Justia Contracts Opinion Summaries

Articles Posted in Contracts
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Plaintiff entered into a plea agreement under which he pled nolo contendere to one count of lewd and lascivious acts upon a child. Plaintiff filed a plea form stating that Plaintiff must register as a sex offender under Cal. Penal Code 290. Plaintiff registered as required by section 290. The Legislature later amended the law and provided a means by which the public can obtain personal information of the State's registered sex offenders. The legislature made the public notification provisions retroactive and thus applicable to Plaintiff's conviction. Plaintiff filed a civil complaint, contending that requiring him to comply with the amended law's public notification provisions would violate his plea agreement. The district court concluded that publicly disclosing any of Plaintiff's previously confidential sex offender registration information would violate the terms of Plaintiff's plea agreement. On appeal, the Ninth Circuit Court of Appeals asked a question of the California Supreme Court, which responded by answering that under California law of contract interpretation as applicable to the interpretation of plea agreements, the fact that parties enter into a plea agreement does not have the effect of insulating them from changes in the law that the legislature intended to apply to them. View "Doe v. Harris" on Justia Law

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In 2000, Gregory T. Ludlow, S. Reid Ludlow, and Jean E. Cowles entered into an exclusive listing agreement with real estate brokerage firm Gibbons-White, Inc. for the sale of approximately 131 acres of vacant land in Boulder County. Over the next seven years, the Sellers received offers from at least three different buyers to purchase portions of the land; none of the offers resulted in a completed sale. In 2007, Actis, LLC made an offer to purchase half of the land. The issue before the Supreme Court in this matter stemmed from that offer. The Court concluded that to sustain a professional malpractice claim against a transactional real estate broker, a plaintiff must show that but for the alleged negligent acts of the broker he either:(1) would have been able to obtain a better deal in the underlying transaction; or (2) would have been better off by walking away from the underlying transaction. The Court concluded that the Sellers here failed to present evidence of damages because they did not establish beyond mere speculation they suffered a financial loss because of the transactional brokers' professional negligence. View "Gibbons v. Ludlow" on Justia Law

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The issue before the Supreme Court in this case was whether the appellate court erred including that where reasonable attorney fees were provided for in a contract, and the judgment based on that contract was reduced by a counterclaim arising out of the transaction, the trial court must apportion the fees according to the amount recovered on the contract less the amount received in the counterclaim. The Court concluded that under the circumstances of this case, determining whether and how to apportion fees between the parties is within the trial court's discretion, and can only be overturned by an abuse of that discretion. View "Planning Partners Int'l, LLC v. QED, Inc." on Justia Law

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This case involved disputes over licensing agreements for, inter alia, the RS 3400 blood irradiation device. At issue was whether the Federal Circuit has exclusive jurisdiction to hear an appeal of a breach of contract claim that would require the resolution of a claim of patent infringement for the complainant to succeed. The court concluded that it did not have appellate jurisdiction and resolved dispositive issues in favor of Rad Source, leaving a single dispositive issue for certification: When a licensee enters into a contract to transfer all of its interests in a license agreement for an entire term of a license agreement, save one day, but remains liable to the licensor under the license agreement, is the contract an assignment of the license agreement, or is the contract a sublicense? View "MDS (Canada) Inc., et al. v. Rad Source Technologies, Inc." on Justia Law

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The Canal Authority appealed the district court's decision to grant summary judgment in favor of Interior, Bureau, San Luis, and Wetlands, in a suit to establish priority water rights under Central Valley Project (CVP) water service contracts. The district court granted summary judgment for defendants, holding that all claims arising before February 11, 2004 were time-barred and that Canal Authority was not entitled to priority water allocation under the CVP contracts. The court affirmed the district court's decision on the alternative basis that California Water Code 11460 did not require the Bureau to provide CVP contractors priority water rights, because contracts between the Canal Authority and Bureau contained provisions that specifically address allocation of water during shortage periods. View "Tehama-Colusa Canal Auth. v. U.S. Dept. of Interior" on Justia Law

