Justia Contracts Opinion Summaries

In 2001, EQT sold or leased to Journey several oil- and natural-gas-producing properties in Kentucky. Both parties continued to conduct oil and natural-gas operations in the state, but Journey later concluded that EQT was operating on some of the lands that had been conveyed to Journey. Journey sought a declaration that it owned or controlled those properties and that EQT was liable for the oil and natural gas that EQT had removed from those properties. The district court concluded on summary judgment that the parties’ 2001 contract had unambiguously conveyed the disputed properties to Journey. A jury found that EQT’s trespasses on Journey’s lands were not in good faith. The court subsequently required EQT to pay $14,288,432 in damages and transfer certain oil and natural-gas wells to Journey. The Sixth Circuit affirmed, rejecting arguments that the district court erred in construing the parties’ contract, in excluding portions of EQT’s proffered evidence, and in crafting the remedy for EQT’s trespasses. EQT carried out its drilling despite obvious indicators that its ownership of the underlying property was doubtful, establishing an ample basis to conclude that EQT’s trespasses were not in good faith. View "Journey Acquisition-II, L.P. v. EQT Prod.Co." on Justia Law

In June 2012, a hailstorm damaged Plaintiff KCOM’s motel. Soon a dispute arose between KCOM and its insurer, defendant Employers Mutual Casualty (EMC), over the extent of the damage. In October 2012, following receipt of an inspection report, KCOM submitted a proof of loss of $631,726.87. EMC admitted coverage but not the amount of loss. Dissatisfied, KCOM invoked the insurance contract’s appraisal provision. KCOM claimed there were issues with the appraisal process, prompting it to ultimately file suit against EMC, alleging breach of contract, unreasonable delay and denial of benefits, and bad faith breach of the insurance contract. The threshold question presented for the Tenth Circuit's review in this state law diversity action was whether the Court had appellate jurisdiction over the district court’s non-final order denying confirmation of a property loss appraisal. The Court concluded it did not, and dismissed the appeal. View "KCOM, Inc. v. Employers Mutual Casualty Co." on Justia Law

The United States Court of Appeals for the Ninth Circuit certified a question of Washington law to the Washington Supreme Court: "Does a title company owe a duty of care to third parties in the recording of legal instruments?" This certified question arose out of a civil action for money damages. Plaintiffs Centurion Properties Ill LLC (CP Ill) and SMI Group XIV LLC (collectively Plaintiffs) asserted that defendant Chicago Title Insurance Company negligently breached its duty of care and caused damages when it recorded unauthorized liens on CP Ill's property. The Washington Supreme Court answered the Ninth Circuit's question "no," holding that title companies did not owe a duty of care to third parties in the recording of legal instruments. "Such a duty is contrary to Washington's policy and precedent, and other duty of care considerations." View "Centurion Props. III, LLC v. Chi. Title Ins. Co." on Justia Law

Plaintiffs and Defendants owned real property on a peninsula in Echo Lake. Defendants owned a parcel on the southern end of the peninsula, through which the sole vehicular road granting access to the northern lots owned by Plaintiffs ran. Defendants purchased their property subject to a long-term existing easement allowing Plaintiffs access to their properties. In 1992, the parties entered into a road maintenance agreement setting forth the responsibilities of the parties regarding maintenance of the access road. When a flood damaged the road, Plaintiffs filed a complaint seeking declaratory judgment that the maintenance agreement was valid and enforceable and alleging that Defendants breached the agreement. Defendants counterclaimed. The district court entered judgment in favor of Defendants. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) erred by concluding that the maintenance agreement was unenforceable against Defendants for lack of consideration, but the error was harmless; (2) did not err by ruling that Defendants did not breach the maintenance agreement; and (3) did not err by ordering Plaintiffs to pay Defendants’ counterclaim-related attorney’s fees and costs. View "Low v. Reick" on Justia Law

Constellation Development, LLC, appealed dismissal of its claims against Western Trust Company and its trustee, Gary Hoffman (collectively "Western"), for breach of contract and equitable and promissory estoppel, and against Dabbert Custom Homes, LLC, for tortious interference with a business contract. In 2013, Constellation agreed in writing to purchase about 24 acres of land in Cass County from Western, with the remaining balance to be paid on October 14, 2013. A check was tendered with the agreement, but was returned for insufficient funds. When Constellation tendered a cashier's check to cover the earlier check, Western refused it. In it s suit against Wester, Constellation claimed there had been an oral extension of the purchase agreement. The Supreme Court found the district court did not err in finding there was no breach of any agreement Western had with Constellation, it affirmed dismissal of Constellation's claims. View "Constellation Development, LLC v. Western Trust Co." on Justia Law

