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Commercial Contracts
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June 17, 2024
College Students Say Mass. COVID Liability Shield Unjust
Three former students seeking tuition refunds are urging a Massachusetts court to rule on the constitutionality of a state law wiping away schools' liability for switching to online learning during the COVID-19 pandemic in 2020, a statute that has all but doomed their separate federal complaints.
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June 17, 2024
Nursing Home Co. Owes Fees On Staffing Deal, Recruiter Says
An international recruiter has accused the owners of nursing homes and assisted living communities in several states of failing to fork over fees for placing nurses and nursing assistants in their facilities, saying they owe over $3.4 million in outstanding fees.
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June 17, 2024
Justices To Decide If False Claims Act Applies To E-Rate
The U.S. Supreme Court on Monday agreed to review whether reimbursement requests made to the Federal Communications Commission's E-rate program for schools and libraries are "claims" under the False Claims Act.
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June 17, 2024
Justices Reject Dispute Over $3.1B South Korean Military Deal
The U.S. Supreme Court declined Monday to consider the scope of commercial activities in a case brought by a brokerage firm fighting the loss of a $3.1 billion South Korean military satellite deal.
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June 14, 2024
Frontier Wins $48.7M In Contract Breach Row After Bench Trial
A New York federal judge on Friday awarded Frontier Airlines nearly $48.7 million following a bench trial over a contract dispute with Irish aircraft leasing company AMCK Aviation Holdings, finding that AMCK had agreed to waive Frontier's payments while they negotiated a new agreement in the wake of COVID-19.
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June 14, 2024
Amazon Sued For Locking Up Audiobooks, Charging Up To 75%
A romance novelist challenged Amazon.com Inc.'s control of up to 80% of the U.S. audiobook market Thursday in a Washington federal court proposed class action accusing the retail giant of using exclusivity restrictions to lock in independent authors, extracting up to 75% of the sales price on Audible.
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June 14, 2024
'Cockamamie' Live Nation Arbitration Rules Perplex 9th Circ.
An attorney for Live Nation Entertainment Inc. argued to skeptical Ninth Circuit judges on Friday that a California district judge was wrong to remove ticket buyers' antitrust class claims from arbitration by finding the arbitration agreements unconscionable, with one judge calling the language in the agreements "drafting malpractice," "cockamamie" and "just nuts."
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June 14, 2024
Publishing Exec's Family Says Ohio Law Allowed His Ouster
The board of an Ohio-based media company have said state law empowered them to oust former CEO Allan Block from his family's namesake company and urged an Ohio state court to dismiss the suit he brought over the potential sale of the company that publishes newspapers in Toledo and Pittsburgh.
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June 14, 2024
Mistrial Declared In Florida Student Debtor Lawsuit
A Florida federal judge on Friday declared a mistrial in the lawsuit against a Boca Raton-based law firm accused of falsely promising to eliminate student loan debts in exchange for a fee following testimony from a former client.
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June 14, 2024
BP Unit Slapped With $300M Franchise Termination Suit
A trio of entities controlled by two self-proclaimed franchise veterans filed suit in Ohio federal court against a travel center operator acquired by BP in 2023, alleging the company terminated a franchise agreement without warning and caused at least $300 million in damages.
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June 14, 2024
FAA Probes Fake Titanium Docs From Boeing Supplier
The Federal Aviation Administration said Friday that it's investigating whether certain Boeing Co. jets were manufactured with titanium components that may have been sold to the plane maker with falsified authenticity documents.
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June 14, 2024
Off The Bench: Ex-Players Claim NIL, Loss For Trans Swimmer
In this week's Off The Bench, the 1983 men's college basketball champions want a piece of the loot the NCAA made off of their names, swimmer Lia Thomas loses in her bid to overturn an international trans athlete ban, and the House gets a bill through committee that would keep college athletes from becoming employees.
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June 14, 2024
Trucking Co. Whittles $11.5M Suit Over Stolen Cellphones
A North Carolina federal court pared an $11.5 million lawsuit brought by a cellphone dealer and its insurer after a truckload of devices was stolen, reasoning that a negligence claim was preempted.
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June 14, 2024
McDermott Says Financial Firm Owes $800K In Atty Fees
McDermott Will & Emery LLP says it is owed more than $800,000 in legal fees for representing a financial firm's employee in a U.S. Securities and Exchange Commission investigation and a lawsuit by his former employer.
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June 14, 2024
Florida Attorney, Philly Firm Settle Pay Dispute
A Florida-based attorney who ran a side business as a litigation fee expert while also working for a Philadelphia-based personal injury law firm has settled her allegations that the firm stiffed her on a referral fee.
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June 14, 2024
Daimler Truck Unit Says Mexican Supply Slowdown Cost $18M
A Daimler Truck subsidiary claimed in a lawsuit filed in Michigan federal court that a supplier's failure to keep up with production volumes has forced the diesel-engine manufacturer to stall its own production and lose more than $18 million.
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June 14, 2024
Calif. Software Co. Hits UnitedLex With Copyright Suit
California-based technology company Scalr Inc. has filed a copyright infringement lawsuit against data and professional services company UnitedLex in federal court , accusing the Kansas-based company of continuing to use its infrastructure software after its contract expired on Dec. 31.
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June 14, 2024
NC AG Wants Counterclaims Canned In Hospital Contract Suit
North Carolina's attorney general has sought to dodge counterclaims in a suit accusing a for-profit health network of reneging on promises it made when it bought an Asheville hospital, saying he should be immune and the claims are otherwise redundant.
