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Transportation
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August 08, 2024
Feds Seek 2 Years For Accountant In $8M Payroll Tax Scheme
A New Jersey moving company's head accountant should serve a two-year sentence for being the "nerve center" of a nearly $8 million payroll tax scheme, prosecutors told a New York federal judge in a bid to deny the man's request for a noncustodial sentence.
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August 08, 2024
New Car Seat Isn't Yesterday's Model, Judge Says In IP Suit
An Ohio infant car seat company convinced a Delaware federal court that its newly designed car seats are not the same as the patent-infringing ones that were the subject of a sales ban and a $3.2 million court judgment won by a Taiwanese rival.
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August 08, 2024
States, Industry Back High Court Review Of Calif. Waiver
The U.S. Chamber of Commerce, American Petroleum Institute and a group of states led by Iowa are urging the U.S. Supreme Court to reverse the federal government's decision to continue to allow California to set its own vehicle emissions programs.
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August 08, 2024
Colo. Trailer Dealership Says Would-Be Buyer Infringed TM
A Colorado trailer dealership is accusing a competitor that purportedly tried to buy its business of changing its public name to one confusingly similar to the dealership's registered trademark after the acquisition offer was rejected for being "much less than plaintiff's business was worth."
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August 08, 2024
FedEx Sued By 15K Drivers After OT Collectives End
About 15,000 drivers who worked for FedEx across the U.S. through intermediary employers have filed lawsuits in Pennsylvania and Massachusetts federal courts arguing the logistics giant is responsible for their lack of overtime wages as a joint employer, launching individual claims following a failed effort to sue as a collective.
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August 08, 2024
Rolls-Royce Removes 'Interim' From Unit GC's Title
The new general counsel for the North American arm of United Kingdom-based defense aerospace company Rolls-Royce is a familiar face at the company, having most recently held the top lawyer position on an interim basis following the departure of the previous general counsel earlier this year.
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August 07, 2024
Insurer Wants Bad Faith Claim Tossed In Russian Planes Suit
HDI Global and underwriters of insurance policies on airplanes stranded in Russia have asked a Florida court to toss a bad faith claim by aircraft leasing company Avmax, arguing that bad faith only applies to coverage denials without a reasonable basis and that in this case there has been no denial, and it is "fairly debatable" whether coverage applies.
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August 07, 2024
Republican Lawmakers Target Union Pension Overpayments
Two struggling union pension plans have returned excess bailout funds they received because deceased pensioners weren't removed from their directories, but the Pension Benefit Guaranty Corp. hasn't said whether 60 other plans with deceased pensioners in their directories returned any extra funds, two Republican congresspeople said.
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August 07, 2024
Pipe Co. Exec Says Criminal Antitrust Charges Unconstitutional
A former executive of an aluminum pipe company defending the Fourth Circuit's reversal of his bid-rigging conviction has told the U.S. Supreme Court to rule that all criminal antitrust prosecutions under Section 1 of the Sherman Act are unconstitutional, claiming they violate "fundamental constitutional principles" of nondelegation and objectivity.
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August 07, 2024
Titan Victim's Family Sues For $50M Over Sub's Design Flaws
The family of a French explorer who was killed when the Titan submersible imploded during an expedition to the wreck of the Titanic is seeking $50 million from the sub's operator over claims it purposely concealed the vessel's flaws, according to a wrongful death lawsuit lodged in Washington state court.
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August 07, 2024
NTSB Hearing Probes FAA Review, Boeing Quality Control
The Federal Aviation Administration maintained that it is appropriately overseeing Boeing even after years of audits revealed multiple instances of unauthorized work on the aircraft builder's production line, as the National Transportation Safety Board on Wednesday scrutinized company safety and quality control programs during an investigation of the 737 Max 9 jet door plug blowout.
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August 07, 2024
Green Groups Say Export-Import Bank Is Harming Climate
Environmental and animal rights groups on Wednesday asked the U.S. Department of State to order the Export-Import Bank to stop helping fund projects they said are contributing to climate change.
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August 07, 2024
Lender Says Mogul's Privacy Concerns Stymying Trial Prep
Attorneys for a lending agent pursuing a $127 million judgment from an auto parts mogul asked a Michigan federal judge Tuesday to deny the mogul and his bankrupt company's attempts to keep key documents private, saying the inability to share relevant information with their clients is hindering their ability to prepare for trial.
