Justia Contracts Opinion Summaries

The Village of Piketon and Boone Coleman Construction, Inc. entered into a contract for construction of a public road. The contract contained a liquidated damages provision specifying that Boone Coleman would pay $700 to Piketon for each day after the specified completion date that the contract was not substantially completed. Boone Coleman did not complete the project until well over a year after the parties’ extended completion date. Boone Coleman sued Piketon alleging that Piketon had failed to pay $147,477 of the contract price for the construction. Piketon filed a counterclaim seeking liquidated damages. The trial court awarded Piketon $277,900 in liquidated damages. The appellate court reversed, holding that the resulting amount of liquidated damages was so unreasonable as to constitute a penalty. The Supreme Court vacated the judgment of the court of appeals, holding that the court erred in its use of a retrospective analysis to reach its conclusion and in failing to focus on the per diem nature of the liquidated damages. Remanded for consideration of the enforceability of the liquidated damages provision in light of this opinion. View "Piketon v. Boone Coleman Constr., Inc." on Justia Law

Affordable filed suit alleging breach of contract when Fannie Mae penalized Affordable for prepaying its loan after it was forced to sell its Jefferson Arms Apartments property to avoid condemnation. The district court found in favor of Fannie Mae. The court concluded that substantial evidence supports the district court's findings that the city's letter threatening condemnation did not cause the seller to sell Jefferson Arms because he had already intended to sell the property before receiving it. Moreover, the district court's findings were not based on an erroneous view of the law. In this case, the district court determined that the seller was not credible and the sequence of events leading to the sale of the property suggests that he did not actually fear condemnation and had requested the city letter merely to gain a tax advantage. The court also concluded that the district court did not err in determining that the voluntary payment doctrine prevents Affordable from recovering on its breach of contract claim. Accordingly, the court affirmed the judgment. View "Affordable Communities of MO v. Federal Nat'l Mortgage Ass'n" on Justia Law

After Sloan’s Cove, LLC executed a power of sale foreclosure on Armand Vachon’s property, Vachon and Oceanic Inn, Inc. (collectively, Oceanic) filed suit claiming that Sloan’s Cove improperly conducted the sale. The trial court (1) dismissed Oceanic’s claims for breach of fiduciary duty and negligent infliction of emotional distress, and (2) granted summary judgment against Oceanic on its claims for breach of contract and accounting and in favor of Sloan’s Cove on its counterclaim seeking a declaration that its foreclosure by sale of the Oceanic Inn property was legal and effective. The Supreme Judicial Court affirmed as amended, holding that the trial court did not err in its judgment, but that the judgment must be amended to correct a clerical error. View "Oceanic Inn, Inc. v. Sloan's Cove, LLC" on Justia Law

In 2012, a private equity firm purchased a trucking company now owned by Buyer through a merger transaction. Plaintiff initiated this action as the representative of the selling securityholders (Securityholders) to recover a preclosing tax refund. Buyer, in response, asserted several counterclaims. Securityholders sought to dismiss Buyer’s counterclaims. The Court of Chancery (1) denied Securityholders’ motion to dismiss Buyer’s common law fraud claim insofar as that claim asserted fraud based on extra-contractual statements made to Buyer before it entered the merger agreement, as Buyer was not prevented from asserting a claim for fraud based on representations outside the four corners of the merger agreement; (2) granted Securityholders’ motion to dismiss Buyer’s claim under the Delaware Securities Act and Buyer’s claim of unilateral mistake, as these claims failed to state a claim for relief; and (3) granted Plaintiff’s motion for summary judgment concerning the tax refund claim, as Buyer had no defense to Plaintiff’s motion. View "FdG Logistics LLC v. A&R Logistics Holdings, Inc." on Justia Law

The predecessors of Plaintiff and Defendants entered into a right-of-way agreement that created an express easement for the benefit of property owned by Plaintiff over a driveway located on the property owned by Defendants. Plaintiff commenced this action asserting a quiet title claim and a claim seeking an injunction restoring Plaintiff’s rights under the agreement. Defendants raised special defenses, asserting that Plaintiff’s property had been used for purposes other than “professional offices or residential uses” in violation of the terms of the agreement. The trial court entered judgment for Defendants, concluding that the easement was in effect until Plaintiff’s property was used by a mortgage brokerage, a home health-care agency, and an appliance delivery coordination service, which tenancies terminated the agreement. The Appellate Court affirmed. The Supreme Court reversed, holding (1) the Appellate Court improperly concluded that the term “professional offices,” as used in the agreement, was plain an unambiguous; and (2) using the broader definition of the term “professional” indicates that the agreement did not preclude offices of the type that had been previously operated out of Plaintiff’s property. Remanded. View "NPC Offices, LLC v. Kowaleski" on Justia Law

