News & Analysis as of

Fiduciary Duty Breach of Duty Breach of Contract

Morris James LLP

Chancery Finds Language in LLC Agreement Insufficient To Waive Fiduciary Duties and Permit Competing Business Ventures

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Green v. McClive, C.A. No. 2023-0139-MTZ (Del. Ch. June 3, 2024) - The plaintiff filed claims against defendant McClive, alleging breach of contract, breach of fiduciary duty, and usurpation of corporate opportunities...more

Rumberger | Kirk

Viewpoint: Early Action Key to Mitigating Risk in Professional Liability Claims

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Professional liability claims impact a multitude of professions, including those in the legal, medical, financial and insurance industries. Claims for malpractice, breach of contract, breach of fiduciary duty and related...more

Farrell Fritz, P.C.

Commercial Division Reiterates That It’s Not a Rubber Stamp for CPLR 3215 Default Motions: Movant Must Set Forth Prima Facie...

Farrell Fritz, P.C. on

Commercial Division litigators are keenly aware of CPLR 3215’s proof requirements. We can recite in our sleep the need to submit (1) proof of service, (2) proof of default, (3) the amount due, and (4) facts constituting the...more

Lewitt Hackman

Franchisee 101: Extra Cheesed Franchisee

Lewitt Hackman on

A federal district court in Texas denied a preliminary injunction filed by a franchisee (“EYM”) after Pizza Hut, as franchisor, terminated the franchise agreements....more

Morris James LLP

Court of Chancery Dismisses Aiding And Abetting Fraud Claim Against Corporate Officers And Directors On Grounds That A Corporation...

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Urvan v. AMMO, Inc., Consol. C.A. No. 2023-0470 PRW (Del. Ch. Feb. 27, 2024, corrected Mar. 14, 2024) - It is an axiom of Delaware law that a corporation acts through its human agents. This principle informs the causes of...more

Morris James LLP

Chancery Awards Attorneys’ Fees to the Prevailing Party

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Malkani v. Cunningham, C.A. 2020-1004-SG (Del. Ch. Feb. 28, 2024) - In this decision involving a contractual fee-shifting provision, both parties argued that they were entitled to fee-shifting as the prevailing parties....more

Freiberger Haber LLP

Fraud Notes: Two Cases and The Examination of Scienter

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To state a cause of action for fraud, a plaintiff must allege “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” The...more

Proskauer - Trade Secrets

Employee Mobility and Trade Secrets in the Golden Era of Life Sciences Innovation

The life sciences sector is in its “golden era” of innovation with the convergence of disciplines—including genetics, immunology, cell biology, and artificial intelligence—changing the speed, efficiency, and cost at which...more

Morris James LLP

Chancery Invokes the Implied Covenant to Invalidate Shareholder Rights Plan

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Whitestone REIT Operating Partnership L.P. v. Pillarstone Capital REIT, C.A. No. 2022-0607-LWW (Del. Ch. Jan. 25, 2024) - In Delaware, the implied covenant of good faith and fair dealing is inherent in all contracts and...more

Mintz

Texas Court Rules ESG Lawsuit Against Employer's 401(k) Plan Can Proceed

Mintz on

Recently, a Texas federal court denied the defendants' motion to dismiss in a lawsuit featuring allegations that an employer's 401(k) plan, which allegedly relied on ESG principles when making investments, violated ERISA. ...more

Morris James LLP

Plaintiffs Adequately Pled Unjust Enrichment for Materially Deficient Disclosures

Morris James LLP on

Buttonwood Tree Value Partners, L.P. v. R.L. Polk & Co. Inc., C.A. No. 9250-VCG (Del. Ch. Dec. 29, 2023) - To state a claim for unjust enrichment, a plaintiff must adequately plead: (1) an enrichment; (2) an...more

Proskauer - Minding Your Business

CA Federal Court Awards Biomedical Companies $62M Following Jury Trial Involving Confidentiality-Related Claims

On November 1, 2023, a jury in the U.S. District Court for the Central District of California awarded damages to Skye Orthobiologics, LLC (“Skye”) and Human Regenerative Technologies, LLC (“HRT”) for breach of contract,...more

Morgan Lewis

Federal Court Rules False Claims Act Whistleblower Must Face Counterclaims

Morgan Lewis on

A recent decision by a federal district court affirmed the ability of defendants in False Claims Act actions brought by qui tam relators to assert counterclaims against relators. The court’s opinion highlights the opportunity...more

