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Tag Archives: Contract

Contract – False Claims Act – Student Loan Corporations – ‘Arm of the State’ Analysis (access required)

U.S. ex rel. Jon H. Oberg v. Kentucky Higher Educ. Student Loan Corp. A district court did not use the correct test when analyzing whether student loan corporations formed by four different states may be sued in a qui tam action alleging they defrauded the U.S. Department of Education; the 4th Circuit vacates a lower court’s dismissal of the suit on the ground that the corporations were “state agencies” not subject to suit under the False Claims Act, and remands for the district court to apply an “arm of the state” analysis.

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Contract – Consumer Protection Code – ‘Consumer Credit Sale’ – Interest Charge upon Default (access required)

Cason Companies v. Gorrin In a “Personal Credit Application Form,” the defendant-purchasers agreed to pay each of the plaintiff-seller’s invoices in full within 30 days and agreed that, in the event of their default, finance charges of 18 percent per annum would accrue. The parties’ contract was not a “consumer credit sale” within the meaning of the S.C. Consumer Protection Code because the debt was neither “payable in installments” nor was a credit service charge made. The Code’s definition of “credit service charge” states, “The term does not include charges as a result of default….”

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Contract – Implied Warranty of Merchantability – Disclaimer – Product Package – Roofing Tiles – Civil Practice – Class Action – Class Definition (access required)

Brooks v. GAF Materials Corp. The defendant-manufacturer contends that plaintiffs are bound by their contractor’s knowledge of the manufacturer’s warranty disclaimer; however, plaintiffs contend their contractor was the manufacturer’s agent, so his knowledge of the disclaimer cannot be imputed to them.

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Contract – Settlement Agreement – Third Party Mention – No Condition Precedent (access required)

Byrd v. Livingston This lawsuit arose after the defendant-seller granted an easement to defendant TIAA Timberlands, II, LLC around the same time she sold the land at issue to the plaintiff-buyer. After mediation, the parties entered into an “agreement in principle” which relocated the easement “express grant superseding and canceling the 66’ grant, son’s parcel included.”

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Banks & Banking – Contract – Loan — Letter of Credit – Default – Civil Practice – Preliminary Injunction (access required)

Hook Point, LLC v. Branch Banking & Trust Co. Where the plaintiff-borrower had defaulted in several ways on its promissory note to the defendant-bank, the bank was entitled to draw on the borrower’s “last resort” letter of credit. We reverse the trial court’s grant of a preliminary injunction, which barred the bank from drawing on the letter of credit.

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Contract – NASCAR Driver – Suspension – Positive Drug Test – Waiver of Claims (access required)

Mayfield v. Nat’l Ass’n for Stock Car Auto Racing Inc. Race car driver Jeremy Mayfield, who was suspended by NASCAR after testing positive for methamphetamine, cannot overturn dismissal of his suit against NASCAR including claims for defamation and breach of contract, as he has waived his claims under agreements he signed with NASCAR; the 4th Circuit says the district court properly dismissed Mayfield’s case and did not abuse its discretion in denying defendant’s motions to reconsider and to amend.

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Civil Practice – Statute of Limitations – Real Property – Contract – Lease – Insurance Proceeds (access required)

Clifton, LLC v. Tadlock This is a dispute over a lease and the proceeds of a fire insurance policy taken out by the parties pursuant to an alleged oral modification to the lease. As such, plaintiff’s claims are subject to S.C. Code Ann. § 15-3-530(1)’s three-year limitations period rather than the 10-year statute of limitations applicable to actions arising out of an interest in land or the 20-year statute of limitations applicable to sealed instruments. The court grants defendant’s motion for summary judgment.

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Contract – Civil Practice – Venue – Forum Selection Clause – Yellow Pages Ad – Website Terms & Conditions (access required)

Leventis v. AT&T Advertising Solutions Where a lawyer signed a Yellow Pages ad order that said he had read and agreed to the Yellow Pages company’s additional terms and conditions – which included a forum selection clause naming Georgia as the venue for contract disputes – the lawyer is bound by the forum selection clause. Defendant’s motion to dismiss is granted.

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Contract – Government Project – Consulting Subcontractor – Tort/Negligence – Defamation (access required)

Shirvinski v. U.S. Coast Guard Plaintiff sub-subcontractor on defendant Coast Guard’s Deepwater Acquisition Project cannot sue the Coast Guard for defamation and related tort claims for alleged injuries from termination of its at-will consulting agreement and removal of its name from a list of government contractors; the 4th Circuit says permitting these claims to go forward would reward artful pleading and impermissibly constitutionalize state tort law, and it affirms summary judgment for defendants.

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