Justia Contracts Opinion Summaries

Plaintiff Bjorn Myklatun and his company, Plaintiff Oil Innovation, brought claims of tortious interference, fraud, and civil conspiracy against Chemical Equipment and Specialties, Inc. (CESI); its parent company, Flotek Industries; Flotek president Todd Sanner; and former Flotek CEO Jerry Dumas. The district court granted partial summary judgment in favor of Defendants on the claim of tortious interference and one of Plaintiffs’ two theories of fraud. A jury entered a verdict in favor of all Defendants on the civil conspiracy claim. The jury also found in favor of Sanner and Dumas on the narrowed claim of fraud, but it found for Plaintiffs on the fraud claim against CESI and Flotek. Plaintiffs appealed, also raising various evidentiary and other challenges relating to their damages on the fraud claim, and they contended the jury’s verdict on the civil conspiracy and fraud claims was facially inconsistent and required a new trial. Because the Tenth Circuit agreed with the district court that Defendants were entitled to judgment as a matter of law, the Court did not address those other arguments. View "Myklatun, et al v. Halliburton Energy Services, et al" on Justia Law

The issue before the Court in this matter concerned interpretation of an errors-and-omissions policy. The policy excluded coverage for claims "arising out of" bankruptcy or insolvency. The dispute grew from a stop-loss policy issued by United Re to a company that had hired Plaintiff-Appellee C.L. Frates as a broker. After the policy was issued, United filed for bankruptcy protection. When Frates learned of the bankruptcy, it learned that United had been sued in Ohio, and filed for bankruptcy to stall the litigation. Ultimately, Frates recommended to its client that it move the stop-loss insurance to another insurer. The client agreed. However, Frates had to reimburse the client for what it lost through higher deductibles. Frates then sued Westchester Fire Insurance Company under its errors-and-omissions policy. In cross-motions for summary judgment, Westchester contended that Frates's claim "arose out of" United's bankruptcy or insolvency. Frates contended that the claim "arose out of" United's deception. The district court agreed with Frates and granted its motion for summary judgment. The Tenth Circuit disagreed with the district court. It held that a reasonable trier of fact could have concluded that Frates's claim arose out of United's bankruptcy or insolvency. Accordingly the Court reversed the award of summary judgment to Frates. View "CL Frates v. Westchester Fire" on Justia Law

The New Mexico Supreme Court recognized a new tort called "malicious abuse of process," which subsumed causes of action for malicious prosecution and abuse of process. Nanodetex Corporation and two of its principals (the Insureds) were successfully sued for malicious abuse of process. They then sought indemnification from Carolina CasualtyInsurance Company, which covered the Insureds under a management liability policy (the Carolina Policy). Carolina denied the claim, relying on an exclusion in the policy for losses arising from claims for "malicious prosecution." It sought a declaratory judgment that it was not liable for the damages arising from the malicious-abuse-of-process judgment. On Carolina's motion for summary judgment, the district court agreed with Carolina and also rejected the Insureds' counterclaims. The Insureds appealed. Upon review, the Tenth Circuit reversed the declaratory judgment, holding that the term "malicious prosecution" in the exclusion does not encompass all claims of malicious abuse of process, but only claims whose elements are essentially those of the common-law cause of action for malicious prosecution. Because the judgment against the Insureds in the tort case was affirmed on appeal on a claim that was not substantially the same as common-law malicious prosecution, the exclusion in the Carolina Policy did not apply. View "Carolina Casualty Insurance v. Nanodetex Corporation, et al" on Justia Law

The issue before the Tenth Circuit in this case centered on a written consumer contract for the sale of goods and whether it incorporated by reference a separate document entitled "Terms of Sale" which was available on the seller's website, but that the contract stated that it was "subject to" the seller's "Terms of Sale" but does not specifically reference the website? Finding no controlling precedent, the Tenth Circuit decided to certify the question to the Oklahoma Supreme Court. View "Walker, et al v. BuildDirect.com Technologie" on Justia Law

A dispute arose between Elm Ridge Exploration Company, LLC, an operator of oil and gas leases in New Mexico, and Fred Engle, who owned a majority of those leases. Elm Ridge sought to recover drilling expenses by foreclosing on Engle's lease interests. Engle counterclaimed, arguing that Elm Ridge had no authority to operate, and broadly that Elm Ridge breached its contractual and fiduciary duties. Engle also filed a third-party complaint against the previous operators, Central Resources, Inc. and Giant Exploration & Production Company. The district court dismissed two counts on Engle's counterclaim against Elm Ridge and the third-party complaint on statute of limitations grounds. After a trial on Engle's remaining counterclaim count (breach of contractual and fiduciary duties), a jury found that Elm Ridge breached the Operating Agreement and could not recover drilling expenses. The jury found that Engle still owed Elm Ridge for other drilling costs. The district court calculated Engle's share of the costs not attributable to the breach, and held Elm Ridge was entitled to a foreclosure order. Both parties appealed. Finding no error in the district court's calculation or ultimate disposition of the case, the Tenth Circuit affirmed. View "Engle v. Elm Ridge Exploration Co." on Justia Law

