Contract Interpretation Cases
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Contract Interpretation

Court of Appeals of North Carolina
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Limage — Rule 11 sanctions upheld for materially misleading contract quotation

The Court of Appeals held that Rule 11 expressly permits a trial court to act on its own initiative and that courts also possess inherent authority to protect the integrity of proceedings. Reviewing the sanction decision de novo, the panel agreed that the complaint misrepresented the contract and that the discrepancy was material to the requested relief. The show-cause process supplied notice and an opportunity to re

Court of Appeals of North Carolina
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Jordan — Premarital agreement survives voluntariness and disclosure challenge

The Court of Appeals affirmed because the trial court’s findings supported its legal conclusions under North Carolina’s Uniform Premarital Agreement Act. The record supported voluntary execution, and a party’s failure to read or understand an agreement does not by itself avoid a signed contract absent fraud or another recognized defense. The written agreement also stated that each party had separate counsel or an opp

Appellate Division, Second Department
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Machine Tool Repair v. Tokio Marine — ‘Floor to Floor’ Certificate Notation Creates Triable Coverage Question Under Marine Cargo Policy

Second Department affirms denial of summary judgment to marine cargo insurer: typewritten ‘floor to floor’ notation in certificate of insurance raised triable issue of fact as to whether coverage extended through forklift delivery to warehouse floor, beyond standard warehouse-to-warehouse clause.

North Carolina Court of Appeals
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Sepanski v. Ashleigh Fisher Consulting — ‘Monthly Retainer Fee’ Means Payment for Work Completed, Not Availability During Notice Period

The North Carolina Court of Appeals reversed a $26,633 summary judgment for a consultant who claimed she was owed two months of “monthly retainer fees” during a sixty-day notice period in which she performed no work. Reading the contract as a whole, the court held that “retainer fee” does not mean availability payment; the early-termination clause—which conditioned payment on “work completed through the end of the notice period”—controlled. Because the consultant performed no work after termination, Fisher Consulting owed nothing. Summary judgment for the defendant was ordered on remand.

North Carolina Court of Appeals
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Se. Reg’l Physician Servs. v. Scott — Non-Compete Barring Any ‘Practice of Medicine’ Is Overbroad and Cannot Be Blue-Penciled

The North Carolina Court of Appeals affirmed the invalidation of non-compete agreements barring two nurse practitioners from “engaging in the practice of Medicine” for one year within Robeson County and a 35-mile radius. Writing for the majority, Judge Griffin held the covenants overbroad in their terms despite reasonable time and geographic limits, void against public policy, and not salvageable through blue-penciling under North Carolina’s strict severance doctrine. The 2–1 decision—Chief Judge Dillon dissenting—clarifies that healthcare non-competes must track the specific work performed, not broadly prohibit all medical practice.

Court of Appeals of Utah
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Schmidt v. Schmidt — Three Plausible Interpretations of a Divorce Mortgage-Payment Provision Compel Remand for an Evidentiary Hearing

The Utah Court of Appeals reversed a district court’s order enforcing a post-divorce mortgage-payment obligation, holding that Provision 2 of the parties’ Modification supports at least three reasonable interpretations—property-specific, region-limited, and location-neutral—and is therefore ambiguous as a matter of law, requiring remand for an evidentiary hearing on the parties’ intent before the provision can be enforced against Stephen Schmidt.

Appellate Division, Second Department
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WDF, Inc. v. A.J. Pegno/Tully Construction (Companion) — Release Ambiguity Bars Summary Judgment for Joint Venture Defendants

In the companion appeal to the WDF v. Pegno construction dispute over a Newtown Creek project liquidating agreement, the Appellate Division, Second Department affirms denial of summary judgment to the joint venture defendants on their release defense, holding that the release clause is ambiguous as to claims arising from the post-execution City settlement.

Appellate Division, Second Department
Uncategorized

WDF, Inc. v. A.J. Pegno/Tully Construction — Release in Construction Liquidating Agreement Is Ambiguous as to Post-Settlement Claims

In companion decisions on cross-appeals, the Appellate Division, Second Department holds that the release clause in a construction subcontract liquidating agreement is ambiguous as to whether it bars claims arising from the joint venture’s post-execution settlement with the City of New York—leaving the scope of the release and the parties’ cooperation obligations for trial.

Appellate Division, Second Department
Uncategorized

Ramnath v. Yanez — ECB Judgment Liens Are Encumbrances Seller Must Discharge at Closing

The Appellate Division, Second Department reverses denial of summary judgment and orders specific performance of a commercial real estate contract, holding that docketed Environmental Control Board judgments are liens that the seller must discharge at or before closing under a contract requiring conveyance free of all encumbrances.

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