Justia Contracts Opinion Summaries

NRP made preliminary arrangements with the City of Buffalo to build affordable housing on city‐owned land and to finance the project in part with public funds. The project never came to fruition, allegedly because NRP refused to hire a political ally of the mayor. NRP sued the city, the Buffalo Urban Renewal Agency, the mayor, and other officials The district court resolved all of NRP’s claims in favor of defendants. The Second Circuit affirmed. NRP’s civil RICO claim against the city officials is barred by common‐law legislative immunity because the mayor’s refusal to take the final steps necessary to approve the project was discretionary legislative conduct, and NRP’s prima facie case would require a fact-finder to inquire into the motives behind that protected conduct. NRP’s “class of one” Equal Protection claim was properly dismissed because NRP failed to allege in sufficient detail the similarities between NRP’s proposed development and other projects that previously received the city’s approval. NRP’s claim for breach of contract was properly dismissed because the city’s “commitment letter” did not create a binding preliminary contract in conformity with the Buffalo City Charter’s requirements for municipal contracting. NRP fails to state a claim for promissory estoppel under New York law, which requires proof of “manifest injustice.” View "NRP Holdings LLC v. City of Buffalo" on Justia Law

The First Circuit affirmed the order of the district court finding that an arbitration agreement between the parties in this case was enforceable, granting AT&T Mobility Puerto Rico, Inc.’s (AT&T) motion to compel arbitration and dismissing Nereida Rivera-Colon’s (Rivera) suit, holding that Rivera manifested her intent to accept the agreement to arbitrate legal grievances as per Puerto Rico law.Rivera filed suit against AT&T, her former employer, alleging age discrimination and wrongful termination. AT&T entered a special appearance and moved to stay the proceedings and compel arbitration. In response, Rivera argued that there was no valid arbitration agreement. The district court held that the arbitration agreement was enforceable and granted the motion to compel arbitration. The First Circuit affirmed, holding that, under Puerto Rico law, Rivera was bound by the arbitration agreement because she failed to opt out of the agreement. View "Rivera-Colon v. AT&T Mobility Puerto Rico, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment for the state in an action brought by LL Liquor, claiming that Montana's Senate Bill 193 impaired the company's contract to purchase liquor with the Montana Department of Revenue, in violation of the Contracts Clause. Montana's Senate Bill 193 restructured the formula for calculating the rate at which state-approved agency franchise stores could purchase liquor from the state.The panel held that Montana's Senate Bill 193, which applied a uniform commission structure to all franchise stores in the state, did not give rise to a Contracts Clause claim by LL Liquor against the state. In this case, the state did not impair its contractual obligation within the meaning of the Contracts Clause because it did not eliminate LL Liquor's remedy for breach of its contract with the state. View "LL Liquor, Inc. v. Montana" on Justia Law

Judge had been principal of Oaklyn Elementary School for about three years when she was stopped by a Pennsylvania State Trooper for failing to signal. After acknowledging she had been drinking, Judge asked the trooper to release her because she was concerned about her job. The trooper took Judge to the barracks, where she was given a test, which showed that Judge’s blood alcohol content was .332, more than four times the legal limit. Three weeks later, Judge encountered Superintendent Kelley, who had been advised by school board members about the traffic stop. Kelley wrote: If you do choose to resign then I will offer a neutral reference in the future . . . . [I]n the alternative, if you decide not to resign and DUI charges are filed against you then I will be forced to issue a written statement of charges for dismissal. Judge did not contact a lawyer, although she had retained counsel after her arrest. The next day, Judge presented a letter of resignation, while stating she “was not even charged with DUI yet.” Kelley then handed Judge court documents indicating that she had been charged. Judge sued, asserting deprivations of procedural and substantive due process, violation of equal protection, and breach of contract, based on "constructive discharge." The Third Circuit affirmed the rejection of all her claims: Judge was presented with a reasonable alternative to immediate resignation and resigned voluntarily. View "Judge v. Shikellamy School District" on Justia Law

Perez‐Gonzalez pleaded guilty to first-degree murder for his role in a gang‐related killing and agreed to cooperate. His plea agreement stated: Any deviation from that truthful [testimony against a co-defendant] will be grounds for the [state] at [its] sole discretion–to withdraw its agreement to delete reference to a firearm as well as to withdraw its agreement to vacate the 15‐year add‐on. In such event, the defendant would then be required to serve the terms of the initial agreement. It makes no reference to refusal to testify. More than one year later, as the trial of a co‐defendant approached, Perez‐Gonzalez declined to testify. He was convicted of contempt of court, resulting in an additional 10‐year sentence. After exhausting his state court remedies, Perez‐Gonzalez sought habeas corpus relief, asserting the state breached the plea agreement by requesting the contempt sanction. The Seventh Circuit affirmed the denial of relief, rejecting an argument that the plea agreement immunized Perez-Gonzalez from contempt proceedings. Although he presented a reasonable interpretation of the agreement, he has not proved that the state appellate court’s alternative interpretation was unreasonable; the agreement contained no express or implied promise that the state would not bring contempt charges. Perez‐Gonzalez must do more than provide an alternative reading of the plea agreement. View "Perez-Gonzalez v. Lashbrook" on Justia Law

