Justia Contracts Opinion Summaries

Millard Gutter Company’s voluntary dismissal of its civil action against American Family Insurance Company had no effect on the district court’s authority to make further rulings, but the court erred in taxing technology expenses and jury expenses as costs.After Millard Gutter filed a voluntary dismissal without prejudice, the district court entered a judgment of dismissal and taxed costs to Millard Gutter, including expenses incurred by American Family in setting up courtroom technology and expenses incurred by the court in compensation prospective jurors. On appeal, Millard Gutter argued that once it filed a voluntary dismissal, the district court lacked authority to make any further rulings and, alternatively, that the district court erred in taxing technology expenses and jury expenses as costs. The Supreme Court affirmed in part and in part reversed, holding (1) because Millard Gutter had no statutory right to voluntary dismissal at the time it filed its dismissal, the district court’s authority to make further rulings was unaffected by that filing; and (2) the district court abused its discretion in taxing such expenses as costs. View "Millard Gutter Co. v. American Family Insurance Co." on Justia Law

Francis Franson appealed after the district court granted Hess Corporation’s (“Hess”) motion for summary judgment and Agri Industries, Inc.’s (“Agri”) motion for prejudgment interest. Hess cross-appealed parts of the district court’s judgment rejecting Hess’ alternative arguments for dismissal. In 2008, Hess hired Geokinetics USA, Inc. to complete seismographic testing on Franson’s property. Shortly after, Franson noticed a loss of pressure from his water well between December 2008 and January 2009. Franson hired Agri to drill a new well in January 2009. In March 2013, Agri sued Franson for not paying for its well-drilling services. The district court determined Hess was not entitled to dismissal under the statute of limitations and Franson’s third-party complaint was adequate under N.D.R.Civ.P. 8 and 14. However, the district court granted Hess’ motion for summary judgment, concluding Hess could not be held liable for the negligence of its independent contractor and Franson did not comply with N.D.C.C. 38-11.1-06, which required a certified water test to recover against a mineral developer for damage to a water supply. The district court held a jury trial on the remaining issues between Agri and Franson, and the jury returned a verdict in favor of Agri in the amount of $77,924.85, the exact amount invoiced to Franson for the services. The jury verdict did not mention interest. Agri moved for an award of prejudgment interest. The district court determined Agri was entitled to prejudgment interest because the damages were certain or capable of being made certain by calculation. The North Dakota Supreme Court affirmed the portion of the district court’s judgment granting summary judgment to Hess. The Court reversed the portion of the district court’s judgment granting Agri’s motion for prejudgment interest. "A district court errs by granting a motion for prejudgment interest when the unobjected-to jury instruction on awarding interest became the law of the case." View "Agri Industries v. Franson" on Justia Law

This mandamus proceeding arose from a dispute about a contract’s forum-selection clause. Trinity Bank loaned money to Apex, a drilling company. Michael Lachner, a part owner of Apex and the relator in this case, signed a personal guaranty of the loan. Apex defaulted on the loan, and Lachner defaulted on the guaranty. Trinity filed an action asserting separate breach of contract claims against Apex (on the loan) and Lachner (on the guaranty). Apex made no appearance, and a default judgment was entered against it. Lachner filed a motion to dismiss the action against him under ORCP 21 A(1), because the action was not filed in San Francisco as required by the forum-selection clause. Neither party disputed the meaning of the forum-selection clause, only whether it should be enforced. The trial court denied the motion, without making any findings or conclusions of law, stating that it “ha[d] discretion in [the] matter.” After review of the clause at issue, the Oregon Supreme Court concluded the clause should be enforced. The Court found none of the circumstances identified in Roberts v. TriQuint Semiconductor, Inc., 364 P3d 328 (2015) (as grounds for invalidating a contractual forum-selection clause) were present here. “Trinity’s objections amount to little more than dissatisfaction with the forum selection clause. The trial court’s factual findings indicate that Oregon might be a marginally more convenient place than California to litigate the case, but that is not the applicable legal standard. . . . As counsel for Trinity conceded at oral argument, it is not unfair or unreasonable to litigate the case in California. For that reason, the trial court did not have discretion to deny Lachner’s ORCP 21A (1) motion to dismiss based on the forum-selection clause: The law required the court to dismiss the action. It was legal error not to do so.” A peremptory writ of mandamus issued. View "Trinity v. Apex Directional Drilling LLC" on Justia Law

