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Delaware
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January 15, 2025
Crafts Retailer Joann Hits Ch. 11 Again With $616M In Debt
Fabrics and crafts retailer Joann Inc. filed for Chapter 11 protection in Delaware bankruptcy court Wednesday with $615.7 million in debt and a plan to sell its assets, the company's second Chapter 11 filing in less than a year.
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January 14, 2025
Chancery Hits Co. With $2.9M Atty Fee Bill As Sanction
A California medical device molding company that sought millions from a merger partner for breaches of contract in Delaware's Court of Chancery came away Tuesday with awards of $104,000 for its claims and $2.9 million in attorney fees as a sanction for contempt and spoliation by Symbient Product Development LLC founder Scott Castanon.
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January 14, 2025
DOL Backs Uber Drivers' Bid To Revive Employment Case
The Department of Labor threw its support behind Philadelphia Uber Black drivers in their employment classification case, telling the Third Circuit that the lower court misapplied agency guidance in its dismissal of the long-running lawsuit against the ride-sharing company.
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January 14, 2025
TripAdvisor, Class Flip Nevada Move Positions In Del. Appeal
Attorneys for the boards and controller of TripAdvisor and Liberty TripAdvisor have asked Delaware's Supreme Court to keep alive their appeal from a lower court's refusal to toss a suit challenging their reincorporation in Nevada, despite a call for dismissal by class attorneys who had previously opposed both the deal and appeal.
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January 14, 2025
Airline Workers' Attys Get $4.2M From ESOP Deal
A Delaware federal judge Tuesday awarded over $4.2 million in fees to class counsel in a suit over alleged mismanagement of the employee stock ownership plan at bankrupt cargo hauler Western Global Airlines that was settled in September for $14.5 million.
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January 14, 2025
Wynne Transportation Can Tap Some Of $6M DIP In Ch. 11
A Delaware bankruptcy judge said Tuesday she will allow transportation service provider Wynne Transportation to borrow $2 million in initial debtor-in-possession financing on an interim basis, clearing the way to fund a Chapter 11 case the company launched in the wake of a nearly $33 million arbitration judgment.
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January 14, 2025
Fleeing-Or-Eluding Not Grounds For Removal, 3rd Circ. Says
A Kenyan man allowed to enter the U.S. on a diversity visa can't be subject to deportation based on two felony convictions for vehicular fleeing or attempting to elude police in Pennsylvania, the Third Circuit said in a precedential opinion on Monday.
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January 14, 2025
Trade Secret Suit Sends New Zealand Software Co. Into Ch. 15
A New Zealand company that develops actuarial software products supported by artificial intelligence commenced a Chapter 15 bankruptcy case in Delaware Tuesday, saying ongoing trade secrets litigation had harmed its sales and operations.
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January 14, 2025
Pillsbury Wants Out Of Chancery Suit Against Auto Seller Biz
Pillsbury Winthrop Shaw Pittman LLP wants to escape or force arbitration of an aiding and abetting breach of fiduciary duty claim that was asserted in Delaware Chancery Court by a stockholder and former director of Quantum Automotive Intelligence Inc., saying a "broad arbitration provision" exists between the law firm and company.
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January 13, 2025
Special Counsel Slams Biden's Critique Of Son's Prosecution
The special counsel who oversaw the investigation into Hunter Biden, which was wiped out by a presidential pardon, released a report published Monday criticizing President Joe Biden's "baseless accusations" that his son was "selectively" prosecuted and warning that such comments threaten "the integrity of the justice system as a whole."
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January 13, 2025
IPRs Aren't 'Voluntary,' Dish Tells Justices In Fee Fight
Dish Network LLC is kicking up a fight at the U.S. Supreme Court over the question of whether filing petitions at the Patent Trial and Appeal Board is "voluntary" or not, in a bid to get "exceptional" plaintiffs to pay for litigation costs there.
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January 13, 2025
Investment Firm Seeks Coverage For Hertz Buyback Suits
An investment adviser said its insurers must provide coverage for underlying actions related to the adviser's involvement in car rental company Hertz Global Holdings Inc.'s stock buybacks, telling a Delaware state court that its primary carrier improperly denied coverage.
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January 13, 2025
Truth Social SPAC Ex-CEO Seeks Del. Suit Toss Or Freeze
The former manager of the blank check company that sponsored a deal to take now President-elect Donald Trump's social media platform public heads into a pivotal Delaware Court of Chancery hearing Wednesday, seeking to freeze or scuttle a suit claiming that he and others secretly diverted millions of shares from co-investors.
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January 13, 2025
SEC Must Explain Coinbase Crypto Rule Denial, 3rd Circ. Says
A Third Circuit panel delivered a partial win to Coinbase on Monday when it ordered the U.S. Securities and Exchange Commission to provide "a more complete explanation" of why it denied the crypto exchange's request for rulemaking on how securities laws apply to digital assets.
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January 13, 2025
Pa. AG Urges 3rd Circ. To Revive Uber Drivers' Wage Suit
Pennsylvania's attorney general urged the Third Circuit to revive a class action accusing Uber of misclassifying drivers as independent contractors, saying the worker-friendly Pennsylvania wage and hour law claims should not have been thrown out.
