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Commercial Contracts
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October 11, 2024
RICO Suit Accuses VC Co. Of Falsely Claiming Native Ties
Three California corporations have hit the owners and operators of a venture capital firm with a racketeering suit in federal court, accusing them of falsely claiming they have Native American ties and can procure grants and loans for development projects managed by non-Native entrepreneurs.
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October 11, 2024
Cornell Case Gives Justices Chance To Curb ERISA Litigation
The U.S. Supreme Court's recent decision to hear a retirement fee suit from Cornell workers means new precedent is coming that could harmonize an uneven set of circuit standards for what it takes to pursue a prohibited transaction claim under federal benefits law, attorneys say.
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October 11, 2024
Truck Rental Platform Stole Truck Owners' Profits, Suit Claims
A company that said it invested in a fleet of trucks to rent through a truck rental platform accused the rental platform company in a proposed class action filed in Colorado federal court Thursday of wrongfully pocketing more than $11 million obtained through sales of old rental trucks.
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October 11, 2024
Cable Co. CEO Says Buyer Fired Him In Violation Of Deal
An owner of a Colorado aerospace manufacturing company is suing a buyer in state court for allegedly violating the terms of their asset purchase deal, claiming the buyer fabricated a reason to fire him as CEO in order to avoid paying half a million dollars that it would otherwise owe to his company.
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October 11, 2024
Huawei Judge Asks If Netgear Suit Stretches Antitrust Law
A California federal judge expressed some skepticism Friday about allowing router maker Netgear Inc. to proceed with monopolization claims over Huawei Technologies Co.'s patents, wondering aloud whether this would amount to "saying any breach of contract claim can be turned into an antitrust case."
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October 11, 2024
DC's Amazon Antitrust Suit Gets January 2027 Trial Date
The District of Columbia attorney general's newly revived antitrust lawsuit against Amazon will go to trial in January 2027, a D.C. judge decided Friday.
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October 11, 2024
No Coverage For Wage Disclosure Suits, Insurer Says
An insurer said it has no duty to defend or indemnify two restaurant franchise operators accused of violating Washington's Equal Pay and Opportunities Act, telling a federal court that the allegations do not trigger coverage under an employment practices liability insurance policy.
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October 11, 2024
Sports Biz Seeks To Freeze Assets In Suit Over NHL Deal
A Finland-based sports agency has asked a federal judge to enjoin a Massachusetts man from transferring or disposing of any assets while a lawsuit proceeds over a scheme he allegedly carried out to avoid paying roughly $1 million awarded to the company through arbitration.
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October 11, 2024
Cannabis Biz Ex-Partners Spar Over $6.4M Judgment Payout
Two former business partners are sparring in Colorado federal court over a proposed order to hold assets related to a cannabis company to satisfy a $6.4 million judgment and whether that order can be granted in compliance with the federal Controlled Substances Act.
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October 11, 2024
Ex-Girardi Keese CFO Pleads Guilty In Calif. Wire Fraud Cases
Girardi Keese's former Chief Financial Officer Christopher K. Kamon pled guilty Friday in California federal court to two counts of wire fraud, admitting that he conspired with the firm's disgraced co-founder Tom Girardi to steal millions from a client, while also stealing millions from the firm behind Girardi's back.
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October 11, 2024
Promises Of Metaverse Art Club Were A Sham, Investors Claim
A group that claimed it would start a members-only art collection club in the Metaverse has been hit with a proposed class action alleging it misled investors about the value of the project and the benefits and returns investors would see.
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October 11, 2024
Stellantis Defeats Utah Class Cert Bid In Gearshift MDL
A Michigan federal judge declined to certify a class of Utah drivers seeking to hold Stellantis North America liable for defective gearshifts in certain Dodges, Chryslers and Jeeps, reasoning that each of the claims would have to be evaluated to determine if drivers noticed issues in the vehicles but purchased or leased them nonetheless.
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October 11, 2024
Pa. Justices Won't Review Bible App Maker's Coverage Denial
The Pennsylvania Supreme Court declined to hear a Bible app maker's coverage bid over a hacker's deletion of its videos and software stored on a GoDaddy Inc. server, letting stand an appeals panel's ruling in a case of first impression on what "your computers" means in a property policy.
