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Commercial Contracts
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February 06, 2025
Dealers Sue VW Unit Over Deposits For New Trucks, SUVs
More than two dozen Audi and Volkswagen dealers in Florida have sued a Volkswagen unit, claiming it is violating a state law barring automakers from selling vehicles directly to the public by accepting $100 deposits for electric trucks and SUVs scheduled for release in 2027.
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February 06, 2025
Judge Questions Firm's Candor In Apple, Amazon Docs Row
A Washington federal judge said on Thursday there was "troubling shifting" around Hagens Berman Sobol Shapiro LLP's explanation of texts and emails with a client who disappeared from a proposed class action targeting Amazon and Apple, while also saying it might not matter because the firm found substitute plaintiffs.
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February 06, 2025
SEC 'Exposes Lunacy' Through Its Dueling Suits, PE Firm Says
A South Carolina private equity fund said Thursday the U.S. Securities and Exchange Commission is trying to gut it through a Florida lawsuit, telling a Texas judge the commission made "out of touch statements" on how the litigation will harm its business.
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February 06, 2025
Jeld-Wen Appealing Forced Factory Sale To 4th Circ., Again
Jeld-Wen Inc. is taking another trip to the Fourth Circuit to fight an order forcing it to sell a door skin factory, filing a notice of appeal Thursday after a Virginia federal judge said a $115 million price is fair.
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February 06, 2025
Earthlink Investors' Attys Score $28M In Merger Suit
The attorneys who helped Earthlink investors score an $85 million settlement with the company after they said they were tricked into approving a $1.1 billion merger with a failing telecommunications company will be walking away with almost $28 million for their trouble.
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February 06, 2025
ERISA Preempts Banker's $5.5M Deferred Comp, Judge Rules
The Employee Retirement Income Security Act preempts a former Leerink Partners employee's claims that she was cheated out of about $5.5 million in deferred compensation after the bank hired her under allegedly false pretenses from Goldman Sachs, a Massachusetts federal judge ruled Thursday.
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February 06, 2025
Sam Altman Calls Musk's Claim Of Ban On Rivals 'False'
OpenAI CEO Sam Altman said the key claim made in a preliminary injunction request from Elon Musk in their ongoing investment spat is false, saying in a new declaration that he never told OpenAI investors that they wouldn't be able to invest in the company if they also invested in Musk's xAI.
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February 06, 2025
Broker Sued In $79M Bezos Deal Has To Replead Defenses
A Florida judge on Thursday struck most of the defenses put forth by Douglas Elliman LLC against accusations that it misrepresented that Amazon founder Jeff Bezos was not the true purchaser of a $79 million Miami property, but told the real estate broker it could assert the defenses again with more facts to support them.
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February 06, 2025
Fla. Judge Beats Bias Challenge In Presiding Over CBD Suit
A Florida federal judge on Thursday rejected an objection by former franchisee for CBD company American Shaman Franchise System LLC to a magistrate judge's decision not to recuse herself from his breach of contract case.
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February 06, 2025
Metals Dealer Says Partners Lost $12M In Attys' Tax Scam
A precious metals dealer and his partners said they were fleeced of $12 million by attorneys who directed them to form a partnership and take illegal tax deductions for intellectual property, according to a complaint filed in Colorado federal court.
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February 06, 2025
Filing Claims 'Secret Lockout' Led To Conn. Trial Firm Schism
One of the 50-50 partners litigating the dramatic breakup of Connecticut Trial Firm LLC, a personal injury firm known for high-dollar verdicts, has accused his onetime partner of having "plotted a secret lockout" to remove him from the firm, according to a revised derivative complaint filed in Connecticut state court.
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February 06, 2025
XPO Says Ex-Account Execs Poached Its Customers For Rival
Logistics company XPO Inc. is accusing two ex-employees of violating their nonsolicitation and confidentiality agreements by poaching its clients after leaving to work for a rival firm, but the workers say the contracts are unenforceable, anyway.
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February 05, 2025
House Republicans Target CFPB's Small-Biz Rule For Repeal
House Republicans at a Wednesday hearing sought to build momentum for reversing the Consumer Financial Protection Bureau's small-business loan data rule, casting it as harmful to smaller banks while Democrats argued the real danger is the Trump administration itself.
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February 05, 2025
'Dog Eat Dog' Contract Raises Connecticut Justice's Hackles
A Connecticut Supreme Court justice on Wednesday challenged private equity firm members fighting a former member's trial court victory in a breach suit over the partnership, suggesting that the winner may have had a viable fiduciary duty claim over the "dog eat dog" operating agreement that apparently allows members to "screw" a minority shareholder.
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February 05, 2025
Monolithic's Investors Say Co. Botched Nvidia Orders
Power management component manufacturer Monolithic Power Systems Inc. has been hit with a proposed shareholder class action alleging it hid critical defects in power modules used by its largest customer, Nvidia Corp., that led the artificial intelligence chipmaker to cancel orders, harming Monolithic's revenue.
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February 05, 2025
Mercedes-Benz Defective Brake Suit Narrowed Again
A Washington federal judge has again narrowed a proposed class action against Mercedes-Benz over defective braking systems in SUVs, dismissing claims that the automaker fraudulently concealed the issue but allowing allegations that it unfairly shifted repair costs to customers.
