Justia Contracts Opinion Summaries

In this commercial dispute, Petitioner obtained a $6 million breach-of-contract and tort judgment against Respondents. After filing the lawsuit, Petitioner assigned its claims to its commercial lender. Respondents filed a motion to dismiss for lack of jurisdiction, alleging that Petitioner had no standing to pursue the litigation because it had assigned the claims to the lender. The trial court concluded that Petitioner had standing. The court of appeals vacated the judgment and dismissed for want of jurisdiction. The Supreme Court reversed, holding that the court of appeals failed to consider pertinent evidence before the trial court, and therefore, the cause must be remanded to the trial court for reconsideration. View "Vernco Constr., Inc. v. Nelson" on Justia Law

Expander Global conducts no business and is merely a holding company for its wholly owned subsidiary, Expander SystemSweden, another Swedish corporation. Expander Sweden wholly owns Expander Americas. Those companies manufacture industrial pins used in heavy machinery. In 2010, Eagle entered into an Independent Contractor Agreement with Expander Americas to provide consulting services. The Agreement led to a relationship between Global and Bakker, Eagle’s sole owner, who acted as a project manager and as secretary of the Global Board of Directors. In 2011, Global terminated Bakker from his positions and its agreement with Eagle. Eagle sued Expander Americas, alleging breach of contract and promissory estoppel; Bakker sued Global for quantum meruit. The district court dismissed the quantum meruit action for lack of personal jurisdiction, finding that Global did not have the requisite minimum contacts with Missouri to be subject to its Long-Arm Statute or to satisfy due process. It was not licensed to do business in the state; it did not advertise within the state; it did not send employees to the state; and no money was received or sent to the state. The court granted Expander Americas summary judgment on the remaining claims, based on the statute of frauds. The Eighth Circuit affirmed. View "Eagle Tech. v. Expander Americas, Inc." on Justia Law

The owner of Mamilove, LLC, and its officers, sisters Michele and Lorraine Reymond sought rescission of a franchise agreement and damages for claims related to their negotiations for, and ultimate purchase of, a daycare franchise. The named defendants were the franchisor, Legacy Academy, Inc., and its officers, Frank and Melissa Turner (collectively “Legacy”). Ten years after they signed the franchise agreement at the heart of this dispute, the Reymonds alleged Legacy fraudulently induced them to sign the agreement by providing false information about the historical earnings of existing Legacy Academy franchisees. They sought to rescind the franchise agreement and recover damages for claims based on alleged fraud, negligent misrepresentation and violation of the Georgia Racketeer Influences and Corrupt Organizations Act (RICO). After a jury trial, the trial court denied Legacy's motion for a directed verdict as to all of the Reymonds' claims. The jury found in the Reymonds' favor, and awarded $750,000 in damages plus attorney fees. Legacy appealed, raising various challenges, including a challenge to the trial court's ruling on its motion for directed verdict. Upon review, the Supreme Court concluded the trial court erred in denying Legacy's motion for a directed verdict as to fraud, negligent misrepresentation and a violation of the RICO statute. The Court reversed the Court of Appeals who affirmed the trial court with regard to these claims, and remanded the case for further proceedings. View "Legacy Academy, Inc. v. Mamilove, LLC" on Justia Law

Plaintiff, a provider of credit repair software and services to credit repair organizations (CROs), sued for breach of contract, fraud, misappropriation of trade secrets, and interference with contract. Defendants work directly for CROs handling administrative tasks. Plaintiff provided defendants its confidential list of CROs and other proprietary information, and entered into agreements for defendants to act as a licensed reseller of plaintiff’s software. Those agreements identify Florida as the venue for dispute resolution and provide for awards of costs and fees. The court granted a temporary restraining order barring defendants from transferring any customers referred to them by plaintiff to any entity that did not use plaintiff’s software and barring defendants from making commercial use of plaintiff’s software. Defendants moved to dismiss based on the forum-selection clauses. The trial court stayed the case for 60 days and extended the preliminary injunction so that plaintiff could seek relief in Florida. After plaintiff refiled in Florida, the California trial court dismissed and dissolved the preliminary injunction. Defendants sought attorney fees of $84,640, as the prevailing parties on the motion to dismiss. The trial court denied the motion. The court of appeal agreed, stating that there has been no final resolution of the contract claims. View "DisputeSuite.com, LLC, v. Scoreinc.com" on Justia Law

Coyote Springs Investment, LLC and BrightSource Energy, Inc. entered into a lease. One year later, BrightSource sought to terminate the lease. Coyote Springs sued BrightSource, claiming that the lease’s termination was ineffective without payment of the termination fee. Before trial, the parties deposed Harvey Whittemore, the former co-owner and manager of Coyote Springs. During the deposition, Coyote Springs requested a recess in order to conduct a private conference with Whittemore. The trial commenced, and during cross-examination of Whittemore, BrightSource’s counsel inquired as to what was discussed at the deposition conference. Coyote Springs objected based on attorney-client privilege. The trial court overruled the objection, determining that the communication was not privileged. Coyote Springs petitioned for extraordinary writ relief on the deposition issue. The Supreme Court denied the writ, holding that the communications between Whittemore and counsel for Coyote Springs during the break in Whittemore’s deposition were discoverable because Coyote Springs requested the recess in the deposition and failed to make a sufficient, contemporaneous record of the conference so as to preserve the attorney-client privilege. View "Coyote Springs Inv., LLC v. Eighth Judicial Dist. Court" on Justia Law

