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September 05, 2024
Labor, Industry Agree: Mich. Wage Ruling Should Stand
Hospitality groups and workers' rights campaigners have both slammed Michigan regulators' request that the state supreme court clarify its recent minimum wage ruling, the groups coming to opposite conclusions about the state's intent but agreeing that the justices should deny the request and let the ruling speak for itself.
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September 05, 2024
Law Firms Appeal Atty Fee Denial In Opioid Settlements
Two law firms, Goldstein & Russell PC and Kelley & Ferraro LLP, have claimed in an appeal to the Sixth Circuit that they were improperly shut out of the $2.13 billion attorney fee pool created by recent national opioid settlements with major pharmaceutical companies and pharmacy chains.
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September 05, 2024
Wash. Justices Uphold State's Wastewater Nitrogen Limits
The Washington Supreme Court overturned a win for the city of Tacoma and other municipal wastewater treatment plant operators challenging state caps on nitrogen discharges, finding Thursday that the limits state regulators added to its permits don't qualify as a rule under the Administrative Procedure Act.
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September 05, 2024
Referral Model Means No Tax Exemption For Texas Health Co.
The commissioner of the U.S. Internal Revenue Service told a Fifth Circuit panel Thursday that the U.S. Tax Court got it right when it barred a Texas company that coordinates healthcare for chronically ill patients from claiming tax-exempt status, telling the court that secondary social welfare effects of the company's business model aren't enough to establish tax-exempt status.
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September 05, 2024
9th Circ. Says Court 'Lost The Letter' In ERISA Coverage Row
A California federal court "lost the letter" in remanded proceedings over allegations that United Behavioral Health improperly denied nearly 70,000 claims for mental health coverage, the Ninth Circuit has said in a new memorandum.
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September 05, 2024
Panel Finds Colo. Attys Can't Poach From Current Employers
A Colorado Court of Appeals panel on Thursday upheld a $4,000 verdict and $1.2 million in fee awards against an attorney who violated an employment contract when she tried to lure colleagues away from a prominent regional personal injury firm, finding the firm's contract was valid and enforceable.
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September 05, 2024
Unconstitutionality Of Transparency Act Clear, 11th Circ. Told
A small business group and one of its members have told the Eleventh Circuit that an Alabama federal judge correctly ruled that the Corporate Transparency Act is unconstitutional, so there was no need for them to demonstrate that the law fails to pass constitutional muster.
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September 05, 2024
Advisory Opinion Backs Italian Case Against Android Auto
Italian antitrust authorities got a boost Thursday defending a more than €100 million fine ($113.3 million at current exchange rates) against Google and an order requiring the company to further open up its Android Auto app that integrates with car infotainment systems, thanks to an advisory opinion submitted to Europe's highest court.
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September 05, 2024
LA Developer Beats RICO Suit Over CEQA Fight At 9th Circ.
The Ninth Circuit affirmed Thursday a decision tossing a Hollywood hotel developer's $100 million racketeering suit against rival hotel developers, rejecting the plaintiff developer's allegations that its competitors had pursued "objectively baseless" sham California Environmental Quality Act litigation to extort the firm.
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September 05, 2024
Asbestos Claimants Want A Say In 4th Circ. 'Two-Step' Appeal
Asbestos cancer survivors and the estates of victims with pending claims against Aldrich Pump LLC, DBMP LLC and Murray Boiler LLC have asked the Fourth Circuit's permission to file an amicus brief in an appeal centered on the separate Chapter 11 case of Georgia-Pacific unit Bestwall, saying they had been prevented from pursuing relief while Aldrich, DBMP and Murray pursue bankruptcy.
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September 05, 2024
Liberty Global Urges 10th Circ. To Grant $248M Tax Credit
The U.S. Tax Court improperly applied an Internal Revenue Code provision to some of the $2.8 billion gain from Liberty Global's sale of a Japanese entity, the telecommunications company said in urging the Tenth Circuit to overturn the resulting rejection of a $248 million tax credit.
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September 05, 2024
3rd Circ. Relieves Insurer Of Additional UIM Coverage
The Third Circuit reversed an early win a lower court handed to a couple whose son suffered serious injuries in a motorized dirt bike accident, finding that the couple's insurer needn't pay an additional $250,000 under another household policy because of the policy's household vehicle exclusion.
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September 05, 2024
Split 3rd Circ. Won't Rule Out Pa. As Wiretapping Suit Forum
The Third Circuit ruled in a precedential opinion Thursday that a lower court must reconsider if Pennsylvania consumers can sue for privacy violations caused by session replay software, reviving a portion of consolidated wiretapping class claims over activity tracking on websites for companies including Papa John's and Mattress Firm.
