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Commercial Contracts
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July 23, 2024
'Surface Water' Stumps Mass. Justices In Loss For Insurers
The top court in Massachusetts on Tuesday ruled in favor of a hospital seeking insurance coverage stemming from a severe rainstorm, saying it's unclear if water that pooled on the hospital's roof should be considered "surface water" that would trigger policy limits on flood damage.
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July 22, 2024
Chicago Firm Seeks $2M For Ex-Atty's Alleged Client Poaching
Chicago firm Loftus & Eisenberg Ltd. has filed suit in Illinois state court accusing a former attorney's new firm of helping the lawyer poach clients by encouraging them to leave with him, even though the new firm couldn't support his practice.
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July 22, 2024
Fla. Jury Says Insurance Broker Owes $3M For Worker Poaching
A Florida federal jury has awarded more than $3 million in damages to a New York insurance brokerage in a trial over employment contracts, finding that a competitor interfered with its business by helping two employees breach fiduciary duties when they switched jobs and brought client lists with them.
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July 22, 2024
Gazprom Unit Illegally Seized Helium Containers, Linde Says
Linde Inc. sued RusChemAlliance and Gazprom in New York federal court Friday alleging they illegally seized helium containers in Russia as collateral in an unrelated contractual fight they have with nonparty engineering firm Linde GmbH over gas plant projects shuttered amid expanded sanctions against Russia following its invasion of Ukraine.
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July 22, 2024
House Dems Urge Tai To End Investor-State Dispute Deals
House Democrats are urging the U.S. Trade Representative to nix a mechanism allowing foreign investors to challenge government policies outside Western Hemisphere countries' judicial systems, saying corporations have used it as "ransom" to gain more industry-friendly results.
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July 22, 2024
Jury Delivers $138M Verdict In Bitcoin Mining Consultant Suit
A California federal jury unanimously found bitcoin mining firm Marathon Digital Holdings Inc. liable for nearly $139 million in damages over allegedly breaching a consultant's contract when it cut him out of the deal he brought to the firm.
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July 22, 2024
Insurer Says Bank Must Pay Its $1.1M Drawdown Request
A surety for an oil and gas operator that has recently sought Chapter 11 protection told a Washington federal court that a bank has repeatedly failed to hold up its end of an "irrevocable letter of credit," alleging the bank owes it over $1.1 million.
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July 22, 2024
Fifth Third Sued In $20M Escrow Dispute Over Dividend Solar
A private equity seller of a solar panel fintech lender that Fifth Third Bank bought in 2022 has sued the bank in New York federal court to free up $20 million in indemnity escrow funds that it alleges the bank has tried improperly to withhold over state investigations tied to the fintech.
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July 22, 2024
Scanner Maker Tells 4th Circ. Contract Ends Honeywell Suit
Laser technology company Opto Electronics urged the Fourth Circuit to overturn a jury finding that it was liable for ripping off Honeywell International over royalties for barcode scanners, arguing that a contract between the companies foreclosed the result as a matter of law.
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July 22, 2024
Anthem Blue Cross Wants Lab's $3.8M Suit Tossed
Anthem Blue Cross Blue Shield of Connecticut has asked a federal judge to toss a medical lab's lawsuit seeking nearly $3.8 million from it for refusing to pay for or underpaying for lab work and COVID-19 tests, arguing the claims are "baseless."
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July 22, 2024
Dispute Paused For Arbitration In $51M NOLA Airport Case
A Louisiana federal judge has stayed litigation initiated by a group of insurance companies in a $51 million dispute stemming from alleged design defects in a $1 billion terminal project at the Louis Armstrong New Orleans International Airport, saying claims against the insured companies will be decided in arbitration.
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July 22, 2024
Royalty Co. Wins Bid To Confirm Award Against Utopia Music
A New York federal judge has granted a petition by the former owners of artist royalties company Lyric Financial LLC to confirm an arbitral award against Lyric's buyers, Utopia Music Holdings (US) Inc. and its Swiss parent, Utopia Music AG.
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July 22, 2024
Energy Co. Accused Of Putting Off $5M Construction Project
A Houston energy company has accused its Austin business partner of failing to build a more than $5 million liquid distillation machine over four years after executing a contract to do so.
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July 22, 2024
Lexitas Says IT Consulting Co. Didn't Finish $2M Project
Litigation services company Depositions Solutions LLC, which does business as Lexitas, said in a Texas county complaint Monday that a Philadelphia-based information technology company hired to upgrade its web services failed to complete a more than $2 million project.
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July 22, 2024
'Wolf Of Airbnb' Gets 51 Mos. As Judge Sees Lack Of Remorse
A Manhattan federal judge hit the Florida man who styled himself the "Wolf of Airbnb" with over four years in prison Monday, saying the risk is high that he will break the law again after scamming New York City landlords.
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July 22, 2024
1st Circ. Doubts Calif. Law Governs DraftKings Job Fight
A former DraftKings executive seeking to undo his noncompete contract appeared to make little headway with the First Circuit on Monday as he argued that Massachusetts law should take a backseat in the dispute to California's more worker-friendly statute.
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July 22, 2024
Conn. AG Accuses Solar Cos. Of Illegal Sales Tactics
Connecticut Attorney General William Tong took three solar companies and two individuals to court for allegedly deceiving consumers into signing long-term contracts without informed consent and impersonating some people who refused so they could enter fraudulent solar contracts on those consumers' behalf.
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July 19, 2024
9th Circ. Judge Open To Reversing Google's Privacy Win
A Ninth Circuit judge appeared receptive Friday to reversing Google's summary judgment win in Chrome users' proposed privacy class action, telling Google's counsel that the standard is what a reasonable consumer would expect and "you have a much higher opinion of the average intelligence of the computer user than I."
