Justia U.S. 11th Circuit Court of Appeals Opinion Summaries
Articles Posted in Contracts
Zaki Kulaibee Establishment v. McFliker, et al.
Zaki filed suit against ANI for breach of contract and conversion, among other things, after ANI sold Zaki's aircraft parts without properly accounting for the sales proceeds, charging Zaki for inflated storage expenses, and failing to return the parts after Zaki terminated the consignment agreement. Zaki also requested an accounting. The court held that the district court abused its discretion when it refused to grant Zaki an accounting; the district court failed to recognize the fiduciary nature of the relationship between the parties alone constituted sufficient grounds for an accounting under Florida law and erroneously concluded that an action for damages afforded an adequate alternative; and, therefore, the court reversed and remanded. View "Zaki Kulaibee Establishment v. McFliker, et al." on Justia Law
Posted in:
Contracts
Inlet Beach Capital Investments LLC v. Federal Deposit Insurance Corporation
This case arose from contracts to purchase real estate. On appeal, Inlet Beach and others challenged the district court's order entering final judgment in favor of the FDIC-R. The court concluded that Inlet Beach's contract claims are barred by the Inlet Beach Contract's remedies limitation provision. Despite Inlet Beach's argument to the contrary, the remedies limitation provision does not lack mutuality and is therefore enforceable. The court affirmed the judgment as to that issue and also affirmed the district court's dismissal of the other claims. View "Inlet Beach Capital Investments LLC v. Federal Deposit Insurance Corporation" on Justia Law
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Contracts
U.S. Nutraceuticals, LLC v. Cyanotech Corp.
Valensa filed suit against Cyanotech for tortious interference with contract and breach of a confidentiality agreement. Cyanotech then moved to compel arbitration based on two contracts between the parties. The district court denied the motion. The court reversed and remanded where the district court erred when it refused to allow an arbitrator to decide whether their dispute is arbitrable under one of the parties' contracts because the parties clearly and unmistakably incorporated the rules of the American Arbitration Association into their arbitration provisions. View "U.S. Nutraceuticals, LLC v. Cyanotech Corp." on Justia Law
Posted in:
Arbitration & Mediation, Contracts
Bates v. JPMorgan Chase Bank, NA
Plaintiff filed suit against Chase, alleging violations of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2605(e); conversion; breach of contract; wrongful attempted foreclosure; and trespass. On appeal, plaintiff challenged the district court's grant of summary judgment in favor of Chase on all of plaintiff's claims. The court concluded that the district court properly granted summary judgment on the breach of contract claims where, although the court recognized that HUD regulations are enforceable terms of the contract, plaintiff failed to put forward any evidence of damages caused by the purported breach of these contract terms or seek any cognizable relief; plaintiff's trespass claim failed because plaintiff was admittedly in default and any visits by Chase's agents to the property at issue were permitted; plaintiff's wrongful attempted foreclosure claim failed where Chase believed it was entitled to foreclose on the property at the time and plaintiff attributed the problems with Chase only to its inability to fully keep track of her payments and communicate her payment status to her; and plaintiff's RESPA claim failed where Chase's response to plaintiff's requests was adequate and there were no damages as a matter of law from an inadequate response. Accordingly, the court affirmed the district court's grant of summary judgment in favor of Chase on all claims. View "Bates v. JPMorgan Chase Bank, NA" on Justia Law
Taylor, et al. v. City of Gadsden, et al.
Plaintiffs, a class of firefighters whose pension contribution rate was raised from 6% to 8.5%, filed suit alleging that the City's actions impaired the terms of their employment contracts in violation of the United States Constitution and the Alabama Constitution. The district court dismissed the complaint for failure to demonstrate that any contractual right had been impaired. The court concluded that plaintiffs have no basis upon which to challenge a violation of the Contract Clause where, without passing any law, the City, at bottom, was doing nothing different from what a private party does. The City was free to amend the employee contribution rate without constitutional consequence. Even assuming the existence of a contractual provision not to raise the employee contribution rate, plaintiffs still cannot succeed on their Contract Clause challenge because, at most, the City has breached a contract, not impaired one. Accordingly, the court affirmed the judgment of the district court. View "Taylor, et al. v. City of Gadsden, et al." on Justia Law
UPS Supply Chain Solutions v. Megatrux Transp., Inc.
