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Hospitality
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February 28, 2024
Trump Can't Freeze $465M Penalty But Can Seek Loans
A New York state appellate judge on Wednesday refused to freeze the $465 million civil fraud judgment against Donald Trump while he appeals the award, but said the former president could take out loans to cover the cost of the judgment.
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February 27, 2024
Conn. Restaurant Rejects Revamped Wine-Tasting Death Suit
Citing the statute of limitations and an alleged failure to plead a valid case, a venerable New Haven restaurant has asked a Connecticut state judge to reject an amended lawsuit accusing it of recklessly overserving alcohol at a "mandatory" employee wine tasting event and allegedly causing a worker's drunk driving death.
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February 27, 2024
La. Comfort Inn Owner Ordered To Arbitrate $2.6M Storm Suit
A Louisiana federal judge has ordered the owner of a Comfort Inn outside New Orleans to arbitrate a $2.6 million suit against its insurer over coverage for damage from Hurricane Ida, saying its insurance policy compels arbitration.
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February 27, 2024
NC Short-Term Rental Law Fight Gets Partial Remand
A North Carolina federal judge divvied up a proposed class action lodged by three vacation property companies claiming a county's recently passed zoning ordinance illegally places restrictions on short-term rentals, sending the state law claims back to state court but maintaining jurisdiction over the federal allegations.
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February 26, 2024
Live Nation Can't Cancel Suit Over Eras Tour Sales Meltdown
A California federal judge refused Friday to end a proposed securities class action alleging Live Nation made misleading statements about its operations when news of alleged anticompetitive practices with Ticketmaster caused stock prices to drop, finding the suit describes "a materially different state of affairs" than what Live Nation claimed.
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February 26, 2024
Disney Sued Over Woman's Death From Allergen-Filled Meal
A New York man whose wife died of an allergic reaction after eating at an Irish restaurant at Walt Disney World is suing both the restaurant and Walt Disney Parks and Resorts for negligence, asserting they were repeatedly assured that the food they were served was free of allergens.
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February 26, 2024
Timeshare Settlement Can't Stop Additional Consumer Suit
A Washington marketing firm must face negligent misrepresentation and consumer protection claims over links to a timeshare-exit company, according to a Washington federal judge who ruled that a group of consumers seeking refunds are not barred from suing because of a settlement in another case.
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February 26, 2024
Fla. Official Can't Save Home From Verdict, Businessmen Say
Two Miami businessmen have urged a federal judge to block a city commissioner's attempt to prevent the forced sale of his house to satisfy a $63.5 million judgment, saying he voted to unconstitutionally gerrymander the city's districts to include the property and also improperly claimed a last-minute homestead protection.
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February 26, 2024
Mass. Casino Gets 2nd Fine For Taking Illegal College Bets
The Massachusetts Gaming Commission on Monday fined Encore Boston Harbor $40,000 for improperly taking bets on games involving in-state colleges, the second such punishment doled out to the casino in the past seven months.
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February 26, 2024
Miffed NC Biz Court Mulls Sanctions After Missed Deadlines
A North Carolina Business Court judge on Monday chided counsel on both sides of an employment dispute for missing important deadlines on the eve of a jury trial, causing him to postpone the trial indefinitely and contemplate dismissing the case entirely.
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February 26, 2024
Catching Up With Delaware's Chancery Court
Delaware's Court of Chancery dropped two potentially far-reaching decisions last week: one about founder control at Moelis & Co. and another about TripAdvisor's planned move to Nevada. On top of that, there were new cases involving Citrix Systems, Alcoa Corp., BGC Partners Inc. and Cantor Fitzgerald LP.
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February 26, 2024
Burford, Sysco Object To Nixed Swap In Price-Fixing Suits
Restaurant food distributor Sysco and a Burford Capital affiliate both objected to a federal magistrate judge's decision not to allow the affiliate to replace Sysco in sprawling price-fixing lawsuits against pork and beef producers, asserting that the denial contravenes civil procedure rules and public policy.
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February 23, 2024
Restaurants Blast 'Fatal Flaws' In Chicken Price-Fix Deal
Boston Market and other restaurants objecting to Simmons Foods' $8 million chicken price-fixing settlement with direct purchasers say the Seventh Circuit should unwind the deal because it improperly releases bid-rigging claims for no consideration and turns the massive two-track case on its head.
