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Commercial Contracts
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October 30, 2024
Judge Stops Arbitration Of Connecticut Trial Firm Breakup
A Connecticut Superior Court judge has issued an emergency order temporarily restraining the CEO of a law firm known for high-dollar trial verdicts from arbitrating a dispute over the practice's breakup after onetime partner Andrew P. Garza filed suit late last week.
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October 30, 2024
Alleged Kickback Plotters Can Waive Conflict Over Attorney
A Colorado federal judge on Wednesday concluded that a lab testing company owner charged with participating in a kickback scheme to defraud Medicare and a man who pled guilty to participating in a connected conspiracy could waive any conflicts that might arise from both using the same attorney.
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October 30, 2024
Defunct Insurer Says Broker Sabotoged Investment Coverage
A defunct specialty insurer has accused a broker of sabotaging its innovative investment theft protection program, telling a Florida federal court the broker not only failed to sell a single policy but also abruptly canceled its agreement amid negotiations with a separate broker, damaging the insurer's reputation and costing it millions of dollars.
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October 30, 2024
Cigna Wants $16.1M, Florida Labs Seek $5.1M In Benefits Feud
Cigna should pay $5.1 million for harming three Florida laboratories by wrongfully declaring thousands of substance abuse treatment tests medically unnecessary, the labs told a Connecticut jury Wednesday, while Cigna asked to recoup $16.1 million in payouts to the labs for what it called "wasteful" tests.
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October 30, 2024
4th Circ. Mulls Shipping Honeywell Royalty Fight To Fed. Circ.
The Fourth Circuit grappled Wednesday with whether a fight over royalty payments between technology conglomerate Honeywell and its Japan-based rival had its roots in patent or contract law, which could dictate whether the appeal stays put or gets kicked over to the Federal Circuit.
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October 30, 2024
TD Bank Hit With Suit Over 'Cash-Like' Advance Loans
TD Bank was hit with a proposed class action accusing the bank of violating its cardholder agreement by considering undisclosed transactions "cash-like," and keeping the policies around what is considered a cash advance hidden from consumers while charging fees and interest.
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October 30, 2024
Ex-Ford Models CEO Can't Arbitrate Sex Misconduct Suit
A California appeals court won't let the former CEO of Ford Models send a woman's suit brought under a state sex trafficking law to arbitration, saying her allegations don't fall within the scope of the arbitration agreement she signed.
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October 30, 2024
Ex-Takeda Exec. Gets Nearly 4 Years For Fake Invoice Scam
A former Takeda Pharmaceuticals executive was sentenced Wednesday to 46 months in prison for stealing millions from the drug company through a fake invoice scam that a Boston federal judge characterized as "utterly unnecessary and pointless" and carried out for no other reason than to fund a luxurious lifestyle.
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October 30, 2024
Yale Researcher's Suit Over Loss Of 'Life's Work' Transferred
A Connecticut state court judge in Fairfield is passing on a researcher's lawsuit accusing Yale School of Medicine of destroying two decades of research worth $28 million, transferring the case to the complex litigation docket in Hartford.
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October 30, 2024
Cannabis Fertilizer Co. Can Mostly Bar Rival's IP Theft In Ads
A Seattle federal judge has curtailed a fertilizer manufacturer's use of a rival's name in marketing its cannabis-focused products, saying he found it "problematic" that the company's messaging suggests using both products in tandem.
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October 30, 2024
Auctioneer Fights Transfer Of Defamation Suit Against Braves
An auction house pushed back Tuesday on the Atlanta Braves' bid to dismiss or transfer a suit over the team's claims that the auctioneer was selling phony memorabilia, including a home plate allegedly tagged by Hank Aaron after hitting his record home run, arguing that the team should be held accountable by Texas courts.
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October 30, 2024
Treasure Hunter Urges Atty DQ In Fla. Shipwreck Suit
A member of an ocean salvage company urged a Florida federal court Wednesday to disqualify counsel applying to represent his opponent in a lawsuit over a claim to a Spanish galleon's sunken treasure, saying the attorney previously represented the company in a separate dispute involving the same wreckage.
