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Commercial Contracts
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July 15, 2024
Catching Up With Delaware's Chancery Court
Chancery Court news was full of fees and settlements last week, with three multimillion-dollar deals getting a court OK, and a daylong discussion over a potentially multibillion-dollar fee award for attorneys who got Tesla CEO Elon Musk's astronomical pay package thrown out. The court also banged the gavel in cases involving e-payment venture SwervePay and managed care company Centene Corp., and heard arguments from software company SAP SE and biotech Renmatix Inc.
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July 15, 2024
Quinn Emanuel Barred From Repping X In Scraping Case
Quinn Emanuel Urquhart & Sullivan LLP can no longer represent social media giant X Corp. in the company's lawsuit against Bright Data Ltd., with a California federal judge finding the law firm violated its duty of loyalty to Bright Data after previously representing it in a "substantially related" case.
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July 15, 2024
BorgWarner Accuses Supplier Of Sabotaging Supply Chain
Auto parts manufacturer BorgWarner risks running out of an important part after its supplier allegedly wreaked havoc on the supply chain by refusing to deliver unless BorgWarner agreed to certain price hikes, according to a newly filed federal lawsuit in North Carolina.
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July 15, 2024
United Rentals Says It Caught Ex-Worker At Rival's Worksites
United Rentals Inc.'s private investigators watched a former sales manager violate a one-year noncompete agreement covering a 50-mile radius by watching him don gear emblazoned with his new employer's logo and tracking him to three Connecticut sites staffed by at least two longtime customers, a newly filed lawsuit indicates.
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July 15, 2024
Lighting Company Not Liable For Fire At Cannabis Farm
A Maryland federal judge has dismissed a lighting company from an insurer's suit alleging that lamps sold by its predecessor company caused a fire at a cannabis farm, saying it can't be held liable as a successor under Maryland law.
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July 15, 2024
Dow Chemical Seeks Recusal After Settlement Offer Gaffe
The Dow Chemical Co. asked an Ohio federal judge to recuse himself from a trade secrets suit brought by a Cleveland technology firm accusing it of misappropriating confidential information to recreate the firm's copyrighted software after the tech company showed the court a settlement offer without Dow Chemical's approval.
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July 12, 2024
Law360 Names 2024's Top Attorneys Under 40
Law360 is pleased to announce the Rising Stars of 2024, our list of 158 attorneys under 40 whose legal accomplishments belie their age.
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July 12, 2024
Mississippi Judge Benches Favre's NY Atty In Fraud Suit
A Mississippi judge found Thursday that retired quarterback Brett Favre's New York-based defense attorney in a massive welfare fraud lawsuit routinely violated the state's civil procedure codes and barred him and other non-local counsel from making any more filings.
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July 12, 2024
Conn. Health Staffing Co. Co-Owner Drops Partnership Suit
The co-owner of a Connecticut healthcare staffing company has withdrawn a lawsuit against a co-owner accused of plundering from the partnership, a move that leaves untested a sole dissolution claim left standing by a judge who dismissed all other causes of action between the parties earlier this year.
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July 12, 2024
BNSF Puts Up $426M To Stay Tribe's Win Pending Appeal
BNSF Railway Co. on Friday asked a federal judge to approve a $426 million security bond and to stay enforcement of a nearly $400 million judgment for trespassing across a Washington tribe's territory, while the railroad appeals.
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July 12, 2024
VLSI Continues Fight Against Intel In Patent Litigation
VLSI has launched a fight in Texas federal court against an argument that Intel made in Delaware federal court that it had a license to various patents.
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July 12, 2024
Valve Says Too Much Game Publisher Variety For Class Cert.
Online gaming giant Valve is fighting certification of a class of some 32,000 gaming publishers that distributed their titles through the company's Steam platform, arguing those publishers have nothing in common to assert any commonality in the alleged creation of a pricing floor that helped sustain Valve's 30% commissions.
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July 12, 2024
Delta Slams Flyers' Facebook Data Sharing Class Action
Delta Air Lines has asked a California federal judge to dump a proposed class action alleging it unlawfully shared customers' sensitive personal data with Meta's Facebook through online tracking tools embedded in its website, saying its contract of carriage clearly discloses its digital advertising practices.
