Justia Montana Supreme Court Opinion Summaries
Articles Posted in Contracts
Parish v. Morris
Cassadie and Chris Parish were injured in a motor vehicle accident when their vehicle was struck by an uninsured driver. United Financial Casualty Insurance Company (UFC) provided insurance coverage to the Parishes, including uninsured motorist (UM) coverage. The Parishes, who had two vehicles insured on their UFC policy at the time of the accident, argued they should be permitted to stack the UM benefits provided in their policy. UFC refused, stating that the Parishes' policy did not allow stacking. The Parishes sued seeking declaratory judgment. The district court granted summary judgment in favor of UFC. The Supreme Court affirmed, holding that the district court did not err in granting UFC's motion for summary judgment, as, inter alia, the policy was unambiguous and UFC's insurance agreement did not create a reasonable expectation of stacked UM coverage. View "Parish v. Morris" on Justia Law
Krutzenacker v. Davis Surveying, Inc.
Appellees, Kristine Kittleson and James Kurtzenacker, purchased property pursuant to a warranty deed that referenced surveys conducted by Davis Surveying. Appellants, Davis Surveying and Kenneth Davis claimed they had nothing to do with Appellees until after they had purchased their property. Appellees sued Appellants, alleging negligent misrepresentation, negligence, and breach of contract based on a third-party beneficiary theory and claiming that because of Clark's incorrect flagging, they trespassed on neighboring property and needed to remove part of their landscaping and construction work. The district court held that Appellants were liable for breach of contract under a third-party beneficiary theory and for negligent misrepresentation. The Supreme Court affirmed in part and reversed in part, holding (1) the district court erred in determining that Appellees were third-party beneficiaries of a contract for a prior survey, but while the court erred in this reasoning, it reached the right result under Appellees' negligent misrepresentation claim; (2) the court did not err in determining that Appellees were entitled to damages based on negligent misrepresentation; and (3) there was a lack of substantial evidence to support the court's determination that Davis was personally liable to Appellees for work done by Davis Surveying.
View "Krutzenacker v. Davis Surveying, Inc." on Justia Law
Arlington v. Miller’s Trucking, Inc.
Oliver Arlington was employed by Miller's Trucking as a log truck driver and loader operator pursuant to an oral employment agreement. For his work, Miller's paid Arlington twenty-five percent of the "load rate" as calculated by Miller's. Arlington, however, asserted that according to the parties' oral agreement, he should have been paid a salary in the form of annual wages. Arlington filed a wage claim, seeking the pay he alleged he was owed in regular and overtime wages. The Department of Labor and Industry's bureau dismissed Arlington's claim for lack of merit and lack of sufficient evidence. On appeal, a bureau hearing officer dismissed Arlington's claim. The district court affirmed. The Supreme Court reversed, holding (1) the hearing officer acted arbitrarily and capriciously in failing to require Miller's to produce material requested by Arlington and in refusing to admit tendered evidence, prejudicing the substantial rights of Arlington, and the district court erred in affirming the hearing officer's judgment; and (2) the hearing officer and district court incorrectly determined that Arlington engaged in activities of a character directly affecting the safety of the operation of motor vehicles in interstate commerce and thus was exempt from overtime requirements. Remanded. View "Arlington v. Miller's Trucking, Inc." on Justia Law
Olsen v. Milner
This appeal arose from a dispute between two neighboring property owners regarding a workshop addition to the home of Appellants, Neil and Seth Milner (Milner). The addition violated the city's setback requirement, and Appellee Gary Olsen reached an agreement with Milner to sell strip of his property so the building would be in compliance. The parties disagreed, however, about the terms of the agreement. Milner filed suit, and the district court rescinded and set aside the agreement. Olsen was ordered to return Milner's money and costs, and Milner was required to deed the land back to Olsen. After Olsen discovered that Milner's addition encroached past the boundary line of his property, Olsen filed suit alleging trespass and nuisance. The district court found in favor of Olsen and ordered Milner to remove the addition. The Supreme Court affirmed, holding that the district court did not err in determining (1) Olsen's claims were not barred by res judicata; (2) Olsen's claims were not barred by equitable estoppel or waiver; and (3) Milner was liable to Olsen for trespass. View "Olsen v. Milner" on Justia Law
Krajacich v. Great Falls Clinic, LLP
Appellants, three licensed clinic psychologists, were former partners of Great Falls Clinic, LLP, a general limited liability partnership comprised of medical professionals. The Clinic partners, including Appellants, signed a partnership agreement stating that a partner who separates from the partnership in compliance with the agreement's terms will receive a partnership interest subject to reduction for competing after withdrawal or retirement. Appellants subsequently separated from the Clinic and filed a declaratory judgment action when the Clinic refused to pay them their full partnership interest payments. At issue was whether the agreement's restriction, which applied to those engaged in the "practice of medicine," included partners who practiced psychology after separating from the Clinic. The district court granted summary judgment for the Clinic. The Supreme Court affirmed, holding that the district court did not err by (1) holding that the Appellants engage in the "practice of medicine" as used in the partnership agreement; and (2) concluding that the parties' intention regarding the term "practice of medicine" in the language of the agreement was to include the psychologists. View "Krajacich v. Great Falls Clinic, LLP" on Justia Law
Kraft v. High Country Motors Inc.
