Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Contracts
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A physician assistant was employed at a medical spa operated by a corporation in Vermont, with the president as a co-defendant. The plaintiff worked part-time initially, then full-time beginning in 2018. Her employment agreement was amended that year to provide an annual salary, a bonus formula based on the employer’s gross sales for each calendar year, and paid vacation. She received bonuses in 2018 and 2019 but was terminated in December 2020 without receiving a bonus or payment for unused paid time off for that year.The plaintiff sued in the Vermont Superior Court, Chittenden Unit, Civil Division, alleging breach of contract for underpaid bonuses in 2018 and 2019, failure to pay the 2020 bonus and unused PTO, and statutory wage violations. The trial was split, with contractual claims presented to a jury and wage claims to the court. After the plaintiff’s case, the court granted judgment as a matter of law to the defendants on the 2020 claims, finding insufficient evidence for breach or violation of the implied covenant of good faith and fair dealing. The jury found for the plaintiff on her bonus claims for 2018 and 2019, awarding damages, which the court doubled under Vermont’s wage statutes. Defendants moved for judgment as a matter of law post-trial, arguing insufficient evidence of gross sales, and the trial court ultimately granted their motion after reconsideration, entering judgment for defendants on all counts.On appeal, the Vermont Supreme Court reviewed the trial court’s grant of judgment as a matter of law de novo. The Court affirmed the trial court’s decision, finding the plaintiff presented insufficient evidence that the employer’s gross sales exceeded the thresholds required for higher bonuses in 2018 and 2019. The Court also affirmed judgment for defendants on the 2020 bonus and PTO claims, holding there was no evidence of bad faith or intent to deprive the plaintiff of accrued benefits. The Court reversed the denial of attorney’s fees for defendants and remanded for reconsideration of that request. View "Rossetti v. Bare, Ltd." on Justia Law

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The case concerns a dispute among siblings arising from mutual wills executed by their parents, John and Patricia, after their divorce. The parents structured their assets as joint tenancies with rights of survivorship, intending that the survivor would use the property during their lifetime and then have it pass equally to their three children upon death. In 1997, both parents executed mutual wills in Arizona, agreeing not to alter or revoke them without mutual consent, and expressing a clear intention that all property owned at death would be divided equally among their children. After John’s death in 2010, all jointly titled assets passed to Patricia outside probate. Patricia later executed a new will in 2006, disinheriting her daughter Susan except for small bequests to Susan’s children and transferring major properties to her other two children, Gregory and Nancy, before she died in 2016.A Vermont probate court allowed Patricia’s 2006 will, rejecting Susan’s attempt to admit the earlier will. The Vermont Supreme Court, in a prior appeal, affirmed the admission of the 2006 will but noted Susan might have other remedies. Susan subsequently brought civil claims for breach of contract and unjust enrichment in the Vermont Superior Court, Windsor Unit, Civil Division. The trial court found for Susan on her unjust enrichment claims against Gregory and Nancy, holding that the mutual wills formed a binding contract to divide all property equally among the siblings and that Patricia breached it by transferring properties and disinheriting Susan.On appeal, the Vermont Supreme Court affirmed the trial court’s ruling. The Court held that the mutual wills were a binding contract requiring equal distribution of all property owned by the survivor at death, regardless of how it was acquired. The Court found that Patricia’s actions unjustly enriched Gregory and Nancy and upheld the remedies awarded, including a monetary judgment and a constructive trust. The Court also found no abuse of discretion in the trial court’s award of prejudgment interest on the monetary portion of the judgment. View "Inouye v. Estate of McHugo" on Justia Law

