Justia Contracts Opinion Summaries

In 2003, the Coalition Provisional Authority (CPA) was established to rule Iraq pending transfer of authority to the Iraqi Interim Government (IIG). CPA awarded Agility a Contract to operate warehouses, providing that “[t]he obligation under this contract is made with Iraqi funds.” Agility acknowledged the impending transfer of authority and CPA’s scheduled dissolution. CPA authorized the IIG Minister of Finance to delegate contract administration to CPA’s Program Management Office (PMO). CPA administered Development Fund for Iraq (DFI), composed of various sources, including revenue from sales of Iraqi petroleum and natural gas. The IIG Minister delegated contract-administration responsibility concerning DFI-funded contracts to the PMO but did not give PMO contracting authority. Subsequent Contract task orders obligated U.S. funds. A U.S. contracting officer (CO) determined that Agility owed the government $81 million due to overpayment. Separately, Agility unsuccessfully sought $47 million for unpaid fees. The Armed Services Board of Contract Appeals dismissed Agility's appeals for lack of jurisdiction under the Contract Disputes Act (CDA), 41 U.S.C. 7101–7109. The Federal Circuit affirmed. The Board’s CDA jurisdiction is limited to contracts “made by an ‘executive agency.’” CPA was not an executive agency under the CDA. CPA awarded the Contract and there was no evidence that it was novated or assigned to an executive agency. The government acted as a contract administrator, not as a contracting party. View "Agility Logistics Services Co., KSC v. Mattis" on Justia Law

A corporate shareholder sought a shareholder list to mail proxy solicitations for an annual director election. The corporation required a signed confidentiality agreement in exchange for releasing the list. After obtaining and using the list, the shareholder later declared the agreement unenforceable, and refused to return or destroy the list. The corporation sued, seeking to that the shareholder had breached the confidentiality agreement and that the corporation was not obligated to provide the shareholder access to its confidential information for two years. After the superior court refused to continue trial or issue written rulings on the shareholder’s two pending summary judgment motions, the shareholder declined to participate in the trial. The court proceeded, ruled in favor of the corporation, and denied the shareholder’s subsequent disqualification motion. The shareholder appealed. The Alaska Supreme Court determined the superior court did not err in determining the shareholder had materially breached a valid, enforceable contract and did not err or abuse its discretion in its pretrial decisions or in denying the post-trial disqualification motion. But because the declaratory relief granted by the superior court regarding the shareholder’s statutory right to seek corporate information no longer pertained to a live controversy, the Court vacated it as moot without considering the merits. View "Pederson v. Arctic Slope Regional Corporation" on Justia Law

Corsair obtained a $5,443,171.33 judgment against the defendants. Corsair learned that one of the defendants had a contract with National Resources, entitling the defendant to a payment of more than $3,000,000 and obtained a writ of execution.  Corsair engaged Connecticut State Marshall Pesiri, who successfully served the writ. National Resources ignored it, relinquishing $2,308,504 to Corsair only after Corsair instituted and won a subsequent turnover action. Perisi sued, seeking a statutory commission. The Second Circuit concluded that Connecticut state law was insufficiently developed for the court to answer the question raised on appeal. The court certified questions to the Connecticut Supreme Court. The court responded that Marshal Pesiri was entitled to a 15 percent fee under CONN. GEN. STAT. 52‐8 261(a)(F). It does not matter that the writ was ignored and that the monies that were the subject of the writ were procured only after the judgment creditor, not the marshal, pursued further enforcement proceedings in the courts. The Second Circuit then affirmed the district court’s fee award in the amount of $346,275.60. View "Corsair Special Situations Fund, L.P. v. Pesiri" on Justia Law

In this dispute governed by a collective bargaining agreement between a county and its deputy constables, the Supreme Court affirmed the judgment of the court of appeals ruling that deputy constables are “police officers” entitled to enter into collective bargaining agreements (CBAs) with their public employers under Tex. Loc. Gov’t Code Ann. 174 and that the arbitrator did not exceed his authority in awarding relief to the deputy constables.The county petitioned to vacate the arbitrator’s award, arguing that the arbitrator exceeded his authority in concluding that the county violated the CBA by eliminating several deputy constable positions without regard to seniority and ordering the county to reinstate the deputies in order of seniority. The trial court granted the county’s motion for summary judgment and rendered final judgment in its favor. The court of appeals reversed. The Supreme Court affirmed, holding that deputy constables are “police officers” under the CBA, that the CBA was valid and enforceable, and that the arbitrator did not exceed his authority in ordering the deputies’ reinstatement on a seniority basis. View "Jefferson County v. Jefferson County Constables Ass’n" on Justia Law

