Justia U.S. 11th Circuit Court of Appeals Opinion Summaries
Articles Posted in Contracts
United Steel, Paper & Forestry, Rubber, Mfg., Energy, Allied Indus.& Serv. Workers Int’l Union v. Wise Alloys, LLC
The union contracts state that a cost-of-living allowance will be applied to offset health insurance costs for hourly-rated employees and not be applied to hourly wage rates. The contracts state that the COLA will be equal to 1¢ per hour for each full 0.3 of a point change in the Consumer Price Index calculation. An employer was calculating the COLA on a weekly basis and maintained that the adjustment was only $0.08 per week; the union argued that the adjustment should be calculated at $3.20 per week ($0.08 x 40 hours per week). In November 2008, an arbitrator rejected management's argument that the contracts included a scrivener's error and that the COLA should be calculated on a weekly, rather than hourly basis.The district court entered summary judgment in favor of the unions. The Eleventh Circuit affirmed. The Labor Management Relations Act, 29 U.S.C. 185, preempts employers' state law fraud counterclaims. An attempt to assert a federal common law "fraudulent procurement" defense was barred by the three-month limitations period for challenging the arbitrator's award.
In re: Janis Stewart
This case involved a residential construction scheme, which required the investor, the mortgage broker, the builder, and the bank providing the builder with the funds to construct the house to enter into certain independent contractual arrangements. Petitioners, investors whose builders went under and left them with unfinished houses or vacant lots, sought a writ of mandamus asking the court to order the district court to require respondent, the bank's executive vice-president for mortgage lending, to make a restitution in an amount equivalent to one point of their construction loans. The court held that the cause of petitioners' loss was not respondent, but the fact that the builders became insolvent and were unable or unwilling to complete their work. Therefore, the writ of mandamus was denied where petitioners assumed the risk that the builder might walk off the job; that if it did, the bank would declare the construction loan in default; and that, as the bank's borrower, they would be liable for the draws the builders had received plus interest.
Hollywood Mobile Estates Ltd. v. Seminole Tribe
Hollywood Mobile Estates Limited ("Hollywood") filed a complaint in district court against the Seminole Tribe of Florida ("Tribe") where the Tribe and the Secretary of the Interior ("Secretary") approved a lease assignment between Hollywood and the Tribe. At issue was whether Hollywood alleged an injury fairly traceable to the Secretary or redressable by the district court in a complaint that alleged that the Tribe had threatened to repossess tribal property in violation of the lease. Also at issue was whether the interests of Hollywood were within the zone of interests protected by the Indian Long-Term Leasing Act, 25 U.S.C. 415, and its accompanying regulations. The court held that Hollywood lacked constitutional standing to maintain its complaint and therefore, vacated in part the judgment entered by the district court and remanded with instructions to dismiss for lack of subject matter jurisdiction. The court also held that Hollywood lacked prudential standing to sue the Secretary and therefore, affirmed the denial of the motion for leave to amend the complaint as futile.