Contract Disputes

News & Analysis as of

Mattocks v. Black Entertainment Television LLC

Mattocks v. Black Entertainment Television LLC - USDC, S.D. Florida, August 20, 2014 - District court grants defendant BET summary judgment in suit brought by creator of Facebook Fan Page that promoted BET...more

Pennsylvania Supreme Court Rules Only Original Purchasers May Recover Damages for Breach of the Builder’s Implied Warranty of...

The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers. In Conway v. The Cutler Group, Inc., the Court reversed an...more

Court Was Wrong to Re-Write Covenants

In Prophet v Huggett [2014] ECWA Civ 1013, the Court of Appeal has overturned a recent decision of the High Court in which it had re-written a non-compete covenant to give it commercial effect. You may recall that we...more

Freedom to Contract Prevails in New Mexico

Is freedom to contract a good thing for everybody? First Baptist Church of Roswell v. Yates Petroleum Corp. says yes, and confirms that the public policy in New Mexico is freedom to contract. In this case, it was to avoid...more

Pennsylvania Supreme Court Holds Contractor May Recover in Quantum Meruit Where Home Improvement Contract Does Not Satisfy...

Homeowners Raymond and Donna Mantia contracted Shafer Electric & Construction (“Shafer”) to build a two-car garage addition onto their house. Shafer’s proposal was extremely detailed as to the work to be completed. Despite...more

Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd – more claims against building practitioners?

On 6 August 2014, the Victorian Court of Appeal handed its decision in Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165. The decision clarified the operation of limitation periods in...more

Court Grants Summary Judgment In $40m Reinsurance Commission Dispute

Greenlight Reinsurance brought suit against Appalachian Underwriters (“AUI”), Appalachian Reinsurance (“App Re”) and Insurance Services Group (“ISG”) alleging it had been shortchanged more than $40,000,000 pursuant to three...more

The GPMemorandum, Issue 183

In This Issue: - Fourth Circuit Upholds Summary Judgment For Manufacturer In Exclusive Dealing Case: Despite being one of two manufacturers that control 99% of the market, E.I. DuPont de Nemours and Co. has...more

Limits to the Duty to Preserve

Although a suit against a particular officer of a corporation for sexual harassment would clearly trigger a litigation hold, what must counsel do about less obvious players in a more abstract dispute? The recent case of AMC...more

Venture Capital Firm Liable For "Aiding And Abetting" Breach Of Fiduciary Duty

A recent case in the California Court of Appeals underscores the dangers that await venture capital firms brave (or foolish) enough to fund companies in the midst of internal disputes. In American Master Lease LLC v Idanta...more

Data for the Taking: Using the Computer Fraud and Abuse Act to Combat Web Scraping

“Web scraping” or “web harvesting”—the practice of extracting large amounts of data from publicly available websites using automated “bots” or “spiders”—accounted for 18% of site visitors and 23% of all Internet traffic in...more

CSLL Does Not Bar Successor Entity’s Compensation Claims After Contractor’s Change of Business Entity During Construction

A recent decision by the California Court of Appeal imposed a sensible limit on the prohibition of compensation claims by unlicensed contractors under the Contractors’ State License Law (“CSLL”), specifically California Bus....more

English Contract Law: Has the Camel’s Nose of “Good Faith” Crept Under the Tent Flap?

Under the English Arbitration Act 1996 the grounds on which an English arbitration award can be challenged in court are very limited. Section 67 of the Act provides that a challenge may be brought on the basis that the...more

Massachusetts Superior Court Holds Construction Manager At-Risk Responsible for Design Errors / Holds that Spearin Doctrine Does...

The Worcester Superior Court recently issued a potentially landmark decision clarifying the risk that construction managers assume when entering into CM-At Risk contracts. ...more

Third Circuit affirms dismissal of False Claims Act suit, citing contract ambiguity

Ambiguous contract terms are ordinarily a liability for government contractors, opening the possibility of misunderstandings, expensive disputes, and, potentially, unpaid additional work. However, contract ambiguity recently...more

Include A Clear and Unequivocal Statement in Your CDA Claim

As most contractors are aware, the Contract Disputes Act requires that a contractor must present the Contracting Officer with a certified claim prior to proceeding with a formal claim before the Board of Contract Appeals or...more

Texas Supreme Court Unanimously Blocks Contractors' Economic Loss Tort Claims Against Designers

Texas contractors have long tried to directly sue their owners’ professional design firms -- rarely with success -- when faulty plans cause economic losses such as increased costs from delays and disruptions. A few cases in...more

It is Not Tortious to Interfere if You Are Exercising a Legitimate Interest or Right

In many commercial disputes, one or more of the parties will assert a tortious interference claim against the other. While there are several variations of tortious interference claims (e.g., interference with existing...more

In re Westech Capital Corp., Consol. C.A. No. 8845-VCN (Del. Ch. May 29, 2014) (Noble, V.C.)

In this post-trial Section 225 decision, the Court of Chancery resolved a dispute about the meaning of two subsections of a voting agreement that determine how its signatories would designate the directors of Westech Capital...more

Court Awards Sanctions Against Buyer and Attorney for Meritless Claims Against Sellers’ Agent

Plaintiff Joanne Peake purchased a home from the Underwoods, who were represented by a real estate agent, John Ferrell. Two years after close of escrow, she discovered that subfloors had been damaged and not repaired by the...more

Franchise & Distribution News - June 2014

In This Issue: - NEW FRANCHISE LEGISLATION IN CANADA: British Columbia, which presently does not have a franchise specific statute, recently took one step closer to implementing such legislation when the British...more

New York Appellate Division Affirms Denial of Merrill Lynch’s Motion to Dismiss Repurchase Claims

On June 17, New York’s Appellate Division, First Department intermediate appellate court affirmed the denial of Merrill Lynch’s motion to dismiss a repurchase suit brought by two RMBS Trusts. The plaintiff-trusts allege that...more

Does the Economic-Loss Rule Bar Claims Under Section 75-1.1?

The economic-loss rule says that a contract dispute generally does not state a tort claim. The concern is that if a plaintiff could recover tort damages, that outcome would disregard the expectations reflected in the parties’...more

Is There Any Escape From Your Contract?

Are you stuck in a contract with onerous provisions and desire to get out of it? Are you paying too much for an item or service and want to stop making such payments? If you answered yes to either of the preceding...more

Southern District of New York: Bad Faith Claim Based on Underlying Contract Claim Must be Dismissed as Duplicative

Orange v. The Travelers Indemnity Co., No. 7:13-CV-06790-NSR (S.D.N.Y. May 14, 2014). The Southern District of New York granted an insurer’s partial motion to dismiss insured’s separate claim of bad faith as...more

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