Articles Posted in US Court of Appeals for the First Circuit

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This case concerned defects in the execution of two life insurance annuity polices that the decedent purchased through National Western Life Insurance Co. Plaintiffs, the decedent’s wife and children, sued National Western seeking a declaration that the policies were void and a return of the premiums paid by the decedent. National Western filed a motion to dismiss because Plaintiffs failed to join a necessary party - the decedent’s brother, who was named under both policies as the sole beneficiary - even though National Western had already paid him. The district court denied the motion, ruling that the beneficiary at issue was not “required to be joined if feasible” under Fed. R. Civ. P. 19(a). The court then granted summary judgment for Plaintiffs. The First Circuit vacated the judgment of the district court, holding that the sole beneficiary of the annuities was required to be joined if feasible under rule 19(a). The court remanded the case to the district court to determine whether it was equitable for the case to proceed without him. View "Maldonado-Vinas v. National Western Life Insurance Co." on Justia Law

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The Autoridad de Energia Electrica de Puerto Rico (PREPA) executed six contracts for the delivery of fuel oil. Vitol, Inc. was a party or assignee to the six contracts, each of which included a choice of law and forum selection clause stating that disputes concerning the contract shall be litigated in Puerto Rico state courts. After PREPA learned that Vitol, S.A. had pled guilty to first degree grand larceny it filed a complaint in a Puerto Rico Court against Vitol, Inc. and Vitol, S.A. alleging that two oil supply contracts it held with Vitol, Inc. were null due to Law No. 458 of December 29, 2000 and the Puerto Rico Civil Code. Invoking diversity jurisdiction, Defendants removed the claim to federal court. PREPA then filed a second complaint in a Commonwealth court regarding four additional oil supply contracts. The two cases were consolidated in federal court. The district court remanded the case to the Commonwealth court, concluding that the forum selection clauses applied to the dispute and, therefore, that the unanimity requirement of 28 U.S.C. 1446(b)(2)(A) could not be satisfied. The First Circuit affirmed, holding that remand was proper because the forum selection clauses were enforceable, and therefore, the unanimity requirement could not be met. View "Autoridad de Energia Electrica v. Vitol, Inc." on Justia Law

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In this design-defect product-liability case, the district court did not abuse its discretion in dismissing the case for Plaintiff's failure to prosecute and to comply with scheduling orders. Plaintiff brought this action against Defendants. Plaintiff served no discovery before the discovery deadline, and Plaintiff’s counsel did not at the outset retain an expert. Defendants filed a motion for summary judgment arguing that the absence of any expert testimony was fatal to Plaintiff’s case. The district court subsequently granted Plaintiff’s request to reopen discovery, set a new expert-disclosure deadline and other requests for time extensions without any sanction. After the extended deadline for filing an opposition to the motion for summary judgment came without Plaintiff’s opposing the motion, the district court dismissed the case for failure to prosecute and failure to comply with scheduling orders. The district court denied Plaintiff’s motion for reconsideration. The First Circuit affirmed. View "McKeague v. One World Technologies, Inc." on Justia Law