Justia Contracts Opinion Summaries

Because the plain language of the exculpatory clauses at issue in this case did not limit the homeowner’s association’s liability, and the association, as an entity distinct from internal boards acting as its agents, could not benefit from exculpatory clauses protecting those agents, the Colorado Supreme Court concluded the petitioners could bring their claims against the association. Petitioners Mac McShane and Cynthia Calvin had hoped to build a multistory home overlooking the Roaring Fork Valley. After belatedly discovering their design for that home exceeded county height regulations, they ended up with something less: a one-story home and an attached “pod.” Making the required changes proved costly, and they sued the homeowners association which allegedly improperly approved the architectural plans, then later allegedly improperly denied approval of revised plans. View "McShane v. Stirling Ranch Property Owners Association, Inc." on Justia Law

Bartush-Schnitzius Foods Co., a food-product manufacturer, entered into an agreement with Cimco Refrigeration, Inc., a refrigeration contractor, to install a new refrigeration system. When disputes arose over the refrigeration system and payments owed, Cimco sued to recover the balance owed on the contract. The jury found that both parties failed to comply with the terms of the agreement. The trial court, however, rendered judgment solely for Bartush. The court of appeals reversed and remanded for entry of judgment that Bartush take nothing and Cimco recover damages. The Supreme Court reversed, holding that both the trial court and the court of appeals failed to render judgment in accordance with the jury’s verdict. Remanded. View "Bartush-Schnitzius Foods Co. v. Cimco Refrigeration, Inc." on Justia Law

After BP America Production turned of the well valve to a gas well, Red Deer Resources, LLC, the top-lease holder, filed suit, asking the trial court to declare that BP’s lease had terminated. The jury found that the well was incapable of production in paying quantities the day after BP closed the valve and eight days after the last gas was sold or used. Based on these findings, the trial court declared that BP’s lease had lapsed and terminated, thus terminating BP’s lease in its secondary term. The court of appeals affirmed. The Supreme Court reversed the judgment of the court of appeals and rendered a take-nothing judgment in favor of BP, holding that because Red Deer never obtained a finding that the well was incapable of production in paying quantities on the material date under the plain language of the lease, BP’s lease remained valid. View "BP America Production Co. v. Red Deer Resources, LLC" on Justia Law

American Semiconductor, Inc. sued to recover damages arising out of Zilog, Inc., contracting with Sage Silicon Solutions, LLC, to perform engineering services for it, where that entity was formed by, and the services were provided by, employees of American Semiconductor, Inc. American Semiconductor, Inc., obtained a jury verdict awarding damages against the engineers and the entity they had formed, but it did not recover against Zilog, Inc. American Semiconductor, Inc., appealed, challenging the dismissal of one of its claims against Zilog, Inc., and seeking a new trial on damages against the engineers and their entity. The Supreme Court found no reversible error and affirmed the district court judgment. View "American Semiconductor v. Sage Silicon Solutions" on Justia Law

The faulty, inadequate, or defective work exclusion did not apply to the loss in this case. At issue in this appeal was the dismissal of Plaintiff’s action seeking to recover under an insurance policy for the loss of her house caused when a renter, who had an option to purchase the house, demolished it. The district court held that coverage for such loss was excluded under the policy. The Supreme Court vacated the judgment of the district court and remanded this case for further proceedings. View "Fisher v. Garrison Property & Casualty Ins" on Justia Law

The court affirmed the dismissal of Meridian's breach of contract suit against defendants, holding that the claim was time-barred under Virginia's five-year statute of limitations for contract actions because the parties acknowledged that more than five years passed between when the alleged injury accrued and Meridian's complaint. The court concluded that it may reach defendants' affirmative defense in reviewing the district court's dismissal of the action, because all facts necessary to decide whether defendants' defense applies appeared on the face of the complaint. The court rejected Meridian's claim that the six-year statute of limitations for contract suits brought against the United States should apply in this case, determining that defendants were private corporations, not government instrumentalities. In the alternative, the claim would still fail because the document at issue, a memorandum of understanding (MOU), was generally an unenforceable agreement to agree under Virginia law. Although some of the MOU's provisions may have been binding on the parties, Meridian has not demonstrated that defendants breached any of them. View "Meridian Investments, Inc. v. Federal Home Loan Mortgage" on Justia Law

