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PetroChina Canada bought ten large heat-exchanger units from Kelvion’s Oklahoma plant for use in PetroChina’s oil and gas operations. Their contract included a mandatory forum-selection clause subjecting the parties to Canadian jurisdiction. After a dispute over unanticipated delivery costs that PetroChina refused to pay, Kelvion brought suit in Oklahoma. It asserted quantum meruit and unjust enrichment claims, arguing the forum-selection clause did not apply to its equitable claims. The district court disagreed, concluding the forum-selection clause applied, and dismissed the suit under the doctrine of forum non conveniens. Finding no error in judgment, the Tenth Circuit affirmed the district court’s dismissal for forum non conveniens. View "Kelvion, Inc. v. PetroChina Canada Ltd." on Justia Law

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The issue this case presented for the Alabama Supreme Court’s review was who had the power to determine the location of an arbitration proceeding: an arbitrator or Circuit Court. The Court concluded that, under the facts of this case, the arbitrator had that power; thus, reversed and remanded. View "Alliance Investment Company, LLC v. Omni Construction Company, Inc., a/k/a OCC, Inc" on Justia Law

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In this case involving a contract to purchase a business-management software system, the Supreme Court held that contractual disclaimers barred Buyer from recovering in tort for misrepresentations Seller made both to induce Buyer to enter into the contract and to induce Buyer later to agree to amend the contract but that Seller’s breach of contract caused Buyer to suffer damages. Buyer sued Seller for, inter alia, common law fraud, fraudulent inducement, and breach of contract. The jury found Seller liable on all claims. The jury awarded damages for fraudulent inducement and common law fraud but awarded zero damages for breach of contract. The court of appeals affirmed liability for fraudulent inducement but reversed the fraud award, concluding that the claim was based on the same misrepresentations as the fraudulent-inducement claim. The Supreme Court affirmed in part and reversed in part, holding (1) Buyer could not recover from recover for fraudulent inducement or common law fraud because Buyer expressly disclaimed any reliance on Seller’s misrepresentations; and (2) Buyer was entitled to a new trial on its claim for breach of contract because the evidence conclusively established that Buyer suffered some amount of damages as a result of Seller’s breach. View "International Business Machines Corp. v. Lufkin Industries, Inc." on Justia Law

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In this interlocutory appeal from an order denying a city’s plea to the jurisdiction and alternative motion for summary judgment, the Supreme Court reversed the judgment of the court of appeals and rendered judgment sustaining the city’s jurisdictional plea, holding that Tex. Loc. Gov’t Code 271.152, which waives a city’s immunity from suit on certain contracts, did not apply to the underlying claims. Section 271.152 provides that a governmental entity that is authorized to contract and that enters into a contract waives its immunity to suit for purposes of adjudicating a claim under the contract. In the instant case, Plaintiffs, employees of the City of Denton, sued the City for breach of contract, alleging that the City’s policies and procedures manual (the policy) constituted a unilateral contract that the City breached. The trial court denied the City’s jurisdictional plea. The court of appeals affirmed, ruling that the policy created a unilateral contract that certain employees could enforce under the statutory waiver. The Supreme Court reversed, holding that the policy did not create an enforceable, written contract, a requirement for governmental to be waived under section 271.152. View "City of Denton v. Rushing" on Justia Law

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In this breach of contract case, the Supreme Court held that the waiver of governmental immunity for certain claims provided by the Local Government Contract Claims Act (Act), Tex. Loc. Gov’t Code 271.151-.160, at the time this case arose applies when the remedy sought is specific performance rather than money damages. The Hays Street Bridge Restoration Group sued the City of Antonio alleging that the City failed to comply with a memorandum of understanding (MOU) between the parties with respect to certain property. For its breach of contract claim, the Restoration Group sought only specific performance. The trial court rendered judgment in favor of the Restoration Group. The court of appeals reversed, ruling that the City was immune from suit and that the Act did not waive the City’s immunity from suit for specific performance of a contract. The Supreme Court reversed, holding (1) the City acted in its government capacity when it entered the MOU and, therefore, enjoyed immunity from suit “in the first instance”; but (2) the Act waived the City’s immunity from suit on the Restoration Group’s claim for specific performance. View "Hays Street Bridge Restoration Group v. City of San Antonio" on Justia Law

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The Supreme Court affirmed the decision of the district court granting summary judgment in favor of Greater Omaha Packing Company, Inc. (GOP) as to Meyer Natural Foods LLC’s breach of contract action following a purported E. coli contamination of beef owned by Meyer and processed by GOP, holding that although the district court incorrectly applied the Uniform Commercial Code (UCC) in regard to Meyer’s acceptance of adulterated meat under the parties’ processing agreement, the court nevertheless arrived at the correct result. Under the agreement, GOP would slaughter Meyer’s cattle, process the beef, and fabricate the beef into various beef productions. After testing resulted in a very high percentage of presumptive positive findings for E. coli, Meyer filed suit against GOP. The district court granted summary judgment for GOP. The Supreme Court affirmed, holding that the court erred in finding that Meyer had accepted the contaminated beef under the agreement or under the UCC, but the court’s ultimate conclusion was correct, as Meyer failed to adhere to the terms to properly reject products under the agreement. View "Meyer Natural Foods v. Greater Omaha Packing Co." on Justia Law

