Justia Civil Procedure Opinion Summaries

In the Court of Chancery of the State of Delaware, the plaintiffs Dennis Palkon and Herbert Williamson, shareholders of TripAdvisor, Inc. and Liberty TripAdvisor Holdings, Inc., filed a lawsuit against the directors of the companies. The directors had resolved to convert the companies from Delaware corporations into Nevada corporations, a decision approved by controlling stockholder Gregory B. Maffei. The plaintiffs argued that Nevada law offers fewer litigation rights to stockholders and provides greater litigation protections to fiduciaries, alleging that the directors and Maffei approved the conversion to secure these protections for themselves.The defendants moved to dismiss the complaint, arguing that it failed to state a claim on which relief could be granted. The court denied the motion except regarding the plaintiffs' request for injunctive relief. The court held that the conversion constituted a self-interested transaction effectuated by a stockholder controller, and conferred a non-ratable benefit on the stockholder controller and the directors, triggering entire fairness review.The court found it reasonably conceivable that the conversion was not substantively fair, as the stockholders would hold a lesser set of litigation rights after the conversion. It also found it reasonably conceivable that the conversion was not procedurally fair, as the stockholder controller and the board did not implement any procedural protections. The court concluded that the plaintiffs had stated a claim on which relief can be granted. However, the court stated that it would not enjoin the companies from leaving Delaware, as other remedies, including money damages, could be adequate. View "Palkon v. Maffei" on Justia Law

In the case before the Supreme Court of Georgia, Premier Pediatric Providers, LLC was sued by Kennesaw Pediatrics, P.C. for access to its business records. The lower court granted Kennesaw Pediatrics summary judgment, which Premier appealed. Under state law, Premier had 30 days to file the hearing transcript as part of the appeal record, which it failed to do. Months later, Kennesaw Pediatrics moved to dismiss the appeal citing Premier's inexcusable and unreasonable delay in filing the transcript. Premier countered by filing the transcript and explaining that it had mistakenly believed the transcript was filed shortly after the notice of appeal. The trial court found the delay not inexcusable and denied Kennesaw Pediatrics' motion to dismiss. However, the Court of Appeals reversed the trial court's order and dismissed the appeal. The Supreme Court of Georgia granted review to clarify the standard for appellate review of a trial court’s decision whether to dismiss an appeal under state law and to assess whether the Court of Appeals correctly applied the statute.The Supreme Court of Georgia vacated in part and reversed in part the Court of Appeals’ decision. The court held that the Court of Appeals correctly noted that the trial court’s order was subject to review for abuse of discretion. However, the Supreme Court disagreed with the Court of Appeals' conclusion that the trial court abused its discretion in denying Kennesaw Pediatrics’s motion to dismiss the appeal. The Supreme Court also clarified that an appellate court may not dismiss an appeal based on the failure to timely file a transcript. Instead, the statute gives the trial court discretion to decide whether to dismiss an appeal. View "PREMIER PEDIATRIC PROVIDERS, LLC v. KENNESAW PEDIATRICS, P.C." on Justia Law

In this case, Plaintiff-Appellant Lazy S Ranch Properties, LLC (Lazy S) filed a lawsuit against Defendants-Appellees Valero Terminaling and Distribution Company and related entities (collectively, Valero), alleging that Valero's pipeline leaked and caused contamination on Lazy S's property. The United States Court of Appeals for the Tenth Circuit reversed in part and affirmed in part the district court's grant of summary judgment in favor of Valero.Lazy S runs cattle operations on a large property in Oklahoma, beneath which several pipelines transport hydrocarbons. In 2018, a representative of the ranch noticed a diesel fuel odor emanating from a cave near a water source on the property. Samples were taken and tested, and these tests revealed trace amounts of refined petroleum products in soil, surface water, groundwater, spring water, and air on the ranch.Lazy S brought several claims against Valero, including private nuisance, public nuisance, negligence per se, and negligence. The district court granted summary judgment in favor of Valero, holding that Lazy S did not present sufficient evidence to establish a legal injury or causation.On appeal, the Tenth Circuit found that Lazy S had presented sufficient evidence to create a genuine issue of material fact as to legal injury on its claims of private nuisance, public nuisance, and negligence per se. The court noted that Lazy S had presented evidence of a strong odor emanating from a cave near a water source on the property, headaches suffered by individuals due to the odor, and changes in behavior due to the odor. As such, a rational trier of fact could conclude that the odor injured the ranch.The Tenth Circuit also found that Lazy S had presented sufficient evidence to create a genuine issue of material fact as to causation. The court noted that the pipeline was a major source of potential contamination beneath the ranch, that it had leaked in the past, and that a pathway existed for hydrocarbons to travel from the pipeline to the water source.The Tenth Circuit affirmed the district court's grant of summary judgment on Lazy S's claims of constructive fraud and trespass, finding that Lazy S had not presented sufficient evidence to support these claims.The court remanded the case to the district court for trial on the issues of negligence per se, private nuisance, and public nuisance, including Lazy S's claims for damages. View "Lazy S Ranch Properties v. Valero Terminaling and Distribution" on Justia Law

