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Commercial Contracts
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August 14, 2024
NC Court Defers Ruling To Unseal Cadwalader Coverage Suit
The North Carolina Business Court on Monday did not outright reject a bid by a Lloyd's of London syndicate looking to unseal a complaint by Cadwalader Wickersham & Taft LLP seeking coverage for a November 2022 data breach, though the judge did admonish the syndicate for failing to consult with Cadwalader's counsel before filing the motion.
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August 14, 2024
Judge DQs Ex-Overstock CEO's Atty For Discovery Violations
A Washington, D.C., federal judge has granted Dominion Voting Systems' "extraordinary and rarely granted" disqualification bid over serious discovery violations by a lawyer defending Overstock.com CEO Patrick Byrne in a defamation lawsuit brought by the voting machine company.
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August 14, 2024
Chancery Says Unisys Must Advance Ex-Workers' Legal Fees
Pennsylvania information technology company Unisys Corp. must front the legal fees and expenses for two executives it hired away from French competitor Atos SE and then sued for trade secret infringement after they went back to Atos two years later, Delaware's Court of Chancery has ruled.
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August 14, 2024
Winston & Strawn Adds McDermott Transaction Pros In Texas
Winston & Strawn LLP has expanded its offerings in Texas with the addition of two transactional attorneys as partners in its Houston office, the firm said in a Wednesday statement.
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August 13, 2024
Ex-GM Worker Gets 2 Years For Seeking Bribe In $100M Deal
A former General Motors Co. commodity manager was sentenced to two years behind bars Tuesday for soliciting a $5 million cash bribe from an auto parts supplier in return for ensuring it secured a $100 million contract, the U.S. Department of Justice said.
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August 13, 2024
Texas Court Affirms Sole Arbitrator In Oilfield Machinery Fight
A Texas appeals court affirmed on Tuesday that arbitration over more than $1 million owed on an invoice for oilfield machinery should be heard by a sole arbitrator, ruling that a subsequent agreement between a Mexican drill rig manufacturer and a Houston company trumped the wording in their initial contract.
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August 13, 2024
TMX Affiliate Sues Pa. Regulator To Block Potential $52M Fine
A Texas and Georgia-based affiliate of consumer lending company TMX Finance has sued the secretary of the Pennsylvania Department of Banking and Securities, challenging an order from the department that the company says seeks over $52 million in civil penalties over claims tied to loan agreements that allegedly carry interest rates as high as 720%.
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August 13, 2024
Jury Awards $51M To Family In Carbon Monoxide Leak
A Texas jury awarded a woman and her two children $51 million after they suffered from carbon monoxide poisoning in their apartment in 2015, finding in a Tuesday verdict that their apartment complex was responsible for the leak that allegedly left the children with serious brain injuries.
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August 13, 2024
FDIC Looks To Dodge Suit Over First Republic Bank's Rent
The Federal Deposit Insurance Corp. urged a California federal court to toss a suit filed by a California landlord that once leased to First Republic Bank, arguing that federal law bars the suit because the FDIC is the bank's receiver.
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August 13, 2024
Anadarko Settles Wyo. Landowners' Antitrust Case For $12M
Occidental Petroleum Corp. unit Anadarko Petroleum Corp. will pay $12 million to resolve a federal class action from Wyoming landowners accusing the extraction company of anticompetitively hoarding permits to block and control local oil and gas development, resolving the suit Monday — very nearly on the courthouse steps.
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August 13, 2024
Full 7th Circ. Asked To Review Tossing Of Protein Pouch Fight
A Florida-based protein powder maker is asking the Seventh Circuit to reconsider its upholding of a Wisconsin federal court's decision to toss its claims over allegedly defective plastic zipper pouches on the grounds that they were filed too late.
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August 13, 2024
Wisconsin Bell Tells Justices FCA Doesn't Apply To E-Rate
AT&T subsidiary Wisconsin Bell Inc. told the U.S. Supreme Court on Tuesday that applying the False Claims Act to fraudulent E-rate program reimbursements means turning the "heavy artillery of the administrative state" onto private transactions.