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A renewable energy developer was awarded a standard-offer contract in 2014 to build a solar facility in Bennington, Vermont, with a requirement to commission the project by 2016. The developer repeatedly sought and received extensions to this deadline, while simultaneously pursuing a certificate of public good (CPG), which is also required for construction. The Public Utility Commission (PUC) granted the CPG in 2018, but it was appealed, reversed, and ultimately denied on remand due to violations of local land conservation measures and adverse impacts on aesthetics. The Vermont Supreme Court affirmed the final CPG denial in 2023.While litigation over the CPG was ongoing, the developer continued to seek extensions of its standard-offer contract’s commissioning milestone. The fifth extension request, filed in 2021, asked for a deadline twelve months after the Supreme Court’s mandate in the CPG appeal. The hearing officer recommended granting it, but the PUC did not act on the request until 2024, by which time the developer’s CPG had been finally denied. The PUC dismissed the fifth extension request as moot, finding the contract had expired by its own terms. The PUC also denied the developer’s motion for reconsideration and a sixth extension request, on the same grounds.On appeal, the Vermont Supreme Court reviewed the PUC’s actions with deference, upholding its factual findings unless clearly erroneous and its discretionary decisions unless there was an abuse of discretion. The Court held that the PUC properly concluded the requested extension was moot, the contract was null and void by its terms, and there was no abuse of discretion. The Court also rejected arguments that the PUC’s actions were inconsistent with other cases or violated constitutional rights. The orders of the PUC were affirmed. View "In re Petition of Apple Hill Solar LLC" on Justia Law

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A husband and wife entered into a premarital agreement before their 2018 marriage, which set forth a comprehensive division of assets in case of divorce. The agreement categorized both parties’ assets and anticipated inheritances as separate property, except for their marital home. It specified that, upon divorce, the wife would receive 50% of the increase in the appraised value of the marital home, paid by the husband in installments. The agreement also required proportional contributions to living expenses, allocation of taxes, and provided for attorney’s fees if either party breached the agreement.After their separation in 2021, the husband filed for divorce in 2023. Both parties sought enforcement of the premarital agreement in the Vermont Superior Court, Chittenden Unit, Family Division. The wife moved to enforce the agreement, including her share of the marital home’s appreciation and attorney’s fees, arguing the court lacked jurisdiction over the home designated as separate property. The husband claimed offsets for damages the wife allegedly caused to the home and for her failure to pay household expenses and taxes. The family division granted the wife’s motion, enforced the agreement in her favor, and awarded attorney’s fees, ruling that it lacked jurisdiction to consider the husband’s counterclaims, which it said belonged in civil court.The Vermont Supreme Court reviewed the case and held that the family division had jurisdiction to interpret and enforce the premarital agreement—including claims of breach—within the context of divorce proceedings under Vermont statutes. The Court reversed the lower court’s decision and remanded the case to the family division to determine whether the wife materially breached the premarital agreement and to consider appropriate remedies, if any, consistent with principles governing such contracts. View "Gade v. Gade" on Justia Law

Posted in: Contracts, Family Law
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A general contractor was hired to oversee the construction of a hotel in Vermont and subcontracted with a firm to install metal siding panels manufactured by a third party. The subcontractor relied on installation instructions available on the manufacturer’s website, which did not specify the use of a splice plate to connect the panels. The panels were installed without splice plates, and after construction, the panels began to detach from the building, causing some to fall and damage nearby property. The contractor later discovered that the manufacturer had created an instruction sheet in 2006 recommending splice plates, but this information was not publicly available at the time of installation.The contractor initially sued the installer for breach of contract, warranty, and negligence in the Vermont Superior Court, Chittenden Unit, Civil Division. The complaint was later amended to add a product liability claim against the manufacturer. After further discovery, the contractor sought to amend the complaint a third time to add new claims against the manufacturer, arguing that new evidence justified the amendment. The trial court denied this motion, citing undue delay and prejudice to the manufacturer, and granted summary judgment to the manufacturer on the product liability claim and on a crossclaim for implied indemnity brought by the installer, finding both barred by the economic-loss rule.On appeal, the Vermont Supreme Court affirmed the trial court’s decisions. The Court held that the trial court did not abuse its discretion in denying the third motion to amend due to undue delay and prejudice. It also held that the economic-loss rule barred the contractor’s product liability claim, as neither the “other-property” nor “special-relationship” exceptions applied. Finally, the Court found the contractor lacked standing to appeal the summary judgment on the installer’s implied indemnity claim. View "PeakCM, LLC v. Mountainview Metal Systems, LLC" on Justia Law

