Justia Contracts Opinion Summaries
Articles Posted in Contracts
The Falls Church v. Protestant Episcopal Church in the U.S.
The parties to this complex dispute were Plaintiffs, the Protestant Episcopal Church in the Diocese of Virginia (the Diocese) and the Protestant Episcopal Church in the United States of America (TEC), and Defendants, seven local congregations, including The Falls Church (collectively, the CANA congregations), Appellant in the present case. After The Falls Church disaffiliated from TEC, Plaintiffs filed complaints asserting that all personal and real property held by the CANA congregations was actually held in trust for TEC and the Diocese. The trial court found that Plaintiffs carried their burden of proving they had contractual and propriety interests in the church property at issue and granted relief to Plaintiffs. The Supreme Court affirmed in part and reversed and remanded in part, holding (1) Plaintiffs had a proprietary interest in the properties, and therefore, a constructive denominational trust should be imposed in the properties; (2) the trial court correctly ordered Appellant to convey the property to Plaintiffs; and (3) the trial court erred in its disposition of personal property acquired by Appellant after the vote to disaffiliate. View "The Falls Church v. Protestant Episcopal Church in the U.S." on Justia Law
The Doctors Co. v. Women’s Healthcare Assocs.
The Doctors Company (TDC), a professional liability insurance company, sought a determination that its coverage of policyholder Women's Healthcare Associates (WHA) did not apply to a pending breach of contract action relating to WHA's participation in the Virginia Birth-Related Neurological Injury Compensation Act (the Birth Injury Fund). The Davidson family filed the underlying breach of contract action against WHA, alleging that they entered into an express contract with WHA partly in reliance on WHA's participation in the Birth Injury Fund, and WHA materially breached the contract by failing to pay into the fund as represented to the Davidsons. The circuit court ruled against TDC and in favor of WHA and the Davidsons, finding that the policy covered the claim alleged by the Davidsons in their complaint against WHA. The Supreme Court affirmed, holding (1) the underlying action was covered by the insurance policy; and (2) therefore, TDC must both defend and indemnify WHA in the underling breach of contract action. View "The Doctors Co. v. Women's Healthcare Assocs." on Justia Law
Henderson v. Ayres & Hartnett, P.C.
Appellant retained Law Firm as his counsel in two cases filed against Appellant by his brother. The parties settled. Thereafter, the circuit court (1) ordered Appellant to pay $130,000 to his attorney from proceeds deposited with the circuit court pursuant to the settlement agreement; (2) denied Appellant a jury trial on the attorney's fee issue; and (3) refused to allow an appeal bond pursuant to Va. Code Ann. 8.01-676.1(C), which would have suspended execution of its award. The Supreme Court affirmed, holding that the circuit court (1) had jurisdiction to resolve Law Firm's fee dispute with Appellant; (2) did not err in overruling Appellant's jury trial request; and (3) erred in refusing Appellant's request to post an appeal bond and suspend the award, but because the court's award to Law Firm was proper, the error was harmless. View "Henderson v. Ayres & Hartnett, P.C." on Justia Law
Caperton v. A.T. Massey Coal Co.
For fifteen years, litigation between Hugh Caperton and his companies and Donald Blankenship and his companies involved trips to many courts, including suits in circuit courts in Virginia and West Virginia, proceedings in the U.S. district court for the southern district of West Virginia, and appeals to the Supreme Courts of Virginia, West Virginia Supreme Court and the U.S. In this case, Caperton and his companies filed suit in Virginia in 2010, bringing many of the same tort claims as they did in 1998 in the circuit court of West Virginia. In the 1998 case, the Supreme Court of West Virginia ultimately determined that a forum selection clause in an agreement between the parties required that suit be brought in Virginia. In this case, the circuit court held that res judicata barred Plaintiffs' claims. The Supreme Court reversed, holding that the circuit court erred in determining that res judicata operated to bar Plaintiffs' action. Remanded.