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August 13, 2024
Parts Maker Can't Escape Goya Death Suit
A machine manufacturer must face claims that a negligent inspection at a Texas-based Goya food distribution center led to a forklift operator burning to death after crashing into a pipe carrying hot beans, a federal judge has ruled, saying a jury could still find the company liable for failing to warn of the low hanging pipe.
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August 13, 2024
Panama Seeks Pause In Construction Co.'s $4.8M Award Suit
Panama has asked a Florida federal court to stay discovery as it faces a Miami businessman's countersuit claiming a previous settlement bars the enforcement of a $4.8 million arbitral award against him and his construction firm, arguing that a separate arbitration will resolve outstanding issues.
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August 13, 2024
3rd Circ. Nixes Debt Collection Suit, Leaves Award In Question
The Third Circuit ruled Tuesday that a plaintiff fighting an arbitration loss in a proposed debt-collection class action never had standing to sue, but the appellate panel left it for an arbiter or state court to decide whether to erase the actual award in favor of the debt collector.
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August 13, 2024
3D Printing Co. Investor Wants Merger With Israeli Co. Blocked
An investor of 3D printing solutions company Desktop Metal Inc. is attempting to stop the company's proposed merger with Israeli manufacturing firm Nano Dimension Ltd., saying Desktop Metal's deficient proxy statement shows only benefits for the company's executives and directors.
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August 13, 2024
HP Inks Deal To End Claims Printer Update Locked Out Rivals
HP Inc. and a certified class of consumers told a California magistrate judge Monday that they have reached a settlement in principle to resolve a class action alleging the printer maker illegally forced customers to purchase overpriced HP-branded ink and toner supply cartridges by making alternative products incompatible with their printers.
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August 13, 2024
Tort Report: Disney Blasted For 'Absurd' Arbitration Bid
A Disney unit's unconventional bid to arbitrate a wrongful death suit and a hefty crash suit verdict out of California lead Law360's Tort Report, which compiles recent personal injury and medical malpractice news that may have flown under the radar.
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August 13, 2024
United Customer's Greenwashing Suit Preempted, Judge Says
A Maryland federal judge ruled Tuesday that federal law preempts a proposed class action alleging United Airlines misled customers by deceptively marketing its use of sustainable aviation fuels and its efforts to be green and carbon-neutral.
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August 13, 2024
Ga. Justices To Weigh Arbitrator's Closed-Door Discussions
The Georgia Supreme Court on Tuesday agreed to weigh if an arbitrator's ex parte communications with BioTek Services LLC in an allergy testing payment dispute warranted vacating BioTek's $1.7 million arbitration award over compensation for its testing of patients from Docs of CT LLC.
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August 13, 2024
Colo. Atty Says Prior Firm Took Clients, Retained Funds
A lawyer has sued a small law office in Colorado state court, alleging it asked his clients to switch counsel right before the attorney was set to leave the firm and that the law office is trying to get around a provision of his employment agreement that said he could take the clients, as well as their retainer, upon his departure.
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August 13, 2024
Ex-McCarter & English Client Wants To Undo Malpractice Loss
A New Jersey pharmaceutical business is urging a New Jersey state court to reconsider its decision to throw out the company's malpractice case against McCarter & English LLP, saying the firm "brazenly" misstated part of the timeline of the case's lengthy history.
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August 13, 2024
Ski Resort, Insurer End COVID Closure Suit Days Before Trial
Colorado ski resort company Alterra and its insurer agreed to settle a lawsuit over coverage for coronavirus pandemic shutdowns, shortly after a state judge limited Alterra's potential recovery to $1 million.
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August 13, 2024
Conn. Trial Attys Back McCarter's Bid For Punitive Award
The Connecticut Trial Lawyers Association has asked the state Supreme Court for permission to file a friend-of-court brief supporting McCarter & English LLP's bid for a punitive payout after winning multimillion-dollar judgments in a contract dispute with a former client.