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July 19, 2024
Class Seeks $1.5B Settlement In Payday Loan Dispute
A class of borrowers has urged a Virginia federal court to approve what would be the largest settlement ever obtained in a challenge to participants in the tribal lending industry, arguing that the agreement would give significant relief to hundreds of thousands in the form of debt cancellations and cash payments.
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July 19, 2024
'Vanderpump' Stars Face Fresh Sandwich Shop Suit
The former chef at a Los Angeles sandwich shop owned by "Vanderpump Rules" cast members Ariana Madix and Katie Maloney has accused the reality stars of refusing to honor a partnership agreement under which she was entitled to a 10% ownership stake, according to a suit filed in Los Angeles County.
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July 19, 2024
Judge Tosses Traders' Counterclaims In Trade Secrets Case
A Manhattan federal judge has ruled that Millennium Management LLC and two of its employees cannot yet use the federal trade secrets law to claim attorney fees with their allegation that investment firm Jane Street Group LLC sued them in bad faith over a proprietary trading strategy.
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July 19, 2024
2nd Circ. Rejects Webuild Discovery Bid In Panama Arbitration
The Second Circuit on Friday affirmed a Manhattan federal judge's order that quashed a subpoena from Italian builder Webuild SPA to engineering firm WSP USA for use in an arbitration related to an expansion of the Panama Canal.
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July 19, 2024
Co. Says La. Utility Ditched Millions In Restitution Claims
A Louisiana utility company wrongfully refused to accept $42.3 million in restitution for deficiencies found by a consulting company in meter technology that collects energy usage data, the consulting company alleged in Louisiana federal court.
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July 19, 2024
Knitting Co. Tells NC Justices Ex-CEO Can't Shirk $3M Verdict
A high-speed knitting machine manufacturer is looking to defend a $3 million trial victory against its onetime CEO who was fired for self-dealing, telling the North Carolina Supreme Court that he failed to preserve many of the arguments he now makes on appeal before the lower court.
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July 19, 2024
San Francisco Lawmaker Floats Rent Algorithm Software Ban
A San Francisco lawmaker proposed a ban that would prohibit selling or using software that can be used for rent price fixing, and took aim at property management software companies such as RealPage and Yardi for their software allegedly being used for such a purpose.
Expert Analysis
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Managing Legal Risks After University Gaza Protests
Following the protests sparked by the war in Gaza, colleges and universities should expect a long investigative tail and take steps to mitigate risks associated with compliance issues under various legal frameworks and institutional policies, say Wiley's Diana Shaw and Colin Cloherty.
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Debate Over CFPB Definition Of Credit Is Just Beginning
The Consumer Financial Protection Bureau has recently worked to expand the meaning of credit, so anyone operating on the edges of the credit markets, or even those who assumed they were safely outside the scope of this regulatory perimeter, should pay close attention as legal challenges to broad interpretations of the definition unfold, says John Coleman at Orrick.
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Abu Dhabi Ruling Hints At More Arbitration-Friendly Approach
The international and comparative rationale an Abu Dhabi onshore court used to decide that an arbitration agreement referencing a defunct arbitration center was still enforceable suggests that the UAE judiciary may be adopting a more flexible, pro-arbitration framework and stabilizing Dubai's arbitration landscape, say attorneys at Reed Smith.
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Series
Fishing Makes Me A Better Lawyer
Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge at Robinson Bradshaw.
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A Healthier Legal Industry Starts With Emotional Intelligence
The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.
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To Make Your Legal Writing Clear, Emulate A Master Chef
To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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DC Circ. Ruling Heightens HHS Contract Pharmacy Challenges
The D.C. Circuit's recent ruling that the Section 340B program does not bar manufacturers from restricting deliveries of discounted drugs to contract pharmacies represents a second strike against the U.S. Department of Health and Human Services' current contract pharmacy policy and raises the stakes surrounding an upcoming Seventh Circuit ruling on the same issue, say attorneys at Foley Hoag.
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Trending At The PTAB: Real Party In Interest And IPR
The Patent Trial and Appeal Board’s recent Luminex v. Signify decision, finding a complaint seeking indemnification may be treated as a public demand sufficient to establish a real party-in-interest, shows that the board continues to apply a broad and expansive definition to that term, say Yicong (Eve) Du and Yieyie Yang at Finnegan.
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How Employers, Attorneys Can Respond To Noncompete Ban
As the Federal Trade Commission's recently issued noncompete ban faces ongoing legal challenges, now is a good time for employers to consider whether they want to take a wait-and-see approach before halting use of noncompetes and for practitioners to gain insight into other tools available to protect their clients' business interests, says Jennifer Platzkere Snyder at Dilworth Paxson.
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Perspectives
Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.
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CFPB's Expanding Scope Evident In Coding Bootcamp Fine
The Consumer Financial Protection Bureau's recent penalty against a for-profit coding bootcamp that misrepresented its tuition financing plans is a sign that the bureau is seeking to wield its supervisory and enforcement powers in more industries that offer consumer financing, say Jason McElroy and Brandon Sherman at Saul Ewing.
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4 Arbitration Takeaways From High Court Coinbase Ruling
The U.S. Supreme Court's May 23 decision in Coinbase v. Suski, which provides clarity to parties faced with successive contracts containing conflicting dispute resolution provisions, has four practical impacts for contracting parties to consider, say Charles Schoenwetter and Eric Olson at Bowman and Brooke.
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Series
Playing Music Makes Me A Better Lawyer
My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.
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How Attys Can Avoid Pitfalls When Withdrawing From A Case
The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.