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December 6, 2013
United Healthcare Blocked From Booting 2,000+ Doctors
A Connecticut federal judge ruled that United Healthcare Group cannot terminate more than 2,000 Connecticut physicians who are participating providers in its Medicare Advantage plan, saying Thursday that doing so would cause irreparable harm to the affected doctors in violation of their contract.
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December 6, 2013
Convicted 'Kids For Cash' Player Says Ex-Partner Duped Him
An attorney convicted in Pennsylvania’s “kids for cash” kickback scandal sued a business associated with his former partner in building juvenile detention facilities in state court on Thursday, alleging that the partner swindled him out of his interest in the two facilities.
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December 6, 2013
Expedited Appeal Rejected In Inquirer Editor Firing Row
The Pennsylvania Superior Court said Friday it would not allow an expedited appeal of a decision reinstating Philadelphia Inquirer’s top editor after ruling that he’d been fired in violation of a governance agreement giving control over personnel moves to the owners of the paper’s parent company.
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December 6, 2013
Ex-NBA Player Wrongfully Dodged Goodwill Tour, Suit Says
Former professional basketball player Damon Jones was hit with a suit in Texas federal court Thursday by a marketing and events company that said the athlete backed out of a military goodwill tour to serve as a commentator during the NBA Finals.
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December 6, 2013
Pa. Court Upholds Pietragallo Win In Malpractice Suit
The Pennsylvania Superior Court agreed Thursday that the failure of a former client of Pietragallo Gordon Alfano Bosick & Raspanti LLP to read communications from his attorney before signing a faulty contract nullified his malpractice claims that resulted in a $525,000 jury verdict against the firm.
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December 6, 2013
3rd Circ. Rules Out Arbitration In $7.5B Nortel Cash Dispute
A Third Circuit panel on Friday declined to compel arbitration between Nortel Networks Corp. units and their creditors in a battle over the defunct Canadian telecom company’s $7.5 billion in liquidation proceeds, ruling the contract at the heart of the dispute did not require arbitration.
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December 6, 2013
Texas Supreme Court Won't Revive $780M Suit Against AT&T
The Texas Supreme Court on Friday shot down a German private equity firm’s effort to revive litigation over a $780 million fee the firm said it was owed for work on AT&T Inc.’s failed bid to buy T-Mobile USA Inc.
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December 6, 2013
Apple Fights 'Breathtaking' Fee Bid In $53M Warranty Deal
Apple Inc. on Wednesday blasted a request for nearly $16 million in fees by attorneys who guided a class of 4,000 consumers to a pending $53 million California court settlement over a warranty coverage dispute on Wednesday, saying the amount significantly outweighs the level of work performed.
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December 5, 2013
Samsung Defective Phone Class Action Won't Go To Arbitration
A Texas federal court on Thursday refused to send a putative class action alleging Samsung didn’t make customers whole on faulty Galaxy S phones into arbitration, finding that clauses in the customers’ wireless carrier contracts did not include the phones’ maker.
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December 5, 2013
Volkswagen Dodges Suit Over Faulty Jetta Locks
A Florida federal judge on Thursday tossed a married couples’ putative class action against Volkswagen Group of America Inc. alleging locks on their Jetta sedan were defective, ruling they were time-barred from bringing express warranty and deceptive practices claims.
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December 5, 2013
Humana Wants Shipping Co. Sanctioned Over RICO Claims
Humana Inc. filed a motion for sanctions against Transatlantic LLC in Florida federal court on Tuesday in a case initially brought against the health insurer for $1 million over breach of contract claims, saying the shipping company amended its complaint with a slew of unsupported racketeering claims seeking $45 million.
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December 5, 2013
Equipment Co. Davis-Standard Sues Ex-VP Over Trade Secrets
Davis-Standard LLC sued an ex-vice president and a rival liquid coating equipment maker, SAM North America LLC, in Connecticut federal court Tuesday, saying the former executive had breached a noncompete agreement and violated trade secrets by joining SAM last month.
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December 5, 2013
NJ Title Co. Hit With Class Action Over Closing Fees
A New Jersey title company was hit with a putative class action suit in state Superior Court last month, alleging the firm and its owner charged real estate buyers excessive fees during the closing process.
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December 5, 2013
Liberty Says It Owes No Coverage Over Resort Fallout
Liberty Insurance Underwriters Inc. filed suit in New York federal court Tuesday claiming it is not responsible to provide coverage for claims brought against Wiss & Co. LLP and some of its current and former employees who were involved in financing a failed luxury resort in Costa Rica.
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December 5, 2013
Medical Product Co. Liable For ACA Tax, Judge Says
A Georgia federal judge ruled Wednesday that a medical product company cannot pass the cost of the Affordable Care Act’s medical device tax on to a distributor that purchases its products under contract, saying a fair interpretation of the ACA indicates that the tax falls on manufacturers.
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December 5, 2013
Cheniere Lands 1st LNG Buyer From Texas Export Terminal
Cheniere Energy Inc. said Wednesday that a subsidiary has inked a two-decade deal to sell 800,000 tons of liquefied natural gas per year to Indonesia’s state-owned PT Pertamina, its first customer for an LNG export terminal being developed in Texas.