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October 11, 2024
Conn. Judge OKs $5M Deal To Resolve AG's Vision Solar Case
A Connecticut state judge approved a $5 million judgment to resolve an unfair trade practices suit Attorney General William Tong brought against Vision Solar LLC.
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October 11, 2024
Mich. Firm's Settlement Dispute Returns To State Court
A Michigan federal judge ruled Friday that an attorney-client fight over how to divide settlement proceeds in a police brutality case belongs in state court, reasoning that the dispute was a matter of contract law over which he could not exercise jurisdiction.
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October 11, 2024
Subcontractor Owes Travelers $325K For Hotel Work Deal
A Travelers unit is entitled to recover $325,000 for payments made against its surety bonds to settle a general contractor's claims that a subcontractor abandoned work on an Idaho hotel, a Washington federal court ruled, finding the subcontractor liable under an indemnity agreement with Travelers.
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October 11, 2024
Boston Dynamics 'Took Advantage' Of Partner's Robotics IP
Robot maker Boston Dynamics engaged in a "flagrant and secretive" breach of its nondisclosure agreement with a manufacturer by enabling a competitor to "reverse engineer" components it had built for the Massachusetts company, according to a state court lawsuit.
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October 11, 2024
Xcel, Colo. Co-Op Reach Deal To End Power Plant Appeal
Xcel Energy and a Colorado electric cooperative have told an intermediate state appellate court that they've reached a settlement in principle to avoid further appeals of a $26 million jury verdict against Xcel in a fight over the closure of a power plant.
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October 11, 2024
Fox Rothschild Aims To Exit Malpractice Suit Over Land Row
Fox Rothschild LLP has called on a New Jersey state court to throw out malpractice claims leveled against it by two siblings who accused a lawyer at the firm of bungling a 1984 property deed and 1993 trust belonging to their stepfather, arguing the sisters are trying to improperly hold it responsible for purported, decades-old negligence by other law firms.
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October 11, 2024
Nelson Mullins Can't Beat DQ In Foreign Exchange Fraud Suit
A Florida state appeals court panel unanimously sided with a trial court Friday in deciding that Nelson Mullins Riley & Scarborough LLP can't represent the defendant in a lawsuit accusing him of duping the plaintiff into doing business with online foreign exchange platform FxWinning Ltd. because the firm previously represented the plaintiff in a "substantially related" suit against the company.
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October 11, 2024
Indicted NJ Power Broker Says Civil Suit Belongs In Biz Court
Indicted Garden State power broker George E. Norcross III has asked a New Jersey state judge to transfer the civil racketeering suit brought against him and his attorney brother by a Philadelphia developer to the state's complex business litigation program.
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October 11, 2024
RTX Warned By Judge Over 'Troubling' Settlement Delay
A Massachusetts federal judge on Friday chided RTX for slow-walking the finalization of a settlement the defense contractor struck with a Connecticut company just before trial in a trade secrets dispute.
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October 11, 2024
'Bloodsport' Poaching Case To Mediate After Disputed Verdict
An exasperated Boston federal judge on Friday talked two rival medical aesthetic device companies into a round of mediation with a magistrate judge to see if they could wrap up the fiercely litigated poaching case that's already resulted in a contested eight-figure verdict.
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October 11, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen billionaire Lakshmi Mittal sue steel magnate Sanjeev Gupta in a long-running clash to claw back €140 million ($153 million) of debt, a high-profile AI researcher take action against the Intellectual Property Office to register his software as a listed patent inventor and troubled housing trust Home Reit face a claim by a real estate developer. Here, Law360 looks at these and other new claims in the U.K.
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October 10, 2024
Ejudicate Ran 'Bogus' Student Loan Arbitrations, CFPB Says
The Consumer Financial Protection Bureau announced Thursday that it has banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying the company misled student borrowers about its neutrality and initiated "bogus" arbitration proceedings.
Expert Analysis
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Examining The Arbitration Clause Landscape Amid Risks
Amid a new wave of mass arbitrations, recent developments in the courts and from the American Arbitration Association suggest that companies should improve arbitration clause drafting to protect themselves against big-ticket settlements and avoid major potential liability, say attorneys at Benesch.
