Justia Contracts Opinion Summaries

Appellants filed a complaint for breach of contract, non-disclosure, rescission, damages, and negligence against Appellees. Appellants obtained a default judgment. Appellees moved to set aside the default judgment on the grounds that the summons was defective on its face. The circuit court granted the motion and set aside the default judgment due to the defective summons and resulting lack of personal jurisdiction over Appellees. Appellees then filed a motion to dismiss the case with prejudice on the grounds that service was never completed and that the savings statute did not apply. The circuit court granted the motion to dismiss. The Supreme Court (1) affirmed the circuit court’s ruling setting aside the default judgment, as the summons failed strictly to comply with the requirements of Ark. R. Civ. P. 4(b); and (2) reversed the dismissal with prejudice, holding that Appellants were entitled to the benefit of the savings statute. View "Jones v. Douglas" on Justia Law

Patti Roberts was injured at a charity event sponsored by Green Valley Enterprises when she was waiting in line to ride in a hot air balloon and was struck by the balloon’s basket. Sundog Ballooning, LLC was the owner and operator of the hot air balloon providing tethered rides at the event. Roberts filed suit against Sundog, alleging negligence. Sundog moved for summary judgment, arguing that Wisconsin’s recreational immunity statute barred Roberts’s claims and that her claims were barred by a waiver of liability form that she signed. The circuit court granted summary judgment for Sundog, concluding that Sundog was entitled to recreational immunity and that the waiver of liability form Roberts signed was valid as a matter of law. The court of appeals affirmed. The Supreme Court reversed, holding (1) Sundog was not entitled to immunity under Wis. Stat. 895.52 because it was not an “owner” under the statute; and (2) the waiver of liability form violated public policy and was unenforceable as a matter of law. View "Roberts v. T.H.E. Insurance Co." on Justia Law

The apartment building in which Tenants lived was damaged by a fire. For purposes of this appeal, the parties agreed that the fire was caused by Tenants’ negligence. Landlord’s insurer paid for the repairs to the building and then brought this subrogation action against Tenants in the name of Landlord to recover the money it paid to repair the damage caused by the fire. The district court granted summary judgment in favor of Tenants, determining that the parties did not reasonably expect that Tenants would be liable for the damage they caused. The court of appeals reversed, concluding that the lease agreement clearly reflected the parties’ intention that Tenants would reimburse Landlord for any damage caused by their negligence. The Supreme Court affirmed in part and reversed in part, holding (1) under the circumstances of this case, it is reasonable that Tenants should be liable for negligence they caused to the leased premises; but (2) the parties would not reasonably have expected that Tenants would be liable for damage to other property belonging to Landlord. Remanded. View "Melrose Gates, LLC v. Moua" on Justia Law

Beverage Systems of the Carolinas, LLC (Plaintiff) entered into an asset purchase agreement with Loudine Dotoli and two companies to purchase the assets, customer lists, and inventory of the companies. The parties executed a non-competition agreement (Agreement) that contained a provision permitting the trial court to revise its temporal and geographic limits that would otherwise render the Agreement unenforceable. Loudine’s wife, Cheryl, who was not a party to the Agreement, later formed Associated Beverage Repair, LLC. Plaintiff filed a complaint against Loudine, Cheryl, and Associated Beverage, alleging against Loudine breach of the agreement not to compete and against all Defendants tortious interference with contract, tortious interference with prospective economic advantage, and unfair and deceptive practices. Defendants answered that the Agreement was unenforceable by being overly broad in geographic scope. The trial court entered summary judgment for Defendants. The Court of Appeals reversed, concluding that the trial court erred in refusing to amend the Agreement and in granting summary judgment on Plaintiff’s remaining claims. The Supreme Court reversed, holding (1) the Agreement is unenforceable at law and cannot be saved, as parties cannot contract to give a court power that it does not have; and (2) the trial court properly entered summary judgment in Defendants’ favor on Plaintiffs’ remaining claims. View "Beverage Sys. of the Carolinas, LLC v. Associated Beverage Repair, LLC" on Justia Law

Plaintiff, an agricultural supply company, was delivering its own products in a semi-trailer when the semi-trailer wrecked and spilled fertilizers and chemicals, contaminating several hundred cubic yards of soil. Plaintiff suffered a loss of almost $1 million due to the environmental remediation and for the value of the trailer and its contents. Plaintiff had been leasing the semi-tractor and its driver from another source at the time of the accident. Plaintiff, on behalf of itself and its insurer, filed suit against the lessors and their driver, alleging negligence and breach of contract. The district court granted summary judgment in favor of Defendants, concluding that the terms of the lease and Iowa Code 325B.1 barred any recovery by Plaintiff. The Supreme Court reversed, holding (1) section 325B.1 governs relations between authorized motor carriers and shippers and does not apply to the lease in this dispute because Plaintiff is a private carrier rather than a motor carrier; (2) the indemnification provisions in the lease are valid and enforceable; and (3) the anti-subrogation rule limits potential recovery in this case. View "United Suppliers, Inc. v. Hanson" on Justia Law

