Justia Civil Procedure Opinion Summaries

A tornado struck Goodhue County, Minnesota, damaging the roof of a mall owned by Rymer Companies, LLC. The roof had preexisting water damage, and the dispute centered on whether the insurance company, Cincinnati Insurance Company, was liable only for the tornado-related damage or for the cost of a full roof replacement, which was necessary to comply with local building codes. Cincinnati estimated its liability at about $10,000 for the tornado damage, while Rymer argued that a new roof was required, costing up to $1.7 million. After the parties could not agree, Cincinnati initiated a declaratory judgment action in federal court, and an appraisal panel awarded $23,226 for "mall roof repair."The United States District Court for the District of Minnesota initially concluded that any increased repair costs were Rymer’s responsibility, finding that the costs resulted from preexisting damage rather than the tornado. On appeal, the United States Court of Appeals for the Eighth Circuit held that it was sufficient if the tornado was a "but-for" cause of the county’s enforcement of the building code, and remanded the case for further proceedings, including clarification of the ambiguous appraisal award.Upon remand, the district court sought clarification from the appraisal panel as to whether the award covered repairs to the roof’s surface or just the flashing. The majority of the panel clarified that only flashing replacement was included. Rymer attempted to introduce later statements by the panel’s umpire to expand the scope of the award, but the district court held that such testimony is relevant only to allegations of panel misconduct, not to reinterpret or enlarge an award. The United States Court of Appeals for the Eighth Circuit affirmed this decision, holding that under Minnesota law, district courts may seek clarification of ambiguous appraisal awards, and that appraiser testimony cannot be used to expand or alter an award unless there is evidence of fraud or wrongdoing. View "Cincinnati Insurance Company v. Rymer Companies, LLC" on Justia Law

GAC Equipment, doing business as Austin Crane Service, hired Diamond Hydraulics to repair a crane’s cylinder, which later bent during a lifting operation. Each party blamed the other: Diamond argued that improper maintenance and operation by Austin Crane caused the failure, while Austin Crane claimed Diamond’s repairs were improper and used unsuitable materials. The dispute intensified during discovery, particularly over Diamond's ability to inspect the cylinder, and both parties made late expert witness designations. As trial approached, Diamond’s designated expert, Dr. Macfarlan, left his job, moved out of state, and refused to testify. Diamond attempted to substitute another expert, Dr. Hoerner, who had participated in preparing the expert report. Austin Crane objected, and the district court denied Diamond’s request to substitute its expert and to continue the trial.The 425th Judicial District Court in Williamson County, Texas, proceeded with the trial without Diamond’s causation expert. The jury found in favor of Austin Crane on both breach of contract and breach of warranty claims. Diamond appealed, arguing that the district court abused its discretion by not allowing the late expert substitution. The Court of Appeals for the Third District of Texas affirmed the trial court’s decision.The Supreme Court of Texas reviewed the case, focusing on whether Diamond showed good cause for its late expert designation under Texas Rule of Civil Procedure 193.6. The Supreme Court held that Diamond demonstrated good cause: the unavailability of Diamond’s original expert was beyond its control, Diamond acted promptly and in good faith to substitute an expert, and the excluded testimony was critical to its case. The Supreme Court concluded that the district court abused its discretion and that disparate treatment was given to the parties’ late designations. The Supreme Court of Texas reversed the court of appeals’ judgment and remanded the case for a new trial. View "DIAMOND HYDRAULICS, INC. v. GAC EQUIPMENT, LLC" on Justia Law

