Guan v. Hu

Although Civil Code 1692(b) allows a court in a rescission action to grant “any party any other relief to which he may be entitled under the circumstances” if it finds that the parties’ contract has not been rescinded, the quoted language does not allow a trial court to readjust the parties’ rights or grant relief…

Pacific Bay Recovery, Inc. v. California Physicians’ Services, Inc.

Under the Knox-Keene Health Care Services Act, an out-of-network provider who gave substance abuse treatment to PPO subscribers was entitled to be paid by the PPO only the amount shown on its explanation of benefits form, since the treatment was not an emergency medical service and the provider had no contract with the PPO.  Under…

Impression Products, Inc. v. Lexmark Int’l, Inc.

A patentee loses patent rights in a product when it sells the patented product, even if the sale contract restricts the buyer’s use or resale of the product; contract law, not patent law, provides the remedy for any breach of those restrictions. Under the patent exhaustion doctrine, a patentee loses its patent rights in a…

Sanjiv Goel M.D., Inc. v. Regal Medical Group, Inc.

In determining the reasonable value of medical services a doctor provided to patients covered by a medical plan with which the doctor had no contract setting fees, the trial court properly considered evidence of what other doctors charged and the Medicare reimbursement rate for the services rendered.  In determining the reasonable value of medical services…

Hickcox-Huffman v. US Airways, Inc.

Plaintiff’s state-law-based breach of contract claim for delayed delivery of checked luggage was not preempted by the federal Airline Deregulation Act of 1978.  The Airline Deregulation Act of 1978 does not preempt a state law breach of contract claim against an air carrier.  Here, plaintiff alleged that the carrier breached its contract when it charged…

Wind Dancer Production Group v. Walt Disney Pictures

A contract providing for waiver of the discovery rule’s tolling of the limitations period is enforceable if the contract is between sophisticated parties.  A contract between Walt Disney Pictures and a sophisticated group of TV show producers contained a limitations clause, providing that Disney’s quarterly statements became conclusive 24 months after they were rendered as…

Leighton v. Forster

Since a non-contingent contract for attorney fees between a lawyer and client must be in writing and signed by both parties in order to be enforceable, agreement which client never executed was not enforceable, and the statute of limitations had already passed on a quantum meruit action by the lawyer.  Under B&P Code 6148, a…

Jacobs v. Locatelli

Neither the statute of frauds nor the parol evidence rule precluded a real estate broker’s suit for her commission, as she could rely on extrinsic evidence to show that the one owner who signed her listing agreement did so as agent for the other owners.  The trial court erred in dismissing this suit by a…

Rincon EV Realty LLC v. CP III Rincon Towers, Inc.

A contractual jury trial waiver is unenforceable in California state court despite the contract’s choice of New York law which allows such waivers.  California’s interest in fair procedure, as embodied in its state constitutional right to a jury trial, is a fundamental policy of California which overrides the parties’ contract provision waiving the right to…

Western Surety Co. v. La Cumbre Office Partners, LLC

Since plaintiff lacked actual knowledge of limitations on his authority, the signature by the manager of a limited liability company that was itself the manager of a second limited liability company was sufficient to bind the latter company to a contract. Under Corp. Code 17703.01(d), a contract signed by two managers of a limited liability…

Norcia v. Samsung Telecommunications America LLC

Since California law treats silence as non-acceptance of a contract offer, a consumer did not agree to arbitrate disputes with Samsung by failing to respond to an arbitration clause that was included in a warranty and product information booklet packaged with a Galaxy cellphone which the customer received after signing a Verizon subscription agreement.  Finding…

Pure Water, Inc. v. City of Prescott

Plaintiff company and defendant city entered into an agreement that plaintiff’s effluent would meet certain fluoride concentration levels; subsequently, when the city passed stricter environmental regulations in order to comply with new state laws, the company’s remedy was a breach of contract lawsuit, not a claim under the US Constitution’s contracts clause.  Prescott entered into…