Justia Contracts Opinion Summaries

Plaintiff was hired as a nurse by defendant in October 2006, had to take leave for cancer treatment, then was informed that she had been terminated on December 12, 2006 because she did not have "any accrued PTO time or FMLA." The district court dismissed claims under the Americans with Disabilities Act, finding that plaintiff assented to a valid agreement to arbitrate the claims. The Sixth Circuit reversed. The employee handbook stated: "Dispute Resolution Process Please refer to the Eby Companies Dispute Resolution Procedure (DRP) for details." That policy does refer to arbitration and contains a signature line. Plaintiff claims she did not receive or sign the policy and defendant did not provide a signed acknowledgment. There was no indication that plaintiff was notified of the existence of the arbitration agreement, much less that she manifested an intent to agree to its terms.

Appellant Foreign Academic & Cultural Exchange Services, Inc. (FACES) instituted this action against Respondent Daniela Tripon for breach of contract, breach of the duty of loyalty, and injunctive relief. FACES recruits teachers from outside the United States and places them with schools within the state pursuant to the Mutual Educational and Cultural Exchange Program. Respondent, a Romanian citizen, contracted with FACES to participate in its program, and entered the United States on a J-1 visa. Pursuant to the "foreign residency requirement" of the J-1 visa, respondent was required to return to her home country and remain there for at least two years following departure from the United States. After Respondent had taught for two years, she and FACES entered into a revised agreement for the term of an additional school year. The new contract also increased respondent's salary and contained an acknowledgement that respondent would return home for two years after the contract expired. Shortly after executing the new contract, respondent married a former FACES teacher, and was granted a waiver of the J-1 foreign residency requirement, allowing her to remain in the United States. Subsequently, Respondent accepted a full-time position with another school district and received an H-1B visa allowing her to remain in the United States after the expiration of her J-1 visa. Following respondent's failure to return to Romania as contracted, FACES instituted this action. The circuit court granted summary judgment in favor of Respondent as to all of FACES' claims. Upon review, the Supreme Court reversed the circuit court's order granting summary judgment, finding there were material questions of fact whether respondent breached the revised contract by not returning to her home country and accepting another job, whether FACES suffered any actual as opposed to liquidated damages, and whether respondent breached the duty of loyalty implied in every employment contract.

Appellant Stivers Automotive of Lexington, Inc. (Stivers) and Respondent South Carolina Federal Credit Union (SCFCU) were parties to a Dealer Agreement (Agreement), under which SCFCU agreed to purchase sales contracts between Stivers and purchasers of its vehicles. Among other provisions in the Agreement, Stivers warranted certain representations made in connection to its sales contracts assigned to SCFCU. Hiram Riley (Riley) sought to purchase a vehicle from Stivers but was unable to qualify for financing. Stivers' salesman, Tom Roper (Roper), indicated that Riley could get the car if he found a co-signer. Riley contacted his sister, Mildred Higgins (Higgins), who agreed to co-sign for the car. Roper then visited Higgins at her home to sign the appropriate paperwork. After Roper thoroughly explained the documents, Higgins indicated she understood and signed the paperwork. As it turned out, the paperwork was drafted so that Higgins was the sole purchaser of the car, not a co-signer. Ultimately, SCFCU approved the loan to Higgins for the purchase price. Riley picked up the vehicle, with the understanding that he was to make the payments. Riley eventually stopped making payments on the car, stopped driving it, and told SCFCU where it could recover the car. SCFCU hired an agent to repossess the vehicle. SCFCU filed a complaint against Higgins, given that her name was on the loan. Higgins denied the allegations in the complaint, stating that she was incompetent at the time of the execution of the contract. Subsequently, SCFCU amended its complaint, alleging Stivers breached the Agreement. The trial court granted SCFCU's motion for a directed verdict against Stivers, finding Higgins lacked capacity to contract and Stivers breached the Agreement in that regard. The court also held that Stivers breached all contract warranties. Upon review, the Supreme Court found that the trial court erred by directing a verdict against Stivers on the issue of capacity. Additionally, the Court held that the trial court erred in granting a directed verdict to SCFCU as to the other warranties contained in the contract, as well as the amount of damages due SCFCU.

