Viewing: Missouri Contract Cases

Whelan Security Co. v. Kennebrew Update: Noncompetes in Missouri

In this 2013 post, I blogged about Whelan Security Co. v Kennebrew, an important Missouri case involving an employee noncompetition agreement. In that case, the Missouri Supreme Court enforced a general noncompetition agreement and modified a non-solicitation agreement against out-of-state former employees. Specifically, the Court held that a general restriction on competition within a 50-mile […] Read More

Signing a Personal Guarantee Can Be Surprisingly Costly

When you own a small business, signing personal guarantees often seems like a necessary evil. Unless your company has strong credit, landlords, lenders, and others will often require you to personally guarantee your company's obligations to them. One of the most harrowing experiences I had when I set up my own law firm was signing […] Read More

Revisiting Liquidated Damages

Last week I discussed a case in which a Missouri appellate court upheld personal guarantees when the purported guarantors had signed a promissory note under the words "Personal Guaranty and Acceptance of Terms." In that same case, the court held that a "late fee" was an unenforceable penalty, rather than an enforceable liquidated damages clause. I've […] Read More

Revisiting Personal Guarantees

There are a surprising number of cases dealing with whether people who purportedly signed a personal guarantee actually agreed to personally guarantee a contract. Many of the issues I've seen arise when someone signs at the bottom of a contract as "guarantor" rather than signing a separate guarantee document. There's nothing wrong with doing that, […] Read More

Be Careful about Contractual Duties to Provide Insurance

When someone takes on a contractual obligation to provide insurance, that duty can preclude them from looking to the other party for damages covered by the required insurance. In Storey v. RGIS Inventory Specialists, Kenneth Storey leased property to RGIS. The property was destroyed by a fire allegedly caused by one of RGIS's employees. The […] Read More

The “Duty to Read” Is Not Absolute

When you sign a contract, the law presumes that you've read it and understand its contents. This is commonly known as the "duty to read." The duty to read is one of the concepts that tripped up plaintiff Victoria Major in this case about a browsewrap "contract"; although Major never read the website's terms of […] Read More

Kansas City Chiefs Fail to Compel Former Employee to Arbitrate Age Discrimination Claim

The Missouri Court of Appeals recently upheld the denial of the Kansas City Chief's motion to compel its former employee to arbitrate an age discrimination claim. The purported arbitration agreement at issue was not binding because it was not supported by consideration. The employee had signed an arbitration agreement on her first day of work. […] Read More

Missouri Contract Cases 2012 (Part 17)

Loreen Olson brought an action alleging breach of contract and related claims, in which she asserted that the Dean of the College of Arts and Sciences had offered her the job as chair of the Communications Department at a meeting, and she had accepted. The dean then sent Olson two offer letters, one for a […] Read More

Missouri State Contract Cases 2012 (Part 16): Spousal Guarantees and Independent Contractors

I wrote about this case, which involves backdating contracts, in Backdating Contracts Is Tricky Business. In addition to the loan I discussed in that post, the appellate court considered FH Partners' ownership of another loan and held that FH Partners had a partial ownership interest in the loan, reversing the trial court. On review of […] Read More

Missouri Federal Contract Cases 2013 (Part 01): Regulation B and Economic Loss Doctrine

The United States District Court for the Western District of Missouri held that the spouse of a debtor was liable under a personal guarantee that she signed. The spouse argued that she was protected by the Equal Credit Opportunity Act (ECOA), which prohibits a creditor from discriminating against any applicant for credit on the basis […] Read More

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