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Commercial Contracts
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September 18, 2024
'Bling Empire' Star Owes $900K To Ex-Partner For Show Idea
A California jury has concluded that the executive producer and star of Netflix's series "Bling Empire," Kelly Mi Li, owes a former business partner nearly $700,000 for breach of contract and fiduciary duties, along with $200,000 in punitive damages.
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September 18, 2024
5th Circ. Favors Excess Insurer In Marina Coverage Dispute
The Fifth Circuit upheld a ruling in an inter-insurer dispute over coverage responsibilities of a $13.7 million judgment entered against their mutual client, holding Wednesday that while the excess insurer breached its duties, the primary insurer bears the larger financial burden because it failed to properly settle the underlying dispute.
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September 18, 2024
5th Circ. Axes Bargaining Order Against Legal Support Firm
The Fifth Circuit reversed a National Labor Relations Board bargaining order Wednesday against a legal support consulting firm, determining certain workers within the unit are supervisors who can't unionize under federal labor law.
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September 18, 2024
Pa. Jury Clears SeaWorld-Owned Park In Race Bias Trial
A Pennsylvania jury on Wednesday freed SeaWorld's Philadelphia-area park Sesame Place of claims that minority children endured discrimination by costumed performers who were accused of ignoring them during character parades.
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September 18, 2024
Toss Atty Input Overboard, Says Org. In Blackbeard Image Spat
A marine research organization and a state cultural resources agency have urged the North Carolina Business Court to scrap testimony from attorneys from trial evidence in a contract battle over the use of images and video of Blackbeard's shipwreck.
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September 18, 2024
IP Firm Prevails In Malpractice Suit Over Dueling Patent Apps
A Boston intellectual property law firm on Wednesday ducked a legal malpractice suit brought by a Colorado technology company alleging the firm betrayed it while filing patents on behalf of another client, after a Massachusetts federal judge found an absence of attorney-client relationship sunk the claims.
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September 18, 2024
Pa. AG Sues Robot Co. Over $2M In Unfilled Orders, Refunds
A Pittsburgh robotics company took orders for more than $4 million worth of robot toys but failed to deliver many of them — and in the case of a toy based on the TV show "Rick and Morty," didn't secure the intellectual property rights — according to a consumer protection lawsuit announced by the Pennsylvania Attorney General's Office on Wednesday.
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September 18, 2024
Toshiba Loses Bid To Sanction Mich. Energy Cos. Over Depo
A Michigan federal judge has rejected Toshiba and its subsidiary's request for sanctions against the state's largest energy companies despite Toshiba's claim that their witness failed to answer certain questions at a deposition, ruling Toshiba didn't properly lay out what it wanted the witness to talk about and that his other answers were appropriate.
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September 18, 2024
Del. Justices Grapple With Noncompete Litigation Limits
An attorney for residential solar power system dealer Sunder Energy LLC told Delaware's top court Wednesday that the Chancery Court last year relied on a case record "procedurally anomalous and bereft of fact" when it denied a preliminary injunction in a noncompete suit targeting a co-founder and two competitors.
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September 18, 2024
Staffing Co. Ex-CEO Gets Prison Time For $6M Billing Scheme
The former CEO of a purported Georgia-based staffing company was sentenced to nearly eight years in federal prison after pleading guilty to fraud-related charges in a $6 million scheme using fake payroll invoices he sent to a financing business in Florida while pretending to be someone else.
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September 18, 2024
Conn. Investment Adviser Stole Secrets, Ex-Employer Says
An employee of a Connecticut investment advisory firm started a competing company and solicited his employer's clients before suddenly resigning and taking trade secrets to his new business, according to a new lawsuit in state court.
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September 18, 2024
Thermo Fisher Late To Pay Departing Workers, Engineer Says
Thermo Fisher Scientific Inc. and a subsidiary failed to promptly pay all final wages and unused vacation time to departing employees and must now cough up three times the amount of that compensation because of its violation of Massachusetts law, according to a proposed class action filed in state court.
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September 18, 2024
Gibson Dunn Loses Fee Fight With Ex-Partner
Gibson Dunn & Crutcher LLP must pay an additional $141,000 in legal fees to ex-partner and hotshot appellate attorney Mark A. Perry, on top of the roughly $585,000 the firm owes him after losing a legal battle over his departure to Weil Gotshal & Manges LLP.
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September 18, 2024
Accounting Firm Prunes Flower Bulb Co.'s $2M Tax Bill Case
The North Carolina Business Court has narrowed a flower bulb retailer's negligence suit alleging its former accounting firm failed to sound the alarm about a major change in tax law, finding there was no fiduciary duty owed but that there may have been a breach of contract.
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September 18, 2024
Federal Judge Won't Abstain From Pot Payment Co. Dispute
A Nevada federal judge has declined to abstain from a dispute between a pair of investment firms over the collapse of their joint venture, saying while one company is a subsidiary of a cannabis payment processing company, the dispute can be resolved without dipping into the murky waters of cannabis's federal illegality.
