Justia Business Law Opinion SummariesArticles Posted in Vermont Supreme Court
Beldock v. VWSD, LLC et al.
Plaintiff Gregg Beldock contracted to purchase four solar assets in development from VWSD, LLC. Following allegations of breach, VWSD sold three of the solar assets to a third party, Green Lantern. Beldock filed a complaint against VWSD alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment, and against Green Lantern and its president alleging tortious interference with contract and unjust enrichment. VWSD counterclaimed for breach of contract. The trial court granted summary judgment in favor of all three defendants on Beldock’s claims and in part in favor of VWSD on its counterclaim. The Vermont Supreme Court agreed with the trial court’s grant of summary judgment regarding all claims against Green Lantern and its president and the implied-covenant claim against VWSD. However, because portions of the contract were ambiguous and a genuine dispute of material facts remained, the Court concluded summary judgment was inappropriate for Beldock’s breach-of-contract and unjust-enrichment claims against VWSD and VWSD’s counterclaim for breach of contract. Accordingly, judgment was reversed and the matter remanded for further proceedings. View "Beldock v. VWSD, LLC et al." on Justia Law
Sutton v. Purzycki
The issue presented in this case before the Vermont Supreme Court stemmed from a dispute between former business partners and the turnover of records pursuant to a stipulated judgment entered following the dissolution of their business relationship. Plaintiff filed a complaint seeking to enforce the judgment’s record turnover requirement, and pled various causes of action for injuries arising out of defendant’s refusal to turn the records over immediately after the judgment. The trial court dismissed the related claims as time-barred, and ultimately adjudicated the enforcement claim on the merits in favor of defendant. The Vermont affirmed the trial court in all but one aspect: because the Supreme Court came to a different conclusion on whether certain types of documents were subject to the stipulated judgment’s turnover requirement, the Supreme Court remanded for the trial court to amend its judgment. View "Sutton v. Purzycki" on Justia Law
Huntington Ingalls Industries, Inc. et al. v. Ace American Insurance Company et al.
Insured Huntington Ingalls Industries, Inc. and insurer Huntington Ingalls Industries Risk Management LLC seek a declaratory judgment stating there is coverage under a property insurance policy for certain losses incurred by Huntington Ingalls Industries due to the COVID-19 pandemic. The trial court concluded that the complaint did not allege facts that would trigger coverage under the policy and granted judgment on the pleadings in favor of reinsurers. After review, the Vermont Supreme Court disagreed, reversed the trial court. and remanded for further proceedings. View "Huntington Ingalls Industries, Inc. et al. v. Ace American Insurance Company et al." on Justia Law
New England Phoenix Company, Inc. v. Grand Isle Veterinary Hospital, Inc. et al.
New England Phoenix Company, Inc. appealed a trial court order denying its motion for a deficiency judgment following a foreclosure decree and an order confirming its purchase of a mortgaged property at a judicial sale. In 2010, Bank of America lent a veterinary hospital business in Grand Isle money. Paws and Laws, LLC owned the hospital’s real property, and Grand Isle Veterinary Hospital, Inc. owned the business assets. The bank lent Paws and Laws and Grand Isle Veterinary Hospital money separately: Paws and Laws' loan was secured by a mortgage on the real property, Grand Isle Veterinary was secured by the business' personal property and assets. In 2012, Paws and Laws violated the terms of the mortgage by conveying the real property by quit claim deed to Grand Isle Veterinary Hospital. In 2014, Grand Isle Veterinary Hospital gave Bank of America a second mortgage on the real property to secure its finance agreement. Soon thereafter the business defaulted on the loans and guarantor abandoned the property. Guarantor’s attempts to sell the property were unsuccessful. Bank of America did not initiate foreclosure proceedings on the loans, and instead, assigned the loans and mortgages to New England Phoenix. New England Phoenix filed this foreclosure action in April 2019. Guarantor did not participate in the proceedings. In late 2019, the trial court entered a default judgment and issued a foreclosure decree by judicial sale. Neither guarantor nor Grand Isle Veterinary redeemed the property, New England Phoenix submitted the winning bid and the judicial sale. In March 2021, the court issued an order confirming the sale and transferring title to the property to New England Phoenix. In a separate order, the court restated a request that New England Phoenix provide a 2010 appraisal before it would rule on the deficiency judgment. New England Phoenix argued, in effect, that the 2010 appraisal was immaterial to the court’s decision, and that in any case, by the time it took an assignment of the loans and mortgages, the property had long been abandoned and contained no business assets. In appealing the trial court's refusal to reconsider the deficiency issue, it argued to the Vermont Supreme Court that the trial court's reasoning for denying relief was made in error. The Supreme Court concurred with New England Phoenix that the trial court abused its discretion by failing to consider factors relevant to Vermont Rule of Civil Procedure 80.1(j)(2), and by exercising its discretion to deny a deficiency judgment “for clearly untenable reasons.” View "New England Phoenix Company, Inc. v. Grand Isle Veterinary Hospital, Inc. et al." on Justia Law
Kneebinding, Inc. v. Howell
