Justia Contracts Opinion Summaries

This case was remanded from the U.S. Supreme Court. Appellants Keith Litman and Robert Watchel asked the Third Circuit to reverse a district court order that compelled them to arbitrate their contract dispute with Cellco Partnership (d/b/a Verizon Wireless) on an individual rather than class-wide basis. In an unpublished opinion, the Third Circuit vacated the district court order because a recent Third Circuit precedent bound the Court to conclude that class arbitration should have been available to Appellants. Verizon responded by seeking a stay of the mandate and seeking review by the Supreme Court. Having reviewed the supplemental briefing and applicable legal authority, the Third Circuit concluded that the applicable law at issue that required the availability of classwide arbitration created a scheme inconsistent with the Federal Arbitration Act. Accordingly, the Court affirmed the district courtâs order compelling individual arbitration in accordance with the terms of the individual Appellantsâ contracts with Verizon.

Defendant, a technology company that sold data centers, appealed the district court's judgment on a jury verdict in favor of plaintiff, a company that purchased defendant's fiber management systems and intelligent fiber systems, in plaintiff's suit for breach of contract and fraudulent inducement. At issue was whether the district court erred in denying its motion for judgment as a matter of law. The court held that because plaintiff failed to present sufficient evidence that defendant had no intent to perform under the "best efforts" provision of the contract and failed to present any evidence of damages on its other claim, the judgment of the district court was reversed and remanded to the district court to enter judgment in favor of defendant. Accordingly, the court did not reach the other issues raised by defendant on appeal.