Justia Contracts Opinion Summaries

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Plaintiffs acquired a homeowners' insurance policy from Defendant effective as of the closing date of the home they had entered into a contract to purchase. The closing date was scheduled to take place on March 31 but was delayed until May 20. On May 15, a fire completely destroyed the house. Defendant disclaimed coverage on the pertinent grounds that the dwelling was unoccupied at the time of the loss, and therefore, it did not qualify as a "residence premises" under the policy. Supreme court granted Defendant's motion for summary judgment and dismissed the complaint. The appellate division modified the order, concluding that the "residence premises" requirement in the policy failed to define what qualifies as "resides" for the purpose of attaching coverage and that the policy was ambiguous in the circumstances of this case, and otherwise denied summary judgment. The Court of Appeals affirmed, holding (1) there were issues of fact as to whether Plaintiffs' daily presence in the house, coupled with their intent to eventually move in, was sufficient to satisfy the policy's requirements; and (2) the term "residence premises" in the contract was ambiguous. View "Dean v. Tower Ins. Co. of N.Y." on Justia Law

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Petitioner Victoria Drumheller and three corporate entities sought relief from the default judgment entered against them by the circuit court in connection with a breach of contract action filed by Respondents James and Diane Fillinger. Petitioners asserted (1) they were wrongfully denied the right to have a jury determine the amount of damages they owed to Respondents in connection with the default judgment, and (2) the damage award was not supported by the evidence. The Supreme Court affirmed, holding that the trial court did not commit error in entering the subject default judgment and in holding a bench trial on the issue of damages. View "Drumheller v. Fillinger" on Justia Law

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Travelers Indemnity Company issued to Plaintiff an insurance policy covering direct physical loss of or damage to a building. The policy contained an exclusion for loss or damage caused by earth movement, which included earth sinking whether "naturally occurring or due to made made or other artificial causes." The building suffered cracks as a result of an excavation being conducted on the lot next door to it. Travelers rejected Plaintiff's claim, relying on the earth movement exclusion. Plaintiff sued for breach of the policy. Supreme court denied Travelers' motion for summary judgment, and the appellate division affirmed. At issue on appeal was whether Pioneer Tower Owners Ass'n v. State Farm, in which the Court held that an "earth movement" exclusion in an insurance policy did not unambiguously apply to excavation, applied in this case. The Court of Appeals reversed, holding that because the policy in the instant case had added language expressly making the earth movement exclusion applicable to "man made" movement of earth, the exclusion was unambiguous and the loss caused by excavation was excluded from the policy. View "Bentoria Holdings, Inc. v. Travelers Indem. Co." on Justia Law

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This interlocutory appeal stemmed from litigation concerning a contract dispute among Williams Transport, LLC (Williams Transport), Driver Pipeline Company, Inc. (Driver Pipeline), Buckley Equipment Services, Inc. (Buckley Equipment), and other unnamed defendants. Based on an arbitration clause in the contract, Driver Pipeline filed a motion to compel arbitration. The trial court denied the motion to compel arbitration as well as a subsequent motion for reconsideration. Driver Pipeline filed a petition for interlocutory appeal, which the Supreme Court accepted as a notice of appeal. Finding no error by the trial court in denying Driver Pipeline's motion to compel arbitration, the Supreme Court affirmed. View "Driver Pipeline Company, Inc., Buckley Equipment Services, Inc. v. Williams Transport, LLC" on Justia Law

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The primary question in this commercial dispute involving, among other things, the right to a leasehold to certain commercial property, was whether, pursuant to the "necessary affects" requirement under N.Y. C.P.L.R. 5501(a)(1), Defendants' appeal to the appellate division from a judgment declaring Plaintiff the lawful tenant of the subject property brought up for review two non-final supreme court orders: one dismissing Defendants' counterclaims and third-party complaint and the other denying Defendants' motion for leave to amend their answer. The Court of Appeals modified the order of the appellate division, concluding that the appellate division improperly held that Defendants' appeal from the judgment did not bring up for review the order dismissing Defendants' counterclaims and third-party complaint. In other words, the appellate division erred in ruling that this order did not necessarily affect the final judgment. View "Siegmund Strauss, Inc. v. E. 149th Realty Corp." on Justia Law

