Justia Contracts Opinion Summaries

In the first lawsuit, retirees, funded by the union, obtained a preliminary injunction preventing plaintiff from terminating their healthcare benefits. The case is still pending. In the second lawsuit, the plaintiff claims that the union's participation in the first lawsuit violated a collective bargaining agreement (CBA) and that the union, during negotiation of the CBA, committed breach of an implied warranty of authority, negligent misrepresentation, and intentional misrepresentation. The district court dismissed the second suit, holding that the union did not breach the CBA and that federal law preempted the state law claims. The Sixth Circuit affirmed that the union did not breach the CBA, which did not include a covenant not to sue, as claimed by the plaintiff. The court reversed with respect to preemption of the tort claims, which are "analytically distinct, but of a piece for purposes of" jurisdiction under 29 U.S.C. 185(a).

American Media Services, LLC (AMS) appealed an arbitration award that was decided in favor of former employee, Respondent Mark Steinmetz. Steinmetz claimed AMS breached his employment agreement, and the parties agreed to settle the dispute through arbitration. The arbitrator found in favor of Steinmetz. AMS filed a motion to have the award reconsidered by the circuit court, but the court entered judgment in accordance with the arbitrator's findings. The Supreme Court found in submitting its appeal, AMS did not appeal the order of the circuit court, it appealed the order of the arbitrator. Accordingly, the Court did not have jurisdiction over AMS' claim and dismissed it.

American Media Services, LLC (AMS) appealed an arbitration award that was decided in favor of former employee, Respondent Mark Steinmetz. Steinmetz claimed AMS breached his employment agreement, and the parties agreed to settle the dispute through arbitration. The arbitrator found in favor of Steinmetz. AMS filed a motion to have the award reconsidered by the circuit court, but the court entered judgment in accordance with the arbitrator's findings. The Supreme Court found in submitting its appeal, AMS did not appeal the order of the circuit court, it appealed the order of the arbitrator. Accordingly, the Court did not have jurisdiction over AMS' claim and dismissed it.

Petitioner filed a breach of contract claim against its former employee claiming that the employee violated the terms of her employment agreement by breaching the duty of loyalty and by breaching a non-solicitation clause which was included in the contract. The employee filed a counterclaim alleging that petitioner withheld her bonus in violation of the Maryland Wage Payment and Collection Law, Md. Code Ann., Labor and Employment section 3-501. At issue was whether an employee who breached her duty of loyalty could seek certain of the provisions of the contract which she breached. Also at issue was whether a party could recover attorneys' fees pursuant to a contract provision that provided reimbursement of fees incurred when a third party retained and paid counsel and the party did not pay attorneys' fees, nor had any obligations to pay attorneys' fees. The court held that the employee's breach of duty of loyalty did not result in forfeiture of her rights under the fee shifting provision of the non-solicitation clause where the clause presented divisible rights and obligations from the remainder of the contract. The court also held that the employee was entitled to attorneys' fees under the fee shifting provision where she prevailed under the terms of the contract and the breach did not result in the forfeiture of her rights.

The Court affirmed the lower courtâs decision dismissing Plaintiff-Appellant David Gerasâ contract claim for unpaid commissions and severance against his former employer International Business Machines (IBM). IBM canceled its sales incentive plan under which Geras maintained he accrued sales commissions worth over $100,000. The Court held that under Colorado law, the planâs incentive letter contained an effective disclaimer, and did not manifest an intent to be bound by the terms of its plan.