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Commercial Contracts
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May 22, 2024
LA Investor Sues Greenberg Glusker Over 'Appalling' Filings
A Los Angeles investor has filed a suit against Greenberg Glusker and two of its partners for allegedly bungling his defense in an underlying suit brought by his stepson, accusing the firm of sharing a draft complaint prior to filing and including inaccuracies and unnecessary personal attacks in another filing, while also pressuring him to accept a bad settlement.
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May 21, 2024
BNSF Judge Said Trespass Payout Will Be Distance-Based
BNSF Railway Co. will have to give up profits from at least part of its 1,500-mile oil shipment route to compensate a Washington tribe for nearly a decade of train trespassings across a less-than-mile-long easement, a federal judge ruled Monday.
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May 21, 2024
Texas Panel Says Mallory Ruling Has No Home There
A Texas appellate court has upheld a ruling preventing a Dallas car repair services company from litigating a trade secrets case there against a Michigan rival over allegedly hiring away a former executive, holding that the U.S. Supreme Court's Mallory decision last year doesn't do much in Texas.
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May 21, 2024
Pacific Seafood Beats Crab Price-Fixing Claims, For Now
A California federal magistrate judge on Tuesday dismissed a proposed class action claiming Pacific Seafood fixed the price paid to fishers for Dungeness crab in the Pacific Northwest but will allow the fisherman who filed the suit the opportunity to amend most of his claims.
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May 21, 2024
Bungie's Code Copying Claims Questioned At Seattle Trial
A top product security engineer at Bungie told a Seattle federal jury on Tuesday that a hacker accused of exploiting a popular game to make cheat software likely never had access to the game's source code and acknowledged the game company hasn't seen the cheat code that it claims amounts to copyright infringement.
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May 21, 2024
Realtors Want Rethink After DOJ Antitrust Probe Allowed
The National Association of Realtors has asked the D.C. Circuit for a rehearing after the appeals court found the U.S. Department of Justice can reopen an antitrust investigation into the trade group despite an earlier agency settlement over the association's rules.
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May 21, 2024
Calif. Justices Doubt App-Based Drivers' Prop 22 Challenge
Several California Supreme Court justices pushed back Tuesday against arguments by ride-hailing drivers that the Proposition 22 ballot measure carving out certain app-based workers from a worker classification law unconstitutionally runs afoul of the Legislature's authority, with one justice saying their position could "freeze out" voter-approved initiatives.
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May 21, 2024
Toll Bros. Lobs Legal Malpractice Claims At Gordon Rees
Luxury home builder Toll Bros. Inc. has filed legal malpractice and breach of contract claims against Gordon Rees Scully Mansukhani LLP, claiming that the California-based firm didn't comply with discovery obligations, among other failures while representing Toll Bros. in a dispute over a project in Washington state.
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May 21, 2024
Medical Marijuana Co. Owes Investor Duo $200K, Suit Says
A pair of would-be investors in a purported medical marijuana company have sued the enterprise and two of its representatives, claiming repayment of their $200,000 investment was over five months overdue.
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May 21, 2024
DC Circ. Says Drugmakers Can Limit Pharmacy Discounts
The D.C. Circuit held Tuesday that a federal drug discount program does not bar manufacturers from restricting deliveries of discounted drugs to contract pharmacies, rejecting the U.S. Department of Health and Human Services' expansive interpretation of the 340B drug pricing program.
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May 21, 2024
LoanDepot's $3.5M Deal In IPO Disclosure Suit Gets Final OK
A California federal judge has granted final approval to LoanDepot's $3.5 million settlement in a suit alleging it misled investors leading up to the company's initial public offering, despite a shareholder's objection that the settlement is insufficient.
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May 21, 2024
Eye Drops Must Sell On Even Terms Under Rare Antitrust Win
A California federal judge cemented a rare win under a little-used antitrust law, following up on a December jury verdict against an eye drops company with a decision barring it from offering Costco better terms than the retail wholesaler plaintiffs.
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May 21, 2024
Conn. Bank Hit With Suit Over 'Crippling' Overdraft Fees
Connecticut-based Ion Bank is the latest financial institution to face a putative class action alleging it violated its agreements with customers by imposing overdraft fees on certain transactions.
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May 21, 2024
X Corp., Hate Speech Watchdog Settle Atty Fees Bid
A California federal judge Tuesday signed off on an agreement that X Corp. and the Center for Countering Digital Hate reached to resolve the nonprofit organization's bid for $300,000 in attorney fees following a successful defense against the Elon Musk-led social media platform's claims that the center used improper tactics to write one of its articles.
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May 21, 2024
Texas Court Questions Luxottica On 'Playing Favorites' In Sale
A Texas appellate court on Tuesday asked whether an eyewear conglomerate was "playing favorites by not disclosing" alleged fraud by its franchisees in a sale of two stores to other franchisees, questioning Luxottica's assertion it had to keep its hands off the transaction.
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May 21, 2024
MLB Scouts' Colo. Age Bias Suit Moved To New York
A Colorado federal judge refused to dismiss an age bias suit brought against Major League Baseball by a group of 40-and-older scouts and instead transferred the case to New York, saying he was using his discretionary authority because most defendants have no ties to his district.
