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Commercial Contracts
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November 12, 2024
Catfished Ex-NBA Player Says Atty Stole Cash, Blew Film Deal
A former NBA player is suing his longtime attorney for legal malpractice in Colorado state court, claiming the attorney stole his money and failed to protect his intellectual property rights while negotiating the terms of a documentary deal about his victimization in an elaborate online catfishing scheme.
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November 12, 2024
Shuttered NHL Talent Rep Appeals Asset Freeze To 1st Circ.
The owner of a now-defunct talent agency that represented professional hockey players is asking the First Circuit to overturn a ruling that froze his assets while a suit from a rival Finland-based management company proceeds in Massachusetts federal court.
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November 12, 2024
Visa To Fight Market Definition In DOJ Antitrust Case
Attorneys for Visa told a New York federal judge on Tuesday that the company plans to argue the U.S. Department of Justice's debit card monopolization case should be tossed because it ignores a key payment method and attacks legitimate contracts.
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November 12, 2024
'Sophie's Choice' Theater Rights Case Trimmed
A Massachusetts judge on Tuesday cut a playwright's tortious interference and breach of fiduciary duty claims from a lawsuit against the 95-year-old widow of "Sophie's Choice" author William Styron.
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November 12, 2024
Unsatisfied With $70M UTC Win, Sandoz Appeals To 3rd Circ.
Sandoz Inc. has moved to appeal its already $70 million-plus breach of contract damages win over biopharmaceutical firm United Therapeutics Corp., teeing up a Third Circuit request to ask for more damages and to revive antitrust claims previously tossed by a New Jersey federal court.
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November 12, 2024
Hertz Investors Urge Chancery Not To Toss Stock Warrant Suit
An attorney for two Hertz Inc. institutional investors told a Delaware judge Monday that the vehicle rental giant relied on an impermissible reinterpretation of a warrant agreement to reject a redemption demand purportedly triggered by the company's post-Chapter 11 recapitalization.
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November 12, 2024
American Airlines Escapes Pandemic Early Retirement Suit
A Texas federal court on Tuesday agreed to permanently toss a group of flight attendants' suit against American Airlines Inc. alleging they were misled into taking a less favorable retirement package during the height of the COVID-19 pandemic, finding a suit dismissed earlier over the same conduct bars their claims.
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November 12, 2024
Arkansas Fights Bid To Block Cherokee Casino Amendment
Arkansas is looking to dismiss a challenge by two Cherokee Nation businesses that seeks to block an amendment revoking one of the tribal entities' casino gaming license, arguing that "the glaring obstacle" of the Eleventh Amendment bars lawsuits against states in federal court.
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November 12, 2024
Developers Seek Dual $15M Deals In Conn. Mixed-Use Case
A pair of companies connected to Connecticut developers Paxton Kinol and Brandon E. Lacoff have indicated that they'd be willing to accept two settlements of $15 million each to end their accusations that investors diverted $293.5 million in sale proceeds through a self-serving transfer agreement.
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November 12, 2024
Consultant In $213M 'Maya' Trial Says Atty Ducked Bill
A trial consultant company that helped the attorney for the family of Maya Kowalski, the girl at the heart of the Netflix documentary "Take Care of Maya," win a $213 million judgment against Johns Hopkins All Children's Hospital Inc. is now suing the Kowalskis' attorney for allegedly failing to pay his bill.
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November 12, 2024
Navajo Co. Says Paralegal Blocking Return Of Privileged Docs
A Navajo Nation natural resources company is suing a former paralegal in Colorado state court to enforce a settlement requiring the return of confidential documents that she allegedly emailed to herself, accusing the paralegal of "erecting unreasonable roadblocks" to their agreement.
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November 12, 2024
10th Circ. Backs Arbitration Denial In Distributor's OT Suit
The Tenth Circuit declined Tuesday to disturb a ruling that a baking company can't boot to arbitration a distributor's lawsuit alleging he was denied overtime pay, finding the worker is exempt from arbitration because he's engaged in interstate commerce even though he doesn't cross state lines.
