Justia Contracts Opinion Summaries

The Supreme Court affirmed the order of the circuit court overruling Dollar Tree's motion to compel arbitration and stay proceedings on a former employee's claim of disability discrimination, holding that the order was supported by substantial evidence, was not against the weight of the evidence, and correctly applied the law.After Plaintiff, Dollar Tree's former employee, brought this complaint Dollar Tree filed a motion to compel arbitration and stay proceedings under an arbitration agreement in the employment contract. The parties, however, disputed whether there was assent to the arbitration agreement. The circuit court denied the motion to compel arbitration after hearing testimony but did not make any findings. The Supreme Court affirmed, holding that there was no clear and unmistakable evidence of the existence of assent to a delegation provision, and therefore, the circuit court could not delegate the matter to an arbitrator whose existence depended upon the agreement. View "Theroff v. Dollar Tree Stores, Inc." on Justia Law

Molon sued Merkle-Korff, for infringement of the 785 patent. Merkle-Korff filed counterclaims relating to Molon’s 915 and 726 patents. Molon unilaterally executed the 2006 Covenant, agreeing not to sue Merkle-Korff for infringement of the 915 and 726 patents. After the dismissal of the counterclaims, the parties entered into the 2007 Settlement. Merkle-Korff agreed to pay a lump sum for an exclusive license to multiple Molon patents including the 785, 915, and 726 patents, within the Kinetek Exclusive Market. The Settlement granted Merkle-Korff “the right, but not the duty, to pursue an infringement claim” and contains a statement that all prior covenants “concerning the subject matter hereof” are “merged” and “of no further force or effect.” Merkle-Korff later became Nidec. Molon sued, alleging that Nidec is infringing the 915 patent outside the licensed Market. Nidec argued that Molon is barred from enforcing the patent under the 2006 Covenant. Molon responded that the Covenant was extinguished by the 2007 Settlement.The court granted Nidec partial summary judgment after comparing the subject matters of the agreements. The Federal Circuit affirmed; the agreements concern different subject matter and do not merge. The 2006 Covenant gives Nidec a right to avoid infringement suits on two patents. The 2007 Settlement is in some ways broader, as an exclusive license, covering multiple patents and applications and providing Nidec with some enforcement rights, and in other ways narrower, being limited to a defined market. The 2006 Covenant remains in effect because it does not concern the same subject matter as the 2007 Settlement. View "Molon Motor & Coil Corp. v. Nidec Motor Corp." on Justia Law

The Supreme Court affirmed the order of the district court dismissing this action presenting the question of what must be shown to avoid the effects of a contractual forum-selection clause, holding that fraud in general is not sufficient and must relate specifically to the forum-selection clause itself.This case involved an alleged scheme to inflate the purchase price of a general aviation jet aircraft. Plaintiffs argued that Defendants fraudulently misrepresented the acquisition price of the aircraft and failed to disclose the true acquisition price. Defendants filed a motion to dismiss, asserting, in part, improper venue based on the forum-selection clause in the purchase agreement. The district court dismissed the case without prejudice based on improper venue. The Supreme Court affirmed, holding that because Plaintiffs did not allege fraud with respect to the forum-selection clause in the written contract, Plaintiffs' general allegations of fraud in the inducement were insufficient to avoid enforcement of the forum-selection clause of the purchase agreement. View "Karon v. Elliott Aviation" on Justia Law

After a helicopter owned by PHI was required to make an emergency landing in the Gulf of Mexico when its Rolls-Royce-manufactured engine failed, PHI filed suit against Rolls-Royce, Apical, and OHS. The emergency flotation system manufactured by Apical and serviced by OHS partially deflated after the landing and caused the helicopter to turn over in the water, resulting in a total loss due to salt water incursion. The jury found Apical liable for the loss of the helicopter.The Fifth Circuit held that the magistrate judge's pretrial exclusion of all evidence regarding the engine failure and verdict form rulings were in error, because, under Louisiana law, Rolls-Royce is a potential solidary obligor along with Apical. Furthermore, a finding of solidary liability would result in a reduction of damages award against Apical due to Rolls-Royce's earlier settlement with PHI. Accordingly, the court vacated the trial court's judgment and remanded for trial on the issue of solidary liability. View "PHI, Inc. v. Apical Industries, Inc." on Justia Law

At issue in this case was whether a federal court sitting in Oklahoma had specific jurisdiction over Dr. Scott Jolly, a dentist and Arkansas resident, and his Limited Liability practice, Jolly Dental Group, LLC. Dental Dynamics, LLC argued that three isolated business transactions and an allegedly fraudulent contract were sufficient to establish federal court jurisdiction over its breach of contract and fraud claims. The Tenth Circuit disagreed, finding Jolly Dental's contacts with Oklahoma were "too random, fortuitous, and attenuated" to establish personal jurisdiction there. With respect to Denta; Dynamics' fraud claim, the Court concluded Dental Dynamics failed to show conduct sufficiently targeted to Oklahoma to establish personal jurisdiction there. View "Dental Dynamics v. Jolly Dental Group" on Justia Law