In this case alleging several violations of federal and state discrimination laws the First Circuit affirmed the decision of the district court denying Defendant’s motion to stay the proceedings in district court and compel arbitration, holding that the contract to arbitration in between the parties was unenforceable.Plaintiffs - several individuals and the National Federation of the Blind - filed a complaint alleging that Defendant - the Container Store, Inc. - failed to utilize tactile keypads on its point-of-sale devices in its stores that could independently be used by customers who are blind in violation of federal and state discrimination laws. Defendant moved to compel arbitration, citing an arbitration provision in the terms and conditions of a loyalty program of which the individual plaintiffs were members. The district court denied the motion. The First Circuit affirmed, holding (1) based upon the lack of evidence that the in-store plaintiffs had any knowledge that arbitration terms applied to their enrollment in the loyalty program, Defendant failed to establish that an agreement to arbitrate was consummated between it and three of the four individual plaintiffs; and (2) the district court did not err in finding that the loyalty program agreement was illusory and therefore void. View "National Federation of the Blind v. Container Store, Inc." on Justia Law

Plaintiffs, licensed taxi and limousine operators, sued under 42 U.S.C. 1983, challenging an agreement between Newark and Uber as violating their rights under the Takings, Due Process, and Equal Protection Clauses. In order to operate in Newark without taxi medallions or commercial driver’s licenses, setting its own rates, Uber agreed to pay the city $1 million per year for 10 years; to provide $1.5 million in liability insurance for each of its drivers; to have a third-party provider conduct background checks on its drivers. The Third Circuit affirmed the dismissal of the suit. The agreement places the plaintiffs in an “undoubtedly difficult position” but the situation cannot be remedied through constitutional claims. Even if plaintiffs have a legally cognizable property interest in the medallions themselves, they remain in possession of and able to use their taxi medallions to conduct business. The decrease in the market value of the medallions is not sufficient to constitute a cognizable property interest necessary to state a claim under the Takings Clause. The city controls the number of medallions in circulation and maintains the ability to flood the market with medallions. With respect to equal protection, it is rational for the city to determine that customers require greater protections before accepting a ride from a taxi on the street than before accepting a ride where they are given the relevant information in advance. View "Newark Cab Association v. City of Newark" on Justia Law

Kenosha used Comsys as its information-technology department. Comsys had its offices inside City Hall and stored its electronic information on the City’s servers. Their contract automatically renewed from year to year unless terminated, and provided that either party “shall have the right, with or without cause, to terminate the Agreement by written notice delivered to the other party at least twelve (12) calendar months prior to the specified effective date of such termination.” In 2014, hostilities broke out between the parties: a Comsys employee because a city employee with plans to bring the IT department in-house and there were allegations of stolen email and a search of the servers. The City’s Common Council voted to end the contract. The Mayor delivered formal notice days later. The contract ended a year later. Comsys sued, alleging First and Fourth Amendment violations. The district court dismissed several claims on the pleadings and dismissed the Council’s members on the ground of legislative immunity but denied motions for summary judgment on the First and Fourth Amendment claim and official immunity claims by the Mayor, City Administrator, and the City Manager. The Seventh Circuit reversed as to those officials, finding that they did not violate clearly established law and cannot be ordered to pay damages under 42 U.S.C. 1983, and noting that trying to isolate contract administration from speech may be impossible in this situation. View "Comsys Inc. v. Pacetti" on Justia Law

Exercising jurisdiction over Defendant-insurer under the circumstances of this case was permitted by Connectictut’s corporate long arm statute, Conn. Gen. Stat. 33-929(f)(1), and comported with the due process clause of the Fourteenth Amendment.Defendant issued an automobile insurance policy covering a vehicle driven by Insured. The policy was written in New York at Defendant’s principal place of business, and Defendant did not direct or participate in any business transactions in Connecticut at the time. The coverage territory of the policy included Connecticut. Insured’s vehicle later collided with a vehicle occupied by Plaintiffs. A judgment was rendered against Insured in favor of Plaintiffs. Defendant failed to defend Insured or to indemnify him for the judgment rendered against him. Plaintiffs then brought this action against Defendant. Defendant moved to dismiss the action for lack of personal jurisdiction. The trial court granted the motion to dismiss. The Supreme Court reversed, holding that Defendant’s agreement to defend and indemnify Insured established personal jurisdiction under the long arm statute and that subjecting Defendant to the jurisdiction of this state comported with the due process clause of the Fourteenth Amendment. View "Samelko v. Kingstone Insurance Co." on Justia Law

The First Circuit vacated in part the district court’s grant of summary judgment in Defendants’ favor on Plaintiffs’ claims seeking compensatory damages, declaratory relief, a permanent injunction, and expungement of disciplinary proceedings from a student’s university records.John Doe was accused of sexually assaulting a fellow Boston College student. In 2012, Boston College held disciplinary proceedings against Doe, and an Administrative Hearing Board found Doe responsible for the lesser offense of indecent assault and battery. In 2014, Boston College conducted an independent review of the disciplinary proceedings and determined that the Board’s finding was proper. Doe and his parents filed a lawsuit against Trustees of Boston College and several university officials. The district court granted summary judgment in favor of Defendants on all counts. The First Circuit (1) affirmed the district court’s grant of summary judgment as to Plaintiffs’ breach of contract claim for the 2014 review and Title IX, negligence, and negligent infliction of emotional distress claims; and (2) vacated the grant of summary judgment as to Plaintiffs’ breach of contract claim for the 2012 disciplinary proceedings, where there were genuine issues of material fact on this claim, and basic fairness claim, where the grant of summary judgment on this claim rested on the court’s analysis as to Plaintiffs’ breach of contract claim. View "Doe v. Trustees of Boston College" on Justia Law