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Commercial Contracts
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October 17, 2024
No Privilege For Drug Discount Co. Accused Of Faking Deal
A Colorado federal judge held Wednesday that he saw probable cause that a drug discounter hired an attorney with the intent to commit fraud, ordering that company to disclose privileged documents in a lawsuit alleging it faked an acquisition to dupe an Illinois-based pharmacy benefit company into paying higher commissions.
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October 17, 2024
Seyfarth Hit With $8M Suit For Botched Wage Class Settlement
Seyfarth Shaw LLP owes a physician practice almost $8 million for negligently removing hundreds of the practice's employees from a list of those entitled to part of a $4.9 million wage and hour settlement, costing the practice another $3.6 million to correct the mistake, according to a California suit.
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October 17, 2024
Pa. AG Can't Get State Claims Restored In FTC Amazon Suit
A federal judge tersely denied a request from Pennsylvania's attorney general, who had sought to reinstate her state's consumer protection claims against Amazon in the Federal Trade Commission's antitrust suit.
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October 16, 2024
Airline Owner Can't Force Cravath To Give Docs, Court Says
Cravath Swaine & Moore LLP doesn't have to turn over documents used in the prosecution of an airline owner accused in a scheme to defraud Polar Air Cargo Worldwide of millions of dollars, a New York federal judge ruled Wednesday, saying the defendant hasn't shown the firm was part of the prosecution.
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October 16, 2024
Philips Says $12M Sanction Needed For Evidence Destruction
A spoliation sanctions hearing for around $12 million in royalty damages turned terse when the owner of a medical device equipment sale and servicing company seemingly hedged his statements, with a Texas federal judge saying, "Oh my gosh, just answer the question," during the Wednesday hearing.
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October 16, 2024
Conn. Nurses Sue To Block Forced Post-Contract Overtime
A union representing nurses at a Hartford HealthCare-affiliated hospital in Norwich, Connecticut, has asked a state superior court judge to block mandatory overtime assignments, arguing that a 2020 union contract requiring such shifts expired over the summer and that a 2023 state statute bans the hospital's continuing practices.
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October 16, 2024
Amec Unit Wants 'Vexatious' Biofuel Plant Suit Tossed
Energy construction giant Amec Foster Wheeler and one of its units called on a Georgia federal judge to throw out a lawsuit alleging it misled a Peach State power company about the quality of work on two biofuel plants, arguing the company's complaint violates the claim-splitting doctrine and lacks sufficient factual allegations.
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October 16, 2024
Alphatec Investor Seeks $9.5M Atty Fee After Chancery Win
A family office investment company that recently won a five-year battle over millions worth of securities purchase rights not honored by a surgical and medical device developer asked Delaware's Court of Chancery on Wednesday to shift more than $9.5 million in fees and expenses to the developer.
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October 16, 2024
Pa. AG Wants State Claims Restored In FTC Amazon Suit
Pennsylvania's attorney general wants to get back into a joint state and federal antitrust case against Amazon, asking a Washington federal judge to reconsider tossing claims under Pennsylvania's consumer protection law because Amazon allegedly concealed its unfair trade practices from Pennsylvania customers.
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October 16, 2024
Georgia EV Battery Manufacturer Settles Fire Suit
A Georgia electric vehicle battery manufacturer has reached a settlement ending a recycling facility's suit alleging it caught fire and burned to the ground last year after the manufacturer allegedly sent hundreds of charged lithium-ion battery scraps to the facility.
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October 16, 2024
PE Firm Trashed Exec To Avoid Payout In $98M Deal, Suit Says
A Summit Partners affiliate and several executives concocted false allegations of misconduct to get out of fully compensating the owner of an investment management firm as part of an acquisition worth a reported $97.6 million, according to a complaint filed in Massachusetts state court.
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October 16, 2024
Railroad Holding Locomotive 'Hostage,' G&W Unit Says
A Connecticut railroad has held a locomotive "hostage" since it derailed in August and is trying to "extort" its rightful owner for more than $100,000, according to a federal lawsuit that brings claims including larceny and unfair trade practices against Housatonic Railroad Co. Inc.
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October 15, 2024
Uber Faces Scrutiny From NY High Court In Negligence Case
Judges on New York's highest court on Tuesday grilled an Uber attorney over whether the rideshare company violated ethical rules when it failed to omit a user already pursuing a negligence lawsuit against it from an email blast providing notice about an updated arbitration agreement in its terms of use.
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October 15, 2024
10th Circ. Finds Doll Co. Can Bring Copyright Suit In Utah
A Utah company that makes realistic human-sized dolls won a ruling from the Tenth Circuit on Tuesday that it can sue two Chinese companies for counterfeiting in Utah federal court because those businesses agreed to the jurisdiction of anywhere Amazon can be legally "found."
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October 15, 2024
$215M Appeal Could Hinge On Whether Email Changed Deal
An email thread referencing salt standards was not meant to be an enforceable part of a fracking water treatment plant contract, a French water firm told Colorado appellate judges Tuesday in its attempt to avoid a $215 million judgment for breaching those standards.