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October 30, 2024
O'Neill Brand Owner Says La Jolla Flouted Pre-Sale Deal
The owner and maker of O'Neill sportswear accessories is suing La Jolla Sport in California federal court over claims it breached a longstanding agreement that requires the company to provide certain due diligence information so the plaintiff can finalize a planned sale of the O'Neill brand.
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October 30, 2024
Anadarko Seeks Win In Kickback Defense Coverage Suit
Anadarko Petroleum Corp. urged a Texas federal court to hand it an early win in its suit seeking defense and indemnity from an environmental remediation company in a decade-old Louisiana kickback lawsuit.
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October 30, 2024
Pot Co. Cookies Sued Over Breach Of Settlement Agreement
A licensee of the Cookies brand of cannabis products is suing the parent company and its affiliates in Los Angeles court, alleging they have breached a recent settlement agreement by refusing to pay for the licensee's remaining Cookies-branded products.
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October 30, 2024
Diversified Energy Closes $106M Buy Of East Texas Assets
Oil and gas producer Diversified Energy Co. PLC said Wednesday that it has completed the $106 million acquisition of natural gas assets in eastern Texas from Crescent Pass Energy in a cash-and-stock deal.
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October 29, 2024
Bell Owes $16M In Trade Secrets Row With Vendor, Jury Finds
A Texas jury on Tuesday largely found in favor of Bell Helicopter Textron Inc. in a suit claiming that it used a former vendor's trade secrets to prep a replacement supplier, concluding that Bell breached its contract with the vendor but that the Fort Worth, Texas-based aerospace manufacturer hadn't stolen intellectual property.
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October 29, 2024
Retired Fed. Circ. Judge Backs Invisalign In Monopoly Cases
Retired Federal Circuit Judge Paul R. Michel warned the Ninth Circuit on Tuesday that reversing a lower court's decision to toss a pair of class actions accusing Invisalign of monopolizing the clear braces and teeth scanners market by illegally refusing to deal with a rival would increase patent owners' legal uncertainties.
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October 29, 2024
ByteDance's Sanctions Bid Against Ex-Worker Delays Trial
A California federal judge delayed a trial in a wrongful termination lawsuit filed by an engineer formerly at TikTok's parent company ByteDance, directing the parties on Tuesday to instead submit briefing on the defendants' motion to terminate the case as a sanction for the plaintiff's alleged destruction of evidence and perjury.
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October 29, 2024
Lye Buyers Can't Save Rejected $38.5M Antitrust Settlement
A New York federal judge refused Tuesday to change her mind about rejecting a $38.5 million class settlement between direct chemical buyers and three manufacturers accused of colluding to inflate the price of lye.
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October 29, 2024
Pet Toy Co. Parent Says Management Rights Fight Isn't Stale
The parent company for pet toy maker Kong Co. has urged a Colorado state judge not to cast aside a suit seeking a declaration of its management rights in Kong, arguing in a brief that the dispute is alive even if its complaint raises the past.
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October 29, 2024
Pa. Seeks State Takeover Of Embattled Hospital System
Pennsylvania urged a state court to appoint a receiver for a hospital system after its operator, Prospect Medical Holdings Inc., allegedly violated an asset purchase agreement by spending millions of dollars on its investors instead of healthcare system management.
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October 29, 2024
Ga. Court Says Apt. Must Face Shooting Death Suit
The Georgia Court of Appeals affirmed a trial court ruling holding that an apartment complex company's attempt to waive its liability for third-party crimes in a lease agreement with a tenant who was shot and killed is void and unenforceable under Peach State law.
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October 29, 2024
Argent Strikes Symbria ESOP Suit Settlement Deal
A class of Symbria Inc. workers alleging mismanagement of their employee stock ownership plan told an Illinois federal court they had reached a settlement with ESOP trustee Argent Trust Co. to end their federal benefits lawsuit.
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October 29, 2024
Baseball Bat Cos. Reach Deal To End Fla. Trademark Battle
A baseball bat company owned by ex-MLB player Yoenis Céspedes has settled an intellectual property lawsuit against several businesses over baseball bats, months after a Florida federal judge handed the former New York Mets outfielder's business a preliminary injunction in the case.
