Justia Commercial Law Opinion Summaries

The City of Fort Collins contracted with Open International, LLC, for software services, which led to mutual breach-of-contract claims. The City also alleged that Open's precontractual statements were negligent or fraudulent misrepresentations. A jury found that Open fraudulently induced the City to enter the contract. The City elected to rescind the contract, and the district court held a bench trial on restitution, ordering a judgment of nearly $20 million against Open.The United States District Court for the District of Colorado denied Open's motions for judgment as a matter of law, which argued that the City’s tort claims were barred by the economic-loss rule and the contract’s merger clause. The court also denied Open's motion to require the City to elect a remedy before trial. The jury found in favor of the City on the fraudulent inducement claim, and the City chose rescission, leading to the dismissal of the jury and a bench trial on restitution.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court’s rulings and the jury’s verdict. The court held that the City’s tort claims were not barred by the economic-loss rule or the contract’s merger clause. The court found sufficient evidence to support the jury’s finding of fraud, particularly regarding Open’s grading of the functionality matrix and the use of a different software portal. The court also upheld the finding that the City did not waive its right to rescind the contract, as there was conflicting evidence about when the City discovered the fraud. Finally, the court affirmed the district court’s denial of Open’s Rule 50(b) motion, which argued that Open Investments could not be liable for rescission. View "City of Fort Collins v. Open International" on Justia Law

Auraria Student Housing at the Regency, LLC (Regency) sued Campus Village after the University of Colorado-Denver (UCD) instituted a residency requirement which forced a significant portion of its freshmen and international students to live at Campus Village. Campus Village was also an apartment complex located outside the boundaries of the UCD Campus. But the University of Colorado Real Estate Foundation (CUREF) was the sole member of Campus Village, and CUREF operated Campus Village for the benefit of the University of Colorado system. Although Regency alleged that UCD participated in the conspiracy, it named only Campus Village as a defendant in this litigation. On appeal of a jury verdict finding that Campus Village violated section two of the Sherman Antitrust Act based on its conspiracy with UCD to monopolize commerce, Campus Village argued principally that the district court erred by not requiring Regency to define the "relevant market" Campus Village allegedly conspired to monopolize. Specifically, it claimed recent Supreme Court and Tenth Circuit authority mandated that plaintiffs identify both the relevant geographic and product markets to recover under section 2, including for conspiracy-to-monopolize claims. The Tenth Circuit agreed, finding that Regency failed to identify the relevant marked in this case. But because Regency reasonably relied on the Tenth Circuit's contrary holding in "Salco Corp. v. Gen. Motors Corp.," (517 F.2d 567 (1975)), the Court instructed the district court to provide Regency an opportunity to define the relevant market on remand. Accordingly, the Tenth Circuit vacated the jury verdict and remanded this case for further proceedings. View "Auraria Student Housing v. Campus Village Apartments" on Justia Law