Justia Contracts Opinion Summaries

This case concerns a dispute arising from a real estate transaction between appellants Donnell and Marilyn Bauer and appellees Jesse Lee and Mary A. Beamon. The Bauers sold Lot 24A to the Beamons, failing to disclose certain defects and issues related to the property. After the sale, the Beamons discovered a mold issue in the residence and soil instability on an adjacent lot, Lot 18, which the Bauers had also owned. The Beamons attempted to remediate these issues, incurring significant costs. They ultimately sought to rescind the contract, alleging fraud and deceit by the Bauers.The Supreme Court of Arkansas affirmed the lower court's denial of the Beamons’ rescission claim, finding that the Beamons had waived their right to rescission by taking possession of the property, engaging in mold eradication, and attempting to remediate the soil conditions on the hillside. These actions were found to be inconsistent with an intent to rescind.However, the court reversed the lower court's award of damages to the Beamons for breach of contract. The court found that the Beamons had not alleged breach of contract in their complaint, and thus could not recover damages on that basis. Furthermore, the court found that the Bauers' constitutional right to a jury trial had been violated, as the Beamons’ claim for rescission, an equitable remedy, had been tried without a jury, and the Bauers were not given a jury trial on the legal claim for damages. View "BAUER V. BEAMON" on Justia Law

The Supreme Court dismissed this interlocutory appeal of a vacated class certification order and directed the circuit court to remand the case to address motions to compel arbitration, holding that this appeal was moot.Plaintiffs, who represented the estates of former residents of fourteen different nursing homes, alleged breach of contract and unjust enrichment claims against the nursing homes, in violation of the Arkansas Civil Rights act and the Arkansas Deceptive Trade Practices Act. The nursing homes moved to compel arbitration for all but two of the named plaintiffs, after which the plaintiffs moved for class certification. The circuit court granted Plaintiffs' motion for class certification without ruling on the motions to compel arbitration. The nursing homes brought an interlocutory appeal of the class-certification order and petitioned for writ of prohibition, mandamus, and certiorari. The Supreme Court granted the writ petition, vacating the order granting class certification, and ordered the circuit court to rule on the motions to compel before ruling on class certification, holding that the interlocutory appeal of the vacated class-certification order was moot. View "Reliance Health Care, Inc. v. Mitchell" on Justia Law

The Supreme Court affirmed the judgment of the circuit court awarding attorneys' fees after a medical doctor sued and lost against a hospital following its revocation of the doctor's medical staff and surgical privileges, holding that the circuit court did not err or abuse its discretion.Doctor, a surgeon, sued Hospital after his termination stemming from allegations that Doctor provided care that fell short of standard surgical practice. After a remand, all of Doctor's claims were dismissed. Thereafter, the circuit court awarded Hospital attorneys' fees and costs. The Supreme Court affirmed, holding (1) the motion for attorneys' fees was timely filed; and (2) Doctor was not entitled to relief on his remaining allegations of error. View "Williams v. Baptist Health" on Justia Law

The Supreme Court denied a petition for a writ of certiorari or, in the alternative, a writ of prohibition, writ of mandamus or other supervisory writ, holding that the circuit court did not misinterpret the Arkansas Rules of Civil Procedure in the underlying discovery matter.Respondents filed a complaint against Monsanto Company alleging claims for design defect, failure to warn, negligence, breach of implied warranties, violation of the Arkansas Deceptive Trade Practices Act, and loss of consortium. After Respondents served Monsanto with a deposition notice Monsanto moved for a protective order arguing that the deposition was not permitted. The circuit court denied Monsanto's motion for protective order. Monsanto then brought this petition. The Supreme Court denied the petition, holding that Monsanto was seeking to control the circuit court's exercise of its discretion in this discovery matter and that mandamus will not lie for this purpose. View "Monsanto Co. v. Kilgore" on Justia Law

The Supreme Court reversed the order of the circuit court disqualifying Stephen Goldman from further participation as the counsel of The Travelers Indemnity Company in a suit filed by the Board of Trustees of the University of Arkansas, holding that the circuit court abused its discretion.The Board, acting on behalf of the University of Arkansas for Arkansas System, brought this complaint against Travelers for breach of contract, declaratory judgment, and bad faith, alleging that it was entitled to benefits under its all-risk commercial insurance policy for damages it suffered during the coronavirus pandemic. After the circuit court entered its ruling disqualifying Goldman, a nonresident attorney, from further representing Travelers in this case Goldman and Travelers (together, Appellants) appealed, arguing that the circuit court erred by revoking Goldman's motion for admission pro hac vice. The Supreme Court agreed and reversed in part, holding that the circuit court's revocation of Goldman's pro hac vice status without prior notice or a reasonable opportunity to be heard violated due process requirements. View "Travelers Indemnity Co. v. Board of trustees of University of Ark." on Justia Law

