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Commercial Contracts
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November 22, 2024
Sirius XM Cancellation Policies Flout Federal Law, Judge Says
A New York state judge held that Sirius XM Radio Inc.'s account cancellation policies, while not fraudulent, violate federal law by forcing consumers to call customer service and listen to drawn-out discount pitches before they're able to unsubscribe.
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November 22, 2024
Wellness Software Co. Not Immune From IP Suit, Judge Says
A federal judge in San Antonio says the Patent Act's immunity protecting physicians from patent lawsuits is "broad, but it is not limitless," and it does not extend to a wellness software licensing company that "only licenses its product to medical providers."
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November 22, 2024
High Court Bar's Future: Sullivan & Cromwell's Morgan Ratner
Morgan L. Ratner has emerged as a leader of the U.S. Supreme Court bar's next generation, and she attributes her ascent to brilliant mentors, a laid-back argument style, an aversion to overconfidence and a firm commitment to clear principles in every case — even if that means reluctantly telling the chief justice, as she once did, that a hypothetical cat stuck in a tree shouldn't be saved.
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November 22, 2024
Lenders File Suit To Repossess 600 Crypto ATMs As Payment
Two holding companies are asking a Pennsylvania federal judge to appoint a receiver to help them take possession of nearly 600 digital currency kiosk machines that their defaulted borrowers pledged as collateral for loans totaling $5 million.
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November 22, 2024
Service Fees Not 'Incidental' To Debt Collection, 11th Circ. Told
Ocwen Loan Servicing LLC urged the Eleventh Circuit on Friday to reverse two Florida lower court judgments finding it violated debt collection practices with a fee to process phone or internet payments, saying it's not an illegal "incidental" charge because the borrower is paying for an optional service.
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November 22, 2024
Procter & Gamble Unit's Hair Oil Causes Hair Loss, Suit Says
The Procter & Gamble Co. and its unit Mielle Organics LLC are deceptively marketing their brand of hair oil as being safe to use, even though it has caused hair loss in some users, a putative class action filed Thursday in Illinois federal court alleged.
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November 22, 2024
Kraft, Others Say No Need To Stay Atty Fees After $53.3M Win
Kraft, Kellogg, Nestle and General Mills have urged an Illinois federal judge not to delay deciding attorney fees following their $53.3 million judgment against egg producers and industry groups, saying further stalling would only prolong the already 13-year-old case.
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November 22, 2024
Chemical Co.'s PFAS Coverage Suit In SC Gets Tossed
A South Carolina federal court tossed BASF Corp.'s suit seeking coverage for thousands of underlying allegations that the chemical manufacturer's firefighting foam caused pollution and injury, finding Friday that a parallel suit in New Jersey state court favors abstention.
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November 22, 2024
Norfolk Southern Says Artist's Timeline Doesn't Add Up
Norfolk Southern said it should still get an early win over an artist who sued the company for allegedly covering over murals on a railroad bridge, even after a federal magistrate found the sham affidavit doctrine didn't apply when the artist changed his story during depositions spanning two lawsuits.
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November 22, 2024
Navajo Co. Dismisses Case Alleging Paralegal Took Docs
A natural resources company owned by the Navajo Nation has dismissed a lawsuit against a paralegal it accused of failing to turn in her computer for removal of its privileged documents, after the paralegal said she had already arranged to surrender her device before the lawsuit was even filed.
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November 22, 2024
1st Circ. Affirms Volvo Win In Dealers' Maintenance Pay Suit
The First Circuit affirmed a pretrial win granted to Volvo in a suit brought by two dealerships claiming the carmaker was underpaying them for maintenance they perform under prepaid service plans.
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November 22, 2024
Off The Bench: NBA Ices Media Flap, Paul-Tyson Netflix Suit
In this week's Off The Bench, the NBA settles a high-profile suit regarding its new media rights deal, and Netflix's buggy presentation of the Mike Tyson-Jake Paul fight draws a proposed class action.
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November 22, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen cash-strapped Thurrock Borough Council bring a £40 million ($50 million) negligence claim against 23 other local authorities over its solar investments from a not-for-profit local government body, AstraZeneca sue a fire safety company following a blaze at its Cambridge headquarters last year, and a director who was convicted in 2016 for corporate manslaughter face action by Manolete Partners. Here, Law360 looks at these and other new claims in the U.K.
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November 21, 2024
Sports Site Gets Video Privacy Suit Moved To Arbitration
A California federal judge has sent to arbitration a putative class action accusing a high school sports streaming service of unlawfully sharing users' video-viewing information with third parties such as Meta Platforms Inc., finding that the plaintiff had agreed to these terms when he first signed up for an account on the site.
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November 21, 2024
Cherokee Look To Block Voter Group In Casino Mandate Row
Two Cherokee Nation businesses suing Arkansas over a constitutional amendment revoking one of the tribal entities' casino gambling licenses want a federal judge to deny a bid to intervene in their suit by the group responsible for placing a ballot question before voters that repealed the license.
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November 21, 2024
Feds Coined 'Catchphrase' To Convict LA Pol, 9th Circ. Told
Mark Ridley-Thomas' attorney on Thursday urged the Ninth Circuit to overturn the former California politician's bribery conviction for scheming to indirectly donate $100,000 to his son's nonprofit and secure him a university position, saying prosecutors coined the "catchphrase" "funneling" to obfuscate that no bribe actually occurred.
