Justia New Hampshire Supreme Court Opinion Summaries

Articles Posted in Commercial Law
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The plaintiffs, Kristen Trombly and Christopher Patria, purchased a used vehicle from City Cars, LLC. Shortly after the purchase, they experienced issues with the vehicle's transmission. They contacted the dealership, which directed them to a repair shop that added transmission fluid. Despite this, the transmission problems persisted, and another dealership recommended replacing the transmission at a significant cost. The plaintiffs acknowledged buying the car "as is" but sought assistance from the defendant, who offered a partial refund, which the plaintiffs rejected, demanding a full refund or repair.The plaintiffs filed a complaint in July 2022, alleging a violation of the implied warranty of merchantability under New Hampshire's Uniform Commercial Code (UCC). The Circuit Court (Ryan, J.) found in favor of the plaintiffs, determining that the vehicle was not merchantable and that the implied warranty had not been disclaimed. The court awarded damages to the plaintiffs.The Supreme Court of New Hampshire reviewed the case. The defendant argued that the trial court erred by assessing the vehicle's merchantability based on its condition after the sale rather than at the time of sale. The Supreme Court agreed with the defendant, stating that the implied warranty of merchantability applies to the condition of the goods at the time of sale. The court found that the plaintiffs did not provide evidence that the transmission was faulty when the vehicle was sold. Consequently, the trial court's finding of non-merchantability was deemed erroneous. The Supreme Court reversed the lower court's decision. View "Trombly v. City Cars, LLC" on Justia Law

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The case revolves around a dispute between Private Jet Services Group, LLC (PJS), a private aircraft booking agent, and Tauck, Inc., a provider of domestic and international guided tours. The parties had entered into an "Air Charter Services Blanket Purchase Agreement" (BPA) in January 2018, which established the terms under which Tauck would book and pay for air transportation for the New Zealand portion of its Australia and New Zealand tours. In May 2018, they executed a Statement of Work (SOW) that required Tauck to guarantee a minimum of fifty tours per year and to pay PJS an agreed-upon sum for each "missed" tour. The SOW also included a force majeure clause that protected PJS from delays, losses, or damages caused in whole or in part by force majeure events, including epidemics and acts of civil or military authority.The dispute arose when the COVID-19 pandemic prevented Tauck from conducting tours in New Zealand. After Tauck cancelled its remaining 2020 tours, PJS sued Tauck in the New Hampshire federal court alleging a breach of contract. Tauck responded by invoking the doctrines of impossibility and frustration of purpose to excuse performance of its obligations under the contracts. Both parties moved for summary judgment on the count relating to the 2020 tour season, which the district court denied without prejudice. The district court then certified a question to the Supreme Court of New Hampshire regarding the interpretation of the force majeure clause and its impact on the common law defenses of impossibility, impracticability, and frustration of commercial purpose.The Supreme Court of New Hampshire held that the common law contract defenses of impossibility, impracticability, and frustration of commercial purpose are so fundamentally related to contract formation and purpose that they remain viable unless expressly waived. Therefore, a force majeure clause that protects only one party to a contract should not be deemed, in and of itself, a relinquishment of the other party’s right to interpose those common law defenses. The case was remanded back to the lower court for further proceedings. View "Private Jet Services Group, LLC v. Tauck, Inc." on Justia Law

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Defendants Sedo, Inc. ad its founder, president and sole shareholder Goran Lucic, appealed a district court ruling that held both the company and Mr. Lucic liable to Plaitiff Holloway Automotive Group d/b/a Holloway Motor Cars of Manchester for breach of contract. Upon review, the Supreme Court affirmed the trial court's enforcement of a liquidated damages provision in the parties' contract, but concluded that the district court lacked jurisdiction to "pierce the corporate veil." Accordingly, the Court reversed the district court's award against Lucic as well as the award of attorney's fees. View "Holloway Automotive Group v. Lucic" on Justia Law

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"Homes by George," run by Adelaide and Rick George, developed residential real estate known as "Esther's Estates" in Newton. Homes by George entered into a written contract with Defendant Al Hoyt & Sons, Inc., in which Defendant agreed to perform certain work in connection with the development. Defendant was paid but did not complete the work. Plaintiffs alleged breach of contract and claimed that Defendant violated the State Consumer Protection Act (CPA). Defendant counter-claimed that Plaintiff failed to pay amounts due in accordance with the contract. The trial court bifurcated the proceedings to allow a jury to first determine liability claims. A second trial was held on the contract claims. Plaintiffs won on all liability claims in the first trial, and received damages on its breach of contract and CPA claims at the second. Both parties appealed to the Supreme Court. Plaintiffs challenged the amounts of damages they were awarded by the trial court. Defendant argued that the trial court erred in its finding of violations under the CPA, and in its damages awarded to Plaintiffs. Upon careful consideration of the arguments and the applicable legal authority, the Supreme Court affirmed part and reversed part of the lower court's decision. The Supreme Court found that the grant of damages was appropriate in light of the terms of the contract, the state case law, and the evidence presented at trial. However, the Court questioned how the trial court arrived at the amount of damages. The Court remanded the case back to the trial court for further proceedings on its damages award to Plaintiffs. The Court affirmed the trial court in all other aspects of its decision.