Justia Contracts Opinion Summaries

Articles Posted in Supreme Court of Missouri
by
The Supreme Court reversed the judgment of the circuit court dismissing Petitioner's petition seeking relief from fraudulent transfers Respondent made to hinder collection of her judgments against him, holding that Petitioner adequately alleged facts that, if true, entitled her to relief under the Uniform Fraudulent Transfers Act (UFTA), Mo. Rev. Stat. 428.005 to 428.059.On appeal, Petitioner argued that she alleged facts that, if taken as true, demonstrated that she was Respondent's creditor and that he made two transfers with the actual intent to hinder, delay, or defraud her and, regarding one of the transfers, without receiving an equivalent value in exchange and either was insolvent or became insolvent as a result of the transfer. The Supreme Court agreed and remanded the case, holding that Petitioner adequately pleaded a claim for relief under both Mo. Rev. Stat. 428.024.1(1) and Mo. Rev. Stat. 928.029.1. View "Konopasek v. Konopasek" on Justia Law

by
The Supreme Court reversed the judgment of the circuit court awarding $8 million in punitive damages against the board of trustees (the board) of the petroleum storage tank insurance fund (the fund) on the City of Harrisonville's claim of fraud and ordering post-judgment interest to accrue from the date it entered judgment, holding that that the city's claim of fraud against the board was barred by sovereign immunity.When it was not paid funds to which it claimed it was entitled, the city sued the fund, asserting claims for negligent misrepresentation. In 2011, a jury returned a verdict for the city. The Supreme Court reversed only the award of punitive damages against the fund. On remand, the city filed a second amended petition that, for the first time, named the board as a defendant. Relying on the jury verdict from 2011, the circuit court entered judgment against the board for $8 million in punitive damages. The Supreme Court reversed, holding that the circuit court misapplied the law in entering judgment against the board because the board was a state agency entitled to sovereign immunity. View "City of Harrisonville v. Bd. of Trustees of MO Petroleum Storage Tank Insurance Fund" on Justia Law

by
The Supreme Court vacated the order of the circuit court entering summary judgment in favor of Alexis Still in this dispute over whether there was a settlement agreement between the parties, holding that there was no settlement agreement between the parties.Clifton Jameson and Still were involved in an automobile accident. Jameson sent MetLife, Still's insurer, an offer to settle. MetLife made a counteroffer. Jameson took the counteroffer as a rejection of his offer to settle and sued Still for damages arising from the accident. MetLife then attempted to accept Jameson's original settlement offer. The circuit court granted summary judgment for Still, concluding that MetLife's counteroffer did not terminate the settlement offer and that its subsequent letter of acceptance created a settlement agreement between the two parties. The Supreme Court vacated the judgment, holding that that the circuit court erred in granting summary judgment on the basis of settlement because no settlement agreement was reached. View "Jameson v. Still" on Justia Law

by
The Supreme Court vacated the judgment of the circuit court reversing the decision of the Board of Education of the Jefferson City Public School District to terminate Tammy Ferry's contract with the District, holding that the Board had the authority to terminate the contract.The Board decided to terminate Ferry's contract after she transferred confidential student information from the District's Google for Education account to her personal Google account. The circuit court vacated the Board's decision, finding that Ferry had not "disclosed" confidential student information, as that term is defined in the Family Educational Rights and Privacy Act of 1974 (FERA), 20 U.S.C. 1232g. The Supreme Court vacated the circuit court's judgment, holding (1) the Board's findings that Ferry violated the Board's policies and procedure and did so willfully were supported by competent and substantial evidence; and (2) the Teacher Tenure Act authorized the Board to terminate Ferry's indefinite contract with the District. View "Ferry v. Board of Education of Jefferson City Public School District" on Justia Law

by
The Supreme Court affirmed in part and reversed in part the decision of the administrative hearing commission (AHC) finding no use tax liability for APLUX LLC and Paul and Ann Lux Associates L.P. on the out-of-state purchase of two aircraft, holding that APLUX was not entitled to resale exemption on the purchase of either aircraft.After purchase, both aircraft - referred to as "the TBM" and "the Excel" - were brought to Missouri. APLUX asserted that it leased, on a non-exclusive basis, the TBM to its parent company, Luxco, Inc., and the Excel concurrently to both Luxco and Aero Charter, Inc. The AHC held that each lease agreement constituted a "sale" for purposes of the tax resale exemption set out in Mo. Rev. Stat. 144.018. The Supreme Court reversed in part, holding that a "sale" to Luxco did not occur, and therefore, APLUX was not entitled to a resale exemption based on the Luxco agreement. View "APLUX, LLC v. Director of Revenue" on Justia Law