This case involved a pirated shipment of disk drives, two logistics contracts, and application of the Carmack Amendment, 49 U.S.C. 14706, a federal law regulating the interstate transportation of goods. The court concluded that Megatrux failed to show that the shipper was given a reasonable opportunity to choose between two or more levels of liability or that it had obtained agreement to any level below the Carmack Amendment's default measure of full liability. Therefore, the court affirmed the district court's finding of full liability. The court found no clear error in the district court's determination that the customs invoices, photographs, and recovered disk drives provided sufficient evidence of the condition and contents of the stolen shipment. The district court erred in finding UPS's claim for indemnification of attorney's fees to be preempted by the Carmack Amendment. Accordingly, the court affirmed the district court's ruling that Megatrux bears full liability for Seagate's actual loss and its finding that UPS sufficiently proved the contents of the subject shipments. The court reversed the determination that UPS's claim for attorney's fees under the indemnification clause of the Master Transportation Services Agreement was preempted and remanded for further proceedings. View "UPS Supply Chain Solutions v. Megatrux Transp., Inc." on Justia Law
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Contracts, U.S. 11th Circuit Court of Appeals
GDG Acquisitions, LLC v. Government of Belize
GDG filed suit, alleging that the Government of Belize breached a contract for the lease of office telecommunications. The district court dismissed based on the doctrines of forum non conveniens and international comity without reaching the merits of the dispute. The court concluded that the district court abused its discretion in dismissing for forum non conveniens without first evaluating the significance of a forum-selection clause in the underlying contract. Accordingly, the court vacated the forum non conveniens dismissal and remanded to allow the district court to determine the enforceability and significance of the forum-selection clause. The court also vacated the district court's dismissal on the alternative ground of international comity where retrospective international comity did not apply without a judgment from a foreign tribunal or parallel foreign proceedings and where prospective international comity did not apply to this commercial contract dispute. Accordingly, the court vacated and remanded. View "GDG Acquisitions, LLC v. Government of Belize" on Justia Law
Lamm v. State Street Bank and Trust
Plaintiff (the customer) filed suit against State Street (the custodian bank), alleging in essence that it had a duty to notify him that the securities in his account were worthless. The district court granted State Street's motion to dismiss the contract claims on the ground that State Street had a merely administrative role in managing plaintiff's accounts and thus owed him no duty to guard against his investment advisor's misconduct. The district court concluded that plaintiff's negligence claims were barred by Florida's economic loss rule and plaintiff had not sufficiently alleged knowledge on the part of State Street in regards to the aiding and abetting claims. The court affirmed, holding that, under these facts, the custodian bank breached no duty, contractual or otherwise, by accepting on behalf of its customer securities that later turn out to be fraudulent and listing those securities on monthly account statements issued to the customer. Plaintiff's allegations failed to state claims for breach of contract; plaintiff failed to establish that State Street owed him an independent duty to monitor the investments in his account, verify their market value, or ensure they were in valid form; therefore, he failed to state valid negligence claims; plaintiff's allegations were insufficient to state a claim for aiding and abetting; and plaintiff's claims for breach of fiduciary duty and negligent misrepresentation also failed. View "Lamm v. State Street Bank and Trust" on Justia Law
Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC, et al.
Winn-Dixie filed suit claiming that it suffered more than $90 million in lost profits because Defendants Dollar General, Dollar Tree, and Big Lots violated, and continue to violate, the restrictive covenants limiting grocery sales by other tenants in a shopping center in which Winn-Dixie was the anchor store. The court held that, for forty-one Florida stores, the district court misapplied Florida law in determining whether defendants had violated Winn-Dixie's restrictive covenants; the court reversed and remanded for these stores for a new trial based on a definition of "staple or fancy groceries" and "sales area" consistent with the holding of the Florida Third District Court of Appeals; the court held that the district court applied incorrect state law in determining whether defendants had violated the terms of restrictive covenants at thirteen stores in Alabama and Georgia; the court reversed and remanded for interpretation of covenants binding these Alabama and Georgia stores in accordance with the appropriate law of each state; and the court affirmed as to the forty-three remaining stores for which the district court denied all relief on other grounds. View "Winn-Dixie Stores, Inc., et al. v. Dolgencorp, LLC, et al." on Justia Law
Posted in:
Contracts, U.S. 11th Circuit Court of Appeals
Martinez v. Carnival Corp.
Plaintiff, a Honduran citizen who suffered a back injury while employed as a mason aboard one of Carnival's ships, filed suit against Carnival in state court asserting claims of Jones Act, 46 U.S.C. 30104, negligence, unseaworthiness, and failure to provide adequate maintenance and cure. Plaintiff alleged that the physician chosen and paid by Carnival negligently performed his back surgery. Carnival removed to federal court. On appeal, plaintiff appealed the district court's order compelling arbitration of his claims under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (CREFAA), 9 U.S.C. 201-208. Plaintiff argued that his Jones Act claim did not fall within his employment contract ("Seafarer's Agreement") with Carnival and, therefore, was not within the scope of the contract's arbitration clause. The court concluded that the order compelling plaintiff to arbitrate his claims was "a final decision with respect to arbitration," and the court had appellate jurisdiction. The court also concluded that plaintiff's dispute with Carnival clearly arose out of or in connection with the Seafarer's Agreement and was subject to arbitration. Accordingly, the court affirmed the district court's order. View "Martinez v. Carnival Corp." on Justia Law