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November 12, 2024
Trial Consultant Agrees To Keep Ex-Employer's Biz Info Secret
An ex-employee for jury analysis firm Jury-X has agreed to avoid using the company's confidential information while its trade secrets lawsuit unfolds, according to a stipulation filed Tuesday in North Carolina federal court.
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November 12, 2024
Suit Demands Boston Boutique Return Escrowed $7M
A Chinese company says a Boston law firm has refused to account for or return $7 million in escrowed funds that were supposed to be used to secure a line of credit, allegedly ignoring the company's requests for months, according to a complaint filed in Massachusetts state court.
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November 12, 2024
Prison Healthcare Co. Wellpath Hits Ch. 11 With Sale Plans
Prison healthcare provider Wellpath has filed for Chapter 11 protection in a Texas bankruptcy court, saying it has an agreement with the majority of its secured lenders for a sale plan that will trim $500 million of its more than $644 million in funded debt.
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November 08, 2024
8th Circ. Flips $12M Verdict Against Jagermeister's US Arm
The Eighth Circuit has overturned a jury's verdict that Jägermeister's U.S. importer must pay a distributor $11.75 million after terminating their deal, saying Friday the jury was misinstructed and a new trial is required.
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November 08, 2024
1st Circ. Affirms Order Ending Jet Blue-American Partnership
The First Circuit backed a lower court decision blocking a partnership between JetBlue and American Airlines that it found substantially diminished competition in the domestic air travel market, saying it found no error in the district judge's thorough review of the deal that could revive the venture.
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November 08, 2024
Crypto Co. Seeks Freeze Of $4M In Contract Fight
A group of companies known within the cryptocurrency industry as the Bixin Group has filed for an emergency motion to freeze a bank account of Alopex Advisors LLC holding a $4 million security deposit as it pursues arbitration in Hong Kong against Alopex over an agreement to help Bixin navigate the Icelandic property and energy markets.
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November 08, 2024
PPG Seeks $23M Fees In Sherwin-Williams Coating IP Suit
PPG Industries told a Pennsylvania federal judge Friday that Sherwin-Williams should pay it $23 million in attorney fees after the Federal Circuit backed a jury's verdict invalidating five paint coating patents, saying the litigation was "premised on directly contradicting" admissions Sherwin made to the U.S. Patent and Trademark Office.
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November 08, 2024
Fla. Apparel Distributor Sues Gap Over $378M Bait-And-Switch
A South Florida-based apparel distribution company has brought a $378 million counter-complaint against Gap Inc. in California state court, alleging the clothing retailer threatened to sabotage an initial public offering after pulling a bait-and-switch by sending millions of dollars of oversized, unsellable garments and ruin relationships with existing customers.
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November 08, 2024
Off The Bench: Mo. Betting, NCAA Budges, New Ohtani Drama
In this week's Off The Bench, Missouri becomes the latest state to legalize sports betting, an antitrust class action forces more changes to the NCAA's eligibility rules, and Shohei Ohtani's historic season spurs another memorabilia lawsuit.
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November 08, 2024
Payments Co. Never Returned $1.5M, Tribal Authority Claims
An Oklahoma tribal financial services authority has sued two owners of a payment processor, alleging that they defrauded the authority out of $1.5 million by confiscating funds purportedly held in reserve before the termination of their relationship.
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November 08, 2024
Boeing Wins Discovery Spat In African Airline's 737 Max Suit
A Washington federal judge has sided with Boeing in a discovery dispute stemming from a lawsuit over fallout from a 737 Max deal, finding the aerospace giant has cited "tangible evidence" that a now-defunct South African airline failed to retain records "obviously relevant" to its claims that it was deceived regarding the jet's safety.
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November 08, 2024
Water Utility Hits PVC Pipe Makers With Price-Fixing Suit
A public water utility on Friday hit some of the nation's largest PVC pipe manufacturers with a class action accusing them of using a commodity pricing service to exchange information and illegally fix prices, claiming the companies reaped "historic profits" at the expense of public utilities.
