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Commercial Contracts
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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.
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February 04, 2025
LinkedIn Shares Users' Info With Meta And Adobe, Suit Says
LinkedIn has been hit with a proposed class action in California federal court alleging it illegally shared with Meta and Adobe personal information belonging to its LinkedIn premium subscribers who watched online training courses on its LinkedIn Learning platform without their knowledge or permission.
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February 04, 2025
Colorado Atty Says She's Blameless For Divorce Money Hack
A Colorado divorce attorney wants out of a tangle of lawsuits that have sprung up since conservative radio personality and lawyer Randy Corporon mistakenly wired a client's $375,000 divorce settlement to Hong Kong, arguing that the claims are premature and statutorily barred, and that her malpractice insurer already covered damages.
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February 04, 2025
Lindberg Fights NC Charging Order Against His Florida Co.
Convicted mogul Greg Lindberg has told the North Carolina state appeals court that an insurer he's accused of defrauding can't collect a $524 million judgment against him by going after his out-of-state holding company, arguing that the trial court has no power over him or his business in Florida.
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February 04, 2025
SEC Receiver, Atty Agree To Settle Fraud Transfer Claims
A court-appointed receiver for a U.S. Securities and Exchange Commission case has reached a settlement with parties who allegedly received hundreds of thousands of dollars' worth of transfers from a fraudulent foreign exchange trading scheme, including the attorney and family of a convicted executive.
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February 04, 2025
Exploration Co. Wants Sanctions Over Atty DQ Attempt
An exploration company being sued by ocean salvage operation Maritime Research and Recovery LLC over a sunken Spanish galleon asked a Florida federal court on Tuesday to end the suit as a sanction for Maritime's "egregious misconduct," including trying to disqualify its counsel and filing frivolous motions.
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February 04, 2025
Jr. Hockey League Seeks To Block Team Move To Competitor
A junior hockey league is asking a judge to block a Massachusetts team from jumping to a competing league, allegedly in violation of a 2022 franchise agreement that included a five-year non-compete provision.
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February 04, 2025
Apple Asks DC Circ. To Pause Google Search Case For Appeal
Apple has asked the D.C. Circuit to pause the remedies phase of the landmark monopolization case targeting Google's search dominance, arguing it needs to intervene to protect its contracts with Google that are worth billions of dollars each year.
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February 04, 2025
'Sloppy' Work Hurts Lab's $20.6M Insurance Suit, Judge Says
A Connecticut federal judge said Tuesday that a contract lawsuit against insurer Aetna Inc. and its owner CVS Health Corp., seeking about $20.6 million in payment for laboratory services, seems to "suffer" from the fact that the plaintiff filed dozens of similar cases in short order.
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February 04, 2025
Cherokee Nation, Group Spar Over Ark. Casino License Docs
A federal district court is set to determine if the officers of a ballot issue committee backing an Arkansas amendment that revoked a Cherokee Nation business' casino license and the public affairs firm must hand over documentation in the dispute.
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.