Justia Contracts Opinion Summaries

Following the outbreak of COVID-19 in early 2020, Los Angeles imposed an eviction moratorium during a “Local Emergency Period” with the stated purposes of ensuring housing security and promoting public health during the pandemic. Related provisions delay applicable tenants’ rent payment obligations and prohibit landlords from charging late fees and interest. A trade association of Los Angeles landlords, sued, alleging violations of the Constitution’s Contracts Clause.The Ninth Circuit affirmed the denial of the plaintiff’s request for preliminary injunctive relief, noting that other courts, including the Supreme Court, have recently considered various constitutional and statutory challenges to COVID-19 eviction moratoria. Under modern Contracts Clause doctrine, even if the eviction moratorium was a substantial impairment of contractual relations, the moratorium’s provisions were likely “reasonable” and “appropriate” given the circumstances of the COVID-19 pandemic. The city fairly tied the moratorium to its stated goals. The court noted that contemporary Supreme Court case law has severely limited the Contracts Clause’s potency. View "Apartment Association of Los Angeles County, Inc. v. City of Los Angeles." on Justia Law

The Court of Appeal vacated and remanded the trial court's order granting respondent's anti-SLAPP motion to strike Brighton's cross-claim for fraud. The parties' dispute stemmed from a contract between respondent and Brighton where Brighton would pay respondent $3,000 for a one-day photo shoot. Respondent filed suit against Brighton, alleging that the company failed to pay her immediately upon completion of the photoshoot. Brighton cross-complained, asserting claims for declaratory relief and fraud.The court concluded that, even if it were to assume that respondent met her burden of showing that Brighton's cross-claim for fraud arose from protected conduct, reversal is required because Brighton has shown a probability that it will prevail on its claim. In this case, the evidence submitted shows that Brighton's fraud cross-claim has the requisite minimal merit where Brighton submitted evidence that respondent made a misrepresentation when she told the company to pay LA Models for her services during the photoshoot upon receipt of an invoice rather than immediately upon her "termination" as an employee when the shoot concluded; it can be inferred that plaintiff knew that misrepresentation was false based on her actions, she intended for Brighton to rely on her misrepresentation, and Brighton justifiably did so; and reliance on respondent's misrepresentation damaged Brighton by exposing it to $90,000 in waiting-time penalties plus attorney fees and costs— in addition to the costs Brighton incurred in defending itself against her lawsuit. View "Brighton Collectibles, LLC v. Hockey" on Justia Law

The United States Court of Appeals for the Eleventh Circuit certified to three questions of law to the Georgia Supreme Court relating to a lawsuit brought in federal district court by Fife Whiteside, the trustee of the bankruptcy estate of Bonnie Winslett. Whiteside sued GEICO to recover the value of Winslett’s failure-to-settle tort claim against GEICO so that the bankruptcy estate could pay creditor Terry Guthrie, who was injured in an accident caused by Winslett. The certified questions certified asked the Supreme Court to analyze how Georgia law applied to an unusual set of circumstances that implicated both Winslett’s duty to give GEICO notice of suit and GEICO’s duty to settle the claim brought against Winslett. The Supreme Court was unable to give unqualified “yes” or “no” answers to two of the certified questions as they were posed; rather, the Court answered the questions only in the context of the circumstances of this particular case. "Winslett remains liable to Guthrie, even if her bankruptcy trustee succeeds on the failure-to-settle claim against GEICO; therefore, if the bankruptcy estate does not recover enough from GEICO to satisfy Guthrie’s judgment, the estate would not be fully compensated for Winslett’s damages, and GEICO would escape responsibility for breaching its settlement duty to Winslett. Such an outcome would deny Winslett the full measure of compensatory damages allowed under Georgia law." View "GEICO Indemnity Co. v. Whiteside" on Justia Law

The Supreme Court reversed the judgment of the court of appeals with respect to Plaintiff's constitutional claims, holding that a state university's dismissal of a student for poor academic performance does not implicate a liberty or property interest protected by the Texas Constitution's guarantee of due course of law.Plaintiff was dismissed from Texas Southern University's Thurgood Marshall School of Law after one year due to his failure to maintain the required grade point average. Plaintiff brought this suit against the School, alleging breach of contract and deprivation of his property and liberty without due course of law. The trial court granted the School's plea to the jurisdiction invoking sovereign immunity. The court of appeals reversed in part, concluding that Plaintiff's procedural and substantive due course of law claims were viable. The Supreme Court reversed in part and rendered judgment dismissing the case, holding that an academic dismissal from higher education does not implicate a protected liberty interest. View "Texas Southern University v. Villarreal" on Justia Law