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February 23, 2024
Balloon Co. Blew Up Appeal Of Fraud Verdict, 1st Circ. Says
A bid from the owner of a defunct balloon company to set aside an already-reduced jury award won't fly, the First Circuit has concluded, finding that the company's own acknowledgment about transferred funds "dooms their appeal."
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February 23, 2024
Trade Group Tells NC Justices COVID-19 Losses Not Covered
A dozen North Carolina eateries are not owed coverage for pandemic-related losses, the American Property Casualty Insurance Association told the state's highest court, saying the policies at issue were never intended to cover economic damages "untethered" to physical loss or damage.
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February 23, 2024
With Interest, Trump Now Owes $454M For NY Valuation Fraud
Donald Trump owes New York state nearly a half billion dollars after a county clerk on Friday tacked on $99 million in interest linked to a $355 million judgment in the state attorney general's civil fraud case against the former president last week.
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February 23, 2024
Staffing Co. To Pay $1.75M, Reclassify Workers In Calif. Deal
An online shift-booking platform for hotel and restaurant workers will pay $1.75 million to end claims by San Francisco's city attorney and the state of California that it engaged in wage theft by misclassifying thousands of jobs in the hospitality industry, according to court papers.
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February 23, 2024
Workers Snag Partial Win On Tip Notice Dispute With Denny's
It is unclear whether 10 members of a collective in a suit against diner chain Denny's received a tip credit notice, a Pennsylvania federal judge ruled, nevertheless granting an early win to the other workers claiming defective tip credit notices.
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February 22, 2024
No Partnership In Hot Dog Eatery Deal, NC Court Rules
A restaurateur has beaten a lawsuit that alleged he jilted an associate in a deal to buy hot dog eateries, with North Carolina's business court reasoning the two never had a legally binding partnership.
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February 22, 2024
DraftKings Says Ex-Exec's $310K Attys Fees Bid Is Excessive
DraftKings has told a California federal court that the "whopping" $310,000 in attorney fees requested by a former executive after the company shuffled the case back and forth between state and federal court is an unreasonable fee no "reasonable client" would pay.
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February 22, 2024
Scammer Who Did Time In Google Fraud Admits To 2nd Caper
A Dutch citizen who previously served time for a scam involving fake, early-issue Google shares copped Thursday in Manhattan federal court to a new fraud caper, after prosecutors said he tricked an investor by dangling a fake Airbnb Inc. equity stake.
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February 21, 2024
Judge Rejects $5.2M Atty Fee Bid In Poultry Farm Loan Suit
A New York federal judge rebuffed attorneys' attempt to collect a nearly $5.2 million fee for representing an affiliate of two billionaire brothers that accused an investment adviser of fraudulently inducing the affiliate to provide a loan for a Russian poultry operation, saying the adviser wasn't improperly defending himself.
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February 21, 2024
Restaurant Software Co.'s $9M Investor Deal Gets 1st OK
Shareholders in restaurant digital commerce software company Olo Inc. have received an initial green light for a $9 million deal to settle class action claims the company touted a soon-to-end partnership with fast-food chain Subway as an example of its success.
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February 21, 2024
Irish Pub Chain's Ex-CFO Gets 1.5 Years For $1M Tax Fraud
The former chief financial officer of a pub chain with more than a dozen Irish-themed restaurants was sentenced to one and a half years in prison Wednesday by an Ohio federal court for his role in a bookkeeping scheme that defrauded eight states of $1 million in sales taxes.
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February 21, 2024
CoStar, Hotel Giants Accused Of Data-Driven Price-Fixing
Hilton, Hyatt and other big name hotel operators are the target of a proposed class action alleging they colluded with hospitality industry analytics firm CoStar Group Inc. to fix prices in luxury hotel markets in Seattle and other major U.S. cities, according to a suit filed in Washington federal court.
Expert Analysis
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Opinion
Humanism Should Replace Formalism In The Courts
The worrying tendency for judges to say "it's just the law talking, not me" in American decision writing has coincided with an historic decline in respect for the courts, but this trend can be reversed if courts develop understandable legal standards and justify them in human terms, says Connecticut Superior Court Judge Thomas Moukawsher.
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Employment-Related Litigation Risks Facing Hospitality Cos.
