirt road on Reid's property rather than using two easements provided in Axelrod's deed. In 2004, Axelrod built onto the existing dirt road, referred to as the "RLP Easement." However, the relationship between Axelrod and Reid began to sour in 2011, leading to a series of disputes and legal actions.The district court initially concluded that Axelrod did not have an express easement for use of the RLP Easement, but he did have an easement by estoppel. The parties then executed a settlement agreement and stipulated to dismiss the suit. However, disagreements over the implementation of the settlement agreement led to further litigation. The district court granted Axelrod's motion for summary judgment, concluding that Reid had failed to properly support any assertion of fact or address the assertions of fact in Axelrod's motion for summary judgment.On appeal, the Supreme Court of the State of Idaho affirmed in part, vacated in part, and remanded the case for further proceedings. The court affirmed the grant of summary judgment against Reid individually and affirmed the district court's judgment dismissing RLP's counterclaims for conversion and violation of the implied covenant of good faith and fair dealing. The court also affirmed the judgment of the district court on Axelrod's breach of contract claim and the judgment of the district court refusing to allow amendment of the pleadings to add RFLP as a party. However, the court vacated the judgment of the district court dismissing RLP's trespass claim. The court also vacated the attorney fee award as against RLP and remanded for further proceedings consistent with this opinion. View "Axelrod v. Reid Limited Partnership" on Justia Law
Arnold v. O’Malley
The case revolves around a dispute over attorney's fees in a Social Security disability benefits case. The plaintiff, Christian Arnold, was represented by the law firm Binder & Binder. After Arnold was determined to be disabled and entitled to past-due benefits, the law firm requested attorney's fees under 42 U.S.C. § 406(b), based on a contingency fee agreement Arnold had signed. However, the district court reduced the requested fees by nearly sixty percent, arguing that the full request would result in a "windfall" for the law firm, which was prohibited by statute. Binder & Binder appealed this decision.The case was initially heard by an administrative law judge (ALJ) who concluded that Arnold was not disabled. Arnold appealed this decision to the district court, which remanded the case back to the ALJ. On remand, the ALJ ruled in Arnold's favor, and the Social Security Administration issued a Notice of Award to Arnold for past-due benefits. Binder & Binder then moved for attorney's fees in the district court under 42 U.S.C. § 406(b), based on their contingency fee agreement with Arnold. The district court, however, reduced the requested fees.The United States Court of Appeals for the Seventh Circuit reviewed the case and concluded that the district court had abused its discretion by not basing its analysis primarily on the contingency agreement before considering the reasonableness of the request. The Court of Appeals vacated the district court's decision and remanded the case for further proceedings consistent with its opinion. The court emphasized that the contingency fee agreement should be the starting point for determining reasonableness under § 406(b), and any reduction should be justified based on relevant factors such as the claimant's satisfaction with their attorney's representation, the attorney's expertise and efforts expended, and the uncertainty of recovery and risks of an adverse outcome. View "Arnold v. O'Malley" on Justia Law
Kuhn vs. Dunn
The case revolves around a dispute over a family farm in Minnesota. Richard and Paulette Dunn entered into a contract for deed with their son, Rory, for the sale of their family farm. The contract stipulated that Rory could not sell, assign, or otherwise transfer his interest in the farm without the Dunns' written consent. However, Rory died two years later without a will, and his interest in the farm was transferred to his young son by intestate succession. Jeffrey Kuhn, the personal representative of Rory’s estate, intended to divide the property and sell a portion of the farm on the open market. The Dunns responded by cancelling the contract for deed, arguing that the intestate transfer of Rory’s interest to his son without their consent was a breach of the contract.The district court ruled in favor of the Dunns, stating that the intestate transfer of Rory’s interest in the farm violated the consent-to-transfer provision and materially breached the contract for deed. However, the court of appeals reversed this decision, concluding that the intestate transfer of Rory’s estate as a result of Rory’s inaction did not violate the consent-to-transfer provision.The Minnesota Supreme Court was asked to decide whether an intestate transfer of an interest in a family farm breaches a consent-to-transfer provision in a contract for deed. The court held that the intestate transfer of Rory’s interest in the farm violated the consent-to-transfer provision and that this violation was a material breach of the contract for deed. Therefore, the court reversed the decision of the court of appeals. View "Kuhn vs. Dunn" on Justia Law
D& M Roofing & Siding v. Distribution, Inc.
