Justia Contracts Opinion Summaries

Pacific Steel & Recycling entered into a contract with Emineth Custom Homes to build four duplex apartment units. The contract specified that Pacific would advance a $474,625 down payment to Emineth upon execution of the contract. After canceling the contract for the duplexes Pacific brought an action against Emineth seeking recovery of the down payment made to Emineth under the contract. Emineth counterclaimed, alleging breach of contract and other claims. A jury determined that Emineth did not breach the contract with Pacific but that Pacific breached the contract with Emineth. The jury awarded $238,241 in Emineth’s favor. The district court entered judgment on the verdict in favor of Emineth but ordered that Emineth’s jury award in its favor become a judgment against Emineth and in favor of Pacific for $236,189. The Supreme Court affirmed in part and reversed in part, holding (1) the jury’s verdict with regard to the finding that Pacific breached the contract with Emineth stands; but (2) the district court in rendering the judgment made a factual determination contrary to the verdict returned by the jury. Remanded for entry of a judgment of $238,241 against Pacific and in favor of Emineth. View "Pacific Hide & Fur Depot v. Emineth Custom Homes, Inc." on Justia Law

For more than a century, Asarco LLC and its predecessors operated a lead smelting facility (the Site). For almost fifty years, Atlantic Richfield Company’s predecessor operated a zinc fuming plant on land leased from Asarco at the Site. Atlantic Richfield subsequently sold the plant and related property to Asarco. Due to extensive contamination at the Site, the Environmental Protection Agency determined that Asarco was obligated to fund cleanup efforts at the Site. After conducting extensive remediation at the Site, Asarco filed a complaint seeking contribution pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) from Atlantic Richfield, asserting that Atlantic Richfield was liable under CERCLA for its equitable share of costs related to the Site’s cleanup. The federal district court granted summary judgment for Atlantic Richfield, concluding that Asarco’s claims were untimely under CERCLA’s statute of limitations. Asarco then commenced the present action against Atlantic Richfield alleging several state-law claims. The district court granted Atlantic Richfield’s motion for judgment on the pleadings on the ground that the doctrine of claim preclusion barred Asarco’s claims. The Supreme Court affirmed, holding that claim preclusion barred Asarco’s action because Asarco could have brought its state-law claims before the federal district court in Asarco I. View "Asarco LLC v. Atlantic Richfield Co." on Justia Law

Julia Fenwick and the State, Department of Military Affairs and Emergency Services Division (Department) executed a Severance Agreement whereby the Department agreed to lay off Fenwick, as opposed to discharging her, in exchange for Fenwick releasing any claims she had against the Department. Fenwick later filed this action alleging that the Severance Agreement should be rescinded for several reasons. The district court concluded as a matter of law that the Severance Agreement could not be rescinded. The Supreme Court affirmed, holding that the district court did not err by (1) ruling that the Severance Agreement was lawful; and (2) ruling that the undisputed facts established that the Department’s consideration for the Severance Agreement did not fail. Remanded with instructions to proceed on Fenwick’s remaining claims. View "Fenwick v. State" on Justia Law

Plaintiff initiated this action against Defendant alleging that Defendant defrauded her out of $100,000. Plaintiff alleged claims of unjust enrichment, constructive trust, and fraud. The district court ultimately granted default judgment in favor of Plaintiff after Plaintiff filed a motion for sanctions requesting a default judgment against Defendant as a sanction for violating a district court scheduling order requiring mediation. The Supreme Court affirmed, holding (1) the district court did not abuse its discretion by imposing default judgment for Defendant’s failure to comply with the court ordered mediation; and (2) the district court did not err in awarding prejudgment interest. View "Stafford v. Fockaert" on Justia Law

This was the third of three lawsuits arising from the development of condominiums at Lakeside Village on Hauser Lake in Lewis and Clark County. Cherrad, LLC (Cherrad) was the project’s developer and Mountain West Bank (Bank) was its lender. Craig Kinnaman was the general contractor on the project but died in 2007. In this third suit, the estate of Kinnaman (the Estate) brought eight claims against the Bank. The Bank moved for summary judgment on all the Estate’s claims on the grounds that the claims were barred by the compulsory counterclaim rule or the doctrine of claim preclusion. The district court granted summary judgment on all claims. The Supreme Court affirmed, holding that the district court did not err or abuse its discretion (1) in granting the Bank’s motion to change venue; (2) in granting summary judgment in favor of the Bank on all claims; (3) by taking judicial notice of the record in previous actions; and (4) by denying the Estate’s motion for relief from judgment under Mont. R. Civ. P. 60(b)(6). View "Kinnaman v. Mountain West Bank, N.A." on Justia Law

