Justia Contracts Opinion Summaries

Plaintiffs-appellees Jackie and Marcia Ellison, along with Richard M. Healy, P.C., Jayne Jarnigan Robertson, P.C., and Michael J. Blascheke, P.C., sued defendants-appellants, Michael D. Campbell and M.D. Campbell & Associates, L.P., for breach of contract. Plaintiffs alleged that Campbell failed to render a defensible expert opinion in underlying litigation in Canadian County, and subsequently abandoned the task for which he was hired. Campbell counterclaimed for "uncompensated professional services." A jury returned a verdict in plaintiffs' favor. Based on the jury's verdict, the trial court entered judgment for the plaintiffs for $408,748.68, plus statutory interest. Campbell filed a motion for new trial or, in the alternative, a motion for judgment notwithstanding the verdict. After hearing argument, the trial court overruled the motions and Campbell appealed. The Court of Civil Appeals reversed, finding that the breach of contract cause of action failed because plaintiffs did not prove their case by presenting an expert witness. Upon review, the Supreme Court found that in this case the expert witness indicted his own performance in the underlying matter: "Supporting testimony made it clear that Campbell did not produce a document which accurately represented the state of the groundwater underlying the Ellisons' property or the source of its pollution. Any lay person could consider the testimony presented and conclude that the Ellisons did not receive the services for which they contracted. The expert witness's testimony was such that any reasonable juror might question his candidness." Under these unique facts, it was unnecessary for plaintiffs to rely upon expert testimony to prevail in their breach of contract claim. View "Ellison v. Campbell" on Justia Law

Plaintiffs brought legal malpractice claims against Jeffrey Daniels, American Guarantee & Liability Insurance Company’s insured. American Guarantee wrongly refused to defend the claims. A default judgment was entered against Daniels, who assigned his rights against American Guarantee to Plaintiffs. Plaintiffs then brought the present action seeking to enforce American Guarantee’s duty to indemnify Daniels for the judgment. Summary judgment was awarded in favor of Plaintiffs. The Appellate Division affirmed. The Court of Appeals affirmed, concluding that American Guarantee’s breach of its duty to defend barred it from relying on policy exclusions as a defense to the present lawsuit. The Court later granted reargument, vacated its prior decision, and reversed the Appellate Division’s order, holding (1) under controlling precedent, American Guarantee was not barred from relying on policy exclusions as a defense; and (2) the applicability of the exclusions American Guarantee relied on presented an issue of fact sufficient to defeat summary judgment. View "K2 Inv. Group, LLC v. Am. Guar. & Liab. Ins. Co." on Justia Law

Appellants decided to sell 850 acres of farmland but wanted to retain the mineral rights. Summit Title Services prepared the deeds for the sale, but he deeds did not reserve the minerals. Appellants were made aware of the omission at closing, insisted that the deeds be corrected, and were assured by Summit’s employee that the problem had been rectified. Six years later, Appellants learned that the minerals had been transferred with the land. Appellants filed suit against Summit, its general counsel Olen Snider, and Kuzma Success Realty, a brokerage firm involved in the transaction. The district court granted summary judgment for Appellees on all claims, concluding that Appellants failed to exercise due diligence to discover the error so as to extend the statute of limitation as a matter of law. The Supreme Court reversed the grant of summary judgment to Summit and Snider, concluding that there were genuine issues of material fact as to whether Appellants exercised due diligence to discover errors allegedly made by Summit and that Snider failed to present a prima facie case that he was entitled to summary judgment. View "Moats v. Prof'l Assistance, LLC " on Justia Law

Plaintiffs brought a breach of contract action against H&S Builders, Inc. and retained Defendants to defend them in the lawsuit. Plaintiffs fired Defendants during the proceedings and hired a new attorney to assist them. The case was eventually settled. Plaintiffs then commenced this legal malpractice case against Defendants, claiming that Defendant failed properly to represent their interests in the action brought against H&S. The circuit court entered a default judgment as to liability in favor of Plaintiffs but concluded that Plaintiffs failed to prove they suffered any damages that were proximately caused by Defendants’ negligent representation. The Supreme Court affirmed, holding that the circuit court did not clearly err in finding that Plaintiffs failed to prove damages sustained as a proximately result of Defendants’ conduct. View "Peterson v. Issenhuth" on Justia Law

Defendant, Suzynne D. Cumminngs and S.D. Cummings & Co., PC, appealed a Superior Court order awarding $44,403 to plaintiffs, Robert Audette and his company, H&S Construction Services, LLC (H&S), for breach of contract. Defendants provided various accounting and business services to Audette and his then-partner, Paul Fogarty, including helping them to start their construction business partnership, as well as preparing tax returns for both the business and Audette and Fogarty personally. In 2007, defendants helped Audette and Fogarty dissolve their partnership. One of the final acts defendants worked on for H&S was the placement of a mechanic's lien on a property on which H&S worked: the municipality halted construction on the project when H&S was approximately ninety-five percent complete. The lien placed on the property was for $44,403. Ultimately, plaintiffs’ 120-day statutory lien had not been timely secured or recorded, therefore it had lapsed. Plaintiffs brought suit against defendants in November 2009 for failing to secure the lien. The trial court found for plaintiffs and awarded damages in the amount of $44,403. Finding no error in the Superior Court's judgment, the Supreme Court affirmed. View "Audette & v. Cummings" on Justia Law

