News & Analysis as of

Materiality Breach of Contract

Carlton Fields

New York Federal Court Enforces Exclusion Barring Coverage for Claims Based on Any Misrepresentation, Regardless of Perceived...

Carlton Fields on

When state law provides that an insurance contract can be rescinded for misrepresentations only if they are “material,” can an insurer contract around that rule by adding an exclusion for all claims based on any...more

Hogan Lovells

English High Court considers material adverse effect clause in SPA: the “revelatory event”

Hogan Lovells on

Cases on Material Adverse Effect (“MAE”) clauses (also known as Material Adverse Change, or MAC, clauses) rarely come before the English courts, so there are limited English authorities on their construction. The High Court...more

Paul Hastings LLP

Supreme Court Poised to Narrow Materiality

Paul Hastings LLP on

The materiality standard in fraud cases may soon shift dramatically if the comments of Supreme Court justices during a recent oral argument are any indication. A rollback of the materiality standard would be the latest in a...more

Farrell Fritz, P.C.

A Cautious Reminder When Responding to a Rule 19-a Statement of Material Facts on a Motion for Summary Judgment

Farrell Fritz, P.C. on

Although discretionary, it is well-known among commercial practitioners that the Commercial Division justices generally like a Rule 19-a statement of material facts included with the submission of a summary judgment motion....more

Bradley Arant Boult Cummings LLP

Substantial Performance v. Material Breach

All breaches are not created equal. A minor, technical breach may be deemed “immaterial.” Other breaches – so-called “material” breaches — deprive the non-breaching party of something important or essential to the purpose of...more

Whiteford

Indemnity Clauses, Claims & Controversies

Whiteford on

Indemnification is a key component in virtually every M&A deal, serving as a detailed and nuanced contractual risk allocation device between the Buyer and Seller. Though drafted in a two-way fashion, indemnity operates in the...more

Lewitt Hackman

Franchisor 101: A Tasty Appeal

Lewitt Hackman on

The Eleventh Circuit Court of Appeals reversed a district court’s summary judgement order, granting a chocolate shop franchisor’s breach of contract and unfair competition claims. The appellate court concluded there were...more

Shutts & Bowen LLP

Drawn-out negotiations over purchase agreement result in extensive litigation

Shutts & Bowen LLP on

A recent case weighed the extent to which a purchaser was able to negotiate terms when exercising a purchase of property under an option in a lease. The litigation began when, after the tenant/buyer exercised its purchase...more

Goulston & Storrs PC

The ‘Materiality Scrape’ Provision What’s Market?

Goulston & Storrs PC on

Market Trends: What You Need to Know - Over the past almost 15 years covered by the ABA studies, materiality scrapes have morphed from being a somewhat uncommon provision, seen in about 14% of transactions in 2005, to...more

Bradley Arant Boult Cummings LLP

Casting the First Stone: Contractors Considering Default Termination Should Examine Which Party Committed First Material Breach -...

During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more

Bowditch & Dewey

Banker & Tradesman publishes, "SJC Ruling Brings Law in Line With Industry Practices"

Bowditch & Dewey on

Since at least 1940, parties to construction contracts have been held to high standard of showing “complete and strict performance of all [of the construction contract’s] terms.” This has historically turned otherwise...more

Foley Hoag LLP

SJC Finds that Employee’s Unauthorized Copying of Proprietary Information Did Not Give Employer Grounds to Discontinue Severance

Foley Hoag LLP on

On February 4, 2016, the Massachusetts Supreme Judicial Court (SJC) held in Eventmonitor, Inc. v. Leness that an employer breached its agreement with a former employee when it reclassified the employee’s termination from...more

Carlton Fields

Third Circuit Evaluates The Definition Of “Materiality” In Rescission Claims

Carlton Fields on

In a case on which we previously reported, the Third Circuit recently evaluated the legal standard for determining materiality in a claim for rescission of an insurance contract. The case involved a dispute between two...more

Cozen O'Connor

Texas Supreme Court Clarifies Scope and Application of the “Anti-Technicality” Statute

Cozen O'Connor on

In Greene v. Farmers Insurance Exchange, the Texas Supreme Court clarified the scope and application of § 862.054 of the Texas Insurance Code, the “anti-technicality” statute, holding that the clause would only operate in...more

Cozen O'Connor

Texas Supreme Court Weighs In Again on the Scope of the Material Breach Doctrine

Cozen O'Connor on

Last week, the Texas Supreme Court handed down a length opinion that involved the material breach doctrine. The doctrine — adopted twenty years ago in Hernandez v. Gulf Group Lloyds, 875 S.W.2d 691 (Tex. 1994) and...more

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