Justia Contracts Opinion Summaries

The Supreme Court affirmed in part and reversed and remanded in part the judgment of the appellate court reversing the judgment of the trial court granted Defendants’ special motions to strike the second through sixth causes of action advanced by Plaintiffs in Plaintiffs’ dispute with the City of Carson and other defendants, holding that some of Plaintiffs’ causes of action were based on protected activities under Cal. Code Civ. Proc. 425.26(e)(2) and (e)(4) but others were not.After Plaintiffs brought this lawsuit Defendants responded by making a motion under the anti-SLAPP statute. The Supreme Court held that the causes of action asserted in Plaintiffs’ dispute with Defendants did not arise from Defendants’ acts in furtherance of their right of free speech in connection with a public issue with the exception of two discrete claims, which were within the scope of subdivision (e)(2) and (e)(4) of the anti-SLAPP statute, thus affirming in part and reversing in part the appellate court’s judgment. View "Rand Resources, LLC v. City of Carson" on Justia Law

The First Circuit affirmed the order of the district court dismissing Plaintiff’s contract and tort claims for lack of personal jurisdiction, holding that the federal court in Puerto Rico lacked personal jurisdiction over Defendants.Plaintiff, a Puerto Rico tour company, brought this diversity suit in the United States District of Puerto Rico, alleging that a California youth soccer organization and related defendants breached duties that the organization owed to Plaintiff under Puerto Rico contract and tort law. The allegations centered around Defendants’ acts of first requesting that Plaintiff make an offer for a potential soccer trip to Puerto Rico for some of the organization’s teams and their families and then declining after further communications to book the tour. The district court dismissed the claims for lack of personal jurisdiction. The First Circuit affirmed, holding that the exercise of specific jurisdiction in the forum over the out-of-forum defendants did not conform to the federal constitutional test. View "PREP Tours, Inc. v. American Youth Soccer Organization" 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

At issue was various statutory amendments to the Kentucky Affordable Prepaid Tuition Fund (KAPT) contracts previously purchased by Appellants.The Court of Appeals reversed the judgment of the trial court concluding that the 2014 statutory changes affecting the 2003 contracts for prepaid college tuition entered into by Maze and the Board did not alter Appellants’ contracts, concluding that Appellants had expressly agreed to be bound by amendments to the contracts imposed by future statutory and regulatory changes. The Supreme Court reversed, holding (1) the KAPT contracts entered into by Appellants, and the underlying enabling statutes, did not authorize the contractual changes imposed by the retroactive application of the statutory amendments at issue in this case; and (2) the retroactive imposition of those amendments upon Appellants unlawfully impaired their contracts in violation of U.S. Const. art. I, 10 and Ky. Const. 19. View "Maze v. Board of Directors for the Commonwealth Postsecondary Education Prepaid Tuition Trust Fund" on Justia Law

The Supreme Court affirmed the district court’s denial of Defendant’s motion to vacate and the subsequent reinstatement of the sentences originally ordered, holding that the district court did not err by not addressing Defendant’s constitutional challenge.In this procedurally complex case, Defendant’s original sentences were reinstated by the district court, and Defendant’s motion to vacate his conviction for discharge of a firearm in certain cities, villages, and counties under Neb. Rev. Stat. 28-1212.04 on the grounds that the statute was unconstitutional on its face was denied. Defendant appealed the denial of his motion to vacate. The Supreme Court affirmed, holding that the district court did not err in failing to consider the merits of Defendant’s federal equal protection challenge on the basis of state procedural grounds. View "State v. Washington" 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

The Church’s Deacons recommended Lee as pastor under a 20-year agreement, subject to for-cause early termination. If the Church removed Lee without cause, it would be required to pay Lee salary and benefits for the unexpired term. The agreement specified that Lee could be terminated for cause if he “commits any serious moral or criminal offense” or if he became incapacitated; it allowed either party to terminate upon “material breach.” During a 2013 congregation meeting, Lee stated that “just cause” would occur if the Church was "not growing ... stagnant, ... not a better place,” and that “if [he did not] perform [his] duties well, [he would be] out.” Based on these statements, the congregation approved the agreement. In December 2014, Church leaders recommended voiding the employment contract, reporting that from 2013-14, there was a 39% decline in offerings, a 32% drop in Sunday worship attendance, a 61% decrease in registered members, a doubling of expenditures, and a decline in the quality of community outreach. Lee had scheduled but cancelled several meetings to discuss these issues. The congregation voted to terminate Lee’s employment. Lee sued, alleging breach of contract due to termination without cause, seeking $2,643,996.40 in damages. The Third Circuit affirmed rejection of the suit on summary judgment. Adjudication of Lee’s claim would impermissibly entangle the court in religious doctrine in violation of the First Amendment’s Establishment Clause. View "Lee v. Sixth Mount Zion Baptist Church of Pittsburgh" 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

The Supreme Court may question a university’s decision to suspend a tenured faculty member and must not defer to the university’s procedure for suspending and dismissing tenured faculty members.Marquette University suspended Dr. John McAdams, a tenured faculty member, because of a blog post. McAdams brought a breach of contract claim against the University, arguing that the parties' contract guaranteed the right to be free of disciplinary repercussions under the circumstances of this case. The University argued that courts may not question its decision so long as the University did not abuse its discretion, infringe any constitutional rights, act in bad faith, or engage in fraud. The circuit court concluded that it must defer to the University’s resolution of McAdams’ claims. The Supreme Court reversed, holding (1) the University’s internal dispute resolution process is not a substitute for McAdams’ right to sue in Wisconsin courts; and (2) the University breached its contract with McAdams when it suspended him for engaging in activity protected by the contract’s guarantee of academic freedom. View "McAdams v. Marquette University" on Justia Law