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May 21, 2024
Ex-Crypto Co. President Was Deceived And Ousted, Suit Says
A cryptocurrency entrepreneur has filed a suit in Delaware's Court of Chancery accusing a CEO of making fraudulent misrepresentations to recruit him to serve as president of his blockchain company, then unjustifiably firing him.
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May 21, 2024
FSU Asks NC Justices To Favor Fla. Suit In ACC Fee Fight
The Florida State University board of trustees has asked North Carolina justices to do what the Tar Heel state's Business Court did not and halt the Atlantic Coast Conference's lawsuit over media rights contracts in favor of letting parallel litigation in Florida play out.
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May 21, 2024
AT&T Unit Asks High Court To Take Up E-Rate FCA Dispute
The U.S. Supreme Court needs to step in and decide a circuit split over whether FCC reimbursements under the E-rate program count as "claims" under the False Claims Act, said an AT&T subsidiary, urging the justices to ignore a relator who it said is trying to "muddy that clear conflict."
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May 21, 2024
FTC Chair Khan Says Corporate Concentration Creates Fear
Federal Trade Commission Chair Lina Khan said Tuesday that corporate concentration creates fear for many Americans, including small businesses that rely on digital gatekeepers like Google and Amazon.
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May 21, 2024
Colo. Hotel Denies Directly Hiring H-2B Workers In Wage Suit
A Colorado luxury hotel told a federal judge that it doesn't belong in a proposed class action accusing it and its cleaning contractor of unlawfully deducting Mexican housekeeping workers' wages, saying the contractor is the workers' sole employer.
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May 21, 2024
Ex-LA DA Sues State Farm Over Gun Incident Legal Fees
Former Los Angeles County District Attorney Jackie Lacey sued her insurer in California state court Tuesday, alleging State Farm cost her more than $2.1 million by failing to cover legal fees when she and her late husband were sued because he brandished a gun against protesters at their home.
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May 21, 2024
Split Fed. Circ. Revives IP Suit Against Nokia Over Standing
A split Federal Circuit on Tuesday threw out a lower court decision that found an inventor's company didn't have standing to sue Nokia, Cisco and ADVA over a fiber optic patent, saying it was unclear if the company had the rights to the patent.
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May 21, 2024
Houston Club Asks Court To Halt Storm Damage Demolition
A Houston nightclub damaged in last week's severe storm told a Harris County court Monday that city officials improperly declared that the building should be demolished.
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May 21, 2024
Attys Accused Of Botching NC Suit By Missing Filing Deadline
The parents of two children who died in a car fire are suing their former attorneys in North Carolina federal court for malpractice, alleging they dropped the ball on filing the pair's wrongful death claims against a seat belt manufacturer before the deadline passed.
Expert Analysis
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Expect An Increase In Robinson-Patman Act Enforcement
Recent actions by the Federal Trade Commission and prominent lawmakers should be viewed as a harbinger of renewed scrutiny of price discrimination in all industries and a sign that Robinson-Patman Act investigations and enforcement actions are likely to see an uptick, say attorneys at Morgan Lewis.
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Opinion
The FTC's Noncompete Rule Is Likely Dead On Arrival
The Federal Trade Commission's April 23 noncompete ban ignores the consequences to the employees it claims to help — but the rule is unlikely to go into effect provided the ideological makeup of the U.S. Supreme Court remains the same, say Erik Weibust and Stuart Gerson at Epstein Becker.
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Class Actions At The Circuit Courts: April Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses three notable circuit court decisions on topics from the Class Action Fairness Act to consumer fraud — and provides key takeaways for counsel on issues including CAFA’s local controversy exception and Article III standing to seek injunctive relief.
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9th Circ. Arbitration Ruling Could Have Int'l Implications
In Patrick v. Running Warehouse, the Ninth Circuit's recent matter-of-fact invocation of an unusual California rule in a domestic arbitration context raises choice of law questions, and could make California law a strategic option for some international arbitration parties, says Jerry Roth at FedArb.
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Series
Being An Equestrian Makes Me A Better Lawyer
Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.
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FTC Noncompete Ban Signals Rising Labor Focus In Antitrust
The Federal Trade Commission’s approval this week of a prohibition on noncompete agreements continues antitrust enforcers’ increasing focus on labor, meaning companies must keep employee issues top of mind both in the ordinary course of business and when pursuing transactions, say attorneys at Skadden.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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What 3rd Circ. Trust Ruling Means For Securitization Market
Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.
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Clemson's ACC Exit Fee Suit May Have Major Consequences
Clemson University's recent suit in South Carolina state court against the Atlantic Coast Conference, which challenges the ACC's $140 million exit fee and its ownership of member schools' media rights, would likely have enormous ramifications for ACC members in the event of a definitive court ruling, say William Sullivan and Alex Anderson at Pillsbury.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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A Key Pitfall Of Restricted Subsidiaries In Loan Agreements
In loan agreements, the treatment afforded to non-loan party restricted subsidiaries' EBITDA presents subtle, but serious threats to lenders that require thoughtful attention in underwriting and drafting, say David Ebroon at JPMorgan Chase and Jared Zajac at Cadwalader.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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New Proposal Signals Sharper Enforcement Focus At CFIUS
Last week's proposed rule aimed at broadening the Committee on Foreign Investment in the United States' enforcement authority over foreign investments and increasing penalties for violations signals that CFIUS intends to continue expanding its aggressive monitoring of national security issues, say attorneys at Kirkland.