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September 05, 2024
Dodge Ram Drivers Urge 6th Circ. To Revive Emissions Claims
Dodge Ram drivers pressed the Sixth Circuit to revive their proposed class action alleging Fiat Chrysler and engine manufacturer Cummins deceptively marketed their trucks as being more environmentally friendly than they actually were, saying a Michigan federal judge incorrectly found that their claims conflicted with federal law.
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September 05, 2024
DA Pans Trump Maneuvering On Hush Money Case Removal
Attorneys in the office of Manhattan District Attorney Alvin Bragg told the Second Circuit in a letter Thursday that Donald Trump is mischaracterizing a federal judge's recent order to further his baseless bid to move his hush money case to U.S. district court.
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September 05, 2024
Ga. Panel Affirms Tax Assessors' Partial Win In Valuation Fight
The Georgia Court of Appeals has affirmed a trial court's order granting partial summary judgment to the Lowndes County Board of Tax Assessors in a dispute concerning the $5.3 million ad valorem tax assessment on a rent-restricted apartment complex.
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September 05, 2024
7th Circ. Doubts JPMorgan Traders' Spoofing Appeal
The Seventh Circuit seemed skeptical Thursday about three former JPMorgan traders' assertion that evidentiary issues surrounding their underlying spoofing trials warrant unwinding their convictions for manipulating the market with fake orders for precious metals.
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September 05, 2024
Placid Oil Tells 5th Circ. It's Clear Of Contamination Claims
Placid Oil told a Fifth Circuit panel that previous bankruptcy proceedings cleared it of contamination claims on a Louisiana property, saying during oral arguments Thursday that language in the contract calling it a party to the surface lease agreement didn't count as an assignment.
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September 05, 2024
'Regrettable Mistake' Can't Bar Subrogation Bid, Insurer Says
An insurer for a Hardee's restaurant urged a North Carolina state appeals court to revive its subrogation action over a December 2019 fire, after it said its counsel made a "regrettable mistake" in naming a related brokerage as the plaintiff rather than the insurer itself.
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September 05, 2024
5th Circ. Rejects Overtime For Highly Paid Oil Rig Workers
A group of reamers for an oil and gas company aren't entitled to overtime under federal law because they are paid an annual salary and performed exempt duties, a Fifth Circuit panel ruled, affirming a lower court's decision.
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September 05, 2024
EPA Asks To End Texas, Okla. Air Plan Fight Due To Lost Docs
The U.S. Environmental Protection Agency is asking the Fifth Circuit to vacate its challenged 2016 rule that partially disapproved regional haze plans created by Texas and Oklahoma and imposed a federal plan, having lost key records needed to justify its decisions.
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September 05, 2024
Norton, Quinn Emanuel Decry $600M Patent, Contempt Ruling
NortonLifeLock and Quinn Emanuel Urquhart & Sullivan LLP again urged the Federal Circuit to overturn a $600 million patent infringement verdict against the company that was in part based on the firm's being held in contempt, with both saying the holding has serious flaws.
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September 05, 2024
2nd Circ. Chilly To Mortgage-Backed Securities ERISA Suit
The Second Circuit appeared unlikely Thursday to revive a union pension fund's suit looking to hold Wells Fargo and Ocwen Financial Corp. liable for losses on mortgage-backed securities, with two judges signaling the risky loans the fund sued over might not be covered by federal benefits law.
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September 05, 2024
Calif. Firm Beats $9.5M Malpractice Loss Over Estate Work
A California state appeals court on Wednesday threw out a $9.5 million malpractice verdict against a Los Angeles-area lawyer and his firm over their handling of a noted burn surgeon's estate, holding that allowing the verdict and penalty to stand would be an 'intolerable burden' on the legal community.
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September 05, 2024
11th Circ. Revives White Miami-Dade Ex-Worker's Bias Suit
The Eleventh Circuit reinstated a white policy director's suit Thursday claiming he was canned by Miami-Dade County because of age and racial bias, ruling a trial court jumped the gun by tossing his case before he was given the chance to collect proof.
Expert Analysis
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What 7th Circ. Samsung Decision Means For Mass Arbitration
The Seventh Circuit's recent decision in Wallrich v. Samsung highlights the dilemma faced by mass arbitration filers in the face of nonpayment of arbitration fees by the defending party — but also suggests that there are risks for defendants in pursuing such a strategy, says Daniel Campbell at McDermott.
