Justia Contracts Opinion Summaries

In May 2009 Jesse Collens, then 21 years old, was permanently injured in a bicycle accident that left him a C-1 quadriplegic, paralyzed from the neck down, and dependent on a ventilator to breathe. In December 2009 he contracted with Maxim Healthcare Services, a national healthcare corporation with a home healthcare division, to provide his nursing care. In late 2011 issues arose between Collens and Maxim over the company’s management of his care. These issues escalated, and in early March 2012, Alaina Adkins, Maxim’s Alaska office manager, met with Collens to discuss his main concerns with Maxim’s services. The following business day, Adkins emailed various members of Maxim’s legal and administrative staff about one of the issues Collens had raised. Internal concerns surfaced about the legal compliance of the staff working with Collens. In an email responding to the report, Maxim’s area vice president wrote, “We are in dangerous territory right now with the liability of this case and we are going to have to seriously consider discharge.” Collens’s care plan was subject to routine recertification every 60 days; Maxim’s Alaska Director of Clinical Services visited Collens’s house to complete the review necessary for this recertification, noting “discharge is not warranted.” Concurrent to the recertification, Adkins requested Maxim’s legal department provide her a draft discharge letter for Collens. The draft letter stated the discharge had been discussed with Collens’s physician and care coordinator and that they agreed with the discharge decision. But in fact neither approved the discharge. The draft letter also included a space for names of other entities that could provide the care needed by the patient. Adkins noted in an email to the legal department, “We already know that there are no providers in our area that provide this type of service.” The discharge letter she eventually delivered to Collens filled in the blank with four agency names. Adkins delivered and read aloud the discharge letter at Collens’s home on March 30. Collens sued Maxim and Adkins for breach of contract, fraudulent misrepresentation, unfair and deceptive acts and practices under Alaska’s Unfair Trade Practices and Consumer Protection Act (UTPA), and intentional infliction of emotional distress (IIED). The superior court ruled for Collens on all his claims and entered a $20,379,727.96 judgment against Adkins and Maxim, which included attorney’s fees. Maxim and Adkins appealed, arguing that: (1) they were not liable under the UTPA; (2) the superior court erred in precluding their expert witnesses from testifying at trial; (3) the court’s damages award was excessive; and (4) the court’s attorney’s fee award was unreasonable. The Alaska Supreme Court agreed the superior court’s attorney’s fee award was unreasonable, but on all other issues it affirmed the superior court’s decision. View "Maxim Healthcare Services, Inc. v. Collens" on Justia Law

The Supreme Court affirmed the order of the circuit court dismissing this suit against Marty Indian School (MIS), a legal entity of the Yankton Sioux Tribe, for a lack of subject matter jurisdiction based on federal preemption, holding that the circuit court lacked subject matter jurisdiction to hear Plaintiff's claims against MIS.Plaintiff, the former high school principal at MIS, sued MIS and other involved parties after he was terminated. Plaintiff alleged claims for breach of contract, breach of settlement agreement, wrongful termination, libel, and slander, and requested punitive damages. The circuit court dismissed the complaint on the grounds of tribal sovereign immunity, immunity of tribal officials and employees, infringement of tribal sovereignty, and federal preemption. The Supreme Court affirmed the dismissal solely on a lack of subject matter jurisdiction based on federal preemption, holding that state court action in this dispute was preempted by federal law. View "Stathis v. Marty Indian School" on Justia Law

The Supreme Court accepted the United States District Court, Western District of Kentucky's request for certification of law on the following issue, holding that a pre-injury liability waiver signed by a parent on behalf of a minor child is unenforceable under the specific facts of this case.Mother purchased tickets at a for-profit trampoline park (Park) for her eleven-year-old daughter. Mother checked a box indicating that she had read the Park's waiver of liability. The daughter proceeded to participate in the Park's activities but was injured. Mother, as next friend of Daughter, sued the Park for the injury. The Park moved for summary judgment based on Mother's legal power to waive the rights of her daughter via the release. The district court then requested certification from the Supreme Court as to this novel issue of state law. The Supreme Court held (1) under the common law of this Commonwealth, absent special circumstances, a parent has no authority to enter into contracts on a child’s behalf; and (2) there is no relevant public policy to justify abrogating the common law to enforce an exculpatory agreement between a for-profit entity and a parent on behalf of her minor child. View "Miller v. House of Boom Kentucky, LLC" on Justia Law

The Supreme Court reversed in part the judgment of the trial court against Defendants in this public nuisance suit, holding that Defendants' contractual undertaking with the Connecticut Department of Transportation (DOT) did not create a duty to Plaintiffs.Project Service, LLC, the named defendant, and the DOT, which owned a service plaza, had entered into a concession agreement which imposed the responsibility on Project Service to operate and maintain the service plaza. Project Service contracted the day-to-day operation of the service plaza to one defendant, which subcontracted certain operations to another defendant. Plaintiffs alleged that Defendants created a public nuisance by permitting the tortfeasor to consume alcohol and loiter on the service plaza premises before driving his Jeep onto a roadway where he killed and injured the victims. Plaintiffs also alleged that Defendants breached a duty to passing motorists to protect them from the increased risk of harm created by Defendants' failure to perform their contractual obligations. The trial court rendered summary judgment on the nuisance claims, and the jury returned a verdict in Plaintiffs' favor on Plaintiffs' negligence claims. The Supreme Court reversed in part, holding (1) Defendants' agreement did not create a duty to Plaintiffs; and (2) Plaintiffs' public nuisance claims failed as a matter of law. View "Demond v. Project Service, LLC" on Justia Law