Faye Gilmer sued Crestview Memorial Funeral Home, Inc. ("Crestview"), Garland Jones, Barry Taul, and Mary Caldwell, alleging claims related to services Crestview had provided with regard to the funeral of Mrs. Gilmer's husband. The trial court entered a summary judgment in favor of the defendants on all the claims against them. Mrs. Gilmer appealed, and the Supreme Court: (1) affirmed the trial court's judgment as to the claims against Jones, (2) affirmed the negligent-supervision claim against Jones and Crestview, and (3) affirmed the negligent- or wanton-conduct claim against all the defendants. The Court reversed the trial court's judgment as to the tort-of-outrage, suppression, and breach-of-contract claims against Crestview, Taul, and Caldwell. The case was then remanded the case for further proceedings. Taul and Caldwell were eventually dismissed from the action. The trial court granted Mrs. Gilmer's motion for a judgment as a matter of law ("JML") on the breach-of-contract claim. The suppression and tort-of-outrage claims were submitted to the jury, which returned a verdict in Crestview's favor on the tort-of-outrage claim and in Gilmer's favor on the suppression claim. Crestview appealed the trial court's judgment as to the breach-of-contract and suppression claims, as well as the compensatory-damages and punitive-damages awards. Upon re-review, the Supreme Court reversed the trial court's judgment and remand the case for a new trial on the breach-of-contract and suppression claims: "Crestview presented substantial evidence creating a question of fact requiring resolution by the jury as to the materiality of the alleged breach of the contract, the trial court erred in entering a JML in favor of Gilmer with regard to that claim." Moreover, the Court was unable to determine from the lump-sum award of compensatory damages what damages were assessed with regard to the suppression claim and the breach-of-contract claim, respectively: "[t]herefore, we must reverse the trial court's judgment as to both claims and remand the case for a new trial on the suppression and breach-of-contract claims."

This case involved a contract dispute between 3-D & Co. and Tewâs Excavating, Inc. The dispute was over the terms of a construction contract for two roads in the Scenic View Subdivision of the Matanuska-Susitna Borough. 3-D & Co. raised twelve issues on appeal, which in sum, contended that the superior court applied the wrong legal standards and arrived at the wrong factual conclusions regarding the terms of the contract. The Supreme Court took each of 3-D's issues in turn and affirmed the superior court's decisions in all respects.

At issue in this case were coverage limits associated with underinsured motorist (UIM) insurance and whether coverage provided under disputed insurance policies complies with the requirements of Alaska insurance statutes. The Respondent families hold UIM policies. They alleged they suffered emotional distress and loss of consortium as a result of a collision that killed one familyâs child and severely injured the other familyâs child. The insurer accepted that the policyholders incurred damages. However, it contended that the families exhausted the coverage limits available to them under the UIM policies because the family members seeking damages were not âinâ the fatal collision. The superior court concluded that the families had not exhausted their UIM coverage under Alaska insurance statutes and reformed the insurance policies to allow the emotional distress claims to proceed to arbitration. The superior court dismissed the familiesâ loss of consortium claims as outside the coverage of the policies. Because the Supreme Court concluded that the families exhausted the coverage limits available under their policies and that these policies were consistent with statutory requirements, the Court reversed the superior courtâs decision to reform the policies. Because coverage limits are exhausted, the Court declined to consider whether loss of consortium was covered under the policies.

