Justia Contracts Opinion Summaries
Articles Posted in Nebraska Supreme Court
VKGS, LLC v. Planet Bingo, LLC
Video King had its principal place of business in Nebraska. Melange Computer Services (Melange) had a business relationship with Video King since 2000. In 2006, Melange was acquired by Planet Bingo and became a wholly owned subsidiary of Planet Bingo. Video King subsequently filed an action against Melange and Planet Bingo (Defendants) in the district court seeking a declaration of the rights, status, and other legal obligations of the parties with respect to confidentiality agreements between the parties. The district court dismissed the action for lack of personal jurisdiction, noting that both Planet Bingo and Melange were foreign corporations with no agent for service of process in Nebraska. The Supreme Court reversed, holding (1) the district court had specific personal jurisdiction over Defendants, and therefore, it erred in granting Defendants' motion to dismiss; and (2) Nebraska's exercise of specific personal jurisdiction over Defendants in this action would not offend notions of fair play and substantial justice.
View "VKGS, LLC v. Planet Bingo, LLC" on Justia Law
Black v. Brooks
Tenant rented a house pursuant to a lease agreement with Landlord. Tenant later lease another of Landlord's properties pursuant to a lease agreement. For both properties, Landlord charged Tenant additional monthly "appliance fees" in excess of the stated rent amounts. Tenant brought this action against Landlord for noncompliance with the terms of her two lease agreements and for failure to return her security deposit. Landlord counterclaimed for damages. After a bench trial, judgment was entered in favor of Tenant. Tenant was represented by senior certified law students operating under the supervision of an attorney who was the director of the general civil practice clinic at Creighton University School of Law. Landlord argued that attorney fees could not be covered because Tenant's attorneys were working pro bono. The district court disagreed and awarded statutory fees. The Supreme Court affirmed the judgment in favor of Tenant but modified the designee of the attorney fee award, directing the district court to amend its order so as to award the attorney fees directly to the legal services provider. View "Black v. Brooks" on Justia Law
Turbines Ltd. v. Transupport Inc.
Turbines, Ltd. purchased a replacement part for a helicopter engine from Transupport, Inc., intending to use the part to fill an order Turbines had received from a customer in Singapore to be shipped to Malaysia. Turbines later learned that filling the order could subject it to criminal liability, Turbines attempted to return the part of Transupport and obtain a refund of the purchase price. Transupport refused to refund the payment. Turbines then brought this action seeking rescission of the purchase order. The district court entered default judgment in favor after Transupport failed to appear at a pretrial conference and the trial. The court of appeals reversed the default judgment against Transupport and ordered that Turbines' complaint be dismissed, concluding that the evidence adduced at trial did not support rescission as a matter of law. The Supreme Court affirmed, holding (1) the uncontroverted facts provided no legal basis for rescission; and (2) thus, although Transupport failed to appear for trial, the district court abused its discretion in entering default judgment in favor of Turbines. View "Turbines Ltd. v. Transupport Inc." on Justia Law
Posted in:
Contracts, Nebraska Supreme Court
Brook Valley Ltd. P’ship v. Mut. of Omaha Bank
Prime Realty, Inc. (Prime) acted as general partner for two limited partnerships (collectively, the Partnerships). Without the Partnerships' limited partners' knowledge, Prime took out two loans from a bank (the Bank) and, by deed of trust, secured the loans with Partnerships' property. The Bank ultimately sold the collateral and applied the proceeds to the loans. The Partnerships sued the Bank for conversion, alleging that the loans were for a nonpartnership purposes and, as such, Prime lacked authority to offer the Partnerships' property as collateral without the limited partners' consent under the Partnership agreements. The district court concluded that the Bank had converted the Partnerships' property and awarded the Partnerships damages and prejudgment interest. The Supreme Court affirmed, holding (1) the Partnerships' complaint was timely; (2) the Bank converted the Partnerships' property; (3) the district court improperly awarded damages in the full amount of the proceeds applied to the loans because a portion of the first loan served a Partnership purpose; and (4) prejudgment interest was proper only in the amount the Bank applied to the second loan. View "Brook Valley Ltd. P'ship v. Mut. of Omaha Bank" on Justia Law
Zawaideh v. Dep’t of Health & Human Servs.
