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California
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August 22, 2024
Debtors Claim $3M Award Is Tainted By Fraud In China
Two Chinese debtors said to owe nearly $3 million under an arbitral award issued to an investment company in the People's Republic of China have asked a California federal court to vacate an order enforcing the award earlier this year, saying the company participated in criminal fraud.
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August 22, 2024
Calif. Panel Backs Arbitration Denial In Staffing Co. Wage Suit
A California state appeals court refused to ship to arbitration a worker's lawsuit accusing a staffing agency of unlawfully miscalculating his sick leave wages, saying the arbitration pact he signed promised that all Private Attorneys General Act claims will be litigated in court.
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August 22, 2024
Comedians Duel With Pandora For Joke Copyright Victories
A group of comedians and companies that licensed their routines has urged a California federal judge to grant it partial summary judgment against Pandora Media LLC for copyright infringement on the same day that the company argued it should come out on top because it has implied "pass-through licenses" to broadcast those routines.
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August 22, 2024
California Fires Back At Red State Attacks On Climate Torts
California and a contingent of blue states told the U.S. Supreme Court that their climate change torts against fossil fuel companies are on solid legal ground and that an effort by Alabama and other red states to undercut them must be rejected.
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August 22, 2024
Calif. Atty Can't Beat Sanctions In Geragos Malpractice Suit
A California state appeals court on Wednesday affirmed $23,000 in sanctions for discovery violations on the part of a lawyer representing clients in a malpractice case against Hollywood litigator Mark Geragos.
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August 22, 2024
IT Staffing Co. Can't Push Unpaid OT Suit Into Arbitration
A California federal judge refused to send to arbitration a class action accusing a tech staffing company of underpaying recruiters by misclassifying them as overtime-exempt, saying the company's establishment of the arbitration pact two years into the litigation was misleading and unfair.
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August 22, 2024
Tom Girardi Takes The Stand In His Criminal Fraud Trial
Disbarred attorney Tom Girardi took the stand Thursday in his California federal fraud trial and denied stealing from any of his clients, while also showing a strong grasp of past events and people but claiming to have no memory of the trial's witnesses and key moments, or to even know his own lawyer's name.
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August 22, 2024
Mike Lynch's Path From Tech Founder To DOJ Target
Friends and colleagues paid tribute to Mike Lynch following his death in a yachting accident on Thursday, hailing the British tech entrepreneur for the decades he spent furthering the industry despite the legal troubles that threatened to overshadow his career.
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August 22, 2024
'Beloved By Everyone': Attys Recall Clifford Chance's Morvillo
Clifford Chance LLP partner Christopher Morvillo, who died this week after a luxury yacht he was on sank off the coast of Sicily, is being remembered not only as a lion of the legal community but also as an "extraordinary human being" and a "Renaissance man" who was devoted to his family.
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August 22, 2024
Mike Lynch's Body Recovered From Yacht Wreck
Mike Lynch, founder of technology company Autonomy, died when a yacht he was aboard sank off the Sicilian coast, his family confirmed Friday, after a trip the entrepreneur had reportedly chartered with his legal team to celebrate their victory in a U.S. fraud case.
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August 21, 2024
Hunter Biden Can't Link Trauma, Drug Abuse To Tax Charges
Hunter Biden can't tell jurors in his criminal tax trial that traumatic events like his brother's death caused his addiction, which led to a diminished mental capacity and his failure to pay taxes, a California federal judge said Wednesday, noting the information was irrelevant and not backed by expert opinion.
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August 21, 2024
Girardi Faked Dementia Symptoms, Neurologist Testifies
A neurologist with Vanderbilt University testified Wednesday in Tom Girardi's criminal fraud trial in California federal court that the disbarred attorney was likely exaggerating his cognitive problems in late 2020 just as his law firm imploded into bankruptcy and his legal problems mounted because he believed it would be "beneficial."
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August 21, 2024
Tech Cos. Duck Proposed Calif. Bill Via News Funding Deal
Major tech companies, including Google, agreed Wednesday to pay roughly $250 million into a fund that proponents say would support newsrooms across California in a deal that avoids a proposed regulation that would've forced Big Tech to pay the state's media organizations for distributing news content.
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August 21, 2024
9th Circ. Upholds Toss Of Suit Over Car Insurer's Data Breach
The Ninth Circuit on Wednesday refused to revive a proposed class action accusing auto insurance provider Noblr Reciprocal Exchange of failing to safeguard driver's license numbers exposed in a 2021 data breach, finding that the plaintiffs had failed to credibly allege that their data had actually been stolen.
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August 21, 2024
Union Health Plan Trustees Can't Avoid Fee Claim, Judge Says
Trustees of a UNITE HERE health plan can't topple a group of Southern California workers' claims that they are facing higher administrative expenses compared to another group of workers in Las Vegas, an Illinois federal court ruled Wednesday.
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August 21, 2024
9th Circ. Lets Atty Fight Against $8M Malicious Prosecution
A Nevada attorney may take to the federal court to challenge an Arizona state court's civil judgment finding him liable for malicious prosecution, the Ninth Circuit determined Wednesday, finding the federal district court was wrong to toss his claims on the grounds they were barred by jurisdictional precedent established in the Rooker-Feldman doctrine.
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August 21, 2024
Pornhub Says Data Privacy Suit Must Be Arbitrated
Adult entertainment website Pornhub and its Cyprus-based operator are looking to force a proposed data privacy class action into arbitration, telling a California court on Tuesday that a "strict" state law deadline that they missed to pay certain filing fees is preempted by federal arbitration law.
