Justia Civil Procedure Opinion Summaries

The Supreme Court held that when a member of the original panel of the court of appeals leaves the bench the departing judge may be replaced by a new judge on the panel that reconsiders its original decision.In this litigation centering around a soured business relationship between Plaintiff and Defendant the trial court issued a decision appointing a receiver to manage the dissolution of the business and ordering that the business be sold to Plaintiff. The court of appeals reversed and ordered the receiver to entertain offers from all interested bidders. After the case was argued but before the decision issued, Judge Horton announced his impending resignation, which became effective before Defendant filed his application for reconsideration. Judge Frederick Nelson was appointed to fill Judge Horton's seat. Defendant opposed reconsideration, arguing that Judge Nelson should not participate in the reconsideration decision because he did not sit on the original panel. The court of appeals disagreed and entered a new decision affirming the judgment of the trial court. The Supreme Court affirmed, holding that the court of appeals acted within the bounds of the law when Judge Nelson replaced Judge Horton on the panel considering Plaintiff's application for reconsideration. View "Jezerinac v. Dioun" on Justia Law

Plaintiff Graphnet, Inc. and defendant Retarus, Inc. were considered industry competitors -- they each provided, among other things, cloud-based facsimile services. In 2014, Retarus published a brochure containing allegedly defamatory statements about Graphnet. Graphnet representatives received a copy of the brochure at a May 2016 event. In August 2016, Graphnet filed a complaint against Retarus. Throughout discovery, Graphnet failed to produce requested documents and took no depositions. Based on Graphnet’s failure to present supporting evidence, the trial court dismissed all claims except for the defamation and slander claims. The trial court and the parties agreed that the court would charge the jury pursuant to Model Civil Jury Charge 8.46, “Defamation Damages (Private or Public),” which instructed a jury on the elements of defamation. The trial court’s instructions tracked the model charge closely, including Section D, which is devoted to “Nominal Damages for Slander Per Se or Libel.” In this appeal, the issue presented for the New Jersey Supreme Court's consideration was whether a new trial on all damages was required when the jury was improperly instructed on nominal damages and a plaintiff opposes remittitur. Graphnet argued the trial court erred as a matter of law by ordering remittitur without Graphnet’s consent. The Appellate Division affirmed in part, reversed in part, recognizing the jury’s $800,000 nominal damages award was “shockingly excessive and cannot stand” but concluded that the trial court improperly awarded Graphnet $500 in nominal damages in violation of the doctrine of remittitur. The appellate court remanded for a new trial on nominal damages only. As the Appellate Division found, the Supreme Court found remittitur was improper without Graphnet’s consent. But this matter required a new trial on all damages in which the jury was properly instructed on actual and nominal damages. The Supreme Court also referred Model Civil Jury Charge 8.46D to the Committee on Model Civil Jury Charges to be amended. View "Graphnet, Inc. v. Retarus, Inc." on Justia Law

This case involved Google LLC’s application of internet search algorithms, which it used to auction off search terms for profit to advertisers, and the interests of Edible IP, LLC, which sought to exercise control over the profit generated from its trade name and associated goodwill. In 2018, Edible IP brought an action against Google arising from Google’s monetization of the name “Edible Arrangements” without permission in its keyword advertising program. Google moved to dismiss the complaint, or in the alternative, to compel arbitration. The trial court granted the motion, dismissing the complaint on several grounds, including that it failed to state a claim, and alternatively compelling the parties to arbitration. Edible IP appealed that order, and the Georgia Court of Appeals affirmed the dismissal for failure to state a claim. The Georgia Supreme Court granted certiorari to address whether the trial court properly granted Google’s motion to dismiss, and after review, affirmed, finding Edible IP did not state a cognizable claim for relief. View "Edible IP, LLC v. Google, LLC" on Justia Law

Yelp filed suit seeking an injunction under the unfair competition law and the false advertising law to prevent Yelp from touting the accuracy and efficacy of its filter. The trial court excluded Multiversal's principal, James Demetriades, from a portion of the trial and denied Multiversal's motion to compel access to Yelp's source code.The Court of Appeal affirmed, concluding that the trial court was within its discretion to find that although Yelp's source code might be helpful in analyzing the challenged statements, it was not necessary. In this case, Multiversal offers no explanation as to why this data is relevant or would have been used to establish the falsity of the challenged statements. The court also concluded that Multiversal was represented by counsel and afforded the right to have its expert present during the portion of trial from which Demetriades was excluded, accommodations the Supreme Court has deemed sufficient in civil proceedings. Furthermore, the trial court could reasonably have found that excluding Demetriades from a limited portion of the trial while safeguarding Multiversal's right to have other representatives present, measures similar to the protective order entered during discovery, gave Multiversal notice and opportunity for hearing appropriate to the nature of the case. The court stated that due process required no more, and that Multiversal identifies no prejudice resulting from this exclusion. View "Multiversal Enterprises-Mammoth Properties, LLC v. Yelp, Inc." on Justia Law