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August 07, 2024
Parts Co. Fights Bid To Pause Pratt & Whitney Antitrust Suit
A parts supplier accusing RTX Corp. subsidiary Pratt & Whitney of using illegal agreements to monopolize the aftermarket supply of their turboprop engine components asked a Pennsylvania federal court to keep discovery moving while considering the possible dismissal of the $450 million lawsuit.
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August 07, 2024
Delta Faces Class Action For 'Disastrous' IT Outage Response
Four customers hit Delta Air Lines Inc. with a proposed class action, claiming its "disastrous" response to a massive IT outage last month left them and thousands of others stranded and forced to pay for other flights, accommodations, rental cars and meals, with the airline refusing or ignoring refund requests.
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August 07, 2024
GM, Allied Unit Dodge Sanctions In Security Guard Bias Suit
A Michigan federal judge declined to sanction General Motors and a private security company Wednesday over a discovery issue, ruling that Black visitors to a GM-owned group of skyscrapers filed "nearly incomprehensible" requests in their suit claiming they were harassed and unlawfully detained.
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August 07, 2024
FERC Defends Rejection Of Grid Operator's Project Cost Plan
The Federal Energy Regulatory Commission is asking the D.C. Circuit to deny two electricity cooperatives' petitions challenging its decision to reject a Southwest Power Pool plan to regionally allocate the costs of some transmission projects within the grid operator's 14-state footprint.
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August 07, 2024
GrubHub Must Face Restaurants' TM Infringement Suit
Grubhub Inc. must face a proposed class action brought against it in Illinois federal court for allegedly using restaurants' trademarks without permission and listing them on its food delivery app without their consent, even though most of the lead plaintiffs have not registered the marks at issue.
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August 07, 2024
5th Circ. Tosses Passengers' Suit Over Southwest TSA Fees
The Fifth Circuit has sided with Southwest Airlines Co. in a suit alleging it breached passengers' contracts by giving them travel credits instead of refunds for Transportation Security Administration security fees, finding the claims were correctly preempted by the Airline Deregulation Act.
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August 07, 2024
11th Circ. Says Drivers Can Use Contracting Law For OT Math
Three drivers for a company that provides medical transportation to veterans can base their calculation of overtime they're owed on a Service Contract Act prevailing rate that's higher than the wages they were paid, the Eleventh Circuit has ruled, partially flipping a lower court's ruling.
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August 07, 2024
Logistics Co. CEO Denies Role In NJ Racketeering Scheme
The chief executive officer of logistics firm NFI Industries on Wednesday denied that he played a role in an alleged scheme led by a New Jersey power broker accused of reaping millions in tax credits by using extortion to acquire waterfront property in the distressed city of Camden.
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August 06, 2024
3 Firms Guide AI-Focused Semiconductor Maker's SPAC Deal
Special-purpose acquisition company byNordic Acquisition Corp. said Tuesday it plans to acquire and take public an artificial intelligence-focused subsidiary of Sivers Semiconductors AB through a deal advised by three law firms.
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August 06, 2024
9th Circ. Won't Rehear Ex-Uber Driver's Race Bias Suit
The Ninth Circuit on Tuesday refused to grant en banc rehearing to a former Uber driver after a three-judge panel found he failed to support his allegations that the ride-hailing giant's rating system is racially biased.
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August 06, 2024
Microsoft's Dechert Attys Slam Delta On Outage Suit Threat
Microsoft's attorneys at Dechert LLP fired back Tuesday at Delta Air Lines' recent threat to pursue litigation to recoup hundreds of millions in losses from last month's global CrowdStrike outage, saying the airline repeatedly refused Microsoft's offer for technical assistance.
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August 06, 2024
Pilots Union Tells 5th Circ. Southwest Put Animus In Policy
Counsel for the Southwest Airlines Pilots Association told a Fifth Circuit panel Tuesday that the airline had codified anti-union animus in a written policy, claiming during oral arguments that the airline was working to keep elite "check pilots" from organizing.
Expert Analysis
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Using A Children's Book Approach In Firm Marketing Content
From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.