In August 2005, D.R. Horton, Inc. completed construction of the Smiths' home, and the Smiths closed on the property and received the deed. Thereafter, the Smiths experienced a myriad of problems with the home that resulted in severe water damage to the property. D.R. Horton attempted to repair the alleged construction defects on "numerous occasions" during the next five years, but was ultimately unsuccessful. In 2010, the Smiths filed a construction defect case against D.R. Horton and seven subcontractors. In response, D.R. Horton filed a motion to compel arbitration. The Smiths opposed the motion, arguing, inter alia, that the arbitration agreement was unconscionable and therefore unenforceable. The circuit court denied D.R. Horton's motion to compel arbitration, finding that the arbitration agreement was unconscionable. D.R. Horton appealed, but finding no error in the circuit court's decision, the South Carolina Supreme Court affirmed. View "Smith v. D.R. Horton, Inc" on Justia Law

After seeking a mortgage modification under the Home Affordable Modification Program Plaintiff filed a complaint against Wells Fargo Bank, N.A. and Homeward Residential Inc., claiming breach of contract, unfair debt collection under Mass. Gen. Laws ch. 93A, and derivative equitable relief. A federal district court dismissed Plaintiff’s action in its entirety. The First Circuit vacated and remanded, holding that Plaintiff’s complaint sufficiently alleged that Defendants failed to offer her a mortgage modification in a timely manner and that Plaintiff had sufficiently pled damages for her Chapter 93A claim. On remand, the district court granted summary judgment in favor of Defendants. The First Circuit affirmed, holding that Plaintiff’s breach of contract and Chapter 93A claims failed, and therefore, her derivative claim for equitable relief failed as well. View "Young v. Wells Fargo Bank, N.A." on Justia Law

Appellants, the owners of a tract of land in the Riva Ridge subdivision, submitted their plans to build a home and writer’s studio to the Riva Ridge Owners Association’s Site Committee. The Site Committee rejected the plans on the basis that some of Appellants’ home would be visible from some locations in other homes. Appellants filed a complaint against the Association and others (collectively, Appellees) alleging several causes of action. Appellants filed a separate complaint requesting a determination of the term “principal residence site” in the covenants. The district court granted summary judgment for Appellees on several issues. After a trial, the district court interpreted the phrase “principal residence site” in a way that required complete invisibility between the homes in the subdivision. The Supreme Court affirmed in part and reversed and remanded in part, holding that the district court (1) erred in its interpretation of the phrase “principal residence,” as the covenants only require that a principal residence be invisible only from a precise area of land on each tract; (2) erred in granting summary judgment on Appellants’ breach of contract and bad faith claims; and (3) properly determined that Appellants must seek permission from the Site Committee before planting any trees on their tract. View "Felix Felicis, LLC v. Riva Ridge Owners Ass’n" on Justia Law

Plaintiff filed an application with the Coastal Resources Management Council (CRMC) seeking to expand his condominium unit. Defendants filed an objection to the proposal, asserting that Plaintiff did not own the property upon which he sought to expand his unit. CRMC denied the application. Plaintiff subsequently brought a complaint alleging slander of title and breach of contract and sought a declaratory judgment that he had the right to file his application with the CRMC. The trial justice granted summary judgment in favor of Defendants, concluding that Rhode Island’s anti-SLAPP statute protected them from liability for questioning Plaintiff’s ownership of the land in their communications with the CRMC. The Supreme Court affirmed. Defendants then filed a motion seeking attorney fees incurred in defending the anti-SLAPP judgment on appeal. The hearing justice awarded Defendants $8,924 in attorney’s fees in connection with the appeal. The Supreme Court affirmed the award of attorney's fees, holding (1) the issue of attorney’s fees was properly before the superior court; and (2) the superior court did not abuse his discretion in awarding attorney’s fees. View "Sisto v. America Condo. Ass’n, Inc." on Justia Law

Goat Island South Condominium (GIS) was comprised of three subcondominium residence areas - Harbor Houses Condominium (Harbor Houses), America Condominium (America), and Capella South Condominium (Capella). The Constellation Trust owned Unit 18 in Harbor Houses. Plaintiffs, America and Capella, filed an action against Defendants, the trustee of the Trust and Harbor Houses, seeking injunctive relief to bring a halt to the expansion of Unit 18 onto a limited common element. The trial justice concluded (1) Defendants were liable for breach of contract and for committing a common law trespass, (2) Plaintiffs’ allegation that Defendants breached restrictive covenants contained in the GIS Second Amended and Restated Declaration of Condominium (GIS SAR) was moot, and (3) Plaintiffs were not entitled to attorneys’ fees. The Supreme Court affirmed in part and vacated in part, holding (1) the trial justice erred in failing to award attorneys’ fees and costs to Plaintiffs based on the terms of the GIS SAR; and (2) the trial court did not otherwise err in its judgment. View "America Condo. Ass’n, Inc. v. Mardo" on Justia Law