Justia Contracts Opinion Summaries

Defendant Union Mutual Fire Insurance Company appealed a superior court grant of summary judgment to plaintiff CC 145 Main, LLC, in a declaratory judgment action regarding the interpretation of an insurance policy exclusion. CC 145 Main owned an apartment building and purchased a “Businessowners Coverage” insurance policy that included “all risk” property insurance, which provided that Union Mutual would “pay for direct physical loss of or damage to” the covered property, unless coverage was specifically limited or excluded by the policy. The insured property sustained damage when a tenant poured cat litter down a toilet, clogging an interior pipe and causing water to overflow from a shower and toilet. The property required significant cleaning and repair, and tenants were required to temporarily relocate. CC 145 Main filed a claim with Union Mutual for water damage, which Union Mutual denied pursuant to a provision in the insurance policy excluding coverage for damage caused by “[w]ater that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment.” CC 145 Main filed a complaint seeking a declaration that the water exclusion does not apply to its claim. Union Mutual filed a motion for summary judgment, arguing that the damage at issue was caused by water that overflowed from “drains” within the meaning of the exclusion. The trial court concluded it was unclear whether the word “drain” in the water exclusion applied to shower and toilet drains and, therefore, the water exclusion was ambiguous and had to be construed in favor of CC 145 Main. Defendant challenged the trial court’s ruling that the policy’s water damage exclusion was ambiguous and its decision to construe the policy, therefore, in favor of CC 145 Main. But finding no reversible error, the New Hampshire Supreme Court affirmed the trial court. View "CC 145 Main, LLC v. Union Mutual Fire Insurance Company" on Justia Law

The Supreme Court affirmed the judgment of the district court enforcing a settlement agreement between Duane Bender and Rebecca Estates, LLC (collectively, Bender) and Stacey Rosman providing for Bender's purchase of Rosman's property near Shepherd, holding that the district court did not err.Bender filed suit against Rosman alleging trespass and tortious interference with contract and seeking to quiet title. Prior to trial, the parties reached a settlement agreement providing for the purchase of Rosman's property by Bender. The district court issued an order enforcing the settlement agreement for the price of $202,000. Bender appealed. The Supreme Court affirmed, holding that the district court did not err by concluding that Rosman was entitled to specific performance of the settlement agreement. View "Bender v. Rosman" on Justia Law

The Supreme Court vacated the district court's judgment awarding attorney fees in this action brought over a dispute between a general contractor and a property owner related to a residential construction contract but otherwise affirmed the judgment, holding that there was no statute or uniform course of procedure that allowed recovery of attorney fees on this record.After Property Owner failed to pay a construction lien General Contractor filed a breach of contract action and sought to foreclosure on the lien. Property Owner counterclaimed. The district court entered judgment in favor of General Contractor. Thereafter, the district court granted prejudgment interest in the amount of $49,946 and attorney fees in the amount of $115,473. The Supreme Court vacated the judgment in part, holding that the district court (1) erred in awarding attorney fees pursuant to Neb. Rev. Stat. 52-157 of the Nebraska Construction Lien Act; and (2) Property Owner was not entitled to relief on her remaining allegations of error. View "BCL Properties, Inc. v. Boyle" on Justia Law

The Supreme Court affirmed the summary judgment granted by the trial court in favor of a school corporation that contractually agreed to make biannual payments to a company for access to a wind turbine, holding that the contract was void and unenforceable.Randolph Eastern School Corporation (RESC) contractually agreed to make biannual payments to Performance Services, Inc. for a wind-turbine project. As part of the contract, Performance agreed to provide RESC with financial benefits tied to the net revenue of the turbine. RESC, which never made any payments to Performance, brought this declaratory judgment action seeking to void the contract on the grounds that it constituted an illegal investment. The trial court granted RESC's motion for summary judgment, concluding that the contract constituted an unauthorized investment. The Supreme Court affirmed, holding that the contract between RESC and Performance was void and unenforceable because it constituted an investment unauthorized by statute. View "Performance Services, Inc. v. Randolph Eastern School Corp." on Justia Law

In these two consolidated cases involving claims brought against the Electric Reliability Council of Texas, Inc. (ERCOT) the Supreme Court answered, among other questions, that ERCOT is a governmental unit as defined in the Texas Tort Claims Act and is thereby entitled to pursue an interlocutory appeal from the denial of a plea to the jurisdiction.CPS Energy sued ERCOT and several of its officers for, inter alia, breach of contract. The trial court denied ERCOT'S plea to the jurisdiction. Ultimately, the court of appeals held that ERCOT was a governmental unit entitled to take an interlocutory appeal. In the second case, Panda sued ERCOT for, inter alia, fraud. The trial court denied ERCOT's pleas to the jurisdiction. The court of appeals ultimately held that ERCOT was not entitled to sovereign immunity. The Supreme Court affirmed in the first case and reversed in the other, holding (1) ERCOT was entitled to pursue an interlocutory appeal from the denial of a plea to the jurisdiction; (2) the Public Utility Commission of Texas has exclusive jurisdiction over the parties' claims against ERCOT; and (3) ERCOT was entitled to sovereign immunity. View "CPS Energy v. Electric Reliability Council of Texas" on Justia Law

