Justia Contracts Opinion Summaries

Defendants Eagle Crest Apartments, LLC, et al. appealed a judgment awarding UMB Bank N.A. more than $21 million in an action for breach of contract, foreclosure, fraudulent transfers, and deceit. The Defendants raised a number of issues on appeal. The North Dakota limited review to the issues raised in defendants' motion for a new trial, and concluded the district court did not err when it entered a deficiency judgment and pierced the Defendants’ corporate veils. View "UMB Bank N.A. v. Eagle Crest Apartments, et al." on Justia Law

Barry Clarke brought this action for specific performance of a right of first refusal. Clarke owned a strip club at 2015 Pittsburgh Avenue in Charleston, South Carolina. Group Investment Company, Inc., whose shareholders were John Robinson and Robin Robinson, owned a strip club across the street at 2028 Pittsburgh Avenue (the Subject Property). The Subject Property included buildings, a parking lot, and other land. In 1999, Clarke and Group Investment entered into a recorded lease that allowed Clarke to use half of the parking spaces located on the Subject Property. In 2007, Group Investment conveyed the Subject Property to RRJR, LLC for the stated consideration of $5.00. John Robinson and Robin Robinson were members of RRJR. Clarke testified he "probably" knew Group Investment transferred the Subject Property to RRJR, but Clarke claimed he did not seek to exercise the Right at that time because Group Investment and RRJR were "the same people." In 2013, RRJR conveyed the Subject Property to Fine Housing for $150,000.00. Fine Housing's closing attorney did not take note of the Lease or the Right prior to the closing, but Fine Housing conceded it had record notice of both the Lease and the Right. Neither Fine Housing nor RRJR notified Clarke of the sale of the Subject Property. Clarke learned of the sale in March 2014, and in May 2015, Clarke initiated this action for specific performance against Fine Housing and RRJR. RRJR did not answer and was in default. After a bench trial, the trial court ruled the Right was enforceable as to the entire Subject Property and ordered Fine Housing to convey title to the Subject Property to Clarke upon his payment of $350,000.00. The court of appeals reversed, holding the Right was an unreasonable restraint on alienation and was therefore unenforceable. The South Carolina Supreme Court found the Right did not identify the property it encumbered, contain price provisions, or contain procedures governing the exercise of the Right. Therefore, the Court concluded the Right was an unreasonable restraint on alienation, and affirmed the court of appeals' holding that the Right was unenforceable. View "Clarke v. Fine Housing, Inc." on Justia Law

The Supreme Judicial Court affirmed the decision of the district court granting summary judgment in favor of Seller in this case stemming from the economic disruption caused by the COVID-19 pandemic, holding that there was no error in the proceedings below.Specifically at issue was, in light of the disruptions caused by COVID-19 pandemic, whether the doctrines of impracticability of performance or frustration of purpose temporarily excused the purchaser of a cleaning services franchise and the purchaser's co-owners from their obligation to pay the outstanding portion of the purchase price of the franchise. The district court granted summary judgment in favor of the property seller. The First Circuit affirmed, holding (1) the record did not support a rational finding that the pandemic cause date continued payment of the franchise purchase price to be impracticable or frustrated the principal purpose of the contract; and (2) the parties intended that the obligation to pay would not be conditioned on the franchise's financial performance beyond the first six months following the sale. View "Le Fort Enterprises, Inc. v. Lantern 18, LLC" on Justia Law

Defendants Michael and Dawn Heath sold Plaintiff Harry Johnson a gasoline and automobile-service station in Wells, Nevada. Soon after the sale, Plaintiff allegedly discovered that the property had material, undisclosed defects and that Defendants had artificially inflated the business’s profits by scamming customers over the years. In suing them, Plaintiff asserted many state-law claims against both Defendants and a claim against Defendant Michael Heath under the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”). The district court dismissed Plaintiff’s RICO claim for failure to state a claim upon which relief could be granted and declined to exercise supplemental jurisdiction over the remaining state claims. The issue Plaintiff's appeal raised for the Tenth Circuit's review centered on whether Defendants’ actions as alleged plausibly violated the federal RICO statute. Because the Court concluded they did not, it affirmed the district court's judgment. View "Johnson v. Heath, et al." on Justia Law

