Justia Contracts Opinion Summaries

This case involves the State's "working retiree program," and the propriety of its withholding retirement contributions from eligible members who returned to work with the state prior to July, 2005. Before that time, the program allowed employees to retire, then after a break, be re-hired and receive retirement benefits and a salary of up to $50,000 per year without having to pay into the pension plan. The State was ordered to refund any contributions made since July, 2005 by program members. In 2005, the State Retirement System Preservation and Investment Reform Act amended the program to require retired members pay the employee contribution as if they were active members but without accruing additional service credit. The State appealed the circuit court's order to refund the contributions. The retirees challenged the change in the program, arguing that it was unlawful for the State to change the terms of the working retiree program after the retirees "irreversibly retired" with the understanding that contributions to the pension plan would not be required. Upon careful consideration of the arguments and legal authority, the Supreme Court reversed the circuit court's holding with respect to the State's return of contributions since 2005. The Court found that the Legislature enabled the State to take the contributions when it amended the program by Act in 2005. The Court dismissed the Retirees' challenge to the State Retirement System Preservation and Investment Reform Act, finding no merit in their argument.

Gregory and Kerry Brown appealed the circuit court's confirmation of an arbitration award that was granted to their former general contractor C-Sculptures. C-Sculptures built the Browns' house. The Browns claimed C-Sculptures was precluded from enforcing a contract between them because the contractor's license limited the contractor to work totaling $100,000. C-Sculptures' final invoice totaled over $800,000, and when the Browns refused to pay, the contractor placed a lien on their property for the unpaid amount. The arbitrator awarded C-Sculptures the money it was owed, and the Browns appealed the arbitrator's award to the circuit court, arguing that the statutory limit on the contractor's license limited payment to $100,000. On review, the Supreme Court found that the arbitrator followed the statutory scheme to make his determination in favor of the contractor. Accordingly, the Court affirmed the lower court's confirmation of the arbitrator's award.

"The Hamlets" is a subdivision within Crowfield Plantation. Covenants for the subdivision were drafted and recorded in 1991. The covenants created an Architectural Review Board that would enforce the terms of the covenants of the subdivision. Respondents John and Pamela Matsell live in the Hamlets, and their lot abuts a golf course. Their next door neighbors built a fence that covers the majority of the backyard that can be seen from the street that fronts the property, in violation of the covenants. In 2007, the Matsells filed a complaint with the Architectural Review Board to have the Board order the neighbors to remove the fence. When the Board did not comply, the Matsells filed their complaint with the circuit court. The Board argued that it had discretion in interpreting and enforcing the subdivision covenants. The trial court read the "clear language" of the covenants, and found the fence was in violation. The court granted the Matsells summary judgment, and the Board appealed. The Supreme Court found the language of the covenants was plain and unambiguous, and did not allow for a fence that could be seen from the street. The Court affirmed the lower court's decision granting the Matsells summary judgment.

American Media Services, LLC (AMS) appealed an arbitration award that was decided in favor of former employee, Respondent Mark Steinmetz. Steinmetz claimed AMS breached his employment agreement, and the parties agreed to settle the dispute through arbitration. The arbitrator found in favor of Steinmetz. AMS filed a motion to have the award reconsidered by the circuit court, but the court entered judgment in accordance with the arbitrator's findings. The Supreme Court found in submitting its appeal, AMS did not appeal the order of the circuit court, it appealed the order of the arbitrator. Accordingly, the Court did not have jurisdiction over AMS' claim and dismissed it.