Justia Contracts Opinion Summaries

Arlene Easter sold insurance for First Express Services Group, Inc. Arlene subsequently resigned from First Express and began to work for her son, Mark, who was a part owner of a competing agency. After resigning, Arlene took a customer list from First Express and transferred many of First Express' customers to Mark's agency. First Express sued Arlene for breach of contract and Arlene, Mark, and Mark's agency for misappropriation of trade secrets and unjust enrichment. After a jury trial, judgment was rendered for First Express on all claims. The Supreme Court (1) modified the judgment against Arlene, finding that Arlene was liable only for the portion of the judgment attributed by the district court to the breach of contract claim; and (2) reversed the judgment against Mark, holding that Mark was not liable for either misappropriation of trade secrets or unjust enrichment. View "First Express Servs. Group, Inc. v. Easter" on Justia Law

Plaintiffs, several taxpayers who managed or owned land in the vicinity of a landfill, challenged the validity of an agreement for hosting of the landfill. The district court dismissed Plaintiffs' complaint for failure to state a claim upon which relief could be granted. The court further found that the complaint was frivolous and filed in bad faith and ordered Plaintiffs to pay the landfill parties' and counties' attorney fees and costs. The Supreme Court (1) reversed the portion of the district court's judgment imposing attorney fees because the court failed to resolve doubt over the merits of the complaint in Plaintiffs' favor; and (2) affirmed the dismissal of the complaint because the reason for dismissal was relevant only to the fee issue. View "White v. Kohout" on Justia Law

In 1996, Plaintiff was injured in an automobile accident with an underinsured driver. At the time of the accident, Plaintiff had an automobile insurance policy with Farmers Insurance Exchange (Farmers). In 2001, Plaintiff settled with the underinsured driver. In 2011, Plaintiff filed this action based on contract, alleging that her damages from the accident exceeded the coverage she received from the tortfeasor's insurer and that Farmers had failed to pay "sums available" for her benefit pursuant to her underinsured motorist coverage. Farmers responded by alleging that Plaintiff's action was barred by the statute of limitations or by laches. The district court entered summary judgment for Farmers, concluding that the limitations period commenced when Plaintiff settled with the tortfeasor in 2001 and that her claim was barred by the five-year contract statute of limitations. The Supreme Court reversed, holding (1) the district court erred when it determined that Plaintiff's action accrued upon her settlement with the tortfeasor; and (2) instead, the Court should have applied the Supreme Court's holder in Snyder v. EMCASCO that the action accrues upon the insurer's breach. Remanded. View "Shada v. Farmers Ins. Exch." on Justia Law

Plaintiffs filed an action against Defendants relating to "forward corn contracts." Counsel for Defendants conveyed confidential information to a grain industry expert in attempting to retain him. Plaintiff's counsel later retained that same expert. Defendant subsequently filed a motion to disqualify the expert from testifying and moved to disqualify Plaintiffs' counsel. The district court disqualified the expert but did disqualify Plaintiffs' counsel, finding that Defendants failed to advance any evidence that Defendants' trial strategy, work product, or mental impressions had been communicated by the expert to Plaintiffs' counsel. Thereafter, Defendants applied for leave to file an original action for a writ of mandamus requiring the district court to disqualify Plaintiffs' counsel. The Supreme Court denied the writ, holding that Plaintiffs rebutted the presumption that the expert shared confidences gained from Defendants' counsel with Plaintiffs' counsel, and therefore, disqualification of Plaintiffs' counsel was not required. View "Mid Am. Agri Products/Horizon, LLC v. Dist. Court" on Justia Law

After Plaintiff's former husband filed for dissolution, the parties reconciled and entered into two postmarital agreements specifying how their property would be divided in the event of a future dissolution. The district court approved the agreements and dismissed the dissolution proceeding. Plaintiff subsequently filed a second dissolution proceeding. On the advice of Defendants, certain attorneys and law firms, Plaintiff accepted a settlement proposal from her former husband based upon the postmarital agreements approved in the first dissolution action. The marriage was then dissolved. Thereafter, Plaintiff brought this action alleging that Defendants were negligent in advising her to accept the settlement proposal. The district court granted summary judgment for Defendants, concluding that the actions of Defendants were not the proximate cause of any damage to Plaintiff, and even if Defendants breached the standard of care, Plaintiff could not have received a more favorable settlement in the second dissolution proceeding because the court was bound to enforce the order in the first dissolution proceeding under the doctrines of res judicata and judicial estoppel. The Supreme Court affirmed, holding that the judgment in the first proceeding had preclusive effect under the doctrine of res judicata. View "Young v. Govier & Milone, LLP" on Justia Law