The underlying class action alleged that the Illinois Department of Corrections (IDOC) unlawfully denied hearing-impaired inmates “the assistance they need to communicate effectively and participate in IDOC programs and services.” A 2018 Settlement required IDOC to screen inmates for hearing problems, refer inmates in need to a licensed audiologist for a more thorough audiological evaluation, maintain records of inmates’ evaluations, and provide inmates with care according to the results of their evaluations. For about a year after the court approved the Settlement, IDOC incorrectly referred about 700 inmates to licensed hearing instrument dispensers (LHIDs)—hearing-aid salesmen—instead of audiologists for evaluations. IDOC discontinued the practice in July 2019, based on an out-of-court agreement.In 2020, Plaintiffs moved to enforce the Settlement arguing that IDOC is not ensuring that the audiological evaluations are completed within a reasonable time period and sought attorney fees for the investigation and resolution of the LHID violations. The district court concluded that IDOC was in substantial non-compliance with the Settlement through the LHID violations,, ordered IDOC to pay about $54,000 in attorney fees, and held that the Settlement requires IDOC to ensure the audiological evaluations are completed within a reasonable timeframe, which it defined as 90 days after a referral. The Seventh Circuit affirmed with respect to attorneys’ fees. The district court incorrectly determined that IDOC was obligated to ensure that its inmates receive audiological evaluations within a set timeframe; the Settlement contains no such requirement. View "Holmes v. Godinez" on Justia Law

Plaintiff treated children in the pediatric intensive care unit of a hospital owned by VHS under his professional services agreement with PICCS, which itself operated under a separate coverage agreement with VHS. After PICCS terminated plaintiff, he filed suit alleging claims of race discrimination under Title VII of the Civil Rights Act of 1964 and 42 U.S.C. 1981. The district court granted summary judgment dismissing plaintiff's claims against VHS.The Fifth Circuit affirmed the district court's partial final judgment, concluding that plaintiff's Title VII claim fails for lack of an employment relationship with VHS under either integrated-enterprise or joint-employment theories. The court also concluded that plaintiff's section 1981 claim fails because he cannot identify an impaired contractual right enforceable against VHS. In this case, plaintiff failed to show any contractual right enforceable against VHS under his physician agreement. View "Perry v. VHS San Antonio Partners, LLC" on Justia Law

After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount. View "Tercero v. Texas Southmost College District" on Justia Law

After the University terminated her employment as the head coach of the women's basketball team, plaintiff filed suit alleging violations of Title VII of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, as well as state-law claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and invasion of privacy.The Fifth Circuit affirmed the district court's judgment as to the breach of contract and Title IX claims. The court concluded that judgment in favor of plaintiff on the breach of contract claim was proper where a reasonable jury could have concluded that plaintiff's management of funds did not give the University cause to terminate her employment. Furthermore, the University was not entitled to a new trial on plaintiff's breach of contract claim. In this case, the district court did not abuse its discretion in refusing to provide the requested jury instruction and any error on the district court's part was harmless. In regard to the Title IX claim, the court concluded that denial of plaintiff's jury instruction was not an abuse of discretion or grounds for a new trial. However, the court reversed the district court's judgment as to the privacy claim and concluded that it failed as a matter of law. The court explained that the facts disclosed by the University were of legitimate concern to the public and the district court clearly erred in concluding otherwise. View "Taylor-Travis v. Jackson State University" on Justia Law

The Supreme Court affirmed the decision of the court of appeals reversing the judgment of the chancery court dismissing this complaint against a Texas company for lack of personal jurisdiction, holding that the exercise of specific personal jurisdiction was constitutionally permissible.The Texas company contracted with a Tennessee civil engineering company for services related to the potential construction of a railcar repair facility in Texas. When the Texas company failed to pay in full, the Tennessee company filed a breach of contract action in Tennessee. The chancery court dismissed the complaint, concluding that the Texas company lacked the minimum contacts necessary for the exercise of personal jurisdiction and that requiring the Texas company to litigate in Tennessee would be unreasonable and unfair. The court of appeals reversed. The Supreme Court affirmed, holding (1) the Tennessee company established a prima facie case for the valid exercise of personal jurisdiction over the Texas company; and (2) the exercise of jurisdiction was fair and reasonable. View "Crouch Railway Consulting, LLC v. LS Energy Fabrication, LLC" on Justia Law

The Supreme Court reversed the decision of the court of appeals concluding that the district court committed harmless error in failing to suppress a blood test result, holding that the court of appeals erred when it concluded that Defendant could be guilty of an alternative charge.Following a bench trial on stipulated facts, the district court convicted Defendant of driving with a blood alcohol content of more than 0.08 as measured within three hours of driving. The court of appeals affirmed, holding that, even though the district court should have suppressed the blood test result, the stipulation included facts that supported a conviction on an alternative charge that was not a part of the district court's judgment. The Supreme Court reversed, holding that the court of appeals erred by not considering and applying the conditions that limited the binding nature of the parties' stipulation. View "State v. Braun" on Justia Law