Justia Contracts Opinion Summaries

Articles Posted in Wyoming Supreme Court
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In 2001, Appellant moved into Decedent’s home at Decedent’s request, where he lived and cared for Decedent until Decedent’s death in 2010. After Decedent’s death, Appellant filed a creditor’s claim against Decedent’s estate, seeking compensation for the care and services he provided. Defendants, the co-administrators of the estate, denied Appellant’s claim. Appellant subsequently brought an action against Defendants. The district court granted summary judgment to the estate. The Supreme Court affirmed, holding that the district court did not err in finding no question of material fact existed and that Appellant failed as a matter of law on his claims for implied-in-fact contract, promissory estoppel, and unjust enrichment. View "Symons v. Heaton" on Justia Law

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After entering a construction contract with Appellants, Appellee filed a breach of contract and unjust enrichment action against Appellants. Appellants counterclaimed for breach of contract. The Supreme Court (1) affirmed the district court's judgment against Appellants with respect to Appellee's claims under the Prime Contract Change Order (PCCO) Nos. 1 and 2; (2) reversed the district court's order dismissing Appellee's claims relating to PCCO Nos. 3 and 4; and (3) affirmed the district court's dismissal of Appellants' counterclaims. Following remand, the district court (1) granted Appellee's motion to dismiss its remaining claims; and (2) dismissed all counterclaims of Appellants, declaring them to be moot. Appellants appealed, contending that the district court erred in dismissing their counterclaims and denying their request for costs and attorney's fees. The Supreme Court affirmed, holding that they district court did not abuse its discretion by (1) dismissing Appellant's counterclaims, as Appellee's dismissal of its claims rendered any contractual defense to the claims moot; and (2) declining to award costs and attorneys fees to Appellants, as Appellants could not be correctly classified as the prevailing party. View "Sterrett Props., LLC v. Big-D Signature Corp." on Justia Law

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Gary Hopkins and Randal Burnett formed a LLC and financed the project with a small business administration (SBA) loan. Bank 1 loaned the remainder of the total project costs. Hopkins secured the SBA portion of the loan with third mortgages on his rental properties. Bank 2 subsequently acquired Bank 1. After Burnett bought Hopkins' membership in the LLC, Bank 2 released Hopkins from his loan. However, an agreement entered into by the parties did not mention the third mortgages on the property held by SBA. Burnett subsequently defaulted on his loan obligations, and Bank foreclosed on the mortgage covering the business property. Because Hopkins' third mortgages on his rental properties were not released by SBA, Hopkins was forced to continue to make the payments on the SBA loan. Hopkins and his wife (Plaintiffs) sued Bank 2, Burnett, and the LLC, arguing that, pursuant to the agreement, Bank 2 was supposed to remove Hopkins' liability and the mortgages held on his property. The district court granted summary judgment for Bank 2. The Supreme Court affirmed, holding that the terms of the contract between the parties were unambiguous, extrinsic evidence was not required to discern the parties' intent, and Bank 2 had abided by the terms of the contract. View "Hopkins v. Bank of the West" on Justia Law

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Appellants purchased property that was subject to a Master Plan that restricted the use and development of the property. Appellants obtained title insurance from Insurer, but the policy did not mention the Master Plan. Appellants only later learned of the Master Plan when they were informed they were in violation of the Master Plan and faced substantial penalties if they failed to comply with the Plan. Appellants sued Insurer, claiming a breach of the terms of the title insurance policy, negligence, and bad faith. The district court granted summary judgment in favor of Insurer on all claims brought in Appellants' complaint. The Supreme Court affirmed, holding that the district court did not err in entering judgment in favor of Insurer. View "Sonnett v. First Am. Title Ins. Co." on Justia Law

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Appellant sued his former employer (Employer) in district court, alleging claims for fraud and wrongful termination. Employer, however, had been sold to a foreign corporation (Corporation), which was not a resident of Wyoming. Corporation filed a motion to dismiss the case for improper venue and failure to state a claim upon which relief could be granted. The district court granted the motion on both grounds. The Supreme Court (1) affirmed the district court's dismissal for improper venue; but (2) vacated the district court's dismissal for failure to state a claim, holding that the court erred as a matter of law when it reached the merits of the case after determining that it had to be dismissed on venue grounds. Remanded for a dismissal without prejudice based upon improper venue. View "Bourke v. Grey Wolf Drilling Co., LP" on Justia Law