Plaintiff Blanca Gonzalez, and Monserate Diaz purchased a home as tenants in common. Diaz borrowed the downpayment from Cityscape Mortgage Corporation (Cityscape) and executed a note. Plaintiff did not sign the note. Plaintiff and Diaz secured that loan by mortgaging their home to Cityscape. Over time, Plaintiff fell behind on the payments and U.S. Bank obtained a foreclosure judgment. The trial court ordered that the home be sold to satisfy the judgment. Before the sheriffâs sale, Plaintiff entered into a written agreement with Defendant Wilshire Credit Corporation (Wilshire), U.S. Bankâs servicing agent. Plaintiff was represented by a Legal Services attorney who helped negotiate the agreement. Plaintiff missed four payments to Wilshire. A scheduled sheriffâs sale was cancelled when the parties entered into a second agreement. Plaintiff was contacted and dealt with directly; neither Wilshire nor U.S. Bank notified the Legal Services attorney. Although Plaintiff had not missed a single payment required by the second agreement, instead of dismissing the foreclosure action as promised, Wilshire sent a letter to Plaintiff noting that the second agreement was about to expire and that a new agreement needed to be negotiated to avoid foreclosure. Plaintiff contacted the Legal Services attorney. When the attorney questioned Wilshire, it could not explain how it had come to the arrears amount set in the second agreement, or why Plaintiff was not deemed current on the loan. Plaintiff filed a complaint alleging that Wilshire and U.S. Bank engaged in deceptive and unconscionable practices in violation of the CFA. The trial court granted summary judgment in favor of Wilshire and U.S. Bank, finding that the CFA did not apply to post-judgment settlement agreements entered into to stave off a foreclosure sale. The Appellate Division reversed and reinstated plaintiffâs CFA claim. Upon review, the Supreme Court held that the post-foreclosure-judgment agreements in this case constituted stand-alone extensions of credit. In fashioning and collecting on such a loan, a lender or its servicing agent cannot use unconscionable practices in violation of the CFA.

In 2002, Defendants decided to purchase, renovate, and resell a home located in Medford Lakes. According to their plan, Defendants Christopher Masso and John Torrence would finance the purchase; Defendant James Githens would perform the renovations; and Defendant real estate agent Jennifer Lynch would serve as the listing agent. Plaintiff Debra Lombardi viewed the home and made an offer. The sales contract, which was signed by Masso and Torrence, indicated that the house was being sold to Lombardi âas isâ and that any guarantees, unless set in writing, would be void. However, handwritten into the contract was a notation to âsee construction addendum attached.â That addendum reflected at least seventy repairs and renovations. At the closing, the house was nowhere near completion. Masso agreed to place money in escrow to ensure completion of the renovations. The escrow was to be held until which time the renovations would be completed. Against her realtorâs advice, Lombardi went ahead with the closing. Thereafter, the house remained unfinished and Plaintiff filed suit. The trial court granted summary judgment to the Defendants, finding that Lombardi accepted the property âas is,â Defendants did not breach the contract, Defendants could not be held liable under the Consumer Fraud Act, and they made no misrepresentations. Later the trial judge would write a letter to the parties, including the dismissed defendants, informing them that he was going to reconsider his order granting summary judgment and was scheduling a new hearing on the issue. The judge ultimately vacated the grant of summary judgment in favor of Defendants. The Appellate Division granted defendantsâ motion for leave to appeal, remanded to the trial court for further findings of fact and conclusions of law, and ultimately reversed the trial court. The Supreme Court concluded after its review that the Appellate Division correctly determined that the trial courtâs original summary judgment order dismissing several of the defendants was issued in error, the trial judge was well within his discretion in revisiting and vacating the summary judgment order.

The heirs of a composer, who died in 2003, sued a music publisher and a performance rights society, with which the composer had contracted in 1995 with respect to four songs. The defendants failed to supply royalty reports as required by the contracts. The district court award the maximum statutory damages for the copyright infringements pursuant to 17 U.S.C. 504(c)(1). The First Circuit affirmed, rejecting many of the defendants' arguments as not properly raised and, therefore, waived.

These consolidated cases arose out of a 2007 labor dispute between the Painters Union and Nevada contractors over whether the Union's card check established its majority status under the terms of the collective bargaining agreement (CBA), thereby requiring the contractors to bargain with the Union pursuant to Section 9(a) of the National Labor Relations Act (NLRA), 29 U.S.C. 151 et seq. One set of cases arose from the Union's charges before the NLRB that the contractors failed to bargain in good faith during the following card check. The other case arose from the district court, where the Union sought an order to arbitrate whether the card check established the Union's majority status under the terms of the CBA. In the petitions for review from the NLRB's decision, the court enforced the NLRB's order, and denied the Union's and Flooring Solutions' petitions for review. In the appeal from the district court, the court held that the dispute over whether the Union established majority status pursuant to the CBA's card check provision was primarily contractual and subject to arbitration. Therefore, the court withdrew its prior decision and replaced it with this opinion reversing the district court's order denying arbitration. The court remanded for the district court to order all parties to arbitrate whether, under the CBA's card check provision, the Union established majority status.