Justia Contracts Opinion Summaries

In 1997, Defendants formed a Vermont corporation called Green Mountain Park, Inc. to reconstruct, revive, and operate a defunct horseracing facility in the Town of Pownal, Vermont. Plaintiff agreed to invest $350,000 in the enterprise. Plaintiff subsequently became a member of the board of directors along with Defendants. A few years later, the project was abandoned due to issues surrounding Green Mountain’s ability to obtain a racetrack license. Defendants filed a complaint against Plaintiff in 2002, and Plaintiff counterclaimed for breach of fiduciary duty, fraud, and breach of contract. Defendants’ complaint was subsequently dismissed, and the case proceeded to trial on Plaintiff’s counterclaims. After a bench trial, the superior court entered judgment for Defendants on all counts. The Supreme Court affirmed, holding that the trial justice did not err in his factual findings and conclusions of law. View "Wilby v. Savoie" on Justia Law

In 1986, the City of Duluth and the Fond du Lac Band of Lake Superior Chippewa (the Band) entered into several agreements establishing a joint venture to operate gaming activities in Duluth. The agreements required that the Band seek approval before creating any additional Indian Country. In 1994, the Band and the City created a series of new agreements and amendments to the 1986 agreements. In 2010, the Band acquired a plot of land. The Band sought to have the plot placed in trust but did not seek the City’s approval to do so, as required by the 1986 agreements. The City commenced this action in state district court seeking a court order requiring the Band to withdraw its trust application. The district court dismissed the lawsuit, concluding that it lacked subject matter jurisdiction because the Band had only consented to suit in federal court in the 1994 agreements. The court of appeals reversed. The Supreme Court reversed the court of appeals’ decision and reinstated the district court’s judgment for the Band, holding that the Court lacked jurisdiction to decide the issue of whether the Band breached the 1986 agreements because it required interpretation of the 1994 agreements, which was a matter vested in the federal courts. View "City of Duluth v. Fond du Lac Band of Lake Superior Chippewa" on Justia Law

Evan Ardente’s yacht was insured by Standard Fire Insurance Company. After Ardente purchased the yacht, it stopped navigating properly, and its top speed had decreased due to water damage to the yacht’s hull. Specifically, water was seeping into balsa wood, which is not waterproof, around installation holes and spreading throughout the hull. Ardente presented a claim to Standard Fire. Standard Fire denied coverage on the ground that the claim fell within an exclusion for manufacturing defects. Ardente sued Standard Fire for breach of contract, among other claims. The district court granted summary judgment for Standard Fire on all claims except for the breach of contract allegation. On that claim, the court granted Ardente summary judgment with respect to liability, concluding that the damage fell within an exception to the exclusion for manufacturing defects. The First Circuit Court of Appeals reversed the district court’s order granting Ardente summary judgment on his breach of contract claim, holding that the damage to the yacht did not fall within the exception to the manufacture-defect exclusion, and therefore, Standard Fire was entitled to summary judgment on the breach of contract claim. View "Ardente v. Standard Fire Ins. Co." on Justia Law

Plaintiff filed suit alleging that he was the owner of certain fractional work interests in four Ritchie County mining partnerships. The court certified the following question to the Supreme Court of Appeals of West Virginia: Whether the proponent of his own working interest in a mineral lease may prove his entitlement thereto and enforce his rights thereunder by demonstrating his inclusion within a mining partnership or partnership in mining, without resort to proof that the lease interest has been conveyed to him by deed or will or otherwise in strict conformance with the Statute of Frauds. View "Valentine v. Sugar Rock, Inc." on Justia Law

In anticipation of the opening of the University of South Carolina's new basketball arena, the University of South Carolina and the University of South Carolina Gamecock Club distributed a brochure to high-level Gamecock Club members. The brochure offered the opportunity to purchase premium seating including a number of amenities for basketball games and other events held at the arena. The brochure offered members the opportunity to purchase these tickets over a "five year term." Members were to pay $5,000 per seat in the first year and $1,500 per seat each year in years two through five. Appellants claimed that Athletic Department employees promised Appellants that, after year five, they would only have to maintain their Gamecock Club membership and pay the face value of season tickets to retain these premium seats. Appellants accepted the University's offer and made the required payments for years one through five. After the fifth year, the University contacted Appellants and requested a $1,500 payment per seat for the sixth year of premium seating. Appellants brought an action against the University alleging breach of contract and seeking specific performance. After discovery, the parties filed cross motions for summary judgment. The trial judge denied Appellants' motion and granted the University's motion, finding that due to the absence of a written contract the statute of frauds barred Appellants' claims. The Supreme Court concluded the statute of frauds applied in the first instance, but that a question of fact existed concerning the question of equitable estoppel, rendering summary judgment inappropriate. View "Springob v. University of South Carolina " on Justia Law

Bilt Rite Construction and Landscaping, LLC (Bilt Rite) opened a credit account with Larson Lumber Company (Larson) in 2003. Bilt Rite did not make the required payments, and as of 2006, when Bilt Rite had ceased operations, it owed approximately $14,000. That same year, Bilt Rite transferred real property it had purchased to Anita Bartz, who had loaned Rankin or Bilt Rite $45,000. In 2007, Casey Rankin, a partner in Bilt Rite, signed a contract agreeing to pay Larson Bilt Rite’s debt. In 2009 and 2010, Larson Lumber Company (Larson) filed suit against Bilt Rite, Rankin, and Bartz, among others. The district court entered judgment in favor of Larson, holding (1) Rankin and Bilt Rite breached a written contract with Larson; and (2) the transfer of the real property from Bilt Rite to Bartz was fraudulent. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) did not err by denying summary judgment to Defendants; (2) did not err by holding that Rankin and Bilt Rite were jointly and severally liable to Larson; (3) erred by holding that the Bartz loan was made to Rankin personally; and (4) erred by holding that the transfer of the real property to Bartz was a fraudulent transfer. View "Larson Lumber Co. v. Bilt Rite Constr. & Landscaping LLC" on Justia Law