The adult children and heirs of songwriter Terry Gilkyson, a member of the band The Easy Riders, filed suit against Disney, alleging that Disney had breached its contractual obligation to pay royalties in connection with the licensing or other disposition of the mechanical reproduction rights to Gilkyson’s songs. The trial court dismissed the lawsuit after sustaining Disney’s demurrer to the first amended complaint without leave to amend, ruling the Gilkyson heirs’ causes of action were barred by the applicable statutes of limitations. The court concluded that the trial court erred in sustaining the demurrer pursuant to the statute-of-limitations bar where the continuous doctrine applies to plaintiffs' contract claims. In this case, Disney’s obligation to pay royalties based on its licensing or other disposition of the mechanical reproduction rights to Gilkyson’s songs was unquestionably a continuing one. While portions of the Gilkyson heirs’ contract claim are undoubtedly time-barred, the action is timely as to those breaches occurring within the four-year limitations period preceding the filing of the original lawsuit. Accordingly, the court reversed and remanded with directions. View "Gilkyson v. Disney Enter." on Justia Law

In appeal no. 1140870, Southern Cleaning Service, Inc. ("SCSI"), appealed the grant of summary judgment in favor of Essex Insurance Company and Genesee General Agency, Inc. on SCSI's claims stemming from Essex's refusal to provide SCSI coverage under a commercial general-liability policy ("the Essex policy") based on the alleged failure to timely notify Essex of the facts leading to the claim for coverage. In appeal no. 1140918, the insurance defendants cross-appeal the trial court's denial of their requests for costs. In August 2006, Winn-Dixie Montgomery, LLC ("Winn-Dixie"), entered into a contract with SCSI that obligated SCSI to provide floor-care and general janitorial services to multiple Winn-Dixie grocery stores in central Alabama. In 2011, a store customer allegedly slipped and fell on a wet floor, and sued. Winn-Dixie sought indemnification from SCSI. SCSI sought indemnification from Phase II, one of its cleaning subcontractors. Phase II, SCSI, and Winn-Dixie again asked Essex to provide them with a defense and indemnity under the terms of the Essex policy; however, their requests were denied. With regard to appeal no. 1140870, the Supreme Court concluded that the summary judgment entered in favor of the insurance defendants should have been reversed because there was a genuine issue of material fact as to who among the insurance defendants acted under the doctrine of apparent authority to settle the Winn Dixie customer's slip and fall claim. The Court pretermitted all discussion of the other grounds for reversal SCSI offered. Because the insurance defendants would have been entitled to the costs they seek in appeal no. 1140918 only if there was a final judgment in their favor, that appeal was dismissed as moot. View "Essex Insurance Co. v. Southern Cleaning Service, Inc." on Justia Law

Hoover General Contractors – Homewood, Inc. ("HGCH"), appealed a circuit court order denying its motion to compel arbitration of its dispute with Gary Key regarding work performed by HGCH on Key's house in Jasper after that house was damaged by a fire. Six months after Key sued HGCH asserting claims stemming from HGCH's work rebuilding Key's house after a fire, HGCH moved the trial court to compel Key to arbitrate those claims pursuant to an arbitration clause in the contract Key had entered into with HGCH. The trial court denied HGCH's motion to compel; however, that denial was error because Key failed to establish through substantial evidence that HGCH had waived its right to arbitration by substantially invoking the litigation process. Accordingly, the order entered by the trial court denying HGCH's motion to compel arbitration was reversed by the Supreme Court and the case remanded for the trial court to enter a new order compelling Key to arbitrate his claims ursuant to the terms of his contract with HGCH. View "Hoover General Contractors - Homewood, Inc. v. Key" on Justia Law

Defendant was a general contractor that builds “spec” houses (houses built without pre-existing construction contracts in anticipation of eventual sale to the public). On May 30, 2000, defendant and plaintiff entered into a purchase and sale agreement for a house. Although most of the construction had been completed, the agreement specified that defendant would make changes to the interior of the house. Specifically, defendant agreed to upgrade some of the flooring, install an air conditioning unit, and install a gas dryer in the laundry room. After defendant made those changes and the parties conducted a walk-through inspection, the sale closed on July 12, 2000. The primary question in this construction defect case was which of two statutes of repose applied when a buyer enters into a purchase and sale agreement to buy an existing home. Although each statute provided for a 10-year period of repose, the two periods of repose ran from different dates. One runs from “the date of the act or omission complained of;” the other ran from the date that construction is “substantial[ly] complet[e].” In this case, the trial court found that plaintiff filed her action more than 10 years after “the date of the act or omission complained of” but less than 10 years after the construction was “substantial[ly] complet[e].” The trial court ruled that the first statute, ORS 12.115(1), applied and accordingly entered judgment in defendant’s favor. The Court of Appeals affirmed. After review of the parties' arguments on appeal, the Supreme Court found no reversible error in the Court of Appeals' decision and affirmed. View "Shell v. Schollander Companies, Inc." on Justia Law

After a jury-waived trial, the trial justice entered judgment in favor of Defendant on Plaintiff’s breach of contract claim. The justice also entered judgment in favor of Defendant on his counterclaim for conversion. Plaintiff appealed the adverse rulings and also appealed the denial of her post-trial motion for relief from the superior court judgment, which motion invoked Rule 60(b) of the Superior Court Rules of Civil Procedure. The Supreme Court affirmed the judgment of the superior court, holding that the trial justice did not err in (1) determining that there was no contract; (2) finding in Defendant’s favor on his conversion counterclaim; and (3) dismissing Plaintiff’s Rule 60(b) motion. View "Turdo v. Main" on Justia Law