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Texas
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May 20, 2024
Crypto Groups Move To Ditch 'Irrational' SEC Dealer Rule
A pair of crypto industry groups suing the U.S. Securities and Exchange Commission over its expansion of the dealer definition have asked a Texas federal judge to grant them a win in the suit and cut down the "unexplained and irrational rulemaking" they claim violated the rulemaking process.
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May 20, 2024
CoStar, Hotel Giants Defend Benchmarking In Price-Fixing Suit
CoStar Group Inc. and a contingent of big-name hotels have asked a Washington federal judge to toss an antitrust lawsuit claiming the hotel operators share industry analytics to inflate luxury hotel room prices, arguing the proposed class action is riddled with legal defects.
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May 20, 2024
Texas Atty Chided For 'Crappy Strategy' Of Ducking Subpoena
A transplant surgeon at Memorial Hermann Texas Medical Center accused of tampering with patients' donor acceptance criteria failed to show up to a Houston court hearing — partly thanks to his attorney — in three families' wrongful death case after being subpoenaed, in what a Harris County judge told his attorney was "a crappy strategy."
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May 20, 2024
Texas Judge Rescinds Denial Of SpaceX's Rethink Bid
A Texas federal judge on Monday walked back his decision last week not to reconsider an order transferring SpaceX's National Labor Relations Board constitutionality dispute to a California court, saying he is "awaiting input from the Fifth Circuit."
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May 20, 2024
SEC Says Firm Broke Short-Selling Rules During Pandemic
An Austin, Texas-based trading firm has agreed to pay $1.5 million as part of a deal to end U.S. Securities and Exchange Commission claims it unlawfully bought follow-on offering shares of companies it had just shorted, including those of cruise ship companies bruised by 2020 COVID-19 outbreaks.
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May 20, 2024
Tesla Pushes Charging Station Patent Suit Out Of Texas
Despite Elon Musk's decision to move the headquarters of his company to the Western District of Texas, Tesla was able to persuade a federal judge in Austin to send an infringement suit targeting its charging stations to California, where the company was previously based.
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May 20, 2024
Texas' Naive Witness 'Unacceptable' In Google Ad Tech Suit
A judge overseeing a Texas-led lawsuit accusing Google of anti-competitive conduct in the display advertising market has ordered the attorneys general bringing the litigation to provide an adequate witness who can speak to certain facts about the investigation, calling their failure to do so "puzzling and unacceptable."
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May 20, 2024
5th Circ. Halts Texas County's Electioneering Rules
The Fifth Circuit paused new electioneering rules in Palo Pinto County, Texas, on Sunday, the day before the start of early voting for a local primary runoff election, handing a victory to conservative groups that sought to strike down county rules limiting how they could electioneer outside polling locations.
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May 20, 2024
Biofuel Groups Urge High Court To Undo 5th Circ. Ruling
Two biofuel trade associations called on the U.S. Supreme Court on Monday to review a Fifth Circuit decision vacating the U.S. Environmental Protection Agency's denial of small refiners' requests for exemptions from their renewable-fuel program obligations, highlighting a split with five other circuit courts.
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May 20, 2024
Nonprofits Renew Bid To Enter Red States' Border Wall Suit
Two nonprofits urged a Texas federal court to add them to a challenge to the Biden administration's plans to use border wall appropriations for remediation projects, saying they were shocked by the administration's acceptance of an order suspending the plan.
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May 20, 2024
7-Eleven Says Insurer Must Cover Wrongful Death Suit
The insurer of a Houston 7-Eleven lessee facing negligence claims after one person was fatally shot and another was injured on its property must also cover 7-Eleven corporate in the litigation, the convenience store giant said, though conceding the lessee store's policy didn't specifically include 7-Eleven as an additional insured.
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May 20, 2024
Stanley Black & Decker Nixes $3.8M Factory Equipment Suit
Stanley Black & Decker Inc. has dropped a $3.8 million lawsuit against a supplier that it accused of providing faulty equipment for a factory in Texas that ultimately shut down, according to a filing in Connecticut federal court.
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May 20, 2024
Catching Up With Delaware's Chancery Court
Delaware was full of drama last week, as proposed changes to the state's corporate law statutes raised eyebrows and a professor's friend-of-the-court brief sparked a very unfriendly public exchange. Delaware's court of equity banged the gavel on pipeline and social media disputes, and shareholders filed new suits alleging insider trading, vote bungling, unfair stock buybacks and merger shenanigans. In case you missed any of it, here's the recap of all the top news last week from Delaware's Chancery Court.
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May 20, 2024
Atty Wants In On Ch. 11 Pause In Fraud Suit Against Law Firm
A Houston attorney being sued for alleged misconduct in soliciting hurricane victims has asked a federal court to include him in a bankruptcy-triggered pause in the proceedings against his law firm, arguing that any judgment against him would effectively be against the law firm.
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May 20, 2024
BakerHostetler Hires Baker Botts Crisis Expert In Houston
BakerHostetler announced Monday that it has tapped an energy-savvy litigator to lead its new catastrophic accident response team who came aboard in Houston from Baker Botts LLP.
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May 20, 2024
High Court Skips Fight Over 'Impossible' TM Name
The U.S. Supreme Court on Monday declined a cert petition from Illinois-based marketing consulting firm Impossible X LLC, which had asked the justices to review a Ninth Circuit ruling that revived a trademark complaint against it from veggie-burger maker Impossible Foods Inc.
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May 20, 2024
Davis Polk, Wachtell Guide $2B SouthState Banking Deal
Florida-based SouthState Corp. said Monday it has agreed to purchase Texas-based Independent Bank Group Inc. in an all-stock transaction valued at approximately $2 billion, with Davis Polk and Wachtell steering the regional lenders on the deal.
