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Texas
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May 22, 2024
Justices' CFPB Alliance May Save SEC Courts, Not Chevron
A four-justice concurrence to the U.S. Supreme Court's decision upholding the Consumer Financial Protection Bureau's unique funding scheme last week carries implications for other cases pending before the court that challenge the so-called administrative state, or the permanent cadre of regulatory agencies and career government enforcers who hold sway over vast swaths of American economic life.
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May 22, 2024
Solar Cell Duties May Inadvertently Crush Domestic Industry
A bevy of new duty rules on solar cell imports from Asia, coupled with a government investigation instigated by domestic producers unconventionally claiming to protect future homegrown manufacturing, could backfire on the Biden administration's efforts to boost the nascent domestic sector.
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May 22, 2024
Energy Contractor Can't Get Quick Appeal In 401(k) Suit
A Texas federal judge refused to allow an energy contractor to immediately appeal a decision declining to dismiss a proposed class action accusing it of stacking its retirement plan with underperforming funds, saying allowing the Fifth Circuit to weigh in now would only slow down the litigation.
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May 22, 2024
Developer Had No Duty To Verify Flood Model, Court Hears
A Houston-area developer indicated before a state appeals court Wednesday that the consequences of entering a judgment in favor of more than 400 homeowners whose properties flooded during Hurricane Harvey would be catastrophic, as their claims boil down to the developer's alleged failure to double-check modeling conducted by an outside consultant.
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May 22, 2024
GOP State Leaders Tell Justices Mexico Can't Sue Gunmakers
Republican attorneys general of 26 states plus the Arizona Legislature have urged the U.S. Supreme Court to reverse a First Circuit decision that revived a lawsuit filed by the Mexican government seeking to hold the firearms industry responsible for drug cartel violence due to weapons trafficked across the border.
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May 22, 2024
Uvalde Families Ink $2M Deal With City Over School Shooting
The families of 19 victims of the deadly May 2022 shooting at Robb Elementary School announced Wednesday that they've reached a presuit settlement with the city of Uvalde, Texas, that includes $2 million in payments to the families and commitments to better train police officers in their shooting responses.
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May 22, 2024
House Dems Launch Price-Fixing Probe Of Oil Giants
U.S. Congressman Frank Pallone Jr., as ranking member of the House Committee on Energy and Commerce, revealed Wednesday that he has launched an investigation into seven oil and gas companies over growing concerns that they are illegally colluding to artificially inflate gas prices.
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May 22, 2024
Texas Attys Get Green Light To Charge Subscription Fees
An opinion recently issued by the Professional Ethics Committee of the State Bar of Texas gives Lone Star State lawyers the go-ahead to offer subscription-based legal services so long as the arrangement doesn't result in the charging of an "unconscionable fee."
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May 22, 2024
Dallas-Based PE Firm Clinches $285M Fund Above Target
Dallas-based private equity shop Riata Capital Group on Wednesday announced that it clinched its second private equity fund above target with $285 million in tow.
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May 22, 2024
Tommy's Boats Hits Ch. 11 After Alleged M&T Bank Default
Boat and water sports retailer Tommy's Boats has filed for Chapter 11 protection in Texas bankruptcy court, listing up to $500 million in debt after allegedly breaching an agreement with lender M&T Bank.
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May 21, 2024
Texas Panel Says Mallory Ruling Has No Home There
A Texas appellate court has upheld a ruling preventing a Dallas car repair services company from litigating a trade secrets case there against a Michigan rival over allegedly hiring away a former executive, holding that the U.S. Supreme Court's Mallory decision last year doesn't do much in Texas.
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May 21, 2024
Feds Tell 5th Circ. To Ignore Park Skirmish In Razor Wire Row
The federal government urged the Fifth Circuit to ignore a series of events surrounding concertina wire fencing Texas has erected along the U.S.-Mexico border, arguing the fight over a park has no bearing on whether a district court was wrong in refusing to ban border patrol agents from cutting the barrier.
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May 21, 2024
Full 5th Circ. Urged To Rethink Blocking Student Loan Rule
The U.S. Department of Education has asked the full Fifth Circuit to reconsider a recent preliminary injunction a three-judge panel ordered blocking changes to a program providing student loan forgiveness to borrowers defrauded by higher education institutions. It said the panel wrongly held that the department doesn't have the authority to determine whether a borrower has a valid defense to repayment.
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May 21, 2024
Banks Urged To Vote Out Exxon Leaders Who Sued Investors
A group of state and city financial officials sent letters to some of the biggest banks and asset managers Tuesday urging them to vote against Exxon Mobil Corp.'s CEO and lead independent director at an upcoming annual meeting because of the company's lawsuit against a pair of environmentally minded activist investors.
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May 21, 2024
EEOC Guidance Over Gender Identity Can't Stand, Texas Says
The Texas attorney general requested Tuesday that a federal judge do away with the U.S. Equal Employment Opportunity Commission's enforcement guidance over gender identity and Title VII, arguing that the agency must be stopped from requiring employers' compliance with pronoun and bathroom accommodations.
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May 21, 2024
Texas Court Questions Luxottica On 'Playing Favorites' In Sale
A Texas appellate court on Tuesday asked whether an eyewear conglomerate was "playing favorites by not disclosing" alleged fraud by its franchisees in a sale of two stores to other franchisees, questioning Luxottica's assertion it had to keep its hands off the transaction.
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May 21, 2024
NYC Pension Funds Call For 'No' Vote On Musk's Tesla Pay
Five New York City pension funds have joined with seven other Tesla Inc. institutional investors in calls for stockholders to vote down CEO Elon Musk's once-$56 billion compensation plan and vote out two board allies, branding the pay excessive and the two directors too close to Musk.