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February 05, 2025
'Pay-To-Pay' Fees Are Unfair Debt Practice, 11th Circ. Rules
The Eleventh Circuit said a mortgage servicing company illegally charged borrowers fees for online and phone payments, upholding a Florida federal court's decision that it improperly collected so-called pay-to-pay convenience fees that were not expressly allowed by underlying loan agreements.
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February 05, 2025
Apply Presuit Notice Law Retroactively, Insurer Tells Fla. Court
Universal Property and Casualty Insurance Co. on Wednesday urged the Florida Supreme Court to reverse a decision declining to apply a state law requiring presuit notice against a property insurance carrier to a policy purchased before the law's effective date.
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February 05, 2025
Ex-CBD Co. Franchisee Says Magistrate Can't Rule On DQ Bid
A former franchisee for CBD company American Shaman Franchise System LLC on Wednesday objected to an order from a magistrate judge rejecting his bid to disqualify her, saying that a magistrate judge has no authority to decide on a posttrial motion.
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February 05, 2025
Cleveland-Cliffs Wants 'Un-American' US Steel Suit Tossed
Cleveland-Cliffs and its CEO have asked a Pennsylvania judge to toss a lawsuit filed against them by Nippon Steel and U.S. Steel, calling the suit "un-American" while claiming that the plaintiffs' "sputtering disapproval" of the defendants' statements doesn't hold up in court.
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February 04, 2025
Turkish Construction Co. Wins OK Of $22M Libya Award
A D.C. federal judge on Tuesday enforced a $21.9 million arbitral award against Libya issued by a Swiss tribunal in a dispute over decades-old unpaid public works contracts, rejecting the country's argument that the case should be stayed during parallel enforcement proceedings in Turkey and Curaçao.
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February 04, 2025
Whirlpool Sinks Customer's Suit Over Service Plan Repair
A Washington federal judge has tossed a customer's proposed class action over a dishwasher warranty for good, finding no "reasonable consumer" would have been misled to believe the terms covered the full cost of any repair given the "caveats" on marketing materials.
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February 04, 2025
Amazon Wants Drivers Locked Out Of Collective Wage Suit
Amazon is asking a Washington federal judge to oust nearly a dozen plaintiffs from a collective action accusing the e-commerce giant of misclassifying Amazon Flex delivery drivers as independent contractors, claiming the individuals failed to comply with a court-ordered discovery deadline last month.
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February 04, 2025
OpenAI Judge Rips Musk's 'Broad' Bid To Block For-Profit
A California federal judge indicated Tuesday she'll likely deny Elon Musk's bid to preliminarily block OpenAI Inc. from transitioning into a for-profit enterprise, criticizing Musk's filings for being vague and broad and saying she'll toss some claims, while adding "something is going to trial in this case."
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February 04, 2025
Calif. AG Backs Tribes In Bid To Protect Cultural Resources
California's attorney general has won his bid to intervene in a consolidated suit challenging a county's approvals for a roadside attraction proposed to be built along Highway 101, saying the county violated environmental standards and failed to consult with Native American tribes.
Expert Analysis
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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FERC's Reactive Power Compensation Cutoff Is No Shock
While the Federal Energy Regulatory Commission's recent final rule ending compensation for reactive power provided within the standard power factor range will mean less revenue for some generators, it should not come as a surprise, since FERC has long signaled its interest in this shift, says Linda Walsh at Husch Blackwell.
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Opinion
Feds May Have Overstepped In Suit Against Mortgage Lender
The U.S. Department of Justice's lawsuit against Rocket Mortgage goes too far in attempting to combat racial bias and appears to fail on the fatal flaw that mortgage lenders should be at arm's length from appraisers, says Drew Ketterer at Ketterer & Ketterer.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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Next Steps In The $2.8B Blue Cross Payout To Providers
Healthcare providers deciding whether to participate in Blue Cross Blue Shield network's recent $2.8 billion antitrust class action settlement must weigh key recovery factors, including provider type and litigation cost, say attorneys at Hall Render.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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Key Territory-Split Licensing Lessons For Life Sciences Cos.
Territory-split deals can allow life sciences companies to maximize products' potential across a range of geographic areas, but these deals also present unique challenges requiring highly bespoke structures that can make or break the value of an asset, say attorneys at Covington.
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Notable Q3 Updates In Insurance Class Actions
Total loss valuation cases and labor depreciation cases dominated the past quarter of insurance class actions, with courts continuing to reject challenges to condition adjustments in the former, and a pro-insured trend persisting in the latter, say attorneys at BakerHostetler.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Opinion
In Visa Case, DOJ Continues To Misapply The Sherman Act
The recent U.S. Department of Justice debit market monopolization case against Visa fuels concerns that a misguided Biden administration DOJ is inappropriately expanding its interpretation of the Sherman Antitrust Act beyond the demonstrable economic effects that business conduct has on consumers, says Shubha Ghosh at Syracuse University.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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Key Legal Considerations After Supply Chain Disruptions
After U.S. supply chain disruptions — like the recent port workers' strike, and Hurricanes Helene and Milton — stakeholders should look to contractual provisions to mitigate losses, and keep in mind that regulators will be watching closely for unfair shipping practices, say attorneys at Holland & Knight.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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Why Secured Lenders Must Mind The Gap In UCC Searches
If not adequately addressed, the Uniform Commercial Code filing indexing gap can interfere with a lender's expected lien priority, but taking appropriate preclosing actions and properly timing searches can eliminate this risk, says Robert Wonneberger at Barclay Damon.