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Commercial Contracts
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September 25, 2024
GM Part Maker Says Supplier's Stoppage Halts Chain
An auto seating system maker urged a Michigan federal judge on Wednesday to force a supplier to resume producing parts needed for General Motors and Honda vehicles, saying the supplier is running afoul of their contract by demanding higher prices and could cause a shutdown of the auto supply chain.
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September 25, 2024
Baltimore Bridge Wreck: 6 Months Later, Claims Mount
A court deadline to challenge liability limits over Baltimore's Francis Scott Key Bridge collapse shows an intense legal battle brewing as the U.S. government, Maryland and private plaintiffs sharpen their claims for damages against the owner and manager of the cargo ship that slammed into the bridge six months ago.
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September 25, 2024
Consultant Wants NC Packaging Patent Fight Tossed
A consultant and owner of a cold-packaging company accused of lying about his patent rights is doubling down on his bid to ditch a rival business's federal lawsuit under North Carolina's abusive patent law, saying he has no intention of accusing the business of infringement.
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September 25, 2024
Walgreens' TM Suit Can Proceed Against Founder's Relative
Walgreen Co. can move forward with its trademark infringement suit against the great-grandson of the company's founder for operating Walgreen Health Solutions after an Illinois federal judge denied his motion to dismiss, finding the drugstore chain has shown a likelihood of confusion between the two brands.
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September 25, 2024
Navajo Nation Inks $31M Deal With Bitco For Veteran Housing
The Navajo Nation said it has signed a $31 million contract with tribally owned Bitco Corp. to build 95 homes for Navajo veterans, using funds provided by President Joe Biden's American Rescue Plan Act.
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September 25, 2024
Developer Says Minn. City Made Rule To Block Mosque
A developer and its Muslim founders claimed in federal court that Islamophobia motivated Lino Lakes, Minnesota, and several of its lawmakers to approve a moratorium that blocked the construction of a mixed-use development project that featured a mosque.
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September 25, 2024
Rapper Says Mike Jones, Houston Texans Stole Song
The owner of the unofficial Houston anthem "Still Tippin'" told a Harris County court this week that rapper Mike Jones and others have ripped off his 2002 song for use by the Houston Texans football team without his permission.
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September 25, 2024
Owner Tanked NC Captive Insurer, Directors Say
Minority shareholders of a now-defunct North Carolina captive insurer providing liability coverage to nursing homes accused the captive's majority shareholder of refusing to pay over $5 million in premiums and stealing funds to pay off his personal legal debts, seeking damages in North Carolina's business court.
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September 25, 2024
Doctor Says Accusers In $2M Fraud Case Hiding In Pakistan
Counsel for a doctor accused of a $2.5 million fraud says that opposing counsel wants to hide his accuser in Pakistan until trial, telling a Dallas County judge during a Wednesday sanctions hearing that he's entitled to an in-person deposition from the man making the allegations.
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September 25, 2024
Google Files EC Complaint Against Microsoft Cloud Business
Google has lodged an antitrust complaint against Microsoft with the European Commission Wednesday, claiming that Microsoft's dominant software products illegally lock customers into its cloud computing platform Azure, allowing it to drive up costs and stifle innovation.
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September 25, 2024
NC State '83 Basketball Champs Drop TV Networks In NIL Suit
Members of the 1983 North Carolina State University men's basketball team, known as the Cardiac Kids, dropped CBS and TNT from their suit in North Carolina state court accusing the NCAA of exploiting their names, images and likenesses from their national championship run during the annual promotion of March Madness.
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September 25, 2024
Wash. Hospital System Misclassifies Workers, Nurse Says
A Washington-based hospital operator misclassified its workers as independent contractors and underpaid them for their overtime as a result, a registered nurse said in a proposed class and collective action in Washington federal court.
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September 25, 2024
Cannabis Co., Investor Must Take Contract Suit Back To Court
A Washington appeals panel has reversed a summary judgment in favor of an investor who alleged that a cannabis grower and seller breached an agreement to buy out his stock following a dispute, saying that while the contract is enforceable, there remain questions about whether that contract was breached.
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September 25, 2024
NC Judge Limits $5.6M Hurricane Claims In Part Over Deadline
A North Carolina federal court found that a property owner awarded $5.6 million following hurricane damages could continue its breach of contract case against an insurer for alleged underpayment for 2016 Hurricane Matthew damages, though its claims for 2018 Hurricane Florence damages were time-barred.
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September 25, 2024
Insurer Needn't Cover Las Vegas Sands In Payment Dispute
An AIG unit secured an early win in its coverage dispute with a Las Vegas casino over an underlying state court lawsuit brought by an agent alleging the casino failed to pay him for his work, after a Nevada federal court ruled the underlying action was not covered.
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September 25, 2024
Vape Co. Sues Buchalter Alleging Malpractice After IP Action
A Los Angeles-based cannabis company called Smoke Tokes LLC has filed a legal malpractice suit accusing Buchalter PC and two of its attorneys of causing a federal trademark action to drag on unnecessarily even after Smoke Tokes took all necessary steps to satisfy a judgment and injunction.
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September 25, 2024
Production Co. Drops Lil Uzi Vert Manager From Fees Suit
A California-based company suing rapper Lil Uzi Vert for failing to pay more than half a million dollars in concert design and production costs told a Georgia federal judge it is dismissing a breach of contract claim against the rapper's manager, Amina Diop.