The United States District Court for the District of South Carolina certified a question of law to the South Carolina Supreme Court. Jack Poole and his wife, Jennifer, were riding in a vehicle owned by Doris Knight, Jennifer's mother, when a drunk driver crossed the center line and struck them. The Pooles were both seriously injured in the collision; although Jack survived, Jennifer's catastrophic injuries resulted in her death several days later. In contrast with the substantial bodily injuries, the Pooles sustained minimal property damage because they did not own the vehicle. The at-fault driver's liability carrier tendered its policy limits. Farm Bureau, the insurer on Knight's vehicle, then tendered its underinsured motorist (UIM) policy limits for bodily injury to Jack individually and to Jack as the representative of Jennifer's estate. The Pooles then sought recovery from their own insurer, Government Employees Insurance Company (GEICO), which provided them a split limits UIM policy with bodily injury coverage of up to $100,000 per person and $50,000 for property damage. GEICO tendered the UIM bodily injury limits of $100,000 each for Jack and Jennifer's estate. The Pooles requested another $50,000 from the UIM policy's property damage coverage in anticipation of a large punitive damages award, but GEICO refused. GEICO then initiated a declaratory judgment action with the federal district court to establish that it was not liable to pay any amounts for punitive damages under the property damage provision of the UIM policy because the source of the Pooles' UIM damages was traceable only to bodily injury. The federal court asked the South Carolina Supreme Court whether, under South Carolina law, when an insured seeks coverage under an automobile insurance policy, must punitive damages be apportioned pro rata between those sustained for bodily injury and those sustained for property damage where the insurance policy is a split limits policy? The Supreme Court answered the question, "No." View "Government Employees Insurance Company v. Poole" on Justia Law

When Charlotte Fischer moved into a nursing home, she received an admissions packet full of forms. Among them was an agreement that compelled arbitration of certain legal disputes. The Health Care Availability Act (“HCAA” or “Act”) required such agreements contain a four-paragraph notice in a certain font size and in bold-faced type. Charlotte’s agreement included the required language in a statutorily permissible font size, but it was not printed in bold. Charlotte’s daughter signed the agreement on Charlotte’s behalf. After Charlotte died, her family initiated a wrongful death action against the health care facility in court. Citing the agreement, the health care facility moved to compel arbitration out of court. The trial court denied the motion, and the court of appeals affirmed, determining the arbitration agreement was void because it did not strictly comply with the HCAA. At issue was whether the Act required strict or substantial compliance. The Colorado Supreme Court held "substantial:" the agreement at issue her substantially complied with the formatting requirements of the law, notwithstanding the lack of bold type. View "Colorow Health Care, LLC v. Fischer" on Justia Law

An action is commenced under Utah law not by the filing of a motion for leave to amend but by the filing of a complaint.Many years after filing suit against other defendants a homeowners association sued the general contractor on a construction project. By the time the homeowners association finally filed an amended complaint naming the general contractor the statute of repose had run on six buildings in the project. The general contractor filed motion for summary judgment, asserting that the claims against it were time barred. The district court denied the motion, concluding that the amended complaint related back to the date the motion for leave to amend was filed. The Supreme Court reversed, holding that the homeowners association’s claims were time barred because no viable complaint was filed within the repose period and the complaint did not relate back to a timely pleading. View "Gables v. Castlewood" on Justia Law

In January 2017, a jury found that an enforceable contract bound Mike Von Jones to pay Safaris Unlimited, LLC, (Safaris) $26,040 for a 2012 big game hunt Jones went on in Zimbabwe, Africa (2012 hunt). After the jury’s verdict, Safaris was awarded attorney fees plus interest on the judgment, bringing the judgment against Jones to $122,984.82. Safaris obtained a writ of execution in June 2017 and attended the sheriff sale as the only bidder. At the sale, Safaris purchased a pending lawsuit arising from Jones’s business venture by making a $2,500 credit bid. Jones was later successful in moving to vacate the sale. Jones appealed three issues from the jury trial: (1) the admission of a handwriting exemplar; (2) certain statements made by the district court concerning the handwriting exemplar; and (3) a jury instruction on agency law. Safaris cross appealed the district court’s decision to vacate the sheriff sale. After review, the Idaho Supreme Court determined: (1) the district court did not abuse its discretion by admitting the handwriting exemplar; (2) the district court did not violate Jones’s procedural due process rights by instructing Jones to answer whether he signed a particular document after viewing the exemplar; and (3) the Court did not reach the merits of Jones’s argument that the district court erred by giving jury instruction 13 since Jones failed to object to the instruction below. Thus, the Court affirmed in part, reversed in part and remanded the case for further proceedings. View "Safaris Unlimited v. Jones" on Justia Law

