Breach of Contract

News & Analysis as of

Mission Accomplished … First Circuit Bankruptcy Appellate Panel Acknowledges Post-Rejection Rights of Licensee of Trademarks

The Bankruptcy Appellate Panel (“BAP”) for the First Circuit recently upheld a licensee’s rights to use a debtor’s trademarks and logo after a rejection by the debtor of the underlying licensing and distribution agreement....more

Early January Environmental Odds And Ends

“The old order changeth, yielding place to new.” January 2017 has been a very active month, with several important environmental and federal administrative court rulings being issued, and many significant rules being proposed...more

Court Finds That Enron’s Fraud Does Not Void Contract Entered Into With Enron Subsidiary

A federal appellate court has upheld a district court order enforcing an arbitration award by the ICC against the Republic of Nigeria in favor of Enron Nigeria Power Holdings, Ltd. (“ENPH”), a former subsidiary of Enron...more

Global Private Equity Newsletter - Winter 2017 Edition: Is Arguing Over the Appropriate Level of Efforts Worth the Effort?

The recent Delaware case, Williams Cos v. Energy Transfer Equity LP (No. CV 12168-VCG, (Del. Ch. June 24, 2016)), sought to provide some additional guidance on this question, but at bottom the standard adopted by the court is...more

Flipping the Script: Court holds that a Lender can sue a Borrower for Unfair and Deceptive Trade Practices

Recently, in Makadia v. Continental Waste Management, LLC, the United States District Court for the Eastern District of North Carolina considered a matter that may have caused a double-take. The case involved a dispute...more

First Department Affirms Partial Dismissal of RMBS Repurchase Claims

On December 29, 2016, the New York Supreme Court, Appellate Division, First Department, in a 4-1 decision, affirmed a 2015 New York Supreme Court order dismissing certain claims in an RMBS action brought by Trustee U.S. Bank...more

Commercial Division Disqualifies Attorney Acting in a Dual Role Pursuant to Advocate-Witness Rule

In a recent decision, Justice Lawrence S. Knipel in the Commercial Division ordered an attorney to comply with a non-party subpoena and disqualified the same attorney from representing her client in the action pursuant to the...more

California Employment Law Notes - January 2017

$90 Million Judgment Reinstated: Employers Must Relieve Employees Of All Duties During Their Rest Periods - Augustus v. ABM Sec. Servs., Inc., 2016 WL 7407328 (Cal. S. Ct. 2016) - Jennifer Augustus filed this...more

Failure to Introduce Source Code of Original Work Fatal to Claim Against Alleged Derivative Work

The US Court of Appeals for the Ninth Circuit affirmed an order dismissing a breach of contract action, finding that the plaintiff failed as a matter of law to establish copyright infringement under the copyright law—upon...more

Employment News - January 2017 #1

A little knowledge is dangerous – awareness of the consequences of a disability not required for discrimination "arising from" disability - In City of York Council v Grosset, the EAT decided that the employer did not...more

The Economic-Loss Rule: Conflicting Signals

As we have discussed before, courts in North Carolina have not agreed on how the economic-loss rule applies, if at all, to claims under N.C. Gen. Stat. § 75-1.1. Two recent decisions by the North Carolina Court of...more

Fifth Circuit Provides Road Map for Review and Trial of Bad Faith Claims in Mississippi

Mississippi essentially has three levels of claim when insurance is at issue: (1) mere breach of contract, allowing recovery of contract damages; (2) breach of contract + no arguable basis for breach, which entitles recovery...more

Voluntary Dismissal of Contract Claims Leads to Involuntary Payment of Attorneys’ Fees

Recently, in Khan v. Shim, No. H041608 (Cal. Ct. App. Dec. 29, 2016) (“Khan”), the California Court of Appeal held where a plaintiff voluntarily dismisses an action involving contract and tort claims, Civil Code section 1717,...more

UPDATE: BOSTON’S Founder and a Former Bandmate Still Seek Peace of Mind

We have written previously about Scholz v. Goudreau, No. 13-CV-10951 (D. Mass.); the case recently went to trial on the parties’ surviving claims, and they are now immersed in post-trial briefing....more

Appellate Court Notes

AC37979 - Meadowbrook Center, Inc. v. Buchman - Nursing home sued son/guarantor of patient and obtained a judgment for $45,000. The guarantee agreement allowed the nursing home to seek attorney fees. The son appealed...more

The Risks of Suspension under Construction Contracts

Two recent cases from Australia and Hong Kong highlight the serious dangers of a wrongful suspension of works under a construction contract. Wrongful suspension may ultimately lead to the termination of a contract, and...more

Careful Drafting of Non-Competes and Other Restrictive Covenants Can Save the Day

It generally is a defense to a breach of contract claim if the defendant proves that the plaintiff was the first one to materially breach the parties’ agreement. As a recent case from the Business Litigation Session of the...more

Commercial Division Trial to Address Collateral Call and Dispute Resolution Provisions of ISDA Agreements

In a case with potentially broad implications for participants in the leveraged loan and derivatives markets, Justice Eileen Bransten will conduct a bench trial starting next week in the long-running dispute between a...more

Insurance – Coverage – Pyrolysis as an “Occurrence”

Tidwell Enterprises, Inc., et al. v. Financial Pacific Ins. Co., Inc. - Court of Appeal, Third Appellate District (December 20, 2016) - According to Merriam-Webster’s Collegiate Dictionary, Pyrolysis is a “chemical...more

Too Soon! First Circuit Finds No Duty To Defend Before Suit Is Filed

Can something short of the filing of a complaint trigger an insurer’s duty to defend? It’s not an idle question. Uncertainty on this issue could produce an unintended breach, and, in some jurisdictions, breach of the duty to...more

Court Grants Motion to Dismiss for Lack of Case or Controversy Even Though Patent Holder Did Not Provide Covenant Not to Sue

Tech Pharmacy filed a patent infringement action against Defendant Alixa Rx LLC and Defendant Golden Gate National Senior Care LLC d/b/a Golden LivingCenters (collectively, "Defendants"). Tech Pharmacy subsequently filed its...more

Three Point Shot - December 2016

In Partial Trademark Victory over Chinese Sportswear Company, MJ Posterizes Unauthorized User of Chinese Version of His Name - In Game 3 of the first round of the 1991 NBA Eastern Conference playoffs between the New York...more

The Ghost of Systems Past: “Big Data” Suits Loom, But Old Data Issues Remain Unresolved

2017 could be big for litigation over “Big Data” applications in insurance. This past year saw the filing of several “price optimization” class actions, and claims against a fraud detection tool, similar to the ones used by...more

Delaware Chancery Court Provides Further Insights into the Validity of Anti-Reliance Clauses

On November 30, 2016, the Delaware Court of Chancery issued another opinion in a growing body of decisions defining the parameters of extra-contractual fraud claims in M&A transactions. In IAC Search LLC v. Conversant LLC,...more

Eighth Circuit Upholds Arbitral Immunity In Challenge To AAA’S Removal Of Arbitrator

Owens, a terminated CEO, engaged in a AAA arbitration with his former company before a three-member panel. In the course of the proceeding, the company sought to remove an arbitrator for making an incomplete disclosure...more

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