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Commercial Contracts
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August 15, 2024
Baha Mar Builder Blames Developer Debt As $1.5B Trial Wraps
Counsel for the Chinese state-owned construction firm that built the Bahamian luxury resort Baha Mar closed out a bench trial in New York state court on Thursday arguing that it was the resort developer's overleveraged debt, not delays in the building process, that led to $1.5 billion in losses.
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August 15, 2024
4th Circ. Won't Revive Interpreters' Unpaid Wages Suit
The Fourth Circuit declined Thursday to reinstate a lawsuit two Nepalese-English interpreters brought against a government contractor accusing it of failing to pay them overtime wages, saying the Maryland laws they sued under don't apply to their case because they worked in Afghanistan.
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August 15, 2024
Onni Capital Asks Calif. Court To Void $95M LA Tower Deal
Onni Capital LLC has sued Nexstar Media Group and an affiliate in California state court to recoup a $30 million deposit and to exit a purchase agreement for a commercial office building in Los Angeles, alleging it was misled by the seller.
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August 15, 2024
Del. Chancery OKs $175M Judgment Against Insys Founder
The convicted founder of drugmaker Insys has told Delaware's Chancery Court he agreed to accept a $175 million judgment as part of a settlement with the company's liquidation trust over his role in an opioid kickback scheme that drove the firm into bankruptcy.
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August 15, 2024
Ex-Mushroomhead Singer Sues Bandmate Over Royalties
The co-founder of metal band Mushroomhead has filed a copyright infringement and breach of contract suit in Ohio federal court accusing his fellow co-founder of failing to pay him royalties and income from tours and merchandise sales, and failing to rightfully attribute his ownership of many of the band's original musical works.
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August 15, 2024
Gas Co. Tells Chancery Texas Settlement Spikes Pipeline Duty
A settlement and Texas court's direction to vacate an earlier arbitration award has revived an Energy Transfer LP subsidiary's bid to scuttle a Delaware Court of Chancery order requiring it to build costly, high-pressure natural gas pipelines for free.
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August 15, 2024
Startup's Cannabis Payment Deal Dispute Can Move Ahead
An Illinois federal judge has preserved the bulk of a now-defunct cannabis payment startup's suit alleging Fidelity National Information Services drove it out of business by backing out of a partnership deal, saying that while there wasn't an enforceable contract, the startup sufficiently pled that FIS was misleading in its promises.
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August 15, 2024
Ga. Man Accused Of Trying To Steal $1.9M In COVID Funds
A Georgia man was indicted in a scheme to steal $1.9 million in pandemic relief money and accused of wire fraud, submitting fraudulent federal tax returns and stealing dozens of Social Security numbers, the U.S. Department of Justice announced Wednesday.
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August 15, 2024
Partners Stole Dairy Product Co.'s Trade Secrets, Suit Says
A dairy farm products company has filed a lawsuit in Massachusetts federal court claiming its manufacturing and distribution partners used its trade secrets to develop and sell a competing line of infection prevention offerings.
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August 15, 2024
DraftKings Looks To Wipe Out Suit Over Voided NBA Bets
DraftKings fired back at an aggrieved bettor suing the online sportsbook over voided NBA bets that allegedly cost him a $150,000 payday, telling an Indiana federal judge that its rules plainly allow for the cancelation of wagers offered with obviously incorrect odds.
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August 14, 2024
Fla. Gratuity Platform Alleges Toast Stole Trade Secrets
Gratuity Solutions LLC accused Boston-based Toast Inc. of misappropriating trade secrets in a lawsuit brought Wednesday in Florida federal court, alleging that executives from the point-of-sale software company stole confidential information after a failed bid to merge the two companies.
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August 14, 2024
J&J Vision Unit Sues Ex-Marketing Exec Over Move To Rival
Johnson & Johnson's vision unit sued a former marketing director on Tuesday, saying her move to a direct competitor is an "imminent threat of immediate, irreparable harm" and asking a New Jersey federal court to enforce her noncompete agreement and other post-employment obligations.