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September 25, 2024
Full Fed. Circ. To Tackle Patent Damages In $20M Google Case
The full Federal Circuit said Wednesday it will review a panel's holding that Google must pay EcoFactor $20 million for infringing a smart thermostat patent, after the tech giant said the court has allowed patent owners to "manufacture a royalty rate."
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September 24, 2024
Google Can't Ditch Privacy Suit Over Period App Data Sharing
A California federal judge has refused to release Google from a proposed class action alleging the company used a data analytics tool to wrongfully retrieve data from menstruation tracking app Flo, rejecting the tech giant's arguments that the plaintiffs lacked standing and had consented to the disclosures.
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September 24, 2024
Athlete Investment Co. Gets Claims Nipped In $1M Fraud Suit
A New York federal judge has trimmed a suit alleging that an athlete investment company that aimed to "tokenize" and sell shares of professional athletes was involved in a $1 million fraud and lied about its business plan, saying the plaintiff is conflicted from bringing certain derivative claims.
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September 24, 2024
11th Circ. Weighs 'Good Cause' In Franchise Termination Suit
The Eleventh Circuit on Tuesday considered whether Hyundai Motor Corp. acted with "good cause" when it terminated a franchise owner's dealership contracts over sexual assault charges against the franchise owner's son, with arguments largely focused on whether the carmaker acted with "good cause."
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September 24, 2024
Helicopter Maker Skirted FAA Requirements, Jury Hears
Fort Worth-based Bell Helicopter Textron Inc. used a former vendor's trade secrets to skirt the need for regulatory approval, a jury heard in Texas state court Tuesday, allegedly avoiding requirements set by the Federal Aviation Administration as the company pulled the rug out from under its old vendor.
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September 24, 2024
Fired United Rentals Worker Denies Competing In New Job
United Rentals Inc. cannot show that it suffered irreparable harm when an ex-employee started working for a new company after he was fired, and even if it could, his noncompete agreement is unenforceable, the worker said in a filing in Connecticut state court that seeks to stave off a preliminary injunction.
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September 24, 2024
Wash. Justices Dubious Of Moonlighting Ban Loophole
Washington state Supreme Court justices expressed doubt Tuesday that the state's moonlighting protections included an exception allowing companies to ban employees from other businesses in the same industry, saying that would contradict the noncompete statute's aim of supporting mobility for low-wage earners.
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September 24, 2024
Appeals Court Finds LNG Project Claims Barred By Arbitration
An arbitration between a Kinder Morgan affiliate and a U.S. energy company concerning an abandoned gas project foreclosed a later breach of contract case from the U.S. company's Italian parent, a New York appeals court ruled Tuesday.
Expert Analysis
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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.
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Series
Glassblowing Makes Me A Better Lawyer
I never expected that glassblowing would strongly influence my work as an attorney, but it has taught me the importance of building a solid foundation for your work, learning from others and committing to a lifetime of practice, says Margaret House at Kalijarvi Chuzi.
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What 11th Circ. Fearless Fund Ruling Means For DEI In Courts
The Eleventh Circuit's recent backing of a freeze on the Fearless Fund's grants to women of color building new companies marks the latest major development in litigation related to diversity, equity and inclusion and may be used to question other DEI programs targeted at providing opportunities to certain classes of individuals, say attorneys at Simpson Thacher.
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Opinion
Paid Noncompetes Offer A Better Solution Than FTC's Ban
A better alternative to the Federal Trade Commission's recent and widely contested noncompete ban would be a nationwide bright-line rule requiring employers to pay employees during the noncompete period, says Steven Kayman at Rottenberg Lipman.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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Cyber Takeaways For Cos. From Verizon Data Breach Report
Camilo Artiga-Purcell at Kiteworks analyzes the key findings of the 2024 Verizon Data Breach Investigations Report from a legal perspective, examining the implications for organizations' cybersecurity strategies and compliance efforts.
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Foreign Discovery Insights 2 Years After ZF Automotive
Although an Arizona federal court decision last month demonstrates that Section 1782 discovery may still be available to foreign arbitral parties, the scope of such discovery has narrowed greatly since the U.S. Supreme Court's 2022 decision in ZF Automotive, and there are a few potential trends for practitioners to follow, say attorneys at Venable.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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Rare Robinson-Patman Ruling Exhibits Key Antitrust Risk
A rare federal court decision under the Robinson-Patman Act, which prohibits certain kinds of price discrimination, highlights the antitrust risks faced by certain suppliers and is likely to be cited by future plaintiffs and enforcement officials calling for renewed scrutiny of pricing and discounting practices, say attorneys at Baker McKenzie.
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Series
Playing Chess Makes Me A Better Lawyer
There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.
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Beware Shifting Provisions In Middle-Market Loan Documents
In recent years, many credit facility provisions previously considered to be market standard have been negotiated, often turning in favor of borrowers, demanding renewed diligence from workout officers and restructuring counsel operating in the middle market, say attorneys at Crowell & Moring.
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Patent Lessons From 7 Federal Circuit Reversals In May
A look at recent cases where the Federal Circuit reversed or vacated decisions by the Patent Trial and Appeal Board or a federal district court provide guidance on how to succeed on appeal by clarifying the obviousness analysis of design patents, the finality of a judgment, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.