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January 13, 2025
Wynne Transportation Files Ch. 11 After $32M Arbitration Loss
Transportation services company Wynne Transportation Holdings LLC filed for Chapter 11 protection in Delaware after an arbitrator said it must pay a former subcontractor $32.8 million because it severed their partnership after the state of Texas required it to bus migrants to Democratic-controlled areas.
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January 13, 2025
Justices Won't Weigh Del. Gun Laws, Injunction Standards
The U.S. Supreme Court turned away a challenge to Delaware's gun laws that could also reset expectations for getting interim relief in cases involving constitutional rights, according to orders released Monday.
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January 12, 2025
Justices To Review Whether Ex-Wife Can Challenge Tax Levy
The U.S. Supreme Court will review a Third Circuit decision allowing a woman to continue challenging what she claims was an improper application of her tax payment to her ex-husband's bill even after the Internal Revenue Service stopped pursuing a proposed property seizure against her.
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January 10, 2025
X Fights Finding Severance Row Contract Claims Can Survive
X Corp. and Elon Musk squared off with ex-Twitter workers in Delaware federal court, filing dueling briefs that took opposing stances over whether a district judge should adopt a recommendation to keep alive some breach-of-contract allegations in the workers' proposed class action claiming they were cheated out of severance benefits.
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January 10, 2025
GSK Hits Back At Moderna Counterclaims In Patent Feud
GlaxoSmithKline wants a Delaware federal court to quickly reject some of the counterclaims leveled by Moderna in response to patent suits over the company's mRNA vaccines.
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January 10, 2025
New Pirate Loot Claims Lodged In Chancery
A Flying Dutchman of a legal wrangle over a treasure-laden, sunken pirate ship off Cape Cod, Massachusetts, surfaced again Friday in Delaware's Court of Chancery in an investor suit demanding books and records on a decades-long salvage operation and alleging possible fraudulent conveyances by "rogue fiduciaries."
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January 10, 2025
Fed. Circ. Revives Novartis Entresto Patent In MDL
The Federal Circuit on Friday revived a patent covering Entresto, a blockbuster heart failure drug made by Novartis, as part of multidistrict litigation where the company has tried to block generic versions of the product.
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January 10, 2025
3rd Circ. Won't Revive Ex-US Steel Worker's Race Bias Suit
The Third Circuit upheld U.S. Steel's win over a Black former train operator's lawsuit claiming he was fired after he was erroneously blamed for a 2015 derailment, ruling Friday he'd failed to show his race cost him the job rather than his lengthy disciplinary record.
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January 10, 2025
Fed. Circ. Skeptical Ioengine Can Overcome On-Sale Bar
A Federal Circuit panel seemed doubtful Friday that none of the hundreds of people who downloaded a firmware upgrade affiliated with an early flash drive used it, which Ioengine LLC would need to prove to beat an on-sale bar invalidation of its patents.
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January 10, 2025
US Trustee Balks At Ch. 11 Bid Protections In First Mode Case
A package of bid protections for the stalking horse of bankrupt electric-engine developer First Mode needs to be reined in, the Office of the U.S. Trustee has said, urging a Delaware bankruptcy judge to reject the debtor's request that expenses and fees tied to the $15 million bid be paid as priority claims.
Expert Analysis
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.
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How 3rd Circ. Raised Bar For Constitutional Case Injunctions
The Third Circuit's decision in Delaware State Sportsmen's Association v. Delaware Department of Safety & Homeland Security, rejecting the relaxed preliminary injunction standards many courts have used when plaintiffs allege constitutional harms, could portend a shift in such cases in at least four ways, say attorneys at Gibson Dunn.
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The Fed. Circ. In June: More Liability For Generic-Drug Makers
The Federal Circuit’s June ruling in Amarin v. Hikma will likely result in more allegations of induced infringement by generic drugs postapproval, with more of those cases proceeding to at least the summary judgment stage instead of being cut off at the outset, say Jeremiah Helm and Sean Murray at Knobbe Martens.
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Opinion
Congress Must Increase Small Biz Ch. 11 Debt Cap
Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.
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Opinion
Expert Witness Standards Must Consider Peer Review Crisis
For nearly two decades, the so-called replication crisis has upended how the scientific community views the reliability of peer-reviewed studies, and it’s time for courts to reevaluate whether peer review is a trustworthy proxy for expert witness reliability, say Jeffrey Gross and Robert LaCroix at Reid Collins.
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Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days
In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Patent Lessons From 5 Federal Circuit Reversals In June
A look at June cases where the Federal Circuit reversed or vacated decisions by the Patent Trial and Appeal Board or a federal district court highlights a potential path for branded drugmakers to sue generic-drug makers for off-label uses, potential downsides of violating a pretrial order offering testimony, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Examining Chancery's Relaxed New Confidential Filing Rules
The Delaware Court of Chancery’s overhauled Rule 5.1, which governs confidential filings, risks permitting nonconfidential information to be shielded from public review unless and until a challenge notice is filed — but several potential solutions could help to override this issue, says Delaware attorney Daniel J. McBride.
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Del. 3M Ruling Risks Upending Corporate Insurance Programs
A Delaware court's findings last week in the 3M earplug insurance litigation that a parent company's defense fee payments don't count toward a subsidiary's self-insured retention and that an insurer's duty to pay defense costs doesn't attach to multidistrict litigation merit closer scrutiny in light of the modern corporate form and the fundamental objectives of MDLs, say Julie Hammerman and Gary Thompson at Thompson HD.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.