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Commercial Contracts
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August 13, 2024
3rd Circ. Nixes Debt Collection Suit, Leaves Award In Question
The Third Circuit ruled Tuesday that a plaintiff fighting an arbitration loss in a proposed debt-collection class action never had standing to sue, but the appellate panel left it for an arbiter or state court to decide whether to erase the actual award in favor of the debt collector.
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August 13, 2024
3D Printing Co. Investor Wants Merger With Israeli Co. Blocked
An investor of 3D printing solutions company Desktop Metal Inc. is attempting to stop the company's proposed merger with Israeli manufacturing firm Nano Dimension Ltd., saying Desktop Metal's deficient proxy statement shows only benefits for the company's executives and directors.
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August 13, 2024
HP Inks Deal To End Claims Printer Update Locked Out Rivals
HP Inc. and a certified class of consumers told a California magistrate judge Monday that they have reached a settlement in principle to resolve a class action alleging the printer maker illegally forced customers to purchase overpriced HP-branded ink and toner supply cartridges by making alternative products incompatible with their printers.
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August 13, 2024
Tort Report: Disney Blasted For 'Absurd' Arbitration Bid
A Disney unit's unconventional bid to arbitrate a wrongful death suit and a hefty crash suit verdict out of California lead Law360's Tort Report, which compiles recent personal injury and medical malpractice news that may have flown under the radar.
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August 13, 2024
United Customer's Greenwashing Suit Preempted, Judge Says
A Maryland federal judge ruled Tuesday that federal law preempts a proposed class action alleging United Airlines misled customers by deceptively marketing its use of sustainable aviation fuels and its efforts to be green and carbon-neutral.
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August 13, 2024
Ga. Justices To Weigh Arbitrator's Closed-Door Discussions
The Georgia Supreme Court on Tuesday agreed to weigh if an arbitrator's ex parte communications with BioTek Services LLC in an allergy testing payment dispute warranted vacating BioTek's $1.7 million arbitration award over compensation for its testing of patients from Docs of CT LLC.
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August 13, 2024
Colo. Atty Says Prior Firm Took Clients, Retained Funds
A lawyer has sued a small law office in Colorado state court, alleging it asked his clients to switch counsel right before the attorney was set to leave the firm and that the law office is trying to get around a provision of his employment agreement that said he could take the clients, as well as their retainer, upon his departure.
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August 13, 2024
Ex-McCarter & English Client Wants To Undo Malpractice Loss
A New Jersey pharmaceutical business is urging a New Jersey state court to reconsider its decision to throw out the company's malpractice case against McCarter & English LLP, saying the firm "brazenly" misstated part of the timeline of the case's lengthy history.
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August 13, 2024
Ski Resort, Insurer End COVID Closure Suit Days Before Trial
Colorado ski resort company Alterra and its insurer agreed to settle a lawsuit over coverage for coronavirus pandemic shutdowns, shortly after a state judge limited Alterra's potential recovery to $1 million.
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August 13, 2024
Conn. Trial Attys Back McCarter's Bid For Punitive Award
The Connecticut Trial Lawyers Association has asked the state Supreme Court for permission to file a friend-of-court brief supporting McCarter & English LLP's bid for a punitive payout after winning multimillion-dollar judgments in a contract dispute with a former client.
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August 13, 2024
Insurer Owes $18M For Lost Wind Farm Deals, Suit Says
Belgium-based insurer QBE Europe SA/NV should be held liable for more than $18 million in losses suffered by former partners in a now-scuttled joint venture with a Danish company to build vessels for the wind farm industry, as it failed to make a good faith effort to resolve the dispute, a lawsuit filed Monday in Massachusetts federal court contends.
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August 12, 2024
Nasdaq Isn't Immune From Racial Bias Claims, Investor Says
The Nasdaq Stock Market isn't immune from racial discrimination claims because such claims are "simply too different" from the claims it actually is protected from as a self-regulatory organization, an investor in a minority-led special purpose acquisition company has argued.