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July 12, 2024
Staffing Agency Accused Of Misclassifying Workers
A staffing agency misclassified customer service agents as independent contractors and failed to pay them for all the hours they worked, according to a proposed class and collective action filed in Colorado federal court.
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July 12, 2024
Gas Co. Says Trader Can't Get Bonus From Risky Trades
A Colorado gas marketing company has urged a state judge to find a former trading director forfeited his right to collect a $3.3 million bonus because it was the result of risky and unauthorized trading, according to a motion asking the court to toss a jury's damages award.
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July 12, 2024
Zimmer Biomet Owes Despite Expired Patents, 7th Circ. Says
Zimmer Biomet Holdings shouldn't have stopped paying royalties on knee replacement devices it developed using an orthopedic surgeon's various patents after those patents expired, the Seventh Circuit said Friday, backing a lower court's decision affirming an arbitration ruling in favor of the surgeon's estate.
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July 12, 2024
Texas City Escapes Suit Over 2014 Toby Keith Concert
A state appeals court wrote that a south Texas city can escape a lawsuit brought by the promoters of a Toby Keith concert held at a city building, writing that the city didn't waive governmental immunity because the contract was verbal.
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July 12, 2024
Tobacco Co. Wants Coverage After $89M Tornado Damage
A tobacco company blamed its insurers for failing to pay their portion after $89 million of snuff was damaged following a 2023 tornado, in a case removed to Tennessee federal court.
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July 12, 2024
American Airlines Pilot Pushes For $16M Win After ERISA Trial
An American Airlines pilot urged a Texas federal court to make the airline cough up nearly $16 million following a June bench trial in a retirement savings class action, arguing the company breached its fiduciary duties to its retirement plan by focusing too heavily on environmental and social factors in investments.
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July 12, 2024
Lin Wood Wants Judge Disqualified In Ga. Defamation Case
Controversial retired Georgia attorney L. Lin Wood has asked that a Georgia federal judge be disqualified from presiding over a defamation case he's facing from his former law partners, arguing that the case involved two witnesses from Alston & Bird LLP, where the judge previously worked.
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July 12, 2024
Wayfair Says Contractor On 1st Megastore Stiffed Vendors
Online retailer Wayfair LLC says the company it hired to oversee the build-out of its first "large-format" brick and mortar location failed to pay multiple subcontractors on the project, forcing Wayfair to pay the subcontractors directly to ensure that the store opened on time, according to a complaint filed Friday.
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July 12, 2024
Biggest Washington Decisions Of 2024: A Midyear Report
The first half of 2024 in Washington courts was punctuated by a fizzled startup's $72 million trial win against The Boeing Co., and Monsanto Co.'s appellate reversal of a $185 million verdict in one of a series of high-profile PCB poisoning cases. Here is a closer look at some of the biggest decisions in Washington state and federal courts in the first half of 2024.
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July 12, 2024
Conn. Landlord Loses COVID-Era Lease Fight With Eatery
A Connecticut landlord did not tender an "unequivocal ultimatum" booting an eatery from a parcel of property, an appellate panel ruled Friday, finding that since the landlord vacillated between kicking the tenant off its Wallingford land and accepting payments, a 2020 eviction notice had no effect.
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July 12, 2024
Microsoft Squashes Beef With Ex-Engineer Over Xbox Patents
Microsoft has resolved litigation with a former software engineer who was fighting with the company over whether he could claim to own patents that he says Microsoft uses in its Xbox software.
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July 12, 2024
DraftKings' Voided NBA Bets Spark Lawsuit In Fed. Court
An Indiana man claiming he was cheated out of a $150,000 payday has sued DraftKings over its decision to void bets on an October NBA game, with the online betting giant moving the proposed class action to federal court this week.
Expert Analysis
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How Retail Tenants Can Avoid Paying Rent Prematurely
When negotiating leases for spaces in shopping centers, retail tenants should ensure that the language specifies they only need to begin paying rent when the center is substantially occupied as a whole, as it can be difficult to modify leases that are executed without co-tenancy requirements or termination rights, say Joshua Bernstein and Benjamin Joelson at Akerman.
