Justia Contracts Opinion Summaries
Articles Posted in Contracts
Chenari v. George Washington University
Chenari, a third-year George Washington University medical student, took a test published by the National Board of Medical Examiners. Before the exam, the proctor read aloud the instructions from NBME’s official manual, including that students must complete the exam in two and a half hours and that “[n]o additional time [would] be allowed for transferring answers” to the answer sheet. Chenari also received a copy of “Exam Guidelines,” containing a similar warning. When the proctor called time, Chenari discovered that he had failed to transfer 20-30 answers to his answer sheet, “panicked,” and continued to transfer answers. The proctor requested that he stop; he continued. When the proctor tried to take the exam, Chenari put his hand over it and continued entering answers, taking an additional 90-120 seconds. The proctor and another student reported Chenari. Pursuant to University procedures, an Honor Code Council subcommittee investigated and recommended dismissal for academic dishonesty. The Medical Student Evaluation Committee unanimously recommended Chenari’s dismissal. The Medical School Dean met with Chenari and upheld that recommendation. Chenari unsuccessfully appealed to the Provost, arguing that his conduct lacked “an element of deceit” like “cheat[ing]” or “l[ying].” The D.C. Circuit affirmed dismissal of Chenari’s suit, which alleged breach of contract and discrimination based on his disability, Attention Deficit Hyperactivity Disorder (ADHD), 29 U.S.C. 794(a), and 42 U.S.C. 12132. The court noted that Chenari never sought accommodation of his claimed disability under the school’s established procedures. View "Chenari v. George Washington University" on Justia Law
Claimant ID 100212278 v. BP Exploration & Production
This case concerns BP's obligations under the Deepwater Horizon Economic and Property Damages Settlement Agreement. Appellant is a company that filed Business Economic Loss claims under the settlement agreement on behalf of five of its stores. The CSSP and the Appeal Panel determined that the stores were not tourism businesses and denied the claims for failure to satisfy the causation requirement. In this consolidated appeal, appellant challenged the district court's denial of discretionary review. The court concluded that there was no abuse in discretion in classifying the stores under North American Industry Classification System (NAICS) code 441310 as automotive parts and accessories stores. Accordingly, the court affirmed the judgment. View "Claimant ID 100212278 v. BP Exploration & Production" on Justia Law
Leighton v. Forster
Leighton sued Forster for breach of an attorney fee contract and an account stated, seeking damages in excess of $114,000. In granting Forster summary judgment, the trial court found that an engagement letter Leighton emailed to Forster’s husband Bob was not a valid contract because it was never signed (Bus. & Prof. Code, section 6148) and any claim for payment of the reasonable value of Leighton’s services was barred by the two-year statute of limitations (Code Civ. Proc, section 339(1)). The court of appeal affirmed, rejecting an argument that there were triable issues of material fact regarding Rochelle’s liability for the unpaid attorney fees because she produced evidence that, before Bob died, Leighton and Bob negotiated a fee arrangement that either satisfied the requirements of section 6148 or was exempt from those requirements. The absence of a written fee agreement conclusively establishes that Rochelle was entitled to summary judgment. View "Leighton v. Forster" on Justia Law
Marin v. Constitution Realty, LLC
Jose and Ada Marin obtained an $8 million settlement for injuries Jose suffered when he fell forty feet while working on a building in Manhattan. At issue in this appeal was a fee dispute between Plaintiffs’ attorney-of-record in that action, Sheryl Menkes, and two attorneys she engaged to assist her, Jeffrey Manheimer and David Golomb. Supreme Court held that the fee-sharing agreements unambiguously entitled Manheimer to twenty percent of net attorneys’ fees and Golomb to forty percent of net attorneys’ fees. The Appellate Division affirmed. Menkes appealed. The Court of Appeals modified the order of the Appellate Division, holding that, based on the plain language of the parties’ respective fee-sharing agreements, Manheimer was entitled to twenty percent of net attorneys’ fees and Golomb was entitled to twelve percent of net attorneys’ fees. View "Marin v. Constitution Realty, LLC" on Justia Law
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Contracts, New York Court of Appeals
Jacobs v. Locatelli
Jacobs, a licensed California real estate broker, had the “exclusive and irrevocable right” to sell a Marin County parcel for one year. The listing price was $2,200,000; if Jacobs procured a buyer during the listing period, Jacobs would receive a commission of $200,000. The agreement specified that if one named party bought the property, Jacobs would receive no commission. Locatelli signed the agreement as trustee of the Locatelli Trust, but there were blank signature lines for five additional parties. Jacobs claimed that Locatelli stated that he was authorized to act on behalf of the other owners and that she can obtain a written “agency agreement” through discovery. When Jacobs noted interest in the property by TPL, Locatelli was angry and asserted that he had been speaking with TPL for three years and that he wanted to change the agreement. Jacobs claimed that she investigated and that her TPL contact told her that he did not know Locatelli and had not been aware the property was for sale until he was contacted by Jacobs. Later, the owners and TPL entered into a sales contract. The sale was never consummated, apparently because issues arose between the parties. Jacobs sued the owners and TPL. The trial court dismissed without explanation. The court of appeal reversed, finding that the claims were not barred by the statute of frauds or the parol evidence rule. View "Jacobs v. Locatelli" on Justia Law
Hill County High School District No. A v. Dick Anderson Construction, Inc.
