Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Contracts
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Defendants, Nancy and Thomas Bernheim, appealed the trial court’s summary judgment decision granting plaintiff GEICO Insurance Company’s claim against them for reimbursement of $10,000 that GEICO had paid defendants under the medical-payments provision of their automobile insurance policy. Although the Supreme Court agreed with the trial court that defendants should have reimbursed GEICO, it reversed and remanded for a determination of the proper reimbursement amount. View "GEICO Insurance Co. v. Bernheim" on Justia Law

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At the heart of this case was a dispute between developer, Birchwood Land Company, Inc., and contractor, Ormond Bushey & Sons, Inc. over a construction contract.  The developer sued for breach of contract, claiming mainly that the contractor had removed excavated sand from the construction site without permission.  The contractor counterclaimed for amounts due under the contract. The court found that the contractor breached the contract and granted the developer damages for the lost sand. The unpaid balance owed on the contract was offset by the damages. On appeal, the contractor argued that the court erred in denying its request for interest penalties and attorney's fees as the substantially prevailing party. The developer argued that the court erred in limiting damages for the sand removal, denying its request for punitive damages, granting prejudgment interest on contractor's net recovery, and denying its claim for slander of title. Upon review, the Supreme Court concluded the evidence in the record supported the trial court's judgment in this case and affirmed the outcome. View "Birchwood Land Company, Inc. v. Ormond Bushey & Sons, Inc." on Justia Law

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Plaintiffs Patrick and Terese Ayer appealed a trial court's order granting summary judgment to Frances Harris and Louis Hemmingway, III. The dispute arose over plaintiffs' attempts to collect a debt from defendant Hemmingway individually, and doing business as Hemmingway Construction. Plaintiffs obtained a default judgment against Hemingway in February 2001. Plaintiffs subsequently secured a nonpossessory writ of attachment against Hemingway's nonexempt goods and estate. In 2010, Frances Harris brought an unrelated action against Hemingway for damages. The trial court issued a stipulated judgment order that, among other things, awarded Harris judgment against Hemingway plus interest from September 8, 2005 until the release of the lien in favor of plaintiffs, required Hemingway to keep current on payments to plaintiffs pursuant to a written payment agreement signed by Hemingway and plaintiff Terese Ayer, and provided that if Hemingway defaulted on the lien, he would be liable to Harris for any costs, including attorney's fees, to obtain a release of the lien. In May 2011, plaintiffs filed a complaint seeking to foreclose on their judgment lien. Plaintiffs cited a 2006 trial court order as controlling and asked the court to renew or revive it. Hemingway filed an unverified answer to plaintiffs' complaint, acknowledging his debt to plaintiffs and offering to make immediate payments pursuant to the 2010 agreement. Plaintiffs moved for a default judgment, but the court denied their request. Harris responded to this order; Hemingway did not. Harris later moved for summary judgment, and plaintiffs filed a cross-motion for summary judgment and default.  In January 2011, the trial court granted Harris's motion, and found that plaintiffs' judgment lien was no longer effective because more than eight years had elapsed from the issuance of the original final judgment on which it was based. In reaching its conclusion, the court rejected plaintiffs' assertion that the 2001 judgment had been renewed or revived by the 2006 stipulated amended order. This appeal followed. Agreeing with the trial court's reason to dismiss plaintiffs' motion, the Supreme Court affirmed. View "Ayer v. Hemingway" on Justia Law

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The parties in this case entered into a real estate agreement thirteen years ago. The trial court concluded that the agreement constituted a contract for deed and that the purchasers had therefore acquired an equitable interest in the property in question. The court initiated a foreclosure on that interest, even though it had not been pled. Plaintiffs, the purchasers as found by the superior court, David and Barbara Prue, appealed the foreclosure. Defendant, the seller as found by the court, Larry Royer, appealed the court’s conclusions that the contract was an enforceable contract for deed. Upon review of the matter, the Supreme Court affirmed the court’s conclusion that the parties entered into a contract for deed and that it was enforceable, but reversed the foreclosure decree as premature. View "Prue v. Royer, Sr." on Justia Law

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Appellant landlord appealed the grant of partial summary judgment in favor of the tenant. The trial court concluded that the landlord's eviction of the tenant from a property was wrongful. The landlord also appealed the court's denial of a post-trial motion that tenant was not liable to landlord for rent that accrued post-eviction. Because landlord's notice of default was defective, and because a wrongful eviction releases a tenant from liability for rent accrued post-eviction, the Supreme Court affirmed the grant of partial summary judgment. View "Vermont Small Business Development Corp. v. Fifth Son Corp." on Justia Law