The Supreme Court affirmed the decision of the court of appeals affirming the circuit court's dismissal of Chris Hinrichs and Autovation Limited's (collectively, Hinrichs) common law misrepresentation claims against the DOW Chemical Company and reversing the circuit court's dismissal of Hinrichs' statutory claim under Wis. Stat. 100.18, holding that the court of appeals did not err.Specifically, the Supreme Court held that, with regard to Hinrichs' common law claims, neither the "fraud in the inducement" exception nor the "other property exception" to the economic loss doctrine applied to allow Hinrichs' common law claims to go forward. With regard to Hinrichs' statutory claims the Court held (1) the economic loss doctrine does not serve as a bar to claims made under section 100.18; (2) because one person can be "the public" for purposes of section 100.18(1), the court of appeals did not err in determining that dismissal for failure to meet "the public" factor of the section 100.18 claim was in error; and (3) the heightened pleading standard for claims of fraud does not apply to claims made under section 100.18 and that Hinrichs' complaint stated a claim under the general pleading standard. View "Hinrichs v. DOW Chemical Co." on Justia Law

PNR appealed the district court's judgment in favor of BNSF in a contract dispute between the two railroad companies. The Fifth Circuit held that the first issue raised by PNR was determinative of the appeal, and that the handling-carrier relationship established by the 1993 Agreement between the parties is terminable at will under Illinois law and that PNR consequently had a right to terminate the relationship unilaterally upon reasonable notice to BNSF. Accordingly, the court reversed the district court's judgment and rendered judgment in favor of PNR. View "BNSF Railway Co. v. Panhandle Northern Railroad, LLC" on Justia Law

The Fifth Circuit affirmed the district court's adverse judgment against Universal Truckload following a jury trial, holding that Universal Truckload failed to demonstrate reversible error. The court held that the district court correctly denied the judgment as a matter of law (JMOL) asking the court to reverse the jury's finding that Dalton was entitled to $5.7 million in reliance damages under promissory estoppel; the district court correctly concluded that the $1.9 million breach of contract damages in Universal Truckload's favor should be offset because the debt arose from reliance on Universal Truckload's promise; and the district court correctly determined that neither H&P nor Hess was liable for the shipping charges Universal Truckload incurred. View "Universal Truckload, Inc. v. Dalton Logistics, Inc." on Justia Law

Defendants solicited and obtained $180,000 from plaintiff produce a documentary on the Syrian refugee crisis. Plaintiff sued, alleging that no “significant” work on the documentary has occurred, that defendants never intended to make the documentary, and that a cinematographer has not been paid and claims the right to any footage he has shot, putting the project in jeopardy. Defendants filed an unsuccessful anti-SLAPP (strategic lawsuit against public participation (Code Civ. Proc. 425.16)) motion to strike, arguing the complaint arises out of acts in furtherance of their right of free speech in connection with an issue of public interest--their newsgathering related to the Syrian refugee crisis, and that plaintiff could not demonstrate minimal merit on his claims because the action is subject to an arbitration provision; plaintiff’s allegations are contradicted by the investor agreement; and the evidence establishes that substantial progress was made. The court found that plaintiff’s claims did not arise out of acts in furtherance of defendants’ protected speech but were “based on the failure to do acts in furtherance of the right of free speech."The court of appeal reversed. Defendants made a prima facie showing that the complaint targets conduct falling within the “catchall” provision of the anti-SLAPP law. Defendants’ solicitation of investments and their performance of allegedly unsatisfactory work on the documentary constituted activity in furtherance of their right of free speech in connection with an issue of public interest. The court erred in denying the motion at the first stage of the anti-SLAPP analysis. View "Ojjeh v. Brown" on Justia Law

At issue was the word "retirement" in the Award Terms of stock options granted to plaintiff by his employer E.I. du Pont de Nemours and Company. Under the terms of the award, an employee who leaves the company "due to retirement" keeps the original expiration date of his stock options, but an employee who leaves for other reasons must exercise his stock options by his last day of employment.Applying Delaware law, the Eleventh Circuit held that an employee is eligible for retirement within the meaning of the Award Terms only upon satisfying both the age and years-of-service requirement. Therefore, plaintiff's 10 years of service with DuPont fell short of the years-of-service requirements within Section IV of the Pension Plan. Accordingly, the court affirmed the district court's grant of summary judgment to DuPont. View "Bearden v. E.I. Du Pont De Nemours and Co." on Justia Law