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The Subletting and Subcontracting Fair Practices Act governs public works projects, requires a prime contractor to obtain the awarding authority's consent before replacing a subcontractor listed in the original bid (Pub. Contract Code 4107(a)), and limits the awarding authority’s ability to consent. If the original subcontractor objects to being replaced, the awarding authority must hold a hearing. San Francisco entered a contract with prime contractor Ghilotti for a major renovation of Haight Street. Consistent with its accepted bid, Ghilotti entered a contract with subcontractor Synergy for excavation and utilities work. After Synergy broke five gas lines and engaged in other unsafe behavior, the city invoked a provision of its contract with Ghilotti to direct Ghilotti to remove Synergy and substitute a new subcontractor. Under protest, Ghilotti terminated Synergy and identified two potential replacement contractors. Synergy objected. A hearing officer determined that Synergy’s poor performance established a statutory ground for substitution. Synergy and Ghilotti argued that the hearing officer lacked jurisdiction because Ghilotti had not made a “request” for substitution. The trial court agreed. The court of appeal reversed. Although the statute contemplates that the prime contractor will normally be the party to seek substitution, the procedure followed here “complied in substance with every reasonable objective of the statute.” View "Synergy Project Management, Inc. v. City and County of San Francisco" on Justia Law

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Kreg, a medical-supply company, contracted with VitalGo, maker of the Total Lift Bed®, for exclusive distribution rights in several markets. A year and a half later, the arrangement soured. VitalGo told Kreg that it had not made the minimum‐purchase commitments required by the contract for Kreg to keep its exclusivity. Kreg thought VitalGo was wrong on the facts and the contract’s requirements. The district court ruled, on summary‐judgment that VitalGo breached the agreement. The damages issue went to a bench trial, despite a last-minute request from VitalGo to have it dismissed on pleading grounds. The court ordered VitalGo to pay Kreg about $1,000,000 in lost‐asset damages and prejudgment interest. The Seventh Circuit affirmed, upholding the district court’s rulings that the agreement allowed Kreg to make minimum-purchase commitments orally; that the minimum‐purchase commitment for the original territories was made in December 2010; that VitalGo breached the agreement by terminating exclusivity in June 2011 and by failing to deliver beds in September 2011; and concerning the foreseeability of damages. View "Kreg Therapeutics, Inc. v. VitalGo, Inc." on Justia Law

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Plaintiff, a provider of short term loans to automobile dealers, who still retained the title certificates for the vehicles and believed it had a perfected security interest, filed suit against defendant for the amounts that plaintiff should have been paid by the dealerships (i.e., the loan amounts due) upon the sale of the subject vehicles. The Court of Appeal held that the trial court prejudicially erred by finding in defendant's favor, because the circumstances of this case were sufficiently close and/or analogous to those in Quartz of Southern California, Inc. v. Mullen Bros., Inc. (2007) 151 Cal.App.4th 901, to warrant its application here. The court explained that, here, as in Quartz, plaintiff was in rightful possession of the title certificates to the vehicles that were sold by the dealerships to consumers under conditional sales contracts; the dealerships went out of business without paying what was owed to plaintiff concerning said vehicles; and defendant as finance lender took assignment of the conditional sales contracts without requiring production of the title certificates or ascertaining who held title and how much was owed to obtain it. The court reversed and remanded to the trial court to determine the precise amount of money defendant must pay plaintiff for the title certificates to the vehicles in question, after which a new judgment shall be entered in favor of plaintiff. View "Ron Miller Enterprises, Inc. v. Lobel Financial Corp." on Justia Law

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The First Circuit affirmed the decision of the district court granting Defendant’s motion to dismiss this putative class action in favor of arbitration of Plaintiff’s claim in his individual capacity after concluding that the parties had a valid and enforceable agreement to arbitrate, holding that the arbitration clause was enforceable because it was conscionable under Massachusetts law. Plaintiff drove for Lyft, Inc., the defendant. Plaintiff tapped “I accept” on his iPhone when presented with Lyft’s terms of service agreement, which contained a provision requiring that disputes between the parties be resolved by arbitration. In this putative class action Plaintiff alleged that Lyft misclassified its Massachusetts drivers as independent contractors under the Massachusetts Wage Act. Left removed the case to federal court and moved to dismiss in favor of individual arbitration. The district court granted the motion. The First Circuit affirmed, holding (1) Plaintiff waived his contract-formation argument; and (2) the arbitration clause was not substantively unconscionable and was thus enforceable. View "Bekele v. Lyft, Inc." on Justia Law