Defendant-Appellant XTO Energy, Inc. appealed a district court's certification of a class of Kansas royalty owners who sought recovery for its alleged underpayment of royalties. Specifically, the class claimed XTO violated Kansas law by improperly deducting costs for placing gas into a "marketable condition." After careful consideration, the Tenth Circuit concluded that the class did not meet Rule 23(a)'s commonality, typicality and adequacy requirements or Rule 23(b)(3)'s predominance requirement. Furthermore, the Court found the class' argument in favor of certification through collateral or judicial estoppel unavailing. The class certification order was vacated and the matter remanded for further proceedings. View "Wallace B. Roderick Revocable Trust v. XTO Energy" on Justia Law

An Oklahoma City car dealer, Automax Hyundai South, sued its insurance company for refusing to defend it when the dealership was sued by customers. Two aggrieved customers brought claims against Automax relating to car purchases they made. The customers won their cases at the state court. The district court ruled that the insurance company had no duty to defend or indemnify Automax in the underlying lawsuits. Upon review of the district court record and the policy at issue, the Tenth Circuit agreed with Automax and concluded the insurance company had a duty to defend. View "Automax v. Zurich, et al" on Justia Law

Plaintiff-Appellant George Lopez conducted mediations in a program created and managed by the Administrative Office of Courts of the State of Utah. In 2006, he was removed from the panel of mediators that mediated certain domestic matters. Plaintiff brought suit in federal district court alleging that his removal from that list of mediators violated his right to due process and his right to equal protection of the laws in violation of 42 U.S.C. 1983. He also alleged breach of contract, breach of implied contract, and breach of the implied covenant of good faith and fair dealing. Upon review of the district court's grant of summary judgment in favor of defendants, the Tenth Circuit found that because Plaintiff's primary argument was based on his alleged contractual rights as a public employee, and because the Court found that there was no implied contract (because evidence in the record revealed Plaintiff was not a public employee), Plaintiff's arguments necessarily failed. View "Lopez v. Admin Office of the Court" on Justia Law

Defendant-Appellant Lloyds of London Syndicate 2003 ("Lloyds") appealed the district court's denial of its summary judgment motion and subsequent grant of summary judgment in favor of Plaintiff-Appellee Brecek & Young Advisors, Inc. ("BYA") in an action arising out of a professional liability insurance contract. The district court concluded Lloyds failed to pay sufficient indemnity to BYA for claims brought against BYA in an arbitration before the National Association of Securities Dealers. The underlying suit alleged BYA agents mismanaged and unlawfully "churned" the investment accounts of its clients. The court concluded the claims brought in the arbitration did not relate back to earlier claims brought outside the policy period and, therefore, rejected Lloyds' argument coverage was precluded altogether. Additionally, the court rejected BYA's argument that Lloyds was equitably estopped from denying coverage due to its course of conduct in receiving and defending the claims. Upon review, the Tenth Circuit concluded that the district court erred in its interpretation of the law of the case, and therefore abused its discretion in making its judgments in this case. Accordingly, the district court's decisions were reversed and the case remanded for further proceedings. View "Brecek & Young Advisors, Inc. v. Lloyds of London Syndicate 2003" on Justia Law

Defendant-Appellant Indiana Lumbermens Mutual Insurance Company (ILM) appealed the district court's denial of its motion for judgment as a matter of law, or in the alternative, for a new trial following a $2.2 million jury verdict in favor of Plaintiff-Appellee Ryan Development Company, L.C., d/b/a Agriboard Industries (Agriboard). This case arose from a fire that destroyed a Texas manufacturing facility in April 2009. Agriboard, manufactured building panels made of compressed straw. At the time of the fire, Agriboard was insured under a fire and related losses insurance policy issued by ILM with various coverages including lost income. By May 2009, ILM had paid $450,000; Agriboard filed suit and thereafter ILM paid $1.8 million. Agriboard continued to seek recovery under the policy, but ILM refused to pay the amount requested and Agriboard re-filed suit, seeking $2.4 million in unpaid coverages. The trial court denied ILM's motion for judgment as a matter of law, or in the alternative, for a new trial. ILM timely appealed that denial to the Tenth Circuit. Upon review, the Tenth Circuit found no abuse of the trial court's discretion in denying ILM's motion and affirmed the lower court's judgment. View "Ryan Development Co. v. Indiana Lumbermens Mutual Ins. Co." on Justia Law