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Defendant Donna Mae Peck appealed a superior court judgment that granted plaintiff Victor Shattuck a writ of possession for the parties' former residence in Cavendish and that denied her counterclaim for an equitable interest in the Cavendish property and another former residence in Springfield. Between December 1997 and June 1999, plaintiff purchased two adjoining parcels of land in Cavendish. He made most of the payments for the first parcel, but defendant made a significant financial contribution toward payment of the second parcel. In 2001, plaintiff conveyed the Cavendish properties to himself and defendant as joint tenants with rights of survivorship, and defendant conveyed the Springfield property to herself and plaintiff as joint tenants with rights of survivorship. The parties lived together in Cavendish until June 2010, when plaintiff decided to end their relationship. Following an angry confrontation, defendant obtained a relief-from-abuse order against plaintiff and was awarded sole possession of the Cavendish property. Plaintiff subsequently filed a complaint in superior court seeking to evict defendant from the Cavendish property. Defendant answered and counterclaimed, alleging that the Cavendish and Springfield properties were the subject of a partnership agreement between the parties. Alleging that she had been induced to convey the Springfield properties by plaintiff's fraudulent misrepresentations, she also sought equitable relief through imposition of a resulting or constructive trust. She later claimed that the Cavendish property was also held in a constructive trust for her benefit. The Supreme Court affirmed the superior court: "pursuant to the principles of equity, not every unmarried cohabitant who confers an economic benefit on his or her partner is entitled to payback if the relationship ends. In this case, defendant may or may not ultimately be entitled to restitution, whether in the form of a constructive trust or a money judgment, for her substantial investments in the Cavendish and Springfield properties, and any such judgment could well be subject to offsets for benefits received." View "Shattuck v. Peck" on Justia Law

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This litigation arose from the construction of a 143-unit condominium complex. Plaintiff Long Trail House Condominium Association appealed a trial court’s order granting summary judgment to defendant general contractor Engelberth Construction, Inc. on its complaint. The Association argued that the court erred in: (1) applying the economic loss rule to bar its negligence claim; and (2) dismissing its breach of implied warranty claim. Upon review of the trial court record, the Supreme Court affirmed, finding no error in the trial court's decision. View "Long Trail House Condominium Assoc. v. Engelberth Construction, Inc." on Justia Law

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Appellant Foti Fuels, Inc. (Foti), a fuel distributor, appealed a Civil Division’s judgment in favor of Evans Group, Inc. (Evans), also a fuel distributor. Evans cancelled its agreement to sell fuel to Foti for resale and delivery to a retail gasoline station, and sued for payment of an outstanding balance of $68,864. Foti claimed the unilateral termination of the agreement violated the federal Petroleum Marketing Practices Act (PMPA) which regulates fuel franchise agreements. The trial court determined that Foti was not a "franchisee" within the meaning of the PMPA and, therefore, not entitled to its contract termination protections. Upon review of the matter, the Supreme Court affirmed. View "Evans Group, Inc. v. Foti" on Justia Law

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Appellants Warren and Wynne Kirschbaum appealed a trial court's ruling in favor of Appellee First Quality Carpets, Inc. arising from a dispute they had over carpet installed in 2007. The Kirschbaums argued that the civil division erred in awarding First Quality attorney's fees under 9 V.S.A. 4007(c) of the Prompt Pay Act because that section of the statute authorizing attorney's fees recovery effectively expired in 1996 pursuant to a sunset provision included in the Act. Alternatively, the Kirschbaums argued that because they withheld payment to First Quality in good faith, they were entitled to a directed verdict and that First Quality should not have been awarded attorney's fees under 4007(c). Finally, the Kirschbaums argued that the court erred in denying their counterclaim under the Consumer Fraud Act. Upon review, the Supreme Court affirmed the trial court in all respects. View "First Quality Carpets, Inc. v. Kirschbaum" on Justia Law

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James Bennett, the father of Brooke Bennett and the administrator of her estate, appealed a trial court's declaration of no coverage for the claims made in the lawsuit filed against homeowner Denise Woodward for negligent supervision and damages arising out of the abduction, assault, and death of his daughter, Brooke. Woodward was formerly married to Brooke’s uncle, Michael Jacques, who was alleged to have kidnapped, sexually assaulted, and murdered Brooke. Woodward's insurer brought a declaratory judgment action asking the trial court to hold that its policy does not cover these claims. The trial court decided the case on summary judgment, holding that the insurance policy excluded coverage and Bennett appealed. The trial court granted summary judgment for the insurer, concluding that insurer owed no duty of defense or indemnification in the underlying suit in part because the policy barred coverage for intentional acts by "an insured" that are not "occurrences." The court rejected Bennett's argument that the separate insureds, or severability clause provided coverage for homeowner because the complaint alleged that the uncle committed intentional acts. On appeal, father reiterated his argument that Jacques' alleged intentional acts did not preclude coverage for homeowner because the policy contained a severability clause. Upon review, the Supreme Court found that the plain meaning of the terms in the insurance policy at issue did not include intentional tortious acts nor allowed for severability under the facts of this case. View "Co-operative Insurance Companies v. Woodward" on Justia Law