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Commercial Contracts
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June 26, 2024
Window Seal Maker Can't Nix Condo's Faulty Glass Panel Suit
A Washington federal judge on Tuesday refused to free a window component maker from a lawsuit claiming it helped conceal defects in a Seattle condominium's windows, saying the court had personal jurisdiction because the alleged wrongdoing was characterized as a deliberate act that affected a large number of actual Washington consumers.
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June 26, 2024
Calif. Sanctioned $111M In 30-Year Prison Staffing Case
A California federal judge has ordered state officials to hand over more than $111 million for failing to bring prison mental health staffing up to levels set by the court in 2009 in a 30-year-old case, saying Tuesday that "given defendants' contumacy, it is for the court to effect compliance."
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June 26, 2024
3rd Circ. Won't Revive Distillery Investor's RICO, Secrets Case
The Third Circuit on Wednesday agreed that the main investor of a Pennsylvania distillery can't revive his federal racketeering or trade secret claims against a former business partner and others related to the craft liquor business.
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June 26, 2024
Subway Franchisor Must Keep Paying Co. During Arbitration
A New York federal judge has granted a development company's petition to confirm an arbitrator's order requiring the Subway sandwich chain's Canadian franchisor to continue making payments on their pact while they arbitrate a contractual dispute.
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June 26, 2024
Bill Nye Asks Calif. Panel To Reboot His Disney Royalty Fight
Bill Nye the Science Guy urged a California appellate court Wednesday to revive allegations that The Walt Disney Co. cheated him out of millions in royalties for his famous educational show, arguing the trial judge erred by deciding the contract and accounting dispute instead of sending it to a jury.
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June 26, 2024
State Farm Loses Bid To Skip Atty Fees On Expert Technicality
A Texas appeals court found that State Farm may still have to pony up attorney fees in a case involving an underinsured motorist claim, saying Wednesday that the trial court got it wrong when it granted the insurance company's motion to strike the motorist's expert designation in a bifurcated trial on the fee issue.
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June 26, 2024
Colo. County's Short-Term Rental Regs Survive Challenge
A Colorado federal court has upheld a county's ordinance limiting short-term rentals in residential areas, finding it doesn't violate the 14th Amendment's equal protection clause just because it doesn't apply in areas zoned for resorts.
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June 26, 2024
Ed Tech Co. Can't Beat Investor Suit Over Bot-Inflated Classes
A New Jersey federal judge has ruled that confidential witness testimonies, among other things, "paint an unmistakable picture" that education tech company GSX Techedu Inc. used "bots" to inflate its online class enrollment numbers, in refusing to dismiss a suit against the company that demands recompense from certain executives for stock price drops.
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June 26, 2024
2 Adidas Employees Exit Amid China Compliance Probe
Adidas AG said Wednesday that two employees have left the company amid an internal investigation into allegations of compliance violations in China, saying one employee's purported misconduct concerned dealings with local vendors.
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June 26, 2024
Nantucket Festival Owner Sues Over Alleged Imposter Event
The longtime operator of Nantucket's Wine and Food Festival says a former vendor has set up a competing event with a similar name, misleading potential participants into believing the original event was acquired and that the new name was merely a "rebrand."
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June 26, 2024
EDF Renewables Units Dodging Biogas Judgment, Suit Says
A Colorado composting company claims a biogas plant venture has been stripping itself of assets in order to evade a judgment, according to a Colorado federal complaint accusing the biogas company and related enterprises of fraudulent transfers.
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June 26, 2024
Mich. Patron Sues MGM Over Denial Of $127K Blackjack Prize
A Michigan woman filed a lawsuit on Wednesday seeking to collect a $127,000 jackpot that MGM Resorts International refused to pay out after claiming the patron was trespassing following a panhandling incident that got her blacklisted from the casino.
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June 26, 2024
Jury Says Colo. Gas Co. Owes Trader $3.3M For Texas Deals
A Colorado state jury on Wednesday found that a gas marketing company breached an employment agreement and violated the Colorado Wage Claim Act when it failed to pay a trading director a $3.3 million bonus from natural gas trades made during a historic 2021 winter storm.