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August 12, 2024
PE Firms Aim To Escape RICO Suit Over Inadequate Claims
Investment firms Advantage Capital Holdings and 777 Partners separately have asked a federal judge in New York to toss a Racketeer Influenced and Corrupt Organizations suit whose allegations include fraud, saying the plaintiff failed to sufficiently plead its claims.
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August 12, 2024
Ogborn Mihm Says Ex-Clients Won't Pay Fees On $2M Win
Ogborn Mihm LLP accused two former clients Friday of refusing to pay the full $800,000 contingency fee for their $2 million personal injury suit settlement.
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August 12, 2024
9th Circ. Won't Rethink Upending Sutter Health Antitrust Win
The Ninth Circuit refused Monday to reconsider a panel's split decision overturning Sutter Health's defeat of insurance plan purchasers' $400 million antitrust suit, summarily rejecting hospital system arguments that the court wrongly put in play corporate "purpose" and decades-old communications.
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August 12, 2024
WWE Accuser Says Doc's Lawsuit Threat Meant To Silence Her
A celebrity doctor with alleged ties to World Wrestling Entertainment Inc. and ex-CEO Vince McMahon should be sanctioned for filing a "vexatious" presuit discovery request in an effort to intimidate the woman who claimed the company and former executives sexually abused and trafficked her, she argued in a Monday motion.
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August 12, 2024
Tesla Subcontractors Didn't Violate FCA, 9th Circ. Rules
The Ninth Circuit on Monday refused to revive two foreign workers' whistleblower suit against companies tapped to provide a Tesla construction project with laborers, ruling in a published opinion that the companies didn't defraud the government by seeking cheaper work visas.
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August 12, 2024
Navy Federal, Recording Software Co. Want Privacy Suit Nixed
Navy Federal Credit Union customers can't bring an invasion of privacy class action over the credit union's use of artificial intelligence software to analyze and record customer calls, in part because its recording practices were appropriately disclosed, the nation's largest credit union has argued.
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August 12, 2024
Ryan LLC Gets HR Group Assist In Noncompete Fight
The Society for Human Resource Management threw its weight behind Dallas-based tax company Ryan LLC in the company's ongoing fight to preserve noncompete agreements, saying in a Texas federal court Monday that without nationwide relief, HR professionals and companies will suffer damages "that cannot be fully calculated."
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August 12, 2024
Colo. Brewery And Ex-Manager Settle Embezzlement Suit
A Colorado brewery and its ex-manager accused of embezzling more than $600,000 for his own business agreed to permanently dismiss a lawsuit, one day after a state judge let the brewery seek punitive damages in the case.
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August 12, 2024
Gamers Freed From Arbitration Take On Valve's 30% Cut
Valve, the operator of the dominant PC game marketplace Steam, is facing a new proposed class action accusing the company of monopolizing the gaming market to artificially inflate prices, this time from a group of plaintiffs who say they have overcome the company's arbitration agreements.
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August 12, 2024
UMich Sued By Reseller Over Football Season Ticket Revamp
A ticket reseller alleges that the University of Michigan used deceptive business practices to entice the company to funnel millions of dollars into the school in exchange for certain season ticketholder perks, only to abruptly reverse course, costing the plaintiff millions in future revenue.
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August 12, 2024
Markel Says No Coverage For Film-Financing Scheme Claims
A Markel unit said it has no duty to defend or indemnify a wealth manager or his companies against underlying claims that they misled investors into financing various film projects, telling an Illinois federal court that their policy bars coverage for claims arising out of the sale of securities.
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August 12, 2024
Construction Co. Says Tribe Can't Escape $1.9M Wage Suit
A New York construction company is fighting a bid by an entity created by the Mashpee Wampanoag Tribe to dismiss a $1.9 million wage dispute for work done on an $11.75 million Cape Cod, Massachusetts, housing project, arguing that sovereign immunity can't protect it from the litigation.
