Justia Contracts Opinion Summaries

The plaintiffs (collectively "Tellus") alleged that they owned the "shallow gas" rights in a tract of land known as the Bilbo A Lease. While ownership of the shallow gas was disputed, all parties agreed that the defendants (collectively "TPIC") owned the gas rights below 8,000 feet and the oil rights in both the shallow and deep zones. In 2004, Tellus sued TPIC, alleging that it had produced Tellus's shallow gas through one if its wells known as the A-1 well. After much pretrial litigation and a two-month jury trial, the trial judge declared that the plaintiffs were the rightful owners and submitted the plaintiffs' conversion and negligence claims to a jury. The jury returned a general verdict in favor of the defendants, and both sides appealed. Finding no reason to reverse, the Supreme Court affirmed the jury verdict and the trial court's declaratory judgment. View "Tellus Operating Group, LLC, v. Texas Petroleum Investment Co." on Justia Law

This litigation arose from the construction of a 143-unit condominium complex. Plaintiff Long Trail House Condominium Association appealed a trial court’s order granting summary judgment to defendant general contractor Engelberth Construction, Inc. on its complaint. The Association argued that the court erred in: (1) applying the economic loss rule to bar its negligence claim; and (2) dismissing its breach of implied warranty claim. Upon review of the trial court record, the Supreme Court affirmed, finding no error in the trial court's decision. View "Long Trail House Condominium Assoc. v. Engelberth Construction, Inc." on Justia Law

James Turner and Julie Viers opened a line of credit with Wells Fargo Bank and granted Wells Fargo a deed of trust on property they owned as security for the line of credit. Later, John Turner, Christina Turner, and Sandy Couch (the John Turners) purchased the property. Julie and James paid off the entire outstanding balance under the credit line agreement using the proceeds from the sale of the property to the John Turners, but Julie subsequently borrowed $169,090 under the credit line agreement secured by the property. Thereafter, Wells Fargo refused to release the deed of trust. The John Turners then filed a complaint to quiet title to the property. The district court granted Wells Fargo's motion for summary judgment, concluding that the John Turners could not enforce the terms of the credit line agreement because they were not intended beneficiaries of the agreement. The Supreme Court affirmed, holding that the district court correctly concluded (1) the John Turners were not entitled to judgment requiring Wells Fargo to release the deed of trust the bank held on the property; and (2) the John Turners failed to establish prima facie claims of promissory or equitable estoppel. View "Turner v. Wells Fargo Bank, N.A." on Justia Law

Appellant was among a number of homeowners in multiple states claiming that their mortgage companies wrongfully demanded an increase in flood insurance coverage to levels beyond the amounts required by their mortgages. In this case, the First Circuit Court of Appeals concluded that the pertinent mortgage provision explicitly gave the lender discretion to prescribe the amount of flood insurance. However, the Court held that the district court dismissal of Appellant's complaint must be vacated, as (1) a supplemental document given to Appellant at her real estate closing entitled "Flood Insurance Notification" reasonably may be read to state that the mandatory amount of flood insurance imposed at that time would remain unchanged for the duration of the mortgage; and (2) given the ambiguity as to the Lender's authority to increase the coverage requirement, Appellant was entitled to proceed with her breach of contract and related claims. View "Lass v. Bank of America, N.A." on Justia Law

The issue in this case was whether the parties' dispute over a provision in their lease for a shopping center store had to be resolved under the arbitration provision in the lease or whether it could have been resolved by a proceeding in district court. The disputed provision provided that landlord KWD River City Investments, L.P. would not alter the exterior of the shopping center without the consent of tenant Ross Dress for Less. KWD admitted that it allowed another tenant to alter the shopping center's exterior at that tenant's store location without Ross' consent. However, KWD maintained that Ross unreasonably withheld its consent in violation of the consent provision. KWD contended that the unreasonableness of Ross' refusal to consent was demonstrated by Ross conditioning its consent upon KWD making exterior alterations to benefit Ross. KWD then filed declaratory judgment action in district court to resolve the dispute. Ross filed a motion to compel arbitration. The trial court denied the motion to compel arbitration. On appeal, the Court of Civil Appeals reversed. KWD petitioned the Supreme Court to review the opinion of the Court of Civil Appeals. Upon review, the Court vacated the Court of Civil Appeals opinion and affirmed the trial court's denial of the motion to compel arbitration. View "KWD River City Investments, LP v. Ross Dress for Less, Inc." on Justia Law