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June 26, 2024
Energy Cos. Trash Toshiba Depo Tactics Over $500M Upgrade
Michigan's largest energy companies told a federal judge that a Toshiba attorney berated and tried to provoke their witness during a deposition in their case alleging Toshiba botched a $500 million plant upgrade, urging the judge to reject Toshiba's sanctions request for the witness's supposed intransigence.
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June 26, 2024
Gun Co. Co-Owner Tells Del. Justices That Partner 'Lied'
A joint owner of a gun manufacturing business who accused his partner of duping him out of his 50% stake told Delaware's Supreme Court on Wednesday that the partner — who won the case — had repeatedly "lied" during Chancery Court litigation, so the trial court's decision should be overturned.
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June 26, 2024
LVMH Can't Yet Collect $490K Award From Former Legal Exec
A Manhattan judge on Wednesday confirmed LVMH Moet Hennessy Louis Vuitton Inc.'s $490,000 arbitration win for a former legal executive's alleged contract violations, but declined to enforce the payment until the two sides resolve a related sexual harassment and retaliation dispute.
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June 26, 2024
Olo Moots Investor's Chancery Suit By Axing Free Takeover
Directors of New York-based online food-ordering venture Olo have mooted a proposed class challenge to a company stock buyback program by effectively barring moves that would give the company's top investor majority control of the business, Delaware's chancellor ruled on Monday.
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June 26, 2024
Atty Agrees To Withdraw Mid-DQ Hearing In NC Biz Court
A real estate attorney on Wednesday beat opposing counsel to the punch on a motion for disqualification in a dispute over a soured business partnership, opting instead to voluntarily withdraw his representation of one party but remain as counsel for another after a state Business Court judge pointed out conflicts with him providing services to both.
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June 26, 2024
Veteran NBA Agent Says Klutch, Paul Owe Him $4.9M In Fees
Longtime NBA player agent Mark Termini has sued Klutch Sports Group and superagent Rich Paul in Ohio federal court for $4.9 million, claiming that Paul owes him fees for helping negotiate several lucrative contracts, including those for LeBron James.
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June 26, 2024
Pa. Justices Won't Hear Elliott Greenleaf Atty's $11M Fee Fight
The Pennsylvania Supreme Court will not review decisions denying a former Elliott Greenleaf attorney a cut of an $11 million referral fee for a personal injury client, after lower courts found a letter from the client requesting that the lawyer be paid was not valid and otherwise presented too late.
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June 26, 2024
Seat Belt Maker Can't Get 6th Circ. To Rethink Supplier Ruling
A Sixth Circuit panel won't reconsider its ruling that a manufacturer of car safety systems can't lock one of its suppliers into a contract to produce seat belt parts at old prices.
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June 25, 2024
Disney Must Face Trimmed ESPN Streaming Fee Antitrust Suit
A California federal judge on Tuesday threw out some antitrust claims in a sprawling proposed class action over Disney's ESPN livestreaming carriage agreements, although he permitted other portions of the suit to proceed, finding that consumers have adequately alleged Disney's actions could have hobbled competition.
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June 25, 2024
Judge Likely To Block Medical Record Co.'s Anti-Bot CAPTCHAs
A Maryland federal judge appeared ready to enjoin electronic medical records company PointClickCare from restricting nursing home analytics company Real Time Medical Systems' automated access to its online repositories Tuesday, potentially taking an early crack at defining the 21st Century Cures Act's data sharing provisions.
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June 25, 2024
Gas Co. Says Trader Flouted Credit Cap For $37M Storm Trades
A Colorado gas marketing company Tuesday urged a jury to find that an ex-trader ignored a credit policy when he helped make $37 million worth of natural gas trades during a historic 2021 winter storm, arguing that none of his testifying co-workers backed up his story.
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June 25, 2024
NC Judge Bars Consultant From Lying About Packaging Patent
A North Carolina federal judge has enjoined a patent owner from "making bad-faith, objectively false assertions of infringement" to insulated box maker Eco Fiber Inc.'s customers, as past assertions to the company's main customer have put it at "severe risk of losing [its] business."
Expert Analysis
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Series
Skiing Makes Me A Better Lawyer
A lifetime of skiing has helped me develop important professional skills, and taught me that embracing challenges with a spirit of adventure can allow lawyers to push boundaries, expand their capabilities and ultimately excel in their careers, says Andrea Przybysz at Tucker Ellis.
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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.