This case involves a dispute between D&M Roofing and Siding, Inc. (D&M), a roofing company, and Distribution, Inc., the owner of a warehouse. D&M had entered into a contract with Distribution to repair hail damage to the roof of Distribution's warehouse. However, Distribution later decided to use a different contractor for the repairs. D&M sued Distribution for breach of contract and unjust enrichment, claiming damages based on a cancellation fee provision in the contract. The district court found that the contract was enforceable and that Distribution had breached it. However, it also found that D&M was not entitled to any damages because it had not performed any work under the contract.The district court's decision was based on D&M's admission that its breach of contract damages were limited to those under the cancellation fee provision in the contract. The court found that under the clear and unambiguous language of the provision, D&M was only entitled to a cancellation fee of 20 percent of the "work done" by D&M. Since D&M had not performed any work, it was not entitled to the cancellation fee. The court granted summary judgment in favor of Distribution on D&M's unjust enrichment claim, explaining that an enforceable contract displaces such a claim.D&M later filed a second motion for summary judgment, this time alleging lost profits as the measure of damages for the breach of contract claim. The district court construed the motion as a motion to reconsider. The court explained that even though its prior order did not use the word "dismissed," it had disposed of the whole merits of the case and left nothing for the court's further consideration. The court denied D&M's motion and granted a cross-motion by Distribution for summary judgment. D&M appealed, but the appeal was dismissed for lack of jurisdiction because the court had not yet issued a final order or rendered a judgment. View "D& M Roofing & Siding v. Distribution, Inc." on Justia Law
Liebel v. Liebel
The case involves a dispute between Julie and Gary Liebel, who married in 2010 and divorced in 2022. Prior to their marriage, they had signed a premarital agreement stating that each party's assets would remain separate and under their sole control, even after the marriage. The agreement also stated that neither party would acquire any interest in the other's property due to the marriage. The couple divorced on the grounds of adultery, and the circuit court applied the premarital agreement in dividing their assets. Julie appealed, arguing that the court erred in applying the agreement to the property division in the divorce and abused its discretion in classifying and distributing the parties’ property.The circuit court had found the premarital agreement to be valid and enforceable in the context of divorce. It also found that the agreement unambiguously governed the division of property in the event of divorce. The court treated the marital home, which was held jointly, as marital property, but most of the remaining property was treated as nonmarital. Gary received the bulk of the nonmarital property valued at $713,705. Upon division of the net marital assets, Julie was awarded marital property valued at $35,482, while Gary received marital property valued at $134,535. The court ordered Gary to make a cash equalization payment to Julie in the amount of $49,526, less $2,062.80 in attorney fees awarded to Gary for defending a protection order that the court determined Julie filed maliciously.The Supreme Court of the State of South Dakota affirmed the lower court's decision. It found that the premarital agreement unambiguously provided that neither spouse may claim an interest in the separate property of the other, whether it was acquired before or during the marriage. This could only be understood to mean that the other spouse would not obtain any interest in separately owned property under any circumstances, including divorce, unless mutually agreed to by creating a joint tenancy in any property. The court also found no abuse of discretion in the lower court's division of property. View "Liebel v. Liebel" on Justia Law
Davis v. Blast
