United States First Circuit

In a suit for breach of contract involving a commercial building in San Juan, Puerto Rico, following a large fuel spill at the building that caused significant damages and displacement of the building's tenants, district court's grant of summary judgment in favor of defendant on plaintiff's claims for breach and resolution of contract and defendant's counter-claim for breach of contract is affirmed in part, vacated in part and remanded where: 1) district court erred by entering summary judgment sua sponte as to plaintiff's entire material damage claim without appropriate notice; 2) given that the text of the agreement reasonably supports multiple, conflicting interpretations, the district court erred in concluding a reasonable estimate of costs to repair the "Property" unambiguously referred only to physical repairs; 3) plaintiff has no remedy or recourse for defendant's alleged failure to provide the required estoppels as it chose not to pursue either of the options provided by Section 7.3.7(c) of the agreement; 4) viewed in the light most favorable to plaintiff, the evidence permits a finding that defendant did not fulfill its maintenance obligations under Section 6.1.3 of the agreement; and 5) the district court acted within its discretion in denying plaintiff's motion to compel.

Appellate Information

• Decided 08/05/2010
• Published 08/05/2010

Judges

• LIPEZ

Court

• United States First Circuit

Counsel

• For Appellant:
  
• Robert I. Steiner, Eric A. Tulla