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Jerry Herling Construction, Inc. (JHCI) contracted with Plaintiff for rental and service of earthmoving equipment but defaulted on the payments due under the contract. Plaintiff sued Jerry Herling, JHCI's CEO, seeking to enforce personal guaranties of JHCI's performance. Herling, in turn, argued that he was released from his guaranties because of an assignment of JHCI's retainage account and a settlement between other parties. The trial court granted summary judgment to Plaintiff, concluding that Plaintiff was entitled to judgment against Herling on his guaranties as a matter of law, and entered judgment against Herling in the amount of $1,383,473 based on his guaranties. The Supreme Court reversed, holding that there were genuine issues of material fact as to whether Herling was entitled to credit for the $500,000 settlement. Remanded. View "Herling v. Wyo. Machinery Co." on Justia Law

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Plaintiffs owned property that was conveyed by warranty deed to J.A. Reed. In 1968, Reed conveyed the property to Julianne Biggane, and in 2006, the Biggane Trust transferred the property to Plaintiffs. Prior to Reed's transfer of the property to Biggane, a pole line easement across the property was granted to PacifiCorp's predecessor in interest. Reed, however, signed the easement grant as president of Continental Live Stock Company, rather than in his personal capacity, at a time that the company had no interest in the underlying land. Therefore, the easement was a "wild deed." At issue before the Supreme Court was whether a "wild deed" can be the "root of title" under the Wyoming Marketable Title Act. This case arose when Plaintiffs filed an action seeking to have the easement declared invalid because it emanated from a wild deed. The district court held that the Act validated PacifiCorp's easement across Plaintiffs' property. The Supreme Court affirmed, holding that a wild deed may constitute the root of title under the Act, and a wild deed serving as a root of title that does not bear a defect "on its face" is not an "inherent defect" in the chain of record title under the Act. View "Esterholdt v. PacifiCorp" on Justia Law

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Western Wyoming Construction Company (WWC) submitted a bid for a highway project in Sublette County. The Board of County Commissioners of Sublette County (Commissioners) awarded the contract to another resident contractor whose bid was higher than WWC's. WWC filed a complaint in district court for an order awarding it the contract for the project. The district court granted summary judgment in favor of the Commissioners. At issue on appeal was whether Wyo. Stat. 16-6-102(a) required the Commissioners to award the contract to the responsible certified Wyoming resident making the lowest bid. The Supreme Court reversed, holding (1) section 16-6-102 has no application in the context of two resident contractors; and (2) because no evidence was presented showing where the funds came from to pay for the project, (i) there could be no finding as to what statutory provision, if any, was applicable, and (ii) a judicial determination as to the appropriateness of the bid award was not possible. Remanded. View "W. Wyo. Constr. Co., Inc. v. Bd. of County Comm'rs" on Justia Law

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In 2005, the Department of Environmental Quality (DEQ) hired Plaintiff. In 2007, the DEQ terminated Plaintiff on the ground that he improperly incurred $2,500 in personal charges on a state-issued cell phone. Plaintiff challenged his termination, claiming the ground was pretext, and the Office of Administrative Hearings reinstated Plaintiff to his original position. The DEQ sought review of that position in district court and made an offer to settle, to which Plaintiff did not respond. The DEQ subsequently notified Plaintiff it was accepting his resignation because he had taken a job in Montana. The DEQ then withdrew its petition for review. In 2009, Plaintiff filed suit in federal district court, claiming the DEQ's failure to comply with the conditions of his proffered resignation constituted wrongful termination. The federal court dismissed the lawsuit. Plaintiff then filed suit in district court, alleging, inter alia, breach of contract and breach of the purported settlement agreement. The district court dismissed the case, ruling that Plaintiff's claims were time-barred. The Supreme Court dismissed Plaintiff's appeal for failure to follow the Wyoming Rules of Appellate Procedure. View "Armstrong v. Wyo. Dep't of Envtl. Quality" on Justia Law

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The Thornhocks filed an action against the Esterholdts and others seeking to quiet title to certain lands in Lincoln County. The district court granted summary judgment to the Thornocks as to some of the land but denied summary judgment as to a certain strip of property. After a bench trial, the district court quieted title in the disputed strip of land in the Esterholdts. The Supreme Court affirmed, holding (1) an appurtenant easement was not created by a deed that granted, in addition to tracts of fee title land, also that "right of way to be used in connection with said land"; and (2) an appurtenant easement was not created by a deed that granted a "right-of-way" described as the land now in question. View "Thornock v. Esterholdt" on Justia Law