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Commercial Contracts
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January 14, 2025
Chancery Hits Co. With $2.9M Atty Fee Bill As Sanction
A California medical device molding company that sought millions from a merger partner for breaches of contract in Delaware's Court of Chancery came away Tuesday with awards of $104,000 for its claims and $2.9 million in attorney fees as a sanction for contempt and spoliation by Symbient Product Development LLC founder Scott Castanon.
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January 14, 2025
Crypto Co.'s Lax Compliance Enabled Hackers, Suit Says
A proposed class action in California federal court accused digital asset exchange OKX of flouting U.S. laws and allowing criminals to launder stolen funds through its platform, including $725,000 worth of crypto looted from the crypto investor leading the suit.
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January 14, 2025
Influencer Says Capital One Steals Link Commissions
An online content creator has filed a proposed class action against Capital One over an alleged theft of commissions she says are rightfully owed to those responsible for connecting shoppers with products.
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January 14, 2025
NY Appeals Court OKs Arbitration Stay In $60M Hotel Fight
A New York appeals court has affirmed a lower court order pausing an arbitration initiated by a hotel co-owner in a $60 million dispute with another co-owner over the purported mismanagement of eight hotels nationwide.
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January 14, 2025
Dispute Over Eli Lilly Weight Loss Drug Reignited
Compounding pharmacies have reignited a suit against the U.S. Food and Drug Administration over the removal of a lucrative weight loss drug from the shortage list, with a Texas federal judge ordering both sides to turn in briefing on injunctive relief during a Tuesday hearing.
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January 14, 2025
Resort Developer Asks To Wind Up Chinese Co. In Bahamas
The developer of the Baha Mar resort in the Bahamas filed a petition Tuesday to liquidate a Chinese-owned construction firm that was hit with a $1.6 billion judgment last year by a New York court over its fraud tied to the construction of the resort project.
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January 14, 2025
Mercedes Urges 6th Circ. Redo Of Fire Coverage Ruling
The research group for Mercedes-Benz North America has told the Sixth Circuit it should not have to reimburse the insurer of an Ann Arbor, Michigan, property it rented for a fire it inadvertently set, saying a clause in its lease prevents subrogation.
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January 14, 2025
Wynne Transportation Can Tap Some Of $6M DIP In Ch. 11
A Delaware bankruptcy judge said Tuesday she will allow transportation service provider Wynne Transportation to borrow $2 million in initial debtor-in-possession financing on an interim basis, clearing the way to fund a Chapter 11 case the company launched in the wake of a nearly $33 million arbitration judgment.
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January 13, 2025
CFPB Eyes Rule To Rein In 'Forced' Financial Contract Terms
The Consumer Financial Protection Bureau on Monday floated a new rule that calls for banning financial companies from using contractual fine print to limit consumers' legal rights or restrict their free expression.
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January 13, 2025
Fed. Circ. Told Google Making Up 'New Rules Of Evidence'
A smart-home energy startup says Google and its supporters are trying to use a Federal Circuit appeal in a $20 million patent case to "craft entirely new rules of evidence out of whole cloth."
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January 13, 2025
Insurer Drops Dispute Over Private Equity Firm's Deals
An excess insurer agreed Monday to drop its Massachusetts federal suit seeking to avoid coverage of two settlements made by its insured, the private equity firm Advent International, over supposed wrongful acts the company committed related to the sale of two portfolio companies to two different buyers.
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January 13, 2025
Blue Cross Can't Skirt NC Hospital's Defamation Claims
A local hospital can pursue some of its defamation claims against Blue Cross and Blue Shield of North Carolina in a suit alleging the health insurer wrongly denied millions of dollars in reimbursements and falsely accused the facility of fraud, a federal judge ruled Monday.
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January 13, 2025
Justices Seek SG Input On Private Investor Fight
The U.S. Supreme Court on Monday asked for the U.S. solicitor general's input on whether securities laws governing investment funds allow for a private right of action, as the high court considered weighing in on a fight between private capital investors and investment funds.
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January 13, 2025
CFPB Can't Get $43M Fine From Telemarketing Debt Co. Yet
An Illinois federal judge Friday waited to order the owner of a defunct debt company to pay $43 million for misrepresenting to customers they could eliminate their student loans, pointing to a U.S. Supreme Court decision holding the accused has a right to a jury trial when financial penalties are on the line.
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January 13, 2025
Infowars Bidder Raises Offer As Attys Consider Auction
A failed bidder for conspiracy-monger Alex Jones' Infowars has more than doubled the amount it would pay to acquire the website, and the parent company of satirical news site The Onion is preparing to submit its own revised bid, counsel for the trustee in Jones' Chapter 7 case said at a hearing in Texas bankruptcy court Monday.
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January 13, 2025
Contractor Drops Mich. Supreme Court 'Fees For Fees' Appeal
A general contractor has moved to dismiss its Michigan Supreme Court appeal of an attorney-fee award that was slashed because the contractor was found responsible for dragging out litigation with a road agency after receiving the public records it sued the agency to obtain.
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January 13, 2025
Ga. Waste Authority Sues To Block County's Audit Attempt
A Georgia county's solid waste authority, whose finances came under scrutiny from the Federal Bureau of Investigation last year, has sued its county's government to block an effort by the county to force inspections and audits of its waste facilities.
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January 13, 2025
Attys Seek $4.4M In Fees For Gas Well Plugging Settlement
Attorneys from Bailey & Glasser LLP and Appalachian Mountain Advocates asked a West Virginia federal court for $4.4 million in fees, in a settlement that will require Diversified Energy Co. to more than quadruple its plans for plugging inactive oil and gas wells it had obtained from EQT in six states.
