Justia Contracts Opinion Summaries

In 2005, the Rhode Island Department of Administration and the Rhode Island Department of Health (collectively, the State), selected Plaintiff as its livery service provider through a bidding process. Plaintiff and the State entered into a contract setting forth the terms of the parties’ agreement. In 2007, the State terminated Plaintiff’s contract for alleged violations of the terms of the bid award. Plaintiff filed suit, alleging that the State breached the contract by terminating the agreement in bad faith and without cause. Before trial, the trial justice granted the State’s motion in limine to prohibit Plaintiff from introducing evidence to suggest that the contract was an exclusive agreement between the State and Plaintiff. The trial justice subsequently found that the State lawfully terminated its contract with Plaintiff in good faith and did not breach the contract. The Supreme Court affirmed, holding that the trial justice did not err in finding that the contract was not exclusive and that the State’s unilateral termination of the contract upon a finding of unsatisfactory performance did not constitute a breach. View "JPL Livery Servs., Inc. v. R.I. Dep't of Admin." on Justia Law

In 1997, Defendants formed a Vermont corporation called Green Mountain Park, Inc. to reconstruct, revive, and operate a defunct horseracing facility in the Town of Pownal, Vermont. Plaintiff agreed to invest $350,000 in the enterprise. Plaintiff subsequently became a member of the board of directors along with Defendants. A few years later, the project was abandoned due to issues surrounding Green Mountain’s ability to obtain a racetrack license. Defendants filed a complaint against Plaintiff in 2002, and Plaintiff counterclaimed for breach of fiduciary duty, fraud, and breach of contract. Defendants’ complaint was subsequently dismissed, and the case proceeded to trial on Plaintiff’s counterclaims. After a bench trial, the superior court entered judgment for Defendants on all counts. The Supreme Court affirmed, holding that the trial justice did not err in his factual findings and conclusions of law. View "Wilby v. Savoie" on Justia Law

Plaintiffs entered into a loan agreement with Potomac Realty Capital LLC (PRC) to rehabilitate and renovate certain property. As security for the loan, NV One granted a mortgage on the property. Plaintiffs later filed a complaint against PRC, asserting violations of the Rhode Island usury law, among other claims. The trial justice granted summary judgment to Plaintiffs with respect to the usury claim, entered an order declaring the loan usurious and void, and voided the mortgage. At issue on appeal was whether a usury savings clause in the loan document validated the otherwise usurious contract. The Supreme Court affirmed, holding that Plaintiffs were entitled to judgment as a matter of law on their usury claim because (1) the loan was a usury; and (2) the usury savings clause was unenforceable on public policy grounds. View "NV One, LLC v. Potomac Realty Capital, LLC" on Justia Law

After Plaintiff filed a complaint for divorce from Dean Miller, Plaintiff and Dean executed a property settlement agreement providing that Dean would maintain life insurance for the benefit of the parties' four minor children until they reached the age of majority. Dean subsequently executed a service request form listing his children as the beneficiaries of his life insurance policy and instructing that beneficial interests be paid to and managed by Kristin Saunders as custodial trustee for the benefit of his minor children. After Dean died, funds from his life insurance policy were distributed to Saunders. Plaintiff filed a complaint seeking declaratory and injunctive relief asking the superior court to declare that Dean's four children were the sole beneficiaries of his life insurance policy. The court granted Defendants' motion for summary judgment, finding that Dean created a valid custodial trust pursuant to the Rhode Island Uniform Custodial Trust Act (RIUCTA) and that the trust was not inconsistent with Dean's obligations under the property settlement agreement. The Supreme Court affirmed, holding (1) Dean created a custodial trust pursuant to RIUCTA; and (2) Dean did not violate the property settlement agreement by designating Saunders as custodial trustee on the service request form. View "Miller v. Saunders" on Justia Law

After John and Anne had been married almost twenty years, John filed a complaint for divorce. Three years later, the parties indicated that they had reached a settlement, which obligated John to provide health insurance for Anne until she reached sixty-five years of age, with a Medicare supplement thereafter. The parties' agreement was read into the record and approved by the trial justice, who ordered it incorporated but not merged into the final divorce decree. However, the parties never executed a written agreement. John later challenged the validity of the marital settlement agreement after Anne moved to enforce the provisions of the agreement respecting John's obligation to pay for health insurance. The family court found that the parties clearly agreed that John was to cover Anne with her health insurance and ordered John to obtain and maintain the health insurance pursuant to the agreement. The Supreme Court affirmed, holding that the agreement was sufficient to form a nonmodifiable marital settlement agreement, and therefore, John was bound by its terms. View "O'Donnell v. O'Donnell" on Justia Law

