Case Summaries

Property Law & Real Estate

[07/24] MAC East, LLC, v. Shoney's, Inc.
In a diversity case involving a commercial real estate lease and a proposal by an assignee of that lease to sublease the real estate to a third party, grant of summary judgment for plaintiff-corporation as to liability on its tortious interference claim is reversed where: 1) defendant corporation was an "essential entity to the purported injured relations"; 2) both plaintiff and defendant were parties to the Assignment Agreement, and thus were "parties to a comprehensive interwoven set of contract or relations"; and 3) defendant cannot be a stranger to the sublease when consummation of the sublease would leave it obligated on the covenants on the ground lease, effectively forming a business relationship between it and proposed subleasee. A question regarding whether a commercial reasonableness standard tempers defendant's "sole discretion" to withhold consent to a proposed sublease is certified to the state supreme court.

[07/23] Rivkin v. Century 21 Teran Realty LLC
In a real estate matter, summary judgment for defendants is affirmed where defendants, acting as buyer's agents, did not breach a fiduciary duty to plaintiff by failing to disclose the representation of a competing bidder for the property plaintiff sought to purchase.

[07/22] Estate of Bonanno
Judgment granting estranged wife's petition to have her share of her deceased husband's estate pass to her without administration and to be confirmed as property belonging to her as surviving spouse is reversed where she was estopped from asserting her statutory rights to have her share of decedent's property pass to her without administration, as doing so would be unfair and inequitable to decedent's daughter-estate administrator and the estate's attorney.

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Probate Trusts

[07/16] Perrin v. Lee
In a probate proceeding, denial of plaintiffs' section 21320 safe harbor petition for a determination that their proposed petition to invalidate two trust amendments would not be a contest within the meaning of a no contest clause in a trust is reversed where: 1) the trust did not explicitly state that a contest to an amendment would violate the no contest clause; and 2) the no contest clause was not incorporated by reference into the amendments.

[05/15] Miller v. Campbell
In a fees dispute brought by a law firm against the executor of an estate after the probate court refused to award a category of fees associated with services rendered for the executor's personal matters, grant of executor's motions in limine to exclude all evidence, resulting in dismissal of the case, is reversed where: 1) the doctrines of res judicata and collateral estoppel did not apply to bar the law firm's claim of fees against the executor personally; and 2) in light of the evidence, the trial court erroneously ruled that the evidence was insufficient, as a matter of law, to support the law firm's quantum meruit claim.

[05/13] Montegani v. Johnson
In a dispute over a decedent's estate involving revocable and irrevocable trusts, an order denying plaintiff's Probate Code section 21320 application based on her lack of standing for section 21320 relief is affirmed where, as part of its duty to oversee the administration of the estate and insure orderly administration of justice, the trial court properly concluded that plaintiff was no longer a beneficiary of the trusts at issue, and thus lacked standing to seek declaratory relief under section 21320.

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Contracts

[07/24] In re: Citigroup, Inc. Capital Accumulation Plan Litig.
In an action challenging Citigroup's Capital Accumulation Plan, which gives certain employees the option of receiving part of their compensation as Citigroup stock, awarded at a discounted rate, dismissal and summary judgment rulings against plaintiffs are affirmed where certain forfeiture provisions at issue were unambiguous, and thereby enforceable.

[07/24] MAC East, LLC, v. Shoney's, Inc.
In a diversity case involving a commercial real estate lease and a proposal by an assignee of that lease to sublease the real estate to a third party, grant of summary judgment for plaintiff-corporation as to liability on its tortious interference claim is reversed where: 1) defendant corporation was an "essential entity to the purported injured relations"; 2) both plaintiff and defendant were parties to the Assignment Agreement, and thus were "parties to a comprehensive interwoven set of contract or relations"; and 3) defendant cannot be a stranger to the sublease when consummation of the sublease would leave it obligated on the covenants on the ground lease, effectively forming a business relationship between it and proposed subleasee. A question regarding whether a commercial reasonableness standard tempers defendant's "sole discretion" to withhold consent to a proposed sublease is certified to the state supreme court.

[07/23] KT&G Corp. v. Attorney Gen. of the State of Oklahoma
In litigation arising from states' Master Settlement Agreement with the four major tobacco companies, wherein non-participating tobacco manufacturers (NPMs) challenged two states' amendments to provisions of their escrow statutes reducing the amount of escrow funds refunded to plaintiffs each year, dismissal of the claims is affirmed where: 1) the Sherman Act did not preempt the Kansas and Oklahoma amendments at issue; and 2) plaintiffs' First Amendment, equal protection, due process, and Commerce Clause claims failed.

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Commercial Law

[07/24] MAC East, LLC, v. Shoney's, Inc.
In a diversity case involving a commercial real estate lease and a proposal by an assignee of that lease to sublease the real estate to a third party, grant of summary judgment for plaintiff-corporation as to liability on its tortious interference claim is reversed where: 1) defendant corporation was an "essential entity to the purported injured relations"; 2) both plaintiff and defendant were parties to the Assignment Agreement, and thus were "parties to a comprehensive interwoven set of contract or relations"; and 3) defendant cannot be a stranger to the sublease when consummation of the sublease would leave it obligated on the covenants on the ground lease, effectively forming a business relationship between it and proposed subleasee. A question regarding whether a commercial reasonableness standard tempers defendant's "sole discretion" to withhold consent to a proposed sublease is certified to the state supreme court.

[07/23] KT&G Corp. v. Attorney Gen. of the State of Oklahoma
In litigation arising from states' Master Settlement Agreement with the four major tobacco companies, wherein non-participating tobacco manufacturers (NPMs) challenged two states' amendments to provisions of their escrow statutes reducing the amount of escrow funds refunded to plaintiffs each year, dismissal of the claims is affirmed where: 1) the Sherman Act did not preempt the Kansas and Oklahoma amendments at issue; and 2) plaintiffs' First Amendment, equal protection, due process, and Commerce Clause claims failed.

[07/22] California Dep't of Water Res. v. Powerex Corp.
In a case arising out of the 2000-2001 California energy crisis, an order remanding the case to state court is reversed and remanded where: 1) review of a district court's decision to decline an exercise of supplemental jurisdiction is not barred by 28 U.S.C. section 1447(d); 2) in light of certain Supreme Court precedent, there is jurisdiction under 28 U.S.C. section 1291 to review the remand order; and 3) defendant, a Canadian corporation that markets and distributes electric power, is an organ of British Columbia, and thus falls within the definition of "foreign state" under the Foreign Sovereign Immunities Act and is entitled to a federal bench trial.

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