Through an Asset Purchase Agreement, seller Huntcole, LLC (Huntcole), transferred to buyer 4-Way Electric Services, LLC (4-Way), all property necessary to conduct the refurbishment business. The Asset Purchase Agreement did not include the building where the refurbishment business was located. Instead, Huntcole leased that building to 4-Way through a separate Lease. Three years after buying the business, 4-Way announced it was moving to a new building in a different city. It began removing large pieces of commercial equipment it believed it had purchased from Huntcole to conduct the refurbishment business. Huntcole protested and argued that because the equipment was affixed to the building, it was not transferred to 4-Way through the Asset Purchase Agreement. The trial court ruled in favor of Huntcole, finding the affixed equipment had been excluded from the Asset Purchase Agreement. After its review, the Mississippi Supreme Court affirmed in part and reversed in part the trial court's judgment. The Supreme Court found that based on the plain language of the Asset Purchase Agreement, 4-Way, by purchasing all assets necessary to conduct the refurbishment business, did in fact purchase the very equipment needed to conduct the business. The Asset Purchase Agreement also clearly designated the equipment as personal property and not as building improvements or fixtures. The Supreme Court concurred with the trial court that 4-Way did not have the right to cause damage to the building in a way that breached the Lease. The case was remanded to the trial court to determine the appropriate amount of damages to repair the building in accordance with the Lease, and to recalculate Huntcole's attorney fees' awards. View "4-Way Electric Services, LLC v. Huntcole, LLC, et al." on Justia Law

The Monte Vista Villas Project, on the site of the former Leona Quarry, has been in development since the early 2000s. The developers planned to close the 128-acre quarry site, reclaim it, and develop the land into a residential neighborhood with over 400 residential units, a community center, a park, pedestrian trails, and other recreational areas. In 2005, the developers entered into an agreement with Oakland to pay certain fees to cover the costs of its project oversight. The agreement provided that the fees set forth in the agreement satisfied “all of the Developer’s obligations for fees due to the City for the Project.” In 2016, Oakland adopted ordinances that imposed new impact fees on development projects, intended to address the effects of development on affordable housing, transportation, and capital improvements, and assessed the new impact fees on the Project, then more than a decade into development, when the developers sought new building permits.The trial court vacated the imposition of the fees and directed Oakland to refrain from assessing any fee not specified in the agreement. The court of appeal reversed, finding that any provision in, or construction of, the parties’ agreement that prevents Oakland from imposing the impact fees on the instant development project constitutes an impermissible infringement of the city’s police power and is therefore invalid. View "Discovery Builders, Inc. v. City of Oakland" on Justia Law

This case stemmed from a 2019 lease by Respondents the City of Sandpoint (“the City”) to The Festival at Sandpoint (“The Festival”), a nonprofit corporation, to operate a multi-day music concert series in War Memorial Field Park. The Festival had a long-standing policy of prohibiting festival patrons from bringing weapons, including firearms, into the event. On August 9, 2019, Scott Herndon and Jeff Avery purchased tickets to the festival and attempted to enter. Avery openly carried a firearm and Herndon possessed a firearm either on his person or in a bag (the record was unclear on this point). Security personnel for the event denied entry to both. After discussions with a City police officer and the City’s attorney, who was coincidentally attending the same event in his private capacity, Herndon and Avery eventually left the music festival and received a refund for their tickets. Appellants Herndon, Avery, the Idaho Second Amendment Alliance, Inc., and the Second Amendment Foundation, Inc. subsequently sued the City and The Festival, asserting several claims, including seeking injunctive relief prohibiting the Respondents from violating the Idaho and United States Constitutions, particularly the Second Amendment and the Idaho Constitution’s provision securing the right to keep and bear arms in public for all lawful purposes. The district court ultimately granted the Respondents’ motions for summary judgment, awarded both the City and The Festival attorney fees and costs, and dismissed all the Appellants’ claims with prejudice. The issue raised on appeal was whether a private party who leased public property from a municipality may govern those who come and go from the property during the lease. The Idaho Supreme Court responded in the affirmative, and affirmed the district court's judgment. View "Herndon v. City of Sandpoint" on Justia Law

The Supreme Court affirmed the decision of the court of appeals in this insurance dispute over damages allegedly caused by the poor construction of an in-ground pool, holding that this Court overrules the portions of Wisconsin Pharmacy Co. v. Nebraska Cultures of California, Inc., 876 N.W.2d 72 (Wis. 2016), stating that "property damages" must be to "other property" for purposes of determining an initial grant of coverage in a commercial general liability (CGL) policy.Due to the damages caused by the cracking of Homeowner's pool, Homeowner was forced to demolish the entire pool structure and construct a new one. Two insurers on appeal had issued CGL policies to the pool's general contractor, and a third insurer issued a CGL policy to the supplier of the pump mix used for the pool's construction. All three insurers sought a declaration that their policies did not provide coverage to Homeowner. The Supreme Court held, under the circumstances of this case, that none of the insurers were entitled to summary judgment and accordingly remanded the cause back to the circuit court for further proceedings. View "5 Walworth, LLC v. Engerman Contracting, Inc." on Justia Law

The Supreme Judicial Court reversed the decision of the district court granting a partial summary judgment construing a long-term written lease between Owner and Tenant and, after a trial, entering a judgment regarding the parties dispute over minimum rent, holding that a factual issue existed precluding summary judgment.Owner sued Tenant for breach of contract after the parties could not agree when renegotiating minimum rent, alleging express breach of contract, declaratory judgment, and breach of the implied duty of good faith and fair dealing. The district court entered partial summary judgment in favor of Owner construing the lease but held that there were material facts in dispute as to whether Owner violated the implied duty of good faith and fair dealing when renegotiating. After a trial, the court entered judgment for Owner. The Supreme Court reversed, holding that the provision in the lease regarding minimum rent is ambiguous, and therefore, the court's entry of partial summary judgment on the issue must be reversed. The Court remanded the case for further proceedings. View "Brush & Co. v. W. O. Zangger & Son, Inc." on Justia Law