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Justia Weekly Opinion Summaries

Business Law
November 6, 2020

Table of Contents

Elite Oil Field Enterprises v. Reed

Business Law, Civil Procedure

US Court of Appeals for the Tenth Circuit

Changsha Metro Group Co. v. Xufeng

Business Law, Civil Procedure

California Courts of Appeal

Di Gregorio Food Products, Inc. v. Racanelli

Business Law

Supreme Court of Missouri

Dick v. Koski Professional Group, P.C.

Business Law, Contracts

Nebraska Supreme Court

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Legal Analysis and Commentary

Pope Francis’s Statement Endorsing Same-Sex Civil Unions Undermines the Moral Legitimacy and Legal Arguments in Fulton v. City of Philadelphia

DAVID S. KEMP, CHARLES E. BINKLEY

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David S. Kemp, a professor at Berkeley Law, and Charles E. Binkley, MD, the director of bioethics at Santa Clara University’s Markkula Center for Applied Ethics, consider the implications of Pope Francis’s recently revealed statement endorsing same-sex civil unions as they pertain to a case currently before the U.S. Supreme Court. Kemp and Binkley argue that the Pope’s statement undermines the moral legitimacy of the Catholic organization’s position and casts a shadow on the premise of its legal arguments.

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Stigma and the Oral Argument in Fulton v. City of Philadelphia

LESLIE C. GRIFFIN

verdict post

UNLV Boyd School of Law professor Leslie C. Griffin explains why stigma is a central concept that came up during oral argument before the Supreme Court in Fulton v. City of Philadelphia. Griffin points out that some religions have long supported racial discrimination, citing their religious texts, but courts prohibited such discrimination, even by religious entities. Griffin argues that just as religious organizations should not enjoy religious freedom to stigmatize people of color, so they should not be able to discriminate—and thus stigmatize—people based on sexual orientation.

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Business Law Opinions

Elite Oil Field Enterprises v. Reed

Court: US Court of Appeals for the Tenth Circuit

Docket: 19-1406

Opinion Date: November 3, 2020

Judge: Mary Beck Briscoe

Areas of Law: Business Law, Civil Procedure

Defendants Garrett Reed, Reilly Reed, Element Services, LLC, Jhenna Reed, Reedesign Concepts, and Robert Kubistek appealed a district court order remanding this case from federal district court to Colorado state court due to lack of subject matter jurisdiction. Plaintiff Elite Oil Field Enterprises, Inc. (Elite) moved to dismiss the appeal for lack of appellate jurisdiction. Plaintiff Elite was a Colorado corporation formed in March 2012 to provide roustabout services for the oil field industry. Immediately after its formation, Elite formed two subsidiaries: Elite Oil Field Services, Inc. and Elite Oil Field Equipment, Inc. At some point after the formation, Reilly Reed (Reilly) became upset that he only had a 25% ownership interest in Elite and believed that he was entitled to a 50% share. Reilly and his brother Garrett Reed (Garrett), allegedly devised a scheme for Reilly to form, surreptitiously, a competing company known as Element Services, LLC (Element), and for Element to improperly lure away Elite’s customers and employees with the intent of economically harming Elite and rendering Elite unable to continue its operations. As part of the scheme, Reilly filed a civil lawsuit in Colorado federal district court against Elite, its two subsidiaries, his former business partner Dustin Tixier, and business manager Jason Whisenand, alleging in pertinent part, Elite's corporate documents were altered such that Reilly owned only 25% of the total outstanding corporate stock rather than the originally agreed upon 50%. Plaintiffs moved to transfer and consolidate the multiple civil suits and counterclaims to Colorado state court. The Tenth Circuit determined it lacked subject matter jurisdiction over the appeal, thereby granting Elite's motion to dismiss this appeal.

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Changsha Metro Group Co. v. Xufeng

Court: California Courts of Appeal

Docket: E073322A(Fourth Appellate District)

Opinion Date: November 3, 2020

Judge: Miller

Areas of Law: Business Law, Civil Procedure

The trial court found defendants Peng Xufeng and Jia Siyu filed a frivolous anti-SLAPP motion against Changsha Metro Group Co., Ltd. (Changsha). Changsha sued defendants for: (1) breach of fiduciary duty; (2) constructive fraud; (3) aiding and abetting; (4) unjust enrichment; and (5) a constructive trust. Defendants responded with an anti-SLAPP motion. The trial court ordered defendants to pay Changsha $61,915 for Changsha’s attorney’s fees in opposing the anti-SLAPP motion. Defendants contended the trial court erred in awarding attorney’s fees to Changsha because: (1) defendants were not given a 21-day safe harbor period; and (2)Changsha requested attorney’s fees in its opposition to the anti-SLAPP motion, rather than in a separate motion. Finding no reversible error, the Court of Appeal affirmed the trial court.

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Di Gregorio Food Products, Inc. v. Racanelli

Court: Supreme Court of Missouri

Docket: SC98443

Opinion Date: November 3, 2020

Judge: Zel M. Fischer

Areas of Law: Business Law

In this action pleading claims for suit on account and account stated the Supreme Court reversed and vacated the judgment of the circuit court in favor of DiGregorio Food Products, Inc., holding that the circuit court erred in declaring the law in determining that Mo. Rev. Stat. 516.110(1)'s ten-year statute of limitations applied to the underlying claims. DiGregorio was an ingredient supplier for John Racanelli, who operated pizza restaurants. When Racanelli stopped making payments, DiGregorio ended its business relationship with Racanelli and his restaurants. DiGregorio later brought this action, asserting claims for suit on account and account stated. The circuit court declared that the ten-year statute of limitations contained in section 516.110(1) applied and that Racanelli was responsible for the amount of unpaid invoices as damages. The Supreme Court disagreed, holding (1) even assuming that DiGregorio proved its claims, this case was governed by the five-year statute of limitations contained in Mo. Rev. Stat. 516.120(1); and (2) therefore, DiGregorio's lawsuit was time barred.

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Dick v. Koski Professional Group, P.C.

Court: Nebraska Supreme Court

Citation: 307 Neb. 599

Opinion Date: October 30, 2020

Judge: Freudenberg

Areas of Law: Business Law, Contracts

The Supreme Court affirmed the decision of the district court granting judgment in favor of an accountant and his new firm on his claims against his former firm, holding that the judgment was not in error. After Plaintiff left one firm to join another, he sued Defendant, his former firm, with whom he was a shareholder and officer. Plaintiff alleged that Defendant failed to perform a mandatory provision in the shareholder agreement to buy out a departing shareholder's corporate shares at a price that accounted for lost billings by virtue of clients following a departing shareholder. Defendant brought counterclaims for breach of fiduciary duty and misappropriation of confidential information and third-party claims against Plaintiff's new firm, including tortious interference with business expectations. All claims presented to the jury were determined in favor of Plaintiff and his new firm. The Supreme Court affirmed, holding that all claims were correctly decided in favor of Plaintiff and his new firm.

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