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June 14, 2024
4 Big ERISA Decisions From The 1st Half Of 2024
A California federal court allowed a novel type of 401(k) mismanagement suit to advance to discovery, the Ninth Circuit elaborated on the pleading standard for mental health parity claims, and workers beat back an attempt to force their federal benefits suit into arbitration at the Second Circuit. Here, attorneys discuss four consequential ERISA decisions in 2024's first half.
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June 14, 2024
Real Estate Broker Claims Lewis Brisbois Breached Deal
A real estate broker who had exclusive rights to represent Lewis Brisbois Bisgaard & Smith LLP has slammed the firm with a breach of contract suit in California state court, alleging its abrupt termination of their deal will cost him millions in commissions.
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June 14, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen toy company Jellycat hit supermarket Aldi with an intellectual property claim, AIG start proceedings against firefighting foam company Angus International Safety Group, and the Solicitors Regulation Authority file a legal claim against the Post Office amid the ongoing Horizon IT scandal. Here, Law360 looks at these and other new claims in the U.K.
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June 13, 2024
Alston & Bird Wins Bid To Arbitrate COVID Vax Claims
Alston & Bird LLP can arbitrate a former aide's allegations that she was fired after refusing to get the COVID-19 vaccine, a Georgia federal judge ruled Thursday, putting the litigation on ice pending the outcome of arbitration.
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June 13, 2024
Equipment Maker Looks To Chill Ice Creamery's Use Of Its IP
A company that holds a patent for making ice cream using cryogenics has accused a Florida franchisor of falsely claiming to operate under a patent, saying in Washington federal court that the dessert purveyor has even been charging franchisees an "intellectual property fee."
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June 13, 2024
Lil Uzi Vert Owes Production Co. Over $500K, Suit Says
A California-based music touring company has accused rapper Lil Uzi Vert of stiffing the company of more than half a million dollars in unpaid fees for designing and producing the musician's concerts, according to a Georgia federal lawsuit filed Thursday.
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June 13, 2024
Subway Can't Nix Arb. Award To Family Of Murdered Worker
A Texas appellate panel on Wednesday declined to vacate an arbitration award to the family of a woman killed while working at Subway after rejecting Subway's argument the neutral arbitrator's Facebook posts complaining about State Farm and its attorneys are evidence of bias, finding neither are involved in the underlying case in any way.
Expert Analysis
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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SEC Fines Mean Cos. Should Review Anti-Whistleblower Docs
The Securities and Exchange Commission’s expanding focus on violations of whistleblower protection laws — as seen in recent settlements where company contracts forbade workers from reporting securities misconduct — means companies should review their employment and separation agreements for language that may discourage reporting, says Caroline Henry at Maynard Nexsen.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Del. Dispatch: Refining M&A Terms After Twitter Investor Suit
The Delaware Court of Chancery's recent decision in Crispo v. Musk — invalidating a merger agreement provision that has been commonly used to disincentivize buyers from wrongful merger termination — should cause target companies to consider new approaches to ensure the payment of lost premium damages, say attorneys at Fried Frank.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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Key Shifts In EU, UK Emissions Credits: Challenges For Cos.
An upcoming deadline to apply for free carbon dioxide emissions allowances in the European Union, and a reduction in the supply of similar allowances in the U.K., are likely to increase competition for allowances, and cause production, supply chain and contract issues for companies, say attorneys at Orrick.
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Earnout Contract Considerations After NC Good Faith Ruling
The North Carolina Supreme Court's recent Value Health Solutions v. Pharmaceutical Research decision, holding the implied covenant of good faith and fair dealing did not apply in an earnout dispute related to an asset sale, demonstrates the need for practitioners to pay careful attention to milestone concepts in M&A transactions, says Benjamin Hicks at Wagner Hicks.
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Takeaways From Iran Missile Procurement Advisory
Companies should familiarize themselves with the entities and practices highlighted in the recent multiagency Iran Ballistic Missile Procurement Advisory, to avoid falling prey to deceptive practices that help bad actors evade sanctions, say attorneys at DLA Piper.
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7 NIL Considerations For Brand Deals With Student-Athletes
While the constantly changing laws, rules and regulations for name, image and likeness in collegiate athletics are difficult to navigate, the benefits of a brand's successful NIL marketing campaign can outweigh the challenge of traversing this complex framework, say attorneys at Arnold & Porter.
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M&A Ruling Buoys Loss Calculation Method, R&W Insurance
The recent Southern District of New York decision in Taylor Precision Products v. Larimer affirms the use of EBITDA as a basis to quantify loss, highlighting the potential shortcomings of a traditional seller indemnity compared to representation and warranty insurance, say Mark Schwartz at Lockton, and William O’Neil and Gretchen Scavo at Winston & Strawn.
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How Justices Could Rule On A Key Copyright Statute
Attorneys at Manatt discuss how the U.S. Supreme Court may choose to address a fundamental accrual issue in Warner Chappell Music v. Nealy, which precedents the court may look to in analyzing the issue and the challenges copyright claimants may face going forward.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Issues That Can Arise When Tech Founders Leave CEO Role
More founders of venture-backed technology companies are transitioning out of the CEO role earlier than before, which can lead to unanticipated consequences if parties haven't carefully reviewed the company's certificate of incorporation, stockholders' agreements and the founder's employment agreement, say Alex Leibowitz and Megan Monson at Lowenstein Sandler.