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November 21, 2024
Weed Co. Must Pay $5M To Entrepeneur In Investor Dispute
A marijuana consulting firm must pay $5 million to a former business partner after allegedly derailing plans to purchase a marijuana grow facility in Michigan by convincing the main investors to put their money into a Colorado weed business instead.
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November 21, 2024
Settlement Doesn't Void Injury Coverage Ruling, Judge Says
A Colorado federal court refused to set aside its September ruling that an oil and gas production company isn't owed coverage by an electrical drilling company for a worker's underlying injury lawsuit, saying the parties' settlement negotiations don't justify vacating a valid court order.
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November 21, 2024
Nurse Staffing Exec Can't Trim Fraud Charge In Antitrust Case
A Nevada federal court has refused to dismiss fraud charges against a home healthcare staffing executive accused of fixing nurses' wages and hiding a probe of the scheme when selling the business, and also refused to exclude statements the executive made during an FBI interview.
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November 21, 2024
NBA Veteran Who Cooperated In $5M Fraud Case Avoids Jail
A Manhattan federal judge on Thursday allowed former NBA center Melvin Ely to avoid prison for taking $36,000 of illegal payouts in pro basketball's $5 million health billing fraud ring, crediting his decision to cooperate in the sprawling criminal case.
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November 21, 2024
Rebel Wilson Unlikely To Duck 'The Deb' Defamation Suit
A Los Angeles judge suggested Thursday that he'll likely keep alive a defamation suit accusing actress Rebel Wilson of spreading baseless lies about producers of the musical film "The Deb," saying it seems the matter is a "private business dispute" not protected by California's anti-SLAPP statute.
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November 21, 2024
Bettor Wants Class Cert. In Suit Over DraftKings' Voided Bet
A man suing DraftKings over a canceled NBA wager he says would have put $150,000 in his pocket has asked an Indiana federal court to certify a class of 99 bettors, including himself, affected by the axed transaction.
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November 21, 2024
$1.5M Georgetown Tuition Refund Deal Closer To Final OK
A D.C. federal judge appears poised to give final approval to a $1.5 million settlement resolving claims over Georgetown University's move to remote instruction during the COVID-19 pandemic, but his skepticism that a graduate student outside the settlement class should score a $1,000 service award dissuaded him from granting final approval Thursday.
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November 20, 2024
Canadian Court Revives Award In $7M Coffee Franchise Fight
An appeals court in Ontario has revived a CA$10 million ($7.1 million) arbitral award issued in a franchising dispute stemming from the expansion of an Israeli coffee bar chain into Canada, rejecting a lower court's conclusion that the arbitrator had breached his duty of disclosure.
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November 20, 2024
NC Judge Trims Suit Against Investor Over Fla. Restaurant
A North Carolina state court judge has trimmed a lawsuit that a restaurateur brought against an investor over funding of a restaurant in the heart of Miami Beach, dismissing claims of breach of settlement agreement, fraudulent inducement and deceptive trade practices but declining to toss the complaint altogether.
Expert Analysis
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Class Actions At The Circuit Courts: April Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses three notable circuit court decisions on topics from the Class Action Fairness Act to consumer fraud — and provides key takeaways for counsel on issues including CAFA’s local controversy exception and Article III standing to seek injunctive relief.
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9th Circ. Arbitration Ruling Could Have Int'l Implications
In Patrick v. Running Warehouse, the Ninth Circuit's recent matter-of-fact invocation of an unusual California rule in a domestic arbitration context raises choice of law questions, and could make California law a strategic option for some international arbitration parties, says Jerry Roth at FedArb.
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Series
Being An Equestrian Makes Me A Better Lawyer
Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.
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FTC Noncompete Ban Signals Rising Labor Focus In Antitrust
The Federal Trade Commission’s approval this week of a prohibition on noncompete agreements continues antitrust enforcers’ increasing focus on labor, meaning companies must keep employee issues top of mind both in the ordinary course of business and when pursuing transactions, say attorneys at Skadden.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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What 3rd Circ. Trust Ruling Means For Securitization Market
Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.
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Clemson's ACC Exit Fee Suit May Have Major Consequences
Clemson University's recent suit in South Carolina state court against the Atlantic Coast Conference, which challenges the ACC's $140 million exit fee and its ownership of member schools' media rights, would likely have enormous ramifications for ACC members in the event of a definitive court ruling, say William Sullivan and Alex Anderson at Pillsbury.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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A Key Pitfall Of Restricted Subsidiaries In Loan Agreements
In loan agreements, the treatment afforded to non-loan party restricted subsidiaries' EBITDA presents subtle, but serious threats to lenders that require thoughtful attention in underwriting and drafting, say David Ebroon at JPMorgan Chase and Jared Zajac at Cadwalader.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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New Proposal Signals Sharper Enforcement Focus At CFIUS
Last week's proposed rule aimed at broadening the Committee on Foreign Investment in the United States' enforcement authority over foreign investments and increasing penalties for violations signals that CFIUS intends to continue expanding its aggressive monitoring of national security issues, say attorneys at Kirkland.
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How Companies Can Use Big Data As A Strategic Asset
Artificial intelligence technology powered by big data has the potential to create radical improvements to business operations, but if big data is improperly protected or monetized, this same information can give competitors similar advantages, or at the very least undermine a company's edge, say Gary Weinstein and Hudson Peters at Faegre Drinker.
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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.