Epstein Becker & Green

From Whistleblower to Defendant: Understanding the Implications of U.S. ex rel. Cooley v. ERMI, LLC

Recently, a Georgia federal district court permitted an employer’s counterclaims against its former employee-whistleblower to proceed in a False Claims Act (“FCA”) lawsuit after determining that the employer’s amended...more

Fox Rothschild LLP

JNOV is a Tough Road, but it’s Not a One in a Million Shot

Fox Rothschild LLP on

A party seeking to unseat a verdict by JNOV “bears a heavy burden under North Carolina law.” Only a “scintilla of evidence” is needed to support the elements of the prevailing claim. But as the Business Court reminded in...more

Morris James LLP

Chancery Concludes Accountant Provision in Stock Purchase Agreement Calls for Expert Determination Rather than Arbitration

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ArchKey Intermediate Holdings Inc. v. Mona, C.A. No. 2021-0383-JTL (Del. Ch. Oct. 3, 2023) - Parties to a stock purchase agreement disputed post-closing price adjustments. The agreement called for an independent accountant...more

BakerHostetler

AD-ttorneys@law - January 2024

BakerHostetler on

Extra, Extra, Read All About It! We have a major update! If you’re a subscriber to our blog, you have likely caught wind of our recent rebrand to ADventures in Law. Overflowing with a dynamic mix of weekly blogs, engaging...more

Morris James LLP

Supreme Court Upholds Contractual Voidness Provision in LLC Agreement

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Holifield v. XRI Investment Holdings, LLC, No. 407, 2022 (Del. Sept. 7, 2023) - This decision concerned the disputed transfer of a member's LLC units. Below, the Court of Chancery held that the disputed transfer was...more

Morris James LLP

Spoliation of Email and Texts Leads to Adverse Inferences and Fee Shifting

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Gener8 LLC v. Castanon, 2022-0246-LWW (Del. Ch. Sept. 29, 2023) - This dispute concerned a non-compete agreement that the plaintiffs alleged the defendant breached by establishing a competing business. The defendant denied...more

Farrell Fritz, P.C.

Where’s the Beef? Causation and Culpability Are Fatal Pitfalls in Zaycon Foods Lawsuit

Farrell Fritz, P.C. on

When representing an aggrieved plaintiff in a commercial matter, there are certain business torts that I tend to rely on more heavily than others.  If business torts were foods, for example, a claim like breach of contract...more

Kramer Levin Naftalis & Frankel LLP

Case Alert: MALT Family Trust v. 777 Partners LLC

A recent decision from Delaware highlights the importance of expressly memorializing contracting parties’ understandings and expectations in M&A transactions involving contingent earnout consideration and/or rollover equity...more

Freiberger Haber LLP

Fraudulent Inducement, Merger Clauses and Duplication

Freiberger Haber LLP on

A couple of months ago, we examined NW Media Holdings Corp. v. IBT Media Inc., 2023 N.Y. Slip Op. 30875(U) (Sup. Ct., N.Y. County Mar. 22, 2023) (here), a case in which a lower court addressed the question whether the...more

Morris James LLP

Entire Fairness Standard Applied to Transaction Benefitting Controllers of Controllers

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Tueza v. Lindon, C.A. No. 2022-0130-SG (Del. Ch. Apr. 27, 2023) - Because controlling stockholders of Delaware corporations owe fiduciary duties to both the corporation and to its minority stockholders, the Court of...more

Morris James LLP

Chancery Relies on Unanimous Dictionary Entries To Confirm Unambiguity of Supply Agreement

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Thermo Fisher Scientific PSG Corp. v. Arranta Bio MA, LLC, C.A. No. 2022-0608-NAC (Del. Ch. Apr. 4, 2023) - The plaintiff and the defendant entered into a supply agreement under which the defendant would manufacture...more

McGlinchey Stafford

Is My Contract Specific Enough to be Enforceable? - McGlinchey Commercial Law Bulletin - May 26, 2023

McGlinchey Stafford on

The U.S. Environmental Protection Agency (EPA) says it has taken its first-ever Clean Water Act (CWA) enforcement action against water pollution by so-called “forever chemicals” from a West Virginia chemical plant. On April...more

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