Justia Contracts Opinion Summaries

Louisiana Hospice Corporation, otherwise known as LHC, sought to acquire Gulf Coast Hospice LLC in D’Iberville, Mississippi. LHC and Gulf Coast Hospice executed a letter of intent outlining the basic terms of the proposed acquisition. Ultimately, the parties failed to consummate the transaction. Gulf Coast Hospice LLC and its members, Jyoti Desai, Krupa Desai, and Iqbal Savani sued LHC Group Inc., LHCG XXVI LLC, and Mississippi Health Care Group LLC, raising several theories of liability stemming from the failed acquisition. The trial court granted LHC’s motion for summary judgment and dismissed Gulf Coast Hospice’s claims. Gulf Coast Hospice appealed, arguing that genuine issues of material fact should have prevented summary judgment. Gulf Coast Hospice’s chief argument was that LHC entered into an enforceable contract to acquire its hospice operations. Alternatively, Gulf Coast Hospice argued that if no enforceable contract to purchase existed, its claims for breach of contract and duty of good faith with respect to the letter of intent and tortious interference should have survived summary judgment. The Mississippi Supreme Court held there was no enforceable contract, that the doctrine of estoppel was inapplicable, and that no genuine issue of material fact existed regarding Gulf Coast Hospice’s misrepresentation claims. The Court also held no genuine issue of material fact existed regarding Gulf Coast Hospice’s alternative claims. As such, the Court affirmed View "Gulf Coast Hospice LLC v. LHC Group Inc." on Justia Law

At issue in this case before the Mississippi Supreme Court was a dispute between an automobile manufacturer and one of its dealerships. Specifically, the issue reduced to whether the dealer filed a timely complaint under Mississippi Code section 63-17-73(1)(d)(iii) after the dealer received the manufacturer’s notice it would terminate the applicable dealership agreement. The Court determined the statute was unambiguous, and its plain meaning provided a dealer may file its verified complaint within the sixty day notice period, i.e., the sixty days preceding the effective date of termination. Because the statute was unambiguous and conveyed a clear and definite meaning, the Court did not resort to the rules of statutory construction. The Court found the dealer’s complaint was timely filed within the sixty days immediately preceding the effective date of termination. View "Nissan North America, Inc. v. Great River Nissan, LLC d/b/a Great River Nissan" on Justia Law

The federal United States District Court for the Middle District of Georgia certified questions of Georgia law to the Georgia Supreme Court regarding the scope of the “acceptance doctrine” in negligent construction tort cases. At issue was whether and how the acceptance doctrine applied as a defense against a claim brought by a subsequent purchaser of allegedly negligently constructed buildings. Thomaston Crossing, LLC (the “original owner”) entered into a construction contract with appellee Piedmont Construction Group, Inc. to build an apartment complex in Macon. Piedmont then retained two subcontractors – appellees Alan Frank Roofing Company and Triad Mechanical Company, Inc. – to construct the roof and the HVAC system, respectively. In 2014, the complex was completed, turned over to, and accepted by the original owner. In 2016, the original owner sold the apartment complex to appellant Thomaston Acquisition, LLC (“Thomaston”) pursuant to an “as is” agreement. Shortly after the sale, Thomaston allegedly discovered evidence that the roof and HVAC system had been negligently constructed. Thomaston filed suit against Piedmont, asserting a claim for negligent construction of the roof and HVAC system and a claim for breach of contract/implied warranty. Piedmont then filed a third-party complaint against Alan Frank Roofing and Triad Mechanical because both companies had allegedly agreed to indemnify Piedmont for loses arising out of their work. Each of the appellees later moved for summary judgment based in part on the defense that Thomaston’s negligent construction claim is barred by the acceptance doctrine. The Georgia Supreme Court concluded the acceptance doctrine applied to Thomaston’s claim, and that “readily observable upon reasonable inspection” referred to the original owner’s inspection. “Without any real claim of privity, Thomaston nevertheless contends that it should be treated like the original owner because it is the current owner-occupier of the property. But doing so would undermine the acceptance doctrine’s foundational purpose of shielding contractors from liability for injuries occurring after the owner has accepted the completed work, thereby assuming responsibility for future injuries. There is no ‘current owner-occupier’ or ‘subsequent purchaser’ exception to the acceptance doctrine, and the facts of this case do not compel us to recognize one here.” View "Thomaston Acquisition, LLC v. Piedmont Construction Group, Inc." on Justia Law

