Opinion ID: 791573
Heading Depth: 2
Heading Rank: 3

Heading: Dismissal of viable claims against Tracto was improper.

Text: 64 Magistrate Judge Pollak erred by recommending, and the District Court erred by effecting, dismissal of plaintiffs' claims against Tracto based solely on plaintiffs' failure to carry their burden on their cross-motion for summary judgment. That outcome could only have been justified if the lower courts, on proper analysis, had granted defendants' motion for summary judgment. This did not occur. 65 According to the terms of the MOU, Cara, by signing, commits himself and his companies, entities, etc., [to] work together [with JMB] to develop, build, market, and manage the Jay Street Project. Plaintiffs moved for summary judgment as to Tracto's being bound to perform under the MOU. The District Court properly denied that motion because the language of the text does not name or necessarily include Tracto among the Cara parties. Effecting a grant of summary judgment to Tracto was improper because the obverse is also true. 66 On the present record, significant disputes of fact remain as to 1) whether Charles Cara, exercising actual or apparent authority, entered Tracto into the MOU; and 2) whether Tracto, by partially performing and accepting the benefits of plaintiffs' partial performance, is estopped from denying or disclaiming its obligations to negotiate in good faith under the MOU. Because these disputes of fact persist, the District Court was absolutely right to deny plaintiffs' motion for summary judgment as to Tracto. That denial did not, however, entitle the District Court, without discussion, to effect a grant of Cara's motion for summary judgment by dismissing claims against Tracto. We therefore vacate the judgment of the District Court dismissing claims against Tracto and remand for further proceedings consistent with this order. 67