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Justia Contracts Opinion Summaries
Fairhaven Housing Authority v. Commonwealth
The Supreme Judicial Court affirmed the decision of the superior court judge dismissing the underlying declaratory judgment complaint in this declaratory judgment action regarding the scope of the Department of Housing and Community Development's (DHCD) authority under Mass. Gen. Laws ch. 121B, 7A, holding that dismissal was warranted.Plaintiffs - location housing authorities (LHAs) of various cities and towns, current and former executive directors of LHAs and others - sought a judgment declaring that DHCD exceeded its authority under Mass. Gen. Laws ch. 121B, 7A by promulgating guidelines that govern contracts between an LHA and its executive director and making compliance with the guidelines a requirement to obtain contractual approval from DHCD. A superior court judge allowed DHCD's motion to dismiss. The Supreme Judicial Court affirmed, holding that LHAs have authority to hire executive directors and "determine their qualifications, duties, and compensation, under Mass. Gen. Laws ch. 121B, 7. View "Fairhaven Housing Authority v. Commonwealth" on Justia Law
Stronghold Engineering, Inc. v. City of Monterey
Stronghold and the city entered into a 2015 contract to renovate the Monterey Conference Center. Before filing a lawsuit asserting a claim for money or damages against a public entity, the Government Claims Act (Gov. Code 810) requires that a claim be presented to the entity.
Without first presenting a claim to the city, Stronghold filed suit seeking declaratory relief regarding the interpretation of the contract, and asserting that the Act was inapplicable.Stronghold presented three claims to the city in 2017-2019, based on its refusal to approve change orders necessitated by purportedly excusable delays. Stronghold filed a fourth amended complaint, alleging breach of contract. The court granted the city summary judgment, reasoning that the declaratory relief cause of action in the initial complaint was, in essence, a claim for money or damages and that all claims in the operative complaint “lack merit” because Stronghold failed to timely present a claim to the city before filing suit.The court of appeal reversed. The notice requirement does not apply to an action seeking purely declaratory relief. A declaratory relief action seeking interpretation of a contract is not a claim for money or damages, even if the judicial interpretation sought may later be the basis for a separate claim for money or damages which would trigger the claim presentation requirement. View "Stronghold Engineering, Inc. v. City of Monterey" on Justia Law
Gattineri v. Wynn MA, LLC
The Supreme Judicial Court held that an agreement entered into between Plaintiff Anthony Gattineri and Defendants Wynn MA, LLC and Wynn Resorts, Limited (collectively, Wynn) in San Diego California (the San Diego agreement) was unenforceable for reasons of public policy.Wynn entered into an option contract with FBT Everett Realty, LLC (FBT) to purchase a parcel of property. As Wynn's application for a casino license proceeded, the Massachusetts Gaming Commission discovered that there was a possibility of concealed ownership interests in FBT by a convicted felon with organized crime connections. In response, FBT lowered the purchase price for the parcel. The Commission approved the amended option agreement. Gattineri, a minority owner of FBT, opposed the price reduction and refused to sign the certificate required by the Commission. Gattineri alleged that at the San Diego meeting Wynn had agreed to pay Gattineri an additional $19 million in exchange for Gattineri signing the certificate. After the Commission awarded Wynn a casino license Gattineri brought suit claiming breach of the San Diego agreement because Wynn never paid Gattineri the promised $19 million. The Supreme Judicial Court held (1) the agreement was deliberately concealed from the Commission and inconsistent with the terms approved by the Commission; and (2) enforcement of such a secret agreement constituted a clear violation of public policy. View "Gattineri v. Wynn MA, LLC" on Justia Law
U.S. Polyco, Inc. Texas Central Business Lines Corp.
The Supreme Court reversed the judgment of the court of appeals reversing the trial court's judgment in this dispute over a particular provision in a land-improvement contract, holding that the court of appeals erred in concluding that the contract was ambiguous and could not be established as a matter of law.The trial court interpreted the disputed provision as a matter of law and instructed the jury accordingly. The court then entered judgment based on the jury's verdict, which resolved the issues of liability and damages. The court of appeals reached the same result as the trial court but nevertheless reversed, determining that, despite its analysis of the language of the contract, the provision was still ambiguous. The court then ordered a new trial so that a jury could determine the meaning of the contractual text. The Supreme Court reversed and remanded the case for further proceedings, holding that the trial court correctly construed the subject provision, and the court of appeals erred in ruling that the provision was ambiguous. View "U.S. Polyco, Inc. Texas Central Business Lines Corp." on Justia Law
Posted in:
Contracts, Supreme Court of Texas
Tough Turtle Turf, LLC v. Scott
The Supreme Court reversed the order of the district court enforcing a noncompete covenant against three of its former employees (collectively, Respondents) on the basis that the covenant was unenforceable due to procedural unconscionability, holding that the court erred in invalidating the covenant based on procedural unconscionability and in failing adequately to consider whether the overbroad scope of the covenant could be modified.In determining that the noncompete agreement was unenforceable, the district court called into question whether employees could readily ascertain its terms and found that the noncompete covenant was overbroad. The court, however, declined to modify the covenant, stating that it could be redrafted in a manner to allow for injunctive relief. The Supreme Court reversed the portion of the order denying injunctive relief as to the noncompete provision, holding that the district court (1) erred in invalidating the noncompete covenant as procedurally unconscionable and therefore unenforceable as a matter of law; and (2) failed properly to analyze whether the noncompete covenant could be revised under Nev. Rev. Stat. 613.195(6). View "Tough Turtle Turf, LLC v. Scott" on Justia Law
