Justia Contracts Opinion Summaries

The First Circuit vacated the judgment of the district court dismissing Plaintiff's complaint seeking to recoup assets purportedly gifted to a charitable institution for less than adequate consideration by Plaintiff's ex-husband, holding that the district court erred by dismissing Plaintiff's claims on the basis that she lacked standing.Janet and Robert Foisie entered into a divorce settlement agreement in which each party agreed to a mutually acceptable split of assets. When Janet discovered that Robert had fraudulent transferred several million dollars to the Worcester Polytechnic Institute (WPI), Janet brought a civil action against WPI asserting claims of actual and constructive fraudulent transfers under both the common law and Connecticut's version of the Uniform Fraudulent Transfer Act (UFTA). The district court dismissed the complaint. The First Circuit vacated the judgment, holding (1) Janet easily satisfied the three elements of Article III standing, and her claims were ripe; (2) a choice-of-law analysis would be better performed on a more fully developed factual record; (3) the district court erred by dismissing Janet's UFTA claims on the basis that she lacked standing as a creditor; (4) the dismissal of Janet's common law claims on preemption grounds cannot stand; and (5) Janet's UFTA and common law claims were adequately pleaded. View "Foisie v. Worcester Polytechnic Institute" on Justia Law

In this action challenging an ordinance passed in 2011 requiring retirees from the City's police and fire departments to enroll in the federal Medicare program upon reaching the age of eligibility instead of continuing to have the City pay for their private health insurance for life the Supreme Court affirmed in part and vacated in part the final judgment of the superior court in favor of the City, holding that the trial judge misconceived the evidence with respect to the health care benefits that Plaintiffs were receiving from the City.Most police or firefighter retirees filed suit challenging the ordinance, and many settled. Some retirees opted out of the settlement and pursued their claims through a bench trial. The trial justice found in favor of the City. The Supreme Court held (1) with respect to Plaintiffs' claims for breach of contract, violation of the Takings Clause, and promissory estoppel, the superior court's judgment was proper; and (2) as to Plaintiffs' Contract Clause claims, the trial justice overlooked or misconceived evidence in several crucial respects. The Court remanded the case with instructions to enter judgment consistent with the provisions pertaining to the Medicare Ordinance as set forth in the final and consent judgment in the lawsuit from which Plaintiffs opted out. View "Andrews v. Lombardi" on Justia Law

In this case challenging the City of Providence's ordinance suspending annual cost-of-living-adjustments (COLAs) for retired members of its police and fire departments until the pension fund achieved a seventy percent funding level the Supreme Court affirmed in part, vacated in part, and reversed in part the trial court judgment in favor of the City, holding that the pension ordinance was unenforceable as to certain plaintiffs.After the City enacted its ordinance in retiree groups and union groups initiated litigation to bar enforcement of the ordinance. Most retirees entered into a settlement that ripened into a consent judgment. Several individuals who opted out of the settlement agreement brought this suit. The trial justice entered judgment for the City. The Supreme Court affirmed in part and vacated in part, holding (1) the superior court correctly entered summary judgment on Plaintiffs' claims under the Takings Clause and for promissory estoppel; (2) with respect to the plaintiffs who were also a party in prior litigation regarding their COLA benefits and who were included in an earlier consent judgment or individual settlement agreement, the pension ordinance was unenforceable; and (3) with respect to Plaintiffs' challenge to the pension ordinance based upon the Contract Clause, the judgment is vacated. View "Andrews v. Lombardi" on Justia Law

The Supreme Court reversed the decision of the court of appeals holding that a forum-selection clause in a contract bound all involved parties even where the only signatories did not assert any claims against one another, holding that the court of appeals erred in construing the contract containing the forum-selection clause and a contract that did not as a single, unified instrument and by applying the transaction-participant enforcement theory.Personal jurisdiction over two nonresident individuals and a nonresident LLC was premised on a forum-selection clause in a contract the nonresident LLC executed with a resident LLC. A signatory LLC sought to enforce the clause against nonsignatory individuals, and nonsignatory individuals sought to enforce the clause against nonsignatory individuals and a signatory LLC. The court of appeals concluded that all defendants were amenable to suit in Texas regardless of their status as a signatory. The Supreme Court reversed, holding (1) the separately executed instruments considered by the court of appeals were not part of a single, unified instrument and, therefore, must be construed separately; and (2) the transaction participant enforcement theory relied upon by the court of appeals was inapplicable. View "Rieder v. Woods" on Justia Law

In this case concerning arbitration agreements, nursing homes, and wrongful death claims under Massachusetts law, the First Circuit affirmed the judgment of the district court compelling arbitration after first certifying two questions to the Massachusetts Supreme Judicial Court (SJC), holding that the SJC's decision compelled the First Circuit to affirmed the judgment compelling arbitration.The personal representative of a deceased former nursing home resident brought a state wrongful death action against a set of organizations that oversaw the nursing home (collectively, nursing home). The nursing home sued to compel arbitration. The federal court compelled arbitration. On appeal, the personal representative argued that she was not bound by the decedent’s agreement to arbitrate with the nursing home because her wrongful death right of recovery was independent of the decedent’s wrongful death claim. The First Circuit certified questions of law to the SJC. After the SJC answered that claims of statutory beneficiaries under the state's wrongful death statute are derivative of the decedent's own cause of action, the First Circuit affirmed the district court's judgment, holding that the SJC's decision required this Court to affirm the judgment compelling arbitration. View "GGNSC Chestnut Hill LLC v. Schrader" on Justia Law

