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Commercial Contracts
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April 22, 2024
Mich. Panel Drains $1.3M 1-800-Bathtub Arbitration Award
A Michigan appellate court affirmed slashing most of a $1.3 million arbitration award for the owner of the toll-free number 1-800-BATHTUB, pulling the plug on the owner's claim that a bathroom remodeling company stole the number.
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April 22, 2024
Chamber Planning Prompt Challenge Of FTC Noncompete Ban
U.S. Chamber of Commerce officials vowed Monday to immediately challenge an impending Federal Trade Commission rule that would ban essentially all noncompete agreements that employers impose on their workers, raising concerns focused principally on opening a "Pandora's box" of rulemaking they say is beyond FTC authority.
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April 22, 2024
Palo Alto Networks Execs Face Suit Over Misleading Outlook
Executives and directors of cybersecurity company Palo Alto Networks have been hit with a shareholder derivative suit in California federal court alleging they misled investors about the success of its platform consolidation strategy, which was expected to result in lucrative government contracts.
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April 22, 2024
Lessee Axed From NC Doctor's Quarrel With Ex-Partner
The North Carolina Business Court has purged a defendant from an ophthalmologist's lawsuit claiming his former partner has reneged on a settlement to buy out the ophthalmologist's half of the practice, finding the defendant wasn't a party to the settlement and can't now be bound to it.
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April 22, 2024
GM, Others Sued For Sharing Driver Data With Insurers
Two New Jersey drivers say they saw increases in their insurance premiums after General Motors and its OnStar unit allegedly used apps installed in their vehicles to illegally share driver data with consumer reporting agencies and insurance carriers without their consent.
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April 22, 2024
Calif. High Court Says Pretrial Inmates Can't Get Min. Wage
The California Supreme Court on Monday ruled that pretrial detainees who work while in jail are not entitled to minimum wage and overtime claims under California's labor law, finding the state's penal code permitting such work covers nonconvicted individuals.
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April 22, 2024
Ill. Panel Relieves Insurer Of $8.3M Cracker Caper Judgment
An insurer was relieved of covering a dispute between cracker manufacturers, an Illinois state appeals panel affirmed, finding allegations of equipment theft that led to an $8.3 million judgment against Distinctive Foods LLC constituted non-covered intentional interference with RyKrisp LLC.
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April 22, 2024
Thermo Fisher Says Rival Is Raiding Its Workforce
Thermo Fisher Scientific Inc. is seeking to block Repligen Corp. from hiring one of its top executives, according to a suit in Massachusetts state court accusing the rival of a "systematic raiding" of its workforce.
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April 22, 2024
High Court Denies US Soccer Petition In Antitrust Challenge
The U.S. Supreme Court denied a petition by the U.S. Soccer Federation asking it to dismiss for good a suit by a sports promoter accusing it of violating antitrust law by refusing to sanction international pro soccer games on American soil.
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April 22, 2024
Justices Won't Probe Athlete's Interest In NCAA Eligibility
The U.S. Supreme Court on Monday left in place a Fourth Circuit decision finding student athletes lack a business or property interest in their eligibility to play on the college level even though they can now be compensated for it.
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April 19, 2024
Jane Street Denied TRO In Trade Theft Suit Against Millennium
A New York federal judge on Friday refused Jane Street Group LLC's bid for an emergency order after the trading firm accused rival Millennium Management LLC and two former employees of stealing and misappropriating a confidential trading strategy.
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April 19, 2024
Kansas City Bank Sued Over Prepaid Cards For Ex-Detainees
A Kansas City, Missouri, bank faces a proposed class action accusing it of violating federal and state consumer protections laws in issuing prepaid debit cards to people who had their cash confiscated after being detained following an arrest, and then charging them fees to access their funds after their release.
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April 19, 2024
Judge Mulls Axing Biomedical Cos.' $25M Punitive Damages
Not enough evidence supports Skye Orthobiologics' $25.5 million punitive damages award against an ex-employee found to have breached his fiduciary duties by leveraging Skye's proprietary information, a California federal judge has ruled, asking for briefing on whether the proper remedy is to cut the damages or grant a new trial.
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April 19, 2024
Vegas Paper Wants Antitrust Suit Paused For Appeal
The Las Vegas Review-Journal asked a Nevada federal judge to pause the Las Vegas Sun's antitrust suit against it, pending an appeal to the Ninth Circuit over the core agreement between the papers that the Review-Journal says the judge wrongly cleared.
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April 19, 2024
Casino SPAC Can Return Money, Not Shares, Chancery Rules
Stockholders in a blank-check company that failed to merge with a Philippines-based casino are entitled to a distribution from $37.5 million sitting in trust, but the company may not redeem any shares until an investor's Delaware lawsuit plays out, a Chancery Court vice chancellor said Friday.
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April 19, 2024
Mich. Panel Backs GM's Win In Supplier Pricing Spat
A Michigan appellate panel has refused to reinstate a supplier's lawsuit claiming General Motors underpaid for five years' worth of deliveries, saying Semco Inc. didn't have the written evidence needed to hold GM to a promise to rectify the alleged shortfalls.
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April 19, 2024
Up Next At High Court: Abortions & Presidential Immunity
The U.S. Supreme Court will return Monday for the term's final week of oral arguments, during which it will consider several high-stakes disputes, including whether a federal healthcare law can preempt state abortion bans and whether former President Donald Trump is entitled to immunity from criminal charges related to official acts.
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April 19, 2024
Student Housing Co. Founder Claims She Was Pushed Out
A co-founder of a global company formed to provide booking for student housing sued her former colleague in Delaware's Court of Chancery on Friday, alleging a scheme by insiders to push her out of the business and then line up a sale to avoid a judgment after the move's reversal.