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August 14, 2024
Cannabis Fertilizer Co. Says Rival Stole IP For Fake THC Study
A company that sells fertilizer to commercial cannabis growers has claimed a competitor used its trademarks as part of an unsanctioned co-branding campaign and on THC lab testing reports that falsely advertise its products as less effective, according to a suit filed in Washington federal court.
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August 14, 2024
MLB Players Inc. Slams Pirates, Store Chain Over NIL Use
The Pittsburgh Pirates and a local convenience store chain are exploiting the names, images and likenesses of team players in marketing materials, according to a Pennsylvania federal lawsuit filed Wednesday by MLB Players Inc.
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August 14, 2024
BP Unit Can't Escape Truck Stop Suit, Developers Claim
Companies suing a BP subsidiary for terminating their truck stop franchise agreement and leaving them stuck with unrecoverable development costs hit back against its "shotgun approach" to have their suit seeking more than $300 million in damages thrown out, telling an Ohio federal judge that their complaint is grounded in compelling claims.
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August 14, 2024
NY Judge Tosses Noise Suit Against Queens Tennis Club
A New York state judge on Tuesday dismissed a Queens nonprofit's nuisance suit against The West Side Tennis Club, which was accused of being responsible for excessive noise coming from concerts held at its century-old outdoor stadium in the borough's Forest Hills neighborhood.
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August 14, 2024
Philly Art School Hit With Students' Suit Over Abrupt Closure
Two former students at the University of the Arts claimed the school's sudden shutdown in June was without proper heads-up or guidance, according to a potential class action in Pennsylvania federal court.
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August 14, 2024
Insurer Fights $29M Judgment Over Fatal Crash Coverage
An insurer urged a North Carolina state appeals court Wednesday to undo a nearly $29 million judgment in a lawsuit stemming from a claim for a fatal vehicle crash, citing a policy exclusion that barred coverage for injuries to fellow employees.
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August 14, 2024
Boeing Scraps Electric Jet Co.'s $72M Trade Secrets Trial Win
A Washington federal judge on Wednesday canceled a $72 million jury award against The Boeing Co. for misappropriating electric jet startup Zunum Aero Inc.'s trade secrets, finding Zunum offered "only vague and amorphous descriptions" of the trade secrets at trial.
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August 14, 2024
Cannabis Co. And Ex-Exec End Bad-Mouthing Dispute
A Colorado state judge has permanently dismissed a lawsuit in which a cannabis company and its former chief operating officer each accused the other of waging a smear campaign, after the parties agreed to end the litigation.
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August 14, 2024
Nursing Co. Exec Can't Split Up Fraud, Wage-Fixing Charges
A Nevada federal magistrate judge has struck two blows against a home healthcare staffing executive facing criminal charges of fixing nurses' wages and hiding that probe when selling the business for $12.5 million, as the judge refused to break up the allegations and recommended against dismissing the fraud counts.
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August 14, 2024
Ex-Allied Wallet Execs Plead Guilty In $150M Fraud Scheme
Two former executives of payment processing company Allied Wallet have admitted to their roles in a $150 million bank fraud conspiracy that tricked financial institutions into allowing otherwise restricted merchants to access the card payment networks of Visa, Mastercard, American Express and Discover.
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August 14, 2024
Insurer Off Hook For Jury Award In Construction Dispute
A commercial insurer does not have to indemnify a contractor found liable for multiple structural and other problems in a home he built, a Massachusetts intermediate appellate court concluded Wednesday in a case of first impression involving what is considered "property damage" in a construction dispute.
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August 14, 2024
NC Court Defers Ruling To Unseal Cadwalader Coverage Suit
The North Carolina Business Court on Monday did not outright reject a bid by a Lloyd's of London syndicate looking to unseal a complaint by Cadwalader Wickersham & Taft LLP seeking coverage for a November 2022 data breach, though the judge did admonish the syndicate for failing to consult with Cadwalader's counsel before filing the motion.
