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Commercial Contracts
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August 15, 2024
Baha Mar Builder Blames Developer Debt As $1.5B Trial Wraps
Counsel for the Chinese state-owned construction firm that built the Bahamian luxury resort Baha Mar closed out a bench trial in New York state court on Thursday arguing that it was the resort developer's overleveraged debt, not delays in the building process, that led to $1.5 billion in losses.
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August 15, 2024
4th Circ. Won't Revive Interpreters' Unpaid Wages Suit
The Fourth Circuit declined Thursday to reinstate a lawsuit two Nepalese-English interpreters brought against a government contractor accusing it of failing to pay them overtime wages, saying the Maryland laws they sued under don't apply to their case because they worked in Afghanistan.
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August 15, 2024
Onni Capital Asks Calif. Court To Void $95M LA Tower Deal
Onni Capital LLC has sued Nexstar Media Group and an affiliate in California state court to recoup a $30 million deposit and to exit a purchase agreement for a commercial office building in Los Angeles, alleging it was misled by the seller.
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August 15, 2024
Del. Chancery OKs $175M Judgment Against Insys Founder
The convicted founder of drugmaker Insys has told Delaware's Chancery Court he agreed to accept a $175 million judgment as part of a settlement with the company's liquidation trust over his role in an opioid kickback scheme that drove the firm into bankruptcy.
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August 15, 2024
Ex-Mushroomhead Singer Sues Bandmate Over Royalties
The co-founder of metal band Mushroomhead has filed a copyright infringement and breach of contract suit in Ohio federal court accusing his fellow co-founder of failing to pay him royalties and income from tours and merchandise sales, and failing to rightfully attribute his ownership of many of the band's original musical works.
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August 15, 2024
Gas Co. Tells Chancery Texas Settlement Spikes Pipeline Duty
A settlement and Texas court's direction to vacate an earlier arbitration award has revived an Energy Transfer LP subsidiary's bid to scuttle a Delaware Court of Chancery order requiring it to build costly, high-pressure natural gas pipelines for free.
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August 15, 2024
Startup's Cannabis Payment Deal Dispute Can Move Ahead
An Illinois federal judge has preserved the bulk of a now-defunct cannabis payment startup's suit alleging Fidelity National Information Services drove it out of business by backing out of a partnership deal, saying that while there wasn't an enforceable contract, the startup sufficiently pled that FIS was misleading in its promises.
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August 15, 2024
Ga. Man Accused Of Trying To Steal $1.9M In COVID Funds
A Georgia man was indicted in a scheme to steal $1.9 million in pandemic relief money and accused of wire fraud, submitting fraudulent federal tax returns and stealing dozens of Social Security numbers, the U.S. Department of Justice announced Wednesday.
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August 15, 2024
Partners Stole Dairy Product Co.'s Trade Secrets, Suit Says
A dairy farm products company has filed a lawsuit in Massachusetts federal court claiming its manufacturing and distribution partners used its trade secrets to develop and sell a competing line of infection prevention offerings.
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August 15, 2024
DraftKings Looks To Wipe Out Suit Over Voided NBA Bets
DraftKings fired back at an aggrieved bettor suing the online sportsbook over voided NBA bets that allegedly cost him a $150,000 payday, telling an Indiana federal judge that its rules plainly allow for the cancelation of wagers offered with obviously incorrect odds.
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August 14, 2024
Fla. Gratuity Platform Alleges Toast Stole Trade Secrets
Gratuity Solutions LLC accused Boston-based Toast Inc. of misappropriating trade secrets in a lawsuit brought Wednesday in Florida federal court, alleging that executives from the point-of-sale software company stole confidential information after a failed bid to merge the two companies.
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August 14, 2024
J&J Vision Unit Sues Ex-Marketing Exec Over Move To Rival
Johnson & Johnson's vision unit sued a former marketing director on Tuesday, saying her move to a direct competitor is an "imminent threat of immediate, irreparable harm" and asking a New Jersey federal court to enforce her noncompete agreement and other post-employment obligations.
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August 14, 2024
Cannabis Fertilizer Co. Says Rival Stole IP For Fake THC Study
A company that sells fertilizer to commercial cannabis growers has claimed a competitor used its trademarks as part of an unsanctioned co-branding campaign and on THC lab testing reports that falsely advertise its products as less effective, according to a suit filed in Washington federal court.
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August 14, 2024
MLB Players Inc. Slams Pirates, Store Chain Over NIL Use
The Pittsburgh Pirates and a local convenience store chain are exploiting the names, images and likenesses of team players in marketing materials, according to a Pennsylvania federal lawsuit filed Wednesday by MLB Players Inc.
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August 14, 2024
BP Unit Can't Escape Truck Stop Suit, Developers Claim
Companies suing a BP subsidiary for terminating their truck stop franchise agreement and leaving them stuck with unrecoverable development costs hit back against its "shotgun approach" to have their suit seeking more than $300 million in damages thrown out, telling an Ohio federal judge that their complaint is grounded in compelling claims.
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August 14, 2024
NY Judge Tosses Noise Suit Against Queens Tennis Club
A New York state judge on Tuesday dismissed a Queens nonprofit's nuisance suit against The West Side Tennis Club, which was accused of being responsible for excessive noise coming from concerts held at its century-old outdoor stadium in the borough's Forest Hills neighborhood.
