Justia Contracts Opinion Summaries

Shawn Slezak, a mechanic for Lancaster County, Nebraska, filed a grievance after his performance evaluation for 2021 was completed late and by higher-level supervisors rather than his direct supervisor. The evaluation, which was below the threshold for a merit increase, was delayed due to discrepancies between numerical ratings and written comments. Slezak argued that the late evaluation violated the collective bargaining agreement (CBA) and sought a merit increase.The Lancaster County Personnel Policy Board found that the late evaluation constituted a breach of contract and awarded Slezak a retroactive merit increase. The County challenged this decision, arguing that the remedy was improper since Slezak's evaluation score did not warrant a merit increase. The District Court for Lancaster County agreed with the County, reversing the Board's decision on the grounds that the remedy made Slezak "more than whole" and was inconsistent with the objective of a damages award in a breach of contract case.The Nebraska Supreme Court reviewed the case and affirmed the District Court's decision. The Court held that the Board's remedy was inappropriate because it exceeded the scope of a damages award in a breach of contract case. The Court emphasized that the objective of such an award is to make the injured party whole, not to provide a benefit they would not have received if the contract had been performed. The Court also noted that Slezak's score on the late evaluation was below the threshold required for a merit increase, and thus, the delay in the evaluation did not cause his injury. The Court concluded that the District Court did not err in reversing the Board's decision and affirmed the order. View "Lancaster County v. Slezak" on Justia Law

This case involves a dispute between D&M Roofing and Siding, Inc. (D&M), a roofing company, and Distribution, Inc., the owner of a warehouse. D&M had entered into a contract with Distribution to repair hail damage to the roof of Distribution's warehouse. However, Distribution later decided to use a different contractor for the repairs. D&M sued Distribution for breach of contract and unjust enrichment, claiming damages based on a cancellation fee provision in the contract. The district court found that the contract was enforceable and that Distribution had breached it. However, it also found that D&M was not entitled to any damages because it had not performed any work under the contract.The district court's decision was based on D&M's admission that its breach of contract damages were limited to those under the cancellation fee provision in the contract. The court found that under the clear and unambiguous language of the provision, D&M was only entitled to a cancellation fee of 20 percent of the "work done" by D&M. Since D&M had not performed any work, it was not entitled to the cancellation fee. The court granted summary judgment in favor of Distribution on D&M's unjust enrichment claim, explaining that an enforceable contract displaces such a claim.D&M later filed a second motion for summary judgment, this time alleging lost profits as the measure of damages for the breach of contract claim. The district court construed the motion as a motion to reconsider. The court explained that even though its prior order did not use the word "dismissed," it had disposed of the whole merits of the case and left nothing for the court's further consideration. The court denied D&M's motion and granted a cross-motion by Distribution for summary judgment. D&M appealed, but the appeal was dismissed for lack of jurisdiction because the court had not yet issued a final order or rendered a judgment. View "D& M Roofing & Siding v. Distribution, Inc." on Justia Law

The case revolves around a dispute over the calculation of postjudgment interest on a series of loans between David Meiergerd and Qatalyst Corporation and Roland Pinto. Meiergerd had filed a complaint in 2007 seeking to recover on a series of loans that occurred between him and the appellees. In 2008, the district court granted Meiergerd’s motion for default judgment, ordering the appellees to pay Meiergerd a certain amount plus postjudgment interest “at the rate of 16% compounded annually ($58.97 per day).”The appellees initiated a separate proceeding in 2022, seeking to vacate or amend the judgment from the earlier proceedings. This new action was ultimately dismissed. Subsequently, in the original case, the court granted the appellees’ motion for revivor. The appellees then filed a “Motion for Satisfaction and Discharge of Judgments” related to the judgment against them. The district court calculated the amount of postjudgment interest due to Meiergerd by multiplying the per diem rate stated in the 2008 order, $58.97, by the number of days between the date of the 2008 order and the date of payment. The court found that the appellees’ checks had satisfied the amount due on the judgment, including postjudgment interest, costs, and attorney fees.Meiergerd appealed to the Nebraska Court of Appeals, asserting that the computation of the amount due and owing in the satisfaction of judgment improperly used the specified per diem rate, but failed to apply compound interest on the postjudgment amount. He contended that the district court’s approval of this daily rate disregards the language in the 2008 order that stated that postjudgment interest would be “compounded annually.” The Court of Appeals affirmed the order of the district court, and Meiergerd petitioned for further review.The Nebraska Supreme Court affirmed the decision of the Court of Appeals. The court concluded that the 2008 order was ambiguous with respect to the manner of calculating postjudgment interest, and determined that the 2008 order provided for simple interest and did not introduce compound interest that had not been requested by Meiergerd or supported by prior conduct between the parties. View "Meiergerd v. Qatalyst Corp." on Justia Law