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September 17, 2024
Chancery Sides With Truth Social Backer In SPAC Deal Payout
A Delaware Chancery judge sided Tuesday with the investment sponsor of the entity that took former President Donald Trump's Truth Social media company public, on claims it was shortchanged in the deal, ordering a larger share of the stock be handed over from the transaction.
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September 17, 2024
FDIC Proposes Rule On Bank-Fintech Partnership Risks
The Federal Deposit Insurance Corp.'s rulemaking board on Tuesday proposed new recordkeeping rules aimed at both shoring up consumer protections as more fintech firms enter the banking space, and preventing a repeat of account freezes that have occurred after fintech service provider Synapse entered into bankruptcy earlier this year.
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September 17, 2024
Ford Barred From Using InterMotive Mark After $13M Verdict
A Michigan federal judge permanently barred Ford Motor Co. from using the name of a California tech company's vehicle control module, following last year's jury award of more than $13 million to the tech maker for infringement by Ford.
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September 17, 2024
Ex-Worker Suing Over Bonuses Backed Axing Them, X Says
X Corp. urged a California federal court to reject a former director's bid to certify a class that could exceed 2,000 members in his suit accusing it of reneging on promised bonuses after Elon Musk took over, saying the former employee was the one who axed the bonuses in the first place.
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September 17, 2024
Texas Fertility Clinic Hid 'Catastrophic' Lab Issue, Couples Say
Five couples accused a Houston fertility institute of hiding "catastrophic" laboratory issues that affected patients' embryos, saying in a lawsuit that the entity instead injected multiple hopeful mothers with "dead or dying" eggs.
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September 17, 2024
Ashurst Hires Fintech Pro From EY Law In London
Ashurst LLP has recruited an expert in financial technology from EY Law to strengthen its capability to advise clients on digital transformation projects.
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September 16, 2024
CEO's AI Fraud Detection Tool Contract Was Fraud, Feds Say
A former technology company CEO has pled guilty to a charge that he cooked his company's books and raised tens of millions of dollars from investors off phony claims that an artificial intelligence program his firm developed was being used to spot digital ad fraud, the Manhattan U.S. Attorney's Office said Monday.
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September 16, 2024
9th Circ. Won't Review Tribal Jurisdiction In Virus Suit
An en banc panel of the Ninth Circuit on Monday upheld a panel's finding that the Suquamish Tribal Court has jurisdiction over the tribe's coronavirus coverage dispute with its insurers, though a dissent claimed the panel decision "gutted any geographic limits of tribal court jurisdiction."
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September 16, 2024
Swedish Amazon Aggregator Files Ch. 15 To Halt Arbitration
Swedish Amazon aggregator Go North Group AB, a business that consolidates small sellers into one platform, filed for Chapter 15 recognition in a New York bankruptcy court Monday, aiming to halt arbitration over a post-merger earnout dispute until it completes a roughly $75 million reorganization in its home country.
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September 16, 2024
Wilson Sporting Goods Says Broken Deal Cost $1.2M In Sales
Wilson Sporting Goods will lose out on at least $1.2 million in sales because Gators Baseball Academy unlawfully terminated their equipment exclusivity agreement, inked a new arrangement with a third party behind Wilson's back, and refused to mediate the dispute, according to a lawsuit lodged in Illinois federal court Monday.
Expert Analysis
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Co-Tenancy Clause Pointers For Shopping Center Landlords
Large retail tenants often require co-tenancy provisions in their leases, entitling them to remedies if a shopping center's occupancy drops in certain ways, but landlords must draft these provisions carefully to avoid giving tenants too much control, says Gary Glick at Cox Castle.
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What VC Fund Settlement Means For DEI Grant Programs
An unexpected settlement in American Alliance for Equal Rights v. Fearless Fund, based on specific details of an Atlanta venture capital fund's challenged minority grant program, leaves the legal landscape wide open for organizations with similar programs supporting diversity, equity and inclusion to chart a path forward, say attorneys at Moore & Van Allen.
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New Lessons On Managing Earnout Provision Risks
Earnout provisions can be a useful tool for bridging valuation gaps in M&A, particularly in developmental-stage pharmaceutical transactions, but the Delaware Chancery Court’s recent decision in Shareholder Representative Services v. Alexion sheds new light on the inherent risks and best practices for managing them, say attorneys at Cleary.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Employer Arbitration Lessons From Calif. Consumer Ruling
Although a California state appeals court’s recent arbitration ruling in Mahram v. Kroger involved a consumer transaction, the finding that the arbitration agreement at issue did not apply to a third-party beneficiary could influence how employment arbitration agreements are interpreted, says Sander van der Heide at CDF Labor Law.
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Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling
The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Considering Noncompete Strategies After Blocked FTC Ban
A Texas district court's recent decision in Ryan v. Federal Trade Commission to set aside the new FTC rule banning noncompetes does away with some immediate compliance obligations, but employers should still review strategies, attend to changes to state laws and monitor ongoing challenges, say attorneys at Baker McKenzie.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.