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January 13, 2025
Cannabis Co. Again Seeks Dismissal Of Finder's Fee Suit
The Cannabist Co. Holdings Inc. is asking a New York federal court to once again throw out a suit from an associate alleging he is owed $800,000 for facilitating an investment, saying New York law bars oral finder's fee contracts and the claims are still blocked by the statute of limitations.
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January 13, 2025
Wynne Transportation Files Ch. 11 After $32M Arbitration Loss
Transportation services company Wynne Transportation Holdings LLC filed for Chapter 11 protection in Delaware after an arbitrator said it must pay a former subcontractor $32.8 million because it severed their partnership after the state of Texas required it to bus migrants to Democratic-controlled areas.
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January 13, 2025
Justices Won't Hear Auto Parts Co.'s ERISA Arbitration Push
The U.S. Supreme Court declined Monday to review the Sixth Circuit's refusal to force arbitration of a suit accusing an auto parts company of packing its employee retirement plan with subpar investment options.
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January 13, 2025
High Court Won't Scrutinize Huge Class Of Meta Advertisers
The U.S. Supreme Court declined Monday to assess the certification of an enormous class of businesses that social media colossus Meta Platforms allegedly defrauded by inflating the reach of Facebook and Instagram advertisements, upping the odds of a major payout in the closely watched case.
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January 10, 2025
Feds Back Musk's Microsoft-OpenAI Board Overlap Concerns
The U.S. Department of Justice and Federal Trade Commission weighed in Friday on Elon Musk's California federal lawsuit against OpenAI, arguing that the artificial intelligence research organization and its co-defendant Microsoft can't fight claims of improper board overlap just by saying the overlap has ended.
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January 10, 2025
X Fights Finding Severance Row Contract Claims Can Survive
X Corp. and Elon Musk squared off with ex-Twitter workers in Delaware federal court, filing dueling briefs that took opposing stances over whether a district judge should adopt a recommendation to keep alive some breach-of-contract allegations in the workers' proposed class action claiming they were cheated out of severance benefits.
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January 10, 2025
Texas High Court Flips Course To Hear Boeing Back Pay Suit
The Texas Supreme Court changed course Friday in a case over the Southwest Airlines Pilots Association's attempts to recover lost wages from The Boeing Co. after the Federal Aviation Administration grounded Boeing's 737 Max plane in 2019, granting a motion for rehearing.
Expert Analysis
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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7 Pitfalls To Watch In Tech Referral Fee Programs
The recent attempt by FluidStack to recover $10 million in referral fees allegedly promised by software vendor Denvr Dataworks should alert potential participants in so-called partnership programs to seven signs that a proposed technology referral agreement may not equally benefit all sides, says Chris Wlach at Huge Inc.
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Takeaways From 2024's Emerging IP Licensing Trends
Themes in intellectual property licensing from the past year – including artificial intelligence; risk management; and name, image and likeness rights – highlight key considerations for navigating an evolving landscape, say attorneys at Ballard Spahr.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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How The UPC, ITC Complement Each Other In Patent Law
Attorneys at Ropes & Gray discuss the similarities and differences between the Unified Patent Court and the International Trade Commission, as well as recent matters litigated in both venues and why parties choose to file at these forums.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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The 6 Most Significant FCRA Litigation Developments Of 2024
From a key sovereign immunity decision at the U.S. Supreme Court to a ruling on creditworthiness out of the Seventh Circuit, several important Fair Credit Reporting Act cases wound their way through the courts in 2024, each offering takeaways for both plaintiffs and defendants, say attorneys at Shipkevich.
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An Associate's Guide To Career Development In 2025
As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.
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NLRB Likely To Fill Vacuum After NMB Jurisdiction Ruling
The National Mediation Board's recent ruling in Swissport Cargo Services LP abandoned decades of precedent by concluding the Railway Labor Act doesn’t apply to airline service providers, likely leading the National Labor Relations Board to assert its jurisdiction instead and potentially causing more operational disruptions and labor strife, say attorneys at Morgan Lewis.
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Series
Fixing Up Cars Makes Me A Better Lawyer
From problem-solving to patience and adaptability to organization, the skills developed working under the hood of a car directly translate to being a more effective lawyer, says Christopher Mdeway at Kaufman Dolowich.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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Considering European-Style Lockboxes For US M&A In 2025
The lockbox mechanism, commonly used in Europe, offers an attractive alternative to the postclosing price adjustments that dominate U.S. merger and acquisition transactions in private equity, particularly with the market's demand for transparency likely to remain steadfast under Trump, says Laurent Campo at Potomac Law.
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Using Contracts As Evidence Of Trade Secret Protection
Recent federal and U.S. International Trade Commission decisions demonstrate an interesting trend of judges recognizing that contracts and confidentiality provisions can serve as important evidence of the reasonable secrecy measures companies must take to prove the existence of protected trade secrets, say attorneys at Finnegan.
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When US Privilege Law Applies To Docs Made Outside The US
As globalization manifests itself in disputes over foreign-created documents, a California federal court’s recent trademark decision illustrates nuances of both U.S. privilege frameworks and foreign evidentiary protections that attorneys must increasingly bear in mind, say attorneys at Hunton.
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Why Asset-Based Loans May Suit PE Companies In 2025
As the prospect of higher tariffs and interest rates expands the need for liquidity, private equity investors would do well to explore the timing and provisions of asset-based loans offered in the burgeoning credit-fund sector, say attorneys at McDermott.