The Louisiana Supreme Court granted certiorari to consider whether waste tire processors were prohibited from charging waste tire generators a transportation fee above the fees statutorily provided by Louisiana’s waste tire laws. Finding there were no provisions prohibiting such a transportation fee, the Court concluded that Defendants, waste tire processors, were not prohibited from charging Plaintiffs, waste tire generators, a fee for the transportation of waste tires from the waste tire generators’ location to the processing facilities. Therefore, the lower courts’ judgments were reversed. View "Winmill Tire, LLC et al. v. Colt, Inc., et al." on Justia Law

This appeal grew out of a dispute over a program (“The Trial Lawyers College”) to train trial lawyers. The College’s board of directors splintered into two factions, known as the “Spence Group” and the “Sloan Group.” The two groups sued each other: The Spence Group sued in state court for dissolution of the College and a declaratory judgment recognizing the Spence Group’s control of the Board; the Sloan Group then sued in federal court, claiming trademark infringement under the Lanham Act. Both groups sought relief in the federal case. The federal district court decided both requests in favor of the Sloan Group: The court denied the Spence Group’s request for a stay and granted the Sloan Group’s request for a preliminary injunction. The Spence Group appealed both rulings. The Tenth Circuit Court of Appeals determined it lacked jurisdiction to review the district court’s denial of a stay. After the Spence Group appealed the federal district court’s ruling, the state court resolved the dispute over Board control. So this part of the requested stay became moot. The remainder of the federal district court’s ruling on a stay did not constitute a reviewable final order. The Court determined it had jurisdiction to review the grant of a preliminary injunction. In granting the preliminary injunction, the district court found irreparable injury, restricting what the Spence Group could say about its own training program and ordering removal of sculptures bearing the College’s logo. The Spence Group challenged the finding of irreparable harm, the scope of the preliminary injunction, and the consideration of additional evidence after the evidentiary hearing. In the Tenth Circuit's view, the district court had the discretion to consider the new evidence and grant a preliminary injunction. "But the court went too far by requiring the Spence Group to remove the sculptures." View "Trial Lawyers College v. Gerry Spences Trial Lawyers, et al." on Justia Law

On the evening of May 21, 2014, Denise Garrison went to Target in Anderson, South Carolina with her eight-year-old daughter. Before entering the store, however, Denise retrieved her coupon book from her car, placed it on the hood, and proceeded to examine it. Looking up from the book, her daughter appeared with what looked like a hypodermic needle in her hand. Denise instinctively swatted the syringe out of her daughter's hand. However, in the swatting process, the syringe punctured the palm of her hand. Denise informed Target's store manager, who apologized for what happened. Denise believed the manager assured her that her medical bills would be paid, testifying that the manager said "bring us the bill." Despite Denise's belief that Target would cover her medical costs, Target refused to do so. The case proceeded to a jury trial, in which Target was found negligent, and awarded Denise $100,000 in compensatory damages and $4.51 million in punitive damages. The jury also awarded Clint $3,500 for lost wages and $5,000 for loss of consortium. The South Carolina Supreme Court granted review to determine whether the court of appeals erred in: (1) affirming the trial court's denial of Target's motion for JNOV as to liability based on a theory of constructive notice; (2) holding the statutory cap on punitive damages was an affirmative defense; (3) instructing the trial court to consider on remand the potential harm caused by Target's conduct in evaluating the constitutionality of the amount of punitive damages; and (4) refusing to award interest on punitive damages under Rule 68, SCRCP. The Supreme Court determined the evidence was sufficient for the jury to find Target had constructive notice of the syringe in its parking lot and failed to discover and remove it in the exercise of due care. In addition, Court held the statutory cap on punitive damages pursuant was not required to be pled by the defendant as an affirmative defense in order to apply. The court of appeals properly instructed the trial court to consider on remand the potential harm caused by Target's conduct in evaluating the constitutionality of the amount of the Garrisons' punitive damages award. Lastly, the Supreme Court held Denise was entitled to eight percent interest on the entirety of her damages award, including punitive damages, pursuant to Rule 68, SCRCP. View "Garrison v. Target Corporation" on Justia Law