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August 14, 2024
Judge DQs Ex-Overstock CEO's Atty For Discovery Violations
A Washington, D.C., federal judge has granted Dominion Voting Systems' "extraordinary and rarely granted" disqualification bid over serious discovery violations by a lawyer defending Overstock.com CEO Patrick Byrne in a defamation lawsuit brought by the voting machine company.
Expert Analysis
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Perspectives
6 Practice Pointers For Pro Bono Immigration Practice
An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.
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Lessons From Country Singer's Personal Service Saga
Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.
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Inside Del. Determinations Of Specific Performance In M&A
Delaware M&A rulings, including several from the end of 2023, shed light on the facts that courts may consider when determining whether a party to a transaction is entitled to specific performance, say attorneys at White & Case and Odeko.
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9 Contractual Issues Tech Startups Should Be Wary Of
Technology startups often overlook relatively simple but crucial contracting steps that are essential to owning and protecting their intellectual property, and the consequences of this will almost always surface at some point, typically in connection with a key investment or other significant transaction involving the business, say attorneys at Mayer Brown.
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NJ Ruling May Widen Plaintiff Opportunities In LLC Disputes
A New Jersey court’s recent decision in Flor v. GreenbergFarrow found that a court may consider a limited liability company member’s wrongful conduct when determining sale and compensation owed to a dissociate member, and may open doors for plaintiffs seeking relief from wrongful conduct, say Lowry Yankwich and Peter LeVan at LeVan Stapleton.
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Will Justices Settle Decades-Old Split On Arbitrator Conflicts?
Whether an arbitrator's failure to disclose a potential conflict of interest is sufficient grounds to vacate an arbitration award is the subject of an almost 60-year-old circuit split that the U.S. Supreme Court is positioned to resolve if it grants cert in either of two writs pending before it, say attorneys at Norton Rose.
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Companies Should Beware Greater Scrutiny Of Subscriptions
The New York Attorney General's Office has been utilizing a severe interpretation of the law in enforcement against subscription services, as demonstrated in last month's Sirius XM complaint and Cerebral settlement — and this focus is representative of heightened subscription scrutiny in other states and at the federal level, say attorneys at Venable.
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5 Trade Secret Developments To Follow In 2024
Recent cases and trends in trade secret law indicate that significant developments are likely this year, and practitioners should be anticipating their impact on the business and legal landscape, say attorneys at Faegre Drinker.
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Series
Baking Bread Makes Me A Better Lawyer
After many years practicing law, and a few years baking bread, I have learned that there are a few keys to success in both endeavors, including the assembly of a nourishing and resilient culture, and the ability to learn from failure and exercise patience, says Rick Robinson at Reed Smith.
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3 Key Class Action Trends To Use As Guidance In 2024
Telephone Consumer Protection Act, privacy and false advertising class actions saw significant shifts last year — including a trend toward expanding the application of preexisting laws to current technologies — that businesses should keep in mind to navigate the class action landscape in 2024, say attorneys at Mintz.
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Federal Courts And AI Standing Orders: Safety Or Overkill?
Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.
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Wachtell-X Ruling Highlights Trend On Arbitrability Question
A growing body of case law, including a California state court's recent decision in X Corp. v. Wachtell, holds that incorporation of specific arbitral body rules in an arbitration provision may in and of itself constitute clear and unmistakable evidence of delegation of arbitrability to an arbitrator, and thus such clauses should be drafted carefully, say attorneys at Norton Rose.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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Trends That Tech Lawyers Should Keep An Eye On In 2024
Worldwide technology spending is projected to strengthen in 2024, spurred by artificial intelligence-driven solutions, and five areas of growth may affect lawyers' practice in this sector, says Sonia Baldia at Kilpatrick.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.