
Justia
Justia Contracts Opinion Summaries
SER Monongahela Power, et al. v. Circuit Court of Marion County, et al.
Petitioner power companies sought a writ of prohibition in connection with a ruling of the circuit court denying petitioners' motion to dismiss a breach of contract complaint filed against them by respondents, Shell Equipment and Shell Energy, as being barred by the statute of limitations. Petitioners argued that the trial court erred in ruling that the limitations period applicable to contracts for the sale of goods under the UCC does not apply to the coal sales agreement they entered into with Shell Equipment. The Supreme Court granted the writ of prohibition, finding that petitioners demonstrated clear legal error for which they were entitled to relief. The Court determined that the subject agreement constituted a sale of goods under W.V. Code 46-2-107(1), and, as a result, the four-year statute of limitations established by the UCC for the sales of goods was controlling. Because respondents did not initiate the lawsuit until after the limitations period had expired, the trial court committed error in failing to grant petitioners' motion to dismiss.
N.C. Farm Bureau Mut. Ins. Co., Inc. v. Sadler
Gervis Sadler owned a house that he insured through a limited-peril policy issued by North Carolina Farm Bureau Mutual Insurance Company (Farm Bureau). Farm Bureau adjusters investigated the home on two separate occasions, but Sadler disagreed with the amount of loss and asked for a disinterested appraisal. In the disinterested appraisal, Farm Bureau's appraiser valued the loss at $31,561. The appraisal award calculated by Sadler's appraiser and the umpire valued the loss at $162,500. Farm Bureau filed a complaint for declaratory relief, alleging the appraisal award failed to itemize the damages so Farm Bureau could determine the covered losses. Sadler moved for partial summary judgment on his breach of contract counterclaim. The trial court granted Sadler's request for partial summary judgment. Farm Bureau appealed. The Supreme Court reversed, holding that the trial court erred in granting partial summary judgment in favor of Sadler because genuine issues of material fact needed to be resolved before the loss covered by the policy could be determined.
Gibbs, et al. v. Primelending, et al.
Plaintiffs Mark and Karla Gibbs brought claims in the federal district court against, among other defendants, Corinthian Title, Jeffrey Brown, Shelley Hickson, and Christine Tueckes, for civil conspiracy. The above defendants argued that the federal district court did not have in personam jurisdiction over them because Arkansas's long-arm statute does not allow application of conspiracy jurisdiction. The federal district court certified to the Supreme Court the question of whether the use of the conspiracy theory of in personam jurisdiction violates the state's long-arm statute. The Court answered in the negative. Arkansas's long-arm statute does not limit the exercise of personal jurisdiction to certain enumerated circumstances and is therefore limited only by federal constitutional law. Because jurisdiction based on the conspiracy theory does not violate due process, the conspiracy theory of in personam jurisdiction does not violate Arkansas's long-arm statute.
Carter v. Cline
Jay Carter appealed an order of the circuit court awarding Ernie and Karen Cline money damages pursuant to a jury verdict, in addition to attorneys fees and costs, on the Clines's complaint for breach of contract to purchase real estate. On appeal, Carter argued that Ark. R. Civ. P. 54(b) was not complied with, that the circuit court erred in denying Carter's motion for judgment notwithstanding the verdict, and that the award of costs and attorneys fees was warranted based on the jury's verdict. The Supreme Court remanded, holding it was precluded from reaching the merits of Carter's arguments due to a deficient abstract pursuant to Ark. Sup. Ct. R. 4-2(a)(5) and ordering Carter to file a substituted brief.
Bradley v. State Farm Mut. Auto. Ins. Co.
Megan Bradley, who was insured by State Farm, was injured in a motor-vehicle accident. State Farm paid $3844 in medical benefits to Bradley. State Farm then pursued a subrogation claim against the tortfeasor's insurer, Farmers Insurance. Bradley responded that the settlement with Farmers Insurance was not sufficient for her to be made whole. State Farm refused to release its subrogation claim. Bradley filed a petition for declaratory judgment and complaint for bad faith against State Farm and later filed an amended declaratory action to invalidate lien and complaint for injunctive relief, deceptive trade practices, bad faith and tortious interference with a contract. The circuit court dismissed count one of Bradley's amended pleading, finding (1) State Farm had a valid but unenforceable lien for sums paid to Bradley, (2) State Farm's right of subrogation arose at the time State Farm paid the medical benefits by operation of law, and (3) State Farm's right of subrogation is not enforceable until a subsequent judicial determination that Bradley was made whole by the settlement. The Supreme Court reversed and remanded for the reasons set forth on the same day in Riley v. State Farm Mutual Automobile Insurance Co.
Hoff v. Lake County Abstract & Title Co., et al.