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Takeaways From Virginia's $2B Trade Secrets Verdict Reversal
The Virginia Court of Appeals' recent reversal of the $2 billion damages award in Pegasystems v. Appian underscores the claimant's burden to show damages causation and highlights how an evidentiary ruling could lead to reversible error, say John Lanham and Kamran Jamil at Morrison Foerster.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Employers Face Uncertainty After Calif. Justices' Slur Ruling
In Bailey v. San Francisco District Attorney's Office, the California Supreme Court recently ruled that a singular use of a racial slur may be sufficiently severe to support a hostile work environment claim, leaving employers to speculate about what sort of comments or conduct will meet this new standard going forward, says Stephanie Roeser at Manatt.
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How Corner Post Affects Enviro Laws' Statutes Of Limitations
The U.S. Supreme Court's recent ruling in Corner Post v. Federal Reserve Board has helped to alter the fundamental underpinnings of administrative law — and its plaintiff-centric approach may have implications for some specific environmental laws' statutes of limitations, say Chris Leason and Liam Martin at Gallagher and Kennedy.
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Jarkesy May Thwart Consumer Agencies' Civil Penalty Power
The U.S. Supreme Court's ruling in U.S. Securities and Exchange Commission v. Jarkesy not only implicates future SEC administrative adjudications, but those of other agencies that operate similarly — and may stymie regulators' efforts to levy civil monetary penalties in a range of consumer protection enforcement actions, say attorneys at Holland & Knight.
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Ohio's New Citation Rules Could Cure 'The Bluebook Blues'
The Ohio Supreme Court recently revised its writing manual to streamline citation format in legal briefs and opinions, deviating from Bluebook style, and encouraging lawyers and judges to draft cleaner documents that will give the substance of their legal arguments more persuasive power, say L. Bradfield Hughes and Chance Conaway at Porter Wright.
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9th Circ. Ruling Flags Work Harassment Risks Of Social Media
The recent Ninth Circuit ruling in Okonowsky v. Garland, holding an employer could be liable for a co-worker's harassing social media posts, highlights new challenges in technology-centered and remote workplaces, and underscores an employer's obligation to prevent hostile environments wherever their employees clock in, say Jennifer Lada and Phillip Schreiber at Holland & Knight.
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Trump's Best Hush Money Appeal Options Still Likely To Fail
The two strongest potential arguments former President Donald Trump could raise in appealing his New York hush money conviction seem promising at first, but precedent strongly suggests they will still ultimately fail — though, of course, Trump's unique position could lead to surprising results, says former New York Supreme Court Justice Ethan Greenberg, now at Anderson Kill.
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Tips For Tax Equity-Tax Credit Transfers That Pass IRS Muster
Although the Internal Revenue Service has increased its scrutiny of complex partnership structures, which must demonstrate their economic substance and business purpose, recent cases and IRS guidance together provide a reliable road map for creating legitimate tax equity structures, say Ian Boccaccio and Michael Messina at Ryan Tax.
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7th Circ. Ruling Sheds Light On Extraterritoriality In IP Law
A recent Seventh Circuit decision involving the Defend Trade Secrets Act, allowing for broader international application of trade secrets laws, highlights a difference in how trade secrets are treated compared to other areas of intellectual property law, say Armin Ghiam and Maria Montenegro-Bernardo at Hunton.
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Opinion
Texas Judges Ignored ERISA's Core To Stall Fiduciary Rule
Two recent rulings from Texas federal courts, which rely on a plainly wrong reading of the Employee Retirement Income Security Act to effectively strike a forthcoming rule that would impose functional fiduciary duties onto sellers of investment services, may expose financially unsophisticated 401(k) participants to peddlers of misleading advice, says Mark DeBofsky at DeBofsky Law.
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2nd Circ. Ruling Reaffirms Short-Swing Claims Have Standing
The Second Circuit's recent ruling in Packer v. Raging Capital reversing the dismissal of a shareholder's Section 16(b) derivative suit seeking to recover short-swing profits for lack of constitutional standing settles the uncertainty of the district court's decision, which could have undercut Congress' intent in crafting Section 16(b) in the first place, say attorneys at Simpson Thacher.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Insurance Lessons From 11th Circ. Ruling On Policy Grammar
The Eleventh Circuit's recent decision in ECB v. Chubb Insurance, holding that missing punctuation didn't change the clear meaning of a professional services policy, offers policyholder takeaways about the uncertainty that can arise when courts interpret insurance policy language based on obscure grammatical canons, say Hugh Lumpkin and Garrett Nemeroff at Reed Smith.