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At issue on review in this case was whether the State Board of Land Commissioners properly issued leases to Ark Land Co., a subsidiary of Arch Coal, Inc., without first conducting environmental review under the Montana Environmental Policy Act (MEPA). The State Land Board did not conduct environmental review prior to entering the leases, relying on Mont. Code Ann. 77-1-121(2). The district court granted summary judgment to the State Land Board, Ark Land Co., and Arch Coal (Defendants), determining that the State retained sufficient ability to require adequate environmental protections sufficient to meet its constitutional and trust responsibilities. The Supreme Court affirmed, holding (1) because the leases did not allow for any degradation of the environment and specifically required full environmental review and full compliance with applicable State environmental laws, the act of issuing the leases did not impact or implicate the right to a clean and healthful environment in Mont. Const. art II, 3; and (2) therefore, section 77-1-121(2) was not subject to strict or "middle-tier" scrutiny. View "N. Plains Res. Council, Inc. v. Bd. of Land Comm'rs" on Justia Law

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In this construction defect case, defendant moved for summary judgment, and the trial court granted the motion. Plaintiff then filed a "motion for reconsideration" of the summary judgment ruling. The court meanwhile entered judgment, and plaintiff filed a notice of appeal. When the trial court later denied the motion for reconsideration, plaintiff did not file a new notice of appeal. The question in this case was whether plaintiff needed to do so. Defendant argued that, because a motion for reconsideration constitutes a motion for new trial, its filing rendered plaintiff's earlier notice of appeal premature and, as a consequence, a nullity. Plaintiff argued that the motion for reconsideration did not constitute a motion for a new trial and thus had no effect on the filing of the notice of appeal. The Court of Appeals concluded that, under "Carter v. U.S. National Bank," (747 P2d 980 (1987)), a motion for reconsideration constitutes a motion for a new trial. Nevertheless, the court held that the filing of the motion did not have the effect of rendering the appeal a nullity. Consequently, the court concluded that plaintiff was not required to file a new notice of appeal. Upon review, the Supreme Court held that "Carter" and earlier decisions declaring that a motion for reconsideration of a summary judgment constitutes a motion for a new trial were incorrectly decided. In this case, plaintiff's filing of the motion for reconsideration of the summary judgment did not render the filing of the notice of appeal premature. Accordingly, the Court affirmed the decision of the Court of Appeals on different grounds. View "Assoc. Unit Owners of Timbercrest Condo v. Warren" on Justia Law

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In the 1990s, The Hannon Law Firm ("Hannon"), Melat, Pressman & Higbie, L.L.P.("Melat"), and Howarth & Smith ("Howarth") entered into a contingent fee agreement to represent multiple plaintiffs in an action against the Cotter Corporation regarding contamination from a uranium mill. The three firms entered into a fee sharing agreement to apportion the fees and costs of the litigation among themselves. Hannon withdrew mid-representation, citing a strained relationship with Howarth. Six years later, after the underlying litigation settled, Hannon filed a quantum meruit action against Melat and Howarth, seeking the reasonable value of the services it provided up to the time of withdrawal. The court of appeals upheld the trial court's judgment with regard to its interpretation of C.R.C.P. Chapter23.3 allowing a quantum meruit claim among co-counsel, but reversed the trial court's determination that the claim accrued when Hannon withdrew from the litigation, instead of when the recovery occurred that made funds available to the attorneys. The Supreme Court held that, where multiple attorneys are co-counsel in a contingent fee agreement, C.R.C.P. Chapter 23.3 does not bar a withdrawing attorney from pursuing a quantum meruit action against former co-counsel for a share of attorney fees obtained in the case, even though that attorney was barred from pursuing such an action against the former client. The claim accrues at the time the withdrawing attorney knows or should know of the occurrence of the settlement or judgment that will result in the payment of attorney fees. View "Melat, Pressman & Higbie, LLP v. Hannon Law Firm, LLC" on Justia Law

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This was a quiet title action challenging a claimed interest to oil and gas rights reserved in 1924 when the landowners sold the surface and mineral estate but kept for themselves and their heirs what was described as a portion of the landowners' one-eighth interest in the oil, gas, or other minerals that might later be developed. The district court and court of appeals held that this reservation was a royalty interest and invalidated it under the rule against perpetuities. The Supreme Court reversed, holding that the royalty interest was not void under the rule against perpetuities because it was reserved in the grantors. View "Rucker v. DeLay" on Justia Law

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The Phenix City Board of Education ("the Board") sought mandamus relief from the Russell Circuit Court's denial of the Board's motion to dismiss or, in the alternative, for a summary judgment on claims brought against it by The Lisle Company, Inc. ("Lisle"). Because the Board is immune from suit pursuant to § 14, Ala. Const. 1901, the Supreme Court granted the Board's petition and issued the writ. View "Lisle Company, Inc. v. Phenix City Board of Education" on Justia Law