The Supreme Court affirmed in part and vacated in part the decision of the court of appeals affirming the judgment of the district court modifying a judgment for civil conspiracy following a jury trial, holding that the district court did not abuse its discretion in granting the motion to amend the judgment.Jeffrey Anderson commenced an action against Dean and Carol Anderson and Anderson Tooling, Inc. (ATI) alleging, among other claims, tortious discharge. Dean, Carol, and ATI filed several counterclaims. ATI sued Lori and brought a claim against Lori and Fabrication & Construction Services Inc. (FabCon) for, among other claims, conspiracy. Damages against Jeff totaled $772,297.72. The district court subsequently granted ATI's motion to modify the judgment to make Lori and FabCon jointly and severally liable for the $772,297.72 judgment. As relevant to this appeal, the court of appeals reversed the district court's order imposing joint and several liability on Lori and FabCon, determining that a conspiracy did not exist for Lori and FabCon to join. The Supreme Court vacated the court of appeals's judgment in part, holding that the district court did not abuse its discretion in granting the motion to amend the judgment. View "Anderson v. Anderson Tooling, Inc." on Justia Law

The Supreme Court affirmed the district court's decision to exclude all evidence of Keystone Insurance Agency's alleged damage under Utah R. Civ. P. 26(d)(4) in Keystone's suit against Inside Insurance, the court's dismissal of all of Keystone's claims with the exception of Keystone's request for declaratory relief, and the court's dismissal of Inside's counterclaims, holding that the district court did not abuse its discretion.In its complaint, Keystone requested that the district court declare Keystone a member of Inside and sought to inspect certain records. Inside asserted several counterclaims. After the district court entered its judgment the Supreme Court affirmed, holding (1) Keystone failed to provide Inside with a viable computation of its claimed damages in compliance with Utah R. Civ. P. 26(a)(1)(C), and therefore, the district court properly excluded Keystone's damages evidence under rule 26(d)(4); (2) the district court properly denied Keystone's motion for reconsideration; and (3) the district court did not abuse its discretion by dismissing with prejudice Inside's expulsion counterclaim seeking expulsion of Keystone as a member of Inside pursuant to Utah R. Civ. P. 41(a)(2) and (c). View "Keystone Insurance Agency, LLC v. Inside Insurance, LLC" on Justia Law

Rex Distributing Company was a wholesaler of Anheuser-Busch’s beer. When Rex sought to sell its business, Anheuser-Busch asserted a contractual right to “redirect” the sale to its preferred buyer, Mitchell Distributing Company. Rex alleged the redirect provision was void under Mississippi’s Beer Industry Fair Dealing Act (BIFDA) and that Anheuser-Busch’s interference with the sale caused it damages actionable under the same statute. The trial court dismissed Rex’s claims against Anheuser-Busch and Mitchell for failure to state a claim upon which relief can be granted. The Mississippi Supreme Court reversed, however, concluding Rex alleged a valid cause of action. The dismissal of Rex’s BIFDA claim against Anheuser-Busch and the derivative claims against Mitchell were reversed and the matter remanded for further proceedings. The Supreme Court affirmed the trial court’s judgment dismissing Rex’s other claims. View "Rex Distributing Company, Inc. v. Anheuser-Busch, LLC" on Justia Law

