Justia Contracts Opinion Summaries

Kendell Seafood Imports, Inc. and Mark Foods, LLC are both fish importers. Kendell alleged that Mark Foods tortiously interfered with its agreement with Chilean Sea Bass, Inc. (CSB), a fish distributor. According to Kendell, it had arranged with CSB to purchase the distributor’s entire catch for several years, including 2021, and that CSB agreed to roll over an outstanding 2020 balance into the 2021 price. Kendell further claimed that Mark Foods was aware of this agreement and attempted to solicit business from CSB during the same period, thereby interfering with Kendell’s relationship and causing it harm.After Kendell initially sued Mark Foods for tortious interference in the United States District Court for the District of Rhode Island, Mark Foods moved to dismiss the complaint. In response, Kendell filed an amended complaint with similar facts but with additional details about the agreement with CSB. The district court treated the amended complaint as operative and, after considering substantive arguments from both parties, granted Mark Foods’ motion to dismiss with prejudice. The district court found that Kendell’s allegations did not plausibly support three essential elements of tortious interference: the defendant’s knowledge of the contract, intentional interference, and resulting damages.The United States Court of Appeals for the First Circuit reviewed the case on appeal. It held that the district court properly applied the pending motion to dismiss to the amended complaint, as the amendments did not affect the relevant arguments. Applying Rhode Island law, the First Circuit concluded that Kendell had not sufficiently pleaded that Mark Foods knew about the specific agreement with CSB. Because this element was not plausibly alleged, the court affirmed the district court’s order dismissing the case with prejudice. View "Kendell Seafood Imports, Inc. v. Mark Foods, LLC" on Justia Law

Minority shareholders of an Argentine oil and gas company, previously privatized in 1993, became involved in litigation after the Argentine government expropriated a majority stake in the company in 2012. The government’s acquisition of shares was conducted without making a public tender offer to minority shareholders, a process that was explicitly required by the company’s bylaws to protect such shareholders in the event of a takeover. The plaintiffs, consisting of Spanish entities and a New York hedge fund, had acquired significant stakes in the company, and after the expropriation, they claimed that they suffered substantial financial losses due to the government’s failure to comply with the tender offer requirement.The plaintiffs sued in the United States District Court for the Southern District of New York, asserting breach of contract and promissory estoppel claims under Argentine law against both the Argentine Republic and the company. After extensive litigation, the district court found in favor of the plaintiffs on their breach of contract claims against the Argentine Republic, awarding over $16 billion in damages, but granted summary judgment to the company, finding it had no obligation to enforce the tender offer provision. The court also dismissed the promissory estoppel claims.On appeal, the United States Court of Appeals for the Second Circuit held that the plaintiffs' breach of contract damages claims against the Argentine Republic and the company were not cognizable under Argentine law, reasoning that the bylaws did not create enforceable bilateral obligations between shareholders and that Argentine public law governing expropriation precluded such claims. The court affirmed the dismissal of the promissory estoppel claims and judgment in favor of the company, but reversed the judgment against the Argentine Republic, remanding for further proceedings consistent with its opinion. View "Petersen Energía v. Argentine Republic" on Justia Law

