Justia Civil Procedure Opinion Summaries

In South Carolina, Phillip Francis Luke Hughes, on behalf of the estate of his late mother, Jane Hughes, sued Bank of America for fraud, fraudulent concealment, and breach of contract, alleging that the bank charged insurance premiums in connection with a home equity line of credit his parents obtained in 2006, even though they declined the insurance offer. The bank argued that the claims did not survive Jane Hughes's death, were barred by res judicata and the statute of limitations, and that their motion for sanctions was not premature.The Supreme Court of South Carolina held that the claims for fraud and fraudulent concealment survived Jane Hughes's death. However, it also held that all three claims were barred by the res judicata effect of rulings in related federal court litigation. The court affirmed as modified in part and reversed in part the lower court's decision. The court also affirmed the lower court's decision that the sanctions motion was not premature. The court further held that the claim for breach of contract accompanied by a fraudulent act survived Jane Hughes's death, but was also barred by res judicata.As for the statute of limitations issue, the court held that the statute of limitations had expired before the action was commenced and that the plaintiff was precluded from relitigating the equitable tolling issue. The court remanded Bank of America's sanctions motion to the lower court for disposition. View "Hughes v. Bank of America" on Justia Law

The case involves Green Plains Trade Group, LLC, who appealed the district court's dismissal of their claim for tortious interference with contract against Archer Daniels Midland Company (ADM). Green Plains alleged that ADM unlawfully manipulated the price of ethanol, causing Green Plains to receive less money for the ethanol it sold to third parties. The district court dismissed the case, saying Green Plains hadn't specified the contracts ADM interfered with or shown a breach of contract. Green Plains argued that under Nebraska law, tortious interference doesn't always require a breach and that ADM's actions made its performance under its contracts "more expensive or burdensome."The United States Court of Appeals for the Seventh Circuit vacated the district court's dismissal and remanded the case for further proceedings. The Court of Appeals found that while the district court was correct to require Green Plains to plead more than general allegations about its contracts, it may have required too much specificity. The Court of Appeals also found that the district court erred in not recognizing section 766A of the Restatement (Second) of Torts as part of Nebraska's law, which allows a plaintiff to bring a successful tortious interference with contract claim even if the contract was not breached. The Court of Appeals held that the district court must apply the law as it believes the highest court of the state would apply it if the case were now before it, and it should not fear adopting the less restrictive approach if it believes the state's highest court would adopt that approach. View "Green Plains Trade Group, LLC v. Archer Daniels Midland Co." on Justia Law

In an appeal from a property dispute in Ketchum, Idaho, the Supreme Court of the State of Idaho affirmed the lower court's judgment, in part, and vacated and remanded the case, in part, for further proceedings. The dispute arose when Trustees Glen Miller and Cynthia Anderson attempted to build a home on a lot they purchased in the Rocking Ranch No. 3 subdivision. The Rocking Ranch No. 3 Property Owners’ Association denied their application to construct the home and asserted several counterclaims to recover unpaid homeowners association (HOA) assessments. The district court granted summary judgment to the Association on Miller and Anderson’s claims and dismissed the Association’s counterclaims. On appeal, the Supreme Court of the State of Idaho affirmed the district court's dismissal of the Association’s counterclaims, concluding that the Association failed to establish its breach of contract counterclaim because it had not established two elements of the prima facie case: breach of the contract and damages resulting from the breach. The Supreme Court of the State of Idaho also vacated and remanded the district court's award of attorney fees to the Association for further proceedings, finding that the Association was not entitled to recover attorney fees for the counterclaims on which it did not prevail. View "Miller v. Rocking Ranch No. 3" on Justia Law

In this case, Richard Mullen and Cheryl Mullen petitioned the Supreme Court of Alabama for a writ of mandamus to direct the Jefferson Circuit Court to transfer their case to the Walker Circuit Court. The case at hand arises from a dispute between the Mullens and Karl Leo and Fay Leo, who purchased a parcel of property from the Mullens in Walker County. The Leos alleged that the Mullens, unlicensed homebuilders, sold them a residence with multiple latent defects and refused to remedy these defects. The Leos filed a suit against the Mullens in the Jefferson Circuit Court, where the Mullens resided, claiming breach of contract, breach of the implied warranty of habitability, fraud, negligence, and fraudulent suppression.The Mullens sought dismissal or transfer of the case to Walker County, arguing that as the property in question was located there, it was the appropriate venue. The Jefferson Circuit Court, however, denied their motion. The Mullens then petitioned the Supreme Court of Alabama, arguing that Walker County was the proper venue due to the location of the property and the Leos' request for equitable relief in their complaint.The Supreme Court of Alabama granted the Mullens' petition for a writ of mandamus. The Court found that the property sold by the Mullens to the Leos in Walker County was the "subject matter" of the action within the meaning of Rule 82(b)(1)(B). Therefore, the Court directed the Jefferson Circuit Court to vacate its order denying the Mullens' motion to transfer the action and to transfer the case to the Walker Circuit Court. View "Ex parte Mullen" on Justia Law