Plaintiffs, owners of garaged lots in a subdivision, filed a complaint against the homeowners' association (HOA) alleging that the unequal treatment resulting from the HOA's assignment of parking spaces only to ungaraged lots in an amendment violated the subdivision's declaration of covenants, conditions, and restrictions (the Declaration). The circuit court determined that the amendment was invalid and ruled that the reservation of parking spaces in the common area for use solely by owners of ungaraged lots violated the Declaration. The court also found Plaintiffs were entitled to attorneys' fees. The Supreme Court affirmed in part and reversed in part, holding that the circuit court (1) did not err in ruling the Declaration requires that parking spaces in the common area be assigned equally among all lot owners; (2) did not err in ruling that the amendment was invalid; (3) erred in its award of certain compensatory damages but did not err in awarding other compensatory damages; and (4) did not err in ruling that Plaintiffs were entitled to attorneys' fees and in determining the amount of that award. Remanded for a determination of attorneys' fees incurred by Plaintiffs subsequent to the court's entry of the judgment appealed from. View "Manchester Oaks Homeowners Ass'n v. Batt" on Justia Law

This was an appeal of a judgment which held that a mechanic’s lien had priority over a mortgage. The judgment was predicated upon the district court's refusal to permit the mortgagee to withdraw an admission made in open court by its counsel that the mechanic's lien was valid. Upon review of the matter, the Supreme Court reversed the district court and held that the mechanic's lien was invalid because the lien did not show that it was verified before a person entitled to administer oaths. View "First Federal Savings Bank of Twin Falls v. Riedesel Engineering, Inc." on Justia Law

Plaintiff filed a complaint alleging that Defendant committed a breach of a settlement agreement with the town by failing to remove mulch from property owned by Plaintiff. Defendant filed a special motion to dismiss under the anti-SLAPP (Strategic Lawsuit Against Public Participation) statute, contending that the civil claim was intended to retaliate, deter, and punish Defendant solely for engaging in the constitutionally protected activity of petitioning the town. The motion was denied. On interlocutory appeal, the Supreme Court affirmed the denial, holding that Defendant failed to meet its required threshold showing that Plaintiff's claim of breach of the settlement agreement was based on Defendant's exercise of its right to petition. View "Marabello v. Boston Bank Corp." on Justia Law

Plaintiffs purchased a flood insurance policy from Appellee, American Bankers Insurance Company of Florida. Their policy was issued pursuant to a federal program under which private insurers issue and administer standardized flood insurance policies (WYO companies), and all claims are paid by the government. After a flood damaged their home in Rhode Island, including the contents of their basement, Plaintiffs sought compensation. American Bankers disallowed much of the amount claimed, asserting that the contents of Plaintiffs' basement were not covered by their policy. Plaintiffs subsequently brought suit in federal court, arguing that the Declarations Page of their policy created an ambiguity as to the scope of coverage and that, under federal common law and general insurance law principles, this ambiguity should be resolved in their favor. The district court entered summary judgment in favor of American Bankers. The First Circuit Court of Appeals affirmed, holding that Plaintiffs' claim was not remotely a claim on which a WYO company may be required to pay damages. View "McGair v. Am. Bankers Ins. Co. of Fla." on Justia Law

In July 2008, Appellant-Plaintiff Monica Claman purchased a house in Rock Springs, Wyoming, from Appellee-Defendant Jean Popp. In September 2008, Appellant filed an action against Popp based on subsidence-caused defects in the house. The district court entered summary judgment against Appellant on her breach of contract and negligent misrepresentation claims, and following a bench trial, it entered judgment against her on her fraudulent inducement claim. The issues on appeal were: (1) whether the trial court appropriately entered summary judgment against Appellant as to her breach of contract claim; (2) whether the trial court appropriately entered summary judgment against Appellant as to her claim for negligence/negligent misrepresentation; and, (3) whether the district court erred in its conclusions relating to the Department of Environmental Quality. Finding that the district court's summary judgment against Appellant's breach of contract and negligent misrepresentation claims were in accordance with law and undisputed facts, and that the court's findings of fact on the fraudulent inducement claim were not clearly erroneous, the Supreme Court affirmed the district court's decision. View "Claman v. Popp" on Justia Law