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October 15, 2024
Biz Fights Partner's $32.8M Cut Of Texas Migrant Busing Deals
A transportation company sued to vacate an arbitration decision awarding an affiliate a $32.8 million share of migrant busing contracts under Texas' Operation Lone Star, saying the partner can't claim earnings from an initiative that didn't exist when their partnership began.
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October 15, 2024
Gamers End Challenge Of Microsoft's $69B Activision Deal
Microsoft reached an agreement ending a challenge from a group of gamers targeting its $69 billion deal for Activision Blizzard as a merger challenge from the Federal Trade Commission remains pending at the Ninth Circuit.
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October 15, 2024
Realtors Ask High Court To Quash DOJ Antitrust Probe
The National Association of Realtors has petitioned the U.S. Supreme Court for review of a ruling that would allow the U.S. Department of Justice's Antitrust Division to reopen an investigation into the trade group's rules and policies after an earlier settlement.
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October 15, 2024
Finnish Sports Biz Wins Asset Freeze In $1.2M NHL Deal Suit
A Massachusetts federal judge on Tuesday granted a Finland-based sports management company's request to freeze the assets of the American owner behind a shuttered agency that represented hockey players while it pursues litigation seeking more than $1.2 million owed from a deal to represent Finnish players in the NHL.
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October 15, 2024
Investment Firm Says CNA Must Defend Competition Suits
An investment adviser firm said a CNA unit must cover underlying suits accusing it of stealing a competitor firm's employees and soliciting its investors, telling a Connecticut federal court that the allegations constitute disparagement and advertising injury sufficient to trigger the insurer's duty to defend.
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October 15, 2024
Ex-Dodger Bauer Sues Accuser For Alleged Settlement Breach
Former Major League Baseball pitcher Trevor Bauer has filed a California state court lawsuit against a woman who previously accused him of sexual assault, alleging that the two reached an out-of-court settlement but that she violated the deal by falsely claiming in public he paid her $300,000.
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October 15, 2024
Morgan Stanley, BofA Sued Over Cash Sweep Programs
Minnesota-based financial services company Safron Capital Corp. launched a pair of proposed class actions against Morgan Stanley and Bank of America in New York alleging the firms used their so-called cash sweep programs "to generate massive revenue for themselves at the expense of their customers."
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October 15, 2024
Lenovo, InterDigital Settle Patent And Antitrust Suits
A Delaware federal judge on Tuesday dismissed long-running antitrust and patent claims between Lenovo and InterDigital on Tuesday, after InterDigital announced the companies would drop their allegations in accordance with the terms of a patent licensing deal and a binding arbitration agreement.
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October 15, 2024
Mich. Judge Unsure If PE Firm's Loan Broke Usury Law
The interest rate on a private equity firm's loan to a Detroit house-flipping venture exceeded usury limits, but it was unclear whether the lender knowingly charged an excessive rate, a Michigan state judge ruled after the case returned from a trip to the Michigan Supreme Court.
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October 15, 2024
Ex-'Top Chef' Hopeful Sues Over Ouster From Food Hall
A former celebrity chef who worked for a new Pittsburgh food hall is suing his ex-partner in Pennsylvania state court, claiming he was ousted for no good reason and is owed money for years of work setting up the business.
Expert Analysis
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Mitigating Risks Amid 10-Year Sanctions Enforcement Window
In response to recent legislation, which doubles the statute of limitations for actions related to certain U.S. sanctions and provides regulators greater opportunity to investigate possible violations, companies should take specific steps to account for the increased civil and criminal enforcement risk, say attorneys at Freshfields.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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Keys To Strong Parking, Storage Contracts For NYC Buildings
Drafting and enforcing unambiguous parking and storage unit license agreements are essential tasks for co-op and condo boards in New York City, with recent cases highlighting how prudent terms can minimize potential headaches, say Matthew Eiben and Adam Lindenbaum at Rosenberg & Estis.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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Series
After Chevron: FTC's 'Unfair Competition' Actions In Jeopardy
While the U.S. Supreme Court's decision ending Chevron deference will have limited effect on the Federal Trade Commission's merger guidelines, administrative enforcement actions and commission decisions on appeal, it could restrict the agency's expansive take on its rulemaking authority and threaten the noncompete ban, say attorneys at Baker Botts.
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Expect The Unexpected: Contracts For Underground Projects
Recent challenges encountered by the Mountain Valley Pipeline project underscore the importance of drafting contracts for underground construction to account for unexpected site conditions, associated risks and compliance with applicable laws, say Jill Jaffe and Brenda Lin at Nossaman.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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Anticipating Disputes In Small Biz Partnerships And LLCs
In light of persistently high failures of small business partnerships and limited liability companies, mediator Frank Burke discusses proactive strategies for protecting and defining business rights and responsibilities, as well as reactive measures for owners.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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Roundup
After Chevron
Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 36 different rulemaking and litigation areas.