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Commercial Contracts
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October 11, 2024
Mich. Firm's Settlement Dispute Returns To State Court
A Michigan federal judge ruled Friday that an attorney-client fight over how to divide settlement proceeds in a police brutality case belongs in state court, reasoning that the dispute was a matter of contract law over which he could not exercise jurisdiction.
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October 11, 2024
Subcontractor Owes Travelers $325K For Hotel Work Deal
A Travelers unit is entitled to recover $325,000 for payments made against its surety bonds to settle a general contractor's claims that a subcontractor abandoned work on an Idaho hotel, a Washington federal court ruled, finding the subcontractor liable under an indemnity agreement with Travelers.
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October 11, 2024
Boston Dynamics 'Took Advantage' Of Partner's Robotics IP
Robot maker Boston Dynamics engaged in a "flagrant and secretive" breach of its nondisclosure agreement with a manufacturer by enabling a competitor to "reverse engineer" components it had built for the Massachusetts company, according to a state court lawsuit.
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October 11, 2024
Xcel, Colo. Co-Op Reach Deal To End Power Plant Appeal
Xcel Energy and a Colorado electric cooperative have told an intermediate state appellate court that they've reached a settlement in principle to avoid further appeals of a $26 million jury verdict against Xcel in a fight over the closure of a power plant.
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October 11, 2024
Fox Rothschild Aims To Exit Malpractice Suit Over Land Row
Fox Rothschild LLP has called on a New Jersey state court to throw out malpractice claims leveled against it by two siblings who accused a lawyer at the firm of bungling a 1984 property deed and 1993 trust belonging to their stepfather, arguing the sisters are trying to improperly hold it responsible for purported, decades-old negligence by other law firms.
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October 11, 2024
Nelson Mullins Can't Beat DQ In Foreign Exchange Fraud Suit
A Florida state appeals court panel unanimously sided with a trial court Friday in deciding that Nelson Mullins Riley & Scarborough LLP can't represent the defendant in a lawsuit accusing him of duping the plaintiff into doing business with online foreign exchange platform FxWinning Ltd. because the firm previously represented the plaintiff in a "substantially related" suit against the company.
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October 11, 2024
Indicted NJ Power Broker Says Civil Suit Belongs In Biz Court
Indicted Garden State power broker George E. Norcross III has asked a New Jersey state judge to transfer the civil racketeering suit brought against him and his attorney brother by a Philadelphia developer to the state's complex business litigation program.
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October 11, 2024
RTX Warned By Judge Over 'Troubling' Settlement Delay
A Massachusetts federal judge on Friday chided RTX for slow-walking the finalization of a settlement the defense contractor struck with a Connecticut company just before trial in a trade secrets dispute.
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October 11, 2024
'Bloodsport' Poaching Case To Mediate After Disputed Verdict
An exasperated Boston federal judge on Friday talked two rival medical aesthetic device companies into a round of mediation with a magistrate judge to see if they could wrap up the fiercely litigated poaching case that's already resulted in a contested eight-figure verdict.
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October 11, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen billionaire Lakshmi Mittal sue steel magnate Sanjeev Gupta in a long-running clash to claw back €140 million ($153 million) of debt, a high-profile AI researcher take action against the Intellectual Property Office to register his software as a listed patent inventor and troubled housing trust Home Reit face a claim by a real estate developer. Here, Law360 looks at these and other new claims in the U.K.
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October 10, 2024
Ejudicate Ran 'Bogus' Student Loan Arbitrations, CFPB Says
The Consumer Financial Protection Bureau announced Thursday that it has banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying the company misled student borrowers about its neutrality and initiated "bogus" arbitration proceedings.
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October 10, 2024
Ousted Chair's Claims To Go Before Arbitrator, Judge Says
A New York federal judge ruled that an arbitrator must decide whether the ousted former chairperson of software investment company The Resource Group International Ltd., who was forced to resign in late 2021 following a widely reported sexual harassment scandal, can pursue some of his claims in arbitration.
