Justia Contracts Opinion Summaries

Norma Slater-Moore hired the Goeldner Law Firm and its attorneys to represent her in what ultimately was an unsuccessful lawsuit and its appeal. Slater-Moore and Goeldner entered into two separate contracts during the course of that litigation, both containing nearly identical provisions stating that any attorney-fee disputes would be submitted to arbitration. Slater-Moore later sued Goeldner for legal malpractice and breach of contract, disputing, among other allegations, the amount she was billed for attorney fees. Goeldner successfully moved the Circuit Court to compel arbitration of the attorney-fee dispute, and Slater-Moore appealed that decision to the Supreme Court. Because the Supreme Court found ]no grounds for revocation of a valid agreement to arbitrate the fee dispute, the Court affirmed the circuit court's judgment. View "Slater-Moore v. Goeldner" on Justia Law

Susie Stohm, the one-time CFO of ClearOne Communications, was charged with eight federal criminal counts relating to an investigation into certain accounting practices at ClearOne. Strohm was eventually acquitted of all but one count. Strohm and her counsel (Counsel) filed this action against ClearOne, alleging that ClearOne was required to indemnify Strohm for her criminal defense costs. The district court (1) ordered ClearOne to indemnify Strohm for her defense costs subject to certain restrictions, and (2) found that a contract between the parties entitled Counsel to charge ClearOne eighteen percent interests on the amounts that were billed to ClearOne but not timely paid and to collect the costs it expended in enforcing ClearOne's contractual obligation to indemnify Strohm. A unanimous court affirmed the district court affirmed the district court's indemnification decisions in large part, its rulings relating to contract termination rights, its reasonableness determination for fees in the criminal case, and its decision to enforce the eighteen percent interest rate. A majority of the court, however, reversed the district court's decision to allow Counsel to recoup its fees in the collection matter. Remanded. View "Strohm v. ClearOne Commc'ns, Inc." on Justia Law

Plaintiff was injured while participating in a guided horseback ride near Sundance Resort. Prior to the ride, Plaintiff signed a release (waiver) waiving her right to sue Defendants, Sundance-related entities (collectively, Sundance) for injuries caused by Sundance's ordinary negligence. Plaintiff appealed, contending that the waiver was unenforceable under the Limitations on Liability for Equine and Livestock Activities Act (Equine Act) and that it violated the public policy expressed in the Equine Act. The Supreme Court affirmed, holding (1) the Equine Act does not invalidate preinjury releases for ordinary negligence, nor does the Equine Act evidence a public policy bargain struck by the legislature; and (2) therefore, the waiver is enforceable. View "Penunuri v. Sundance Partners, Ltd. " on Justia Law

On December 14, 2012, the district court issued an alternative writ of mandate directing several irrigation districts to comply with Mont. Code Ann. 85-7-1956 and -1957 before executing a water use agreement with the Confederated Salish and Kootenai Tribes of the Flathead Nation and the United States. On February 15, 2013, the district court issued another writ of mandate that rescinded and superseded the alternative writ of mandate. The writ of mandate enjoined the irrigation districts from entering into the proposed agreement. The Supreme Court vacated both the district court's writ of mandate and injunction and the court's alternative writ of mandate, holding that the district court (1) issued an appealable order, making the appeal from the district court's writ of mandate and injunction as well as the issue of whether the statutes apply to the water use agreement properly before the Court; (2) improperly granted the writ of mandate and injunction; and (3) incorrectly compelled the irrigation districts to comply with sections 85-7-1956 and -1957 before they executed the water use agreement. View "W. Mont. Water Users Ass'n, LLC v. Mission Irrigation Dist." on Justia Law

To help finance her purchase of a condominium (condo) for $395,000, Mary McCulley sought a residential loan from Heritage Bank (Bank) for $300,000. American Land Title Company (ALTC) provided a commitment for title insurance. McCulley signed a promissory note and signed a deed of trust as collateral. Subsequently, ALTC changed the designated use of the condo in the deed from residential to commercial. After closing, McCulley discovered the Bank had issued her an eighteen-month, $300,000 commercial property loan rather than the thirty-year residential property loan for which she applied. When she was unable to obtain long-term refinancing on the property, McCulley signed a warranty deed transferring ownership of the condo to the Central Asia Institute and used the proceeds to pay off the loan. McCulley then sued ALTC and the Bank (collectively, Defendants) for, inter alia, negligence, breach of contract, slander of title, and fraud. The district court granted summary judgment for Defendants. The Supreme Court (1) reversed the district court's order of summary judgment in favor of the Bank on the issue of fraud, as genuine issues of material fact existed relative to McCulley's claim of fraud on the part of the Bank; and (2) otherwise affirmed. View "McCulley v. Am. Land Title Co." on Justia Law