A close look at recent hospitality industry employment claims highlights key issues companies should keep an eye out for, and insurance policy considerations for managing risk related to wage and hour, privacy, and human trafficking claims, say Jan Larson and Huiyi Chen at Jenner & Block.
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What Could Lie Ahead For Prop 22 After Calif. Appellate Ruling
On the heels of a California appeals court’s recent decision to uphold Proposition 22 — which allows gig companies to classify workers as independent contractors — an analysis of related rulings and legislation over the past five years should provide context for the next phase of this battle, says Rex Berry at Signature Resolution.
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How Bank Turmoil Is Affecting Real Estate Purchases, Sales
The new uncertainty in the availability of financing from bank lenders that were previously considered "money good," spurred by the bank crisis, has inserted a wrinkle in the commercial real estate market that alters some of the dynamics between a buyer and seller, says Simran Bindra at Thompson Coburn.
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Don't Let Client Demands Erode Law Firm Autonomy
As clients increasingly impose requirements for attorney hiring and retention related to diversity and secondment, law firms must remember their ethical duties, as well as broader issues of lawyer development, culture and firm integrity, to maintain their independence while meaningfully responding to social changes, says Deborah Winokur at Cozen O'Connor.
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Fla. Restaurants Need To Prep For Liquor License Changes
As Florida restaurant operators face potential legislative changes to special food service liquor licenses, applicants should take care to ensure that their local zoning office will be able to issue clearance based on square footage and the number of people served at one time, says Grace Yang at GrayRobinson.
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Workers, Labor Take Center Stage At ABA Antitrust Meeting
The American Bar Association’s antitrust spring meeting had a heavy emphasis on upstream markets affecting employees and talent, and prosecutors sent a clear message that they view no-solicitation, no-poach and no-hire agreements as criminal violations, even in the face of several jury trial setbacks, say attorneys at Perkins Coie.
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Opinion
Federal Judge's Amici Invitation Is A Good Idea, With Caveats
An Arkansas federal judge’s recent order — inviting amicus briefs in every civil case before him — has merit, but its implementation may raise practical questions about the role of junior attorneys, economic considerations and other issues, says Lawrence Ebner at the Atlantic Legal Foundation.
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Fox Ex-Producer Case Is A Lesson In Joint Representation
A former Fox News producer's allegations that the network's lawyers pressured her to give misleading testimony in Fox's defamation battle with Dominion Voting Systems should remind lawyers representing a nonparty witness that the rules of joint representation apply, says Jared Marx at HWG.
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Opinion
Stanford Law Protest Highlights Rise Of Incivility In Discourse
The recent Stanford Law School incident, where students disrupted a speech by U.S. Circuit Judge Kyle Duncan, should be a reminder to teach law students how to be effective advocates without endangering physical and mental health, says Nancy Rapoport at the University of Nevada.
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Dispute Prevention Strategies To Halt Strife Before It Starts
With geopolitical turbulence presenting increased risks of business disputes amid court backlogs and ballooning costs, companies should consider building mechanisms for dispute prevention into newly established partnerships to constructively resolve conflicts before they do costly damage, say Ellen Waldman and Allen Waxman at the International Institute for Conflict Prevention and Resolution.
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What The 3rd McD's Ruling Means For Claims Against Officers
The Delaware Chancery Court's third decision in the McDonald's stockholder litigation related to sexual harassment at the company indicates that plaintiff stockholders bringing Caremark claims against officers are not likely to be successful if the board acted properly, say attorneys at Fried Frank.
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Practical Skills Young Attorneys Must Master To Be Happier
For young lawyers, finding happiness on the job — with its competitive nature and high expectations for billable hours — is complicated, but three skills can help them gain confidence, reduce stress and demonstrate their professional value in ways they never imagined, says career counselor Susan Smith Blakely.
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What Calif. Employers Need To Know About Wage Theft
With the attention of the media, as well as California's state and local governments, now focused on wage theft, more Golden State employers face a dual threat of enforcement and negative publicity, so companies should take specific steps to make sure they don't find their name in the next story, say attorneys at Buchanan Ingersoll.
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ABA Opinion Should Help Clarify Which Ethics Rules Apply
A recent American Bar Association opinion provides key guidance on interpreting ABA Model Rule 8.5's notoriously complex choice-of-law analysis — and should help lawyers authorized to practice in multiple jurisdictions determine which jurisdiction's ethics rules govern their conduct, say attorneys at HWG.