Defendant's employer had insurance through American States Insurance Policy (ASIC). After Defendant was involved in a car accident, Defendant sent ASIC written notice of a potential claim under ASIC's uninsured/underinsured (UM/UIM) coverage. ASIC did not formally deny the claim but, rather, responded with a declaratory-judgment action, asserting that because Defendant had failed to undertake legal action or to make a written demand for arbitration against ASIC within three years from the date of the accident, her UIM claim against ASIC was time-barred. The U.S. district court entered judgment on the pleadings in favor of ASIC, determining that the three-year limitations period set forth in the policy did not violate public policy. On appeal, the court of appeals certified a question of law to the Rhode Island Supreme Court, which answered by holding that Rhode Island would not enforce the contractual limitations clause in this case because it began to run on the date of the accident rather than the date the insurance contract was breached and was shorter than the statutory limitations period. View "Am. States Ins. Co. v. LaFlam" on Justia Law

At issue in this appeal was the interpretation of a clause concerning the allocation of real estate taxes contained in a written lease between Inland American Retail Management and Cinemaworld of Florida. Inland and Cinemaworld were successors-in-interest to a ground lease for the rental of what is now a movie theater in a shopping center. Under the terms of the lease, Cinemaworld incurred certain liabilities and expenses. Pursuant to a clause in the lease, Cinemaworld was required to pay an amount equal to the real estate taxes "levied, assessed, or otherwise imposed" against the movie theater. Inland filed a complaint for breach of the lease for Cinemaworld's alleged failure to make timely payments as required by the lease. The superior court granted partial summary judgment in Cinemaworld's favor with respect to its motion seeking an accounting, ruling that the formula allocating Cinemaworld's reasonable share of real estate taxes should be based on the square footage of its leased premises. Inland appealed. The Supreme Court vacated the judgment of the superior court, holding that there was a genuine issue of material fact as to the interpretation of the parties' lease. View "Inland Am. Retail Mgmt. LLC v. Cinemaworld of Fla., Inc." on Justia Law

In 1995, Elizabeth Meyer, the sole shareholder and CEO of Greensleeves, Inc., orally agreed to buy six dock slips from Philip Smiley. Smiley subsequently entered into a purchase and sale agreement with Eugene Friedrich for the sale of those same dock slips. When Smiley refuse to convey the dock slips to Greensleeves, Greensleeves filed suit against Smiley. Friedrich intervened and moved to dismiss the complaint. The superior court granted judgment in favor of Smiley and Friedrich, finding no enforceable contract between Greensleeves and Smiley. The Supreme Court vacated the superior court's judgment, holding that there was an enforceable contract between Greensleeves and Smiley. Friedrich subsequently relinquished his ownership of the dock slips and conveyed them to Greensleeves. Greensleeves then sought an accounting of the rental income that had been collected from the dock slips from the date of the originally-scheduled closing between Greensleeves through the 1999 boating season. Ultimately, the trial court concluded (1) Friedrich had tortiously interfered with the contract between Smiley and Greensleeves, and (2) Greensleeves was entitled to lost rental profits of $61,258 plus interest and costs. The Supreme Court affirmed, holding that the trial court did not commit reversible error in its findings and judgment. View "Greensleeves, Inc. v. Smiley" on Justia Law

Plaintiffs filed a purchase and sales agreement agreeing to buy Defendant's property and deposited ten percent of the purchase price with Defendant's real estate agent until closing. Defendant signed the agreement but also made certain handwritten alterations to the contract. Plaintiffs filed a complaint against Defendant, alleging that Defendant's handwritten alterations were material changes that constituted a counter-offer, not an acceptance of Plaintiffs' offer to purchase the property. The jury found there was never a valid contract between the parties and Plaintiffs were entitled to the return of their deposit. The trial court added prejudgment interest to the judgment. Defendant filed a motion to alter or amend the judgment, arguing that Plaintiffs were not entitled to interest on their deposit. The trial court denied the motion. The Supreme Court vacated the award of prejudgment interest in this case, holding that Plaintiffs' deposit did not fall within the category of "pecuniary damages" under R.I. Gen. Laws 9-21-10(a), and therefore, Plaintiffs were not entitled to prejudgment interest. View "Andrews v. Plouff" on Justia Law

This case involved a mediated settlement agreement between two of the heirs of Alfredo and the executrix of his estate, Maria. The superior court ordered Plaintiffs, Lucilio and Patricia, to execute general releases and pay attorney's fees incurred by Maria in seeking to enforce the settlement agreement. Plaintiffs appealed, arguing that the superior court erred in ordering them to execute general releases with terms that were materially different from those contemplated during settlement negotiations, and in assessing attorney's fees. The Supreme Court vacated the judgment of the superior court, holding (1) the trial justice erred in ordering Plaintiffs to execute the general release where the general release's language exceeded the clear and unambiguous terms of the settlement agreement; and (2) the superior court erred in awarding attorney's fees to Defendant pursuant to R.I. Gen. Laws 9-1-45, as the statute's threshold requirement that the party to receive the attorney's fees award be the "prevailing party" had not been met. View "Furtado v. Goncalves" on Justia Law