In this real estate case, the Supreme Court affirmed the judgment of the district court dismissing this complaint brought by Rocky Mountain Hospitality, LLC (Seller) against Mountain Classic Real Estate, Inc. (Buyer) and awarded Buyer its attorney fees on appeal, holding that because Seller failed to release its interest in the deposit before filing its complaint it was barred from pursuing other remedies.Buyer entered into a contract with Seller to purchase a motel. The purchase price included an earnest money deposit. Buyer failed to purchase the motel. Seller brought this action seeking damages but failed to release its interest in the earnest money deposit before filing the complaint. The district court dismissed the complaint. The Supreme Court affirmed, holding (1) under the contract's default provision, Seller was obligated to release its interest in an earnest money deposit before filing a complaint if Seller wished to pursue a remedy other than liquidated damages; and (2) Seller was deemed to have elected to retain the deposit as liquidated damages and was barred from pursuing its claims. View "Rocky Mountain Hospitality v. Mountain Classic Real Estate, Inc." on Justia Law

Justin Shafer appealed a district court judgment confirming an arbitration award against Diamond Development & Custom Homes, L.L.C. Shafer argued the district court erred by failing to increase the amount of damages he was awarded. He also argued the North Dakota Supreme Court should narrowly expand the standard for reviewing an arbitration award. The Court declined Shafer’s request to expand the standard of review, and concluded the district court did not err in confirming the arbitration award. View "Shafer v. Scarborough, et al." on Justia Law

The First Circuit reversed the order of the district court dismissing Plaintiffs' breach of contract claim against Wilmington Savings Fund Society, FSB and otherwise affirmed the district court order dismissing Plaintiffs' complaint against Wilmington Savings and Selene Finance LP, holding that the district court erred in part.Plaintiffs filed a complaint seeking a declaratory judgment that Defendants breached the parties' mortgage contract by selling their property through a non-judicial foreclosure, thus rendering the foreclosure void. Specifically, Plaintiffs alleged that the foreclosure and sale were conducted without providing adequate notice, as required by the mortgage contract. The district court granted Defendants' motion to dismiss. The First Circuit reversed in part, holding (1) Plaintiffs stated a claim that the notice of default failed strictly to comply with the requirements of the mortgage contract, and therefore, dismissal of their claim against Wilmington Savings was improper; and (2) as to the remaining claims, dismissal was proper. View "Aubee v. Selene Finance LP" on Justia Law

The Supreme Court affirmed the opinion of the court of appeals affirming the trial court's entry of summary judgment in favor of Plaintiffs and holding that eight of nine restrictive covenants governing Plaintiffs' lots within the parties' residential subdivision were extinguished by operation of North Carolina's Real Property Marketable Title Act, N.C. Gen. Stat. 47B-1 to 47B-9, holding that the eight covenants were extinguished by operation of law.At issue on appeal was whether the court of appeals correctly determined that the Act's thirteenth enumerated exception did not apply to save all of the nine restrictive covenants in question. The Supreme Court affirmed, holding (1) the court of appeals correctly held that all but one of the restrictive covenants, as applied to Plaintiffs' property, were to be extinguished under the Act; and (2) a plain reading of section 47B-3(13) exempts from extinguishment only those covenants that actually require that a property be used residentially within the confines of a general or uniform scheme of development. View "C Investments 2, LLC v. Auger" on Justia Law

The Supreme Court affirmed in part and reversed in part and remanded this matter for a new trial, holding that the district court erred in proceeding to a trial without a jury on Plaintiff's causes of action for breach of contract, breach of guaranty, and unjust enrichment.Plaintiff's brought this complaint against Defendants for, among other causes of action, forcible entry and detainer. The district court granted relief on the forcible entry and detainer claim, ordering restitution. After a bench trial, the district court heard the remaining causes of action and awarded damages to Plaintiff. The Supreme Court reversed in part, holding (1) Plaintiff's remaining causes of action were legal in nature, and the issues of fact that arose thereunder entitled Defendants to a jury trial unless waived; and (2) there was no waiver of Defendants' right to a jury trial. View "132 Ventures, LLC v. Active Spine Physical Therapy, LLC" on Justia Law

Jeff Trosen appealed a judgment and amended judgment awarding damages for a breach of contract claim to the Estate of Shirley Trosen and the Trosen Family Trust and dismissing Jeff’s counterclaim and third-party complaint. A dispute arose over Jeff’s lease of farmland from Shirley. The lease covered the farming seasons of 2017 through 2022. Partial payments were made in 2020 and 2021, leaving balances owed for those years. Shirley and the Trust sued Jeff for breach of contract and to cancel the lease. Jeff argued the district court erred in granting summary judgment on the breach of contract claim and by dismissing his counterclaim and third-party complaint. Finding no reversible error, the North Dakota Supreme Court affirmed the judgments. View "Trosen, et al. v. Trosen, et al." on Justia Law