In Kansas City So. Rwy. Co. v. Sasol Chemicals (USA), LLC, the Fifth Circuit addressed whether “track” in a lease agreement included the track that forms part of the switches. The district court found the contract ambiguous because “track” was … Continue reading
Examples of contract ambiguity don’t come along every day, so they deserve careful study when they do. Keiland Construction v. Weeks Marine found ambiguity because of tension in a contract between Section 5, titled “COMPENSATION”: This language was followed by … Continue reading
In Jungian psychology, the “Trickster” archetype (right) has been called “the embodiment of ambiguity.” In McDonnel Group, LLC v. Jung, LLC, the Fifth Circuit found an embodiment of ambiguity in an insurance policy provision that defined the flood-damage deductible as: … Continue reading
A highly technical dispute about the applicable law for an offshore salvage operation produced an insurance holding of general applicability in Tetra Technologies, Inc v. Continental Ins. Co., No. 15-30446 (Feb. 24, 2016). The policy exclusion applied to “[a]ny obligation of … Continue reading
The insurance coverage case of Mt. Hawley Ins. Co. v. Advance Products & Systems, Inc. illustrates the recurring differences of opinion between the Fifth Circuit and district courts about contract ambiguity. 14-30068 (Jan. 27, 2015, unpublished). When APS made a claim on its … Continue reading
A subcontractor’s policy excluded “property damage” to “your work.” An endorsement added the general contractor as an additional insured “only with respect to liability for . . . ‘property damage’ . . . caused, in whole or in part, by … Continue reading
In Temple v. McCall, the Fifth Circuit confronted a series of property conveyances with ambiguous language about whether mineral rights were included. No. 12-30661 (June 20, 2013). The Court affirmed, approving the weight given by the district court to expert … Continue reading
In Greenwood 950 LLC v. Chesapeake Louisiana LP, the Court found an ambiguity in a Louisiana mineral lease, seeing two reasonable ways to harmonize clauses about obligations to “repair all surface damages” and “pay . . . all damages.” No. 11-30436 (June 12, … Continue reading
The Fifth Circuit addressed the doctrine of mistake under Louisiana law in Fruge v. Amerisure, 663 F.3d 743 (2011). After reminding that choice-of-law issues are waived unless presented to the district court, the Court considered reformation of an insurance policy under general contract principles. … Continue reading
Contractual ambiguity is easily the #1 issue, in commercial cases, where thoughtful judges disagree. An example appears in Barrios v. Centaur LLC, where both the district court and the Fifth Circuit concluded that a maritime contract had two conflicting “escape” … Continue reading
Ultra Petroleum entered bankruptcy because of a sharp decline in natural gas prices. During the bankruptcy case, however, the price of gas recovered and soared and “propelled the debtors back into solvency.” That fortunate situation led to the question whether … Continue reading
The plaintiff in King v. Baylor Univ. contended that Baylor had breached a contract with her (the “Financial Responsibility Agreement” pursuant to which she paid her tuition). During the COVID-19 pandemic, students at Baylor University were promised that they would … Continue reading
Hoover Panel Systems contracted with HAT Contract to design a component for office desks. The Fifth Circuit found their contract ambiguous, noting the tension between its introductory and first-numbered paragraphs. While both address confidentiality, the introduction is general and paragraph … Continue reading
The Fifth Circuit affirmed a preliminary injunction that enforced a (reformed) noncompetition agreement under Louisiana law, observing, inter alia: The reformed scope was acceptable. “Rogillio’s non-compete provision specified particular parishes and the municipality of New Orleans. The reformation served only … Continue reading
Wease established ambiguity in two aspects of a deed of trust. With respect to when a servicer could pay the borrower’s property taxes by the servicer, the key provision used the fact-specific phrase “reasonable or appropriate”; other provisions both suggested that the power was … Continue reading
Defendants removed, the plaintiff moved to remand, and the the district court granted the motion. It found a waiver of the right to remove, noting this contract provision: “The Parties hereto hereby irrevocably and unconditionally consent to the sole and … Continue reading
The Fifth Circuit revised its original opinion in BNSF Railway Co. v. United States to expand and revise the discussion of ambiguity as part of the Chevron analysis of an IRS regulation; the outcome remained unchanged. No. 13-10014 (Jan. 15, 2015). The new discussion includes … Continue reading
The parties to a contract about the construction of a barge disputed whether an amendment required price adjustments based on the price of steel. Blessey Marine Services, Inc. v. Jeffboat, LLC, No. 13-30731 (Nov. 10, 2014, unpublished). In a pretrial … Continue reading
First case: Highland Capital sued Bank of America for the alleged breach of an oral contract to sell a $15.5 million loan. After the Fifth Circuit reversed the dismissal of this claim under Rule 12(b)(6), it affirmed summary judgment for the defendant … Continue reading
In the second quarter of 2014, the Fifth Circuit said how to . . . 1. . . . enforce an Agreed Protective Order. Two judges, finding “written notice” ambiguous, found that Ford did not waive confidentiality designations by having … Continue reading
The agreed protective order said: “At any time after the delivery of documents designated ‘confidential,’ counsel for the receiving party may challenge the confidential designation of any document or transcript (or portion thereof) by providing written notice thereof to counsel … Continue reading
How close does Twombly come to Fed. R. Civ. P. 9(b)? Consider Merchants & Farmers Bank v. Coxwell, affirming the dismissal of a pleading: “The complaint did not specify what court issued the order, when it was issued, or to … Continue reading
Even by the standards of tax cases, BNSF Railway Co. v. United States is arcane, but the underlying statutory analysis is of broad general interest. No. 13-10014 (March 13, 2014). The first issue — the taxability of certain stock options — turned … Continue reading
Credibility Determinations Creating Triable Fact Issues: In Vaughan v. Carlock Nissan of Tupelo, the plaintiff alleged that a car dealership unlawfully terminated her after she reported several irregularities there to Nissan. No. 12-60568 (Feb. 4, 2014, unpublished). The Fifth Circuit found a … Continue reading
After recent opinions finding that credibility determinations led to fact issues in cases about whether a barge hit a bridge and a prison fight, the Fifth Circuit again so held in Vaughan v. Carlock Nissan of Tupelo, No. 12-60568 (Feb. 4, 2014, unpublished). Vaughan … Continue reading
An assignment of royalty interests for a continental shelf project had this “calculate or pay” clause: “The overriding royalty interest assigned herein shall be calculated and paid in the same manner and subject to the same terms and conditions as the landowner’s … Continue reading
In Ergon-West Virginia, Inc. v. Dynegy Marketing & Trade, the Fifth Circuit found that Dynegy had no duty under two natural gas supply contracts to attempt to get replacement gas after a declaration of force majeure in response to hurricane damage, affirming the … Continue reading
In Westlake Petrochemicals v. United Polychem, the plaintiff obtained judgment for $6.3 million under the UCC for breach of a contract to supply ethylene. No. 10-20634 (July 24, 2012). The Fifth Circuit affirmed on liability, finding that evidence about the … Continue reading
The case of Texas Pipeline v. FERC involved a challenge to natural gas regulations as beyond FERC’s statutory authority. The Court found that the regulations were beyond that authority, and accordingly, did not reach any issues where agency deference under Chevron could … Continue reading
