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Commercial Contracts
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February 25, 2025
Pa. Biotech Co. Can't Escape $4M Trade Secrets Award
A Delaware vice chancellor declined Monday to nix a nearly $4 million arbitral award issued to Finnish company UPM-Kymmene Corp. in a long-running trade secrets dispute, ruling that a link between the arbitrator and the Finnish company's counsel at DLA Piper was "at most, an attenuated connection."
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February 25, 2025
Drinks Co. Ex-CEO Files $732M Sanctions Motion Against Firm
The former CEO of an energy drinks company on Tuesday urged a Florida state court to impose $732 million in sanctions against a law firm in a legal fees dispute, saying its attorneys' litigation misconduct caused serious financial harm while representing him in a separate federal bankruptcy case.
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February 25, 2025
Chicago Escapes Bulk Of Insurer's $26M Willis Tower Suit
An Illinois federal judge dismissed the majority of a dozen counts brought by Travelers against the city of Chicago and its water district seeking repayment for $26 million in flood damage to Willis Tower, leaving only common law negligence claims.
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February 25, 2025
Fla. Bill Targets Last-Resort Coverage For Unsafe Condos
A bill introduced ahead of Florida's 2025 legislative session looks to bar the state's Citizens Property Insurance Corp. from providing or renewing coverage policies for condominiums that fall short of inspection requirements.
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February 25, 2025
Warner Bros. Can't Nix 'ER' Ripoff Suit Over 'The Pitt'
Warner Bros. Television can't nix a contract breach lawsuit filed by the estate of "ER" creator Michael Crichton alleging the media company's medical drama, "The Pitt," is an unauthorized reboot of "ER," after a California judge ruled the plaintiffs' evidence shows, on its face, WB's show is derived from "ER."
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February 25, 2025
Businessman Looks To Nix $21M Arbitral Award
A businessman who controls real estate investment firm World Capital Properties Ltd. is urging the Eleventh Circuit to nix the enforcement of a $21.3 million arbitral award against him, arguing that he never signed an underlying arbitration agreement and objected "early, often and consistently" to the arbitration.
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February 25, 2025
Judge Lets RJ Reynolds, Altria Seal Docs From Juul Deal
A federal judge in North Carolina on Tuesday granted requests by tobacco giant R.J. Reynolds Vapor Co. and rival Philip Morris' parent company to seal documents in their ongoing royalty dispute, keeping details of their licensing agreements with the vape brand JUUL confidential.
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February 25, 2025
FTC Wins Discovery Spat In Amazon Prime Subscription Suit
A Washington federal judge won't force the Federal Trade Commission to share with Amazon discussions during past rulemaking about the scope of a federal law protecting online shoppers from deceptive billing, concluding for a second time that such information is irrelevant to whether the company's Prime subscription practices are illegal.
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February 25, 2025
J&J Says Samsung Is Breaking Deal Over Stelara Biosimilar
Johnson & Johnson and Janssen Biotech have launched a breach of contract suit against Samsung Bioepis over their agreement to let Samsung launch a biosimilar version of J&J's blockbuster biologic Stelara before all patents expire, accusing the company of violating the provision against assigning or sublicensing the patent rights to other parties.
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February 25, 2025
10th Circ. Affirms Falsity Claims Bar Coverage Of HOA Fight
The Tenth Circuit affirmed that two AIG units need not cover a ski resort's homeowners association and other insureds found liable for trying to induce the owner of resort condo units to pay $15.5 million in fees it didn't owe, pointing to what are known as knowledge-of-falsity exclusions.
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February 24, 2025
Apple Exec Had Doubts Over New App Store Fee Compliance
Apple fellow Phil Schiller testified Monday during a high-stakes compliance evidentiary hearing that he had initially been concerned that Apple's decision to implement a new 27% commission on purchases made outside Apple's App Store wouldn't comply with the court's 2021 anti-steering injunction in its yearslong antitrust fight with Epic Games.
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February 24, 2025
US Steel, Nippon Urge Court Not To Toss Cleveland-Cliffs Suit
U.S. Steel and Nippon Steel have pressed a Pennsylvania federal court to leave intact their suit accusing Cleveland-Cliffs and United Steelworkers union leadership of illegally conspiring to prevent their planned $14.9 billion merger, arguing that they're trying to block an "unlawful agreement," not shut down political speech.
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February 24, 2025
Dominican Republic Slams Report Favoring $44M Award
The Dominican Republic has urged a D.C. federal court to reject a magistrate judge's recommendation to enforce a nearly $44 million arbitral award issued after the country terminated a landfill concession, saying there was never an underlying arbitration agreement.
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February 24, 2025
Lloyd's Says Cadwalader's Suit Claims Nonexistent Tort
A Lloyd's of London syndicate has urged a North Carolina judge to toss part of Cadwalader Wickersham & Taft LLP's coverage lawsuit stemming from a data breach, saying there's no tort remedy for the allegation that the insurer exposed the firm's confidential information in a court filing.
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February 24, 2025
Insurer Needn't Cover Hospital's $2.5M Virus Vax Probe Costs
A Chubb unit has no obligation to pay an Illinois hospital for $2.5 million in legal costs associated with responding to federal and state probes into its COVID-19 vaccine distribution program, a federal court ruled, finding that the policy's $1 million regulatory claims sublimit applies.
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February 24, 2025
Charter Communications Keeps Trade Secrets Suit In Conn.
A Charter Communications Inc. trade secrets lawsuit against a former Colorado-based vice president will remain in Connecticut, a federal judge ruled from the bench on Monday, greenlighting the company's request for a preliminary injunction in its home state.