GAC Equipment, doing business as Austin Crane Service, hired Diamond Hydraulics to repair a crane’s cylinder, which later bent during a lifting operation. Each party blamed the other: Diamond argued that improper maintenance and operation by Austin Crane caused the failure, while Austin Crane claimed Diamond’s repairs were improper and used unsuitable materials. The dispute intensified during discovery, particularly over Diamond's ability to inspect the cylinder, and both parties made late expert witness designations. As trial approached, Diamond’s designated expert, Dr. Macfarlan, left his job, moved out of state, and refused to testify. Diamond attempted to substitute another expert, Dr. Hoerner, who had participated in preparing the expert report. Austin Crane objected, and the district court denied Diamond’s request to substitute its expert and to continue the trial.The 425th Judicial District Court in Williamson County, Texas, proceeded with the trial without Diamond’s causation expert. The jury found in favor of Austin Crane on both breach of contract and breach of warranty claims. Diamond appealed, arguing that the district court abused its discretion by not allowing the late expert substitution. The Court of Appeals for the Third District of Texas affirmed the trial court’s decision.The Supreme Court of Texas reviewed the case, focusing on whether Diamond showed good cause for its late expert designation under Texas Rule of Civil Procedure 193.6. The Supreme Court held that Diamond demonstrated good cause: the unavailability of Diamond’s original expert was beyond its control, Diamond acted promptly and in good faith to substitute an expert, and the excluded testimony was critical to its case. The Supreme Court concluded that the district court abused its discretion and that disparate treatment was given to the parties’ late designations. The Supreme Court of Texas reversed the court of appeals’ judgment and remanded the case for a new trial. View "DIAMOND HYDRAULICS, INC. v. GAC EQUIPMENT, LLC" on Justia Law

The dispute arose from a contract signed on May 12, 2021, under which Kindra Cooper agreed to purchase a house from Highland Rim Investments, LLC. Delays in closing led the parties to enter into three extensions, but the sale never concluded. Cooper then sued for specific performance, declaratory judgment, and damages, later amending her complaint to add additional defendants and claims, including various forms of misrepresentation and a request to pierce Highland Rim’s corporate veil. During litigation, certain claims were dismissed, and after a jury trial, the jury awarded Cooper compensatory and punitive damages against Highland Rim and Monique Dollone, but found for other defendants on the misrepresentation claims.The Madison Circuit Court entered judgment on the jury's verdict, awarded Cooper attorney fees, granted her motion to pierce the corporate veil as to one defendant, and later appointed a receiver over Highland Rim to preserve its fiscal health until the judgment was satisfied. The defendants moved for post-judgment relief, which was denied, and then appealed both the judgment and the receivership order.The Supreme Court of Alabama reviewed the appeals. It found that the trial court erred by requiring the parties to strike the jury from a list of only 21 prospective jurors, rather than the 24 required by Alabama Rule of Civil Procedure 47(b). This procedural error mandated reversal. The Supreme Court of Alabama held that the trial court’s judgment in favor of Cooper and its order appointing a receiver over Highland Rim must be reversed. The cases were remanded for further proceedings consistent with this opinion. View "Highland Rim Investments, LLC v. Cooper" on Justia Law

Mitchell Glenn Revette sought medical care from Dr. Andrew Mallette at The Surgical Clinic Associates, P.A. for abdominal pain and underwent surgery for diverticulitis in June 2021. He later returned for a follow-up surgery in January 2022, after which he died due to complications related to respiratory depression. His wife, Nitkia Revette, brought a wrongful death and medical negligence lawsuit on behalf of his estate, alleging that negligent anesthesia and pain management led to his death.The defendants, Dr. Mallette and the Clinic, moved to compel arbitration based on an arbitration agreement included in an intake packet mailed to Mitchell. The agreement was signed "Mitchell Revette," but during a hearing in the Hinds County Circuit Court, Nitkia testified that she signed her husband’s name without his knowledge or presence, and she stated she had no authority to sign for him. The Clinic’s staff testified that patients were required to sign such agreements personally. The circuit court found that Mitchell did not sign the arbitration agreement and that Nitkia lacked authority to bind him, thus ruling the agreement unenforceable and denying the motion to compel arbitration.On appeal, the Supreme Court of Mississippi reviewed the circuit court’s findings, applying a deferential standard to factual determinations and de novo review to the denial of arbitration. The Supreme Court affirmed the circuit court’s decision, holding that substantial evidence supported the findings that Nitkia lacked both actual and apparent authority to sign for Mitchell and that there was no basis for binding the estate via direct-benefits estoppel. The case was remanded to the circuit court for further proceedings. View "Mallette v. Revette" on Justia Law