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August 12, 2024
Proofpoint Seeks To Double $13.5M IP Trial Win At 9th Circ.
Software company Proofpoint urged the Ninth Circuit to find the lower court erred in denying it exemplary damages that could have doubled its $13.5 million trade secret theft verdict, arguing that a jury should've decided the issue and the ruling violated Proofpoint's Seventh Amendment rights to a jury trial.
Expert Analysis
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How Uyghur Forced Labor Law Affects Importing Companies
Amid a growing focus on forced labor in supply chains and a likely increase in enforcement under the Uyghur Forced Labor Prevention Act, companies may face costly import delays unless they develop and implement compliance best practices, say Thad McBride and Lauren Gammer at Bass Berry.
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Revisiting Morals Clauses In The Age Of Deepfakes
Deepfakes and other forms of misrepresentation powered by artificial intelligence have complicated the traditional process of reputation management for companies entering into talent agreements with celebrities, bringing new considerations for the morals clauses that usually shield against these risks, say attorneys at Pryor Cashman.
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4 Tips For Drafting Earnouts To Avoid Disputes
Amid slowed merger and acquisition activity, buyers and sellers are increasingly turning to earnout provisions to get deals done, but these must be carefully drafted to avoid interpretative differences that can lead to later disputes, say attorneys at Cooley.
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Atmospheric Rivers: Force Majeure Or Just A Rainy Day?
As atmospheric rivers pummel California with intense rainfall, flooding and landslides, agencies and contractors in the state struggling to manage projects may invoke force majeure — but as with all construction risk issues, the terms of the agreement govern, and relief may not always be available, say Kyle Hamilton and Corey Boock at Nossaman.
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Series
Glassblowing Makes Me A Better Lawyer
I never expected that glassblowing would strongly influence my work as an attorney, but it has taught me the importance of building a solid foundation for your work, learning from others and committing to a lifetime of practice, says Margaret House at Kalijarvi Chuzi.
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What 11th Circ. Fearless Fund Ruling Means For DEI In Courts
The Eleventh Circuit's recent backing of a freeze on the Fearless Fund's grants to women of color building new companies marks the latest major development in litigation related to diversity, equity and inclusion and may be used to question other DEI programs targeted at providing opportunities to certain classes of individuals, say attorneys at Simpson Thacher.
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Opinion
Paid Noncompetes Offer A Better Solution Than FTC's Ban
A better alternative to the Federal Trade Commission's recent and widely contested noncompete ban would be a nationwide bright-line rule requiring employers to pay employees during the noncompete period, says Steven Kayman at Rottenberg Lipman.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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Cyber Takeaways For Cos. From Verizon Data Breach Report
Camilo Artiga-Purcell at Kiteworks analyzes the key findings of the 2024 Verizon Data Breach Investigations Report from a legal perspective, examining the implications for organizations' cybersecurity strategies and compliance efforts.
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Foreign Discovery Insights 2 Years After ZF Automotive
Although an Arizona federal court decision last month demonstrates that Section 1782 discovery may still be available to foreign arbitral parties, the scope of such discovery has narrowed greatly since the U.S. Supreme Court's 2022 decision in ZF Automotive, and there are a few potential trends for practitioners to follow, say attorneys at Venable.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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Rare Robinson-Patman Ruling Exhibits Key Antitrust Risk
A rare federal court decision under the Robinson-Patman Act, which prohibits certain kinds of price discrimination, highlights the antitrust risks faced by certain suppliers and is likely to be cited by future plaintiffs and enforcement officials calling for renewed scrutiny of pricing and discounting practices, say attorneys at Baker McKenzie.
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Series
Playing Chess Makes Me A Better Lawyer
There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.
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Beware Shifting Provisions In Middle-Market Loan Documents
In recent years, many credit facility provisions previously considered to be market standard have been negotiated, often turning in favor of borrowers, demanding renewed diligence from workout officers and restructuring counsel operating in the middle market, say attorneys at Crowell & Moring.