Justia Contracts Opinion Summaries

Beneva and Iberiabank became parties to the sublease at issue through a series of assignments. At issue was whether the sublease transferred by the FDIC to Iberiabank after it took over the assets of a failed bank was enforceable despite a clause purporting to terminate the sublease on sale or transfer of the failed bank. Because the court found that the FDIC acted within its power to enforce contracts under 12 U.S.C. 1821(e)(13)(A) and that the termination clause was unenforceable against Iberiabank as the FDIC's transferee, the court affirmed the district court's grant of summary judgment to Iberiabank. View "Iberiabank v. Beneva 41-I, LLC, et al" on Justia Law

This consolidated appeal stemmed from a lawsuit in which Mark Wolgin sued various entities alleging wrongdoing surrounding his 2006 purchase of a condominium on the Gulf Coast. In case #2010-CA-00653-SCT, Wolgin appealed the Chancery Court's decision to dismiss two credit reporting agencies (Trans Union LLC and Experian Information Solutions, Inc. ("Experian")), finding that claims against them were preempted by the Fair Credit Reporting Act ("FCRA"). In case #2010-CA-01177-SCT, the broker for the sale, The Power Broker, Inc. ("Power Broker"), appealed the Chancery Court's decision to order discovery on the scope of the mandatory arbitration clause in the "Contract for the Sale and Purchase of Real Estate" instead of fully granting its "Motion to Compel Arbitration." Regarding Wolgin's appeal, the Supreme Court affirmed the trial court's order dismissing the credit reporting agencies, as Wolgin's claims are preempted by the FCRA. As to Power Broker's appeal, the Court reversed the trial court judgment ordering discovery and remanded the case with instructions to stay the proceedings and refer the matter to arbitration. View "Wolgin v. Experian Information Solutions, Inc." on Justia Law

Paul Ehlen appealed a judgment that dismissed his action against John and LynnDee Melvin to enforce a purchase agreement, a judgment for costs, and an amended judgment. The matter stemmed from a property transaction between the parties from early 2011. Upon review of the matter, the Supreme Court affirmed, concluding the district court's finding the parties did not mutually consent to the purchase agreement was not clearly erroneous. View "Ehlen v. Melvin" on Justia Law

Quicken Loans, Inc., a Michigan corporation and a large national mortgage lender doing business in West Virginia, appealed an order of the circuit court denying post-trial motions for amendment of the circuit court's findings of fact and/or conclusions of law and for offset following a verdict which found it liable for common law fraud and various claims under the West Virginia Consumer Credit and Protection Act in connection with a subprime loan made to Plaintiff. The Supreme Court affirmed in part and reversed in part the order of the circuit court, holding (1) the elements of fraud were not met with regard to Quicken's misrepresentation of loan discount points, but the other acts of fraud were proven by clear and convincing evidence; (2) the circuit court correctly found that, given the particular facts of this case, the terms of the loan and the loan product were unconscionable; (3) the circuit court incorrectly cancelled Plaintiff's obligation to repay the loan principal; and (4) because the circuit court's order in punitive damages lacked the necessary analysis and findings, the Court was unable to conduct an adequate review of the punitive damages award. Remanded. View "Quicken Loans, Inc. v. Brown" on Justia Law

At issue in this appeal was whether the parties' contract language specifying that Seller's "sole remedy" was liquidated damages and Seller had "no further rights" against the defaulting purchaser (Buyer), trumped language in N.Y. C.P.L.R. 5001(a) directing that statutory interest be awarded in a contract dispute. Buyer commenced this action to recover its down payment. Supreme Court rendered a judgment awarding Buyer the down payment plus statutory interest. The Appellate Division modified to vacate the award of statutory interest. The Court of Appeals affirmed, holding (1) the contract language controlled in this instance; and (2) therefore, Buyer was not entitled to statutory pre-judgment interest. View "J. D'Addario & Co. v. Embassy Indus., Inc." on Justia Law

The issue before the Supreme Court in this case was a jury verdict in favor of the sellers of real property in an action by the buyers to recover damages or be granted rescission of the sale contract on the ground that the sellers made misrepresentations and breached the contract and the Idaho Property Condition Disclosure Act. The buyers also sought to raise the issue of mutual mistake. About a year after purchasing the property, Buyers hired a contractor to see if the garage could be enlarged. The Contractor discovered that the building permit obtained to construct the garage had not been finalized, so that it had lapsed. The permit had been issued in 2000 to construct a garage with storage space above it. In connection with the sale, Sellers completed and delivered to Buyers a property disclosure form as required by the Idaho Property Condition Disclosure Act. When completing that form, Sellers answered "No" to the question: "Have any substantial additions or alterations been made without a building permit?" In 2007, Buyers filed this lawsuit against Sellers seeking damages for breach of the Disclosure Act, misrepresentation, and breach of contract. They also sought, in the alternative, to have the real estate contract rescinded. The matter was tried to a jury in 2010, on the three theories seeking damages. The jury returned a special verdict finding that Buyers had failed to prove a violation of the Disclosure Act, had failed to prove misrepresentation, and had failed to prove a breach of contract. On the second day of trial, Sellers moved to prevent Buyers from raising the issue of mutual mistake of fact, which Buyers had apparently discussed in their pretrial brief. The matter was argued, and the district court ruled that Buyers could not present evidence regarding mutual mistake because it had not been pled. On February 25, 2010, and again on March 8, 2010, Buyers moved to amend their complaint to conform to the evidence by adding a request for rescission based upon mutual mistake. On March 8, 2010, Buyers moved to have the real estate contract rescinded, and on August 30, 2010, they moved for a new trial. The district court denied those motions, and Buyers timely appealed. Upon review, the Supreme Court affirmed the judgment of the district court and the court's denial of the motion for a new trial. View "Bolognese v. Forte" on Justia Law