by
The Supreme Court made permanent its preliminary writ of prohibition prohibiting the circuit court from ordering certain defendants to be joined as necessary parties, holding that Mo. R. Civ. P. 52.04(a) did not mandate that the added defendants be joined.After deficiencies in the construction of an independent senior living facility (the Project) were discovered, Plaintiff brought contract and tort claims against the architect, the structural engineer, the construction company, the framer, and the supplier, alleging construction defects. The masonry company hired to perform brick masonry work was not included as a defendant. Certain defendants moved to add the masonry company, arguing that the company must be added pursuant to Rule 52.04. The circuit court ordered the masonry company be joined. Plaintiff filed a petition for a writ of prohibition seeking to direct the circuit court to dismiss and remove the masonry company. The court of appeals denied the petition. The Supreme Court granted the petition, holding that the masonry company was not a "necessary" defendant, and therefore, the circuit court did not have the authority to require joinder. View "State ex rel. Woodco, Inc. v. Honorable Jennifer Phillips" on Justia Law

by
The Supreme Court affirmed the order of the circuit court overruling Dollar Tree's motion to compel arbitration and stay proceedings on a former employee's claim of disability discrimination, holding that the order was supported by substantial evidence, was not against the weight of the evidence, and correctly applied the law.After Plaintiff, Dollar Tree's former employee, brought this complaint Dollar Tree filed a motion to compel arbitration and stay proceedings under an arbitration agreement in the employment contract. The parties, however, disputed whether there was assent to the arbitration agreement. The circuit court denied the motion to compel arbitration after hearing testimony but did not make any findings. The Supreme Court affirmed, holding that there was no clear and unmistakable evidence of the existence of assent to a delegation provision, and therefore, the circuit court could not delegate the matter to an arbitrator whose existence depended upon the agreement. View "Theroff v. Dollar Tree Stores, Inc." on Justia Law

by
The Supreme Court quashed this Court's preliminary writ of prohibition, holding that the issuance of the writ of prohibition sought by Key Insurance Company directing the circuit court to dismiss claims filed against it by Josiah Wright and Phillip Nash for lack of jurisdiction would be inappropriate.After arbitration, Wright filed a lawsuit against Key and Nash seeking to collect insurance proceed's from Nash's child's insurance policy. Nash filed a cross-claim against Key alleging that Key breached its contractual duty to defend him. Key filed a motion to dismiss the claims for lack of jurisdiction. The circuit court overruled the motion. Key then sought a writ of prohibition from the Supreme Court. The Court issued a preliminary writ of prohibition, which it then quashed, holding that where there had been no showing that the circuit court’s usurpation of jurisdiction was "clearly evident" and Nash adequately pleaded facts in his cross-claim that established personal jurisdiction, the issuance of a writ of prohibition would be inappropriate. View "State ex rel. Key Insurance Co. v. Honorable Marco A. Roldan" on Justia Law

by
The Supreme Court reversed the judgment of the circuit court holding the City of Kansas City in civil contempt of a 1976 modified judgment, holding that the parties could not bring a contempt action to enforce the 1976 modified judgment because they were not parties to the litigation and the 1976 plaintiffs were not certified as a class.Sophian Plaza Association and a class of similarly situated plaintiffs brought claims of breach of injunction, breach of contract, specific performance, and civil contempt stemming from the City's termination of a trash rebate program. The court certified a class and then entered judgment in favor of the class on its claims. The court of appeals affirmed. The Supreme Court reversed, holding that the class could not avail itself of enforcement proceedings brought upon the 1976 modified judgment because they were not parties to the litigation nor were the 1976 plaintiffs certified as a class under Mo. R. Civ. p. 52.08. View "Sophian Plaza Ass'n v. City of Kansas City, Missouri" on Justia Law

by
The Supreme Court affirmed the judgment of the circuit court overruling Seneca Specialty Insurance Company's motions to intervene and to set aside judgment in a lawsuit filed by Dr. Neil Desai and Heta Desai against Garcia Empire, LLC after the Desais and Garcia Empire entered into a contract pursuant to Mo. Rev. Stat. 537.065, holding that the requirements of the amended statute did not apply to the contract entered into by the Desais and Garcia Empire.In 2017, the legislature repealed the statute and enacted an amended section 537.065, which continued to permit the same contracts as provided in the 2016 statute but included additional requirements that an insurer be provided written notice and the opportunity to intervene. The amendment became effective after the case was tried but prior to the circuit court's entry of judgment. Seneca argued that it was denied additional rights provided for in the amendment and, as a result, the circuit court erred in entering judgment. The Supreme Court affirmed, holding that because the Desais and Garcia Empire entered into the contract prior to the effective date of the amended statute, the circuit court did not err in overruling Seneca's motions to intervene and to set aside judgment. View "Desai v. Seneca Specialty Insurance Co." on Justia Law