The Supreme Court affirmed the judgment of the trial court in this complex business dispute, holding that neither party successfully demonstrated a substantial right that had been affected or that an error likely occurred at the trial court.Plaintiff brought this complaint seeking a declaratory judgment setting forth his rights under an Employment Agreement and Level Four Holdings Agreements. Plaintiff also alleged claims for tortious interference with a contract against Penta Mezzanine SIBC Fund I, L.P. (Penta Fund), Seth Ellis, and Level Four SBIC Holdings. The trial court (1) determined it did not have subject matter jurisdiction over Plaintiff's declaratory judgment claim; (2) dismissed the tortious interference with contract claim against all defendants; and (3) denied motions to dismiss for lack of personal jurisdiction by Level Four Holdings and Ellis. The Supreme Court affirmed, holding that there was no error in the proceedings below. View "Button v. Level Four Orthotics & Prosthetics, Inc." on Justia Law

The First Circuit affirmed the order of the district court entering summary judgment in favor of Defendant and dismissing Plaintiff's claims for fraud, civil conspiracy, breach of fiduciary duty, and unjust enrichment, holding that Plaintiff failed to make a sufficient showing on essential elements of her case.In 2014, Plaintiff sold her special limited partnership interests in an affordable housing property for $1.5 million. In 2016, the property sold for $11.7 million. Plaintiff brought this lawsuit alleging claims for civil conspiracy, fraud, unjust enrichment, and breach of fiduciary duty, alleging that she was fraudulently led to believe that Defendant had power over the property and would block any attempt to sell or refinance it. The district court entered summary judgment for Defendant. The First Circuit affirmed, holding (1) Plaintiff failed to establish that Defendant intentionally misrepresented the value of the property and Plaintiff's special interest; and (2) Plaintiff's remaining causes of action were unsuccessful in the absence of wrongdoing or foreseeable damages. View "Katz v. Belveron Real Estate Partners, LLC" on Justia Law

Plaintiffs filed suit against defendants, alleging unfair competition in violation of section 43 of the Lanham Act. A jury found that defendants engaged in materially false or misleading advertising about their competing whale-watching-cruise business in violation of the Lanham Act, but awarded $0 in actual damages and declined to award an equitable remedy of disgorgement of profits. The district court then issued a permanent injunction prohibiting defendants from engaging in specified future acts of false advertising, denied plaintiffs' request for attorneys' fees, and entered judgment.The Ninth Circuit reversed the judgment to the extent that it denies an award of profits and remanded for a new trial on that issue. The panel concluded that, under Romag Fasteners, Inc. v. Fossil, Inc., 140 S. Ct. 1492 (2020), the district court erred in instructing the jury on the element of willfulness. Instead, defendant's mental state is a highly important consideration in determining whether an award of profits is appropriate. The panel declined plaintiffs' request to remand the case with specific instructions to conduct a new jury trial, declining to apply judicial estoppel to either side and holding that Federal Rule of Civil Procedure 39(c) does not require that the retrial on remand be a jury trial. The panel also vacated the district court's attorneys' fee determination because retrial of the disgorgement issue could affect the assessment of some of the relevant circumstances. View "Harbor Breeze Corp. v. Newport Landing Sportfishing, Inc." on Justia Law

TCI Pacific Communications, LLC (“TCI”) appealed a district court’s judgment holding it liable to Cyprus Amax Minerals Co. (“Cyprus”) for contribution under 42 U.S.C. sections 9601(9)(B), 9607(a), and 9613(f) of the Comprehensive Environmental Response and Liability Act (“CERCLA”). This case involved claims brought by Cyprus to determine whether TCI could be held liable for environmental cleanup costs relating to zinc smelting operations near Collinsville, Oklahoma. The Bartlesville Zinc Company, a former subsidiary of Cyprus’s predecessor, operated the Bartlesville Zinc Smelter (the “BZ Smelter”) from 1911 to 1918, near Collinsville, Oklahoma. TFMC owned and operated another zinc smelter (the “TFM Smelter”) from 1911 to 1926. This case does not concern cleanup work at either smelter, but rather is an action by Cyprus seeking cost recovery and contribution for its remediation in the broader Collinsville area, within the Collinsville Soil Program (“CSP”) Study Area. Cyprus sought to hold TCI liable as a former owner or operator of the TFM Smelter whose waste was located throughout the CSP Study Area. The district court granted partial summary judgment to Cyprus and pierced the corporate veil to hold TCI’s corporate predecessor, the New Jersey Zinc Company (“NJZ”), liable as the alter ego of the Tulsa Fuel & Manufacturing Co. (“TFMC”). The district court then interpreted CERCLA and held that TCI was liable as a former owner/operator of a CERCLA “facility.” Finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "Cyprus Amax Minerals Company v. TCI Pacific Communications" on Justia Law