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August 13, 2024
Insurer Owes $18M For Lost Wind Farm Deals, Suit Says
Belgium-based insurer QBE Europe SA/NV should be held liable for more than $18 million in losses suffered by former partners in a now-scuttled joint venture with a Danish company to build vessels for the wind farm industry, as it failed to make a good faith effort to resolve the dispute, a lawsuit filed Monday in Massachusetts federal court contends.
Expert Analysis
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NJ Ruling May Widen Plaintiff Opportunities In LLC Disputes
A New Jersey court’s recent decision in Flor v. GreenbergFarrow found that a court may consider a limited liability company member’s wrongful conduct when determining sale and compensation owed to a dissociate member, and may open doors for plaintiffs seeking relief from wrongful conduct, say Lowry Yankwich and Peter LeVan at LeVan Stapleton.
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Will Justices Settle Decades-Old Split On Arbitrator Conflicts?
Whether an arbitrator's failure to disclose a potential conflict of interest is sufficient grounds to vacate an arbitration award is the subject of an almost 60-year-old circuit split that the U.S. Supreme Court is positioned to resolve if it grants cert in either of two writs pending before it, say attorneys at Norton Rose.
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Companies Should Beware Greater Scrutiny Of Subscriptions
The New York Attorney General's Office has been utilizing a severe interpretation of the law in enforcement against subscription services, as demonstrated in last month's Sirius XM complaint and Cerebral settlement — and this focus is representative of heightened subscription scrutiny in other states and at the federal level, say attorneys at Venable.
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5 Trade Secret Developments To Follow In 2024
Recent cases and trends in trade secret law indicate that significant developments are likely this year, and practitioners should be anticipating their impact on the business and legal landscape, say attorneys at Faegre Drinker.
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Series
Baking Bread Makes Me A Better Lawyer
After many years practicing law, and a few years baking bread, I have learned that there are a few keys to success in both endeavors, including the assembly of a nourishing and resilient culture, and the ability to learn from failure and exercise patience, says Rick Robinson at Reed Smith.
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3 Key Class Action Trends To Use As Guidance In 2024
Telephone Consumer Protection Act, privacy and false advertising class actions saw significant shifts last year — including a trend toward expanding the application of preexisting laws to current technologies — that businesses should keep in mind to navigate the class action landscape in 2024, say attorneys at Mintz.
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Federal Courts And AI Standing Orders: Safety Or Overkill?
Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.
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Wachtell-X Ruling Highlights Trend On Arbitrability Question
A growing body of case law, including a California state court's recent decision in X Corp. v. Wachtell, holds that incorporation of specific arbitral body rules in an arbitration provision may in and of itself constitute clear and unmistakable evidence of delegation of arbitrability to an arbitrator, and thus such clauses should be drafted carefully, say attorneys at Norton Rose.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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Trends That Tech Lawyers Should Keep An Eye On In 2024
Worldwide technology spending is projected to strengthen in 2024, spurred by artificial intelligence-driven solutions, and five areas of growth may affect lawyers' practice in this sector, says Sonia Baldia at Kilpatrick.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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A Look At Consumer Reporting In 2023, And What's To Come
The legal landscape of consumer reporting is evolving as courts, federal regulators and state legislatures continue to weigh in — and while last year may have seen a slight downtick in the overall volume of Fair Credit Reporting Act litigation, 2024 is set to be a watershed year for this area of the law, say attorneys at Troutman Pepper.
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Opinion
Noncompete Report Misinterpreted Critique Of FTC Proposal
A recent report on core questions surrounding the use of employee noncompete agreements published by the Economic Innovation Group misconstrues our stated views on the issue — and we stand behind our conclusion that the Federal Trade Commission made misrepresentations when proposing a rule to ban such provisions nationwide, say Erik Weibust and Stuart Gerson at Epstein Becker.
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Series
Calif. Banking Brief: All The Notable Legal Updates In Q4
As 2023 came to an end, we continued to see developments in California that are certain to have an impact on the financial services industry in 2024, including the California Department of Financial Protection and Innovation's request for comments on the state's new digital asset law and the state's continued enforcement actions against debt collectors, say Jennifer Olivestone and Juan Azel at Winston & Strawn.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.