Keller Transport, Inc. leased a tanker truck from Wagner Enterprises, LLC to transport gasoline. The truck’s trailer overturned and spilled 6,380 gallons of gasoline, which flooded several homeowners’ properties. Keller and Wagner were both insured under a commercial transportation policy. Westchester Surplus Lines Insurance Company insured both Keller and Wagner under an excess liability policy. Homeowners initiated suit against Keller and Wagner. Westchester undertook defense of the suit on behalf of Kohler and Wagner pursuant to a reservation of rights and defended Keller and Wagner until the limit of its excess coverage had allegedly been exhausted. Westchester sought a declaration that the limit under its excess policy was $4 million in total and that the limit had been exhausted. As relevant to this appeal, the district court granted summary judgment against Westchester. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) did not err by determining that Westchester’s policy was ambiguous and that it provided an additional $4 million in coverage under the “general aggregate” limit; but (2) erred by holding that Westchester breached its duty to defend the insureds under its policy. View "Westchester Surplus Lines Ins. Co. v. Keller Transport, Inc." on Justia Law

Todd Kiser initiated this action by filing a form complaint against Noel Kiser and Marie McDowell alleging that Noel and Marie owed him a sum of money arising out of an asserted agreement among them regarding their father’s nursing care and cremation costs. The small claims court entered judgment in favor of Todd. Noel and Marie appealed the judgment to the district court. The district court dismissed the appeal, reasoning that the brief filed by Noel and Marie had been untimely filed. The Supreme Court reversed, holding that the district court erred in dismissing the appeal on the basis of the briefing deadline imposed in the inapplicable Municipal Court Appellate Rules. Remanded to the district court for reinstatement of Noel and Marie’s appeal and for further proceedings. View "Kiser v. Kiser" on Justia Law

Continental Partners bought a lot with two building pads from Yellowstone Development that was part of the Yellowstone Club subdivision. The purchase and sale agreement included an assurance that the houses Continental intended to build on the lot would have ski-in and gravity ski-out access built by the Yellowstone Club. During construction, Continental sold the homes to separate buyers, including the managing member of WLW Realty Partners, LLC. Before construction on the ski-out access on the two homes had begun, the Yellowstone Club filed for bankruptcy protection. The subsequent owners of Yellowstone Club informed the new owners that ski-out access to the homes would not be constructed. WLW Realty filed this action against Continental, alleging, inter alia, negligent misrepresentation and violation of the Montana Consumer Protection Act (MCPA). After a bench trial, the district court entered judgment for WLW Realty. The Supreme Court reversed, holding that the district court erred by (1) imposing liability on Continental for negligent misrepresentation, as WLW Realty failed to satisfy the first and second elements of the tort; and (2) finding that Continental had violated the MCPA, as Continental did not engage in unfair or deceptive acts or practices. View "WLW Realty Partners, LLC v. Continental Partners VIII, LLC" on Justia Law

Meadow Brook owned land that it developed into lots with covenants, conditions, and restrictions. Meadow Brook then decided to develop an undeveloped tract as an independent subdivision. The existing homeowners, however, argued that the covenants granted them exclusive use of three roads that future homeowners would need to use to access the subdivision. A court concluded that the covenants did not reserve an easement over the three roads for use by future lot owners. First American Title Insurance Company and First American Title Company of Montana (collectively, First American), which had issued Meadow Brook a title insurance policy, subsequently denied Meadow Brook’s claim for coverage and refused to further defend against the homeowners’ counterclaims. Meadow Brook settled with the homeowners in the easement litigation and then sued First American for, inter alia, breach of contract and negligence. The district court granted summary judgment to Meadow Brook as to the breach of contract claim, concluding First American had insured under the policy that the three roads would be open to public access. The Supreme Court affirmed, holding that the district court did not err in granting Meadow Brook’s motion for partial summary judgment on the breach of contract claim. View "Meadow Brook, LLP v. First Am. Title Ins. Co." on Justia Law

Greg LeMond had an oral contract to purchase a five-acre lot (Lot 11) at the Yellowstone Mountain Club from the lot's owner, Yellowstone Development. Yellowstone Development allegedly breached its contract with LeMond by combining twenty-three acres of additional property with Lot 11 to create what became the Overlook Lots, comprising a total of twenty-eight acres. LeMond sued, claiming that Yellowstone Development breached its contract to convey Lot 11 and was under an equitable duty to convey the entirety of Overlook Lots to LeMond. In its final determination, the district court quieted title to the Overlook Lots in favor of LeMond. The Supreme Court reversed in part, holding that the district court did not provide adequate insight into the equitable considerations involved in granting LeMond title to the Overlook Lots, as Yellowstone Development was obligated to transfer Lot 11 to LeMond and was unjustly enriched by failing to do so, but LeMond was entitled to enforce a constructive trust worth only the equitable value of the parties’ bargain. View "LeMond v. Yellowstone Dev., LLC" on Justia Law