News & Analysis as of

Texas Federal Court Rules “Anti-Competitive” Employment Covenants Do Not Raise Federal Antitrust Question

In a case solely comprised of state-law claims to enforce employment covenants, a United States District Judge in the North District of Texas ruled last week in Leica Microsystems Inc. v. Hernandez et al., No. 3:15-CV-2531-D,...more

Federal Judge Remands Viagra Case to State Court

In February 2015, sixteen plaintiffs sued Pfizer, the maker of Viagra, alleging that their ingestion of Viagra between 1998 and 2013 caused them to develop melanoma. Plaintiffs asserted the following cause of actions: breach...more

Sales Data Alone Insufficient to Support CAFA Jurisdiction in Gerber’s Graduates Puffs Labeling Case

In Gyorke-Takatri v. Nestle USA, Inc., the United States District Court for the Northern District of California held that parties in a class action seeking to remove an action to federal court must provide sufficient...more

Preemption Challenge to State Demand-Letter Regulations Confers Jurisdiction Under Post-AIA 35 U.S.C. § 1295(a)(1) - Vermont v....

Addressing jurisdictional issues, the U.S. Court of Appeals for the Federal Circuit relied on post-AIA 35 U.S.C. § 1295(a)(1) to exercise, for the first time, jurisdiction over an appeal in which only a counterclaim arose...more

Taking Down the Flagg: Fifth Circuit Remands Med Mal & Device Case for Lack of Diversity Despite Uncompleted Administrative Review...

A divided panel (2-1) of the U.S. Circuit Court of Appeals for the Fifth Circuit recently held that failure to exhaust a state law pre-suit medical panel review process did not subject the plaintiff’s claims against the...more

Business Litigation Report - September 2015

Alleging Fraud in a Financial Crisis: The Second Circuit Articulates a Less Stringent Pleading Standard for Loss Causation: Loss causation has emerged as a central obstacle to post-financial-crisis fraud cases. The loss...more

Clear Contractual Terms Prevail Over Equitable Principles in Bankruptcy Cases (Again)

Bankruptcy courts in the U.S. are widely viewed as favorable fora for debtors, trustees and creditors’ committees to pursue creative and difficult causes of actions against deep-pockets lenders and others in an attempt to...more

September 2015: Product Liability Litigation Update

Ninth Circuit Restricts Scope of CAFA’s “Local Single Event” Exception. In Allen v. Boeing Co., 784 F.3d 625 (9th Cir. 2015), the Ninth Circuit recently held that a case did not fall within the Class Action Fairness Act’s...more

September 2015: Appellate Update

Postscript to the U.S. Supreme Court’s October 2014 Term. The Supreme Court of the United States completed its October 2014 term in June, having decided a number of matters of wide public interest. Among the most notable was...more

Illinois Federal Court “Sanctions” Fraudulent Joinder of Pharmacies

We learned a new word the other day while watching TV: Autoantonym. An autoantonym is a word that means one thing, but it also means the opposite. The word is its own antonym, and it is remarkably easy to think of examples...more

Copyright Preemption Notwithstanding No Copyright Protection and No Copyright Claims - Spear Marketing, Inc. v. BancorpSouth Bank

In a suit alleging trade secret theft of ideas related to a software program, the U.S. Court of Appeals for the Fifth Circuit affirmed both a lower court’s denial of remand to state court based on complete copyright...more

Eastern District of Pennsylvania: Insureds’ Negligence And Unfair Trade Practices Claims Against Adjusters Are Colorable Under...

Kennedy v. Allstate, No. 15-2221 (E.D. Pa. July 8, 2015). District Court recognizes possibility that insurance adjusters owe a duty of care to insureds that would be breached by failing to conduct a reasonable...more

California Employment Law Notes - September 2015

Newly Enacted California Statutes - The Word "Alien" Is Stricken From The California Labor Code - Section 1725 of the California Labor Code defines "alien" as "any person who is not a born or fully naturalized...more

The Wild West of Improper Joinder in North Texas

In 1998, the Texas Supreme Court recognized that an insurance claim adjuster can be held personally liable for a breach of the Texas Insurance Code. Based on this precedent, it has become commonplace for claim adjusters to be...more

Ninth Circuit Interprets CAFA Exception Narrowly, Facilitating Removal in Environmental Tort Cases

Creating a Circuit split, the Ninth Circuit held that a tort case against a Washington corporation did not fall under the so-called “local event” exception to the Class Action Fairness Act (“CAFA”) and, therefore, had been...more

Trade Secrets and Removal Based on Copyright Preemption

Jurisdiction and removal may not sound like hot topics, but these considerations are critical and sometimes dispositive. Real talk: Certain state court systems are terrible places to litigate. It’s one thing to litigate a...more

When Plaintiffs Fail to Plead the “Local Controversy” Exception to CAFA

A narrow exception to CAFA’s broad removal provisions is the “local controversy” exception, which prohibits removal in certain cases where the dispute is deemed sufficiently contained within the forum state that the interests...more

Seventh Circuit: "Frivolous" Argument Saves Jurisdiction

The Seventh Circuit issued an important opinion by Judge Easterbrook today, Lu Junhong v. Boeing Co., No. 14-1825, a clump of cases that arose after an Asiana Airlines jet manufactured by Boeing struck a seawall while landing...more

Eastern District of Pa. Again Recognizes Montreal Convention Exclusively Governs Claims

Action Item: Until there is appellate resolution of the preemptive effect of the Montreal Convention, airlines sued in state court over damages allegedly arising during the course of international transportation should...more

Service Of Suit Clause Waives Reinsurers’ Rights To Remove Case To Federal Court

A federal district court in New Hampshire has held that a service of suit clause contained in reinsurance contracts waives the reinsurers’ rights to remove a litigation brought against them in state court by the Insurance...more

Check-Out Time at the Hotel California?

We love our home state of California, but we have long bemoaned the widespread practice of what we call litigation tourism. That is where unrelated plaintiffs, sometimes thousands of them, from all corners of the U.S. join...more

"Supreme Court: A Term-End Review"

As the U.S. Supreme Court’s 2014-15 term draws to a conclusion, the Court has resolved — or will resolve in a matter of days — several cases with potentially wide-reaching implications for a range of important policy and...more

10 Years After CAFA, the Fairness of Class Actions is Revisited by Newly Proposed Legislation

Class action lawsuits have become a commonplace fixture in the American judicial landscape and carry the force to extract billions of dollars from defendants, many of whom settle once a class is certified due to the costs and...more

Expansion of Class Allows Second Removal Under Class Action Fairness Act, According to Ninth Circuit

It is important to remember that when a putative class action is remanded to state court under the Class Action Fairness Act (“CAFA”), that may not be the end of the jurisdictional battle. ...more

Creative Construction: The Ninth Circuit Relaxes Removal Statute’s Timeliness Test in Class Action Fairness Act Cases

In Jordan v. Nationstar Mortgage LLC, No. 14-35943 and 15-35113, 2015 WL 1447217 (Apr. 1, 2015 9th Cir.), a Ninth Circuit panel held that cases subject to the Class Action Fairness Act (“CAFA”) become “removable” only when...more

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