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May 17, 2024
Real Estate Authority: Loan Doctors, CFIUS, Mixed-Use Boom
Catch up on the week's key developments by state from Law360 Real Estate Authority — including potential conflicts of interest in special servicing, a data center buy stymied by the Committee on Foreign Investment in the United States, and one hospitality pro's prediction for more mixed-use residential and hotel demand.
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May 17, 2024
DC Circ. Probes Carbon Capture In LNG Approval Challenge
The D.C. Circuit on Friday questioned the Federal Energy Regulatory Commission's decision to reapprove a Texas liquefied natural gas terminal without considering the terminal developer's proposal to add environmentally friendly modifications, amid renewed challenges to the agency's authorization of LNG facilities in the Lone Star State.
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May 17, 2024
3rd Circ. Won't Rethink Cancellation Of $10M Win In TM Battle
Texans can continue to be subjected to the earworm that is the "Kars 4 Kids" jingle, as the Third Circuit declined this week to reconsider its ruling against a local charity that had temporarily won a $10 million judgment in a trademark dispute over the name.
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May 17, 2024
Texas Student Groups Sue Abbott Over Antisemitism Rule
Two chapters of Students for Justice in Palestine at Texas universities and the Democratic Socialists of America have slapped Texas Gov. Greg Abbott with a complaint arguing that a recent executive order instructing campus officials to rid public universities of a viewpoint critical of Israel violates the First Amendment.
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May 17, 2024
Frontier Attacks Ex-CEO's $17M Life Insurance Tax Refund Bid
Pointing to a 2004 arbitration agreement and criticizing its ex-CEO's compensation, Frontier Communications has asked a Connecticut state court judge to hang up on a call by Leonard Tow to litigate a $17 million demand for reimbursements on life insurance policies.
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May 17, 2024
Home Distillers Tell Feds Ban Fails Under Spirit Of The Law
The Hobby Distillers Association said the federal government is exceeding its constitutional powers and treading on states' rights by banning homemade liquor under its taxing authority, as the group laid out its position Friday at the request of a Texas federal judge.
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May 17, 2024
T. Boone Pickens' Ranch Buyer Can Proceed With TM Suit
The new owner of the late T. Boone Pickens' luxurious hunting estate in the Texas Panhandle can proceed with a lawsuit accusing a neighboring property owner of infringing the ranch's trademark rights by using them to advertise a land sale, a federal judge concluded Thursday.
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May 17, 2024
$5M Candy Recall Coverage Dispute Moved To Texas Court
An insurer's lawsuit disclaiming coverage for a candy manufacturer over a near $5 million recall over metal fragments found in certain gummy candies belongs in Texas, a New York federal judge has ruled, finding that the action was "filed preemptively to deprive the natural plaintiff of its choice of forum."
Expert Analysis
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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End To CFPB's Discrimination Rule Is A Boon To Industry
A Texas federal court's recent order, which vacated revisions to a Consumer Financial Protection Bureau manual that expanded its authority to punish purported discriminatory practices, provides much-needed relief to covered entities that experienced increased regulatory uncertainty and compliance costs under the updated standards, say attorneys at Husch Blackwell.
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5th Circ. Ruling Reminds Attys That CBP Can Search Devices
The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.
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Enforcement Of International Tax Reporting Is Heating Up
Since the U.S. Supreme Court’s February decision in Bittner v. U.S. changed how penalties for failure to report offshore accounts are calculated, recent developments suggest the government is preparing to step up enforcement and vigorously pursue the collection of resulting penalties, say Daniel Silva and Agustin Ceballos at Buchalter.
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Tornado Cash Saga Presents Thorny Issues For Fintechs
A recent Texas federal court ruling and a U.S. Department of Justice indictment concerning the cryptocurrency mixer service Tornado Cash raise novel and important issues regarding smart contracts that could complicate the development and nature of decentralized crypto projects, as well as the future of fintech business models, say attorneys at Venable.
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How Juror Questions Are Changing Civil Trials In Texas
Jurors in Texas are becoming increasingly involved during civil trials by submitting written questions for the judge or attorneys to ask witnesses — and given this new reality, attorneys must understand best practices for avoiding potential pitfalls at trial and beyond, say Daniella Main and Mia Falzarano at Alston & Bird.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Series
Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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The 3 E's Of Limiting Injury Liability For Worker Misconduct
The Fifth Circuit’s recent ruling in TNT Crane & Rigging v. Occupational Safety and Health Review Commission lays out key safety practices — establish, educate and enforce — that not only can help protect workers, but also shield companies from workplace injury liability in situations when an employee ignores or intentionally breaks the rules, says Andrew Alvarado at Dickinson Wright.
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Don't Wait To Prepare For CFPB's Small Biz Lender Data Rule
Though federal courts in Kentucky and Texas have paused the rollout of the Consumer Financial Protection Bureau's small business loan reporting requirement, with more delays perhaps on the way, financial institutions should nonetheless turn to new agency guidance to prepare for the rule's eventual implementation, say Christopher Friedman and Shelby Lomax at Husch Blackwell.
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How To Protect Atty-Client Privilege While Using Generative AI
When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
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Futility Exception To Remanding Rule Could Be On Last Legs
A recent Fifth Circuit decision squarely confronting the futility exception to remanding cases with insufficient subject matter jurisdiction leaves the Ninth Circuit alone on one side of a circuit split, portending a tenuous future for the exception, say Brett Venn and Davis Williams at Jones Walker.
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How New Lawyers Can Leverage Feedback For Growth
Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.