In this appeal brought by Alex Mantle and Marjorie Mantle the Supreme Court affirmed in part and reversed and remanded in part the district court's decision as to various post-trial issues in ongoing litigation arising from a soured business deal.The Court held (1) the district court lacked subject matter jurisdiction to offset the judgments when that issue was pending in the Supreme Court in Mantle I; (2) with respect to Killmer Settlement Funds, (a) there was no reviewable order in the record regarding whether the Garlands had standing to assert a direct claim against Karl Killmer, and (b) the Mantles did not have a superior security interest in the Killmer Settlement Funds by operation of the “general intangibles” clause of the FNB security agreement; (3) the district court did nor when it awarded North Star Energy & Construction, LLC's attorneys, The Kuker Group, their attorney fees from a portion of the Killmer Settlement Funds; and (4) the district court did not err when it issued a nunc pro tunc order that removed Marjorie Mantle’s name from the order that disbursed the Killmer Settlement Funds. View "Mantle v. North Star Energy & Construction LLC" on Justia Law

Rotondo was the sole owner of Apex, which wholly owned four limited liability companies (Directional Entities). Apex and the Directional Entities provided services, such as human resources, to different clients. Rotondo sold the Directional Entities’ key asset, customer lists, to AES, which agreed to pay Rotondo a share of its gross profits in the form of “Consulting Fees.” Two entities sought to collect Rotondo’s Consulting Fees: Akouri loaned money to one of Rotondo’s other companies and had a security interest in Apex’s assets and a judgment against Rotondo and Apex for $1.4 million. Rotondo also owes the IRS $3.4 million. The IRS filed several notices of tax liens against Rotondo, Apex, and the Directional Entities. AES filed an interpleader action. The Sixth Circuit affirmed summary judgment in favor of the IRS. The timing of a federal tax lien is measured by when the IRS gave notice of its lien, 26 U.S.C. 6323(a), (f); the timing of state security interests, like Akouri’s, is measured by when they become “choate”—i.e., complete or perfected. Akouri’s interest would be choate as of 2019, but the IRS’s tax liens date to before 2019. The court rejected Akouri’s attempt to recategorize the customer list assets as originally belonging to Apex rather than the Directional Entities. View "AES-Apex Employer Services, Inc. v. Rotondo" on Justia Law

Greenway Health, LLC, and Greenway EHS, Inc. (formerly EHS, Inc.) (collectively, "the Greenway defendants"), and Sunrise Technology Consultants, LLC, and Lee Investment Consultants, LLC (collectively, "the Sunrise defendants"), appealed separately a circuit court order denying their motion to compel the arbitration of certain claims asserted against them by Southeast Alabama Rural Health Associates ("SARHA"). Because the Alabama Supreme Court determined the Greenway defendants failed to establish the existence of a contract containing an arbitration provision, the Sunrise defendants' argument based on an intertwining-claims theory also failed. The Court therefore affirmed the trial court's denial of the Greenway defendants' and the Sunrise defendants' motions to stay proceedings and to compel arbitration. View "Greenway Health, LLC, and Greenway EHS, Inc. v. Southeast Alabama Rural Health Associates" on Justia Law

In early 2016 Jet Commercial Construction, LLC (Jet), an Oklahoma corporation, entered into a contract with Kona Grill, Inc., for the construction of a restaurant in Honolulu, Hawaii. In May, Jet entered into a subcontract with SMJ General Construction, Inc. (SMJ), an Alaska corporation, “to supply the materials and labor for the construction of the building and other improvements.” When disputes arose, the parties engaged in mediation as their subcontract required, reaching a settlement agreement by which they each “absolutely release[d] the other of and from any and all claims, demands and obligations of any kind arising from [the subcontract].” The settlement agreement, unlike the subcontract, contained no dispute resolution provision. Two weeks after settlement the subcontractor filed suit against the contractor in Alaska superior court, seeking damages and an order setting aside the settlement agreement on grounds that the contractor had concealed facts that made it difficult for the subcontractor to obtain releases essential to the settlement. The contractor moved to dismiss, arguing that the subcontractor’s claims were subject to the subcontract’s dispute resolution provision. The superior court granted the contractor’s motion and awarded it attorney’s fees. The subcontractor appealed. The Alaska Supreme Court concluded the case should not have been dismissed because the parties, by the express language of their settlement agreement, released each other from “any and all” obligation to engage in dispute resolution as required by the subcontract. The matter was remanded for further proceedings. View "SMJ General Construction, Inc., v. Jet Commercial Construction, LLC" on Justia Law