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October 10, 2024
OpenAI Calls Musk's Fraud, RICO Suit A Harassing Biz Move
OpenAI asked a California federal judge to toss Elon Musk's claims that the artificial intelligence venture and its top brass engaged in fraud by deciding to make OpenAI a for-profit company, claiming Musk "has been trying to leverage the judicial system for an edge" since launching a competing AI company.
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October 10, 2024
Contractor Slams Stay Bid In $13M Lake Ontario Awards Fight
Geotechnical contractor Soletanche Bachy Canada Inc. has asked a Texas federal court not to pause its suit looking to enforce arbitral awards of $13 million against an infrastructure construction corporation, saying the construction company misrepresents an appeal proceeding in Ontario.
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October 10, 2024
Vape Co. Missed Cutoff To Toss $892K Arb. Loss, 9th Circ. Says
A Ninth Circuit panel on Thursday affirmed a Washington distributor's $892,000 arbitration award in a dispute with vape company Avid Holdings, in an order siding with a district court judge who determined Avid waited too long to dispute the arbitrator's decision.
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October 10, 2024
Colo. Hemp Farm Says Solar Co. Work Caused $200M Loss
Two Colorado hemp growers are suing a subsidiary of energy company AES Corp. for $200 million, claiming it damaged their water lines while constructing a solar panel project, ultimately causing most of their crop to die.
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October 10, 2024
Yale Hospital Says Pension Liens Breach $435M Sale Deal
A hospital operator's purported $4 million pension liability has saddled its properties with liens that breach a $435 million sale contract, Yale New Haven Health told a Connecticut state judge Wednesday in a letter suggesting it may add claims to litigation over its deal with Prospect Medical Holdings Inc.
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October 10, 2024
Faulty New Balance Shoes Killed Olympian's Career, Suit Says
An athlete, who previously competed in two Summer Olympics, claims she missed this year's Paris Games after suffering a "career-ending injury" due to defective running shoes provided by her sponsor, New Balance, according to a lawsuit filed in Rhode Island federal court.
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October 10, 2024
Cigna Says NJ Plastic Surgeons Fraudulently Billed $8.5M
Two Cigna units said a New Jersey-based plastic and reconstructive surgery group billed excessively high fees and then waived patient cost-shares, fraudulently obtaining just over $8.5 million from the insurer in a scheme that dates back nearly a decade.
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October 10, 2024
Suppliers' $7.6M Deal To End Daily Harvest Leek Claims OK'd
A New York federal judge has given the go-ahead to a $7.6 million settlement with suppliers for meal kit delivery service Daily Harvest Inc. to end claims from buyers that a lentil and leek meal caused gastrointestinal illness.
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October 10, 2024
SeaWorld Wraps Up Suit Over COVID Severance Pay
SeaWorld has inked settlements with two employees to resolve a California federal court suit claiming the business ignored its policies by failing to pay employees severance when they were furloughed during the COVID-19 pandemic.
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October 10, 2024
Proskauer Adds Akin Knowledge Management Ace In NY
Proskauer Rose LLP is expanding its private funds team, bringing in an Akin Gump Strauss Hauer & Feld LLP knowledge management expert as a partner in its New York office.
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October 10, 2024
Rock Climbing School Not Covered In Fall Suit, Insurer Says
An insurer said it doesn't owe coverage to a rock climbing school in an underlying suit brought by the family of a teenager who was injured after he fell 35 feet while climbing, telling a North Carolina federal court that the policy does not provide coverage for joint ventures.
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October 10, 2024
Pa. Justices Vexed By Mall's Bid To Dodge Store's Legal Bill
The Pennsylvania Supreme Court on Thursday questioned Harrisburg Mall's argument that it should be let off the hook for Bass Pro Shops' legal bills after the retailer sank a customer's trip-and-fall suit, with one justice suggesting that the alleged need for proof or a judgment incentivized the tenant to lose the case.
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October 10, 2024
Houston Firm Says 'Scurrilous' Ex-Atty Not Entitled To Fees
A Houston law firm is urging a state court to dismiss a lawsuit from a disbarred attorney seeking fees for cases he worked on before going to prison for fraud, arguing that paying him the $3.84 million he is asking for would run afoul of ethics rules and a Texas Supreme Court order.