Linda Elam, after suffering significant medical issues including a stroke and complications from cancer treatment, was admitted to a nursing home operated by BLC Lexington SNF, LLC for rehabilitation. Her sister, Bonnie Townsend, acting under a power of attorney, handled the admission process and signed both the admission and an optional arbitration agreement as Elam’s representative. Following further health decline, Elam died, and her estate alleged that her death resulted from negligent care at the facility.After the estate filed suit in Kentucky state court against BLC Lexington and a former administrator, BLC Lexington responded in federal court, seeking to compel arbitration based on the agreement Townsend signed. The United States District Court for the Eastern District of Kentucky compelled arbitration for nearly all claims except wrongful death claims by nonsignatories. An arbitrator, after a week-long hearing, ruled in favor of BLC Lexington on all claims, finding Townsend had not met her burden of proof. The district court then confirmed the arbitration award, denying Townsend’s motions for reconsideration and to vacate the award.On appeal to the United States Court of Appeals for the Sixth Circuit, Townsend argued that compelling arbitration was improper because she did not sign as attorney-in-fact, that the arbitration agreement was indefinite, and that post-arbitration relief was warranted due to alleged arbitrator misconduct and the application of an incorrect legal standard. The Sixth Circuit affirmed the district court’s decisions, holding that the arbitration agreement was enforceable under Kentucky law, Townsend had acted as Elam’s representative, and no intervening change in law or arbitrator misconduct justified vacating the award. The court also found the arbitrator applied the correct evidentiary standard. The judgment of the district court was affirmed. View "BLC Lexington SNF, LLC v. Bonnie Town" on Justia Law

The case concerns a dispute arising from a real estate transaction involving an 80-acre property in Livermore, California. Guinnane Construction Co., Inc. entered into a contract to purchase an interest in the property from the Petersons, after being assigned the DeLimas’ right of first refusal. Defendants, including Edmund Jin, his real estate agent Stephen Marc Chess, and Chess’s firm, interfered with this transaction by negotiating a purchase with the Petersons despite knowledge of the right of first refusal. The Petersons ultimately sold their interest to Jin, prompting Guinnane to file a successful specific performance action against the Petersons and the subsequent conveyance of the property interest to Guinnane.After prevailing in the specific performance action, Guinnane filed a new lawsuit in the Alameda County Superior Court against Jin, Chess, and Chess’s firm, seeking damages for inducement of breach of contract and intentional interference with contractual relations. Guinnane was awarded compensatory damages, including the attorney fees incurred in the specific performance action. Guinnane then sought to recover the attorney fees incurred in prosecuting this subsequent “tort of another” action against the defendants. The trial court, presided over by Judge Victoria Kolakowski, denied Guinnane’s motion for these additional fees.On appeal, the Court of Appeal of the State of California, First Appellate District, Division Two, reviewed whether, under the tort of another doctrine, Guinnane could recover attorney fees incurred in the action against the tortfeasors themselves. The court held that such fees are not recoverable under the tort of another doctrine, as it allows recovery only for fees incurred in litigation with third parties necessitated by the defendant’s tort, not for fees incurred in suing the tortfeasor. The court affirmed the posttrial order denying Guinnane’s motion for these attorney fees. View "Guinnane Construction Co., Inc. v. Chess" on Justia Law

