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Commercial Contracts
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July 23, 2024
USA Pickleball Whacks Paddle Design Contract Suit
USA Pickleball Association has asked a Maryland federal judge to toss a fraud and negligence suit filed by a paddle manufacturer, arguing it was not vindictiveness that kept it from approving the company's design, but changing standards.
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July 23, 2024
Philly Judge Won't Block FTC Noncompete Ban
A Pennsylvania federal judge refused Tuesday to temporarily block the Federal Trade Commission's impending ban on employment noncompete agreements, a victory for commission authority that could be short-lived as the agency awaits a final decision from a Texas federal judge who's already indicated an inclination to stop the regulation.
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July 23, 2024
'Surface Water' Stumps Mass. Justices In Loss For Insurers
The top court in Massachusetts on Tuesday ruled in favor of a hospital seeking insurance coverage stemming from a severe rainstorm, saying it's unclear if water that pooled on the hospital's roof should be considered "surface water" that would trigger policy limits on flood damage.
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July 22, 2024
Chicago Firm Seeks $2M For Ex-Atty's Alleged Client Poaching
Chicago firm Loftus & Eisenberg Ltd. has filed suit in Illinois state court accusing a former attorney's new firm of helping the lawyer poach clients by encouraging them to leave with him, even though the new firm couldn't support his practice.
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July 22, 2024
Fla. Jury Says Insurance Broker Owes $3M For Worker Poaching
A Florida federal jury has awarded more than $3 million in damages to a New York insurance brokerage in a trial over employment contracts, finding that a competitor interfered with its business by helping two employees breach fiduciary duties when they switched jobs and brought client lists with them.
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July 22, 2024
Gazprom Unit Illegally Seized Helium Containers, Linde Says
Linde Inc. sued RusChemAlliance and Gazprom in New York federal court Friday alleging they illegally seized helium containers in Russia as collateral in an unrelated contractual fight they have with nonparty engineering firm Linde GmbH over gas plant projects shuttered amid expanded sanctions against Russia following its invasion of Ukraine.
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July 22, 2024
House Dems Urge Tai To End Investor-State Dispute Deals
House Democrats are urging the U.S. Trade Representative to nix a mechanism allowing foreign investors to challenge government policies outside Western Hemisphere countries' judicial systems, saying corporations have used it as "ransom" to gain more industry-friendly results.
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July 22, 2024
Jury Delivers $138M Verdict In Bitcoin Mining Consultant Suit
A California federal jury unanimously found bitcoin mining firm Marathon Digital Holdings Inc. liable for nearly $139 million in damages over allegedly breaching a consultant's contract when it cut him out of the deal he brought to the firm.
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July 22, 2024
Insurer Says Bank Must Pay Its $1.1M Drawdown Request
A surety for an oil and gas operator that has recently sought Chapter 11 protection told a Washington federal court that a bank has repeatedly failed to hold up its end of an "irrevocable letter of credit," alleging the bank owes it over $1.1 million.
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July 22, 2024
Fifth Third Sued In $20M Escrow Dispute Over Dividend Solar
A private equity seller of a solar panel fintech lender that Fifth Third Bank bought in 2022 has sued the bank in New York federal court to free up $20 million in indemnity escrow funds that it alleges the bank has tried improperly to withhold over state investigations tied to the fintech.
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July 22, 2024
Scanner Maker Tells 4th Circ. Contract Ends Honeywell Suit
Laser technology company Opto Electronics urged the Fourth Circuit to overturn a jury finding that it was liable for ripping off Honeywell International over royalties for barcode scanners, arguing that a contract between the companies foreclosed the result as a matter of law.
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July 22, 2024
Anthem Blue Cross Wants Lab's $3.8M Suit Tossed
Anthem Blue Cross Blue Shield of Connecticut has asked a federal judge to toss a medical lab's lawsuit seeking nearly $3.8 million from it for refusing to pay for or underpaying for lab work and COVID-19 tests, arguing the claims are "baseless."