In 2003, Richard Howell invented a binding that has a “special, patented heel release designed to mitigate knee injuries . . . that are common in downhill skiing.” Howell formed a business relationship with John Springer-Miller, and the two signed transaction documents, which included an employment agreement, a stock-purchase agreement, an investor-rights agreement, and an amended certificate of incorporation. Howell and Springer-Miller’s working relationship “began to deteriorate almost immediately,” and the KneeBinding board voted to terminate Howell as president in September 2008. In prior proceedings, the Vermont Supreme Court in large part affirmed an August 2016 trial court decision, but reversed a decision to dissolve a March 2009 permanent injunction, and remanded the court’s award of attorney’s fees to KneeBinding, Inc. with directions to consider additional evidence of legal fees. On remand in August 2019, the trial court: (1) awarded additional attorney’s fees to KneeBinding; (2) issued a sanction for a May 23, 2018 finding that Richard Howell violated an August 10, 2017 injunction that was in place while "KneeBinding II" was pending; and (3) found Howell in contempt for violating the March 2009 permanent injunction that the Supreme Court restored in KneeBinding II. On appeal, Howell challenged the May 23, 2018, finding that he violated the August 2017 injunction and the August 2019 finding that he violated the March 2009 permanent injunction. Finding no reversible error, the Supreme Court affirmed. View "Kneebinding, Inc. v. Howell" on Justia Law
Green Mountain Fireworks, LLC, et al. v. Town of Colchester et al.
In May 2018, appellants Green Mountain Fireworks, LLC and its owner Matthew Lavigne, began selling fireworks from a retail store in Colchester, Vermont. As described in their complaint, the “intended purpose” for the store was “to sell retail fireworks to consumers.” In relation to the retail store, appellants obtained a license from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as a “Type 53 - Dealer of Explosives.” They also got a building permit and a certificate of occupancy from the Town Zoning Administrator. These zoning permits were the only two permit applications appellants submitted to the Town. The issue this appeal presented for the Vermont Supreme Court's review centered on whether 20 V.S.A. 3132(a)(1) authorized municipalities to grant permits for the general retail sale of fireworks to consumers who do not hold valid permits to display those fireworks. Appellants appealed the superior court's dismissal of two actions: (1) their appeal of the Town of Colchester selectboard’s denial of their application for a permit to sell fireworks pursuant to 20 V.S.A. 3132(a)(1); and (2) their request for a declaratory judgment that, even without that distinct permit, they had “all possible and applicable permits” and were permitted under section 3132 to sell fireworks in the manner described in their complaint. The Supreme Court concluded that section 3132(a)(1) required a distinct permit for the sale of fireworks, but did not authorize a permit for the general retail sale of fireworks along the lines proposed by appellants. The only fireworks sales authorized by statute were sales to the holder of a display permit for the purpose of the permitted display. Therefore, the Supreme Court affirmed the trial court's judgments. View "Green Mountain Fireworks, LLC, et al. v. Town of Colchester et al." on Justia Law
Sutton et al. v. Vermont Regional Center et al.
Plaintiff-investors appealed the dismissal of their claims against the Vermont Agency of Commerce and Community Development (ACCD) and current and former state employees arising from the operation of a federally licensed regional center in the United States Customs and Immigration Services (USCIS) EB-5 program. USCIS designated ACCD as a regional center in 1997, and ACCD began operating the Vermont Regional Center (VRC). It was not the only state-affiliated regional center, but it was the only one that represented itself as a “state-run agency.” The VRC billed itself as an attractive option for development and foreign investment due to its superlative “oversight powers,” the overwhelming investor confidence that came from its “stamp of approval,” and the State of Vermont’s backing that would result in a “faster path to approval.” ACCD employees represented to prospective investors, including plaintiffs, that the added protections of state approval and oversight made the "Jay Peak Projects" a particularly sound investment. They told prospective investors that the VRC conducted quarterly reviews to ensure that projects complied with all applicable laws and regulations and “engag[ed] in the financial monitoring and auditing of projects to ensure legitimacy,” and they represented that MOUs imposed “strict covenants and obligations on the project to ensure compliance with all applicable laws and regulations.” Unbeknownst to the investors, but known to the VRC officials, no such state oversight by the VRC existed. The VRC never issued any of the quarterly reports contemplated in the MOUs. In April 2016, the U.S. Securities and Exchange Commission filed a lawsuit alleging securities fraud, wire fraud, and mail fraud against the Jay Peak Projects developers. On the basis of these and other allegations, plaintiffs, all foreign nationals who invested in the Jay Peak Projects, filed a multi-count claim against ACCD and several individual defendants. The trial court granted plaintiffs’ motion to amend their complaint for a third time to a Fourth Amended Complaint, and then dismissed all thirteen counts on various grounds. Plaintiffs appealed. After review, the Vermont Supreme Court reversed the dismissal of plaintiffs’ claims of negligence against ACCD, gross negligence against defendants Brent Raymond and James Candido, and breach of contract and the implied covenant of good faith and fair dealing against ACCD. The Court affirmed the dismissal of plaintiffs' remaining claims. View "Sutton et al. v. Vermont Regional Center et al." on Justia Law
Construction Drilling, Inc. v. Engineers Construction, Inc.
