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Commercial Contracts
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May 17, 2013
Affiliation Dispute Threatens $2B St. Luke's Acquisition
A high-value affiliate of Houston-based St. Luke's Episcopal Hospital on Thursday asked a Texas court to nullify its collaboration agreement with the hospital, creating a possible hurdle to Catholic Health Initiatives' planned $2 billion deal to acquire the system.
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May 17, 2013
ING Gave Morgan Stanley Kickbacks For 401(k) Biz, Suit Says
An Alabama medical laboratory filed a proposed class action in New York federal court on Friday alleging Morgan Stanley & Co. Inc. encouraged the lab to use ING Life Insurance and Annuity Co. to administer its employees' 401(k) plan because ING paid the brokerage firm extra fees.
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May 17, 2013
Falcone, Execs Wrongly Forced Out Casino Co. CEO, Suit Says
Hedge funder Philip Falcone and two other executives involved in a Vietnam resort developer were hit by a lawsuit Thursday in New York state court over claims they forced out the development company's CEO through a wrongful administrative leave.
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May 16, 2013
Cavalli Says Tory Burch Remodel Is Hurting Beverly Hills Biz
Italian fashion designer Roberto Cavalli on Wednesday accused his landlord of unfairly cutting into business at his Beverly Hills boutique after allowing a neighboring tenant, fellow clothier Tory Burch LLC, to launch a full-scale renovation that has driven away Cavalli's customers.
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May 15, 2013
NJ Atty Sues Newbies Over Breach Of Training Pact
A New Jersey attorney is suing two alleged former proteges for more than $200,000, claiming they learned about immigration law and her business as part of a consulting and training agreement but failed to live up to their financial obligations under the pact.
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May 15, 2013
Bergstein Says Aramid Schemed With Friend To Extort Millions
California film investor David Bergstein on Tuesday hit Aramid Entertainment Fund Ltd. with a suit accusing executive David Molner of scheming with a troubled New Jersey businessman to extort millions from Bergstein and shift blame for $60 million stolen and misappropriated from Aramid to the investor.
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May 14, 2013
Realty Co. Demands $16M In Fees From Midtown Lease Deal
A New York City realty group claimed on Tuesday that it is owed more than $16 million in commission fees after being shouldered out of a lease transaction at a Midtown South office building in violation of a 25-year-old brokerage agreement.
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May 14, 2013
Architecture Firm Must Leave Sculpture Behind, Landlord Says
Architecture firm HKS Inc.'s current landlord sued the company Thursday in Texas state court to block it from taking a giant courtyard sculpture to its planned new digs when it moves out after 15 years at its current location.
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May 14, 2013
Dell Accuses Toshiba, Sony Of Fixing Prices For Disk Drives
Dell Inc. on Monday struck Toshiba Corp., Sony Corp., Samsung Electronics Co. Ltd. and other major electronics companies with an antitrust lawsuit in Texas federal court, accusing them of engaging in a wide-ranging conspiracy to fix prices in the market for optical disk drives.
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May 14, 2013
Dick Wolf's Ex Wants $5M From Troubled Accounting Firm
The former wife of "Law & Order" creator Dick Wolf launched a $5 million suit in New York on Friday claiming that a management firm recently forced to cough up $51 million to writer Patricia Cornwell also overbilled her and disastrously fumbled the arrangement of a lease.
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May 14, 2013
Exec Says 'Tyrant' Forced Him Out Of Jennifer Lopez's Co.
A former executive at Jennifer Lopez's Nuyorican Productions Inc. filed a breach of contract suit in California state court Monday alleging a Hollywood veteran “with a long history as a 'tyrant'” forced him out of the production company.
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May 14, 2013
Reader's Digest Says Ex-Workers Misused Business Info
The Reader's Digest Association Inc. on Monday launched a suit in New York bankruptcy court, alleging that three former employees have unfairly diverted business from the bankrupt media company and improperly exercised control over its estate assets, including proprietary business information.
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May 13, 2013
CVS, Cardinal Health Returned Opened Drugs, Savient Says
Savient Pharmaceuticals Inc. has hit CVS Caremark Corp. and Cardinal Health Inc. with a nearly $1.4 million breach of contract lawsuit in New Jersey over CVS' alleged attempts to return hundreds of opened or partial bottles of the specialty biopharmaceutical company's drugs through Cardinal for credit.
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May 13, 2013
Ex-Gersten Savage Bankruptcy Atty Sues Over Unpaid Wages
A former Gersten Savage LLP bankruptcy partner sued the defunct law firm and its founder Jay M. Kaplowitz in New York state court Friday alleging they owe him about $360,000 in unpaid wages and damages.
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May 10, 2013
Ex-Salomon Head Sues Citigroup Over Secretary's $3M Theft
The former managing partner of Salomon Brothers launched a suit in New York state court Thursday alleging Citigroup Inc. is liable for over $3 million that was stolen from him by his now-convicted former secretary, who was a Citigroup employee.
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May 10, 2013
Ex-CEO Raided Entertainment Co.'s Assets, RICO Suit Says
Entertainment company ValCom Inc. launched suit in New Jersey federal court Friday accusing its ousted former president and CEO Vince Vellardita and other top brass of defrauding ValCom out of millions of shares in violation of the Racketeering Influenced Corrupt Organizations Act.