The Supreme Court held that trial courts must expressly rule on objections in writing for error to be preserved.Plaintiffs sued Allstate Texas Lloyds and one of its adjusters (collectively, Allstate) asserting contractual and extra-contractual claims. Allstate moved for summary judgment. Plaintiffs filed a summary-judgment response that referred to certain pieces of summary-judgment evidence, including an affidavit, but Plaintiffs failed to attach any evidence to their response. The only evidence Plaintiffs provided was filed late. Allstate objected in writing to Plaintiffs’ summary-judgment evidence on multiple grounds. The trial court granted summary judgment for Allstate but did not specify the grounds for its judgment. The court of appeals affirmed, holding that Plaintiffs’ only summary-judgment evidence was incompetent. The Supreme Court reversed, holding (1) unless Allstate complained of a defect in the evidence’s substance, rather than its form, it was obligated not only to object but also to obtain a ruling on its objection; and (2) Allstate’s objections were waived in this case. View "Seim v. Allstate Texas Lloyds" on Justia Law

Plaintiff Brandon Forvendel was injured in a multi-vehicle accident in 2013. At the time of the accident, plaintiff was driving a Chevrolet Equinox owned by him and insured under a policy issued by State Farm Mutual Automobile Insurance Company (“State Farm”), which included uninsured motorist (“UM”) coverage. Plaintiff recovered the limits of his UM coverage under his State Farm policy. At the time of the 2013 accident, plaintiff lived in the household of his mother, Deborah Forvendel, who was also insured by State Farm. Plaintiff also sought to recover under his mother’s State Farm UM policy, which carried significantly higher policy limits. State Farm refused to allow him to recover under his mother's policy, citing the anti-stacking provisions of La. R.S. 22:1295(1)(c). In this case, the issue presented for the Louisiana Supreme Court’s review centered on whether the insurer waived its defenses to plaintiff’s current claim by paying on an earlier claim to him in error. The Court found the insurer did not waive its rights. Accordingly, the Court reversed the judgments of the courts below. View "Forvendel v. State Farm Mutual Automobile Insurance Co." on Justia Law

Consolidated Pipe filed the underlying action against The Ohio Casualty Insurance Company ("Ohio Casualty"), Bolt Construction & Excavating, LLC ("Bolt Construction"), and Michael Bolt (collectively, defendants). The West Morgan East Lawrence Water and Sewer Authority ("the Water Authority") contracted with Bolt Construction to perform a public work known as "the Vaughn Bridge Road Water Line Relocation Project No. 14018.00" ("the project"). In the course of performing its contract with the Water Authority, Bolt Construction entered into a contract with Consolidated Pipe pursuant to which Consolidated Pipe was to supply materials for use in the project. Bolt executed a guaranty in conjunction with the contract with Consolidated Pipe in which he agreed to unconditionally and personally guarantee full and prompt payment of all sums owed to Consolidated Pipe by Bolt Construction in the event Bolt Construction failed to pay the contracted-for amount. In its complaint, Consolidated Pipe alleged Bolt Construction failed to pay Consolidated Pipe for the materials it furnished to Bolt Construction for the project. At issue in this case was venue: the Alabama Supreme Court determined that based on a forum-selection clause, the only proper venue for this action was Morgan County. Therefore, the circuit court erred by granting the motion to transfer. Accordingly, the Court granted Consolidated Pipe's petition for mandamus relief, and directed the Morgan Circuit Court to vacate its order transferring this case to Jackson County. View "Ex parte Consolidated Pipe & Supply Co., Inc." on Justia Law