Case Summaries

Contracts

[07/03] Gen. Elec. Capital Corp. v. Future Media Prods., Inc.
In an appeal brought by an oversecured creditor in a bankruptcy matter, an order denying the creditor default interest and attorney's fees is reversed and remanded where: 1) the bankruptcy court improperly applied the circuit court's rule from In re Entz-White Lumber and Supply, Inc., 850 F.2d 1338 (9th Cir. 1988), to the facts of this case; and 2) the bankruptcy court should apply a presumption of allowability for the contracted for default rate, "provided that the rate is not unenforceable under applicable non-bankruptcy law."

[07/03] United Steel, Paper & Forestry, etc. v. TriMas Corp.
In an action to compel arbitration under the Labor-Management Relations Act (LMRA) arising out of the parties' dispute over a neutrality agreement, summary judgment for union is affirmed where the district court correctly: 1) found that the dispute was covered by the language of the arbitration clause; and 2) left consideration of certain extrinsic evidence to the arbitrator.

[07/02] City of Geneseo v. Utilities Plus
In an action to recover damages from corporate defendant based on claims of contractual breach, unjust enrichment, promissory estoppel, and fraud, summary judgment for defendant is affirmed where: 1) defendant's president was found to lack actual authority to enter a binding contract on the company's behalf; 2) the doctrine of apparent authority, which was limited under state laws, did not alternatively create a contract to be enforced; and 3) plaintiff had no basis to recover damages under alternative principles of contractual remedies.

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Injury & Tort Law

[07/03] Crowley Marine Servs. Inc. v. Maritrans Inc.
In an action arising out of the collision of plaintiff's tug boat with defendants' oil tanker, a district court's reallocation of fault in the matter is affirmed where: 1) the district court did not err in considering the coordinated nature of the tug escort, the tug boat's violations of Rules 5 and 17(b), or the negligence of both plaintiff and the tug's captain; and 2) it did not err in apportioning 70% of the responsibility for the collision to the tug boat.

[07/03] Sherman v. Winco Fireworks, Inc.
In an action arising from an accident with fireworks, order granting defendant-fireworks manufacturer leave to amend and remand for a new trial on the plaintiffs' failure-to-warn claim in addition to plaintiff husband's pendent consortium claim is reversed in part where: 1) the district court did not apply the good-cause standard in ruling on motion to amend; 2) and the district court abused its discretion in allowing the amendment; 3) and the error was not harmless as it significantly affected plaintiffs' claims.

[07/02] Anderson v. Commerce Construction Services, Inc.
In an action for negligence arising out of a Nebraska subcontractor's employee's injuries while performing demolition work in Kansas, summary judgment for defendant is affirmed where: 1) Kansas courts would have applied the lex loci delicti choice of law rule whereby the state where the tort occurred governs the merits of the litigation; 2) Kansas courts have only applied section 185 of the Restatement (Second) of Conflict of Laws to cases dealing with subrogation; and 3) application of section 184's most significant relationship test would result in defendant prevailing.

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Landlord Tenant

[06/25] Plains Commerce Bank v. Long Family Land & Cattle Co.
In a discrimination, breach of contract, and bad faith suit brought in Tribal Court by an Indian couple against a non-Indian bank, which sold land that it owned, and had previously leased to plaintiffs, on a tribal reservation to non-Indians, judgment and award for plaintiffs is reversed where the tribal court lacked jurisdiction to adjudicate a discrimination claim concerning the non-Indian bank's sale of fee land it owned.

[06/20] California Nat'l Bank v. Woodbridge Plaza LLC
In an appeal involving interpretation of a provision dealing with calculation of rent for the extended term of plaintiff's lease of premises owned by defendant, a judgment in favor of defendant is affirmed where: 1) the provision, interpreted from the parties' mutual intent at the time of contracting, was intended as a rent cap based on rent paid by a "financial institution" occupying a defunct bank's premises; and 2) because non-bank tenants were not the "successors" anticipated by the contract, their rent could not be used as a factor for calculating plaintiff's new rent, which is instead subject to the "then prevailing rate" as defined by the lease.

[06/12] 936 Second Avenue L.P. v. Second Corporate Dev. Co., Inc.
In a lease dispute involving the issue of whether the net lease itself must be considered by appraisers in valuing the demised premises for purposes of establishing the net rent for a renewal term of the lease, the Court of Appeals rules that, because the net lease does not exclude its consideration, it must be taken into account in valuing the property.

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Trade Secrets

[06/13] Natural Answers, Inc. v. Smithkline Beecham Corp.
In a trademark infringement case involving claims against defendants for the advertisement of certain health products, summary judgment for defendants is affirmed where: 1) the record unequivocally demonstrated that plaintiff did not own a valid trademark interest for claims of infringement brought under the Lanham Act; 2) plaintiff did not suffer injury for prudential standing to assert a false advertising claim under the Lanham Act; and 3) in light of plaintiff's insufficient interest and lack of judicial standing, plaintiff's claims also failed under alternative common law theories which require elements plaintiff could not prove.

[06/12] Taylor v. Sturgell
In a case involving two friends' and antique aircraft enthusiasts' separate Freedom of Information Act (FOIA) requests asking the FAA for copies of technical documents related to a vintage airplane, summary judgment finding petitioner's suit barred by claim preclusion based on his friend's prior suit is vacated and remanded where: 1) the Court disapproves the doctrine of preclusion by "virtual representation"; and 2) based on the record as it stood, the judgment against petitioner's friend in the prior action did not bar petitioner from maintaining the suit at hand.

[05/15] Topps Co., Inc. v. Cadbury Stani S.A.I.C.
In an action alleging breach of contract and misappropriation of trade secrets involving a chewing gum licensing agreement, summary judgment for defendant is reversed and remanded where: 1) the licensing agreement was ambiguous as to defendant's entitlement to continual usage of trade secrets after the agreement's terminate date; and 2) extrinsic evidence did not weigh overwhelmingly in defendant's favor to permit a resolution of the agreement's ambiguity by summary judgment.

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