Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Bankruptcy
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Defendants challenged the civil division’s order granting plaintiff Sharond Hill’s request to vacate its previous order dismissing her complaint. In February 2019, plaintiff filed a complaint against defendants Springfield Hospital (Springfield) and Emergency Services of New England, Inc. (Emergency Services) alleging that defendants were negligent in failing to timely diagnose her with appendicitis when she went to the Springfield emergency department in April 2016. Both defendants filed answers denying plaintiff’s claims. In July 2019, Springfield notified the civil division and the parties that it had filed a voluntary petition of bankruptcy in the U.S. Bankruptcy Court and that pursuant to § 362(a) of the Bankruptcy Code, plaintiff’s claims against it were automatically stayed. In response, the civil division issued an order dismissing plaintiff’s case without prejudice. The civil division held a status conference in September 2020; plaintiff’s counsel indicated at the conference that Springfield Hospital may have emerged from bankruptcy and, if not, he might seek relief from the bankruptcy stay. The bankruptcy court issued an order closing Springfield’s bankruptcy case in July 2021. In October 2021, plaintiff moved to vacate the dismissal and reopen her malpractice case. In her motion, plaintiff asserted that none of the conditions set forth in the dismissal order had technically occurred. Alternatively, plaintiff argued that even if one of the conditions had occurred, she should be excused for failing to file her motion to reopen within thirty days because she did not receive timely notice of the occurrence from defense counsel. Finally, she argued that her claim against Emergency Services should never have been dismissed because Emergency Services was not part of the bankruptcy proceeding. In March 2022, the civil division granted plaintiff’s motion, stating that it was “persuaded that there was no legal or equitable basis to dismiss the action simply because one of the two defendants filed a bankruptcy petition.” The court stated that it had intended to simply stay the action and that dismissal would be unjust. "The record is clear that plaintiff’s own lack of diligence, not the 2019 dismissal order or defendants’ conduct, is the reason for her situation." The Vermont Supreme Court agreed with defendants that there was no legal basis for the court to grant such relief, and therefore reversed. View "Hill v. Springfield Hospital, et al." on Justia Law

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Following a jury trial, Defendants R. Brown & Sons, Inc., a scrap metal hauling company, and its principal, Robert Brown were found liable for breach of contract, common law fraud, trespass, breach of the implied covenant of good faith and fair dealing, and consumer fraud.  Each of these claims stemmed from Defendants' commercial dealings with Plaintiff Rathe Salvage, Inc., a scrap metal salvage yard where Defendant would crush cars and transport the scrap for sale to steel mills.  Defendant was later granted judgment as a matter of law by the trial court overturning the jury's finding of a consumer fraud violation.  Defendant appealed, arguing that: (1) the trial court erred in denying judgment in its favor on the remaining claims because the verdicts were based on insufficient evidence; (2) it was entitled to a new trial because Rathe Salvage's attorney improperly argued to the jury that opposing counsel was implicated in withholding evidence; and (3) the case should be remanded due to the trial court's refusal to conduct a Daubert hearing on the admissibility of hauler's polygraph, or lie detector, testing before excluding such evidence from trial.  Rathe Salvage cross-appealed the trial court's judgment in favor of Defendant on the consumer fraud claim.  Upon careful consideration of the trial court record, the Supreme Court affirmed the judgment of the trial court on all four issues. View "Rathe Salvage, Inc. v. R. Brown & Sons, Inc." on Justia Law