Justia Contracts Opinion Summaries

Lloyd Anastasi loaned $2.4 million to a third party in exchange for a mortgage on a property supposedly owned by that third party. Fidelity Insurance Company insured that the third party had good title, but the warranty deed purporting to give title to the third party was forged. Anastasi was sued by the owners of the property, and Fidelity accepted tender of the claim under a reservation of rights. Anastasi later filed a bad faith and breach of contract claim against Fidelity, alleging that the lawsuit was used by Fidelity to delay paying him under the title insurance policy. The circuit court granted summary judgment in favor of Fidelity. The intermediate court of appeals (ICA) remanded in part and vacated in part. The Supreme Court (1) affirmed the ICA’s judgment insofar as it remanded to the circuit court an order allowing Fidelity to withhold certain documents that Anastasi requested during discovery under the attorney-client privilege and work product doctrine; and (2) vacated the ICA’s judgment insofar it it concluded that Anastasi failed to show any genuine issue of material fact that Fidelity acted in bad faith. View "Anastasi v. Fidelity Nat’l Title Ins. Co." on Justia Law

Buyers bought a commercial property from Seller. Buyers subsequently filed a complaint against Seller challenging the adequacy of Seller’s disclosures. The circuit court dismissed the action without prejudice to allow the parties to engage in mediation. Because of a dispute between the parties regarding mediation, the mortgage payments were briefly interrupted. Seller subsequently brought a foreclosure action against Buyers. Seller then held a nonjudicial public foreclosure auction at which she purchased the property by submitting the highest bid. After a trial on Buyers’ claims for nondisclosure and misrepresentation, the circuit court ordered judgment in favor of Seller. The court also ordered judgment in favor of Seller and against Buyers on Seller’s counterclaims for breach of the note and mortgage and ejectment. The intermediate court of appeals affirmed. The Supreme Court vacated the judgments of the lower courts, holding (1) Seller’s failure to disclose certain facts regarding the property’s sewer system was actionable under the nondisclosure and misrepresentation causes of action; and (2) Seller’s nonjudicial foreclosure of the property and ejectment of Buyers was wrongful. View "Santiago v. Tanaka" on Justia Law

This case arose from a construction contract dispute between homeowners Ramon Romero and Cassie Romero and contractor Noel Madamba Contracting LLC (Madamba). The case proceeded to arbitration. Arbitrator Patrick K.S.L. Yim issued a partial final arbitration award concluding that Madamba breached the construction contract and that the Romeros were entitled to compensatory damages. Following the issuance of the partial final award, the parties learned that the law firm representing the Romeros throughout the arbitration had been retained by the administrator of Yim’s personal retirement accounts. Madamba moved to vacate the arbitration award based on this previously undisclosed information. The circuit court denied the motion, determining that Yim’s failure to disclose this information did not constitute evident partiality. The Intermediate Court of Appeals affirmed. The Supreme Court vacated the judgments of the lower courts, holding that Yim’s failure to disclose his relationship with the Romeros’ counsel’s law firm constituted evident partiality requiring vacatur of the arbitration award. Remanded with instructions to vacate the arbitration award. View "Noel Madamba Contracting, LLC v. Romero" on Justia Law