The Supreme Court reversed the decision of the district court ordering an Iowa limited liability company (LLC) to pay its former manager the attorney fees he incurred litigating against the LLC pursuant to Iowa Code 489.408(1), holding that, under the plain language of the statute, a manager or former manager cannot recover from the LLC fees incurred litigating against the company.The district court ruled that the LLC was liable to the manager for indemnification of attorney fees and expenses he incurred defending himself against claims brought against him by the LLC for alleged breach of his duties as manager. The district court awarded the manager attorney fees and expenses but declined to award him "fees on fees," or the additional fees incurred enforcing the statutory fee claim. The Supreme Court reversed the award of attorney fees, holding that the the fees and expenses at issue were not incurred on behalf of the LLC, and therefore, the manager could not recover them from the LLC under section 489.408(1). View "Goche v. WMG, L.C." on Justia Law

In this dispute involving a limited liability company (LLC) and its members the Supreme Court affirmed the judgment of the district court ordering an accounting, declaring the membership rights of the parties, quieting title to certain real estate, and establishing a resulting trust, holding that there was no merit to the assigned errors on appeal.On appeal, one member of the LLC asserted that the district court erred in denying a request for a jury trial on its legal counterclaims. The LLC cross-appealed, asserting that the trial court erred in denying a request to dissociate one of the members. The Supreme Court affirmed, holding that all assignments of error were without merit. View "Schmid v. Simmons" on Justia Law

Property owners (Appellants) paid nearly $12 million in transfer taxes, penalties, and interest based on a 2014 merger that changed their parent companies. Both before and after the merger, Appellants directly owned two properties; only indirect ownership changed. They sought a refund of the sums paid under the San Francisco Business and Tax Regulations Code (SFBTRC).The court of appeal affirmed the dismissal of the suit, rejecting arguments that the tax exceeded San Francisco's authority under Revenue and Taxation Code section 11911 because it uses a higher tax rate and an expanded tax base. San Francisco, as a charter city and a “city and county,” is not bound by the limitations of section 11911. The purported failure to comply with notice and hearing requirements does not entitle Appellants to a refund. At the time of the merger, SFBTRC was triggered as to Appellants’ real property by the transfer of ownership interests in Appellants’ parent entity, consistent with Revenue and Taxation Code section 64(c)(1). SFBTRC 1108 applied due to the termination of Appellants’ parent, a partnership. Appellants are not entitled to a refund based on their argument that San Francisco assessed the wrong entities View "CIM Urban REIT 211 Main Street (SF), L.P. v. City and County of San Francisco" on Justia Law

This case presents a coda to its companion appeal, No. 20-50671. The Fifth Circuit affirmed the district court's post-judgment order, as modified, charging defendant's membership interest in M. G. & Sons, a single-member LLC, and requiring both defendant and M. G. & Sons to obtain leave of court before transferring assets to third parties. The court stated that it is well established that courts have the power to enforce their judgments through injunctive relief. The court concluded that the district court properly exercised this power, in addition to charging defendant's interest in M. G. & Sons according to Texas law, by restricting Hughes from transferring assets to evade the district court's judgment. View "Thomas v. Hughes" on Justia Law

The Fifth Circuit slightly modified the district court's final judgment to prevent the possibility of double recovery and otherwise affirmed the district court's final judgment, attorney's fee award, and denial of post-judgment relief on various grounds. The court concluded that the district court did not err in limiting defendant's testimony as it did; the evidence was sufficient for the jury to conclude that defendant and Performance Probiotics misappropriated trade secrets; defendant breached her fiduciary duty to PPI; defendant fraudulently transferred assets in violation of the Texas Uniform Fraudulent Transfer Act; and to support the jury's decision to pierce the corporate veils of PPI and Performance Probiotics.The court also concluded that the district court did not err by retaining jurisdiction over API or abuse its discretion either in denying defendant's motion for a new trial or in awarding attorney's fees and expenses. The court clarified that the district court's judgment could be read to allow for a duplicative recovery and thus modified the judgment affirmatively to state that plaintiffs may not recover the amount of the Comal County judgment twice. View "Thomas v. Hughes" on Justia Law

Based upon its belief that Walmart has failed to comply with the terms of an injunction, Cuker sought to initiate contempt proceedings against Walmart, requesting supplemental damages for Walmart's post-verdict use of its trade secrets.The Eighth Circuit affirmed and concluded that the district court did not err in denying the request to commence contempt proceedings because Cukor had failed to make a prima facie case showing a violation of, or refusal to follow, a court order. In this case, Cuker's claim that the district court did not consider its arguments or evidence is belied by the record. Upon review of the record and Cuker's arguments, the court stated that Cuker's challenges to the district court's order go to the weight the court gave its evidence, not a failure to consider the evidence. View "Wal-Mart Stores, Inc. v. Cuker Interactive, LLC" on Justia Law