
Justia
Justia Contracts Opinion Summaries
Greene Cty. Sch. Dist. v. Circle Y Construction, Inc.
Circle Y filed a complaint alleging, among other things, breach of contract when the school district terminated a construction management services contract with Circle Y. The trial court denied the school district's motion to dismiss and the court of appeals affirmed. The court held that, in light of the determination by the court of appeals that the trial court correctly denied the motion to dismiss because Circle Y's complaint alleged facts that, when taken as true, established that the contract was not void as a matter of law due to voter approval of the educational local option sales tax, it was not necessary for the court of appeals to construe OCGA 20-2-506(h) in order to resolve the appeal. Accordingly, the court remanded to the court of appeals with direction that it vacate that portion of the Division order that addressed OCGA 20-2-506.
Appleton v. Alcorn, et al.
Appellee, as executrix of the estate of her father, and her sister, brought a breach of contract action in which they asserted that their father's second wife, appellant, contractually waived her right to retain the proceeds of their deceased father's employer-provided 401K plan and life insurance policy by entering a settlement agreement incorporated into an order of separate maintenance executed approximately a year prior to the father's death. At issue was whether the court of appeals erred in finding that decedent's children could maintain a state law action against the decedent's surviving spouse to recover proceeds distributed to the spouse as the beneficiary of the decedent's ERISA-governed benefits plans, 29 U.S.C. 1001 et seq., where the state law claims were based on a contention that the spouse waived her rights to such proceeds. The court answered in the negative, concluding that, in this case, since the proceeds of the ERISA-covered plans were paid out to appellant and were no longer in the control of the plan administrator, the trial court erred when it dismissed appellees' breach of contract claim against appellant.
Boazova v. Safety Ins. Co.
Plaintiff appealed the dismissal of her complaint against Safety, which alleged that Safety improperly denied coverage under her homeowner's insurance policy for damage to her house. The court concluded that plaintiff satisfied her initial burden of proving that her claimed loss fell within the coverage of her homeowner's insurance policy. Safety then satisfied its burden of showing that the exclusion for damage caused directly or indirectly by surface water was applicable to plaintiff's claim. In light of the anticoncurrent cause provision in the exclusions section of plaintiff's policy, where the excluded peril was a direct or indirect cause of the damage to plaintiff's home, Safety was not obligated to provide insurance coverage "regardless of any other cause or event contributing concurrently or in any sequence to the loss." Accordingly, the court affirmed the grant of Safety's motion for summary judgment.
Travelers Casualty and Surety Co. v. Sequa Corp., et al.
Travelers, an insurer, was being sued for insurance benefits in a New Jersey court. Plaintiff there was a subsidiary of a defendant here, Sequa. Travelers sought specific performance of, and a declaratory judgment arising from, a release of claims by Sequa in favor of Travelers, made in connection with the settlement of coverage litigation in the Delaware Superior Court in 1997. The relief sought by Travelers here would relieve it from, or indemnify it for, liability in the coverage litigation being undertaken in New Jersey. Because the explicit language of the release excluded the sites for which plaintiff in the New Jersey action sought coverage, as a matter of contract law Travelers was not entitled to the specific performance or declaratory judgment it sought here. Accordingly, the court dismissed the matter.
Monte Sano Research Corp. v. Kratos Defense & Security Solutions, Inc.
Monte Sano Research Corporation (MSRC), Steven L. Thornton, and Steven B. Teague appealed a preliminary injunction entered against them in an action brought by Kratos Defense & Security Solutions, Inc., a California-based aerospace and defense contractor, Digital Fusion, Inc. (DFI), an Alabama-based holding company, and Digital Fusion Solutions, Inc. (DFSI), a Florida corporation and a subsidiary of DFI (referred to collectively as Kratos), alleging breach of the duty of loyalty, breach of contract, tortious interference with business and contractual relationships, and civil conspiracy. Additionally, Kratos sought injunctive relief. MSRC was formed in 2009 to procure government subcontract work at Redstone Arsenal in Huntsville. Thornton and Teague were employees of DFI, which also engaged in government subcontract work; they became employees of Kratos when Kratos Defense merged with DFI in 2008. Kratos terminated Teagues employment on June 23, 2011. Thornton resigned from Kratos four days later. A dispute arose between the parties which implicated the employment contracts for Thornton and Teague when they sought subsequent work. Upon review of this case, the Supreme Court found that because the provisions of Rule 65(d)(2) of the Alabama Rules of Civil Procedure were not complied with and because there was no evidence of an irreparable injury or the lack of an adequate remedy at law, the trial court erred in issuing the preliminary injunction. The Court reversed the trial courts order entering the preliminary injunction and remanded the case to the trial court with directions that it dissolve the injunction it issued September 10, 2011.