The Supreme Court affirmed the judgment of the circuit court certifying this class action against an auto insurance company brought by Plaintiffs, insureds who incurred medical expenses because of car accidents, holding that the circuit court did not abuse its discretion in concluding that the prerequisites of a class action had been satisfied.Instead of paying Plaintiffs for the full amount of billed medical expenses Defendant instead simply reimbursed them for the actual amount they owed their medical providers after all discounts had been applied. Plaintiffs brought this action that this practice constituted breach of contract and unjust enrichment. The court certified a class action, from which Defendant appealed. The Supreme Court affirmed, holding that the circuit court did not abuse its discretion when it certified this case as a class action. View "Shelter Mutual Insurance Co. v. Baggett" on Justia Law

The Supreme Court reversed the circuit court's order reflecting a jury verdict awarding almost $6 million in compensatory damages, jointly and severally, against KBX, Inc. and three KBX individuals (collectively, Appellants) and other defendants and reversed the court's award of attorney's fees, holding that the court erred in part.In this case involving certain farmers' dispute with KBX, a grain exporter and merchandiser, and the KBX individuals over a series of written contracts for the purchase of rice, the circuit court entered a judgment reflecting the jury's award of compensatory damages against Appellants and other defendants. The court assessed attorney's fees and costs against Appellants as a sanction for alleged spoliation of evidence. The Supreme Court reversed in part, holding (1) without any evidence of deceit in the form of a false representation by KBX or the KBX individuals to the farmers, substantial evidence did not support the jury's verdict on deceit; (2) substantial evidence did not support the jury's verdict on constructive fraud or the farmers' conspiracy claim; (3) the circuit court erred as a matter of law in denying Appellants' motion for directed verdict on the farmers' unjust enrichment claim; and (4) remand was required on the issue of attorney's fees for recalculation of an award consistent with this opinion. View "KBX, Inc. v. Zero Grade Farms" on Justia Law

The Supreme Court answered a certified question from federal court about whether Arkansas law prevented Plaintiffs from pursuing their breach of contract claim when the first breach occurred outside of the state of limitations period, holding that a separate statute of limitations period began as each monthly oil-and-gas royalty payment became due.The contract in this case required monthly oil-and-gas payments. Plaintiffs brought this action alleging that Defendants had been underpaying those royalties for several years. In response, Defendant raised the affirmative defense of statute of limitations. The federal district court certified a question of law to the Supreme Court. The Supreme Court answered that, under Arkansas law, the existence of royalties outside the limitations period did not bar recovery for monthly underpayments within the limitations period. View "Pennington v. BHP Billiton Petroleum, LLC" on Justia Law

The Supreme Court affirmed the order the circuit court certifying a class action against Defendants, holding that the circuit court did not err or abuse its discretion.Plaintiffs filed a class action complaint against Defendants, alleging, on their own behalf and on behalf of others similarly situated, that their water systems were contaminated with sewage due to Defendants' negligence. Plaintiffs moved for class certification. The circuit court certified the class as to their negligence and breach of contract claims. On appeal, Defendants argued that the circuit court erred in finding that class was ascertainable and that common issues predominated and erred in certifying the breach of contract claim. The Supreme Court affirmed, holding that the circuit court did not err in certifying the class. View "C.J. Mahan Construction Co. v. Betzner" on Justia Law

The Supreme Court reversed the judgment of the circuit court and dismissed Plaintiffs' claims against Arkansas Development Finance Authority (ADFA), holding that Ark. Const. art. V, 20 immunized ADFA from Plaintiffs' claims.Plaintiffs sued the ADFA, alleging breach of contract, negligence, fraud, and unjust enrichment. ADFA filed a motion to dismiss, asserting that it was entitled to sovereign immunity. The circuit court denied the motion. The Supreme Court reversed, holding that because the relief Plaintiffs sought would control the action of the State their claims were barred by article 5, section 20, and ADFA was entitled to sovereign immunity. View "Arkansas Development Finance Authority v. Wiley" on Justia Law