A Delaware corporation, Northern Natural Gas Company, sued another Delaware entity, Centennial Resource Production, LLC, in Nebraska for breach of contract. The dispute arose after Centennial, due to a cold weather event in Texas, was unable to use its reserved pipeline capacity and refused to pay the corresponding invoice. The district court concluded it had personal jurisdiction over Centennial based on Centennial's contractual consent and sufficient minimum contacts with Nebraska during the formation and implementation of their business relationship.Centennial appealed, arguing that the district court lacked personal jurisdiction. The Nebraska Supreme Court affirmed the lower court's decision, holding that Centennial consented to personal jurisdiction in Nebraska by joining Northern's Master Escrow Agreement that contained an express consent to jurisdiction in Nebraska and waived the personal jurisdiction defense. The court found that the Service Agreement, Joinder Agreement, and Master Escrow Agreement became one unitary unseverable agreement through the plain language of the Tariff. The court concluded that the forum selection clause found in the Master Escrow Agreement applied equally to the Service Agreement as one unitary agreement. Thus, due process was satisfied when Centennial consented to personal jurisdiction by entering into a contract that contains a valid forum selection clause, and Nebraska was not a forum non conveniens. View "Northern Nat. Gas Co. v. Centennial Resource Prod." on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment after determining that Plaintiff's claim for underinsured motorist benefits against American Family Insurance Company was time-barred, holding that Plaintiff's action was untimely.Plaintiff sought underinsured motorist benefits against American Family Insurance Policy, but the district court determined that the action was barred by a two-year limitation provision in the insurance policy. The district court granted summary judgment in favor of American Family. The Supreme Court affirmed, holding that the district court correctly found that Plaintiff's action was untimely. View "Rose v. American Family Insurance Co." on Justia Law

The Supreme Court vacated the order of the district court finding that the city council of the City of Fremont (Council) and the City of Fremont (City) lacked reasonable sufficient evidence to terminate a contract with the Dodge County Humane Society for animal control, holding that the district court lacked petition in error jurisdiction to review the decision.At a regularly scheduled meeting, the Council approved a motion authorizing Fremont's mayor to terminate the contract for animal control. The Humane Society later filed a petition in error alleging that the Council and the City had no cause to terminate the contract. Thereafter, the district court entered a temporary injunction / temporary restraining order in favor of the Humane Society. The County and City moved to dismiss, asserting that the Council's decision to authorize the mayor to send a letter was not an action that could support a petition in error. The district court sustained the petition in error and ordered the contract to be reinstated. The Supreme Court vacated the order below, holding (1) the Council did not exercise a judicial or quasi-judicial function in voting on the motion to send the disputed letter to the Humane Society; and (2) therefore, the district court lacked jurisdiction to review this action. View "Dodge County Humane Society v. City of Fremont" on Justia Law

The Supreme Court reversed in part the judgment of the district court granting Defendant's motion for a directed verdict in this breach of contract action and remanded the cause for a new trial, holding that the district court erred by granting a directed verdict on statute of frauds grounds.Defendant, a limited liability company, asked Plaintiff, a certified public accountant (and his professional corporation), to provide accountancy services in connection with Defendant's development of a residential neighborhood. After Plaintiff provided the agreed-upon services and Defendant failed to pay Plaintiff brought suit for breach of an oral contract. The district court granted Defendant's motion for a directed verdict, concluding that the parties' oral agreement was unenforceable because it fell under Neb. Rev. Stat. 36-202(1), a provision of the statute of frauds requiring agreements "not to be performed within one year" to be in writing. The Supreme Court reversed, holding (1) a reasonable jury could find the parties formed an enforceable contract; (2) because the contract did not have to be in writing under section 36-202(1), the district court erred in granting a directed verdict on that ground; and (3) there was no other basis upon which to grant a directed verdict. View "Bruce Lavalleur, P.C. v. Guarantee Group, L.L.C." on Justia Law

The Supreme Court vacated the district court's judgment awarding attorney fees in this action brought over a dispute between a general contractor and a property owner related to a residential construction contract but otherwise affirmed the judgment, holding that there was no statute or uniform course of procedure that allowed recovery of attorney fees on this record.After Property Owner failed to pay a construction lien General Contractor filed a breach of contract action and sought to foreclosure on the lien. Property Owner counterclaimed. The district court entered judgment in favor of General Contractor. Thereafter, the district court granted prejudgment interest in the amount of $49,946 and attorney fees in the amount of $115,473. The Supreme Court vacated the judgment in part, holding that the district court (1) erred in awarding attorney fees pursuant to Neb. Rev. Stat. 52-157 of the Nebraska Construction Lien Act; and (2) Property Owner was not entitled to relief on her remaining allegations of error. View "BCL Properties, Inc. v. Boyle" on Justia Law

The Supreme Court vacated the order of the county court denying a motion to rescind and unwind a agreement entered into to settle Maronica B.'s personal injury claim against Davion Brewer and his automobile insurance carrier, holding that the county court lacked subject matter jurisdiction.Maronica sustained serious injuries when a car that Davion was driving and in which Maronica was a passenger collided with a school bus. Maronica's mother and then-conservator applied to the county court for permission to settlement Maronica's claims against Davion and his insurer. The county court authorized the settlement. Thereafter, Maronica's father, the successor conservator, moved to rescind and unwind the agreement on the grounds that the settlement potentially limited Maronica's recovery against non-settling parties. The county court denied the motion. The Supreme Court vacated the county court's order and dismissed this appeal, holding that the county court did not have subject matter jurisdiction. View "In re Guardianship & Conservatorship of Maronica B." on Justia Law

The Supreme Court reversed the judgment of the county court in favor of the decedent's brother in this estate case, holding that, under the circumstances of this case, the county court erred.Jordon R. Wiggins died, leaving two minor children and an ex-wife. In response to a claim against the estate regarding life insurance coverage that Wiggins was required under the divorce decree to maintain for the children's benefit, Wiggins's ex-wife, as guardian and next friend of the minor children, his brother, and his father, as personal representative of Wiggins's estate, entered into a settlement agreement. Thereafter, the parties jointly filed a petition for a declaration of their rights and obligations under the agreement. The county court ruled in favor of the brother, and the ex-wife appealed. The Supreme Court reversed and remanded the cause with directions for the county court to rescind the agreement and conduct further proceedings, holding that a mutual mistake as to the existence of a fact that was a material inducement to the contract is not ground for reformation, although it may be ground for rescission. View "In re Estate of Wiggins" on Justia Law