Expert Analysis
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Series
Teaching Yoga Makes Me A Better Lawyer
Being a yoga instructor has helped me develop my confidence and authenticity, as well as stress management and people skills — all of which have crossed over into my career as an attorney, says Laura Gongaware at Clyde & Co.
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A Vision For Economic Clerkships In The Legal System
As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.
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7 Effects Of DOL Retirement Asset Manager Exemption Rule
The recent U.S. Department of Labor amendment to the retirement asset manager exemption delivers several key practical impacts, including the need for managers, as opposed to funds, to register with the DOL, say attorneys at Ropes & Gray.
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Del. Rulings Make Clear That 'Arbitrator' Isn't A Magic Word
Recent decisions by the Delaware Chancery Court clarify that calling a process an "expert determination" or "arbitration" in a purchase agreement is not sufficient to define it as such, so practitioners must consider how to structure dispute resolution provisions to achieve their clients’ desired result, say attorneys at Troutman Pepper.
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Protecting IP May Be Tricky Without Noncompetes
Contrary to the Federal Trade Commission's view, trade secret law cannot replace noncompetes' protection of proprietary information because intellectual property includes far more than just trade secrets, so businesses need to closely examine their IP protection options, say Aimee Fagan and Ching-Lee Fukuda at Sidley.
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A Look At FERC's Plan To End Reactive Power Compensation
A recent notice of proposed rulemaking indicates that the Federal Energy Regulatory Commission is likely to eliminate compensation for reactive power within the standard power factor range — causing significant impacts for the electric power industry, which relies on income from providing this service, say Norman Bay and Matthew Goldberg at Willkie and Vivian Chum at Wright & Talisman.
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8 Legal Issues Influencing Investors In The Creator Economy
The rapidly expanding digital creator economy — funding for which more than doubled in the U.S. in the first quarter — comes with its own set of unique legal issues investors must carefully consider before diving in, say Louis Lehot and Alan Pate at Foley & Lardner.
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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IP Considerations For Companies In Carbon Capture Sector
As companies collaborate to commercialize carbon capture technologies amid massive government investment under the Infrastructure Investment and Jobs Act, a coherent intellectual property strategy is more important than ever, including proactively addressing and resolving questions about ownership of the technology, say Ashley Kennedy and James De Vellis at Foley & Lardner.
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What's Notable In JAMS' New Mass Arbitration Rules
The Judicial Arbitration and Mediation Services’ recently released guidelines, coming on the heels of similar American Arbitration Association amendments, suggests that mass arbitrations will remain an efficient means for consumers to vindicate their rights against companies, say Jonathan Waisnor and Brandon Heitmann at Labaton Keller.
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How New Rule Would Change CFIUS Enforcement Powers
Before the May 15 comment deadline, companies may want to weigh in on proposed regulatory changes to enforcement and mitigation tools at the disposal of the Committee on Foreign Investment in the United States, including broadened subpoena powers, difficult new mitigation timelines and higher maximum penalties, say attorneys at Venable.
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Series
Swimming Makes Me A Better Lawyer
Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.
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Breaking Down 4th Circ. Pendent Appellate Jurisdiction Ruling
As illustrated by the Fourth Circuit's recent decision in Elegant Massage v. State Farm, denying class certification and granting a motion to dismiss, federal appellate courts continue to struggle with defining the scope of pendent appellate jurisdiction — or jurisdiction over nonfinal orders below, says Joan Steinman at the Chicago-Kent College of Law.
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FTC Noncompete Rule May Still Face Historical Hurdles
The Federal Trade Commission's final rule banning noncompetes might face challenges that could have been avoided with more cautious consideration of the commission's long history of failed lawsuits that went beyond the agency's statutory authority, as well as the mountain of judicial precedent justifying noncompete agreements in employment contracts, say attorneys at BakerHostetler.
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Microplastics At The Crossroads Of Regulation And Litigation
Though there are currently not many federal regulations specifically addressing microplastics as pollutants, regulatory scrutiny and lawsuits asserting consumer protection claims are both on the rise, and manufacturers should take proactive steps to implement preventive measures accordingly, say Aliza Karetnick and Franco Corrado at Morgan Lewis.