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Commercial Contracts
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November 26, 2024
Customers Sue Fintech Partner Banks After Processor Failure
Five banks holding funds for customers of fintech platforms face proposed class action claims of gross mismanagement after "significant ledger irregularities" totaling $85 million were discovered in the wake of an intermediary software company's bankruptcy.
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November 26, 2024
Tossing Uri Consumers' Claims Stifles 'Growth,' Justice Says
A Texas appellate court justice said Tuesday that a decision by the court finding that power plants owed nothing to consumers for damages resulting from outages during Winter Storm Uri stifles "growth" in common law, dissenting from his colleagues who denied a motion for the whole court to rehear the case.
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November 26, 2024
Split 4th Circ. Won't Review Duke Monopoly Suit Revival
A split Fourth Circuit denied on Tuesday an en banc review petition challenging a decision reviving antitrust allegations against Duke Energy, with the majority writing that granting the review would waste judicial resources, and a dissenting judge slamming the majority for purportedly being at odds with U.S. Supreme Court precedent.
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November 26, 2024
Atty Sanctioned In Privacy Suit Over Dodgy Prejudice Claims
A Texas federal judge chided a plaintiffs' attorney during a Tuesday hearing in a privacy-related proposed class action, saying the lawyer needs a "refresher" on local rules and fining him $150 for seemingly pushing his own self-interests.
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November 26, 2024
10th Circ. Spikes Bid To Block Trans Athlete From Tourney
A pair of Tenth Circuit judges on Tuesday denied an emergency motion by female volleyball players to block a San Jose State University transgender athlete from competing in a tournament that begins Wednesday, agreeing with a Colorado federal judge's conclusion that the lawsuit's tardiness undermines the request for such quick relief.
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November 26, 2024
Susman Godfrey Riding 'Coattails' In $147.5M Deal, Court Told
Susman Godfrey LLP should be denied fees for representing objectors to a $147.5 million global settlement of a life insurance proposed class action in Connecticut, class counsel has argued, saying the firm sought to "impede" rather than secure the deal and only rode class counsel's "coattails."
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November 26, 2024
Affinity Bar Groups Decry Colo. No-Poach Restrictions
Several attorney groups told Colorado's justices that barring lawyers from recruiting colleagues before officially leaving a firm would take away professional autonomy and harm lawyers from underrepresented backgrounds the most, filing briefs in support of a lawyer's challenge to her contract with a personal injury firm.
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November 26, 2024
Jackson Hewitt Workers Get Final OK On $10.8M Settlement
A federal judge granted final approval to a $10.8 million settlement between former Jackson Hewitt Inc. workers and the tax preparation firm over claims the company's franchisees entered into an anti-competitive no-poach agreement despite the provision being removed from the company's franchise agreements.
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November 26, 2024
Pac-12 Agreed To 'Poaching' Clause, Mountain West Insists
The Pac-12 Conference "unconditionally" agreed to all of last year's scheduling agreement with the Mountain West Conference, including a multimillion-dollar "poaching penalty,'' Mountain West claimed in California federal court, pushing back at the Pac-12's argument that the fee for luring away five teams is illegal.
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November 26, 2024
CGL Carrier Seeks $1.2M In Inter-Insurer Injury Dispute
A general liability insurer told a Michigan federal court that a professional liability insurer owes $1.2 million toward a $1.5 million settlement reached in an underlying lawsuit involving their mutual insured, a cardiovascular practice located in a Detroit hospital, arguing that the professional liability policy covered the claim.
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November 26, 2024
Law Firms' Tobacco Fee-Sharing Showdown Revived In Texas
A split Texas appeals panel has remanded a dispute between an attorney and an ex-attorney over a fee-sharing agreement in tobacco litigation, finding that the contract was ambiguous and that a trial court was wrong to conclude otherwise.
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November 26, 2024
MLBPA, FanDuel Ink Licensing Deal After Settling Legal Spat
The Major League Baseball Players Association, FanDuel and OneTeam Partners on Tuesday announced that they are teaming up on a product and marketing licensing agreement, a move that comes just weeks after FanDuel was dropped from an MLBPA lawsuit over the alleged use of players' photos to promote sports gambling.
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November 26, 2024
Newman's Own's Quick IP Win Bid Meets Skeptical Judge
A Connecticut Superior Court judge on Tuesday appeared skeptical of Newman's Own Foundation's early win request in a licensing feud with two of late actor Paul Newman's daughters, criticizing the charity for using the wrong court proceeding to challenge the daughters' rights to sue while hinting a trial is likely needed.
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November 26, 2024
X Corp. Says InfoWars Social Media Accounts Can't Be Sold
The parent company that owns X, the social media platform formerly known as Twitter, told a Texas bankruptcy judge that the Chapter 7 trustee in the case of right-wing conspiracy theorist Alex Jones can't sell X accounts tied to Jones and his InfoWars business because they are the property of the social media company.
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November 26, 2024
7th Circ. Says Insurer Must Defend $3.4M Faulty Work Row
An architectural design firm's commercial general liability insurer must defend it and its owner against faulty work claims seeking more than $3.4 million in damages, the Seventh Circuit ruled, after the Illinois Supreme Court overturned prior appellate precedent siding with insurers in such disputes.