The National Credit Union Administration Board ("NCUAB"), the self-appointed conservator of Citizens Community Credit Union ("Citizens"), repudiated a letter of credit Citizens issued to Granite Re, Inc. Granite filed a complaint for damages against the NCUAB, claiming wrongful repudiation and wrongful dishonor of a letter of credit. The NCUAB moved to dismiss with prejudice, arguing 12 U.S.C. 1787(c) authorized it to repudiate the letter of credit with no liability for damages, and section 1787(c) preempted conflicting North Dakota Law. The district court agreed and dismissed the complaint. The Eighth Circuit determined that were it to adopt the NCUAB's construction of section 1787(c), the NCUAB could "quietly appoint itself conservator and repudiate letters of credit with no liability to the injured beneficiary. Absent the ability to predict an impending conservatorship, a clean letter-of-credit beneficiary like Granite is subject to repudiation with no recourse." The Court determined NCUAB's construction was inconsistent with the language of the statue, which provided a limited remedy for damages determinable at the point of conservatorship, but did not negate recovery entirely. The Court also determined it was premature to declare section 1787(c) preempted North Dakota law. The Court reversed the trial court's judgment and remanded for further proceedings. View "Granite Re, Inc. v. Nat'l Credit Union Adm. Board" on Justia Law

In this complaint seeking to have the Attorney General preliminarily and permanently enjoined from distributing monies received pursuant to an agreement between the Attorney General and Smithfield Foods, Inc. and several of its subsidiaries regarding the operation of hog farms to any recipient other than the Civil Penalty and Forfeiture Fund, the Supreme Court held that the payments contemplated by the agreement did not constitute penalties for purposes of N.C. Const. art. IX, 7.In their complaint, Plaintiffs argued that payments made pursuant to the agreement constituted penalties under article IX, section 7 and that the Attorney General lacked the authority to enter into the agreement. The trial court entered summary judgment in favor of the Attorney General, concluding that even if Smithfield and its subsidiaries had entered into the agreement in hope of avoiding future penalties, the payments made under the agreement were not penalties, forfeitures or fines collected for any breach of the penal laws of the State. The court of appeals reversed, concluding that genuine issues of material fact existed precluding summary judgment. The Supreme Court reversed, holding that the payments contemplated by the agreement did not constitute penalties for purposes of article IX, section 7. View "New Hanover County Board of Education v. Stein" on Justia Law

The Supreme Court affirmed the order of the district court certifying three classes of more than 30,000 ratepayers of the City of Billings who challenged certain franchise fees that the City imposed on water, wastewater, and solid waste disposal services, holding that the district court did not abuse its discretion when it certified the classes.After the City ceased imposing the franchise fees in 2018 the Ratepayers sued the City alleging that the fees constituted unlawful sales taxes. Ratepayers brought claims for breach of contract and constitutional due process violations. The Ratepayers sought class action certification for those similarly situated persons who paid the water and wastewater fees since 2010 and the sold waste disposal fees since 2012. The district court granted the motion and certified three classes. The Supreme Court affirmed, holding that the district court did not err when it certified the classes under Mont. R. Civ. P. 23(b)(3). View "Houser v. City of Billings" on Justia Law

In this case examining whether the former version of the Texas Citizens Participation Act (TCPA) applies to certain counterclaims alleged in a dispute over an oil and gas lease the Supreme Court affirmed in part and reversed in part the judgment of the court of appeals dismissing all the counterclaims in this case, holding that the court of appeals properly dismissed one counterclaim but erred in dismissing the remaining counterclaims.At issue was whether each counterclaim was "based on, relates to, or is in response to" the "exercise of the right of free speech" or the "exercise of the right to petition," as defined by the governing statutory text. See Tex. Civ. Prac. & Rem. Code 27.003(a). The Supreme Court held (1) certain communications to third parties about an oil and gas lease allegedly involving the exercise of free speech, on which some of the counterclaims were based, were not covered by the TCPA because they did not relate to a matter of public concern under the TCPA, and therefore, the court of appeals erred in dismissing these counterclaims; and (2) the court of appeals correctly disposed of the "right to petition" counterclaim. View "Creative Oil & Gas, LLC v. Lona Hills Ranch, LLC" on Justia Law

The Court of Appeal affirmed the trial court's dismissal of the school district's cross-complaint under the anti-SLAPP statute. In the underlying action, Margaret Williams and her LLC filed suit against the school district, alleging that her termination was retaliatory. Williams also alleged that the school district unlawfully caused her arsenic poisoning.The court explained that, if the court were to enforce the school district's request, the indemnity provision would require Williams LLC to fund the school district's defense against the very litigation the LLC and Williams brought against the school district. Therefore, the school district's cross-complaint arose from that litigation or the LLC's refusal to sabotage it -- each of which was protected by the anti-SLAPP statute. Furthermore, the school district sought to require the LLC not only to fund the school district's defense, but also to reimburse the school district for any award secured by Williams or the LLC. The court explained that such a bar to meaningful recovery embodied a high degree of substantive unconscionability, sufficient -- when combined with the procedural unconscionability shown through Williams LLC's unrebutted evidence of adhesion, oppression, and surprise -- to establish that the indemnity provision was unconscionable. The court limited the provision to avoid an unconscionable result, and held that the school district failed to show error in the dismissal of the breach of contract and declaratory relief claims, as well as the dismissal of the school district's other cross-claims. View "Long Beach Unified School District v. Margaret Williams, LLC" on Justia Law