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Food & Beverage Litigation Update | June 2017 #2

Seattle Approves Tax on SSB Distributors - The Seattle City Council has approved a tax on distributors of sugarsweetened beverages (SSBs) proposed by the city’s mayor. SSBs covered by the tax include sports, fruit, energy...more

Out-of-Network Physician’s Claim Against Insurer Not Preempted by ERISA

The Second Circuit concluded that a promissory estoppel claim by an out-of-network provider against an insurer was not completely preempted by ERISA and thus remanded the claim to state court for further proceedings. The...more

Litigating trust matters in the federal courts (U.S.): A jurisdiction primer

by Charles E. Rounds, Jr. on

The diversity jurisdiction of the federal courts generally does not extend to state probate matters. However, this so-called “probate exception to federal diversity jurisdiction” does not apply to trust disputes. See...more

What Happens in Vegas Doesn’t Always Stay in Vegas: Considerations When Discovery of Privileged Communications Is Sought in a...

In most instances, discovery disputes over applicability of a privilege are litigated in the same jurisdiction where the privileged relationship arose, and the availability of that privilege is clear. But what happens when a...more

First Circuit Finds Class of Independent Truckers Excluded From Federal Arbitration Act

The Federal Arbitration Act has been in effect for nearly 100 years (92, to be precise). Nevertheless, the First Circuit found two issues of first impression to address this month. In Oliveira v. New Prime, Inc., 2017 WL...more

State Supreme Courts Continue to Try to Chip Away at FAA Preemption; The United States Supreme Court Is Not Amused

The Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq., does not contain an express preemption provision, nor was it intended to be the exclusive codified arbitration law in all circumstances. However, the United States...more

U.S. Supreme Court Says: We Mean It--You Can’t Single Out Arbitration Agreements for Disfavored Treatment

by Foley & Lardner LLP on

On Monday, May 15, 2017, the Supreme Court issued its latest reminder to state and lower federal courts that they must treat arbitration agreements as equally valid as all other contracts. In Kindred Nursing Centers Limited...more

Supreme Court Holds Federal Arbitration Act Preemption Applies To Contract Formation Rules

by Carlton Fields on

Last week, the U.S. Supreme Court rejected the Kentucky Supreme Court’s use of a clear-statement rule to require that powers of attorney specifically authorize a representative to enter into an arbitration agreement, finding...more

Supreme Court Emphatically Defends Arbitration Agreements from State Interference

by Littler on

On May 15, 2017, the U.S. Supreme Court reiterated the principle that the Federal Arbitration Act (FAA) requires states to treat arbitration agreements just as they treat other types of contracts. In Kindred Nursing Centers...more

No Pre-Emption Exemption - The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law...

The U.S. Supreme Court and the Kentucky Supreme Court are not kindred spirits with respect to state law restrictions on arbitration agreements....more

U.S. Supreme Court Reaffirms FAA Preemption Over Discriminatory State Laws

by Ballard Spahr LLP on

Emphasizing that the Federal Arbitration Act (FAA) preempts state laws that "single out arbitration agreements for disfavored treatment," the U.S. Supreme Court has overturned the Kentucky Supreme Court's refusal to enforce...more

Supreme Court Applies FAA Preemption to Contract Formation

The Supreme Court held that the Federal Arbitration Act preempts state law governing contract formation where a state rule discriminates against arbitration, a holding with broad implications for state-court decisions that...more

Important Open Source Ruling Confirms Enforceability of Dual-Licensing and Breach of GPL for Failing to Distribute Source Code

A recent federal district court decision denied a motion to dismiss a complaint brought by Artifex Software Inc. (“Artifex”) for breach of contract and copyright infringement claims against Defendant Hancom, Inc. based on...more

SCOTUS Reverses KY Nursing Home Arbitration Decision; Refuses To Prioritize Right To Jury Trial

Just as I predicted, SCOTUS reversed the Kentucky Supreme Court’s decision in Kindred this morning. The interesting piece, though, is that the seven member majority went out of its way to cut off some of the “on trend”...more

Grounding Deferential Review in California – No Preemption for Discretionary Clause Ban

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In a decision with wide ranging implications, the Ninth Circuit has ruled that a discretionary clause in an employer drafted plan document is subject to, and invalidated by, California’s insurance...more

Lack of Specificity May Kill Parallel State Law Product Claims, But Not Fraud Claim

by Cozen O'Connor on

A Michigan district court judge determined last week that product liability claims against an FDA approved medical device manufacturer were preempted by federal law, but allowed the plaintiff’s claim of fraud against the...more

How Will The Supreme Court Choreograph The Biosimilar Patent Dance?

by Foley & Lardner LLP on

On April 26, 2017, the Supreme Court heard oral arguments in Amgen v. Sandoz, where the parties have asked the Court to interpret two of the biosimilar patent dance provisions of the Biologics Price Competition and Innovation...more

Fourth Circuit: Plaintiff Cannot Rely on CERCLA Discovery Rule to Save Tort Claims

by Beveridge & Diamond PC on

Declining to apply CERCLA’s discovery rule to preempt a state statute of limitations, the U.S. Court of Appeals for the Fourth Circuit upheld a district court decision to dismiss untimely state tort claims stemming from...more

District of New Jersey Dismisses Third Party Claims Sounding in Policy Handling on Preemption Grounds

A federal court in New Jersey recently dismissed state law claims brought by third party plaintiffs, including the insured’s broker, against a Write Your Own insurance carrier. The claims at issue in Residences at Bay Point...more

Colorado Moves to Dismiss Suits Seeking Judgment That Bank-Originated Loans Facilitated and Serviced by Online Platforms Are...

As we noted in a recent Alert, WebBank and Cross River Bank filed separate federal civil actions to enjoin the Administrator of Colorado's Uniform Consumer Credit Code from enforcing state lending laws against Avant, Inc. and...more

Facebook Successfully Dismisses Putative Class Action Alleging Violation of New Jersey’s TCCWNA Based on Choice-of-Law Clause in...

by Bryan Cave on

In Palomino v. Facebook, Inc., No. 16-cv-04329-HSG, 2017 WL 76901 (N.D. Cal. Jan. 9, 2017), two putative class representatives brought a claim on behalf of all “similarly situated New Jersey residents who created a Facebook...more

Supreme Court Decides Coventry Health Care of Missouri, Inc. v. Nevils

by Faegre Baker Daniels on

On April 18, 2017, the Supreme Court of the United States decided Coventry Health Care of Missouri, Inc. v. Nevils, No. 16-149, holding that: 1) under the FEHBA (specifically, 5 U.S.C. § 8902(m)(1)), the provisions of a...more

California Supreme Court Finds Arbitration Agreement Waiver of 'Public Right' Unenforceable

by Pepper Hamilton LLP on

On April 6, the California Supreme Court issued a unanimous opinion in McGill v. Citibank, finding that a pre-dispute arbitration agreement was unenforceable to the extent it required the plaintiff to waive her right to seek...more

California Supreme Court Invalidates Arbitration Agreement That Purports To Waive Injunctive Relief

by Reed Smith on

In a unanimous decision released April 6, 2017, the California Supreme Court held an arbitration agreement that waives the right to public injunctive relief in any forum is contrary to state public policy and therefore...more

The IRS and the Controlled Substance Act

by Garvey Schubert Barer on

Two recent District Court cases, High Desert Relief, Inc. v. United States of America and Alpenglow Botanicals, LLC et. al. v. United States of America have raised a novel issue in the IRS’s audits of cannabis businesses....more

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