Respondent, who owned a ranch, sued Petitioner, which produced natural gas on the ranch, for underpayment of royalties and underproduction of its lease. The parties resolved their dispute with two agreements that contained an arbitration provision. Respondent later sued Petitioner for environmental contamination and improper disposal of hazardous materials on the ranch. Before arbitration commenced, Respondent asked the Railroad Commission (RRC) to investigate contamination of the ranch by Petitioner. Meanwhile, an arbitration panel awarded Respondent $15 million for actual damages and $500,000 for exemplary damages. At issue on appeal was whether the RRC had exclusive or primary jurisdiction over Respondent’s claims, precluding the arbitration, and whether the arbitration award should be vacated for the evident partiality of a neutral arbitrator or because the arbitrators exceeded their powers. The Supreme Court answered in the negative, holding (1) because Respondent’s claims were inherently judicial, the doctrine of primary jurisdiction did not apply, and vacatur was not warranted for failure to abate the arbitration hearing; and (2) the arbitrators did not exceed their authority. View "Forest Oil Corp. v. El Rucio Land & Cattle Co." on Justia Law

The Federal Circuit affirmed summary judgment in favor of the United States in Northwest Title Agency’s (NWTA) suit based on contracts, under which NWTA provided closing services for homes owned by the Department of Housing and Urban Development (HUD). The courts concluded that the contracts unambiguously preclude NWTA from charging additional closing fees and declined to consider the affidavit of industry practice submitted by NWTA. The fee prohibition does not conflict with the buyers’ rights, as stated in the contracts, to retain a title company of their own choosing. View "Northwest Title Agency, Inc. v. United States" on Justia Law

Leslie Meadows filed a complaint against William Erps claiming that Erps owed he money from several real estate projects that she shared with him. For purposes of appeal, Meadows’s claims involved two of those transactions with Erps: (1) claims related to the purchase of, improvements to, and sale of the Sutphin property; and (2) claims related to the financing for the Twiford apartments. The circuit court awarded judgment to Meadows in the amount of $18,675 with respect to the Sutphin property and $67,000 for the Twiford apartments, for a total sum of $85,675. The Supreme Court reversed in part, holding (1) the circuit court’s award of judgment of $18,675 to Meadows as an abuse of discretion; and (2) the circuit court’s award of $67,000 was an abuse of discretion, and the circuit court’s award of judgment on the Twiford apartments is hereby reduced to $30,000. Remanded with directions to vacate the judgment for Meadows on the Sutphin property and to enter judgment for Meadows on the Twiford apartments in the amount of $30,000. View "Erps v. Meadows" on Justia Law

Gerardo Salvati died from injuries he sustained while doing maintenance work. Gerardo’s wife, Lucia (hereinafter referred to as Salvati) filed a lawsuit seeking damages for wrongful death and loss of consortium. The underlying defendants had a primary policy through Western World Insurance Company in the amount of $1 million and an excess policy through the American Insurance Company (AIC) in the amount of $9 million. AIC refused to provide coverage to the underlying defendants. Salvati and the underlying defendants eventually reached a $6 million settlement agreement. In exchange for tendering the full $1 million of the Western World primary insurance policy, the agreement released Western World and the underlying defendants from any further liability and assigned all rights held by the underlying defendants against AIC to Salvati. Thereafter, Salvati filed a complaint against AIC, alleging, inter alia, breach of contract and seeking a declaratory judgment that she was entitled to collect $5 million from AIC under the excess policy. The district court dismissed the complaint for failure to state a claim. The Supreme Court affirmed, holding (1) Salvati failed to show that the settlement agreement triggered AIC’s duty to indemnify; and (2) Salvati may not bring a claim under Mass. Gen. Laws ch. 176D, and therefore, none of her causes of action survived. View "Salvati v. American Insurance Co." on Justia Law