Justia Contracts Opinion Summaries

Branham began teaching in 1983 and was a tenured law professor. She sometimes suffered from seizures. She had a 12-month teaching contract for 2006. For the spring semester she was assigned to teach constitutional law and torts. Branham indicated that she did not want to teach the classes, citing health reasons and her greater experience with criminal law. She nonetheless taught the courses. In summer Branham sold her house, moved to Illinois, and was granted a leave of absence. Assigned to teach constitutional law after returning from leave, she refused to do so. The dean terminated her employment in December. Her contract required that dismissal be voted upon by faculty. That process was not initially followed. Branham sought damages for violations of the Americans with Disabilities Act and the Michigan Persons with Disabilities Civil Rights Act, intentional infliction of emotional distress, and breach of contract. The district court dismissed all but the contract claim, granted a motion to limit the remedy on the contract-breach claim to equitable relief, held that the school had breached the contract, and ordered compliance. Faculty and the board of directors concurred in the dismissal. The district court entered judgment against Branham. The Sixth Circuit affirmed. View "Branham v. Thomas M. Cooley Law Sch." on Justia Law

After a school district (District) approved the conversion of an existing public school into a charter school, a union (UTLA) claimed that the District failed to comply with collective bargaining agreement provisions (CBPs) concerning charter school conversion. UTLA petitioned to compel arbitration pursuant to the collective bargaining agreement. The trial court denied the petition, finding that the collective bargaining provisions (CBPs) regulating charter school conversion were unlawful because they conflicted with the Education Code, and therefore, arbitration of those unlawful provisions should not be compelled. The court of appeals reversed, holding that the court's function in adjudicating a petition to compel arbitration was limited to determining whether there was a valid arbitration agreement that had not been waived. The Supreme Court reversed, holding (1) a court faced with a petition to compel arbitration to enforce CBPs between a union and a school district should deny the petition if the CBPs at issue directly conflict with provisions of the Education Code; and (2) because UTLA had not identified with sufficient specificity which CBPs the District allegedly violated, the case was remanded for identification of those specific provisions and to address whether the provisions conflicted with the Education Code.

Circle Y filed a complaint alleging, among other things, breach of contract when the school district terminated a construction management services contract with Circle Y. The trial court denied the school district's motion to dismiss and the court of appeals affirmed. The court held that, in light of the determination by the court of appeals that the trial court correctly denied the motion to dismiss because Circle Y's complaint alleged facts that, when taken as true, established that the contract was not void as a matter of law due to voter approval of the educational local option sales tax, it was not necessary for the court of appeals to construe OCGA 20-2-506(h) in order to resolve the appeal. Accordingly, the court remanded to the court of appeals with direction that it vacate that portion of the Division order that addressed OCGA 20-2-506.

John Doe filed a lawsuit arising from the termination of his enrollment as a medical student at the University of Nebraska Medical Center (UNMC) against the Board of Regents of the University of Nebraska and several faculty members (Defendants). During the pendency of the case, all causes of action except the claim for breach of contract were dismissed. The district court determined that Doe's dismissal was not in violation of a contract between Doe and UNMC regarding the conditions of Doe's continued enrollment. The court then sustained Defendants' motion for summary judgment, dismissing Doe's cause of action for breach of contract and thereby dismissing the case. The Supreme Court affirmed, holding that UNMC did not breach its contract with Doe when it terminated his enrollment, and although the Court's reasoning differed from that of the district court, the court did not err when it sustained Defendants' motion for summary judgment.

Plaintiff sued the President of Valdosta State University, claiming that under the Due Process Clause, he was due notice of the charges, and a hearing to answer them, prior to his removal from campus. Plaintiff, a student, was removed on the ground that he presented a "clear and present danger" to the campus. Plaintiff joined the Board of Regents of the University System of Georgia as a defendant, claiming against the Board a state-law breach of contract claim for damages. Plaintiff claimed that the student handbook and contracts for student housing established binding agreements between the Board and the university students and the Board breached these agreements by failing to afford plaintiff the due process prior to his removal from campus. The court held that the district court properly denied the President's motion for summary judgment based on qualified immunity where plaintiff had a constitutional right to process before he was removed from the university and plaintiff's constitutional rights were clearly established. The court held, however, that the district court erred in failing to dismiss plaintiff's breach of contract claim against the Board as barred by the Eleventh Amendment where Georgia had not waived its Eleventh Amendment immunity for breach of contract actions.