Subcontractor Construction Drilling, Inc. (CDI) appealed a trial court’s judgment on the merits in its breach-of-contract claim against Engineers Construction, Inc. (ECI). CDI contended the trial court erred in: (1) holding that the terms of the parties’ subcontract required CDI to request a change order before it billed ECI for “drilling in obstructions” in excess of CDI’s bid price; (2) denying CDI’s motions to reopen the evidence and for a new trial; and (3) awarding ECI $234,320 in attorneys’ fees under the Prompt Payment Act. ECI cross-appealed, arguing the trial court improperly allowed CDI’s owner to offer opinion testimony absent a finding of reliability under Vermont Rule of Evidence 702 and maintaining that his testimony could not have met this standard in any event. Therefore, should the Vermont Supreme Court reverse the trial court’s denial of CDI’s breach-of-contract claim, ECI asserted the matter had to be remanded for a new trial without such testimony. The Court affirmed the trial court, and therefore did not reach the issue raised in ECI’s cross-appeal. View "Construction Drilling, Inc. v. Engineers Construction, Inc." on Justia Law
Bourdeau Bros., Inc. v. Boissonneault Family Farm, Inc. et al.
Plaintiff Bourdeau Bros., Inc. was a Vermont company that sold agricultural supplies, feed, and chemicals. Defendants operated a dairy farm in Georgia, Vermont. In July 2016, plaintiff sued defendant Boissonneault Family Farm, Inc. (BBF) for amounts owed for grain delivered by plaintiff to the farm. Plaintiff subsequently amended its complaint to add Jay and Cathy Boissonneault as co-defendants. In their answer, defendants denied that Cathy Boissonneault or BBF had done business with Bourdeau Bros., Inc. Defendants moved to dismiss Cathy Boissonneault and BBF as defendants. The court denied the motion. In February 2018, defendants filed a counterclaim alleging that plaintiff owed defendants $16,000 for water plaintiff took from defendants’ pond. A two-day bench trial took place in March 2019. At the conclusion of the trial, the court dismissed plaintiff’s claims against Cathy Boissonneault. The court found that beginning in 2012, defendants Jay Boissonneault and BBF had an oral agreement with plaintiff to purchase grain. Each time plaintiff delivered grain, it presented an invoice to defendants. Defendants consistently paid the amounts indicated in the invoices until 2015, when defendants stopped paying. The court found that defendants owed plaintiff $27,564.97 for grain delivered in 2015, including interest of eighteen percent per year. The court denied plaintiff’s request for attorney’s fees despite language in the invoices stating that plaintiff would be entitled to such fees in the event of a collection action. As the prevailing party at trial, plaintiff appealed the trial court’s denial of its request for attorney’s fees, arguing that it was entitled to recover attorney’s fees based on a term contained in invoices that it provided to defendants each time it delivered grain. Plaintiff argued that under 9A V.S.A. 2-207, the term became part of the parties’ contract when defendants failed to object to it within a reasonable time. Defendants cross-appealed, arguing that the trial court improperly calculated damages and erred by dismissing their counterclaim and finding defendant Jay Boissonneault personally liable. The Vermont Supreme Court remanded for the trial court to reconsider whether plaintiff is entitled to attorney’s fees, but otherwise affirmed judgment. View "Bourdeau Bros., Inc. v. Boissonneault Family Farm, Inc. et al." on Justia Law
Commercial Construction Endeavors, Inc. v. Ohio Security Insurance Company
On a winter night in 2014, strong winds blew through the town of Georgia, Vermont, causing a partially constructed livestock barn to collapse. Commercial Construction Endeavors, Inc. (CCE), the contractor building the barn, sought recompense for the resulting losses from its insurer, Ohio Security Insurance Company. However, insurer and insured disagreed as to policy coverage for costs incurred by CCE in removing the remains of the collapsed barn and rebuilding it to its pre-collapse state. Ultimately, CCE sued Ohio Security for breach of contract. In successive summary-judgment rulings, the trial court held that the contractor’s rebuilding expenses were covered under the policy, but the cost of debris removal was not. Ohio Security cross-appealed the first ruling and CCE appealed the second; the Vermont Supreme Court reversed the first ruling and affirmed the second. The Court determined the additional collapse coverage applied only to “Covered Property,” which was business personal property; CCE did not dispute that the barn was not business personal property and thus was not “Covered Property.” Therefore, the court’s first summary-judgment ruling was reversed. The debris removal was not a loss involving business personal property. As a result, it was not a loss to “Covered Property” at that term was defined by the policy at issue. View "Commercial Construction Endeavors, Inc. v. Ohio Security Insurance Company" on Justia Law