Justia U.S. 10th Circuit Court of Appeals Opinion Summaries
Articles Posted in Contracts
Kerber v. Qwest Group Life Insurance Plan
The Plaintiffs in this action were participants and beneficiaries of a life insurance plan offered by Defendant Qwest Communications International. In 2007, Plaintiffs filed a lawsuit against Qwest, arguing that the Plan made certain changes in violation of ERISA. The district court granted summary judgment in favor of Qwest. Plaintiffs raised seven issues on appeal to the Tenth Circuit, the sum of which was that the Plan misrepresented certain changes that unreasonably impacted employees' retirement benefits. Upon careful consideration of the arguments and applicable legal authority, the Tenth Circuit found that any misrepresentations were not material or in violation of ERISA. The Court affirmed the district court's grant of summary judgment in favor of the Plan.
Crowe & Dunlevy, P.C. v. Stidham
This case stems from Plaintiff Crowe & Dunlevy, P.C.'s (Crowe) legal representation of the Thlopthlocco in the Muscogee (Creek) Nation District Court in 2007. Nathan Anderson, a member of the Thlopthlocco Nation attempted a coup d'etat by declaring himself the only valid leader and purported to appoint a new government. While the "coup" proceeded through the tribal courts, the matter of paying the legal bill for Crowe's representation came up. With the "official" government in dispute, and tribal business halted from an injunction issued until the case was resolved, Mr. Anderson argued that his legal fees should be paid from the tribal treasury. The tribal district court dismissed his claim, reasoning that until the litigation was resolved, no one knew who had authority to spend Thlopthlocco funds. The court then ordered that any attorney fees paid from the tribe's treasury be refunded. Instead of complying with the order, Crowe filed suit with the federal district court, seeking to enjoin the tribal court from ordering a return of the legal fees. The federal court ruled in favor of Crowe, and the tribal judge, Defendant Judge Gregory Stidam, appealed. On appeal to the Tenth Circuit, Judge Stidham argued the case should have been dismissed because he was entitled to sovereign and judicial immunity. The Tenth Circuit found that the lower court did not abuse its discretion in granting the injunction against Judge Stidham's order. The Court affirmed the lower court's decision.
Wright v. Compgeeks.com
In 2001, a company calling itself âComputer Geeks, a California corporation,â sued Plaintiff Jason Wright in Utah state court for failing to assign a domain name. Mr. Wright did not respond to the companyâs motion for summary judgment, and in 2006, the state court granted the motion and entered judgment against him. Mr. Wright hired Appellant-Attorney Russell Cline to have the judgment set aside or modified. In 2008, Appellant filed a motion to set the judgment aside. As it turns out, âComputer Geeks, a California corporationâ is not related to the company that held the Utah state judgment. Appellant was made aware of the mistaken identity soon after Appellant served âComputer Geeks, a California corporation.â Appellant represented to the clerk of the district court that he had properly served âComputer Geeks, a California corporation.â The clerk entered a default, and Appellant moved for a default judgment. Within a few weeks, Defendant CompGeeks.com moved to vacate the default judgment. At the hearing, Appellant acknowledged he knew the difference between the two companies, but that he served the correct holder of the Utah judgment. The district court found that Appellant had filed a frivolous action in violation of state law, and dismissed the case. The court referred Appellant to the state attorney disciplinary committee, and awarded attorneyâs fees to CompGeeks.com, making Mr. Wright and Appellant jointly and severally liable for the award. Appellant moved to vacate the award of attorneyâs fees, alleging the district court abused its discretion in its decision. On review, the Tenth Circuit âsympathize[d] with the district courtâs frustration with [Appellantâs] conduct,â but held that â Rule 11 does not allow a sua sponte award of attorney fees.â Accordingly the monetary sanctions order was vacated, and the Court remanded the case for further proceedings.
Lee v. Max International, Inc.
Plaintiffs Markyl Lee and Promises to Keep, LLC, failed to produce documents in response to a discovery request. They then proceeded to violate two judicial orders compelling production of those documents. After âpatiently affording the plaintiffs chance after chance,â the district court dismissed the case as a sanction against Plaintiffs. Plaintiffs appealed the dismissal. The Tenth Circuit held that â[o]ur justice system has a strong preference for resolving cases on their merits whenever possible, but no one. . .should count on more than three chances to make good a discovery obligation.â The Court affirmed the lower courtâs dismissal of Plaintiffsâ case.
C.O.P. Coal Development Co. v. C.W. Mining Company
This appeal asks whether the bankruptcy court correctly determined that an operating agreement between the Debtor C.W. Mining Company (CWM) and Appellant C.O.P. Coal Development Company (COP) was property of the debtor's bankruptcy estate, and could therefore be sold off by the trustee. Appellant claims that the agreement automatically terminated shortly after the bankruptcy petition was filed, and that the bankruptcy court erred in including it. The terms of the operating agreement provided that it should cancel should CWM default on its payments to COP before the close of business on January 8, 2008. On that day, at 3:36PM, an involuntary bankruptcy petition was filed against CWM in bankruptcy court. CWM argued to the bankruptcy court that the operating agreement automatically terminated with the filing of the bankruptcy petition, but the court disagreed. The trustee assumed the operating agreement and sold mine assets. This Court affirmed the lower court's decision, finding that the operating agreement did not automatically terminate, and could be sold by the bankruptcy trustee.
Geras v. International Business Machines
The Court affirmed the lower courtâs decision dismissing Plaintiff-Appellant David Gerasâ contract claim for unpaid commissions and severance against his former employer International Business Machines (IBM). IBM canceled its sales incentive plan under which Geras maintained he accrued sales commissions worth over $100,000. The Court held that under Colorado law, the planâs incentive letter contained an effective disclaimer, and did not manifest an intent to be bound by the terms of its plan.