On April 22, 2011, Neil Dymott obtained a victory by summary judgment for its client in the United States District Court for the Middle District of Louisiana. The plaintiff, a mortgage company, had a written contract for services with Neil Dymott's client, a credit reporting agency. The client then suspended services when one of the credit repositories questioned the plaintiff's practices under the federal law. The plaintiff sued the client for breach of the implied covenant of good faith and fair dealing, detrimental reliance and violations of the Louisiana Unfair Trade Practices Act as a result of the suspension of service.
Attorneys Hugh McCabe and David Hall worked through local counsel to defend the client. The federal judge initially dismissed the implied covenant and the detrimental reliance claims because the express langauge of the contract gave the client the right to take the action it did. Further, the plaintiff's reliance was not reasonable in light of the language in the service contract. Once those claims were removed, the Court held the Louisiana statute was not violated and dismissed the case.
Hugh A. McCabe is a shareholder in our San Diego office. He concentrates his practice on employment law, business litigation and trucking and transportation matters. For further information, Mr. McCabe can be reached at (619) 238-1712 or hmccabe@neildymott.com.
David P. Hall is an associate at Neil Dymott specializing in the area of business litigation and employment law. Mr. Hall represents companies and individuals in most areas of business including breach of contract, fiduciary duty, state and federal law, wrongful termination and harassment claims. Mr. Hall may be reached at dhall@neildymott.com.