Gross Negligence

News & Analysis as of

Corporate Trustees: how gross must negligence be?

Surprisingly, the distinction between negligence and gross negligence in English contract and trust law is unclear. On one view, reflected in the older cases, there is little or no difference at all....more

Feeling Conflicted: The Importance of Disclosing Potential Conflicts, the Stockholder Vote and the Business Judgment Rule

Shortly after the announcement of a merger (the Merger) between Zale Corporation (Zale) and Signet Jewelers Limited (Signet) on February 19, 2014, each of five plaintiffs (stockholders of Zale) filed a class action complaint...more

Responsibility Shifting for Cyber Attacks?

When a company’s protected data is compromised, potential litigants generally look to the company itself as the target for damages claims. The list of recent cases filed against the company suffering the data breach is long...more

Justice Can Be Evasive — Dontrell Stephens and a Claims Bill

Dontrell Stephens was shot four times by a deputy of the Palm Beach County Sheriff’s Department soon after he got off his bike because a deputy stopped him for riding across a roadway. - He was told to stop by the...more

E-Discovery and Information Management: New Federal Rules Provide Welcome Relief to Businesses Facing Electronic Document...

A recent amendment to Federal Rule of Civil Procedure 37(e) abrogates a series of federal court decisions that imposed harsh "adverse inference" sanctions on litigants that failed to initiate litigation holds to preserve...more

Rural/Metro: Delaware Supreme Court Affirms $76 Million Award Against Financial Advisor: Holds That Financial Advisors Are Not...

On November 30, 2015, the Delaware Supreme Court issued an opinion affirming the Court of Chancery’s decision in In re Rural/Metro Corporation Stockholders Litigation. In the earlier decisions, the Court of Chancery found...more

Federal Court Sets Strict Standards for Bringing Customs Penalty Cases

In United States v. Nitek Electronics, Inc., decided December 1, 2015, the U.S. Court of Appeals for the Federal Circuit upheld a U.S. Court of International Trade decision that limited the government’s powers in seeking to...more

West Virginia Federal Court Certifies Class for Liability Purposes in Chemical Spill Suit

A West Virginia federal court certified a class for purposes of determining Defendants’ liability for a chemical spill that disrupted the water supply for approximately 300,000 residents in the Charleston area. Good v. Am....more

Court of Chancery Applies Business Judgment Standard Under New Supreme Court Precedent

This is an important decision that reverses a prior opinion in the same case. The Court did so because after it issued its prior opinion, the Delaware Supreme Court issued its Corwin decision holding that when a merger is...more

Product Liability Update - October 2015

Massachusetts Federal Court Holds Proof of Testing of Proposed Alternative Design Not Required in Design Defect Claim, Evidence Plaintiff Ignored Defendant’s Warnings Did Not Establish He Was Sole Proximate Cause of Injury on...more

Inside M&A - October 2015

Overview of SPACs and Latest Trends - A number of recent successful business combination transactions involving special-purpose acquisition companies (SPACs) led by prominent sponsors have driven a resurgence in the SPAC...more

Stadium Follies – When Can You Sue the State of Texas?

What a year it has been for the Podunk (Texas) High School football team. After the school opened its new $50 million, 18,000-seat stadium at the beginning of the year, the team has reeled off an undefeated regular season and...more

RMBS Trustee Wins Partial Dismissal of Investor Claims

On September 29, 2015, Judge Valerie Caproni of the United States District Court for the Southern District of New York partially granted RMBS trustee Bank of New York Mellon’s (“BNYM”) motion to dismiss claims brought by...more

Greene v. Paramount Pictures Corp. - USDC, E.D. New York, September 30, 2015

District court grants defendants’ motion to dismiss invasion of privacy claims, holding that defendants’ film “The Wolf of Wall Street” did not use plaintiff’s actual name or image, and grants in part and denies in part...more

Kentucky Supreme Court Sets Forth Helpful Principles On Liability For Punitive Damages

Cases in which an appellate court holds that a state’s standard for punitive liability was not satisfied even though there was sufficient evidence to support liability for the underlying causes of action are regrettably rare....more

HUD, FDIC, and U.S. Attorney File Suit Against Mortgage Lending Companies

On September 28, HUD, the FDIC, and the U.S. Attorney for the Eastern District of New York filed suit against a non-profit housing counseling corporation and certain mortgage lenders for allegedly running a scheme to defraud...more

Walking the Regulatory Compliance Path Defeats Punitive Damages

The Pope came to Philadelphia this past weekend. That’s not the first time this has happened (JPII stopped by in 1979), but the level of paranoia this time around led to four days of street shutdowns, parking prohibitions,...more

Fourth Circuit: Business Judgment Rule May Not Protect Bank Officers in FDIC Action

Why it matters - Bank officers may be liable in a lawsuit brought by the Federal Deposit Insurance Corp. (FDIC) while the directors escaped liability, in a new ruling from the Fourth Circuit Court of Appeals interpreting...more

Construction Case Law Update - September 15, 2015

Home Sales, Disclosing Defects - Home purchasers appealed summary judgment granted in favor of sellers regarding claims of defects that had a material adverse effect on the property’s value pursuant to Johnson v. Davis, 480...more

Straight Outta Delaware: JLI Invest S.A. et al. v. Cook et al.

As soon as we start to think that Delaware’s unclaimed property practices and administration couldn’t possibly get any more egregious, another lawsuit like JLI Invest S.A. et al. v. Cook et al., Case No. 11274 surfaces. The...more

Inadequate Record Keeping May Result in Gross Negligence For Injuries Caused by Exercise Equipment Malfunction

In Chavez v. 24 Hour Fitness USA, Inc., 2015 No. H040987, the California Court of Appeal, Sixth District, reversed summary judgment in favor of defendant 24 Hour Fitness USA, Inc. (“24 Hour”), holding defendant’s incomplete...more

Read Before Signing: Court Finds Fact-Intensive Gross Negligence Claims Should Proceed to Jury, Where Deviation from Industry...

In Jimenez, et al. v. 24 Hour Fitness, USA, Inc. (filed June 9, 2015, No. C071959), California’s Third Appellate District held that where fact-intensive gross negligence claims exist, especially with evidence of potential...more

Analyzing the Enforceability of a Release—Was There Gross Negligence?

Woodland Hills personal injury lawyer Barry P. Goldberg is consulted for many very serious injuries sometimes related to fairly dangerous activities and others rather routine. More and more, we are seeing a signed “Release...more

Recent Maritime Cases Illustrate the Different Legal Risks Involved with Conducting Offshore Oil and Gas Operations

In May 2015 a U.S. District Court and U.S. Court of Appeals each issued opinions that address important legal issues concerning risk management in the offshore energy industry. In Marquette Transportation Co. Gulf-Inland, LLC...more

Zachry Construction Corp.: The End to Indemnity for Exemplary Damages?

In August 2014, the Texas Supreme Court decided Zachry Construction Corp. v. Port of Houston Authority of Harris County, 2014 WL 4472616 (Tex.). While the case involves construction issues—and specifically the enforceability...more

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