The Supreme Court vacated the judgments of the superior court granting summary judgment in favor of the defendant and the third-party defendant (collectively, Defendants) on Plaintiff's complaint alleging negligence for her injuries and the third-party complaint seeking to defend, indemnify, and hold the third-party defendant harmless for claims arising out of the third-party defendant's duty under Defendants' snow services agreement, holding that genuine issues of material fact existed precluding summary judgment.Specifically at issue before the trial justice was whether there were genuine issues of material fact as to the dangerous condition that caused Plaintiff's fall that would preclude summary judgment. The trial justice weighed the evidence before her at least twice during the summary judgment hearing. The Supreme Court vacated the superior court's judgments, holding that the trial justice improperly weighed the evidence before her at the summary judgment hearing. View "Voccola v. Stop & Shop Supermarket Co." on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court granting summary judgment in favor of Defendants on Plaintiff's claims alleging age discrimination, retaliation, breach of contract, and various other torts, holding that there was no error or abuse of discretion in the superior court's handling of Plaintiff's requested accommodations.On appeal, Plaintiff argued that the trial court abused its discretion by not, sua sponte, granting him accommodations, appointing him a guardian ad litem, or ordering that his mental health be evaluated. The Supreme Judicial Court disagreed, holding (1) the court did not err by granting summary judgment in favor of Defendants on all of Plaintiff's claims; and (2) the court properly handled Plaintiff's request for accommodations. View "Gallagher v. Penobscot Community Healthcare" on Justia Law

A group of customers filed suit against SuperValu after hackers accessed customer financial information from hundreds of grocery stores operated by defendant. The Eighth Circuit previously affirmed the dismissal of all but one of the suit's named plaintiffs for lack of standing and, on remand, the district court dismissed the remaining plaintiff for failure to state a claim and denied plaintiffs' motion for leave to amend.The court affirmed, holding that the district court did not abuse its discretion by denying the motion for leave to amend because plaintiffs' postjudgment motion was untimely. The court also held that the remaining plaintiff's allegations fell short of stating a claim for relief under Illinois law for negligence, consumer protection, implied, contract, and unjust enrichment. View "Alleruzzo v. SuperValu, Inc." on Justia Law

The Supreme Court affirmed in part and vacated in part the decision of the court of appeals affirming the judgment of the district court modifying a judgment for civil conspiracy following a jury trial, holding that the district court did not abuse its discretion in granting the motion to amend the judgment.Jeffrey Anderson commenced an action against Dean and Carol Anderson and Anderson Tooling, Inc. (ATI) alleging, among other claims, tortious discharge. Dean, Carol, and ATI filed several counterclaims. ATI sued Lori and brought a claim against Lori and Fabrication & Construction Services Inc. (FabCon) for, among other claims, conspiracy. Damages against Jeff totaled $772,297.72. The district court subsequently granted ATI's motion to modify the judgment to make Lori and FabCon jointly and severally liable for the $772,297.72 judgment. As relevant to this appeal, the court of appeals reversed the district court's order imposing joint and several liability on Lori and FabCon, determining that a conspiracy did not exist for Lori and FabCon to join. The Supreme Court vacated the court of appeals's judgment in part, holding that the district court did not abuse its discretion in granting the motion to amend the judgment. View "Anderson v. Anderson Tooling, Inc." on Justia Law

On October 30, 2013, Consuelo Prieto Mariscal was driving her minivan in Pasco, Washington, with her daughter. There were vehicles, including an orange, pickup truck and a van, on the right side of the road. As Prieto passed the orange pickup truck, she heard a noise, felt her van jump a little, and saw a boy, Brayan, lying on the ground. Realizing Brayan was seriously hurt, her daughter called 911. Brayan was taken to a nearby hospital. Prieto and her daughter both told the police they did not see how the accident happened. There were no other eyewitnesses, and though the officer only spoke to Prieto and her daughter, he noted in his report the "bicyclist pulled into the roadway [and] was stuck on the left side and fell to the ground. The passenger side front tire drove over the child['s] right front leg." Brayan gave a number of statements, the most detailed of which related his right shoelace got stuck in the spokes of his bicycle and his right leg was run over when he leaned over to untangle the lace. Monica Diaz Barriga Figueroa, Brayan's mother, retained counsel, and signed a blank personal injury protection (PIP) application form. The English-speaking legal assistant completed the form for the Spanish-speaking Diaz, pulling language of the accident from the police report. The significant difference between the PIP form and Brayan's testimony became a central issue at trial. Prieto's counsel stressed the differences between Diaz's and Brayan's testimony and the PIP form; Diaz's counsel stress the PIP form was based on accounts from people who did not see the accident. At trial, and over Diaz's counsel's objection, Prieto's counsel referenced the PIP form as a statement against interest. Diaz's counsel moved to exclude the PIP form as privileged. The issue before the Washington Supreme Court was whether the form could be considered work product entitled to protection from disclosure. The Court determined that in this instance, where the insured gained the status of insured by statute, rather than contract, the form at issue was privileged. The Court affirmed the Court of Appeals and remanded this matter back to the trial court for a new trial. View "Figueroa v. Mariscal" on Justia Law

The Supreme Court affirmed the order of the district court entering partial summary judgment against Rex Rammell on all his claims against his former employer, Mountainaire Animal Clinic, P.C., its president, and its office manager except Rammell's breach of express contract claim and then dismissing that claim as a sanction for willful obstruction of discovery and fraud upon the court, holding that the district court did not err.Specifically, the Court held (1) deficiencies in Rammell's certification did not mandate dismissal of his appeal; (2) defects in Rammell's notice of appeal did not mandate dismissal; (3) the district court did not err in entering summary judgment against Rammell on his tortious interference claim; and (4) the district court did not abuse its discretion in dismissing Rammell's breach of express contract claim as a sanction for discovery violations. View "Rammell v. Mountainaire Animal Clinic, P.C." on Justia Law