After a dispute over the purchase of a motor coach, Plaintiff brought suit against Defendants, a used car salesman, a used car dealership, and a bank, asserting claims of, inter alia, breach of contract, fraud, and negligent misrepresentation. Plaintiff subsequently filed a motion to compel discovery, which the district court granted. Defendants did not meet their discovery deadlines, and Defendants' counsel failed to attend several status conferences. The district court then entered a default judgment for Plaintiff as a discovery sanction and later and awarded Plaintiff $74,154 in damages. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) did not abuse its discretion when it entered a default judgment for Plaintiff as a discovery sanction under Mont. R. Civ. P. 37(b); (2) did not abuse its discretion when it refused to set aside the sanction orders; (3) did not err as a matter of law in calculating damages; but (4) failed to property calculate and award prejudgment interest. Remanded. View "Kraft v. High Country Motors Inc." on Justia Law
Hurly v. Lake Cabin Dev., LLC
Lake Cabin Development entered into two separate written agreements with the Robert Hurly and John Hurly families to purchase their respective properties. Pursuant to an agreement, Lake Cabin provided Robert Hurly with a $250,000 option payment. After public opposition to Lake Cabin's proposed development on the land forced Lake Cabin to extend the deadline on the closing date of its agreement with the Hurlys, Lake Cabin declared the contract to be null and void and demanded return of its option payment. Both Hurly families brought separate breach of contract actions. The district court concluded that Robert Hurly was required to refund the $250,000 option payment to Lake Cabin because there was never an enforceable contract between the parties. The Supreme Court reversed, holding (1) the district court erred in determining that the parties had not entered into a binding agreement, and (2) Lake Cabin was not entitled to a refund of the option payment. Remanded.
View "Hurly v. Lake Cabin Dev., LLC" on Justia Law
Pederson v. Rocky Mountain Bank
In 2007, Scottie and Dawn Pederson (the Pedersons) and Rocky Mountain Bank (the Bank) entered into a construction loan agreement pursuant to which the Bank agreed to lend the Pedersons several thousand dollars. In 2008, the Pedersons and the Bank agreed to finance the construction loan through three short term loans. In 2009, the Pedersons tried to refinance their loans but were unable to do so. Due to alleged failures on the part of the Bank, the Pedersons brought suit against the Bank in 2011, asserting claims for, inter alia, negligence, constructive fraud, and negligent misrepresentation. After it was served with the complaint, the Bank filed a Mont. R. Civ. P. 12(b)(6) motion to dismiss, asserting the statutes of limitations had run on all of the Pedersons' claims. The district court granted the Bank's motion and dismissed the Pedersons' claims. The Supreme Court affirmed, holding (1) the applicable statutes of limitations began to run in 2008 because the Pedersons' claims had accrued and they had discovered the facts constituting the claims; and (2) by filing their complaint more than three years later, the Pedersons failed to commence their action within any of the applicable statutes of limitations. View "Pederson v. Rocky Mountain Bank" on Justia Law
Newman v. Lichfield
Judith Newman (Newman), mother and personal representative of the estate of Karlye Newman (Karlye), appealed from certain pretrial and trial rulings made in the district court concerning the suicidal death of Karlye while at a boarding school for troubled teenagers. Newman named as Defendants Robert Lichfield and the World Wide Association of Specialty Programs and Schools. A jury found Defendants were not negligent, did not commit deceit or negligent misrepresentation, and were not liable for the possible wrongful acts of other defendants regarding Karlye's death. The Supreme Court reversed in part, holding that the district court abused its discretion in limiting the scope of evidence regarding foreseeability, as the exclusion of the evidence was highly prejudicial to Newman and largely prevented her from being able to argue foreseeability, duty, and negligence on the part of Defendants. Remanded for a new trial. View "Newman v. Lichfield" on Justia Law
H & H Dev., LLC v. Ramlow
H&H Development, LLC hired Jim Ramlow for legal services. In 2007, H&H filed a pro se complaint in Lake County against Ramlow and his law firm for professional negligence. Eleven days later, H&H, through counsel, filed a complaint in Flathead County against Eagle Bend, seeking damages based on allegations similar to those in the Lake County complaint. H&H settled with Eagle Bend. In 2010, H&H filed an amended Flathead County complaint that named Ramlow and his firm as defendants and included a lawyer's signature. The district court subsequently declared the Lake County complaint null and void after determining that a non-lawyer could not file a complaint on behalf of a limited liability company. Thereafter, the court granted summary judgment to Defendants on the amended complaint based upon the running of the applicable statute of limitations. The Supreme Court reversed, holding that a district court has discretion to determine whether a corporation should be able to relate back to an amended complaint signed by a lawyer, to its original, pro se complaint. Remanded to assess whether Mont. R. Civ. P. 15(c) permitted H&H's amended complaint in Flathead County to relate back to H&H's pro se Lake County complaint. View "H & H Dev., LLC v. Ramlow" on Justia Law