The dispute arose from a contract signed on May 12, 2021, under which Kindra Cooper agreed to purchase a house from Highland Rim Investments, LLC. Delays in closing led the parties to enter into three extensions, but the sale never concluded. Cooper then sued for specific performance, declaratory judgment, and damages, later amending her complaint to add additional defendants and claims, including various forms of misrepresentation and a request to pierce Highland Rim’s corporate veil. During litigation, certain claims were dismissed, and after a jury trial, the jury awarded Cooper compensatory and punitive damages against Highland Rim and Monique Dollone, but found for other defendants on the misrepresentation claims.The Madison Circuit Court entered judgment on the jury's verdict, awarded Cooper attorney fees, granted her motion to pierce the corporate veil as to one defendant, and later appointed a receiver over Highland Rim to preserve its fiscal health until the judgment was satisfied. The defendants moved for post-judgment relief, which was denied, and then appealed both the judgment and the receivership order.The Supreme Court of Alabama reviewed the appeals. It found that the trial court erred by requiring the parties to strike the jury from a list of only 21 prospective jurors, rather than the 24 required by Alabama Rule of Civil Procedure 47(b). This procedural error mandated reversal. The Supreme Court of Alabama held that the trial court’s judgment in favor of Cooper and its order appointing a receiver over Highland Rim must be reversed. The cases were remanded for further proceedings consistent with this opinion. View "Highland Rim Investments, LLC v. Cooper" on Justia Law

A woman sought to challenge the probate of a will and asserted claims seeking recognition as an heir, either as a biological child or by equitable adoption, following the death of a decedent who resided in Tallapoosa County. After letters of administration had initially been issued to her by the Montgomery Probate Court, subsequent proceedings transferred jurisdiction to the Tallapoosa Probate Court, which admitted a document as the decedent’s will and appointed other individuals as personal representatives. The woman then filed a pro se complaint in the Tallapoosa Circuit Court, contesting the will and requesting various relief, including a DNA test to establish her relationship to the decedent.The Tallapoosa Circuit Court held a hearing, denied her request to compel DNA testing of the proponents, allowed her to submit her own certified DNA evidence, and later dismissed the action on the ground that she had failed to provide proof of relationship as required. She appealed to the Alabama Court of Civil Appeals, which transferred the appeal to the Supreme Court of Alabama due to jurisdictional reasons.The Supreme Court of Alabama determined that, due to statutory changes enacted by Act No. 2022-427, original jurisdiction for will contests relating to wills filed for probate on or after January 1, 2023, lies with the probate court, not the circuit court, except in cases where a proceeding has been properly removed to the circuit court. Finding that no removal had occurred, the Supreme Court held that the circuit court lacked subject-matter jurisdiction over the will contest. The Court reversed the circuit court’s judgment and remanded the case with instructions to dismiss the action for lack of subject-matter jurisdiction. The Supreme Court made no determination as to the woman’s ability to bring a will contest in the probate court. View "Glenn v. Caldwell" on Justia Law

A cannabis trade association challenged a policy implemented by the 23rd Judicial District (Berks County, Pennsylvania) that governs participation in various treatment courts, such as drug and mental health courts. The judicial district’s policy, as revised following the Pennsylvania Supreme Court’s decision in Gass v. 52nd Judicial District, Lebanon County, allows the use of medical marijuana by treatment court enrollees on a case-by-case basis, requiring physician documentation. The association argued that the policy, by potentially excluding lawful medical marijuana users from treatment courts, violated the Medical Marijuana Act’s immunity provision and caused financial harm to its member dispensaries through lost sales.The Pennsylvania Cannabis Coalition and an individual petitioner, D.M., filed a petition for review in the Commonwealth Court, seeking declaratory and injunctive relief. The Commonwealth Court found that D.M. lacked standing based on his circumstances and that the Coalition’s claimed financial injury to its members was too remote and speculative to establish associational standing. The court dismissed the petition for lack of standing and did not reach the merits of the claim regarding the Medical Marijuana Act.The Supreme Court of Pennsylvania reviewed the case on direct appeal, focusing solely on whether the association had standing. The Court held that the association’s alleged financial harm was not a substantial, direct, and immediate interest sufficient to satisfy the standing requirements under Pennsylvania law. The harm was considered indirect and remote because the policy did not regulate dispensaries or their transactions, but rather affected court applicants. The Court affirmed the Commonwealth Court’s dismissal, concluding that the association lacked standing to challenge the judicial district’s amended policy. View "PA Cannabis Coalition v. 23rd Judicial Dist" on Justia Law