This case involves a dispute over a real estate and construction contract. The plaintiffs, Myles Davis and Janelle Dahl, sued their homebuilder, Blast Properties, Inc., and Tyler Bosier, alleging breach of contract, fraud, and violations of the Idaho Consumer Protection Act. The plaintiffs sought to amend their complaint to include a prayer for relief seeking punitive damages. The U.S. District Court granted the plaintiffs' motion to amend their complaint, but certified a question to the Supreme Court of the State of Idaho due to inconsistencies in the interpretation of Idaho Code section 6-1604(2), which prohibits claimants from including a prayer for relief seeking punitive damages in their initial pleading.The U.S. District Court asked the Supreme Court of the State of Idaho to determine the proper means a trial court must apply when considering a motion to amend a pleading to include a prayer for relief seeking punitive damages pursuant to Idaho Code section 6-1604(2). The Supreme Court of the State of Idaho rephrased the question to clarify the obligations of a trial court under Idaho Code section 6-1604(2) when ruling upon a motion to amend a complaint or counterclaim to include a prayer for relief seeking punitive damages.The Supreme Court of the State of Idaho held that section 6-1604(2) requires the trial court to conduct a careful examination of the evidence submitted by the moving party in support of its motion to amend and the arguments made to determine whether there is a "reasonable probability" that the evidence submitted is: (1) admissible at trial; and (2) "sufficient" to support an award of punitive damages. The word "sufficient" means that the claim giving rise to the request for punitive damages must be legally cognizable and the evidence presented must be substantial. The court clarified that the clear and convincing evidentiary standard is the standard for a jury, not the trial court when it is ruling on a motion to amend a pleading to include a prayer for relief seeking punitive damages. View "Davis v. Blast" on Justia Law
INTERNATIONAL DEVELOPMENT SOLUTIONS, LLC v. SECRETARY OF STATE
International Development Solutions, LLC (IDS), a security service contractor, entered into a contract with the Department of State for the provision of personal protection services in Afghanistan. IDS was initially a joint venture between ACADEMI Training Center, Inc. (ATCI) and Kaseman, LLC. However, ATCI later purchased all of Kaseman, LLC’s membership interest in IDS, making IDS a sole member LLC with ATCI as the sole member and owner. IDS then sold and transferred all of its interests in all of its contracts, subcontracts, and all property and assets to ATCI. ATCI requested the State to recognize it as the successor-in-interest to IDS’s contract through a formal novation agreement, but the State denied the request.The Civilian Board of Contract Appeals denied IDS’s consolidated appeal seeking cost-reimbursement of tax payments made by related corporate entities. The Board found no entitlement to reimbursement as IDS did not present evidence that tax amounts paid were costs incurred by IDS, the contractor, rather than by entities higher in IDS’s ownership chain.The United States Court of Appeals for the Federal Circuit affirmed the Board’s decision. The court found substantial evidence supporting the Board’s finding that IDS did not present evidence that tax amounts paid were costs incurred by IDS, the contractor, rather than by entities higher in IDS’s ownership chain. Therefore, IDS was not entitled to reimbursement. View "INTERNATIONAL DEVELOPMENT SOLUTIONS, LLC v. SECRETARY OF STATE " on Justia Law
Ascension Data v. Pairprep
Ascension Data & Analytics, Rocktop Partners, and Rocktop Holdings II (collectively, "Ascension") entered into a contract with Pairprep, Inc. for data extraction services. The contract was terminated due to an alleged data breach and Pairprep's failure to extract reliable data. Ascension then contracted with another vendor, Altada Technologies Solutions, but that contract was also terminated early due to Altada's financial crisis. Ascension initiated arbitration proceedings against Pairprep to recover remediation costs incurred as a result of the data breach. Pairprep counterclaimed, alleging breach of contract and violation of the federal Defend Trade Secrets Act. The arbitration panel rejected Ascension's defenses and granted Pairprep a monetary award.Ascension filed an application in the Northern District of Texas to vacate the arbitration award, arguing that Pairprep's counterclaims were barred by res judicata due to a previous dismissal of identical claims against Altada. Pairprep filed an application to confirm the arbitral award in a Texas state court, which was granted. The district court dismissed Ascension's application for lack of subject matter jurisdiction and denied its motion for preliminary injunctive relief.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court applied the Supreme Court's decision in Badgerow v. Walters, which held that a district court must have an independent jurisdictional basis to consider applications to confirm, modify, or vacate arbitral awards under the Federal Arbitration Act. The court found that Ascension had not established an independent basis for subject matter jurisdiction, as the parties were not diverse and Ascension did not identify any federal law entitling it to relief. Therefore, the court concluded that the dispute over the enforceability of the arbitral award must be litigated in state court. View "Ascension Data v. Pairprep" on Justia Law