Plaintiffs Shakeri and Taji filed suit against ADT, alleging a breach of contract claim and tort claims under Texas law for negligence, fraud, unconscionable conduct, and breach of the implied warranty of good and workmanlike performance. Plaintiffs were robbed at gunpoint and injured at their jewelry store. During the robbery, Shakeri pushed the button to trigger the alarm system multiple times, but the alarm system and the backup alarm failed to work. The district court ultimately dismissed plaintiffs’ tort claims and limited their contractual recovery in three separate orders. Determining that plaintiffs are bound by the terms of a 1999 Contract, the court concluded that the district court erred in dismissing plaintiffs' negligence claim where Shakeri's injury is the kind of physical harm that is not covered by the economic loss rule and is not defeated by the existence of a contract between the parties; plaintiffs failedto state adequate claims for breach of the implied warranty of good and workmanlike performance under Texas law; the district court did not err in dismissing plaintiffs’ unconscionable conduct claim; and plaintiffs' fraudulent inducement claim is barred under Texas law. Therefore, the court reversed the district court's dismissal of plaintiffs' negligence claim and remanded for further proceedings on this claim. The court affirmed the district court's dismissal of plaintiffs' remaining tort claims. View "Shakeri v. ADT Security Servs." on Justia Law

Lopez & Medina Corp. (L&M) filed a lawsuit against several insurers for Patriot Air, LLC, alleging that the insurers were liable for L&M’s breach of contract claims against Patriot Air. The district court dismissed L&M’s complaint, concluding that the relevant insurance policy did not provide coverage for contract claims. The First Circuit affirmed. L&M and its owner subsequently filed the complaint in this action seeking recovery in tort for Patriot Air’s negligence arising out of the same set of facts that underlay the previous suit’s breach of contract claims. The district court dismissed the case on the ground of res judicata. The First Circuit affirmed, holding that the district court correctly invoked res judicata in dismissing the action. View "Medina-Padilla v. US Aviation Underwriters, Inc." on Justia Law

The underlying coverage dispute arose from the supplying of a defective ingredient for incorporation into Wisconsin Pharmacal Company (Pharmacal) probiotic supplement tablets. Pharmacal brought this action against Jeneil Biotech, Inc. and Nebraska Cultures of California, Inc. (the Insureds) and the Netherlands Insurance Company and Evanston Insurance Company (the Insurers), alleging numerous tort and contract claims. The Insurers moved for summary judgment, arguing that their respective insurance policies did not cover any damages that arose out of the causes of action against the Insureds. The circuit court granted the Insurers’ motions for summary judgment, determining that the facts of this case did not trigger the Insurers’ duties to defend. The court of appeals reversed, concluding that the policies provided coverage. The Supreme Court reversed, holding that there was no “property damage” caused by an “occurrence” in this case, and even if there were, certain exclusions in both policies applied to negate coverage. View "Wis. Pharmacal Co., LLC v. Neb. Cultures of Cal., Inc." on Justia Law

The underlying action in this case took place in a California court and resulted in a jury award of compensatory damages of $22.3 million in favor of Sierra Railroad Company and against Patriot Rail Company LLC. The jury also awarded punitive damages and exemplary damages in favor of Sierra. Sierra moved to amend the California judgment to add Gary Marino, the former Chairman, President and CEO of Patriot Rail, as a judgment debtor. Marino subsequently commenced this action seeking advancements of attorneys’ fees and expenses for the claims asserted against him in the post-judgment motion. The Court of Chancery granted summary judgment in favor of Marino, holding that Marino was entitled to some, but not all, of the fees and expenses that he has and will incur defending against the post-judgment motion. View "Marino v. Patriot Rail Co. LLC" on Justia Law

Plaintiff filed suit for breach of contract, negligence, wrongful foreclosure, and violations of the Texas Deceptive Trade Practices Act (DTPA), Tex. Bus. & Com. Code 17.50(a)(1)). On appeal, plaintiff challenged the district court's dismissal of her claims, as well as her motion to join a non-diverse defendant. The court concluded that the district court's dismissal of plaintiff's breach-of-contract claim was proper because she failed to allege any facts showing her own performance and did not refute the facts in documents referred to in her complaint, central to her claims, and attached to the motion to dismiss; the dismissal of the negligence claim was proper where any damages stemming from an alleged violation of those solely contractual duties are not redressable in tort; the wrongful-foreclosure claim was properly dismissed where plaintiff never alleged that Wells Fargo disposed of the house at a “grossly inadequate selling price,” nor does she allege that Wells Fargo fraudulently chilled the bidding at the foreclosure sale; and, where plaintiff bases her DTPA claims on Wells Fargo’s failure to make automatic withdrawals to pay the loan, such services cannot form the basis of a DTPA claim because they are incidental to the loan and would serve no purpose apart from facilitating the mortgage loan. Finally, in regard to the motion to join a non-diverse defendant, the district court applied the correct legal standard and its finding of fact were not clearly erroneous. Accordingly, the court affirmed the judgment. View "Villarreal v. Wells Fargo Bank, N.A." on Justia Law