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May 21, 2024
OSHA Hit With Constitutional Challenge To Walkaround Rule
A dozen business groups led by the U.S. Chamber of Commerce sued the Occupational Safety and Health Administration over the so-called walkaround rule in Texas federal court Tuesday, challenging the constitutionality of a two-month-old regulation that expanded workers' right to bring in outside representatives during job safety inspections.
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May 21, 2024
GAO Denies Sysco's Protest Of Up-To $126M Subsistence Deal
The U.S. Government Accountability Office denied a Sysco unit's protest of an up-to $126 million defense subsistence supply deal, saying the company failed to show the Defense Logistics Agency had to consider the awardee's performance on a similar interim deal.
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May 21, 2024
Counties Not 'Persons' In Texas Opioid MDL Appeal
A Texas appeals panel found Tuesday that counties are not considered "persons" under the state's common law and therefore are not subject to the Texas Medical Liability Act's requirement that they serve expert reports to pharmacy defendants in the state's opioid multidistrict litigation.
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May 21, 2024
20 States Challenge Biden Admin's NEPA Rule
A group of 20 states sued the Biden administration's Council on Environmental Quality on Tuesday in North Dakota federal court, challenging a recent environmental permitting rule they claim unlawfully changes the National Environmental Policy Act's review procedures "into a substantive set of requirements to achieve broad and vague policy goals."
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May 21, 2024
22 States Tell 11th Circ. Corp. Transparency Act Goes Too Far
The federal Corporate Transparency Act unconstitutionally displaces state authority and its enforcement would economically harm states and their residents, attorneys general from 22 states told the Eleventh Circuit, urging it to uphold a ruling that struck down the law.
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May 21, 2024
PE Firms Close Separate Funds With Nearly $1.3B Total In Tow
Winston & Strawn LLP-advised private equity shop Paceline Equity Partners LLC and Kirkland & Ellis LLP-advised private equity firm Eir Partners on Tuesday separately announced that they have clinched funds totaling nearly $1.3 billion combined, with the former's fund focusing on corporate debt and real assets and the latter's targeting healthcare technology investments.
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May 21, 2024
Houston Club Asks Court To Halt Storm Damage Demolition
A Houston nightclub damaged in last week's severe storm told a Harris County court Monday that city officials improperly declared that the building should be demolished.
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May 21, 2024
ABA Faces Racial Bias Complaint Over Diversity Programs
A conservative nonprofit on Tuesday hit the American Bar Association with a Title VI complaint, claiming a handful of "nefarious" ABA-led programs meant to connect minority law school students with judges are "racially discriminatory."
Expert Analysis
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Series
Playing In A Rock Cover Band Makes Me A Better Lawyer
Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.
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Series
The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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What ESG Investing Ruling Means For Fiduciaries
A Texas federal court’s recent ruling — upholding a U.S. Department of Labor rule allowing retirement plan fiduciaries to consider ESG factors in certain investment decisions — provides welcome clarity for plans governed by the Employee Retirement Income Security Act that have long been buffeted by partisan noise and misinformation, say attorneys at Covington.
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Louisiana's Toxic Tort Barrier May Be Weakening
Louisiana's short prescriptive period to bring a survival action has long served as an important barrier against toxic tort claims, but the plaintiffs bar will likely rely on the recent Fifth Circuit decision in Jack v. Evonik to argue that anyone who arguably suffered injury based on exposure to some toxic substance may have a claim, say attorneys at Kirkland.
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How To Navigate The FTC's New Private Equity Frontier
The Federal Trade Commission's recent district court complaint against an anesthesia firm and its private equity partner tests key bounds of the agency's stand-alone authority, and defense strategies can include challenges to both the geographic and the service market fronts, say attorneys at Baker McKenzie.
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Opinion
Newman Suspension Shows Need For Judicial Reform
The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.
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How 2 Cases Could Undermine The Anti-ESG Movement
A decision from a federal court in Texas and another case currently making its way through Missouri federal court signal an emerging judicial recognition of the link between environmental, social and governance considerations and maximizing financial returns, say Amy Roy and Robert Skinner at Ropes & Gray.
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5th Circ. Ruling Shows Need For Proffer Terms Negotiation
The Fifth Circuit’s recent U.S. v. Shah decision, holding that a defendant breached his proffer agreement, illustrates why defense attorneys should insist on negotiating the terms of such agreements with prosecutors to protect their clients at trial, say attorneys at Haynes Boone.
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How And Why Your Firm Should Implement Fixed-Fee Billing
Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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Opinion
Judicial Independence Needs Defense Amid Political Threats
Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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2nd Circ. OT Ruling Guides On Pay For Off-The-Clock Work
While the Second Circuit’s recent holding in Perry v. City of New York reiterated that the Fair Labor Standards Act obligates employers to pay overtime for off-the-clock work, it recognized circumstances, such as an employee’s failure to report, that allow an employer to disclaim the knowledge element that triggers this obligation, say Robert Whitman and Kyle Winnick at Seyfarth.
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FTC's Health Co. Suit Indicates Agency's Private Equity Focus
The Federal Trade Commission's latest lawsuit against an anesthesia company and its private equity investor highlights the agency's willingness to regulate the health care industry even when relevant acquisitions are relatively dated or when the controlling entity's economic interest is under 50%, say attorneys at Simpson Thacher.
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Cases Linking Baby Food, Autism Pose Causation Challenges
Major baby food producers are now in the crosshairs of regulators, consumer advocates and plaintiffs attorneys over allegations their products contain heavy metals that harm children's development — but it will be difficult for plaintiffs to establish causation, as shown by the lengthy court battles over tobacco and talc, says Vineet Dubey at Custodio & Dubey.