Two real estate developers, a husband and wife, operated through various entities including a corporation and an LLC. In 2002, the corporation borrowed money from a lender; the developers, in their individual capacities, guaranteed this loan and all future advances. The corporation promptly repaid this loan. In 2005, the LLC twice borrowed money from the same lender. The lender originally insisted on a personal guaranty for these loans, but, in order to secure the developer's business, stated that no personal guaranty would be required. In 2006–07, the corporation again borrowed money from the lender in six separate loans. The corporation defaulted on these six loans, and, after the lender foreclosed on the real estate that served as collateral for the loans, the lender sued the developers for the deficiency. The district court granted the lender's motion for summary judgment, holding that the developers' affirmative defenses (1) were barred by the statute of frauds, (2) failed for lack of consideration, and (3) raised no genuine issues of material fact. The developers timely appealed to the Supreme Court. Upon review, the Court held that the developers' affirmative defenses were neither barred by the statute of frauds nor failed for lack of consideration. However, because none of those defenses raised a genuine issue of material fact, the Court affirmed. View "Washington Federal Savings v. Engelen" on Justia Law

This appeal concerned the sale of a residence. The buyers, the plaintiffs below, sought compensatory and punitive damages from the sellers regarding water leakage in a basement storage room of the residence the buyers purchased. The leak was disclosed to the buyers after the signing of a purchase agreement and before the closing of the sale. In the complaint, the buyers also asked the circuit court to direct the sellers to proceed with the closing and deliver a deed to the buyers containing covenants of general warranty as specified in the purchase agreement. In granting partial summary judgment to the sellers, the circuit court concluded that the buyers' claims were without merit because they were on notice of the water leak prior to the closing of the sale. The Supreme Court reversed and remanded, holding (1) the sellers were not entitled to a judgment as a matter of law based on the purchase agreement; (2) the refusal of the circuit court to allow discovery constituted reversible error; and (3) the circuit court erred in failing to direct the sellers to deliver a deed to the buyers setting forth the language required by the purchase agreement. View "Hinerman v. Rodriguez" on Justia Law

Petitioner filed suit in superior court claiming that she and her son entered into an oral that granted her a life estate in certain property. Petitioner sought to enforce the oral agreement or, in the alternative, recover of a theory of quantum meruit. The superior court granted summary judgment for Defendants. The appeals court remanded for proceedings as to whether Petitioner should recover under a theory of quantum meruit. While the case was pending on remand, Petitioner filed a petition in the county court against the judge assigned to the matter, in both his individual and official capacities, and against the Commonwealth. Petitioner raised a number of claims concerning the judge's rulings and conduct, including an assertion that he had acted in an unlawful and biased manner. The single justice denied the petition without a hearing. The Supreme Court affirmed, holding (1) Petitioner's claims of judicial bias and declaratory judgment claims should have been addressed through the ordinary trial and appellate process; (2) the judge was absolutely immune from Petitioner's request for monetary damages; and (3) Petitioner's allegations of conspiracy were insufficient to overcome the judge's absolute immunity. View "Johnson v. Commonwealth" on Justia Law

Plaintiffs acquired a homeowners' insurance policy from Defendant effective as of the closing date of the home they had entered into a contract to purchase. The closing date was scheduled to take place on March 31 but was delayed until May 20. On May 15, a fire completely destroyed the house. Defendant disclaimed coverage on the pertinent grounds that the dwelling was unoccupied at the time of the loss, and therefore, it did not qualify as a "residence premises" under the policy. Supreme court granted Defendant's motion for summary judgment and dismissed the complaint. The appellate division modified the order, concluding that the "residence premises" requirement in the policy failed to define what qualifies as "resides" for the purpose of attaching coverage and that the policy was ambiguous in the circumstances of this case, and otherwise denied summary judgment. The Court of Appeals affirmed, holding (1) there were issues of fact as to whether Plaintiffs' daily presence in the house, coupled with their intent to eventually move in, was sufficient to satisfy the policy's requirements; and (2) the term "residence premises" in the contract was ambiguous. View "Dean v. Tower Ins. Co. of N.Y." on Justia Law