Justia Contracts Opinion Summaries
Articles Posted in Constitutional Law
Mortensen, et al. v. Bresnan Communications, LLC
Plaintiffs brought a putative class action against Bresnan alleging violations of the Electronic Communications Privacy Act, 18 U.S.C. 2520-21, the Computer Fraud and Abuse Act, 18 U.S.C. 1030, and Montana state law for invasion of privacy and trespass to chattels in connection with targeted advertising they received while using Bresnan's Internet service. The district court declined to enforce a choice-of-law clause in the service subscriber agreement, provided to all Bresnan customers, specifying that New York law should apply, and an arbitration clause. The court held that AT&T Mobility LLC v. Concepcion further limited the savings clause in the Federal Arbitration Act (FAA), 9 U.S.C. 1-2 et seq., and therefore, the court held that the FAA preempted Montana's reasonable expectations/fundamental rights rule and that the district court erred in not applying New York law because a state's preempted public policy was an impermissible basis on which to reject the parties' choice-of-law selection. Accordingly, the court vacated the district court's denial of Bresnan's motion to compel arbitration and remanded to the district court with instructions to apply New York law to the arbitration agreement. View "Mortensen, et al. v. Bresnan Communications, LLC" on Justia Law
Brown v. United Airlines, Inc.
These consolidated appeals comprised two putative class actions brought by skycaps affiliated with two major airlines. After Defendants, the airlines, each introduced a $2 per bag fee for curbside service for departing passengers at airports that did not inure to the benefit of the skycaps, Plaintiffs sued the airlines for unjust enrichment and tortious interference, among other claims. The district court dismissed the unjust enrichment and tortious interference claims as preempted by the Airline Deregulation Act (ADA). Plaintiffs appealed, contending that the ADA does not preempt common-law claims. The First Circuit Court of Appeals affirmed after an analysis of statutory language, congressional intent, and case law, holding that the ADA preempted Plaintiffs' common-law claims. View "Brown v. United Airlines, Inc." on Justia Law
Engle v. Elm Ridge Exploration Co.
A dispute arose between Elm Ridge Exploration Company, LLC, an operator of oil and gas leases in New Mexico, and Fred Engle, who owned a majority of those leases. Elm Ridge sought to recover drilling expenses by foreclosing on Engle's lease interests. Engle counterclaimed, arguing that Elm Ridge had no authority to operate, and broadly that Elm Ridge breached its contractual and fiduciary duties. Engle also filed a third-party complaint against the previous operators, Central Resources, Inc. and Giant Exploration & Production Company. The district court dismissed two counts on Engle's counterclaim against Elm Ridge and the third-party complaint on statute of limitations grounds. After a trial on Engle's remaining counterclaim count (breach of contractual and fiduciary duties), a jury found that Elm Ridge breached the Operating Agreement and could not recover drilling expenses. The jury found that Engle still owed Elm Ridge for other drilling costs. The district court calculated Engle's share of the costs not attributable to the breach, and held Elm Ridge was entitled to a foreclosure order. Both parties appealed. Finding no error in the district court's calculation or ultimate disposition of the case, the Tenth Circuit affirmed.
View "Engle v. Elm Ridge Exploration Co." on Justia Law
Patterson v. Infinity Insurance Co.
Appellant Tommie Patterson was involved in a motor vehicle accident. His insurance company paid his medical providers to the policy limit. Two years later, Appellant sued the insurance company, arguing it had shown bad faith following the accident. The company moved for summary judgment, which was granted. A month after that decision, Appellant filed a second lawsuit, alleging the company falsely advertised its services, breached his insurance contract, embezzled money from him, falsified documents and threatened to make him at fault for the accident. The company moved for summary judgment again, which was granted. After review, the Supreme Court concluded that because Appellant's embezzlement claim in the second lawsuit alleged a different cause of action than in the first, the trial court improperly granted summary judgment with regards to that claim. All other claims were barred by res judicata. Therefore the Supreme Court affirmed the trial court in all other respects. View "Patterson v. Infinity Insurance Co." on Justia Law
Lopez v. Admin Office of the Court
Plaintiff-Appellant George Lopez conducted mediations in a program created and managed by the Administrative Office of Courts of the State of Utah. In 2006, he was removed from the panel of mediators that mediated certain domestic matters. Plaintiff brought suit in federal district court alleging that his removal from that list of mediators violated his right to due process and his right to equal protection of the laws in violation of 42 U.S.C. 1983. He also alleged breach of contract, breach of implied contract, and breach of the implied covenant of good faith and fair dealing. Upon review of the district court's grant of summary judgment in favor of defendants, the Tenth Circuit found that because Plaintiff's primary argument was based on his alleged contractual rights as a public employee, and because the Court found that there was no implied contract (because evidence in the record revealed Plaintiff was not a public employee), Plaintiff's arguments necessarily failed.
View "Lopez v. Admin Office of the Court" on Justia Law
Cappiello v. ICD Publ’ns, Inc.