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August 21, 2024
Insurers Escape Calif. Starbucks Drive-Thru Easement Row
A California appeals court affirmed a lower court decision, finding commercial property insurers didn't have to defend an owner who allegedly tricked one tenant into signing an easement agreement for a parking lot, neglecting to mention it would be used by a Starbucks drive-thru.
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August 21, 2024
High Court Told Nvidia Case Could Damage Crypto Industry
The Digital Chamber is warning that a U.S. Supreme Court dispute between chipmaker Nvidia Corp. and some of its investors poses a "grave risk" to the entire cryptocurrency industry by threatening to expose it to costly litigation should the justices uphold a lower court ruling allowing the lawsuit to move forward.
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August 21, 2024
Western Asset Exec Takes Leave Of Absence Amid SEC Probe
Western Asset Management's co-chief investment officer, Ken Leech, has taken an immediate leave of absence from the global fixed-income manager after receiving a so-called Wells notice from the U.S. Securities and Exchange Commission and as the company faces parallel government investigations.
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August 21, 2024
USPTO Beats Atty's FOIA Suit Over Ethics Probe
A California trademark lawyer who says he has been facing a disciplinary matter at the U.S. Patent and Trademark Office over whether his associates let their assistants sign for them on trademark applications could not use a Freedom of Information Act lawsuit to get more information from the agency about the origins of that accusation.
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August 21, 2024
NC Biz Court Bulletin: Wrinkle In Textile Family's $17M Fight
The fate of a $17 million trust battled over by its trustees and Atrium Health, as well as attorney fees in a $1.1 million data breach settlement were cemented by the North Carolina Business Court in the first half of August. In case you missed those and others, here are the highlights.
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August 21, 2024
9th Circ. Doubts Idaho Trans Health Ban Doesn't Discriminate
The Ninth Circuit appeared reluctant Wednesday to give the state of Idaho a green light for a prohibition on gender dysphoria treatment for minors, with judges vocally skeptical of the state's argument that the policy didn't discriminate based on sex.
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August 21, 2024
Justices Urged To Take Up 9th Circ. $1.3B Award Suit
The corporate arm of India's space agency is trying to downplay how big of a circuit split the Ninth Circuit created when it ruled it had no jurisdiction over a $1.3 billion arbitral award, but the company's attempts are "unconvincing," an Indian satellite telecom has told the U.S. Supreme Court.
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August 21, 2024
Tribe Backs $2.8M Casino Debt Suit Against Ex-Studio Mogul
A former Hollywood heavyweight who lost $5 million to a Connecticut casino and failed to make full payments to cover his losses misunderstood the relevant law when he asked a state court to strike a breach of contract claim against him, the tribal gambling authority said.
Expert Analysis
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3 Policyholder Tips After Calif. Ruling Denying D&O Coverage
A California decision from June, Practice Fusion v. Freedom Specialty Insurance, denying a company's claim seeking reimbursement under a directors and officers insurance policy for its settlement with the Justice Department, highlights the importance of coordinating coverage for all operational risks and the danger of broad exclusionary policy language, says Geoffrey Fehling at Hunton.
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Loss Causation Ruling Departs From Usual Securities Cases
A California federal court recently dismissed Ramos v. Comerica, finding that the allegations failed to establish loss causation, but the reasoning is in tension with the pleading-stage approaches generally followed by both courts and economists in securities fraud litigation, say Jesse Jensen and Aasiya Glover at Bernstein Litowitz.
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PAGA Reforms Encourage Proactive Employer Compliance
Recently enacted reforms to California's Private Attorneys General Act should make litigation under the law less burdensome for employers, presenting a valuable opportunity to streamline compliance and reduce litigation risks by proactively addressing many of the issues that have historically attracted PAGA claims, say attorneys at Mintz.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Synapse Bankruptcy Has Ripple Effects For Fintech Industry
Synapse Financial Technologies’ recent bankruptcy filing marks a significant moment in the fintech industry's evolution, highlighting that stringent compliance and risk management in fintech partnerships are essential to mitigate risk and protect consumers, say Joann Needleman and Ryan Blumberg at Clark Hill.
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California Adds A Novel Twist To State Suits Against Big Oil
California’s suit against Exxon Mobil Corp., one of several state suits that seek to hold oil and gas companies accountable for climate-related harms, is unique both in the magnitude of the alleged claims and its use of a consumer protection statute to seek disgorgement of industry profits, says Julia Stein at UCLA School of Law.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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Why Justices Should Rule On FAA's Commerce Exception
The U.S. Supreme Court should review the Ninth Circuit's Ortiz v. Randstad decision, to clarify whether involvement in interstate commerce exempts workers from the Federal Arbitration Act, a crucial question given employers' and employees' strong competing interests in arbitration and litigation, says Collin Williams at New Era.
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Tricky Venue Issues Persist In Fortenberry Prosecution Redo
Former Rep. Jeff Fortenberry was recently indicted for a second time after the Ninth Circuit tossed his previous conviction for improper venue, but the case, now pending in the District of Columbia, continues to illustrate the complexities of proper venue in "false statement scheme" prosecutions, says Kevin Coleman at Covington.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.
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Opinion
'Trump Too Small' Ruling Overlooks TM Registration Issues
The U.S. Supreme Court's decision last month in Vidal v. Elster, which concluded that “Trump Too Small” cannot be a registered trademark as it violates a federal prohibition, fails to consider modern-day, real-world implications for trademark owners who are denied access to federal registration, say Tiffany Gehrke and Alexa Spitz at Marshall Gerstein.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.