Posted in:
Contracts, Supreme Court of Nevada
Paul v. Bathurst
The Supreme Court affirmed in part and reversed in part the judgment of the circuit court granting the motion brought by Robert and Shannon Bathurst to dismiss the underlying lawsuit because a statute of limitations barred Linda Paul from bringing her claim against them, holding that dismissal was improper.Paul brought this action against Robert, Shannon, and Stonemeadow Ranch, LLC, alleging breach of contract, quantum merit, unjust enrichment, and promissory estoppel. Shannon and Robert moved to dismiss for failure to state a claim and, in the alternative, argued that Paul's claims were time-barred by the statute of limitations set forth in S.D. Codified Laws 15-2-15(4). The Supreme Court applied a two-year statute of limitations and granted the motion to dismiss based on the alternative argument of the statute of limitations. The Supreme Court reversed in part, holding (1) the record did not allow a determination of which statute of limitation applied at this early stage of the proceedings; and (2) the circuit court did not err when it denied the motion to dismiss for failure to state a claim upon which relief could be granted. View "Paul v. Bathurst" on Justia Law
Posted in:
Contracts, South Dakota Supreme Court
Women’s Care Specialists, P.C. v. Potter
Consolidated appeals arose from an employment dispute between Dr. Margot Potter and her former employer, Women's Care Specialists, P.C. ("Women's Care"), and out of a dispute between Potter and three Women's Care employees: Dr. Karla Kennedy, Dr. Elizabeth Barron, and Beth Ann Dorsett ("the WC employees"). In case no. CV-21-903797, Potter alleged claims of defamation, tortious interference with a business relationship, and breach of contract against Women's Care. In case no. CV-21-903798, Potter alleged claims of defamation and tortious interference with a business relationship against the WC employees. After the cases were consolidated by the circuit court, Women's Care and the WC employees moved to compel arbitration on the basis that Potter's claims were within the scope of the arbitration provision in Potter's employment agreement with Women's Care and that the arbitration provision governed their disputes even though Potter was no longer a Women's Care employee. The trial court denied those motions. In appeal no. SC-2022-0706, the Alabama Supreme Court held Potter's breach of-contract claim and her tort claims against Women's Care were subject to arbitration. In appeal no. SC-2022-0707, the Court likewise held Potter's tort claims against the WC employees were subject to arbitration. The trial court's orders were denied and the cases remanded for further proceedings. View "Women's Care Specialists, P.C. v. Potter" on Justia Law
Murray v. Porter
Seneathia K. Porter initiated an unlawful-detainer action against Tracy Murray, doing business as Tracy's Treasure Company, LLC ("Murray"), seeking possession of commercial property and the recovery of, among other things, unpaid rent, late fees, insurance costs, taxes, and attorney's fees. Porter claimed she owned the property, she had leased the property to Murray on a month-to-month basis for the sum of $1,500 per month, Murray defaulted under the lease by failing to pay rent in accordance with the lease, and that she had provided Murray with written notice that her right of possession of the property had been terminated. Murray, on the other hand, denied that she had leased the property. Rather, she claimed she had executed a contract to purchase the property and had made improvements to the property. Following a bench trial, the circuit court purported to enter a judgment in favor of Porter and against Murray. Murray appealed. The Alabama Supreme Court dismissed the appeal, finding no evidence that the district court had adjudicated the unlawful-detainer action. Thus, the circuit court lacked jurisdiction over the action and the judgment it entered was void and, therefore, would not support an appeal. View "Murray v. Porter" on Justia Law
Amanda Howard Real Estate, LLC v. Lee, et al.
Amanda Howard Real Estate, LLC ("Howard Real Estate"), appealed a partial summary judgment in favor of Clair Lee and JRHBW Realty, Inc. ("RealtySouth"), in Howard Real Estate's suit to enforce a noncompete agreement against Lee. The circuit court ruled that the noncompete agreement was void because it was not signed by both parties as required by statute. The Alabama Supreme Court affirmed the judgment because none of Howard Real Estate's arguments established that it satisfied the statutory signatures requirement. View "Amanda Howard Real Estate, LLC v. Lee, et al." on Justia Law
Scott Fetzer Co. v. American Home Assurance Co.
The Supreme Court affirmed the judgment of the court of appeals in this dispute arising out of environmental-cleanup and remediation work at two Superfund sites in Bronson, Michigan, holding that Restatement (Second) 193 does not govern the choice-of-law analysis for bad faith claims.Scott Fetzer Company filed this action asserting a breach of contract claim against certain insurance companies, including Travelers Casualty and Surety Company, alleging breaches of certain insurance contracts. Fetzer also asserted a tort claim against each company, arguing that they had acted in bad faith when handling his claims. As to Travelers, an administrative judge concluded that Ohio law applied to a discovery dispute concerning Scott Fetzer's bad faith claim. The court of appeals affirmed, determining that Ohio law governed the bad-faith discovery dispute because the cause of action was a tort. In affirming, the court applied the choice-of-law rules set forth in section 145 of the Restatement. Travelers appealed, arguing that section 193 governs the choice-of-law analysis for bad faith claims because they arise out of insurance contracts. The Supreme Court affirmed, holding that the court of appeals correctly ruled that the choice-of-law analysis applicable to a bad-faith claim as provided by section 145. View "Scott Fetzer Co. v. American Home Assurance Co." on Justia Law