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April 19, 2024
Madonna Sued, This Time In D.C., Over Late Concert Start
Madonna is facing another proposed class action alleging the pop star kept fans waiting hours for her concert to begin, this time from show attendees in Washington, D.C., who claim that Madonna and Live Nation are "a consumer's worst nightmare."
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April 19, 2024
Candy Crush Developer Gets Sweet Win In Fraud Suit
A Virginia woman has been ordered to arbitrate her proposed class action accusing the Maltese developer of Candy Crush, the popular smartphone puzzle game, of fraudulently inducing her to drop more than $3,000 on a tournament by misrepresenting her chances of winning thousands of dollars and a trip to London.
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April 19, 2024
Fla. Solar Panel CEO Can Be Sued In Mich., Judge Says
A Michigan federal judge ruled Thursday that a Florida resident and former CEO of a solar panel company must face racketeering claims in Michigan alongside the company for allegedly scamming customers because he used to own property in the state and lived there during the alleged scheme.
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April 19, 2024
Del. Justices Revive Margolis Edelstein Malpractice Suit
Delaware's Supreme Court has reversed a lower-court decision that let Margolis Edelstein off the hook on claims that its incompetence caused GMG Insurance Agency to have to settle a case for $1.2 million, saying more consideration is needed to determine whether the firm was negligent.
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April 19, 2024
Lawyer Too Late To Collect Fees From Aretha Franklin Estate
Michigan appellate judges have upheld the denial of a bid for attorney fees for a lawyer who complained he was not properly paid for work he did for Aretha Franklin, with judges determining the claims were time-barred.
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April 19, 2024
Sills Cummis Aims To Sink Atty Depo In Rock Musician Suit
Sills Cummis & Gross PC fought back against a move to force the deposition of one of its partners in a malpractice suit this week, arguing the plaintiff, the former manager of musician Nile Rodgers, has "manufactured" the dispute by refusing to hold up his end of a deal to be deposed first.
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April 19, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen U.K. holiday resort chain Butlins target Aviva and a huddle of insurers, Meta and WhatsApp tackle a patents claim by telecommunications company Semitel, an ongoing construction dispute between Essex County Council and Balfour Beatty, and Formycon AG hit a pharmaceutical company for infringing medical products. Here, Law360 looks at these and other new claims in the U.K.
Expert Analysis
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Alleged $636M Deal Error Highlights Ethics Considerations
Adelman v. Proskauer, a malpractice suit that allegedly arose from a cut-and-paste error resulting in potential damages of $636 million, presents an intriguing juxtaposition of facts and legal issues — and practical ethical considerations for transactions attorneys, says Richard Leisner at Trenam Law.
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Calif. Law Tests Noncompete Prohibitions' Potential Reach
California’s newly enacted law, which voids employee restrictive covenants, whether signed in or out of the state, has the potential to upend typical agreement negotiations, and highlights ongoing questions concerning how California's worker protections fare in other jurisdictions, says Sarah Tishler at Beck Reed.
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What UCC Article 12 Adoption Means For Digital Assets
Until it is widely adopted, both owners of digital assets and their secured lenders will need to exercise caution in jurisdictions that have adopted Uniform Commercial Code Article 12, and care will need to be taken when creating, transferring and managing digital assets to comply with its requirements, say Margo Tank and David Whitaker at DLA Piper.
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5th Circ. Ruling Reminds Attys That CBP Can Search Devices
The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.
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Alleged $636M Deal Error Shows Value Of Old-School Methods
Though Proskauer Rose has now settled claims involving a copy-paste error in deal documents that could have resulted in $636 million in damages, the debacle reminds attorneys that classic revision methods using paper copies can help avoid drafting errors and actually save time in the long run, says Richard Leisner at Trenam.
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Tornado Cash Saga Presents Thorny Issues For Fintechs
A recent Texas federal court ruling and a U.S. Department of Justice indictment concerning the cryptocurrency mixer service Tornado Cash raise novel and important issues regarding smart contracts that could complicate the development and nature of decentralized crypto projects, as well as the future of fintech business models, say attorneys at Venable.
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4 Ways To Approach The Nuances Of AI Vendor Contracts
There is no immediate road map for negotiating contracts presented by artificial intelligence and machine learning vendors, but a phased approach can be used to direct a customer's diligence and to better assess whether additional contractual terms should be included in these agreements, say Reeya Thakrar and Ira Kalina at Faegre Drinker.
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CFPB, FTC Actions Show Consumer Terms Need Fresh Eyes
Providers of consumer financial products and services should take recent statements and actions from the Consumer Financial Protection Bureau and Federal Trade Commission as an invitation to review their consumer-facing disclosures to ensure that the terms are clear, easy to understand and prominently displayed, say Christina Grigorian and Eric Hail at Katten.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Tech M&A Due Diligence Checklist: Critical IP Areas Of Inquiry
Declining valuations are the backdrop of the current technology M&A landscape worldwide, and intellectual property is a key value driver from the vantage point of a potential acquiror, so when it comes to due diligence for technology acquisitions, there are several pitfalls to avoid, say attorneys at Gibson Dunn.
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Tossed FIFA Bribery Convictions May Spur New DOJ Offense
After a New York federal court vacated the bribery convictions of two defendants in the U.S. Department of Justice’s sprawling FIFA probe, prosecutors may continue to pursue foreign commercial corruption through other means, albeit with some limitations, say attorneys at Cleary.
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Series
Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Master Service Agreements Can Mitigate Manufacturing Risks
Terms and conditions of standard contracts between manufacturers and their suppliers may not cover the numerous geopolitical, legal and technical issues that can arise in the manufacturing process in 2023 — so a master service agreement covering everything from payment terms to dispute resolution can be an excellent alternative, says Bryan Rose at Stinson.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.