Gary Hoff filed a complaint alleging contract and negligence claims against Countrywide Home Loans, Inc. and Lake County Abstract & Title Company. Countrywide failed to appear or answer within the 20 days permitted by Mont. R. Civ. P. 12(a), after which Hoff moved for entry of default against Countrywide. Countrywide later attempted to reverse the default proceedings with a motion to set aside the default pursuant to Mont. R. Civ. P. 55(c) and then a Mont. R. Civ. P. 60(b) motion to set aside the entry of default for mistake or excusable neglect. The court denied the motions and entered a default judgment against Countrywide. Countrywide appealed and Hoff cross-appealed. The Supreme Court affirmed, holding (1) the district court did not err in its judgment against Countrywide because pursuant to Cribb v. Matlock Commc'n, Inc., good cause did not exist to set aside the entry of default, and (2) the district court did not err as Countrywide's 60(b) motion was procedurally defective. Lastly, the Court concluded the district court correctly denied Hoff's request for attorneys fees because the contract did not entitle either party to attorneys fees under the circumstances.
Doyle, et al. v. Clark, et al.
Michael Clark owns property on which he stores unused, abandoned, or broken vehicles. Joseph Doyle owns surrounding properties. After attempting for several years to get Clark to clean up the portion of Clark's property that was visible from Doyle's property, Doyle sued Clark and others, claiming that Clark breached a written and oral contract and created a public and private nuisance. A jury ruled in favor of Clark and the other defendants. Following the trial, the district court awarded costs to the defendants. Doyle appealed. The Supreme Court held that the district court did not abuse its discretion (1) in excluding certain exhibits and testimony, (2) in refusing to give Doye's jury instructions on breach of contract and negligence theories, and (3) by limiting Doyle's counsel's closing argument with threats of a mistrial. The Court, however, found the court abused its discretion by awarding Clark his costs. The Court affirmed the judgment of the district court but with instructions to vacate the award of costs to Clark.
Deschamps v. Treasure State Trailer Court, Ltd., et al.
Dennis Deschamps purchased a mobile home park from the estate of Larry Rasmussen. Deschamps financed part of the purchase price through the estate in the form of an indenture note. In the previous case, Deschamps sued the estate, and a jury found the estate was not liable for negligent non-disclosure. In 2007 the estate began the proceedings for a nonjudicial foreclosure on the park after Deschamps stopped making payments on the note. In the instant case, Deschamps again sued the estate, seeking a temporary injunction barring the estate's sale of the property. The district court granted the estate's motion for summary judgment. Deschamps appealed, arguing (1) that the estate is barred from conducting a nonjudicial foreclosure on the property because the nonjudicial foreclosure must have been pleaded as a compulsory counterclaim in the first case; and (2) Deschamps was entitled to raise the affirmative defense of fraud to defeat the estate's nonjudicial foreclosure. The Supreme Court affirmed, holding (1) the district court did not err in ruling that the estate was not required to assert nonjudicial foreclosure as a mandatory counterclaim in the first action; and (2) as a plaintiff, Deschamps cannot assert affirmative defenses.
Schindler v. United Services Automobile Association (USAA), Inc.
Gregory Schindler purchased insurance from USAA for a house he owned. The house was destroyed by fire a year and a half later. USAA denied coverage on the basis that Schindler had committed fraud during his application conversation. Specifically, USAA determined that Greg had misrepresented that the house was his primary residence and a single family dwelling when instead it was a rental divided into eight apartment units. Schindler and his wife filed suit against USAA asserting breach of insurance contract and implied obligation of good faith and fair dealing. USAA defended on the basis of fraud. The jury found for USAA and awarded USAA the monies it had advanced to the Schindlers. The Schindlers appealed. The Supreme Court affirmed, holding (1) the district court did not err in denying the Schindlers' motion for summary judgment; (2) the district court did not abuse its discretion in allowing testimony from a USAA employee; (3) the district court did not abuse its discretion in denying the Schindlers' motion in limine to preclude USAA from introducing evidence of fraud; and (4) the district court did not abuse its discretion in requiring the Schindlers to order and pay for additional transcripts.
Brethorst v. Allstate Property & Casualty Ins. Co.
Wanda Brethorst submitted an uninsured motorist (UM) claim to her insurer, Allstate. Brethorst made a demand for settlement, and Allstate responded with only a partial settlement. Brethorst rejected the offer then filed suit against Allstate for bad faith. Allstate filed a motion asking that Brethorst's contract claim for UM coverage be bifurcated from her bad faith claim and that discovery on the bad faith claim be stayed until the contract claim was resolved. Brethorst opposed the motion on the grounds that she had filed only one claim, and thus no bifurcation or stay of discovery was appropriate. The circuit court agreed with Brethorst and denied Allstate's motion. The Supreme Court affirmed, holding (1) an insured may file a bad faith claim without also filing a breach of contract claim; and (2) Brethorst had supplied the insurer and the court with sufficient evidence of a breach of contract by the insurer to proceed with discovery on her bad faith claim.