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Policy Misrepresentations Carry Insurance Rescission Risks
The Second Circuit's recent decision in Medical Mutual v. Gnik, finding that material misrepresentation in a clinic's insurance applications warranted policy rescission, is a clear example of the far-reaching effects that misrepresentations can have and provides a reminder that policyholders should employ relatively straightforward steps to decrease risks, say attorneys at Hunton.
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Analyzing New EU Measure To Prevent Reexports To Russia
Niels Ersbøll, Alexander Italianer and Laura Beuls at Arnold & Porter offer a comprehensive overview of the European Union's new rule requiring export agreements to contain a clause prohibiting the reexport of goods to Russia, and discuss what companies should do to ensure compliance.
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3 Tech Sourcing Best Practices That Are Relevant For AI
It might be tempting to think that sourcing artificial intelligence tools requires a completely new set of skills, but the best practices that lead to a good deal are much the same as traditional technology procurement, says Mia Rendar at Pillsbury.
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Weisselberg's Perjury At Trial Spotlights Atty Ethics Issues
Former Trump Organization executive Allen Weisselberg’s recent guilty plea for perjury in the New York attorney general's civil fraud trial should serve as a reminder to attorneys of their ethical duties when they know a client has lied or plans to lie in court, and the potential penalties for not fulfilling those obligations, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Series
Playing Hockey Makes Me A Better Lawyer
Nearly a lifetime of playing hockey taught me the importance of avoiding burnout in all aspects of life, and the game ultimately ended up providing me with the balance I needed to maintain success in my legal career, says John Riccione at Taft.
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A Snapshot Of The Evolving Restrictive Covenant Landscape
Rachael Martinez and Brooke Bahlinger at Foley highlight recent trends in the hotly contested regulation and enforcement of noncompetition and related nonsolicitation covenants, and provide guidance on drafting such provisions within the context of stand-alone employment agreements and merger or acquisition transactions.
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For Lawyers, Pessimism Should Be A Job Skill, Not A Life Skill
A pessimistic mindset allows attorneys to be effective advocates for their clients, but it can come with serious costs for their personal well-being, so it’s crucial to exercise strategies that produce flexible optimism and connect lawyers with their core values, says Krista Larson at Stinson.
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Handling Customer Complaints In Bank-Fintech Partnerships
As regulators mine consumer complaint databases for their next investigative targets, it is critical that fintech and bank partners adopt a well-defined and monitored process for ensuring proper complaint handling, including by demonstrating proficiency and following interagency guidance, say attorneys at Jenner & Block.
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Trump's NY Civil Fraud Trial Spotlights Long-Criticized Law
A New York court’s recent decision holding former President Donald Trump liable for fraud brought old criticisms of the state law used against him back into the limelight — including its strikingly broad scope and its major departures from the traditional elements of common law fraud, say Mark Kelley and Lois Ahn at MoloLamken.
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What NAR Settlement Means For Agent Commission Rates
If approved, a joint settlement agreement between the National Association of Realtors and a class of home sellers will likely take the onus off home sellers to compensate buyers' agents, affecting considerations for all parties to real estate transactions, say attorneys at Jones Foster.
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Opinion
Requiring Leave To File Amicus Briefs Is A Bad Idea
A proposal to amend the Federal Rules of Appellate Procedure that would require parties to get court permission before filing federal amicus briefs would eliminate the long-standing practice of consent filing and thereby make the process less open and democratic, says Lawrence Ebner at the Atlantic Legal Foundation and DRI Center.
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4 Ways To Motivate Junior Attorneys To Bring Their Best
As Gen Z and younger millennial attorneys increasingly express dissatisfaction with their work and head for the exits, the lawyers who manage them must understand and attend to their needs and priorities to boost engagement and increase retention, says Stacey Schwartz at Katten.
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How 3 Unfolding Cases Could Affect The Energy Industry
Three judicial decisions now in the pipeline — Texas' challenge to the U.S. Environmental Protection Agency's methane regulations, Delaware's climate suit against big energy companies, and a case before the Supreme Court of Texas on royalty lease interpretation — could have important implications for the energy industry, say Michelle Scheffler and Rachael Cox at Skadden.