View "Caperton v. A.T. Massey Coal Co." on Justia Law
Bd. of Supervisors of Fluvanna County v. Davenport & Co. LLC
The Board of Supervisors of Fluvanna County filed a complaint against Davenport & Company asserting that Davenport, which served as the financial advisor to the Board, knowingly made false representations and used its fiduciary position to persuade the Board to hire Davenport as an advisor regarding the financing of the construction of a new high school. Davenport filed a demurrer to the complaint, which the circuit court granted on the basis that the separation of powers doctrine prevented the court from resolving the controversy because the court would have to inquire into the motives of the Board's legislative decision making. The Supreme Court reversed, holding that the Board effectively waived its common law legislative immunity from civil liability and the burden of litigation, and therefore the circuit court erred in sustaining Davenport's demurrer on these grounds. View "Bd. of Supervisors of Fluvanna County v. Davenport & Co. LLC" on Justia Law
Alpha Prop. and Cas. Ins. Co. v. Ihle
An intoxicated driver (Driver) struck and injured several children. Driver later pleaded guilty to two counts of vehicular battery. Driver's insurer (Insurer) brought a declaratory action seeking a ruling that it had no duty to defend or indemnify the driver in any negligence suit brought on the children's behalf. The circuit court granted summary judgment for Insurer, ruling that coverage had expired twelve hours prior to the accident. The Supreme Court affirmed, holding that by failing to accept the offer from Insurer to renew her insurance policy, Driver's coverage expired the day before the accident under the express and unambiguous terms of the insurance contract. View "Alpha Prop. and Cas. Ins. Co. v. Ihle" on Justia Law
McLemore v. Weiss
Appellants, state police officers, brought this suit individually and on behalf of a class consisting of members of the Arkansas State Police Retirement System (ASPRS), contending that various state defendants had violated the law by failing to properly fund the ASPRS between 1992 and 2003 and that the improper funding violated the Arkansas Constitution. The circuit court dismissed some of Appellants' claims and remanded. On remand, the circuit court granted summary judgment for Defendants. On appeal, Appellants asserted that the circuit court erred in finding that a uniform and travel-expense allowance provided for in Ark. Code Ann. 12-8-209 was not reportable to the ASPRS as a portion of payroll pursuant to Ark. Code Ann. 24-6-209(a). The Supreme Court affirmed, holding that section 24-6-209(a) does not include a uniform and travel-expense allowance such that it is reportable to ASPRS for purposes of calculating retirement benefits. View "McLemore v. Weiss" on Justia Law
Payne v. Berry’s Auto, Inc.
Plaintiff purchased a vehicle and an extended service contract for the vehicle from Defendant. Plaintiff signed several transactional documents, including a buyer's guide, a retail installment contract, and a retail purchase agreement, all of which contained statements providing that Defendant would not pay for costs for any repairs and that Defendant expressly disclaimed all express and implied warranties. The vehicle subsequently required repairs, which Defendant refused to pay for. Plaintiff filed a complaint seeking damages for Defendant's alleged failure to honor implied warranties of the vehicle. The justice court held that Defendant disclaimed implied warranties for the vehicle. The district court affirmed. The Supreme Court affirmed on alternate grounds, holding (1) Defendant failed effectively to disclaim implied warranties on the vehicle; but (2) Plaintiff's breach of warranty claim failed for lack of evidence necessary to satisfy the elements of breach and causation. View "Payne v. Berry's Auto, Inc." on Justia Law
Mountain West Bank, N.A. v. Cherrad, LLC
This case arose out of several business transactions entered into by parties involved in the development of condominiums on Hauser Lake. Cherrad, Merritt & Marie, and Max & V (the Hale interests) were limited liability companies owned by Conrad and Cheryl Hale. Craig Kinnaman was sole proprietor of a business called CK Design. Merritt & Marie purchased the Hauser Lake property. Subsequently, the Hales and Kinnaman agreed to develop a portion of the property. Cherrad was the developer, and Mountain West Bank (MWB) made three loans to Cherrad to develop the project. CK Design suffered delays in the project and later left the project. In 2007, Kinnaman committed suicide, and the Estate recorded a $3.3 million construction lien on the condominiums. MWB brought this action 2008 against the Hale interests and the Estate seeking foreclosure on the three secured loans. The Hale interests and the Estate cross-claimed against each other. The district court (1) declared the Estate's construction lien invalid; and (2) determined Cherrad owed the Estate $76,278 for work that CK Design performed on the project. Finding no error, the Supreme Court affirmed. View "Mountain West Bank, N.A. v. Cherrad, LLC" on Justia Law
Furtado v. Goncalves
This case involved a mediated settlement agreement between two of the heirs of Alfredo and the executrix of his estate, Maria. The superior court ordered Plaintiffs, Lucilio and Patricia, to execute general releases and pay attorney's fees incurred by Maria in seeking to enforce the settlement agreement. Plaintiffs appealed, arguing that the superior court erred in ordering them to execute general releases with terms that were materially different from those contemplated during settlement negotiations, and in assessing attorney's fees. The Supreme Court vacated the judgment of the superior court, holding (1) the trial justice erred in ordering Plaintiffs to execute the general release where the general release's language exceeded the clear and unambiguous terms of the settlement agreement; and (2) the superior court erred in awarding attorney's fees to Defendant pursuant to R.I. Gen. Laws 9-1-45, as the statute's threshold requirement that the party to receive the attorney's fees award be the "prevailing party" had not been met. View "Furtado v. Goncalves" on Justia Law