Two pharmaceutical companies developing treatments for achondroplasia, a genetic disorder, became involved in litigation after one company (Ascendis) filed a New Drug Application (NDA) for its product. The other company (BioMarin), holding a relevant patent, filed a complaint with the United States International Trade Commission (ITC) alleging patent infringement by Ascendis’s product. Shortly afterward, Ascendis filed a declaratory judgment action in the United States District Court for the Northern District of California, seeking a judgment of non-infringement and arguing that its activities were protected under the statutory “safe harbor” for regulatory approval.More than thirty days after filing its district court complaint, Ascendis moved for an expedited hearing. BioMarin responded by seeking to dismiss or stay the district court action pending the ITC’s investigation. Ascendis voluntarily dismissed its complaint without prejudice and promptly refiled a nearly identical complaint, this time moving for a mandatory stay under 28 U.S.C. § 1659(a)(2), which requires a district court to stay its proceedings if requested within thirty days of the action’s filing or of being named as a respondent in the ITC. BioMarin opposed, contending Ascendis’s request was untimely, and sought a discretionary stay instead.The United States District Court for the Northern District of California granted BioMarin’s motion for a discretionary stay and denied Ascendis’s motion for a mandatory stay as moot. On appeal, the United States Court of Appeals for the Federal Circuit held that § 1659(a)(2) does not permit a litigant to restart the thirty-day period for a mandatory stay by voluntarily dismissing and refiling a substantially identical action. The court reasoned that the statutory deadline applies to the original action and that allowing refiling would circumvent the statute’s purpose. The Federal Circuit affirmed the district court’s decision. View "ASCENDIS PHARMA A/S v. BIOMARIN PHARMACEUTICAL INC. " on Justia Law

This case centers on a dispute involving the planned construction of a new cottage by a hotel operator on Martha’s Vineyard. The hotel, situated in a residential area, is considered a preexisting nonconforming commercial use. In 2008, the hotel’s predecessor sought permission for expansion and entered into an agreement with a neighboring property owner, who agreed not to oppose the project or appeal permit decisions, in exchange for promises including the installation and maintenance of vegetative screening. After subsequent changes to the project—including the removal and replacement of screening and the relocation and resizing of the cottage—the neighbor, acting as trustee, objected to the most recent modifications in 2023, claiming inadequate screening and diminished privacy.Following the 2023 decision by the Edgartown zoning board of appeals approving the hotel’s modifications, the trustee filed suit challenging that decision and asserting additional claims against the hotel. The hotel counterclaimed for abuse of process, alleging that the suit was frivolous and vexatious. The Superior Court denied the trustee’s special motion to dismiss the counterclaim under the Massachusetts anti-SLAPP statute, concluding that the underlying lawsuit was a sham. The trustee appealed. The Appeals Court reversed, finding that it could not determine at that stage whether the trustee’s claims were meritless because the underlying suit was unresolved.The Supreme Judicial Court of Massachusetts held that the anti-SLAPP statute requires the party opposing dismissal to prove that the petitioning activity (the lawsuit) was devoid of reasonable factual support or any arguable basis in law. The court determined that the hotel failed to meet this burden because the trustee’s challenge to the 2023 decision was not frivolous on its face. The order denying the special motion to dismiss was therefore reversed, and the case remanded for further proceedings, including an award of attorney’s fees to the trustee. View "Allegaert v. Harbor View Hotel Owner LLC" on Justia Law