This dispute stemmed from the actions of a former Bank employee, Diane Becker, who pleaded guilty to federal fraud and money laundering charges. Becker had previously assisted Marilyn Feller with her banking and finances. Feller filed a complaint against the Bank, alleging, inter alia, negligent supervision, wrongful conversion, and intentional and negligent infliction of emotional distress, claiming that her financial standing and credit reputation were damaged by Becker and the Bank. The district court entered summary judgment for the Bank, determining (1) Feller's state law causes of action were preempted by the Fair Credit Reporting Act, (2) Feller failed to provide sufficient evidence to support her emotional distress claims, and (3) Feller failed to establish the element of unauthorized control on her conversion claim. Finding no error, the Supreme Court affirmed, holding that the district court did not err in entering summary judgment in favor of the Bank on all of Feller's claims. View "Feller v. First Interstate Banksystem, Inc." on Justia Law

Plaintiffs filed suit against West County Motor Company for violation of the Missouri Merchandising Practices Act (MMPA) and for conversion. Each plaintiff paid a deposit to West County to secure the purchase of a vehicle and signed a vehicle buyer's order providing that "all deposits are non refundable." However, all plaintiffs but one alleged that West County told them their deposits were refundable if the purchase was not completed. When Plaintiffs decided not to purchase their vehicles, West County told them their deposits would not be refunded. The trial court dismissed the MMPA claims for failure to state a claim. The Supreme Court (1) affirmed the trial court's dismissal of that portion of Plaintiffs' claims alleging violations of the MMPA based on violations of Mo. Rev. Stat. 364.070.4; and (2) reversed the trial court's dismissal of Plaintiffs' claims alleging violations of the MMPA based on conversion, lack of good faith, and an illegal liquidated damages clause, as Plaintiffs' allegations of conversion, unlawful liquidated damages, and lack of good faith were sufficient to survive a motion to dismiss. View "Ward v. W. County Motor Co., Inc." on Justia Law

Conlin refinanced with a loan from Bergin, secured by a mortgage containing a provision that recognized MERS as a nominee for Bergin and Bergin’s successors. Bergin sold the note to the Real Estate Mortgage Investment Conduit, for which U.S. Bank was trustee. The mortgage was held by MERS, and serviced by GMAC. In 2008, MERS assigned the mortgage to “U.S. Bank National Association as trustee.” In 2010 Orlans sent Conlan notice (Mich. Comp. Laws 600.3205a), of default and of his ability to request loan modification, stating that it was sent on behalf of GMAC as “the creditor to whom your mortgage debt is owed or the servicing agent for the creditor.” In 2011, Orlans published notice of foreclosure sale, stating that “the mortgage is now held by U.S. Bank National Association as Trustee by assignment.” The notice was also posted on the property, which was sold at a sheriff’s sale on March 31. On October 28, 2011, Conlin sought damages and to have the foreclosure sale set aside. The district court dismissed. The Sixth Circuit affirmed. Even if the “robo-signed” assignment were invalid, Conlin was not prejudiced. He has not clearly shown fraud in the foreclosure process, as required for a challenge after expiration of the six-month redemption period. View "Conlin v. Mrtg. Elec. Registration Sys., Inc." on Justia Law

In 2006, when the real estate market was strong, Burke, a citizen of Ireland, signed a contract with the developer for the Trump International Hotel & Tower in Chicago, to buy a condominium unit and two parking spaces in the Trump Tower. The total purchase price was $2,282,130, which included $150,000 for the parking spaces. Burke deposited $456,426 in earnest money. Burke later refused to close the purchase and, after the developer declined to refund his earnest money, he sued, claiming that the developer made a material change when it placed parking on the Trump Tower’s sixth floor. The Seventh Circuit affirmed dismissal, noting that the documents he signed demonstrate that Burke was on notice that the use of the sixth floor for parking was a possibility. The agreement was not void for lack of mutuality with respect to provisions for breach, as the developer had an obligation to act in good faith to convey the condominium. View "Burke v. 401 N. Wabash Venture, L.L.C." on Justia Law

This dispute arose out of a video game publishing agreement entered into by Timegate and Gamecock. Under the terms of the agreement, Timegate was to be the developer and Gamecock was to be the publisher of a futuristic military-style video game entitled "Section 8." When their business relationship deteriorated, the parties proceeded with arbitration and the arbitrator awarded Gamecock monetary compensation and a perpetual license in the video game's intellectual property. The district court vacated the arbitrator's award, determining that the perpetual license was not consistent with the "essence" of the underlying contract. Because the agreement bestowed broad remedial powers upon the arbitrator and because it was fraudulently induced and irreversibly violated by Timegate, the perpetual license was a rational and permissible attempt to compensate Gamecock and maintain the agreement's essence. Accordingly, the court reversed and remanded, finding that the perpetual license was a remedy that furthered the essence of the publishing agreement. View "TimeGate Studios, Inc. v. Southpeak Interactive, L.L.C., et al" on Justia Law