The plaintiff, a Hawaii resident, entered into a National Employment Agreement with Cardiovascular Systems, Inc. (CSI), a Minnesota-based medical device company, to serve as District Sales Manager for Hawaii. The agreement required him to complete mandatory training in Minnesota before he could work fully in Hawaii. He attended training in Minnesota for a total of twelve days over two visits during early 2023 and participated in remote meetings from Hawaii. Shortly after completing training, CSI terminated his employment. The plaintiff alleged that his termination was in retaliation for reporting illegal conduct in violation of federal law, while CSI claimed it was due to his conduct. Subsequently, Abbott Laboratories, Inc. acquired CSI.The plaintiff first filed a complaint in Minnesota state court against Abbott Laboratories, Inc. (ALI) under the Minnesota Whistleblower Act (MWA). ALI removed the case to federal court and moved to dismiss the complaint. After an unsuccessful attempt to amend his complaint, the plaintiff voluntarily dismissed the action and refiled a nearly identical complaint, later amending it to add CSI as a defendant and a claim under the Hawaii Whistleblowers’ Protection Act (HWPA). The defendants again moved to dismiss, and the plaintiff sought to further amend the complaint to add more details and another defendant.The United States District Court for the District of Minnesota granted the motion to dismiss, holding that the plaintiff did not qualify as an “employee” under the MWA because he neither performed “services for hire” nor maintained ongoing physical presence in Minnesota, and that he had waived his HWPA claim by agreeing to a Minnesota choice-of-law provision in his employment contract. The Eighth Circuit Court of Appeals affirmed, concluding that the district court correctly applied Minnesota law, enforced the choice-of-law provision, and properly denied leave to amend as futile. View "Ghosh v. Abbott Laboratories" on Justia Law

Two former seasonal employees of a ski resort were injured in a snowmobile accident after being laid off from their jobs. The accident occurred when, two days after their termination, they returned to the resort to drop off uniforms and accepted a ride from a current employee on a company snowmobile to attend a gathering organized by other former employees. The snowmobile crashed, causing serious injuries. Prior to their employment, both injured parties had signed a release agreement that waived the resort’s liability for injuries sustained from activities on resort property, including those caused by the resort’s negligence. The agreement specified that a free ski pass was consideration for the waiver.Both individuals brought lawsuits against the resort alleging vicarious liability for the employee’s negligence and direct liability for its own negligence. The Third District Court, Summit County, granted summary judgment in favor of the resort on the vicarious liability claims, finding no evidence the employee was acting within the scope of employment during the snowmobile ride. However, the district court denied summary judgment on the direct liability claims, relying on Pugmire v. Oregon Short Line Railroad Co., a 1907 Utah Supreme Court decision holding that employer-employee agreements waiving liability for employer negligence are void as contrary to public policy.On interlocutory appeal, the Supreme Court of the State of Utah affirmed the dismissal of the vicarious liability claims, concluding that there was no factual basis for a jury to find the employee acted within the course and scope of his employment. The court reversed the district court’s ruling on direct liability, holding that Pugmire applies only to releases for work-related injuries and does not bar enforcement of the waiver in this case, where the injuries occurred outside the employment context. The case was remanded for consideration of any other arguments regarding the release agreement. View "Deer Valley v. Olson" on Justia Law

The plaintiffs, who were long-time friends of the defendants, invested significant sums in a biopharmaceutical company controlled by the defendants. The defendants did not disclose that the company was in serious financial distress, under a substantial obligation to a lender, and prohibited from incurring additional debt. The investment was structured through promissory notes, which included false warranties regarding the company’s financial status and claimed the formation of a new entity that never materialized. Instead of funding a new venture, the defendants used the investment to pay off existing company debt. Less than two years later, the company declared bankruptcy, making the notes essentially worthless.The plaintiffs brought claims under federal and Massachusetts securities laws, the Massachusetts consumer protection statute, and for common law fraud and negligent misrepresentation in the United States District Court for the District of Massachusetts. The defendants moved to dismiss the action, relying on a forum selection clause in the promissory notes requiring litigation in Delaware courts. The district court granted the motion and dismissed the case without prejudice, concluding that the clause applied to the plaintiffs’ claims.On appeal, the United States Court of Appeals for the First Circuit reviewed the dismissal de novo. The plaintiffs argued that their claims did not “arise out of” the notes and that the forum selection clause was unenforceable as contrary to Massachusetts public policy. The First Circuit rejected both arguments, holding that the claims arose from the notes and that the plaintiffs did not meet the heavy burden required to invalidate the clause on public policy grounds. The First Circuit affirmed the district court’s dismissal without prejudice, leaving the plaintiffs free to pursue their claims in the contractually designated Delaware courts. View "Manzo v. Wohlstadter" on Justia Law