Plaintiffs-appellees Jackie and Marcia Ellison, along with Richard M. Healy, P.C., Jayne Jarnigan Robertson, P.C., and Michael J. Blascheke, P.C., sued defendants-appellants, Michael D. Campbell and M.D. Campbell & Associates, L.P., for breach of contract. Plaintiffs alleged that Campbell failed to render a defensible expert opinion in underlying litigation in Canadian County, and subsequently abandoned the task for which he was hired. Campbell counterclaimed for "uncompensated professional services." A jury returned a verdict in plaintiffs' favor. Based on the jury's verdict, the trial court entered judgment for the plaintiffs for $408,748.68, plus statutory interest. Campbell filed a motion for new trial or, in the alternative, a motion for judgment notwithstanding the verdict. After hearing argument, the trial court overruled the motions and Campbell appealed. The Court of Civil Appeals reversed, finding that the breach of contract cause of action failed because plaintiffs did not prove their case by presenting an expert witness. Upon review, the Supreme Court found that in this case the expert witness indicted his own performance in the underlying matter: "Supporting testimony made it clear that Campbell did not produce a document which accurately represented the state of the groundwater underlying the Ellisons' property or the source of its pollution. Any lay person could consider the testimony presented and conclude that the Ellisons did not receive the services for which they contracted. The expert witness's testimony was such that any reasonable juror might question his candidness." Under these unique facts, it was unnecessary for plaintiffs to rely upon expert testimony to prevail in their breach of contract claim. View "Ellison v. Campbell" on Justia Law

When Frances O'Neill arranged for her mother, Elise Hopkins, to become a resident of Manahawkin Convalescent Center, she decided to pay Manahawkin's bills from Hopkins' Social Security benefits, rather than arranging for those benefits to be directly paid to the facility. When her mother was admitted to the nursing home, O'Neill signed a "Rehabilitation and Nursing Home Admission Agreement" which designated O'Neill as the "Responsible Party" for purposes of processing her mother's bills, and set forth remedies in case of a default of that obligation. Following Hopkins' death, Manahawkin demanded in writing that O'Neill pay a balance due on her mother's account. It ultimately filed a collection action against her. In a counterclaim, O'Neill asserted various causes of action, including claims based on the Nursing Home Act (NHA), the Consumer Fraud Act (CFA) and the Truth-in-Consumer Contract, Warranty, and Notice Act (TCCWNA). After the parties stipulated to the dismissal of the collection action, O'Neill reasserted her NHA, CFA and TCCWNA claims and sought class certification, which the trial court denied. The trial court granted summary judgment dismissing O'Neill's claims and construing the Admission Agreement to impose no obligation on O'Neill to devote her personal funds to her mother's care. The trial court therefore deemed the Admission Agreement to conform to the NHA, and dismissed O'Neill's remaining claims. The Appellate Division affirmed. Upon review, the Supreme Court held that the Admission Agreement met the requirements of the NHA, and that Manahawkin accordingly committed no unlawful act within the meaning of the CFA. Because Manahawkin's Admission Agreement imposed no requirements on O'Neill that contravened the NHA, and neither the Admission Agreement nor Manahawkin's collection complaint gave rise to a cause of action under the CFA or the TCCWNA, dismissal of O'Neill's claims was proper. "However, nursing homes and their counsel should ensure that each party's rights and remedies are clearly reflected in contracts and communications between facilities and individuals who arrange payment on a resident's behalf." View "Manahawkin Convalescent v. O'Neill" on Justia Law

Petitioners entered into a written agreement with Bastian Homes and Lion Enterprises, Inc. (collectively, “Bastian Homes”) for the construction of a new home. The agreement contained an arbitration clause. After a water leak allegedly substantially damaged major portions of the partially-constructed home, Petitioners sued Bastian Homes. Bastian Homes filed a motion to dismiss the complaint, arguing that the arbitration clause in the construction contract required the matter to be submitted to arbitration. Petitioners opposed the motion to dismiss, contending that the arbitration clause in this case was not bargained for and was therefore invalid. The circuit court granted the motion to dismiss. The Supreme Court affirmed in part and reversed in part, holding (1) because the construction contract was properly formed and supported by sufficient consideration, there was no requirement that the arbitration clause be independently “bargained for”; and (2) because the circuit court decided the arbitration clause not unconscionable without the issue being fairly argued by the parties and without any factual development, this issue needed to be remanded for further development of the record. View "Kirby v. Lion Enters., Inc." on Justia Law

On July 28, 2012, Michael Becker was injured when a Ford truck driven by his son, Phillip Becker, struck a light pole. Michael and his wife filed suit against Ford Motor Company. On August 26, 2013, Ford filed an answer claiming that the accident was caused by a person other than Ford. On October 1, 2013, the Beckers filed a motion to join Phillip as a party to whom fault could be apportioned and a motion to file an amended complaint. At issue before the Supreme Court was whether, after a defendant asserts a comparative fault claim against a non-party tortfeasor who was known to the plaintiff when the original suit was filed, Tenn. Code Ann. 20-1-119 permits the plaintiff to amend its complaint to assert a claim directly against the tortfeasor named by the defendant. The Court held (1) application of section 20-1-119 is not restricted to tortfeasors who were unknown to the plaintiff when its original complaint was filed; and (2) therefore, the statute permits a plaintiff to file an amended complaint against the tortfeasor named by the defendant within ninety days after the filing of the answer in which the defendant first asserts a comparative fault claim against the tortfeasor. View "Becker v. Ford Motor Co." on Justia Law