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Plaintiff Gravel & Shea PC sued defendant Costello, Valente & Gentry, P.C., claiming unjust enrichment for receiving attorney’s fees without compensating plaintiff for work done to procure a settlement. The dispute arose from lawsuits involving an employee’s injury at work and his employer’s worker’s compensation insurance. Plaintiff represented the employer in a lawsuit against its insurer, Cornerstone Risk Management, LLC, while defendant represented the employee in a personal-injury lawsuit against the employer. The employee settled with Lloyd’s of London, Cornerstone’s professional-liability insurer, and defendant received its contingency fee from the settlement proceeds.The Superior Court, Chittenden Unit, Civil Division, granted summary judgment to plaintiff, concluding that under the common-fund doctrine, equities required defendant to contribute to plaintiff’s attorney’s fees. The court found that plaintiff’s efforts in the Cornerstone action led to the settlement from which defendant received its fees. The court also held a bench trial on damages and awarded damages to plaintiff. Defendant appealed, arguing that the trial court improperly expanded the common-fund doctrine and that the facts did not support a claim of unjust enrichment.The Vermont Supreme Court reviewed the case and reversed the trial court’s order granting summary judgment to plaintiff. The Supreme Court held that the common-fund doctrine did not apply because there was no common fund created by plaintiff’s efforts that benefitted both parties. The court emphasized that the common-fund doctrine is limited to cases where a party’s efforts create a fund that benefits others who did not contribute to the litigation costs. The court remanded the case for the trial court to enter summary judgment in favor of defendant, concluding that plaintiff could not maintain an unjust-enrichment claim under the circumstances. View "WWSAF Special Partners Group, LLC (Series D) v. Costello, Valente & Gentry, P.C." on Justia Law

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Anna Dewdney, a children's book author, created a revocable trust in 2011, designating her daughters, Berol and Cordelia Dewdney, and her romantic partner, Ralph Duncan, IV, as beneficiaries. Initially, the trust allocated 40% of the income to each daughter and 20% to Duncan. Anna amended the trust several times, ultimately increasing Duncan's share to 50% and reducing each daughter's share to 25%. Anna passed away in 2016, and Duncan became the sole trustee. Plaintiffs allege Duncan pressured Anna to increase his share and entered into an oral agreement to make them his sole heirs in exchange for the increased distribution.The Superior Court, Windham Unit, Civil Division, granted summary judgment to Duncan on all claims brought by the plaintiffs, including intentional interference with expectation of inheritance (IIEI), breach of contract, promissory estoppel, unjust enrichment, and constructive fraud. The court ruled that plaintiffs needed to seek a remedy in probate court for their IIEI claim, failed to establish breach of contract due to anticipatory repudiation, could not show detrimental reliance for promissory estoppel, were receiving benefits from the trust for unjust enrichment, and did not meet the legal requirements for constructive fraud.The Vermont Supreme Court affirmed the lower court's decision. It recognized the tort of IIEI but held that plaintiffs must first seek a remedy in probate court due to the exclusive jurisdiction over trust administration. The court found no anticipatory breach of contract as Duncan's statement did not constitute a positive and unequivocal refusal to perform. It ruled promissory estoppel inapplicable due to the existence of a contract and lack of detrimental reliance. The unjust enrichment claim was barred as it involved trust administration, and the constructive fraud claim failed for similar jurisdictional reasons. View "Dewdney v. Duncan" on Justia Law