When Plaintiff retained a Maine law firm to represent him in a legal action, he signed an attorney-client engagement letter that contained an arbitration provision. Plaintiff later sued the law firm and individual defendants (collectively, Defendants) for malpractice and violations of Maine's Unfair Trade Practices Act. Defendants moved to compel arbitration and dismiss the action. The district court granted the motion under the Federal Arbitration Act (FAA). Plaintiff appealed, arguing that the district court erred in enforcing the arbitration clause. The First Circuit Court of Appeals affirmed, holding that the district court did not err in granting the motion to compel arbitration and dismissed the action, as (1) Maine professional responsibility law for attorneys permits arbitration of legal malpractice claims so long as there is no prospective limitation on the law firm's liability; and (2) Maine law, like the FAA, is not hostile to the use of the arbitration forum, and Maine would enforce the arbitration of malpractice claims provision in this case. View "Bezio v. Draeger" on Justia Law

Real parties in interest in this case were the owners and developers (collectively, P&R) and the general contractor (PCS) of a construction site in Las Vegas. Petitioner, an architecture firm, designed a housing project at the site. After a fatal automobile accident occurred at the site, Plaintiffs and/or their estates filed complaints against P&R, PCS, and Petitioner. Petitioner and Plaintiffs settled, and the district court determined the settlement was made in good faith. P&R subsequently filed a third-party complaint against Petitioner for breach of contract, professional negligence, and express indemnity, among other claims. Petitioner moved to dismiss the complaint on the ground that they were barred as "de facto" contribution and/or equitable indemnity claims. The district court granted the motion in part and dismissed P&R's claim for professional negligence. Petitioner then filed this petition for a writ of mandamus. The Supreme Court granted the petition and directed the district court to dismiss P&R's remaining third-party claims against Petitioner, holding (1) Nev. Rev. Stat. 17.245(1)(b) bars all claims that seek contribution and/or equitable indemnity when the settlement is determined to be in good faith; and (2) P&R's remaining third-party claims here were "de facto" contribution claims and were thus barred by section 17.245(1)(b). View "Otak Nev., LLC v. Eighth Judicial Dist. Court" on Justia Law

Defendants, an attorney and a law firm, structured a tax-deferred exchange for Plaintiffs, a husband and wife and the cattle ranch they owned. It was later determined that the exchange did not qualify for deferred tax treatment under 26 U.S.C. 1031, resulting in significant tax liability for Plaintiffs. Defendants filed an action against Defendants for professional negligence, breach of fiduciary duty, breach of contract, breach of the implied covenant of good faith and fair dealing, and misrepresentation. The district court granted summary judgment to Defendants on all claims on grounds that Plaintiffs' claims were time barred. The Supreme Court reversed, holding (1) Plaintiffs' tort claims were timely filed, and the issue of whether Plaintiffs' timely filed their misrepresentation claim was a question of material fact to be resolved by a jury; (2) Plaintiffs properly stated a claim for breach of contract and the claim was not time barred; and (3) the district court erred in granting Defendants a protection order to prevent discovery of alleged work product and attorney-client communications, as further analysis and fact finding were necessary to determine which documents were discoverable and which qualified for work product or attorney-client protection. Remanded. View "Draggin' Y Cattle Co., Inc. v. Addink" on Justia Law

Plaintiffs brought a lawsuit against the company that marketed the anti-obesity drug combination known as Fen-Phen. Plaintiffs claims were transferred from Kentucky to a similar action pending in Alabama, where Plaintiffs were represented by Attorneys. After Plaintiffs' claims were settled, Plaintiffs brought this action against Attorneys, claiming that Attorneys wrongfully withheld from each Plaintiff a substantial portion of the settlement award. The circuit court dismissed the action, concluding that Plaintiffs' complaint was untimely filed under the applicable statute of limitations. The court of appeals affirmed. The Supreme Court affirmed, holding (1) Plaintiffs were not prejudiced by the court of appeals' affirmation of a summary judgment dismissing the claims of all fifty Plaintiffs where the motion before the trial court related to only one particular plaintiff; (2) the court of appeals erred in applying the Alabama statute of limitations rather than Kentucky's, but Appellants' suit was untimely under the applicable Kentucky statutes; (3) Plaintiffs' claims of misrepresentation were subject to the one-year limitation period for professional service malpractice rather than the general five-year limitation period; and (4) the application of the statutes of limitations was not an issue to be resolved by a jury. View "Abel v. Austin" on Justia Law

Plaintiff filed a legal malpractice action against two attorneys and a law firm (Respondents) alleging that their negligence resulted in failed collateral in securing a promissory note, particularly a defective deed on certain property. Plaintiff then sued a holding company and two individuals to recover the remaining balance due under the note. In the collection action, the circuit court entered a stipulated settlement that extinguished the parties' obligations under the note. In the malpractice action, the circuit court awarded summary judgment to Respondents, concluding that Plaintiff had failed to prove he sustained damages as a result of Respondents' alleged professional negligence because the stipulated settlement extinguished the defective deed upon which Plaintiff based his claim for damages. After the circuit court entered a subsequent nunc pro tunc order in the collection action omitting the language extinguishing the parties' obligations under the note, Plaintiff sought relief from the summary judgment ruling in the legal malpractice action. The circuit court denied relief. The Supreme Court affirmed, holding (1) Plaintiff failed to prove Respondents' alleged professional negligence caused him to sustain any purported damages; and (2) based on the law of judicial estoppel, the circuit court correctly ruled that Plaintiff was not entitled to relief from its earlier summary judgment ruling. View "Burnworth v. George" on Justia Law