Expert Analysis
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Businesses Should Take Their AI Contracts Off Auto-Renew
When subscribing to artificial intelligence tools — or to any technology in a highly competitive and legally thorny market — companies should push back on automatic renewal contract clauses for reasons including litigation and regulatory risk, and competition, says Chris Wlach at Huge Inc.
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What To Know About NIGC's Internal Review Process
Excerpt from Practical Guidance
If the National Indian Gaming Commission disapproves of a tribal management contract for gaming operations, it's important to properly go through the commission's internal hearing mechanism before litigating in federal court, or else an action may be dismissed for failure to exhaust administrative remedies, says Rebecca Chapman at the University at Buffalo School of Law.
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What The Justices' Copyright Damages Ruling Didn't Address
While the U.S. Supreme Court’s recent ruling in Warner Chappell v. Nealy clarified when a copyright owner may recover damages in jurisdictions that apply the so-called discovery rule, it did not settle the overriding question of whether the Copyright Act even permits applying the rule, say Ivy Estoesta and William Milliken at Sterne Kessler.
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Series
Teaching Yoga Makes Me A Better Lawyer
Being a yoga instructor has helped me develop my confidence and authenticity, as well as stress management and people skills — all of which have crossed over into my career as an attorney, says Laura Gongaware at Clyde & Co.
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A Vision For Economic Clerkships In The Legal System
As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.
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7 Effects Of DOL Retirement Asset Manager Exemption Rule
The recent U.S. Department of Labor amendment to the retirement asset manager exemption delivers several key practical impacts, including the need for managers, as opposed to funds, to register with the DOL, say attorneys at Ropes & Gray.
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Del. Rulings Make Clear That 'Arbitrator' Isn't A Magic Word
Recent decisions by the Delaware Chancery Court clarify that calling a process an "expert determination" or "arbitration" in a purchase agreement is not sufficient to define it as such, so practitioners must consider how to structure dispute resolution provisions to achieve their clients’ desired result, say attorneys at Troutman Pepper.
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Protecting IP May Be Tricky Without Noncompetes
Contrary to the Federal Trade Commission's view, trade secret law cannot replace noncompetes' protection of proprietary information because intellectual property includes far more than just trade secrets, so businesses need to closely examine their IP protection options, say Aimee Fagan and Ching-Lee Fukuda at Sidley.
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A Look At FERC's Plan To End Reactive Power Compensation
A recent notice of proposed rulemaking indicates that the Federal Energy Regulatory Commission is likely to eliminate compensation for reactive power within the standard power factor range — causing significant impacts for the electric power industry, which relies on income from providing this service, say Norman Bay and Matthew Goldberg at Willkie and Vivian Chum at Wright & Talisman.
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8 Legal Issues Influencing Investors In The Creator Economy
The rapidly expanding digital creator economy — funding for which more than doubled in the U.S. in the first quarter — comes with its own set of unique legal issues investors must carefully consider before diving in, say Louis Lehot and Alan Pate at Foley & Lardner.
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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IP Considerations For Companies In Carbon Capture Sector
As companies collaborate to commercialize carbon capture technologies amid massive government investment under the Infrastructure Investment and Jobs Act, a coherent intellectual property strategy is more important than ever, including proactively addressing and resolving questions about ownership of the technology, say Ashley Kennedy and James De Vellis at Foley & Lardner.
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What's Notable In JAMS' New Mass Arbitration Rules
The Judicial Arbitration and Mediation Services’ recently released guidelines, coming on the heels of similar American Arbitration Association amendments, suggests that mass arbitrations will remain an efficient means for consumers to vindicate their rights against companies, say Jonathan Waisnor and Brandon Heitmann at Labaton Keller.
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How New Rule Would Change CFIUS Enforcement Powers
Before the May 15 comment deadline, companies may want to weigh in on proposed regulatory changes to enforcement and mitigation tools at the disposal of the Committee on Foreign Investment in the United States, including broadened subpoena powers, difficult new mitigation timelines and higher maximum penalties, say attorneys at Venable.
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Series
Swimming Makes Me A Better Lawyer
Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.