This suit stemmed from plaintiff's suit for breach of contract against his former employer, ICD, and tortious interference with contract against ICD's president. On appeal, plaintiff challenged the district court's order, which amended a judgment to provide that plaintiff was entitled to post-judgment interest at the rate set forth in 28 U.S.C. 1961, contending that he was entitled to a post-judgment interest at the rate set forth in C.P.L.R. 5004. The court concluded that plaintiff was entitled to .25% post-judgment interest where section 1961's plain terms governed the rate of post-judgment interest applicable in this case. Accordingly, the district court correctly and constitutionally applied section 1961, notwithstanding that the judgment had been entered in a diversity action and had been docketed by plaintiff in a New York state court. View "Cappiello v. ICD Publ'ns, Inc." on Justia Law
Supportive Solutions, LLC v. Elec. Classroom of Tomorrow
Appellant was a political subdivision for purposes of the governmental-immunity provisions of Ohio Rev. Code 2744. Appellee sued Appellant, asserting several claims. Appellant filed a motion for partial summary judgment, claiming political-subdivision immunity. Appellant then unsuccessfully sought to file an amended answer raising political-subdivision immunity as an affirmative offense. Thereafter, the trial court granted summary judgment to Appellant on two of Appellee's claims. After Appellant appealed the trial court's denial of leave to file an amended answer, the case proceeded to trial. The jury returned a verdict in favor of Appellee on two of its remaining claims. Appellant filed a second appeal from the judgment. While Appellant's appeals were pending, the Supreme Court held that Appellant's first appeal divested the trial court of jurisdiction to proceed with a trial of any claim subject to the political-subdivision immunity defense. The court of appeals subsequently dismissed Appellant's appeals for lack of jurisdiction. The Supreme Court reversed, holding (1) the trial court's denial of Appellant's motion for leave to file an amended answer to raise the affirmative defense of political-subdivision immunity precluded Appellant from enjoying the benefits of the alleged immunity; and (2) the court of appeals therefore possessed jurisdiction to determine Appellant's appeal of that order.
View "Supportive Solutions, LLC v. Elec. Classroom of Tomorrow" on Justia Law
Empire State Chapter of Associated Builders & Contractors v. Smith
The Wicks Law requires public entities seeking bids on construction contracts to obtain separate specifications for three subdivisions of the work to be performed. Until 2008 when the law was amended to raise the threshold, the Wicks Law applied to contracts whose cost exceeded $50,000. The new, higher thresholds, unlike the old one, were not uniform throughout the State. Plaintiffs claimed, inter alia, that the amendments violated the Home Rule section of the State Constitution by unjustifiably favoring the eight counties with higher thresholds. Supreme Court dismissed the complaint, holding that Plaintiffs lacked standing to assert the Home Rule cause of action and that, in any event, the challenged amendments did not violate the Home Rule section because they "were enacted in furtherance of and bear a reasonable relationship to a substantial State-wide concern." The Appellate Division affirmed. The Court of Appeals affirmed as modified, holding (1) at least one plaintiff had standing to assert the Home Rule claim, but that claim failed on the merits; and (2) most of Plaintiffs' other claims failed, but four causes of action challenging the apprenticeship requirements as applied to out-of-state contracts should be reinstated. View "Empire State Chapter of Associated Builders & Contractors v. Smith" on Justia Law
Wood v. Safeway Insurance Co.
Defendants Pam Wood, David Wood, Justin Wood, Josh Wood and Jacob Wood filed an interlocutory appeal for the Supreme Court to determine whether the circuit court abused its discretion in denying their motion to transfer this case to another county. The underlying case involved a car accident in which a question arose over who was covered by an insurance policy. Defendant Pam Wood applied for the coverage in Covington County; the application was faxed from an insurance agent's office in Covington to Plaintiff Safeway Insurance Company's Rankin County office where it was approved. Safeway opposed the transfer of venue. Upon review, the Supreme Court concluded that Safeway could not demonstrate sufficient facts to support that venue was proper in Rankin County. Therefore the Court reversed the circuit court's order and remanded the case with instructions to transfer it to a permissible venue. View "Wood v. Safeway Insurance Co." on Justia Law
Honeycutt v. Coleman
Plaintiff Charles Honeycutt was injured in an automobile accident involving a Mississippi state trooper. He sued the state trooper and two automobile-insurance providers, Atlanta Casualty Company and American Premier Insurance Company. The trial court granted the defendants' motions for summary judgment. On appeal, the Court of Appeals affirmed the trial court's grant of summary judgment. Plaintiff filed a writ of certiorari, seeking to appeal the grant of summary judgment for American Premier: (1) whether the trial court and the Court of Appeals erred by finding an insurance agent does not have a duty to explain uninsured-motorist coverage; (2) whether summary judgment was granted improperly. The Supreme Court found that, in order to obtain a knowing and voluntary waiver of uninsured-motorist coverage (UM coverage), an insurance agent does have a duty to explain UM coverage to the insured. The Court also found that summary judgment was not proper in this case. Thus, the Court reversed both lower courts' judgments and remanded the case back to the trial court for further proceedings.
View "Honeycutt v. Coleman" on Justia Law