Pepper Hamilton LLP

Federal District Court in Missouri Holds Contractor’s Failure to Declare Subcontractor in Default Bars Recovery on Performance Bond (Earlier Decision Vacated)

Curtiss-Manes-Schulte, Inc. v. Safeco Insurance Company, 2015 U.S. Dist. LEXIS 57836 (W.D. Mo. May 4, 2015) - In this opinion, the United States District Court for the Western District of Missouri (i) vacated its earlier…more
| Civil Procedure, Construction Law, Finance & Banking

Ninth Circuit Again Clarifies that Arbitration Is Creature of Contract: Employee's Agreement to Abide by Company Manual Is Sufficient to Send Title VII Claims to Arbitrator

The court’s opinion instructs that employee agreements to arbitrate may be obtained through written acknowledgments referencing company manuals. Arbitration remains a preferred forum for many employers, yet courts are often…more
| Alternative Dispute Resolution (ADR), Civil Rights, Commercial Law & Contracts, Labor & Employment Law

Bailment: Retaining Funds Received From a Bankrupt Bailee Is Not a Slam Dunk

In re Mississippi Valley Livestock, Inc., 745 F.3d 299 (7th Cir. 2014) – A debtor sold cattle for the account of a cattle producer and then remitted the proceeds to the producer. A chapter 7 trustee sought to recover the…more
| Agriculture, Bankruptcy, Commercial Law & Contracts, Finance & Banking

New GAO Report on Contingent Workforce Shows 85% of Independent Contractors Are “Content with Their Employment Type”

A comprehensive government report on the contingent workforce made public two days ago revealed surprising data about independent contractors, finding that 85% of independent contractors “appeared content with their employment…more
| Administrative Law, Civil Procedure, Commercial Law & Contracts, Labor & Employment Law

Delaware Supreme Court Preserves Benefit of Exculpatory Provisions for Independent Directors at Motion to Dismiss Stage

A recent decision by the Delaware Supreme Court provides independent directors, such as special committee members, with the ability to escape protracted fiduciary duty litigation during its initial stages. The court’s decision…more
| Business Organizations, Civil Procedure, Commercial Law & Contracts, Mergers & Acquisitions, Securities Law

Trespass And Other Claims: Ever Wonder If Litigation Is Worth It?

Flyboy Aviation Properties, LLC v. Franck (In re Flyboy Aviation Properties, LLC), 525 B.R. 510 (Bankr. N.D. Ga. 2015) – A chapter 11 debtor operated a small private airport. The debtor and an adjacent landowner had a long…more
| Bankruptcy, Civil Procedure, Finance & Banking, Real Estate - Commercial, Transportation

Second Circuit Rules PATRIOT Act Does Not Authorize Government's Bulk Telephone Metadata Collection Program

In yet another reminder of the importance of maintaining the privacy of personal information, the Second Circuit Court of Appeals, in ACLU v. Clapper, issued a unanimous decision striking down the National Security Agency’s bulk…more
| Civil Rights, Communications & Media Law, Constitutional Law, International Law & Trade, Privacy

Calculating Title Insurance Claims: Reduction in Value vs. Insured Claim

After a mortgagor filed bankruptcy, a lender brought claims under a ship mortgage insurance title policy. [See, First Am. Bank v. First Am. Transp. Title Ins. Co., 759 F.3d 427 (5th Cir. 2014).] The lender appealed the district…more
| Bankruptcy, Commercial Law & Contracts, Finance & Banking, Insurance, Real Estate - Commercial

Delaware Bankruptcy Court: Debtors Can Offset Administrative Claims Before General Unsecured Claims

While section 503(b)(9) claims deserve priority payment over general unsecured claims, they do not provide a basis for stripping a debtor’s defenses in determining the allowed amount of a section 503(b)(9) claim…more
| Administrative Law, Bankruptcy, Civil Procedure, Commercial Law & Contracts, Finance & Banking

U.S. District Court in Pennsylvania Holds Subcontractor’s Miller Act Suit Not Subject to Stay Pending Prime Contractor’s Prosecution of Claim Against Government

Marenalley Constr., LLC v. Zurich American Ins. Co. and Nason Constr. Inc., 2015 U.S. Dist. LEXIS 30968 (E.D. Pa. March 13, 2015) - This payment dispute case arises out of a Veterans Affairs (“VA”) construction project…more
| Administrative Law, Commercial Law & Contracts, Construction Law, Government Contracting, Military Law

Analysis of Inter Partes Review and Post-Grant Review in the Life Sciences Industry Through First Quarter 2015

The recently established inter partes review (IPR) and post-grant review (PGR) of the America Invents Act have been in the spotlight lately, especially now that the life sciences industry has begun to utilize these proceedings…more
| Civil Procedure, Finance & Banking, Intellectual Property, Science, Computers, & Technology

Foreclosures: Beware Unexpected Violations

Field v. Bank of America, N.A. (In re Gibbs), 522 B.R. 282 (Bankr. D. Hawaii 2014) – A bankruptcy trustee sued a mortgage lender to recover for defects in a prepetition non-judicial foreclosure sale. The lender brought a motion…more
| Bankruptcy, Civil Procedure, Consumer Protection, Finance & Banking, Real Estate - Residential

Summary of HUD's LEAN 232 Program E-mail Blast: Office of Residential Care Facilities (ORCF), April 30, 2015

In an effort to summarize the highlights of the LEAN Email Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper Hamilton are providing this quick synopsis of the latest LEAN update. Our aim is…more
| Administrative Law, Finance & Banking, Health, Real Estate - Commercial, Real Estate - Residential

International Tax Grows Up: The Tax Section at 75, Subpart F at 53, and the Foreign Tax Credit at 97

As the Tax Section celebrates its 75th anniversary, I was asked to reflect on the Section’s contribution in the international tax arena and on how the Section’s international community has grown. I started by recognizing the…more
| Finance & Banking, International Law & Trade, Taxation

Federal District Court in Nevada Denies Contractor’s Motion to Stay Subcontractor’s Miller Act Suit Pending Resolution of Contractor’s Suit Against the Government

KBW Assocs. v. Jaynes Corp., 2015 U.S. Dist. LEXIS 18220 (D. Nev. Feb. 13, 2015). This action arose out of the construction of additions to existing buildings at Creech Air Force Base in Indian Springs, Nevada (the “Project”). …more
| Civil Procedure, Commercial Law & Contracts, Construction Law, Government Contracting, Military Law
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