Contract Disputes

News & Analysis as of

Pa. Supreme Court Denies Equitable Tolling of Oil and Gas Lease’s Primary Term

Last week, the Pennsylvania Supreme Court, on certification from the United States Court of Appeals for the Third Circuit, ruled that the primary term of an oil and gas lease would not be equitably tolled during the pendency...more

Texas Supreme Court Argument Preview - 2/15

On Tuesday, February 24, 2015, beginning at 9:00 am, the Supreme Court of Texas will hear argument in the following three cases...more

The U.S. Complaint Against the Government of China in the WTO, Including the Targeting of Chinese Medical Device Manufacturers

On February 11, 2015, the United States filed a complaint before the World Trade Organization (WTO), alleging that certain actions by the national, regional and local governments of the People’s Republic of China are in...more

Standard Of Reasonableness In Contract With Public Body: Wednesbury Not Applied

In David Krebs v NHS Commissioning Board (As successor body to Salford Primary Care Trust) [2014] EWCA Civ 1540 The Court of Appeal ruled that the NHS Commissioning Board (NHSCB) had not acted unreasonably in terminating a...more

High Court rules on inconsistency in charterparty arbitration clauses and applicable curial law

Reed Smith (Lianjun Li and Min Li of the Hong Kong office, Nick Shaw and Halani Lloyd of the London office) recently represented the successful Charterers in Shagang South-Asia (Hong Kong) Trading Co. Ltd v Daewoo Logistics...more

An Answer To A Million Dollar Question About Designating Cases To The NC Business Court

This past Friday, I went to a seminar put on by the Antitrust and Complex Business Disputes Law Section of the North Carolina Bar Association in an almost successful effort to finish getting my required CLE hours for 2014. ...more

Construction Case Law Update - February 2015

Delay Damages; “Total Cost” vs. “Modified-Total-Cost” Approach – A party may not establish delay damages under the “total cost” or “modified-total-cost” approach when uncontroverted record evidence attributes delay costs to...more

Sue Now, or Forever Hold Your Peace

As a business owner, one of the many decisions you make is whether to file a lawsuit now or wait to see if the dispute gets resolved. Lawsuits can be unpleasant, and the potential expense leads many businesses to delay filing...more

Please can I have your Autograph Mr Ramsay!

You might have seen some of the recent media coverage of Gordon Ramsay’s court case relating to a personal guarantee given to his landlord that was signed using an “automated pen” operated by his estranged business partner...more

Chancery Court Applies New Statutory Amendment Retroactively

Before the newly enacted statutory amendment, 10 Delaware Code Section 8106(c), parties could shorten, but were not permitted to lengthen, an applicable limitations period by contract because an extension of the statute of...more

Todd Construction v. United States: Navigating Performance Evaluation Claims in the Court of Federal Claims

A default termination can be a nightmare for a contractor that bids on federal projects, but a negative performance evaluation can prove just as troublesome for a contractor that finishes the job. The Federal Acquisition...more

Gross Negligence in Destruction of Attorney Computer Leads to Adverse Inference Sanction (New York)

Dorchester Fin. Holdings Corp. v. Banco BRJ S.A., 2014 WL 7051380 (S.D.N.Y. Dec. 15, 2014). In this contract case, the plaintiff alleged a contract with the defendant, who disputed the authenticity of the contract and...more

Florida High Court Declares That Contract Legality Is Not Reviewable On A Motion to Vacate An Arbitral Award

On November 6, 2014, the Florida Supreme Court resolved a conflict among the Fourth and Fifth District Courts of Appeal by holding that a court is not required to determine whether a contract is legal before enforcing an...more

Delaware Court Examines Implied Covenant of Good Faith Related to Earn-Out

In Fortis Advisors LLC, as the equity representative v. Dialog Semiconductor PLC, the Delaware Court of Chancery examined the implied covenant of good faith in the context of an earn-out provision included in a merger...more

Texas Supreme Court Opinions (1/15)

Last week, the Supreme Court of Texas issued opinions in three cases and denied a petition for review with opinion. The Court also granted seven petitions for review and set two mandamus petitions for argument. ...more

A Rory for the Rest of Us (Litigants): Golf’s World No. 1 sees the hazard of high-dollar commercial litigation

Rory McIlroy is the number one ranked golfer in the world. He won back-to-back major tournaments last year and is looking for the “career grand slam” with a win this April at the Masters Tournament, the only major win he...more

California’s “Third Party Litigation Exception” Not Preempted By The FAA

A California appellate court recently examined that state’s legislative response to the situation where a party moves to compel arbitration and some of the parties to the dispute are not parties to the arbitration agreement....more

Rumors of Revival Were Greatly Exaggerated: Fifth Circuit Reverses Opinion on Contractual Liability Exclusion

We previously discussed the opinion of the U.S. Court of Appeals for the Fifth Circuit in Crownover v. Mid-Continent Cas. Co., No. 11-10166 (5th Cir June 27, 2014)—an opinion that seemed to revive the contractual liability...more

Recent Federal Court Rulings Favor Airlines in Frequent-Flyer Cases

In April 2014, the U.S. Supreme Court held that the Airline Deregulation Act (ADA) preempted a frequent flyer program member's common law claim for breach of the implied covenant of good faith and fair dealing because the...more

Service Provider Not A Fiduciary In Negotiating Its Contract

A federal district court in Iowa dismissed a putative class action complaint brought by several 401(k) plan sponsors who alleged that Principal Life Insurance Company breached its fiduciary duties to the plans by charging...more

Subcontractor Working on a Federal Project in Tennessee Protected by Tennessee Prompt Pay Act

The operation and applicability of prompt pay acts in various states is something that contractors ignore to their detriment. A recent Tennessee case drives home the importance of understanding the applicability of any prompt...more

When Should you File a Contract Disputes Act Claim?

Under the Contract Disputes Act (“CDA”), a contractor must submit a claim within six years of accrual of the claim. A claim is simply a written demand for payment directed to the contracting officer (“CO”) that indicates that...more

Pennsylvania Supreme Court Formally Adopts “Gist of the Action” Doctrine

Pennsylvania’s “gist of the action” doctrine prohibits plaintiffs from pursuing tort claims for what are, in actuality, breach of contract claims. A variety of defendants, including those in the financial services industry,...more

Gist of the Action Doctrine May Not Bar Tort Claims Arising from Negligent Performance of Contractual Duties

On December 15, 2014, the Pennsylvania Supreme Court broke its long silence on the gist of the action doctrine when it issued its decision in Bruno v. Erie Insurance Co. The gist of the action doctrine precludes a plaintiff...more

Utah Supreme Court Confirms Employee Handbook Disclaimer Can Protect Utah Companies from Implied Contractual Claims

A recent Utah Supreme Court decision drives home to companies with employees in Utah that a clear and conspicuous disclaimer in a prominent point of an employee handbook goes a long way to protecting the company from any...more

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