In Alabama, RAM-Robertsdale Subdivision Partners, LLC contracted Construction Services LLC, d/b/a MCA Construction, Inc. ("MCA") to build infrastructure for a proposed housing subdivision. The relationship between the two parties deteriorated, leading to a lawsuit by RAM-Robertsdale against MCA for various claims including breach of contract, negligence, and negligent misrepresentation, among others. MCA counterclaimed and also filed third-party claims against Retail Specialists, LLC, a member of RAM-Robertsdale, and Rodney Barstein, a corporate officer for Retail Specialists and RAM-Robertsdale, for breach of contract, fraud, unjust enrichment, and defamation. The RAM defendants moved for summary judgment on MCA's counterclaims and third-party claims, arguing that MCA was not properly licensed when it signed the contract, thus making the contract void for public policy. The circuit court granted the RAM defendants' motion for summary judgment and certified its judgment as final.On appeal, the Supreme Court of Alabama found that the circuit court had exceeded its discretion in certifying its judgment as final under Rule 54(b), Ala. R. Civ. P., because the claims pending below and those on appeal were closely intertwined, arising from the same contract and the parties' performance under that contract. The Court noted that if the contract was indeed void for public policy, then neither party would be able to enforce it, impacting the remaining claims pending in the circuit court. As the Court found that deciding the issues at this stage would create an intolerable risk of inconsistent results, it dismissed the appeal for lack of jurisdiction. View "Construction Services, LLC v. RAM-Robertsdale Subdivision Partners, LLC" on Justia Law

This case involves a dispute between a group of individuals and companies associated with John Logan and a mix of investors and former investors in medical clinics that Logan has run. The parties attended a mediation to resolve five separate but related lawsuits. Following the mediation, RedMed believed there was an enforceable settlement agreement, while Logan believed the mediation only created a framework for further negotiations. The trial court granted RedMed’s Motion to Enforce Settlement, finding that a binding settlement agreement had been reached. Logan appealed, arguing that the trial court erred in finding a binding settlement agreement. The Supreme Court of Mississippi reverses the trial court's ruling. The court found that the proposed settlement agreement lacked material terms required by Mississippi contract law, such as the interest rate and term of a promissory note, and therefore no meeting of the minds occurred. The court further found that the conduct of the attorneys and mediator at the conclusion of the mediation indicated that mutual assent to the terms of a contract was lacking. As a result, the court concluded that no enforceable contract was formed at the mediation. Therefore, the case is remanded back to the trial court. View "Logan v. RedMed, LLC" on Justia Law

The Supreme Court of the State of North Dakota considered an appeal by Michelle Vetter against a district court judgment which found her liable for unpaid legal fees to Larson Latham Huettl LLP, a law firm she'd hired for her divorce proceedings. The firm had sued Vetter for a balance of $552 which exceeded an initial retainer of $6,000. Vetter disputed the claim, arguing that the firm had unilaterally altered the agreement's terms, breached the contract, and committed fraud or deceit. She alleged she'd been billed at $200 per hour instead of the agreed $180. The district court dismissed Vetter's counterclaim, upheld the validity and enforceability of the fee agreement (which included a provision that the hourly rate could increase during representation), and awarded judgment to the law firm for the unpaid fees, interest, costs, and attorney’s fees.On appeal, the Supreme Court of North Dakota affirmed the district court's decision, finding that its conclusions were supported by the record and not clearly erroneous. The court ruled that attorney's fees were reasonable and enforceable under the contract. The court also remanded the case to the district court to determine a reasonable amount for attorney’s fees for the appeal, as per the North Dakota Century Code, which allows a prevailing plaintiff to be awarded attorney’s fees when the defendant elects to remove the action from small claims court to district court and appeals the district court judgment to the supreme court. View "Vetter v. Larson Latham Huettl LLP" on Justia Law