GSS Group Ltd v. National Port Authority
GSS Group brought this action to confirm a foreign arbitration award against the Port Authority of Liberia. The district court dismissed the petition for lack of personal jurisdiction after concluding that the Port Authority did not have sufficient contacts with the United States. The court concluded that the Port Authority claimed to be an independent juridical entity in its motion to dismiss, and GSS Group failed to contest that characterization. GSS Group's omission left in tact the Bancec presumption, First National City Bank v. Banco Para el Comercio Exterior de Cuba, which, under TMR Energy v. State Property Fund of Ukraine, guaranteed the Port Authority treatment as a separate "person" entitled to due process protection. That protection included the right to assert a minimum contacts defense. GSS Group had not identified any connection between the Port Authority and the United States and conceded that none existed. Therefore, the district court correctly dismissed the petition for lack of personal jurisdiction.
Epperson v. SouthBank
Carolyn Epperson filed a complaint against SOUTHBank in circuit court alleging that the bank had breached its contract with her by failing to give her the funds from certain certificates of deposit upon her request. The bank had denied Epperson's request because she did not present the original certificates. The trial court granted summary judgment for SOUTHBank, finding that contractual language required presentation of the original certificates for withdrawal. Epperson appealed the trial court's judgment, and the Supreme Court assigned the case to the Court of Appeals. The Court of Appeals reversed the trial court’s judgment and rendered judgment in favor of Epperson. SOUTHBank filed a petition for writ of certiorari, which the Supreme Court granted. Upon review, the Court found that the contractual language pertaining to withdrawals gave SOUTHBank discretion to require certain forms to be used for withdrawal, to refuse or restrict early withdrawals, and to assess penalties for early withdrawal. These terms were consistent and allowed SOUTHBank to require presentation of the original CD or CDs for withdrawal. The contract was unambiguous, and the trial court's grant of summary judgment was therefore appropriate.
DT-Trak Consulting, Inc. v. Prue
Dan Prue sold his majority interest in DT-Trak Consulting, a medical coding business, for a lump-sum payment and several annual payments. DT-Trak withheld an annual payment, asserting that Prue had violated the parties' stock purchase agreement. The matter proceeded to arbitration. A three-member arbitration panel made an award in Prue's favor. DT-Trak sought to vacated the award, alleging that the arbitrator it selected demonstrated evident partiality and that the panel's findings of fact and conclusions of law were insufficient. The circuit court affirmed. The Supreme Court affirmed, holding that under either the Federal Arbitration Act or South Dakota Arbitration Act, DT-Trak failed to show that the arbitration award should be vacated, as (1) there was no support that any member of the arbitration panel exhibited evident partiality; and (2) the findings of fact and conclusions of law submitted by the panel were sufficient under the requirements of the agreement.
Finch v. Inspectech, LLC
Petitioners, David and Shirley Finch, appealed from an order entered by the circuit court, which granted summary judgment to Defendant, Inspectech, LLC. The circuit court concluded that, by signing the parties' inspection agreement, which contained a clause entitled "unconditional release and limitation of liability," the Finches had released Inspectech from liability for any defects it failed to report in its inspection of the house the Finches planned to, and ultimately did, purchase. The Supreme Court reversed, holding that Inspectech was not entitled to judgment as a matter of law based upon the terms of the parties' inspection agreement and the release language therein because anticipatory releases contained in home inspection contracts are void and unenforceable as contrary to the public policy of the State.
Acordia of Ohio, LLC v. Fishel
At issue in this appeal was whether a court should enforce several employees' noncompete agreement transfers by operation of law to the surviving company when the company that was the original party to the agreement merged with another company. Here the trial court concluded that the employees did not intend to make the noncompete agreements assignable to successors such as the surviving company. The court of appeals affirmed. The Supreme Court affirmed, holding that in this case, the language the agreement dictated that the surviving company could not enforce the agreement after the merger as if it had stepped into the shoes of the original company.