An explosion at the Omega Protein Plant in Moss Point, Mississippi killed one man and seriously injured several others. Multiple lawsuits were filed against Omega in federal district court. Colony Insurance Company filed a declaratory judgment action in state circuit court seeking a declaration that it did not cover bodily injuries arising out of the Moss Point facility explosion. Evanston Insurance Company intervened also seeking a declaration of no coverage for the same injuries: Evanston provided a $5 million excess liability policy, which provided coverage after Colony’s $1 million policy was exhausted. Because Colony settled one of the underlying personal injury cases for $1 million (the limits under its policy), Omega sought excess coverage from Evanston for the injuries that occurred at its plant. A special master was appointed, and the trial court granted Evanston’s motion for summary judgment, finding that the pollution exclusion in the insurance contract barred coverage. Omega appealed that grant of summary judgment. The Mississippi Supreme Court found that a pollution exclusion in the insurance contract was ambiguous, and should have been construed in favor of the insured, allowing coverage. Further, the Court found the question of whether coverage was triggered was governed by the language of the contract, and that Evanston failed to prove there could be no coverage under the excess liability policy. Therefore, the Supreme Court reversed the trial court’s grant of summary judgment as to all issues and remanded the case for further proceedings. View "Omega Protein, Inc. v. Evanston Insurance Company" on Justia Law

The issue this case presented for the Washington Supreme Court's review was whether the penalty for intentionally concealing the source of political contributions could be based on the amount concealed. Washington voters proposed and passed Washington’s Fair Campaign Practices Act (FCPA or act), ch. 42.17A RCW. The FCPA compels disclosure and “compelled disclosure may encroach on First Amendment rights by infringing on the privacy of association and belief.” In 2012, California voters were presented with Proposition 37, which would have required some manufacturers to disclose whether packaged food contained genetically modified organisms (GMO). The Grocery Manufacturer’s Association (GMA) and many of its member companies successfully campaigned against Proposition 37, and some received negative responses from the public for doing so. In the wake of the Proposition 37 campaign, Washington sponsors filed Initiative 522, which also would have required GMO labels on packaged food. And like Proposition 37, GMA opposed it. GMA raised more than $14 million to oppose GMO labeling efforts. GMA in turn contributed $11 million to the “No on 522” campaign from the Defense of Brands strategic account. Despite its political activities in Washington, GMA did not register as a political committee with the Public Disclosure Commission (PDC) and did not make any PDC reports until after this lawsuit was filed. In response to the suit, GMA registered “under duress” but, as of the time of trial, still had not filed all of the required reports. The State sued, contending that GMA intentionally, flagrantly, and repeatedly violated the FCPA. The trial court specifically rejected testimony from GMA officers that they had not intended to violate the law, finding “it is not credible that GMA executives believed that shielding GMA’s members as the true source of contributions to GMA’s Defense of Brands Account was legal.” A majority of the Washington Supreme Court concluded GMA did not show that the trial court erred in imposing a punitive sanction under the FCPA based on the amount intentionally concealed. The Court thus affirmed the courts below and remanded for any further proceedings necessary. View "Washington v. Grocery Mfrs. Ass'n" on Justia Law

Ken Rogers and Costas Pavlou entered into an agreement for Rogers to potentially purchase a concession stand from Pavlou. The concession business, costas Place, would operate at the Mississippi State Fair, The agreement required Rogers to pay Pavlou $35,000 “on or before October 25, 2009.” If that condition was satisfied, Pavlou would give Rogers the option to purchase Costas Place for an additional $35,000 payment “on or before two weeks after the last day of the Mississippi State Fair in the year 2011.” Rogers failed to pay the first $35,000 by the deadline; he first made a payment of $30,225 on November 23, 2009, which Pavlou accepted. Then, from 2009 to 2011, Pavlou paid Rogers an equal share of the net income from Costas Place per the agreement. Nevertheless, all that remained was for Rogers to provide the final $35,000 payment in 2011, but the deadline passed. Rogers contended Pavlou waived the 2011 deadline. Rogers claimed that during his divorce proceeding, Pavlou represented to Rogers that he would extend the deadline for the option to purchase the business until after the divorce proceedings ended. Pavlou countered that, pursuant to the contract, Rogers’s option to purchase the business lapsed when he failed to pay the remaining $35,000. Rogers sued Pavlou asserting breach of contract. Including his claims of waiver, Rogers insisted that Pavlou gave reassurances that he would accept that second installment of $35,000 after Rogers’s divorce was final. The case proceeded to trial, but, in the meantime, Pavlou died, and his estate was substituted as party-defendant. After discovery and litigation but before trial, Pavlou’s estate filed two pretrial motions, a motion to take judicial notice of prior testimony and a motion to exclude parol evidence. Pertinent here, the estate sought to introduce Rogers' testimony at his divorce proceeding; Pavlou’s counsel asked the trial judge to “take judicial notice that he testified [the joint venture agreement] was void, that he swore to the Chancery Court it was void.” On the motion to exclude parole evidence, Pavlou’s counsel argued the 2009 agreement “very specifically and expressly said that modifications had to be in writing, that there would be no verbal alterations to the contract.” The trial court granted Pavlou's motion for a directed verdict, finding Rogers failed to present competent proof that Pavlou waived the payment deadline. Finding no reversible error, the Mississippi Supreme Court affirmed the circuit court's judgment. View "Rogers v. Estate of Pavlou" on Justia Law