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The family of a nursing home patient filed this action against the nursing home for, inter alia, medical negligence, negligence per se, breach of contract, and retaliation. Plaintiffs asserted the retaliation claim under the Texas Health & Safety Code, which creates a cause of action against a nursing facility that retaliates against a resident or family member who makes a complaint concerning the facility. Defendants moved to dismiss all of the claims pursuant to the Texas Medical Liability Act (TMLA) because the expert report was deficient. The trial court dismissed all of Plaintiffs' claims except for the retaliation claim, concluding that the claim was not a health care liability claim (HCLC) for which the TMLA requires a supporting expert report. The court of appeals affirmed. The Supreme Court reversed the court of appeals' judgment with respect to the retaliation claim, holding that because the retaliation claim was based on the same factual allegations on which one of Plaintiffs' HCLCs was based, the claim should have been dismissed for lack of a sufficient expert report. View "PM Management-Trinity NC, LLC v. Kumets" on Justia Law

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Southern Natural Gas Company (Sonat) sued Certain Underwriters at Lloyd's London and Certain London Marketing Insurance Companies (Phase III), alleging breach of numerous umbrella and excess liability policies. Sonat contended the insurance companies failed to pay certain environmental-remediation costs. The trial court granted summary judgment in favor of the insurers based on prior trials in Phases I and II of the case; Sonat appealed, and the insurers cross-appealed Phase III's outcome. Finding no abuse of the trial court's discretion, the Supreme Court affirmed. View "Certain Underwriters at Lloyd's, London v. Southern Natural Gas Company " on Justia Law

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Plaintiffs owned an undivided five-sixths interest of land on which they executed an oil and gas lease to Prestige Exploration, Inc. Plaintiffs ownership interests were managed by Regions Bank who helped negotiate the terms of the lease. Prestige acquired the lease on behalf of Defendant Matador Resources Company. The issue before the Supreme Court centered on the extension of that lease. Plaintiffs sought to rescind or reform the extension agreement to make it applicable only to a portion of their property. After several preliminary partial summary judgment rulings, a jury found in favor of Defendant for the extension to cover the entirety of Plaintiffs' land interest. The appellate court affirmed in part, reversed in part, and reformed the lease to extend only to the portion of land for which Plaintiffs asked. Upon review, the Supreme Court found that Plaintiffs were precluded from rescinding the agreement on "excusable error." Further, the Court found no manifest error in the district court proceedings. The Court reversed the appellate court's judgment and reinstated the trial court's judgment in its entirety. View "Peironnet v. Matador Resources Co." on Justia Law

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Plaintiff Mary Soileau was injured while working for the Town of Mamou when a front-end loader detached from a tractor and struck her in the leg. She named the tractor manufacturer, the Town, Smith's Hardware (where the Town rented the tractor for employees' use), the hardware store's owners and their insurance company. Trial began with only the owners and their insurer as the remaining defendants in the suit. On the third day, Plaintiff moved to dismiss the owners and their company in the presence of the jury, stating that she did not seek any damages personally against them. Hearing no objections, the trial court granted the request, but made no written (and therefore signed) judgment of dismissal. On day four, the insurer moved for a directed verdict, based on contract language that it was obligated to pay only if its insureds were legally obligated to pay. The insurer's motion was denied, and ultimately over $9 million in damages were awarded to Plaintiff. Concluding that the trial court erred in denying the insurer's motion, the appellate court reversed, dismissing the insurance company. The issue before the Supreme Court centered on the effect Plaintiff's in-court dismissal of the insured parties was during her personal injury action. Upon review, the Supreme Court concluded that the appellate court erred in its analysis, reversed and remanded the case for further proceedings. View "Solieau v. Smith True Value & Rental" on Justia Law

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Appellant Tommie Patterson was involved in a motor vehicle accident. His insurance company paid his medical providers to the policy limit. Two years later, Appellant sued the insurance company, arguing it had shown bad faith following the accident. The company moved for summary judgment, which was granted. A month after that decision, Appellant filed a second lawsuit, alleging the company falsely advertised its services, breached his insurance contract, embezzled money from him, falsified documents and threatened to make him at fault for the accident. The company moved for summary judgment again, which was granted. After review, the Supreme Court concluded that because Appellant's embezzlement claim in the second lawsuit alleged a different cause of action than in the first, the trial court improperly granted summary judgment with regards to that claim. All other claims were barred by res judicata. Therefore the Supreme Court affirmed the trial court in all other respects. View "Patterson v. Infinity Insurance Co." on Justia Law