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10 Areas To Watch In Aerospace And Defense Contracting Law
The near future holds a number of key areas to watch in aerospace and defense contracting law, ranging from dramatic developments in the space industry to recent National Defense Authorization Act updates, which are focused on U.S. leadership in emerging technologies, say Joseph Berger and Chip Purcell at Thompson Hine.
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Meta Data Scraping Case Has Lessons For Platforms, AI Cos.
The California federal court ruling that artificial intelligence company Bright Data's scraping of public data from Meta social media sites does not constitute a breach of contract signals that platforms should review their terms of service and AI companies could face broad implications for their training of algorithms, say attorneys at Arnold & Porter.
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Opinion
Judicial Independence Is Imperative This Election Year
As the next election nears, the judges involved in the upcoming trials against former President Donald Trump increasingly face political pressures and threats of violence — revealing the urgent need to safeguard judicial independence and uphold the rule of law, says Benes Aldana at the National Judicial College.
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Series
Riding My Peloton Bike Makes Me A Better Lawyer
Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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What 2 Years Of Ukraine-Russia Conflict Can Teach Cos.
A few key legal lessons for the global business community since Russia's invasion of Ukraine could help protect global commerce in times of future conflict, including how to respond to disparate trade restrictions and sanctions, navigate war-related contract disputes, and protect against heightened cybersecurity risks, say attorneys at Morgan Lewis.
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Assessing 2 Years Of High Court's Arbitration Waiver Ruling
In the two years since the U.S. Supreme Court's decision in Morgan v. Sundance, clarifying that no special rules apply to waiver of arbitration provisions, the ruling has had immediate ramifications in federal courts, but it may take some time for the effects to be felt on other federal issues and in state courts, say attorneys at Norton Rose.
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What Recent Study Shows About AI's Promise For Legal Tasks
Amid both skepticism and excitement about the promise of generative artificial intelligence in legal contexts, the first randomized controlled trial studying its impact on basic lawyering tasks shows mixed but promising results, and underscores the need for attorneys to proactively engage with AI, says Daniel Schwarcz at University of Minnesota Law School.
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The Epic Antitrust Cases And Challenges Of Injunctive Relief
The Epic cases against Apple and Google offer a window into the courts' considerable challenges in Big Tech litigation and establishing injunctive relief that enhances competition and benefits consumers, say Kelly Lear Nordby and Jon Tomlin at Ankura Consulting.
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UMG-TikTok IP Rift Highlights Effective Rights Control Issues
Despite Universal Music Group's recent withdrawal of TikTok's licensing rights to its music catalog, the platform struggles to control uploads and reproductions of copyrighted material, highlighting the inherent tension between creative freedom and effective rights control in the age of social media, says Simon Goodbody at Bray & Krais.
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Fintech 'Prenups': Planning For A Card Program Breakup
After a year of economic downturns, some banks and their fintech partners are realizing they may have rushed to the altar without a good prenup, but planning ahead can curb both foreseeable and unexpected issues in the event of a termination of a bank-fintech card-issuing agreement, say Andrew Grant at Ketsal and Richard Malish at Community Federal Savings Bank.
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3 Notification Pitfalls To Avoid With Arbitration Provisions
In Lipsett v. Popular Bank, the Second Circuit found that a bank's arbitration provision was unenforceable due to insufficient notice to a customer that he was bound by the agreement, highlighting the importance of adequate communication of arbitration provisions, and customers' options for opting out, say attorneys at Covington.
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2nd Circ.'s Nine West Ruling Clarifies Safe Harbor Confusion
The Second Circuit’s recent ruling in Nine West’s Chapter 11 suit clarifies that courts in the circuit will apply a transfer-by-transfer analysis to determine the applicability of Section 546(e) of the Bankruptcy Code, and that to be safe harbored, a financial institution must act as an agent with respect to the specific transfer at issue, says Leonardo Trivigno at Carter Ledyard.
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Litigation Inspiration: A Source Of Untapped Fulfillment
As increasing numbers of attorneys struggle with stress and mental health issues, business litigators can find protection against burnout by remembering their important role in society — because fulfillment in one’s work isn’t just reserved for public interest lawyers, say Bennett Rawicki and Peter Bigelow at Hilgers Graben.