The plaintiff, a general laborer, sued his employer and its owner for violations of the Massachusetts Wage Act, alleging that he was not paid for four weeks of work. He sought damages for lost wages. The defendants denied the allegations and filed counterclaims against the plaintiff for abuse of process and malicious prosecution. In response, the plaintiff filed a special motion to dismiss the counterclaims under the Massachusetts anti-SLAPP statute, claiming the counterclaims were solely based on his act of petitioning the court to recover his wages.A judge in the Waltham Division of the District Court Department initially dismissed the counterclaims, but later reversed that decision after granting the defendants’ motion for reconsideration. The plaintiff then pursued an interlocutory appeal. The Massachusetts Appeals Court reversed the lower court’s decision and ordered the counterclaims dismissed under the anti-SLAPP statute. The Appeals Court subsequently considered the plaintiff’s unopposed petition for appellate attorney’s fees, which used the lodestar method to calculate a request of $67,361.25. Although the Appeals Court found the hours and rates reasonable, it reduced the award by half, reasoning that the fees were disproportionate to the relatively low monetary value of the underlying Wage Act claims.The Supreme Judicial Court of Massachusetts granted further appellate review, limited to the issue of appellate attorney’s fees. The court held that it was an abuse of discretion for the Appeals Court to reduce the fee award based on the value of the underlying Wage Act claims when the reasonableness of the hours and rates for the anti-SLAPP work had already been established. The Supreme Judicial Court therefore reversed the reduction and affirmed an award of $67,361.25 in appellate attorney’s fees for the anti-SLAPP work. View "Hidalgo v. Watch City Construction Corp." on Justia Law

The Securities and Exchange Commission initiated an enforcement action against Timothy Barton and related entities, alleging violations of federal securities laws. The district court subsequently appointed a receiver to manage properties allegedly acquired with funds from Barton’s fraudulent activities. Certain properties and entities, including TC Hall, LLC (owner of the Hall Street property), Goldmark Hospitality LLC (owner of Amerigold Suites), BM318, LLC, and JMJ Development, LLC, were placed within the receivership because they had received or benefitted from assets traceable to the alleged misconduct.The United States District Court for the Northern District of Texas oversaw the receivership and issued several orders approving property sales and settlements. Barton previously appealed the appointment of the receivership and its scope. The United States Court of Appeals for the Fifth Circuit, in an earlier decision (SEC v. Barton, 79 F.4th 573 (5th Cir. 2023)), vacated and remanded for reconsideration; on remand, the district court narrowed and reappointed the receivership. The Fifth Circuit later affirmed the new receivership order in SEC v. Barton, 135 F.4th 206 (5th Cir. 2025). While appeals were pending, the district court issued orders related to the sale of Amerigold Suites, settlements involving JMJ and BM318, and the sale of the Hall Street property.In the current appeal, the United States Court of Appeals for the Fifth Circuit concluded it lacked appellate jurisdiction to review the cancelled Amerigold Suites sale and the two settlement agreements, dismissing those portions of the appeal. The court found jurisdiction to review the approval of the Hall Street property sale and affirmed the district court’s order, holding that the district court did not abuse its discretion in approving the sale, which complied with statutory requirements and was in the best interest of the receivership estate. View "Securities and Exchange Commission v. Barton" on Justia Law

YC Properties purchased a ranch in Montana in 2020, acquiring a senior water right on Sawtooth Creek. Plaintiffs own junior, upstream water rights. A dispute arose over water usage, leading YC to petition for a water commissioner and, after alleging it was not receiving its full water allocation, to file suit against the plaintiffs. YC sought a temporary restraining order (TRO) and injunctions to prevent the plaintiffs from diverting water until its senior right was satisfied. The District Court granted a TRO but later dissolved it and dismissed all of YC’s claims after the irrigation season ended and found YC lacked standing on one claim.Following dismissal of the underlying water rights action, the plaintiffs sued YC for abuse of process and malicious prosecution. YC moved to dismiss the new complaint, referencing facts and documents from the prior case and analyzing the summary judgment standard. The District Court notified the parties it would treat YC’s motion as one for summary judgment and, after additional briefing, granted summary judgment for YC and dismissed the plaintiffs’ claims with prejudice.The Supreme Court of the State of Montana reviewed whether the District Court erred in converting YC’s motion to dismiss to a motion for summary judgment. The Supreme Court held that the District Court abused its discretion by converting the motion prematurely, as the only dispute was whether the complaint stated a claim and there was no need to consider materials outside the pleadings. The Supreme Court further found the plaintiffs’ complaint sufficient to withstand a motion to dismiss. The Supreme Court reversed the District Court’s grant of summary judgment and remanded for further proceedings. View "Roaring Lion v. YC Properties" on Justia Law