Good Faith

News & Analysis as of

Supreme Court to Review Defenses to Induced Patent Infringement

On December 5, 2014, the Supreme Court granted certiorari in Commil USA, LLC, v. Cisco Systems, Inc., to decide whether a defendant’s good-faith belief that a patent is invalid is a defense to induced infringement....more

Supreme Court to Consider Good-Faith Belief of Invalidity Defense

On December 5, 2014, the Supreme Court granted certiorari in Commil v. Cisco to decide whether an infringer’s good-faith belief of patent invalidity is a defense to induced infringement. The case could prove significant for...more

Texas High Court Doesn’t Take Fishing Expedition Bait

There will be no more fishing in Texas in unrelated claim files. The Supreme Court of Texas has summarily ended any debate as to whether discovery of an insurer’s claim files for other policyholders is permissible — it is...more

New Good-Faith Duty of Honesty in Contractual Performance Recognized by Supreme Court of Canada

In a precedent setting case, the Supreme Court of Canada has: (1) recognized good faith as a "general organizing principle" of Canadian contract law; and (2) recognized a new duty of "honest performance", which requires...more

Good faith: A new era for English law?

Hot topics for the Technology and Sourcing team often relate to technology itself (the move to Cloud) or market developments (single versus multi sourcing; trends in contractual risk allocation). One current hot topic,...more

Good Faith Defense in TCPA Class Actions Makes Good Business Sense

It is possible that a business may contact a changed or recycled phone number. According to the Wall Street Journal, as many as 37 million phone numbers are recycled each year by telephone companies. It is equally likely that...more

New Good-Faith Duty of Honesty in Contractual Performance Recognized by Supreme Court of Canada

A new duty of honest performance has been imposed on all Canadian contracts by the Supreme Court of Canada. The notion of a general and independent doctrine of good faith performance of contracts has historically been...more

Nevada’s Duty Of Care Standard Fails To Win Summary Judgment For Director

NRS 78.138(1) imposes two explicit duties on directors in the exercise of their powers: they must act in good faith and with a view to the interests of the corporation. This contrasts with Delaware case law which speaks of a...more

2014 Autumn Review – M&A Legal Developments

We set out below a number of interesting English and European court decisions which have taken place and their impact on M&A transactions. This Insight looks at these developments and gives practical guidance on their...more

Determining “Value” Given By Good Faith Transferee In Fraudulent Transfer Action

The Bankruptcy Code allows a trustee to recover fraudulent transfers made by the debtor prior to bankruptcy. 11 U.S.C. § 548(a). An innocent recipient of a fraudulent transfer is not without a defense, however. The Code...more

Mushroom Court Ruling Sprouts Controversy on Whether Reliance on Lawyer Advice Maintains Affirmative Defense to Antitrust Claims

A federal district court recently ruled that claims of “good faith reliance on counsel” were not sufficient to maintain a Capper-Volstead affirmative defense to the antitrust laws – a result that may soon collide with rulings...more

Haggle in Discovery at Your Own Risk

Attention has recently been paid to the duty of competence outlined in comment 8 to ABA Model Rule of Professional Conduct 1.1, which requires lawyers to understand the “benefits and risks associated with relevant...more

ev3, Inc. v. Lesh, C.A. No. 515, 2013 (Del. Sept. 30, 2014)

In this en banc Memorandum Opinion, the Supreme Court reversed the Superior Court’s denial of the defendant-below’s motion for a new trial following a jury verdict and remanded the case for a new trial. The Supreme Court...more

Third Circuit decision highlights power of “good faith exception” to the exclusionary rule

We previously discussed the decision of the United States Court of Appeals for the Third Circuit in United States v. Katzin, wherein the Court found that a warrant is required for GPS monitoring and that there was no...more

A New Era For "Good Faith" In English Contract Law – The Next Instalment?

In Bristol Groundschool Ltd v Intelligent Data Capture Ltd & ors [2014] EWHC 2145 (Ch), 2 July 2014, Richard Spearman QC (sitting as Deputy Judge of the Chancery Division) implied a general duty of good faith into what the...more

Outrageous Opinions in Registration Statements

In Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, No. 13-435, the respondents fired back at the petitioners in a brief filed with the Supreme Court, posing a simple question: “Whether...more

“Totality of the Circumstances” Standard Used to Sanction Mortgagee for Lack of “Good Faith” Negotiation in Foreclosure Matter

New York’s Appellate Division, Second Department, recently ruled that a mortgagee’s conduct in evaluating a borrower’s loan modification application should be judged using the “totality of the circumstances” standard to...more

Be Global - September 2014 (Global Labor & Employment)

Highlights: Australia: No implied term of mutual trust and confidence in Australian employment contracts - In a welcome development for employers, the High Court of Australia has handed down a landmark decision that...more

Leap of Bad Faith: TPAs May Be Sued for Aiding Their Own Actions

Insurers have a duty to process claims in good faith, but sometimes they farm the job out to third-party administrators (TPAs). If the TPA fouls up, many states hold that the insurer is still liable—for its own breach of...more

The Fifth Circuit Narrowly Construes "Good Faith" In The Context Of Lending To A Debtor

Debtor-in-possession financing ("DIP financing") is a critical issue that comes up at the beginning of most large to mid-sized bankruptcy cases. Companies filing bankruptcy are typically doomed to a rapid liquidation if they...more

Court Grants in Part and Denies in Part DB Structured Products’ Motion to Dismiss Trustee Repurchase Action

On August 28, Justice Marcy S. Friedman of the Supreme Court of the State of New York granted in part and denied in part DB Structured Products, Inc.’s motion to dismiss repurchase claims brought by HSBC, as Trustee for the...more

Message: Good Faith is Not Care

When an insurer issues a policy, it assumes a duty not only to investigate and pay claims, but to do so in good faith. There is, however, a difference between that duty and the duty of due care that arises under tort law. ...more

A Lesson on the ADA: Engaging in Good Faith in the Interactive Process is Essential

Understanding the mandates of the Americans with Disabilities Act and similar state and local laws is easy: employers cannot discriminate against individuals with disabilities. However, navigating the reasonable accommodation...more

Georgia Supreme Court Applies the Business Judgment Rule to Bank Officers and Directors; Decision Has Implications for Corporate...

In a landmark ruling for officers and directors of Georgia’s financial institutions, the Supreme Court of Georgia held in FDIC v. Loudermilk, S14Q0454 (Ga. July 11, 2014), that officers and directors of banks are protected by...more

The Ropes Recap: Mergers & Acquisition Law News - Second Quarter 2014

In this issue: -Delaware Legislative Update -Delaware Supreme Court Upholds Facial Validity of Fee-Shifting Provisions in Bylaws of Delaware Non-Stock Corporation -News from the Courts: -Court...more

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