A fatal car crash led to a lawsuit against two Indiana restaurants that had served alcohol to the intoxicated driver responsible for the accident. The estate of the deceased sued the restaurants for negligence, arguing that they should have known the driver was visibly intoxicated and should not have allowed him to drive. The restaurants argued that the Indiana Dram Shop Act, which provides civil liability for establishments that serve alcohol to visibly intoxicated individuals who later cause injuries, eliminated any independent common-law liability. Therefore, they contended that the negligence claim should be dismissed.The Indiana Supreme Court held that the Dram Shop Act did not eliminate common-law liability, but rather modified it. The court ruled that claims against establishments that serve alcohol must still satisfy the requirements of the Dram Shop Act, namely that the server must have actual knowledge of the individual's visible intoxication, and that the individual's intoxication must be a proximate cause of the injury or damage. The court found that the estate's negligence claim met these requirements and therefore, the negligence claim was valid and could proceed. The court affirmed the lower court's decision to deny the restaurants' motion to dismiss the negligence claim. View "WEOC v. Adair" on Justia Law

In this case before the United States Court of Appeals for the Eighth Circuit, Jet Midwest International Co., Ltd. (Jet Midwest International) sought attorneys’ fees and costs from Jet Midwest Group, LLC (JMG) and other defendants (collectively referred to as the Ohadi/Woolley defendants). The request was made in connection with a fraudulent transfer action filed under the Missouri Uniform Fraudulent Transfer Act (MUFTA), following a term loan agreement between Jet Midwest International and JMG which JMG failed to repay. The district court awarded attorneys’ fees and costs against the Ohadi/Woolley defendants, who were not parties to the term loan agreement, based on its finding that they conspired with JMG to violate the MUFTA.On appeal, the Eighth Circuit found that the district court erred in awarding attorneys’ fees and costs against the Ohadi/Woolley defendants based on the term loan agreement since they were not parties to that agreement. However, the court held that the district court's finding of "intentional misconduct" by the Ohadi/Woolley defendants in conspiring with JMG to violate the MUFTA could justify an attorneys’ fees award under the "special circumstances" exception to the American Rule (which generally requires each party to bear its own attorneys’ fees).The court vacated the award and remanded the case back to the district court to calculate a reasonable attorneys’ fee using the lodestar method (multiplying the number of hours reasonably expended by the reasonable hourly rates), and to determine the extent to which the claimed costs are recoverable under the relevant statute. The court's holding did not limit JMG’s ultimate responsibility for attorneys’ fees and costs under the term loan agreement. View "Jet Midwest International Co. v. Ohadi" on Justia Law

In this case before the United States Court of Appeals for the Second Circuit, the plaintiffs were U.S. investors who purchased Mexican government bonds. They alleged that the defendants, Mexican branches of several multinational banks, conspired to fix the prices of the bonds. The defendants sold the bonds to the plaintiffs through non-party broker-dealers. The defendants moved to dismiss the case for lack of personal jurisdiction, and the District Court granted the motion, concluding that it lacked jurisdiction as the alleged misconduct, price-fixing of bonds, occurred solely in Mexico.Upon appeal, the Second Circuit vacated and remanded the case. The court found that the defendants had sufficient minimum contacts with New York as they had solicited and executed bond sales through their agents, the broker-dealers. The plaintiffs' claims arose from or were related to these contacts. The court rejected the defendants' argument that the alleged wrongdoing must occur in the jurisdiction for personal jurisdiction to exist, stating that the defendants' alleged active sales of price-fixed bonds through their agents in New York sufficed to establish personal jurisdiction. The court remanded the case for further proceedings consistent with its opinion. View "In re: Mexican Government Bonds Antitrust Litigation" on Justia Law