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In 2019, the Vermont Agency of Transportation (AOT) increased the rental fees for hangar space at state-owned airports. Five tenants, who own hangar facilities at the Northeast Kingdom International Airport and the Stowe-Morrisville State Airport, appealed the rate increases to the Transportation Board. They argued that the rent increase did not comply with the terms of their leases and was arbitrary. The leases allowed AOT to adjust rent based on the Consumer Price Index for All Urban Consumers (CPI-U), current market value for the land, and maintenance costs for the airport. The tenants contended that AOT improperly considered changes outside the previous lease term.The Transportation Board consolidated the tenants' appeals and reviewed the administrative records and memoranda submitted by both parties. The Board found that AOT had invested significantly in airport improvements and conducted a market-value analysis for leased space. However, the Board noted that details of the analysis were not included in the administrative record. The Board concluded that AOT was permitted to consider changes to market value and maintenance costs outside of the prior lease term but admonished AOT to provide a clearer analysis in the future.The tenants appealed to the Vermont Supreme Court, arguing that the rent increases were arbitrary and capricious due to a lack of transparent methodology. The Supreme Court affirmed the Board's conclusion that AOT could consider changes outside the prior lease term but reversed and remanded the decision concerning the fairness of the rent increases. The Court held that the Board should have sought a complete record from AOT to determine whether the rent levels were fair and conducted a new adjudication consistent with this opinion. View "In re State Airport Hangar Lease Disputes" on Justia Law

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Robert Caldwell was recruited by Champlain College's then-president Don Laackman in September 2016 and worked as Vice President of Advancement and later as Chief Advancement Officer from January 2017 to September 2019. His role was primarily as chief fundraiser. In fiscal year 2018, he missed his fundraising goal by approximately seventeen percent, and in fiscal year 2019, he missed his goal by more than 56 percent, resulting in a shortfall of over 2.2 million dollars. In May 2019, Caldwell was diagnosed with chronic kidney disease and informed President Laackman of his diagnosis. Laurie Quinn replaced Laackman as interim-president in June 2019 and discussed Caldwell's performance with him in July 2019. Caldwell mentioned he was dealing with health issues. In September 2019, Quinn fired Caldwell, citing his poor fundraising performance.Caldwell sued Champlain College in March 2021, alleging disability discrimination under the Fair Employment Practices Act (FEPA) and promissory estoppel. The Superior Court, Chittenden Unit, Civil Division granted summary judgment in favor of Champlain College on both claims. Caldwell appealed the decision.The Vermont Supreme Court reviewed the case and affirmed the lower court's decision. The court applied the McDonnell Douglas framework for assessing disability discrimination claims and found that Champlain College provided a legitimate, nondiscriminatory reason for Caldwell's termination—his failure to meet fundraising goals. Caldwell failed to provide evidence that this reason was pretextual. Additionally, the court found that Caldwell did not present any evidence of a specific and definite promise that would support his promissory estoppel claim. Therefore, the court affirmed the summary judgment in favor of Champlain College. View "Caldwell v. Champlain College Inc." on Justia Law

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Employee Paul Westcott was terminated by his employer, Mack Molding Co., Inc., for lying about secretly recording conversations at work. Westcott sued the employer, claiming that his recording activities were protected under Vermont’s Fair Employment Practices Act (FEPA) and Worker’s Compensation Act (WCA), and also alleged breach of contract and promissory estoppel.The Superior Court, Windsor Unit, Civil Division, granted summary judgment to the employer. The court concluded that Westcott’s recording activities were not protected under FEPA or WCA. It also found that Westcott could not sustain his breach-of-contract claim because the employee handbook clearly stated that employment was at-will and could be terminated for any reason. Additionally, the court held that Westcott’s promissory estoppel claim failed because his termination was not connected to any promise made by the employer regarding his return to work after short-term disability leave.The Vermont Supreme Court reviewed the case and affirmed the lower court’s decision. The Supreme Court held that Westcott’s covert recording of workplace conversations did not constitute protected activity under FEPA or WCA. The court also agreed that the employee handbook did not create a binding contract that altered Westcott’s at-will employment status. Furthermore, the court found no basis for the promissory estoppel claim, as there was no specific promise breached by the employer related to Westcott’s termination.In summary, the Vermont Supreme Court affirmed the lower court’s grant of summary judgment to the employer, concluding that Westcott’s recording activities were not protected, his employment was at-will, and there was no breach of a specific promise that could support a promissory estoppel claim. View "Westcott v. Mack Molding, Co., Inc." on Justia Law