Justia Contracts Opinion Summaries

Wild Rose Entertainment and Signature Management Group (SMG) entered into an agreement that delineated the parties' relationship with regard to future state casino projects. After Wild Rose was awarded a gaming license to develop a casino in Emmetsburg, it terminated the agreement. SMG sued Wild Rose for breach of contract, and a jury found Wild Rose breached the agreement. During the Emmetsburg action, Wild Rose was awarded a gaming license to develop a casino in Clinton. SMG then filed a separate action against Wild Rose, alleging that it breached paragraph 5A of the agreement by failing to negotiate in good faith with SMG for the management of the Clinton casino. Paragraph 5A was litigated in the Emmetsburg action. The district court granted summary judgment for Wild Rose, concluding the doctrine of claim preclusion barred SMG's current claim. The court of appeals affirmed after finding Wild Rose repudiated the entire agreement, which required SMG to seek damages for all remaining rights of performance under the contract in the first lawsuit. The Supreme Court affirmed, holding (1) no genuine issue of material fact existed as to whether Wild Rose repudiated the agreement, and (2) the doctrine of claim preclusion barred the action.

One of the subsidiaries of Annett Holdings was a trucking company that employed Michael Vititoe as a driver. Vititoe was given a Comdata credit card to purchase fuel. Comdata had a written contract with Kum & Go that enabled the Kum & Go truck stop from which Vititoe purchased fuel to handle Comdata transactions. For four years, Vititoe used the Comdata credit card at the Kum & Go truck stop to obtain cash while reporting purchases of fuel. After the fraud was discovered, Vititoe was arrested and convicted of theft. Annett Holdings sued Kum & Go for negligence and breach of contract as an alleged third-party beneficiary of the contract between Kum & Go and Comdata. The district court granted summary judgment to Kum & Go, (1) finding the negligence claim was barred by the economic loss rule; and (2) rejecting the breach of contract claim on the ground that Annett was not an intended beneficiary of the contract. The Supreme Court affirmed, holding the district court did not err in granting summary judgment to Kum & Go on both claims.

Plaintiff Mark Peak broke his leg while helping Ellis and Rachel Adams move furniture using a rented U-Haul truck. The liability insurer for U-Haul paid its policy limits of $20,000 to Peak in exchange for a release that specifically named Ellis and arguably covered Rachel. When Peak sought additional compensation from another of insurer for the Adamses, the insurer denied coverage based on the release. Peak filed a negligence action against Adamses, alleging they were liable for negligence in their operation of the rental truck and their failure to remove snow from their driveway. The district court granted defendants' motion for summary judgment, concluding the release barred Peak's claims against both Ellis and Rachel. The court of appeals reversed. At issue was whether the release covered Ellis and Rachel as well as U-Haul and its insurer. On further review, the Supreme Court held that the district court correctly granted summary judgment for Ellis based on the release, while fact questions precluded summary judgment for Rachel. The Court vacated the decision of the court of appeals and affirmed in part and reversed in part the district court judgment.

Gerald Kirke and Wild Rose Entertainment (collectively, defendants), entered into an agreement with John Pavone and Signature Management Group (collectively, plaintiffs), stating the ownership and management relationship between the parties upon the opening of casino projects within the state. Wild Rose later terminated the agreement, and plaintiffs sued defendants for breach of contract and other claims. The district court sustained defendants' motion for a directed verdict on most of plaintiffs' claims but allowed the breach of contract claims. After a jury trial, the district court found Wild Rose breached the agreement and awarded plaintiffs ten million dollars in damages. Defendants filed a motion for a new trial, which the district court denied. The court of appeals reversed the judgment and remanded the case for judgment in favor of defendants. On review, the Supreme Court vacated the decision of the appellate court and affirmed the judgment of the district court, holding, inter alia, that the district court did not err in (1) overruling defendants' motion for a directed verdict on plaintiffs' breach of contract claims; (2) allowing the jury to award damages for a period of as much as thirty years; and (3) denying defendants' motion for a new trial.