In a personal injury case, Alejandro Lopez Aguilar, the appellant, had filed a lawsuit against Lucky Cab Co. and Adugna Demesash, the respondents. Before trial, Lucky Cab made an offer of judgment to Aguilar for a lump sum of $150,001, explicitly stating that this amount did not include prejudgment interest, attorney fees, and costs incurred to date. Aguilar accepted the offer. Lucky Cab sent Aguilar both a check for $150,001 and a stipulation and order for dismissal. However, Aguilar did not process the check or consent to the dismissal, arguing that Lucky Cab had not fully paid the offer amount as it had not yet paid any costs or prejudgment interest. The district court granted dismissal with prejudice, concluding that Lucky Cab was entitled to dismissal once it tendered payment within the stipulated window. Aguilar appealed.The Supreme Court of Nevada reversed the district court’s decision. The high court clarified that when an offer of judgment explicitly excludes costs, expenses, interest, and attorney fees, it promises two sums if accepted: (1) the principal amount for the claim(s), specified in the offer; and (2) a separate amount for costs, expenses, interest, and attorney fees that would be recoverable if a judgment were entered based on that offer. Consequently, under Nevada Rule of Civil Procedure (NRCP) 68(d)(2), an offeror cannot obtain dismissal unless they pay both the principal offer and the additional allowance for costs, expenses, interest, and attorney fees. In this case, Lucky Cab did not pay the pre-offer costs and interest that were promised and that Aguilar would be entitled to as a prevailing party. The case was remanded for the district court to determine the amount of awardable pre-offer costs and interest that Lucky Cab must pay to obtain dismissal. View "Aguilar v. Lucky Cab Co." on Justia Law

In March 2015, Jere Hinman hired BrightView Landscape Development, Inc., to design and construct a pool at her residence. BrightView subcontracted with Georgia Gunite and Pool Company, Inc., to install plumbing and spray shotcrete for the pool shell. In November 2015, Hinman contacted BrightView after receiving an unusually high water bill and discovered that the pool was leaking water due to a missing part that was not included in Georgia Gunite’s scope of work. BrightView and Georgia Gunite worked together to address the issue in April 2016. In 2018, Hinman sued BrightView for defective construction of the pool, and BrightView filed a third-party complaint against Georgia Gunite, seeking indemnification based on the subcontractor agreement. Georgia Gunite moved for summary judgment, arguing that BrightView's claim was barred by Tennessee's four-year statute of repose for actions alleging defective improvements to real estate.The United States Court of Appeals affirmed the decision of the District Court for the Middle District of Tennessee, which granted summary judgment in favor of Georgia Gunite. The court held that, although BrightView's indemnification claim against Georgia Gunite was contractual in nature, it fell within the scope of Tennessee's statute of repose for deficient construction of an improvement to real property because, at its core, it sought to recover damages arising from such deficient construction. The court rejected BrightView's argument that the statute of repose only applies to tort actions. The court also rejected BrightView's argument that the application of the statute of repose in this case would extinguish its claim before it even accrued, noting that this argument is directed at the nature of a statute of repose. The court further held that the repose statute is not mutually exclusive with statutes of limitation. Thus, BrightView's claim against Georgia Gunite was barred because it was not brought within four years after substantial completion of the pool construction. View "Hinman v. ValleyCrest Landscaping Dev." on Justia Law

This case concerns a dispute arising from a real estate transaction between appellants Donnell and Marilyn Bauer and appellees Jesse Lee and Mary A. Beamon. The Bauers sold Lot 24A to the Beamons, failing to disclose certain defects and issues related to the property. After the sale, the Beamons discovered a mold issue in the residence and soil instability on an adjacent lot, Lot 18, which the Bauers had also owned. The Beamons attempted to remediate these issues, incurring significant costs. They ultimately sought to rescind the contract, alleging fraud and deceit by the Bauers.The Supreme Court of Arkansas affirmed the lower court's denial of the Beamons’ rescission claim, finding that the Beamons had waived their right to rescission by taking possession of the property, engaging in mold eradication, and attempting to remediate the soil conditions on the hillside. These actions were found to be inconsistent with an intent to rescind.However, the court reversed the lower court's award of damages to the Beamons for breach of contract. The court found that the Beamons had not alleged breach of contract in their complaint, and thus could not recover damages on that basis. Furthermore, the court found that the Bauers' constitutional right to a jury trial had been violated, as the Beamons’ claim for rescission, an equitable remedy, had been tried without a jury, and the Bauers were not given a jury trial on the legal claim for damages. View "BAUER V. BEAMON" on Justia Law