Defendant, a school district, leased portable classrooms from plaintiff under contracts including penalties for early cancellation or default. Under the Downstate School Finance Authority for Elementary Districts Law (105 ILCS 5/1F-1) the state later created the Authority to manage the District's finances. The Authority canceled the leases before expiration, but did not authorize payment of the cancellation fees. The trial court granted summary judgment, finding it was legally impossible for the District to pay the cancellation fees, but also finding that the Authority had to comply with the cancellation terms of the leasing contracts. The appellate court affirmed the judgment in favor of the District on the cancellation fees and vacated as moot the declaratory judgment in favor of plaintiff. The Illinois Supreme Court concluded that the legislature intended the Act to permit the Authority to cancel a school district's contract with a third party, but that cancellation must be consistent with the contractual terms agreed to by the school district and the third party. The Authority can cancel the leasing contracts, but must pay the contractual fees for early cancellation.

While away for a competition in a school-supported event, students caused damage to a motel where they were lodging. The motel's property insurer paid to repair the damage then exercised its right of subrogation pursuant to its insurance contract with the motel to seek to recover compensation for those responsible for the loss. The insurer filed a complaint against the school district, alleging it was liable for breach of contract based on its failure to protect and safeguard the property from damage during the period of occupancy and to refrain from activities that would damage the property. The superior court granted the school district's motion for summary judgment. The Supreme Court affirmed, holding that because the school district did not undertake to be responsible to pay damages in a subrogation action, the insurer's action against the school board was barred.

LTTS Charter School ("LTTS") was an open-enrollment school that retained C2 Construction, Inc. ("C2") to build school facilities at a site Universal Academy had leased. C2 filed a breach of contract suit and Universal Academy filed a plea to the jurisdiction claiming immunity from suit. The trial court denied the plea and Universal Academy brought an interlocutory appeal under Section 51.014(a)(8) of the Civil Practice and Remedies Code. In the court of appeals, C2 moved to dismiss the interlocutory appeal, arguing that Universal Academy was note entitled to one because it was not a governmental unit under the Torts Claims Act ("Act"), Tex. Civ. Prac. & Rem. Code 101.001(3)(D). At issue was whether an open-enrollment charter school was a governmental unit as defined by Section 101.001(3)(D) and thus, able to take an interlocutory appeal from a trial court's denial of its plea to the jurisdiction. The court held that open-enrollment charter schools were governmental units for the Act purposes because the Act defined government unit broadly to include any other institution, agency, or organ of government derived from state law; the Education Code defined open-enrollment charters schools as part of the public school system, which were created in accordance with the laws of the state, subject to state laws and rules governing public schools and, together with governmental traditional public schools, have the primary responsibility for implementing the state's system of public education; and the Legislature considered open-enrollment charter schools to be governmental entities under a host of other laws outside the Education Code. Accordingly, because Universal Academy was a governmental unit under the Act, the court of appeals had jurisdiction to hear its interlocutory appeal under Section 51.014(a)(8).

A suit by a school district employee, terminated after absence under the Family and Medical Leave Act, was dismissed. The Seventh Circuit remanded claims under the FMLA and for breach of contract. The parties entered a settlement agreement. After the superintendent for the district took his own life, the employee challenged the agreement and refused to sign the agreement. The district court dismissed the entire case and a motion for sanctions against the employee is pending. The Seventh Circuit affirmed. The oral settlement, agreed-to in the presence of a magistrate, is valid; the fact that the employee was unaware that the superintendent was under investigation for child molestation does not amount to concealment of a fact material to this case. The employee's refusal to comply with court orders to sign the agreement left the court with little choice but to dismiss her claims, causing forfeiture of a substantial settlement.