Plaintiff filed an action against Defendants for breach of contract and quantum meruit. The county court entered judgment against Defendants. On appeal, Defendants asked the district court to take judicial notice of the county court transcript and the bill of exceptions of the county court proceedings. The district court affirmed after a hearing, holding that the record did not support Defendants' appeal, as the bill of exceptions was not complete at the hearing. The Supreme Court reversed, holding that because the incomplete record was the fault of the county court and because the district court was aware of the incomplete record prior to reaching its decision, the district court erred in failing to order the county court to file a complete bill of exceptions. Remanded. View "Centurion Stone of Neb. v. Whelan" on Justia Law

Braunger Foods sold food product supplies to Hungry's North, a business owned by Michael Sears. Braunger Foods filed this action against Sears and Hungry's (collectively Hungry's), seeking to recover amounts Braunger Foods claimed were due for sales it had made on credit to Hungry's. The district court (1) entered judgment against Hungry's for amounts it concluded were owing to Braunger Foods; and (2) entered no judgment against Sears, concluding that a guaranty, by which Braunger Foods sought to hold Sears personally liable for the debt, was ineffective. Braunger Foods appealed the trial court's conclusion that the guaranty was unenforceable against Sears. The court of appeals affirmed. The Supreme Court reversed, holding that the guaranty was enforceable against Sears. Remanded with directions to enter judgment against Sears. View "Braunger Foods, LLC v. Sears" on Justia Law

Republican Valley Biofuels (RVBF) issued a confidential private placement memorandum seeking investors in a biodiesel production facility. DMK Biodiesel (DMK) and Lanoha RVBF (Lanoha) invested $600,000 and $400,000 respectively in RVBF, which was being promoted by four individuals (Promoters). Renewable Fuels Technology (Renewable Fuels) was the manager of RVBF. DMK and Lanoha entered into and executed separate subscription agreements with RVBF. DMK and Lanoha later filed a complaint against Renewable Fuels and Promoters, alleging that Defendants fraudulently induced them to invest funds in RVBF. Defendants filed a motion to dismiss and a motion to take judicial notice, requesting the district court to take judicial notice of the confidential private placement memorandum for RVBF and the subscription agreements executed between RVBF and DMK and Lanoha. The district court granted the motions. The Supreme Court reversed, holding that because the private placement memorandum and the subscription agreements were properly considered matters outside the pleading, an evidentiary hearing was required. Remanded. View "DMK Biodiesel, LLC v. McCoy" on Justia Law

Landlord and Tenant signed a lease agreement for a rental property that required Tenant to obtain a liability and renter's insurance policy at his expense. Tenants obtained a renter's protection policy of insurance. The house was later damaged by fire caused by a child using a lighter. Landlord's insurer (Insurer) paid for the loss. This subrogation action was brought against Tenants in Landlord's name. The district court dismissed the action, concluding (1) the lease provision requiring Tenant to obtain renter's insurance did not permit Landlord or Insurer to bring a subrogation action against Tenants; and (2) Tenants were coinsureds under Landlord's fire insurance policy, and Insurer could not subrogate against its coinsureds. The Supreme Court affirmed, holding that because the terms of the lease did not overcome the presumption that Tenant was coinsured under Landlord's fire insurance policy, Landlord and Insurer could not bring a subrogation action against Tenants. View "Beveridge v. Savage" on Justia Law

After Employees separated from their employment with employer, Employer denied Employees' demand for payment of their unused "paid time off" (PTO) hours. The county court granted summary judgment for Employees, concluding that Employer was required to pay earned but unused PRO hours to Employees. The district court affirmed. At issue was whether Neb. Rev. Stat. 48-1229 of the Wage Payment and Collection Act (Act) entitled Employees to collect their unused PTO hours despite a provision in an employee manual that Employer would not pay them. The Supreme Court affirmed, holding that regardless of the label Employer attached to its PTO hours, they were indistinguishable from earned vacation time under section 48-1229, and like earned vacation time, Employees had an unconditional right to use their earned PTO hours for any purpose. View "Fisher v. PayFlex Sys. USA, Inc." on Justia Law