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July 22, 2024
Dispute Paused For Arbitration In $51M NOLA Airport Case
A Louisiana federal judge has stayed litigation initiated by a group of insurance companies in a $51 million dispute stemming from alleged design defects in a $1 billion terminal project at the Louis Armstrong New Orleans International Airport, saying claims against the insured companies will be decided in arbitration.
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July 22, 2024
Royalty Co. Wins Bid To Confirm Award Against Utopia Music
A New York federal judge has granted a petition by the former owners of artist royalties company Lyric Financial LLC to confirm an arbitral award against Lyric's buyers, Utopia Music Holdings (US) Inc. and its Swiss parent, Utopia Music AG.
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July 22, 2024
Energy Co. Accused Of Putting Off $5M Construction Project
A Houston energy company has accused its Austin business partner of failing to build a more than $5 million liquid distillation machine over four years after executing a contract to do so.
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July 22, 2024
Lexitas Says IT Consulting Co. Didn't Finish $2M Project
Litigation services company Depositions Solutions LLC, which does business as Lexitas, said in a Texas county complaint Monday that a Philadelphia-based information technology company hired to upgrade its web services failed to complete a more than $2 million project.
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July 22, 2024
'Wolf Of Airbnb' Gets 51 Mos. As Judge Sees Lack Of Remorse
A Manhattan federal judge hit the Florida man who styled himself the "Wolf of Airbnb" with over four years in prison Monday, saying the risk is high that he will break the law again after scamming New York City landlords.
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July 22, 2024
1st Circ. Doubts Calif. Law Governs DraftKings Job Fight
A former DraftKings executive seeking to undo his noncompete contract appeared to make little headway with the First Circuit on Monday as he argued that Massachusetts law should take a backseat in the dispute to California's more worker-friendly statute.
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July 22, 2024
Conn. AG Accuses Solar Cos. Of Illegal Sales Tactics
Connecticut Attorney General William Tong took three solar companies and two individuals to court for allegedly deceiving consumers into signing long-term contracts without informed consent and impersonating some people who refused so they could enter fraudulent solar contracts on those consumers' behalf.
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July 19, 2024
9th Circ. Judge Open To Reversing Google's Privacy Win
A Ninth Circuit judge appeared receptive Friday to reversing Google's summary judgment win in Chrome users' proposed privacy class action, telling Google's counsel that the standard is what a reasonable consumer would expect and "you have a much higher opinion of the average intelligence of the computer user than I."
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July 19, 2024
Class Seeks $1.5B Settlement In Payday Loan Dispute
A class of borrowers has urged a Virginia federal court to approve what would be the largest settlement ever obtained in a challenge to participants in the tribal lending industry, arguing that the agreement would give significant relief to hundreds of thousands in the form of debt cancellations and cash payments.
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July 19, 2024
'Vanderpump' Stars Face Fresh Sandwich Shop Suit
The former chef at a Los Angeles sandwich shop owned by "Vanderpump Rules" cast members Ariana Madix and Katie Maloney has accused the reality stars of refusing to honor a partnership agreement under which she was entitled to a 10% ownership stake, according to a suit filed in Los Angeles County.
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July 19, 2024
Judge Tosses Traders' Counterclaims In Trade Secrets Case
A Manhattan federal judge has ruled that Millennium Management LLC and two of its employees cannot yet use the federal trade secrets law to claim attorney fees with their allegation that investment firm Jane Street Group LLC sued them in bad faith over a proprietary trading strategy.
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July 19, 2024
2nd Circ. Rejects Webuild Discovery Bid In Panama Arbitration
The Second Circuit on Friday affirmed a Manhattan federal judge's order that quashed a subpoena from Italian builder Webuild SPA to engineering firm WSP USA for use in an arbitration related to an expansion of the Panama Canal.