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February 24, 2025
Colo. Justices Toss Student's COVID Refund Class Action
A Colorado State University student seeking classwide fee refunds for campus shutdowns during the coronavirus pandemic can't allege unjust enrichment after her breach of contract claims were tossed, according to a state Supreme Court decision Monday that found the student's position would "obliterate the difference" between the two claims.
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February 24, 2025
Texas Bank Fights To Keep $28M In Assets In Ginnie Mae Suit
A bank told a Texas federal court that it will lose $28 million worth of collateral assets if Ginnie Mae secures a summary judgment win in a suit over a vacated first-priority lien.
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February 24, 2025
Placement Co. Hit With False Ads Suit Over Referral Model
A company that places senior citizens in retirement homes was hit with proposed class claims alleging it falsely advertises free services and steers business away from communities that decline to participate in its "pay-to-play" business model.
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February 24, 2025
Mich. Sales Co., Auto Parts Maker Settle $6M Commission Suit
A Michigan-based auto sales company has reached a settlement with an Italian auto parts maker the company alleges owes $6 million in commissions for building the foreign business' relationship with General Motors.
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February 24, 2025
Investors Don't Have 'Shred' Of Fraud Evidence, Exxon Says
Exxon Mobil Corp. has told a Texas federal judge that an investor class doesn't have a "shred of evidence" that the company engaged in the stock inflation scheme the investors allege.
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February 24, 2025
FCA Didn't Forfeit Arbitration Rights In Defect Suit, Judge Says
An arbitrator must decide whether some drivers alleging Fiat Chrysler sold them vehicles with defective engines that shut off during use can pursue their claims, a Michigan federal judge said, finding the automaker didn't waive its right to seek arbitration by attacking the claims' merits before seeing if the drivers' purchase agreements had an arbitration clause.
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February 24, 2025
Law Firm Must Face Malpractice Suit Over Home Project Case
The New Jersey Appellate Division reinstated a malpractice suit against a Garden State firm on Monday in a published decision finding that the plaintiff was allowed to assign some of the proceeds of the case to third parties ahead of time.
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February 24, 2025
Penn National Settles NC Hurricanes Coverage Suit
Penn National Mutual Casualty Insurance Co. settled a property owner's insurance payout suit filed in North Carolina federal court just before the suit headed to trial.
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February 24, 2025
Mass. City Says Ex-Team Owners Reneged On Stadium Fees
The city of Brockton, Massachusetts, claims in a lawsuit filed in state court that the former owners of a minor league baseball team owe the economically struggling community more than $68,000 for the use of a city-owned stadium for games and a concert last year.
Expert Analysis
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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FTC Focus: How Scrutiny Of PBMs And Insulin May Play Out
Should Express Scripts' recent judicial challenge to the Federal Trade Commission succeed, any new targets could add litigation and choice of forum to their playbooks, and potential FTC court action on insulin could be forced to parallel venues as the issues between the commission and PBMs evolve, say attorneys at Proskauer.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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Kubient Case Shows SEC's Willingness To Charge Directors
The U.S. Securities and Exchange Commission's recent fraud charges against Kubient's former CEO, chief financial officer and audit committee chair signal a willingness to be more aggressive against officers and directors, underscoring the need for companies to ensure that they have appropriate channels to gather, investigate and document employee concerns, say attorneys at Jenner & Block.
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3 Coverage Tips As 2nd Circ. 'Swipes Left' On Tinder Claim
The Second Circuit's recent opinion in Match Group v. Beazley Underwriting, overturning Tinder's victory on its insurer's motion to dismiss a coverage action, reinforces three best practices policyholders purchasing claims-made coverage should adhere to in order to avoid late-notice defenses, say Lynda Bennett and Alexander Corson at Lowenstein Sandler.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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Boeing Ruling Is A Cautionary Tale For Trade Secret Litigants
A Washington federal court’s recent ruling canceling a $72 million jury award against Boeing because Zunum Aero had failed to properly identify its trade secrets highlights the value of an early statement of alleged secrets, amended through discovery and used as a framework at trial, says Matthew D'Amore at Cornell.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Google And The Next Frontier Of Divestiture Antitrust Remedy
The possibility of a large-scale divestiture in the Google search case comes on the heels of recent requests of business breakups as remedies for anticompetitive conduct, and companies should prepare for the likelihood that courts may impose divestiture remedies in the event of a liability finding, say Lauren Weinstein and Nathaniel Rubin at MoloLamken.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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Exploring Practical Employer Alternatives To Noncompetes
With the Federal Trade Commission likely to appeal a federal court’s recent rejection of its noncompete ban, and more states limiting the enforceability of these agreements, employers should consider back-to-basics methods for protecting their business interests and safeguarding sensitive information, says Brendan Horgan at FordHarrison.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Service Agreement Lessons From July's Global Tech Outage
The worldwide outages recently caused by Crowdstrike Holdings' misconfigured software update highlight the need to evaluate potential IT vendors, negotiate certain service agreement terms, and review existing agreements and diligence forms to help prevent future disruptions and mitigate the fallout should one occur, say attorneys at WilmerHale.
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Rise Of Transpo Contractors Brings Insurance Disputes
As more independent contractors are contracted and subcontracted in the delivery industry, companies must be prepared to defend claims from drivers who are injured on the job as they are often seeking to establish an employment relationship with one of the entities in the chain, says Nathan Milner at Goldberg Segalla.
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Co-Tenancy Clause Pointers For Shopping Center Landlords
Large retail tenants often require co-tenancy provisions in their leases, entitling them to remedies if a shopping center's occupancy drops in certain ways, but landlords must draft these provisions carefully to avoid giving tenants too much control, says Gary Glick at Cox Castle.