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November 08, 2024
Pawn Shop Must Face CFPB's Military Law Claims, Judge Says
In a matter of first impression, a Texas federal judge has ruled that national pawn shop company FirstCash Inc. cannot use a "bona fide error" defense to argue that its alleged violation of the Military Lending Act was an unintentional mishap, saying the defense only applies to private borrower claims, not federal agency suits.
Expert Analysis
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Opinion
Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Contract Disputes Recap: Addressing Dispositive Motions
Stephanie Magnell and Bret Marfut at Seyfarth examine three recent decisions from the U.S. Court of Claims and the U.S. Civilian Board of Contract Appeals that provide interesting takeaways about the nuances of motion practice utilized by the government to dispose of cases brought under the Contract Disputes Act prior to substantive litigation
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What 2 Rulings On Standing Mean For DEI Litigation
Recent federal court decisions in the Fearless Fund and Hello Alice cases shed new light on the ongoing wave of challenges to diversity, equity and inclusion initiatives, with opposite conclusions on whether the plaintiffs had standing to sue, say attorneys at Moore & Van Allen.
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Series
Skiing And Surfing Make Me A Better Lawyer
The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.
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Class Actions At The Circuit Courts: June Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers two recent decisions from the Third and Tenth Circuits, and identifies practice tips around class action settlements and standing in securities litigation.
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Unpacking The Circuit Split Over A Federal Atty Fee Rule
Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.
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Arbitration Implications Of High Court Coinbase Ruling
The U.S. Supreme Court's recent Coinbase v. Suski ruling not only reaffirmed the long-standing principle that arbitration is a matter of contract, but also established new and more general principles concerning the courts' jurisdiction to decide challenges to delegation clauses and the severability rule, say Tamar Meshel at the University of Alberta.
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A Look At Calif. Contract Considerations In Fiji Water Ruling
A California appellate court's recent decision in Carolina Beverage v. Fiji Water, that a party may not seek contractual recovery on the basis of constructive termination, offers a look at contract construction and other considerations on negotiating distribution agreements, says Michael Laszlo at Clark Hill.
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After A Brief Hiccup, The 'Rocket Docket' Soars Back To No. 1
The Eastern District of Virginia’s precipitous 2022 fall from its storied rocket docket status appears to have been a temporary aberration, as recent statistics reveal that the court is once again back on top as the fastest federal civil trial court in the nation, says Robert Tata at Hunton.
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Practical Private Equity Lessons From 2 Delaware Deals
A pair of Delaware Chancery Court cases remind private equity sponsors that specificity is crucial through the lens of deal certainty, particularly around closing conditions and agreement sections of acquisition agreements, say Robert Rizzo and Larissa Lucas at Weil Gotshal and William Lafferty at Morris Nichols.
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Recruitment Trends In Emerging Law Firm Frontiers
BigLaw firms are facing local recruitment challenges as they increasingly establish offices in cities outside of the major legal hubs, requiring them to weigh various strategies for attracting talent that present different risks and benefits, says Tom Hanlon at Buchanan Law.
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How Uyghur Forced Labor Law Affects Importing Companies
Amid a growing focus on forced labor in supply chains and a likely increase in enforcement under the Uyghur Forced Labor Prevention Act, companies may face costly import delays unless they develop and implement compliance best practices, say Thad McBride and Lauren Gammer at Bass Berry.
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Revisiting Morals Clauses In The Age Of Deepfakes
Deepfakes and other forms of misrepresentation powered by artificial intelligence have complicated the traditional process of reputation management for companies entering into talent agreements with celebrities, bringing new considerations for the morals clauses that usually shield against these risks, say attorneys at Pryor Cashman.
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4 Tips For Drafting Earnouts To Avoid Disputes
Amid slowed merger and acquisition activity, buyers and sellers are increasingly turning to earnout provisions to get deals done, but these must be carefully drafted to avoid interpretative differences that can lead to later disputes, say attorneys at Cooley.
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Atmospheric Rivers: Force Majeure Or Just A Rainy Day?
As atmospheric rivers pummel California with intense rainfall, flooding and landslides, agencies and contractors in the state struggling to manage projects may invoke force majeure — but as with all construction risk issues, the terms of the agreement govern, and relief may not always be available, say Kyle Hamilton and Corey Boock at Nossaman.