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July 19, 2024
Co. Says La. Utility Ditched Millions In Restitution Claims
A Louisiana utility company wrongfully refused to accept $42.3 million in restitution for deficiencies found by a consulting company in meter technology that collects energy usage data, the consulting company alleged in Louisiana federal court.
Expert Analysis
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Practical Steps For Navigating New Sanctions On Russia
After the latest round of U.S. sanctions against Russia – the largest to date since the Ukraine war began – companies will need to continue to strengthen due diligence and compliance measures to navigate the related complexities, say James Min and Chelsea Ellis at Rimon.
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Think Like A Lawyer: Forget Everything You Know About IRAC
The mode of legal reasoning most students learn in law school, often called “Issue, Rule, Application, Conclusion,” or IRAC, erroneously frames analysis as a separate, discrete step, resulting in disorganized briefs and untold obfuscation — but the fix is pretty simple, says Luke Andrews at Poole Huffman.
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Complying With Enforcers' Ephemeral Messaging Guidance
Given federal antitrust enforcers’ recently issued guidance on ephemeral messaging applications, organizations must take a proactive approach to preserving short-lived communications — or risk criminal obstruction charges and civil discovery sanctions, say attorneys at Manatt.
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How Firms Can Ensure Associate Gender Parity Lasts
Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.
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7 Common Myths About Lateral Partner Moves
As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.
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No AI FRAUD Act Is A Significant Step For Right Of Publicity
The No Artificial Intelligence Fake Replicas and Unauthorized Duplications Act's proposed federal right of publicity protection, including post-mortem rights, represents a significant step toward harmonizing the landscape of right of publicity law, Rachel Hofstatter and Aaron Rosenthal at Honigman.
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Series
Cheering In The NFL Makes Me A Better Lawyer
Balancing my time between a BigLaw career and my role as an NFL cheerleader has taught me that pursuing your passions outside of work is not a distraction, but rather an opportunity to harness important skills that can positively affect how you approach work and view success in your career, says Rachel Schuster at Sheppard Mullin.
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Unpacking The New Russia Sanctions And Export Controls
Although geographically broad new prohibitions the U.S., U.K. and EU issued last week are somewhat underwhelming in their efforts to target third-country facilitators of Russia sanctions evasion, companies with exposure to noncompliant jurisdictions should pay close attention to their potential impacts, say attorneys at Shearman.
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Using Arbitration And Class Waivers As Privacy Suit Tools
Amid a surge in data breach class actions over the last few years, several federal court decisions indicate that arbitration clauses and class action waiver provisions can be possible alternatives to public court battles and potentially reduce the costs of privacy litigation, say Mark Olthoff and Courtney Klaus at Polsinelli.
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6 Pointers For Attys To Build Trust, Credibility On Social Media
In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.
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5 Lessons For SaaS Companies After Blackbaud Data Breach
Looking at the enforcement actions that software-as-a-service provider Blackbaud resolved with state attorneys general, the U.S. Securities and Exchange Commission and the Federal Trade Commission in the past year can help SaaS companies manage these increasingly common forms of data breaches, say attorneys at Orrick.
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A Post-Mortem Analysis Of Stroock's Demise
After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.
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2nd Circ. Ruling Will Guide Social Media Account Ownership
The Second Circuit’s recent decision in JLM Couture v. Gutman — which held that ownership of social media accounts must be resolved using traditional property law analysis — will guide employers and employees alike in future cases, and underscores the importance of express agreements in establishing ownership of social media accounts, says Joshua Glasgow at Phillips Lytle.
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Assessing The Future Of Colorado's Economic Loss Rule
The Colorado Supreme Court's decision to review a state appellate court's ruling in Mid-Century Insurance Co. v. HIVE Construction will significantly influence the future of Colorado's economic loss rule, with high stakes for the cost of doing business in the state, says David Holman at Crisham & Holman.
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Series
Coaching High School Wrestling Makes Me A Better Lawyer
Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.