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Opinion
NEPA Final Rule Unlikely To Speed Clean Energy Projects
A recent final rule from the White House Council on Environmental Quality purports to streamline federal environmental reviews to accelerate the construction of renewable energy infrastructure — but it also expands consideration of climate change and environmental justice, creating vast new opportunities for litigation and delay, says Thomas Prevas at Saul Ewing.
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Diving Deep Into Sweeping NY Financing Bill — And Its Pitfalls
A New York bill seeking to impose state usury limits onto a broader variety of financing arrangements and apply lender licensing requirements to more diverse entities would present near-insurmountable compliance challenges for lenders and retailers, say Kate Fisher and Tom Quinn at Hudson Cook.
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Series
Being An EMT Makes Me A Better Lawyer
While some of my experiences as an emergency medical technician have been unusually painful and searing, the skills I’ve learned — such as triage, empathy and preparedness — are just as useful in my work as a restructuring lawyer, says Marshall Huebner at Davis Polk.
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Can Chatbot Interactions Lead To Enforceable Contracts?
The recent ruling in Moffatt v. Air Canada that found the airline liable for the representations of its chatbot underscores the question of whether generative artificial intelligence chatbots making and accepting offers can result in creation of binding agreements, say attorneys at McDermott.
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In Debate Over High Court Wording, 'Wetland' Remains Murky
Though the U.S. Supreme Court's decision limiting the Clean Water Act’s wetlands jurisdiction is now a year old, Sackett v. EPA's practical consequences for property owners are still evolving as federal agencies and private parties advance competing interpretations of the court's language and methods for distinguishing wetlands in lower courts, says Neal McAliley at Carlton Fields.
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Corporate Insurance Considerations For Trafficking Claims
With the surge in litigation over liability under the Trafficking Victims Protection Reauthorization Act, corporate risk managers and in-house counsel need to ensure that appropriate insurance coverage is in place to provide for defense and indemnity against this liability, says Micah Skidmore at Haynes Boone.
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Car Apps, Abuse Survivor Safety And The FCC: Key Questions
A recent request for comment from the Federal Communications Commission, concerning how to protect the privacy of domestic violence survivors who use connected car services, raises key questions, including whether the FCC has the legal authority to limit access to a vehicle's connected features to survivors only, say attorneys at Davis Wright.
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Insurer Quota-Sharing Lessons From $112M Bad Faith Verdict
In Indiana GRQ v. American Guarantee and Liability Insurance, an Indiana federal jury recently issued a landmark $112 million bad faith verdict, illustrating why insurers must understand the interplay between bad faith law and quota-sharing before entering into these relatively new arrangements, say Jason Reichlyn and Christopher Sakauye at Dykema.
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Insurance Types That May Help Cos. After Key Bridge Collapse
Following the collapse of the Francis Scott Key Bridge, businesses that depend on the bridge, the Port of Baltimore and related infrastructure for shipment and distribution of cargo should understand which common types of first-party insurance coverage may provide recoveries for financial losses, say Bert Wells and Richard Lewis at Reed Smith.
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Exploring An Alternative Model Of Litigation Finance
A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.
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Del. Dispatch: Chancery's Evolving Approach To Caremark
Though Caremark claims are historically the least likely corporate claims to lead to liability, such cases have been met in recent years with increased judicial receptivity — but the Delaware Court of Chancery still expressly discourages the reflexive filing of Caremark claims following corporate mishaps, say attorneys at Fried Frank.
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Bid Protest Spotlight: Unwitting Disclosure, Agency Deference
Roke Iko at MoFo examines two U.S. Court of Federal Claims decisions highlighting factors to consider before filing a protest alleging Procurement Integrity Act violations, and a decision from the U.S. Government Accountability Office about the capacity of an agency to interpret its own solicitation terms.
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Global Bribery Probes Are Complicating FCPA Compliance
The recent rise in collaboration between the U.S. Department of Justice and foreign authorities in bribery enforcement can not only affect companies' legal exposure as resolution approaches vary by country, but also the decision of when and whether to disclose Foreign Corrupt Practices Act violations to the DOJ, say Samantha Badlam and Catherine Conroy at Ropes & Gray.
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Airlines Must Prepare For State AG Investigations
A recent agreement between the U.S. Department of Transportation and 18 states and territories will allow attorneys general to investigate consumer complaints against commercial passenger airlines — so carriers must be ready for heightened scrutiny and possibly inconsistent enforcement, say attorneys at Morgan Lewis.