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May 10, 2013
'Scrubs' Actor Stiffed UTA On TV Commissions, Suit Says
Hollywood heavyweight United Talent Agency on Thursday slapped "Scrubs" actor Donald Faison with a breach of contract lawsuit alleging he failed to pay the agency a 10 percent commission on paydays earned from several television show episodes.
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May 9, 2013
NBA Illegally Scuttled Merchandise Deal, Calif. Lawyer Says
A California businessman and entertainment lawyer sued the National Basketball Association on Wednesday for allegedly derailing a planned series of product tie-ins related to biographical videos of retired athletes, saying it falsely represented that his use of player likenesses was unauthorized.
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May 8, 2013
Michael Jackson's Ex-Publicist Hits Firm With $300M Suit
Michael Jackson's former publicist on Friday filed a $300 million malpractice suit against a Florida-based law firm alleging blunders in an underlying lawsuit against the pop star cost her a share of the profits from the merchandise released after Jackson's death.
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May 8, 2013
Ex-Waterford VP Fired To Avoid Incentive Payout, Suit Claims
A former vice president for Waterford Crystal's U.S. operations has sued the company and its private equity owner in New Jersey state court, alleging he was wrongfully fired because the company didn't want to pay an incentive fee it promised at his hiring.
Expert Analysis
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Rise Of The Machines — Predictive Coding Goes Mainstream
The pros of using predictive coding far outweigh the cons. Given the heavy pressure on law firms and in-house counsel to reduce discovery costs, as well as the Justice Department's recent stance on the subject, it appears predictive coding will continue to emerge from the obscure world of legal technology to the mainstream of legal practice, say Michael Moscato and Myles Bartley of Curtis Mallet-Prevost Colt & Mosle LLP.
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The Oil And Gas Operator's Texas Advantage
The interpretation by the Supreme Court of Texas in Reeder v. Wood County Energy LLC grants vast protection to oil and gas operators, but by doing so, it is perceived by some as muddling the differences between tort and contract law, says Michael Bolton and Kate Kalanick of Faegre Baker Daniels LLP.
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Not Subject To Ill. Court Jurisdiction? Think Again
The Illinois Supreme Court's ruling in Russell v. SNFA is troubling to part manufacturers as it suggests that an Illinois court can now find a part supplier bound to the marketing and distribution systems of its clients, regardless of where the end product is marketed, and find personal jurisdiction over the supplier, say attorneys with Locke Lord LLP.
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SEC Eyes Advisory Contract Approval Disclosures
A recent settlement with the U.S. Securities and Exchange Commission by mutual fund directors and service providers answers a number of questions for many in the mutual fund industry and provides insight into SEC enforcement priorities, say attorneys with Morgan Lewis & Bockius LLP.
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4 Takeaways From 2nd Highest FCPA Penalty
A New York federal court recently entered a final judgment against a former Siemens AG executive for his alleged role in a purported $100 million bribery scheme for Siemens to obtain a $1 billion contract from Argentina. Third-party sham contracts continue to be a prevalent theme in the alleged facts contained in corruption enforcement filings and resolutions, say attorneys with Fulbright & Jaworski LLP.
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SEC Must Stop The Latest Effort To Impede Whistleblowers
Increasingly, employees have been presented with language in severance and settlement agreements that impose on whistleblowers a number of restrictions. These provisions pose a serious threat to the success of the U.S. Securities and Exchange Commission's whistleblower program, say David Marshall and Debra Katz of Katz Marshall & Banks LLP.
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The Who, What And Why Of Public-Private Partnerships
Public-private partnerships have been used in a wide range of sectors to provide public services, from power plants and railroads to hospitals and sanitation plants. Yet there are a variety of potential contractual arrangements and the financing of a PPP can be complex, say Maryam Khosharay and Herbert Glaser of Haynes and Boone LLP.
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Independent Contractors Strike Out — Lessons For Employers
A lesser-known risk among companies that use independent contractor models is the threat of Title VII litigation, which two recent appellate court decisions, Allen v. Radio One and Alam v. Miller Brewing Company, addressed. These cases remind employers of the ways to minimize such litigation risks, such as adopting a policy to not rehire former employees terminated for misconduct, says Douglas Darch of Baker & McKenzie.
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Renovated: Fla. Rules On Design Professional Liability
A new Florida law will effectively permit business entities providing professional services to limit by contract the liability of their individual employees or agents. Attorneys with design professional clients — including architects, interior designers, landscape architects, engineers, surveyors and geologists — should expect requests for limitation of liability provisions in such contracts beginning July 1, 2013, say Keith Ramsey and Monte Starr of Holland & Knight LLP.
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Nuts And Bolts Of Negotiating Forbearance Agreements
Excerpt from Lexis Practice Advisor
When faced with default under a loan agreement, a company may request that the lender forbear for a limited period of time from taking legal actions in order to allow the company time to resolve its financial problems. In such a scenario, parties should consider a number of items in determining whether a forbearance agreement is appropriate, say George South and Daniel Egan of DLA Piper LLP.