Expert Analysis

• How Contracts Can Address Agentic AI Monitoring Risk

  

  In light of two recent OpenAI incidents of artificial intelligence agents disabling their monitoring safeguards, companies deploying agentic AI should draft contracts reflecting the possibility that controls can fail, and identify who controls each safeguard, whether the AI agent can interfere, and how a failure will be detected, say attorneys at Zova Law.

• Opinion

  The Invisible AI Danger That May Undermine Legal Profession

  

  A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

• Full Policy Payment May Not Bar Insurer Bad Faith In 9th Circ.

  

  Establishing that an insurer acted within its contractual rights likely disposes of a breach-of-contract claim, however, following the Ninth Circuit's recent ruling in Quilbillies v. First American Title Insurance, the same showing may not dispose of bad faith, says Tracy Garcia at Cozen O'Connor.

• Logistics Update: Handling Iran War Supply Chain Limitations

  

  The war in Iran is straining global logistics by introducing practical, commercial, legal and claims limitations for both operators and customers — so all supply chain participants must understand the resulting legal issues, and how to respond to them, says Jonathan Todd at Benesch.

• How AI Could Help Judges Spot Their Own Biases

  

  In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

• Tracking Texas: When Counterclaims Start The Removal Clock

  

  The Texas Business Court's recent decision in Bakery v. Naterra International clarifies that, when the original claims do not meet the court's amount-in-controversy threshold, a presuit threat to bring high-value counterclaims does not itself make those unfiled claims part of the action, say attorneys at Greenberg Traurig.

• 3 Strategies To Reduce AI Sycophancy In Legal Work

  

  The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

• 2nd Circ. EFAA Ruling Shifts Employer Litigation Strategy

  

  In Diaz-Roa v. Hermes Law, the Second Circuit recently held that, under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employers can't carve out nonharassment claims and send them to arbitration, which has implications for discovery, litigation costs and resolution strategy in EFAA-covered disputes, say attorneys at Krevolin Horst.

• How Senate-Passed Bill May Reshape NCAA Antitrust Liability

  

  With the U.S. Senate's recent passage of the Protect College Sports Act, practitioners should not wait for the U.S. House of Representatives' approval to prepare for shifts in potential antitrust protections, compensation, media rights deals and conference mergers, say attorneys at Norton Rose.

• New Calif. Law Ties Finance Contracts To State Licensing

  

  Under a California law taking effect in 2028, commercial financing licensing requirements have been substantially expanded — meaning that fintechs relying on limited regulatory enforcement will face risk from their own borrowers, who could use licensing failures to resist repayment, say attorneys at Husch Blackwell.

• Series

  Being In The Peace Corps Made Me A Better Lawyer

  

  When I served in the Peace Corps, the people of the West African village where I was stationed helped me acclimate to my new surroundings and enabled me to develop problem-solving, teamwork and empathy skills that have bolstered my legal practice far beyond the ability to offer technical advice, says Brian Bewley at McGuireWoods.

• Immunity May Not Protect Gov't-Backed Cyber Operators

  

  Companies considering participation in a National Coordination Center program that authorizes private actors to conduct offensive cyber operations on the government’s behalf should understand the limits of sovereign immunity and the operational and legal risks lurking in the details and undefined parameters of the program, say attorneys at Steptoe.

• Tariffs Could Be Behind Surge In FTZ Production Filings

  

  As tariffs reshape production sourcing decisions, manufacturers are seeking foreign trade zone production authority at more than twice last year's pace, making it important to consider the potential duty and export benefits, along with review delays and restrictions that can curb savings, say attorneys at Sidley.

• 6th Circ. Spotlights Cannabis Contract Enforceability Risks

  

  The Sixth Circuit's recent reversal of a $31.8 million jury verdict against a subsidiary of cannabis giant Curaleaf highlights that state licenses do not necessarily provide the legal foundation needed to enforce contracts in federal court, which is a pattern that appears across many sectors, say attorneys at ArentFox Schiff.

• Reckoning With The IP Risks Of Building Vibe-Coded Products

  

  While artificial intelligence can now be prompted into generating potentially valuable software, developers who sell vibe-coded products must account for questions about authorship, copyrightability and their ability to control the resulting code, say attorneys at Lawgorithm Advisors.