This was the second appeal in this case. Doctor, who was licensed to practice medicine in Nebraska and Washington, entered into an assurance of compliance with the Attorney General due to unprofessional conduct. The assurance of compliance was made part of Doctor's public record. Consequently, Doctor alleged that the Washington Department of Health learned via public record of the assurance of compliance and initiated a disciplinary action against him. Doctor was also made ineligible with the American Board of Family Medicine. Doctor filed a complaint against the Nebraska Department of Health and Human Services and the Attorney General alleging that the Attorney General fraudulently and negligently misrepresented the adverse effects of the assurance of compliance. The district court granted summary judgment in favor of Defendants, finding the misrepresentation claims to be contract claims subject to, and barred by, the State Contract Claims Act (Act). Doctor again appealed. The Supreme Court affirmed, holding that the district court did not err in finding that Doctor's claims were subject to, and barred by, the Act. View "Zawaideh v. Dep't of Health & Human Servs." on Justia Law
Pro. Mgmt. Midwest, Inc. v. Lund Co.
Plaintiff corporation and two of its officers brought suit against Defendant, a brokerage firm, to recover damages that allegedly resulted when the president of the corporation independently engaged the brokerage firm's services to locate and lease new office space while the corporation was still liable under a previous lease, which it later breached. Plaintiff sued under theories of inducement, tortious interference, and negligence. The district court concluded that the brokerage company was not liable to Plaintiff for assisting the president to enter into a new lease while knowing that the corporation remained liable under a previous lease. The Supreme Court affirmed, either not reaching Appellants' assignments of error or finding them to be without merit.
View "Pro. Mgmt. Midwest, Inc. v. Lund Co." on Justia Law
Intercall Inc. v. Engenera, Inc.
This dispute arose from a contractual relationship between Appellant, a provider of audio, Web, and video conferencing services, and Appellee, a corporation engaged in the sale of business software. After Appellee failed to pay for certain services Appellant provided pursuant to a contract, Appellant sued Appellee, asserting breach of contract. Appellee asserted affirmative defenses and a counterclaim to recover what it claimed to be overpayments. The district court granted Appellant's motion with respect to its claim for unpaid invoices but ruled in favor of Appellee on its counterclaim that it was fraudulently induced by Appellant to enter into the original service agreement. The Supreme Court affirmed, holding that the district court did not err in (1) not finding as a matter of law that Appellee failed to prove that Appellant misrepresented a fact that Appellee relied upon; (2) allowing Appellee to amend its counterclaim to allege material misrepresentation; (3) instructing the jury; and (4) overruling Appellant's motion for new trial or motion to alter or amend the judgment. View "Intercall Inc. v. Engenera, Inc." on Justia Law
Posted in:
Contracts, Nebraska Supreme Court
Bridgeport Ethanol v. Neb. Dep’t of Revenue
After Claimant's attempt to obtain a refund of sales tax on building materials used in the construction of an ethanol production plant was administratively denied in part, Claimant sought judicial review. This appeal turned on a statutory limitation of the exemption for manufacturing machinery and equipment and the limited statutory authority for appointment of a purchasing agent. The Supreme Court affirmed, holding (1) the statute limited the exemption to purchases by the manufacturer; and (2) a contractual provision purporting to entitle the manufacturer to all tax credits for taxes paid by a construction contractor was not effective as a purchasing agent appointment. View "Bridgeport Ethanol v. Neb. Dep't of Revenue" on Justia Law
Farmington Woods Homeowners Ass’n v. Wolf
The issue in this appeal was whether a homeowners' association may enforce a covenant prohibiting "business activities of any kind whatsoever" against homeowners who have operated a daycare in their home for a period of twelve years. The Supreme Court (1) affirmed the district court's order to the extent it found that the daycare business violated the "no business activities" covenant and to the extent it granted summary judgment on the defenses of estoppel, laches, and unclean hands; but (2) reversed the district court's grant of summary judgment in favor of the homeowners' association with respect to the affirmative defense of waiver raised by the homeowners because there were genuine issues of material fact surrounding this issue. View "Farmington Woods Homeowners Ass'n v. Wolf" on Justia Law
McCully, Inc. v. Baccaro Ranch Co.
A broker doing business as McCully Ranch Company brought suit against its client Baccaro Ranch, LLC, as seller, claiming that Baccaro breached the real estate listing agreement and that McCully was entitled to a commission from Baccaro under contract theory or, in the alternative, under the theory of unjust enrichment. In a previous appeal, the Supreme Court concluded that the listing agreement was enforceable and remanded the cause for further proceedings. After trial, the district court determined that McCully was not entitled to a real estate commission. The Supreme Court reversed, holding that McCully erred in its judgment, as MuCully produced a ready, willing, and able purchaser during the term of the listing agreement on terms acceptable to Baccaro and therefore was entitled to a commission.