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August 14, 2024
Philly Art School Hit With Students' Suit Over Abrupt Closure
Two former students at the University of the Arts claimed the school's sudden shutdown in June was without proper heads-up or guidance, according to a potential class action in Pennsylvania federal court.
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August 14, 2024
Insurer Fights $29M Judgment Over Fatal Crash Coverage
An insurer urged a North Carolina state appeals court Wednesday to undo a nearly $29 million judgment in a lawsuit stemming from a claim for a fatal vehicle crash, citing a policy exclusion that barred coverage for injuries to fellow employees.
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August 14, 2024
Boeing Scraps Electric Jet Co.'s $72M Trade Secrets Trial Win
A Washington federal judge on Wednesday canceled a $72 million jury award against The Boeing Co. for misappropriating electric jet startup Zunum Aero Inc.'s trade secrets, finding Zunum offered "only vague and amorphous descriptions" of the trade secrets at trial.
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August 14, 2024
Cannabis Co. And Ex-Exec End Bad-Mouthing Dispute
A Colorado state judge has permanently dismissed a lawsuit in which a cannabis company and its former chief operating officer each accused the other of waging a smear campaign, after the parties agreed to end the litigation.
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August 14, 2024
Nursing Co. Exec Can't Split Up Fraud, Wage-Fixing Charges
A Nevada federal magistrate judge has struck two blows against a home healthcare staffing executive facing criminal charges of fixing nurses' wages and hiding that probe when selling the business for $12.5 million, as the judge refused to break up the allegations and recommended against dismissing the fraud counts.
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August 14, 2024
Ex-Allied Wallet Execs Plead Guilty In $150M Fraud Scheme
Two former executives of payment processing company Allied Wallet have admitted to their roles in a $150 million bank fraud conspiracy that tricked financial institutions into allowing otherwise restricted merchants to access the card payment networks of Visa, Mastercard, American Express and Discover.
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August 14, 2024
Insurer Off Hook For Jury Award In Construction Dispute
A commercial insurer does not have to indemnify a contractor found liable for multiple structural and other problems in a home he built, a Massachusetts intermediate appellate court concluded Wednesday in a case of first impression involving what is considered "property damage" in a construction dispute.
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August 14, 2024
NC Court Defers Ruling To Unseal Cadwalader Coverage Suit
The North Carolina Business Court on Monday did not outright reject a bid by a Lloyd's of London syndicate looking to unseal a complaint by Cadwalader Wickersham & Taft LLP seeking coverage for a November 2022 data breach, though the judge did admonish the syndicate for failing to consult with Cadwalader's counsel before filing the motion.
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August 14, 2024
Judge DQs Ex-Overstock CEO's Atty For Discovery Violations
A Washington, D.C., federal judge has granted Dominion Voting Systems' "extraordinary and rarely granted" disqualification bid over serious discovery violations by a lawyer defending Overstock.com CEO Patrick Byrne in a defamation lawsuit brought by the voting machine company.
Expert Analysis
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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.
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Patent Lessons From 7 Federal Circuit Reversals In May
A look at recent cases where the Federal Circuit reversed or vacated decisions by the Patent Trial and Appeal Board or a federal district court provide guidance on how to succeed on appeal by clarifying the obviousness analysis of design patents, the finality of a judgment, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.
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Lean Into The 'Great Restoration' To Retain Legal Talent
As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.
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9th Circ. Ruling Shows Lies Must Go To Nature Of Bargain
The Ninth Circuit’s recent U.S. v. Milheiser decision, vacating six mail fraud convictions, clarifies that the key question in federal fraud cases is not whether lies were told, but what they were told about — thus requiring defense counsel to rethink their strategies, say Charles Kreindler and Krista Landis at Sheppard Mullin.
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Adopting 7 Principles May Improve Voluntary Carbon Markets
The Biden administration's recently issued joint policy statement on improving the integrity of voluntary carbon markets may help companies using carbon credits to offset their emissions withstand scrutiny by government agencies, the public and investors, say attorneys at Morgan Lewis.
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Managing Legal Risks After University Gaza Protests
Following the protests sparked by the war in Gaza, colleges and universities should expect a long investigative tail and take steps to mitigate risks associated with compliance issues under various legal frameworks and institutional policies, say Wiley's Diana Shaw and Colin Cloherty.
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Debate Over CFPB Definition Of Credit Is Just Beginning
The Consumer Financial Protection Bureau has recently worked to expand the meaning of credit, so anyone operating on the edges of the credit markets, or even those who assumed they were safely outside the scope of this regulatory perimeter, should pay close attention as legal challenges to broad interpretations of the definition unfold, says John Coleman at Orrick.
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Abu Dhabi Ruling Hints At More Arbitration-Friendly Approach
The international and comparative rationale an Abu Dhabi onshore court used to decide that an arbitration agreement referencing a defunct arbitration center was still enforceable suggests that the UAE judiciary may be adopting a more flexible, pro-arbitration framework and stabilizing Dubai's arbitration landscape, say attorneys at Reed Smith.