In this case, Autumn Wind Lending, LLC (Autumn Wind) had lent money to Insight Terminal Solutions, LLC (Insight) under an agreement that Insight would not incur any further debt without Autumn Wind's consent. However, Insight defaulted on the loan and filed for bankruptcy, during which it was revealed that it had taken on additional debt from other parties, including John J. Siegel and three family enterprises. Autumn Wind, which had become the parent company of Insight, then filed a lawsuit against these parties, alleging fraud and tortious interference. The United States Court of Appeals for the Sixth Circuit was asked to decide whether the doctrine of res judicata, which bars relitigation of a claim that has been adjudicated, prevented Autumn Wind from bringing these claims. The court held that the doctrine of res judicata did not bar Autumn Wind from bringing its claims. The court reasoned that the claims had not been "actually litigated" because they were dismissed by stipulation in the bankruptcy court, not decided on the merits. Furthermore, Autumn Wind could not have litigated these claims in the bankruptcy court because it was not a party to the bankruptcy proceedings. The court therefore reversed the district court's dismissal of Autumn Wind's claims and remanded the case for further proceedings. View "Autumn Wind Lending, LLC v. Siegel" on Justia Law

In a contractual dispute between Blueacorn PPP, LLC and Paynerd LLC, Paynerdier LLC, Matthew Mandell, and Taylor Hendricksen, the Court of Chancery of the State of Delaware denied the defendants' motion to dismiss Blueacorn's complaint for negligent misrepresentation. The defendants argued that there was no equity jurisdiction because there was no fiduciary or special relationship between the parties, and the relationship was governed by commercial contracts negotiated and performed at arms' length. However, Blueacorn claimed that Pay Nerd had a pecuniary duty to provide accurate information which they breached by supplying false information, and Blueacorn suffered a pecuniary loss due to reliance on that false information.The court found that Blueacorn had sufficiently alleged misrepresentation by claiming that the defendants' false statements were made with the intention of inducing a buyer to form a new company to engage in business with the seller. The court also noted that Blueacorn's claim of negligent misrepresentation had been pled with enough particularity as required by Rule 9(b). However, the court also expressed reservations about whether Blueacorn had pled a pecuniary interest strong enough to invoke equity jurisdiction based on negligent misrepresentation, noting that nearly every party involved in a business contract dispute would have a pecuniary interest in the transaction. Despite this, the court decided not to dismiss the claim at this stage, citing the interest of judicial economy. The court left open the possibility of revisiting the motion to dismiss at the conclusion of the trial. View "Blueacorn PPP, LLC v. Pay Nerd LLC" on Justia Law

The case involves an appeal from a wrongful death action brought by Joni Babaletos, the personal representative of her late husband Thomas Babaletos, against Demoulas Super Markets, Inc., Philip Morris USA Inc., and R.J. Reynolds Tobacco Company. Babaletos claimed that the cigarettes produced and sold by the defendants caused her husband's death. She brought claims for breach of warranty in design, negligence in design and marketing, fraud, civil conspiracy, and unfair and deceptive acts and practices in violation of G. L. c. 93A, § 9. The jury found for the defendants on the four claims presented to them, and the trial judge subsequently found no liability with respect to the c. 93A claim.On appeal, Babaletos argued that the trial judge's imposition of time limits for the presentation of evidence forced her to omit essential evidence. The Supreme Judicial Court of Massachusetts held that Babaletos failed to demonstrate either an abuse of discretion by the trial judge or how she was prejudiced by the imposition of time limits. The court noted that the trial judge had repeatedly offered to extend scheduled half days to full days should the need arise during trial, but Babaletos made no such requests as the trial progressed. As such, the court affirmed the trial court's judgment. The court also provided guidance for trial judges who believe that setting time limits for the presentation of evidence would be prudent in a particular case. View "Babaletos v. Demoulas Super Markets, Inc." on Justia Law

In this case, Christopher Mathiesen, the owner of a limited liability company, appealed a court's order dismissing his complaint against Kristi Kellogg, who was alleged to be a co-owner of the company. The court dismissed the complaint after it was consolidated with another case involving the same parties and the same basic underlying facts. The main issue was whether the Nebraska Supreme Court had jurisdiction over Mathiesen's appeal of the order dismissing his complaint. The court found that it did not have jurisdiction because the order was not a final order that decided all the claims between all the parties. Instead, it was an order that only dismissed some of the claims and did so without the required express direction for the entry of judgment and express determination that there was no just reason to delay an appeal. The court also held that when cases are consolidated in Nebraska, they become a single case, and so the order dismissing the complaint did not fully dispose of the entire case. As a result, the court dismissed Mathiesen's appeal for lack of jurisdiction. View "Mathiesen v. Kellogg" on Justia Law