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November 26, 2024
Ropes & Gray Atty Is Kirkland's Latest Debt Finance Hire
Kirkland & Ellis LLP announced the latest of several recent additions to its debt finance group on Monday, a Ropes & Gray LLP partner with a host of multibillion-dollar deals under his belt.
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November 26, 2024
Chemical Co. Demands Defense Coverage In PFAS Foam MDL
Specialty chemical company Clariant Corp. is suing five of its insurers in the North Carolina Business Court seeking defense costs in a host of underlying mass tort lawsuits over forever chemicals found in firefighting foam products.
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November 26, 2024
DraftKings Wants Damages In NFLPA's Licensing Suit Axed
DraftKings Inc. wants partially tossed a suit launched by the NFL Players Association alleging the sports betting giant failed to make good on a licensing agreement related to nonfungible tokens, saying the players are not entitled to any damages but as a threshold matter, the maximum potential damages should be capped.
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November 25, 2024
Drake Says UMG Paid To Boost Kendrick Lamar's Diss Track
Universal Music Group conspired with Spotify to blast Kendrick Lamar's "Not Like Us" single to the top of the airwaves by using bots, pay-to-play agreements and other shady tactics at the expense of Drake and other artists, the Canadian rapper alleged Monday in a Manhattan court filing.
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November 25, 2024
Geico, Travelers To Pay NY $11.3M To Settle Data Security Row
New York's financial services regulator and attorney general revealed Monday that they've hit Geico and Travelers with $11.3 million in penalties for the auto insurers' alleged failure to adequately secure driver's license numbers, birth dates and other personal information that was compromised as part of a hacking campaign targeting online rate quote tools.
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November 25, 2024
SEC Secured Historic $8.2B Enforcement Haul In 2024
The U.S. Securities and Exchange Commission obtained $8.2 billion in civil penalties and disgorgement via successful enforcement actions in 2024, the highest amount in the history of the agency despite a significant decline in total enforcement actions, the SEC has announced.
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November 25, 2024
Uber Negligence Case Can Be Arbitrated, NY High Court Says
New York's highest court affirmed on Monday that a woman who was struck by a car upon exiting an Uber in Brooklyn must pursue her negligence claims in arbitration, after a divided panel upheld the rideshare company's "clickwrap" arbitration agreement.
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November 25, 2024
9th Circ. Won't Reverse Amber Heard's Loss In Coverage Suit
The Ninth Circuit upheld an insurer's favorable ruling Monday in its legal dispute with actress Amber Heard, affirming that she had no right to independent counsel paid for by New York Marine and General Insurance Co. in a defamation suit by her ex-husband, Johnny Depp.
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November 25, 2024
Pitt Ordered To Disclose Docs Jolie Says Will Prove Abuse
A California judge overseeing a dispute between Brad Pitt and Angelina Jolie over a multimillion-dollar French winery ruled Monday that Pitt must disclose documents and communications that Jolie says will prove he sought to cover up his domestic violence against her and their children.
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November 25, 2024
Gov't Defends EB-5 Rule That Hikes Up Petition Fees
The U.S. Department of Homeland Security and its U.S. Citizenship and Immigration Services agency pushed for an early win in Texas federal court against a suit challenging increases for filing fees for petitions related to USCIS' EB-5 immigrant investor program.
Expert Analysis
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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OpenAI's Patent Pledge Is Not All It Seems
A recent statement that OpenAI won't assert its own patents is more of an aspiration than an obligation, and should prompt practitioners to think deeply about the underlying legal mechanisms of patent and contract law when determining the effectiveness of similar nonassertion pledges, say attorneys at McDonnell Boehnen.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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FERC's Reactive Power Compensation Cutoff Is No Shock
While the Federal Energy Regulatory Commission's recent final rule ending compensation for reactive power provided within the standard power factor range will mean less revenue for some generators, it should not come as a surprise, since FERC has long signaled its interest in this shift, says Linda Walsh at Husch Blackwell.
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Opinion
Feds May Have Overstepped In Suit Against Mortgage Lender
The U.S. Department of Justice's lawsuit against Rocket Mortgage goes too far in attempting to combat racial bias and appears to fail on the fatal flaw that mortgage lenders should be at arm's length from appraisers, says Drew Ketterer at Ketterer & Ketterer.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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Next Steps In The $2.8B Blue Cross Payout To Providers
Healthcare providers deciding whether to participate in Blue Cross Blue Shield network's recent $2.8 billion antitrust class action settlement must weigh key recovery factors, including provider type and litigation cost, say attorneys at Hall Render.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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Key Territory-Split Licensing Lessons For Life Sciences Cos.
Territory-split deals can allow life sciences companies to maximize products' potential across a range of geographic areas, but these deals also present unique challenges requiring highly bespoke structures that can make or break the value of an asset, say attorneys at Covington.
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Notable Q3 Updates In Insurance Class Actions
Total loss valuation cases and labor depreciation cases dominated the past quarter of insurance class actions, with courts continuing to reject challenges to condition adjustments in the former, and a pro-insured trend persisting in the latter, say attorneys at BakerHostetler.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.