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December 5, 2013
NLRB Says Realty Co.'s Employee Class Waiver Is Unlawful
A National Labor Relations Board administrative law judge found Wednesday that a California-based realty company’s mandatory employment documents for new and existing employees, which included an arbitration agreement containing a class waiver, violated federal labor law under D.R. Horton.
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December 5, 2013
Dorsey & Whitney Bashes $595M Ghana Project Sanctions Bid
A Republic of Ghana official and the law firm Dorsey & Whitney LLP fired back at a project developer’s claims that forged emails were submitted in litigation to debunk a lawsuit over a $595 million sewer project contract, calling the fraud accusation “completely baseless” in a Washington, D.C., federal court filing Wednesday.
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December 5, 2013
Liberty Targets NJ Contractor For Medical Building Damage
Liberty Mutual Insurance Co. filed a lawsuit Monday on behalf of Turner Construction Co. against a plumbing company that the insurer blames for water damage at a New Jersey medical office building that led to costly repairs and will likely cause substantial business interruption losses.
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December 5, 2013
Engineering Firm Must Face Suit Over Waste Facility Design
A Texas appeals court said Thursday that an industrial engineering firm must face a general contractor's suit over allegedly flawed designs for a hazardous waste facility expansion, saying trial courts have broad discretion to extend the deadline for filing a required expert affidavit in such cases.
Expert Analysis
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Buyer-Financed Development Is The New Normal
Condominium developers are turning to the buyer-financed model to fund the pre-construction and construction phases of their projects. But a recent Florida Supreme Court ruling complicates things for realtors and lawyers who do not identify and inform their buyers of the risks of this development model, says Andrew Hall of Hall Lamb and Hall PA.
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A Growing Consensus In Favor Of Labor Arbitration
Every appellate court to consider the issue has now rejected the National Labor Relations Board’s anti-arbitration position in D.R. Horton as out of step with the Federal Arbitration Act and the U.S. Supreme Court’s decision interpreting the statute in AT&T Mobility LLC v. Concepcion. And that growing consensus is a positive development for employers and employees alike, say Archis Parasharami and Scott Noveck of Mayer Brown LLP.
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A How-To For Landowners Considering Oil & Gas Leases
Before a landowner grants an oil & gas lease to a lessee, he should carefully consider some key provisions to protect himself and to maximize economic benefit. For example, always make sure the provisions do not permit the primary term of the lease to extend beyond the stated period absent production, drilling or other operations, say attorneys at Greenberg Traurig LLP.
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What The High Court May Not Address In Frequent Flier Case
Northwest v. Ginsberg gives the U.S. Supreme Court the opportunity to affirm that frequent flier programs are "services" covered by the Airline Deregulation Act. However, the high court’s recent oral argument suggests that its decision may not end up addressing this important issue, says Roy Goldberg of Sheppard Mullin Richter & Hampton LLP.
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Proposed Pa. Franchise Law Would Tip The Balance Too Far
Pennsylvania’s House Bill 1620 may be the result of public perception that franchisees are powerless and need protecting. But for franchisors that have long fought to remove the concept of fiduciary duty from commercial contractual relationships, this legislation would appear to undo much of the common law that has developed over the last 20 years, says Theodore Pearce of Nexsen Pruet LLC.
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FERC's Rockies Express Order Opens New Doors
A recent Federal Energy Regulatory Commission order will permit Rockies Express Pipeline to enter into transactions to transport shale gas east to west within its easternmost zone without triggering a rate reduction for its foundation and anchor shippers. Rockies Express’ ability to enter into such transactions will provide a new source of gas supply for Midwestern markets and an attractive outlet for Marcellus and Utica production, say attorneys with Van Ness Feldman LLP.
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And Now A Word From The Panel: Too Hot Or Cold For An MDL?
What is the thinking as to whether leaky air conditioner cases warrant multidistrict litigation treatment? On Dec. 5, the Judicial Panel on Multidistrict Litigation heads to Vegas to find out. This will bring a temperature shift in more ways than one from the September hearing, where the panel considered a potential MDL proceeding arising from allegedly defective clothes dryers, says Alan Rothman of Kaye Scholer LLP.
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A Look At Europe's New Music Copyright Law
The term of copyright in sound recordings and performers' rights has been extended in Europe from 50 to 70 years for sound recordings that were first released on or after Jan. 1, 1963. It seems likely that the new law will have at least some commercial impact once the interplay between a number of provisions meant to benefit performers have been subject to careful analysis, say Sarah Byrt and Daniel Gallagher of Mayer Brown LLP.
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A Key Case For Contract Manufacturing Arrangements
The U.S. Tax Court decision in Advo Inc. & Subsidiaries v. Commissioner raises the bar for taxpayers who seek to claim Section 199 deductions for costs incurred in contract manufacturing arrangements, say attorneys with Skadden Arps Slate Meagher & Flom LLP.
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The Danger Of Commingling Fees Under Talent Agencies Act
The stars of the reality show "Dog the Bounty Hunter" recently succeeded in convincing the California labor commissioner to side with them in a dispute against their former manager/producer. The case provides a valuable lesson for managers who have side agreements with others in connection with their clients’ projects, says David Mark of Buchalter Nemer PLC.