At issue in this appeal was a contract dispute involving a Right-of-Way Easement Option (Agreement) between plaintiff-appellee Angus Chemical Company and defendant-appellant Glendora Plantation, Inc. This appeal stems from the district court’s grant of Angus’s motion for partial summary judgment, denial of Glendora’s motion for partial summary judgment, and denial of Glendora’s motion to compel discovery. Specifically, the issues presented were: (1) whether Angus had authority under the Agreement to abandon the original 12” pipeline in place when it constructed a new 16” pipeline; (2) whether Angus had authority under the Agreement to install fiber optic cables; and (3) whether it was improper for the district court to deny Glendora’s motion to compel discovery. Upon review, the Fifth Circuit concluded: (1) the there was still a material fact issue as to whether the Agreement required removal of the 12" pipeline; (2) the Agreement was sufficiently clear allowing Angus to install fiber optic cables; and (3) because the Fifth Circuit was remanding for consideration of other facts and issues, the Fifth Circuit remanded for the trial court to consider the motion to compel. View "Angus Chemical Company v. Glendora Plantation, Inc" on Justia Law

In 2007, MTB Enterprises, Inc. obtained a $17 million construction loan from financial institution ANB Financial. ANB thereafter failed, and the Federal Deposit Insurance Corporation transferred the construction loan to ADC Venture 2011-2, LLC. In 2012, MTB filed suit in the United States District Court for the District of Idaho against ADC Venture alleging that ADC Venture assumed the obligations of ANB Financial and was therefore liable for breach of contract and damages from MTB’s failed construction venture. The district court dismissed MTB’s claims. The Ninth Circuit dismissed MTB’s appeal for lack of jurisdiction, holding (1) the rule set forth in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 that a claimant must sue in the district court where the failed bank’s principal place of business was located or the United States District Court for the District of Columbia is a jurisdictional limitation on federal court review; and (2) because the United States District Court for the District of Idaho lacked subject-matter jurisdiction over the case from the start, the case must be dismissed. View "MTB Enters., Inc. v. ADC Venture 2011-2, LLC" on Justia Law

Plaintiff, a resident of California, and Defendant, a resident of Michigan, worked together with a third man to develop and market an electrolyte for use in hydrogen fuel cells. When Plaintiff and the third man sold the electrolyte technology without telling Defendant, Defendant threatened to sue if he was not paid what he claimed was his one-third share of the proceeds under an oral agreement. Thereafter, Plaintiff sued Defendant in California seeking a declaration that no oral agreement existed between the parties and for damages for intentional interference with a sales contract. The district court dismissed the suit, concluding that it lacked jurisdiction over Defendant on either of the two claims. The Supreme Court affirmed, holding that because Defendant neither purposefully availed himself of the privilege of conducting activities in California nor expressly aimed his conduct at California, the district court did not err in dismissing the case for lack of personal jurisdiction. View "Picot v. Weston" on Justia Law

Plaintiffs Trilogy at Glenn Ivy Maintenance Association and various homeowners filed suit against defendant Shea Homes, Inc., and others alleging, inter alia, that Shea improperly diverted revenues from a contract that should have been paid to Association. After Shea sought and obtained judgment on the pleadings, plaintiffs filed an amended complaint, and Shea responded by moving to dismiss the amended complaint pursuant to Code of Civil Procedure section 425.16 (the anti-SLAPP, strategic lawsuit against public participation, statute). The trial court denied the motion and Shea appealed. After review, the Court of Appeal concluded the trial court correctly found Shea had not satisfied its initial burden of showing plaintiffs' claims arose from protected activity and therefore correctly denied Shea's motion to strike the complaint under the anti-SLAPP law. View "Trilogy at Glen Ivy v. Shea Homes" on Justia Law

The 2008 contract for the design and construction of nuclear electrical generating units at a Georgia power plant specifies that it is to be governed by Georgia law. The contractor sought payment after Nuclear Regulatory Commission requirements delayed the project and imposed additional costs. The contract calls for mediation. After 60 days, either party may proceed to litigation “in a court of competent jurisdiction,” the parties “agree to the non-exclusive jurisdiction of the United States District Court for the District of Columbia for any legal proceedings.” After mediation the contractor filed its District of Columbia complaint, seeking more than $900 million. The court’s electronic filing log reported “11/01/2012 20:00:01” as the filing time. Georgia Power filed in the Southern District of Georgia, seeking to recover more than $100 million paid under protest and a declaratory judgment. The hard copy of the complaint notes November 1, 2012, 8:00 p.m. as the time of the filing. The district court did not decide who filed first, but determined that the controversy should be adjudicated in Georgia, regardless of which party filed first. The D.C. Circuit affirmed. A clause permitting first-to-file challenges (comparing one lawsuit to another) contemplated that the venue clause was permissive. View "Stone & Webster, Inc. v. Georgia Power Co." on Justia Law