In 2010, Havre High School’s roof partially collapsed. Dick Anderson Construction, Inc. (Anderson) built the roof and Springer Group Architects (Springer) designed it. Hill County High School District No. A filed suit against against Springer and Anderson, alleging negligence, breach of express and implied warranty, breach of contract, negligent misrepresentation, deceit, and fraud. The district court granted summary judgment in favor of Springer and Anderson, concluding that the statute of repose time-barred the School District’s claims. The Supreme Court affirmed, holding that the district court did not err in (1) concluding that the statute of repose barred the School District’s claims; (2) ruling that the period of repose could not be tolled; and (3) awarding Spring attorney fees under the contract. View "Hill County High School District No. A v. Dick Anderson Construction, Inc." on Justia Law
Equity Income Partners, LP v. Chicago Title Insurance Co.
The United States Court of Appeals for the Ninth Circuit certified certain questions to the Supreme Court regarding what impact, if any, a lender’s full-credit bid made at an Arizona trustee’s sale has on an insurer’s liability under standard form title insurance policies. The policy provisions at issue were (1) Section 2, which provides that coverage continues in force when an insured acquires the property in a foreclosure sale but the amount of coverage is reduced by all payments made; (2) Section 9, which provides that payments of principal or the voluntary satisfaction or release of the mortgage reduce available insurance coverage, except as provided under Section 2(a); and (3) Section 7, which explains how the insurer’s liability is calculated. The Supreme Court answered the certified questions as follows: (1) Section 2 applies when a lender purchases property by full-credit bid at a trustee’s sale; (2) the full-credit bid does not constitute a “payment” under Sections 2 or 9 of the policy; and (3) accordingly, the full-credit bid neither terminates nor reduces coverage under Section 2 or Section 7. View "Equity Income Partners, LP v. Chicago Title Insurance Co." on Justia Law
Acciona Windpower v. City of West Branch
The city entered into an agreement with Acciona, a manufacturer and installer of wind generation systems, where Acciona would expand its business in West Branch if the city would consider rebating a portion of Acciona's taxes each year for eight years. After paying rebates for three years, the city refused to pay subsequent rebates and ultimately cancelled the agreement. The district court concluded that the city breached the contract and awarded Acciona damages. The court concluded that the district court did not abuse its discretion in determining that Acciona's actions were essentially harmless because they resulted in no surprise or prejudice to the City. In this case, Acciona sought compensatory damages for multiple fiscal years from the very beginning of this lawsuit. Acciona's pretrial clarification that the company would seek compensatory damages for fiscal years 2013 and 2014 was therefore entirely consistent with the theory of damages articulated by Acciona. Accordingly, the court affirmed the judgment. View "Acciona Windpower v. City of West Branch" on Justia Law
Mediterranean Shipping Co. v. Best Tire Recycling, Inc.
This dispute arose out of contract for the shipment of used tires from Puerto Rico to Vietnam. Because it arrived late to Vietnam, the shipment accrued port storage charges, demurrage charges, and related administrative fees. The district court granted summary judgment to the carrier, Mediterranean Shipping Co., concluding that Best Tire Recycling, Inc. was the shipper, and therefore, pursuant to the bills of lading, was liable to Mediterranean for unpaid ocean freight charges, shipping container demurrage, port storage, and related administrative fees. Best Tire appealed, arguing that the parties’ course of conduct overcame the presumption that Best Tire, who was identified as “shipper” on all of the bills of lading, bore liability. The First Circuit affirmed, holding that because Best Tire was designated as the shipper on the bills of lading, there were no genuine issues of material fact as to whether Best Tire was the shipper. View "Mediterranean Shipping Co. v. Best Tire Recycling, Inc." on Justia Law
Poublon v. C.H. Robinson Co.
Plaintiff filed a class action against C.H. Robinson, alleging misclassification claims regarding overtime pay requirements. On appeal, C.H. Robinson challenged the district court's denial of its motion to compel arbitration. The court rejected plaintiff's argument that the Incentive Bonus Agreement at issue was procedurally and substantively unconscionable. In regards to procedural unconscionability, the court concluded that, under California law, the degree of procedural unconscionability of such an adhesion agreement is low. In regard to substantive unconscionability, the court concluded that any argument that the judicial carve-out was not substantively unconscionable has been waived; the waiver of representative claims was not substantively unconscionable where the unenforceability of the waiver of a Private Attorneys General Act (PAGA), Cal. Labor Code 2698-2699.5, representative action does not make this provision substantively unconscionable; and the venue provision, confidentiality provision, sanctions provision, unilateral modification provision, and discovery limitations are not substantively unconscionable. Therefore, the court concluded that the dispute resolution provision is valid and enforceable once the judicial carve-out clause is extirpated and the waiver of representative claims is limited to non-PAGA claims, and the district court erred in holding otherwise. The court reversed and remanded. View "Poublon v. C.H. Robinson Co." on Justia Law