In this case involving competing claims to mineral-lease interests in two tracts of land, the Supreme Court affirmed the judgments of the trial court and court of appeals that the acreage Endeavor Energy Resources, LP and Endeavor Petroleum, LLC (collectively, Endeavor) retained under “retained-acreage clauses” in expired leases did not include the two tracts at issue.Discovery Operating, Inc., which drilled producing wells on the two subject tracts, claimed the mineral-lease interests based on leases acquired directly from the mineral-estate owners. Endeavor based its claim on prior leases with the same owners covering land that included the two subject tracts. Endeavor never drilled on the tracts, and Endeavor’s leases’ terms had expired. However, the leases included “retained-acreage clauses” providing that the leases would continue after they expired as to a certain number of acres associated with each of the wells Endeavor drilled on adjacent tracts. Supreme Court affirmed the judgment of the lower courts, holding that “a governmental proration unit assigned to a well” refers to acreage assigned by the operator, not by field rules. View "Endeavor Energy Resources, LP v. Discovery Operating, Inc." on Justia Law

In this law firm’s quantum-merit suit for the reasonable value of its services in assisting its client reach a comprehensive settlement of various lawsuits filed against him, the Supreme Court held (1) despite an unenforceable oral contingent-fee agreement, the statute of frauds did not preclude the firm’s quantum-merit claim for services it performed under the agreement; and (2) there was sufficient evidence to demonstrate that the firm performed compensable services in negotiating the global settlement, but the firm’s damages expert’s opinion as to the reasonable value of the firm’s services could not be given legal weight, and without the opinion, there was legally insufficient evidence to support the jury’s award. Where there was some evidence of the reasonable value of the law firm’s services, the Supreme Court reversed the part of the court of appeals’ judgment that reinstated the jury’s award, which the trial court set aside in favor of a take-nothing judgment, and remanded the case to the trial court for a new trial on the amount of the firm’s recovery. View "Hill v. Shamoun & Norman, LLP" on Justia Law

One party’s material breach of a contract releases the non-breaching party’s contractual obligation to a third-party beneficiary.The promisor in this case failed to fulfill its contractual obligations to Appellants under a settlement agreement. Appellants sued the promisor and six of its officers, including Respondents. Respondents, the third-party beneficiaries, claimed that the settlement agreement released them from liability for the promisor’s actions and precluded Appellants’ suit. The district court granted summary judgment to Respondents. The Supreme Court reversed, holding that the promisor’s material breach of the settlement agreement released Appellants from their obligation under that agreement not to sue the promisor’s officers. Therefore, the Court reversed the district court’s grant of summary judgment and remanded the matter to the district court for further proceedings. View "Cain v. Price" on Justia Law

The Supreme Court affirmed the order of the circuit court ordering Eryn Winegeart to sell real estate she owned jointly with her former spouse, Weston Winegeart, holding that the court did not err by ordering Eryn to sign a purchase agreement signed by a third party.After the parties underwent mediation, Weston signed an agreement with a real-estate agent to list the jointly owned real estate, and the listing agreement included a commission for the realtor. After the third party signed the purchase agreement, Eryn refused to sign it, asserting that during mediation Weston had orally agreed to sell the property without paying for a realtor. The circuit court found that the parties had not entered into an enforceable oral agreement in regard to realtor fees and ordered Eryn to sign the purchase agreement. The Supreme Court affirmed, holding that the circuit court did not err by entering its order requiring Eryn to sign the purchase agreement. View "Winegeart v. Winegeart" on Justia Law

In 2012, hackers infiltrated the computer networks at Schnuck Markets, a large Midwestern grocery store chain based in Missouri, and stole the data of about 2.4 million credit and debit cards. By the time the intrusion was detected and the data breach was announced in 2013, the financial losses from unauthorized purchases and cash withdrawals had reached the millions. Financial institutions filed a class action, having issued new cards and reimbursed customers for losses as required by 15 U.S.C. 1643(a). They asserted claims under the common law and Illinois consumer protection statutes (ICFA). The Seventh Circuit affirmed the dismissal of the suit. The financial institutions sought reimbursement for their losses above and beyond the remedies provided under the credit-debit card network contracts; neither Illinois or Missouri would recognize a tort claim in this case, where the claimed conduct and losses are subject to these networks of contracts. Claims of unjust enrichment, implied contract, and third-party beneficiary also failed because of contract law principles. The plaintiffs did not identify a deceptive guarantee about data security, as required for an ICFA claim, nor did they identify how Schnucks’ conduct might have violated the Illinois Personal Information Protection Act. View "Community Bank of Trenton v. Schnuck Markets, Inc." on Justia Law

Leonetti's filed suit against Crew for negligence, breach of contract, breach of fiduciary duty, and trade libel. Leonetti's alleged that an email sent by the president of Crew caused Sam's Club to decline to purchase Leonetti's stromboli products. The district court granted summary judgment for Crew on each count except the breach of contract count, which was later dismissed with prejudice. The Eighth Circuit reversed the district court's grant of summary judgment, holding that there was a genuine issue of material fact as to the causation of the project termination. In this case, the district court failed to consider Leonetti's evidence offered to rebut an email explaining that Sam's Club was terminating the project for product quality concerns. View "Leonetti's Frozen Foods,Inc. v. Crew, Inc." on Justia Law