Unclean Hands

News & Analysis as of

Cheatin’ Ain’t Easy: Potential Theories of Liability Emerge for Online Cheating Website Ashley Madison

Ashley Madison, a dating website specifically geared towards married individuals looking to have an affair, recently found out it was the victim of cyber hackers who claim to have stolen personal information, including names...more

Poor Litigation Conduct by Prevailing Party Not Enough to Obviate Exceptional-Case Doctrine - Gaymar Indus., Inc. v. Cincinnati...

Addressing the degree to which litigation conduct can preclude the recovery of fees under 35 U.S. C. § 285, the U.S. Court of Appeals for the Federal Circuit vacated the denial of a fee award, finding that sloppy litigation...more

Today's Immigration Debate Impacts California Employment Law and Litigation

A year ago, the California Supreme Court limited damages in employment discrimination claims brought under the California Fair Employment and Housing Act (FEHA) when an employer discovers it employed an unauthorized worker....more

In re Numoda Corp. S’holders Litig., C.A. No. 9163-VCN (Del. Ch. Jan. 30, 2015) (Noble, V.C.)

In this memorandum opinion, the Court of Chancery exercised its powers under 8 Del. C. § 205 to resolve various disputes regarding the capital structure of two corporations, Numoda Corporation (“Numoda Corp.”) and Numoda...more

I Falsified My Time Records … But I’m Still Suing You for Overtime

Employers sometimes rely on equitable arguments, such as “unclean hands” (which asserts that it would not be fair to hold an employer liable when the employee’s actions caused or contributed to his own injury or damages). But...more

Supervisor’s Knowledge of Unreported Overtime May Lead to Liability Under the FLSA

The Fair Labor Standards Act (FLSA) requires employers to pay nonexempt employees at least one-and-one-half times the employees’ regular hourly wage for every hour worked in excess of 40 hours in one week. Courts regularly...more

Equitable Defenses Do Not Apply to FLSA Overtime Claim

Defendants sometimes assert “equitable” defenses to legal claims brought against them. In some situations, courts have the discretion to bar claims by plaintiffs whose “unclean hands” or other actions make recovery manifestly...more

11th Circuit: Employer Aware of Employee's Underreported Hours Cannot Rely on "Unclean Hands" Defense in FLSA Case

Santonias Bailey, a TitleMax employee, underreported his hours worked. His supervisor instructed him to do so, and the supervisor would also himself routinely revise Baily’s time records to reflect even less hours worked. ...more

Flash in the Panama

Many of you may have heard recently that (in)famous dictator and all-around terrible (misunderstood?) person Manuel Noriega has sued Activision...more

Finding of Exceptional Case Denied Due to Unclean Hands

In Gaymar Industries, Inc. v. Cincinnati Sub-Zero Products, Inc. et al, 1-08-cv-00299 (NYWD July 3, 2014, Order) (McCarthy, M.J.), the magistrate judge recommended denial of defendant's request for reconsideration of its...more

Did You Know…California Supreme Court Holds Undocumented Workers Are Not Barred From All Relief

In Salas v. Sierra Chemical Co. the California Supreme Court recently held that an undocumented worker who fraudulently obtained employment through use of someone else’s social security number may seek damages for employment...more

California Supreme Court: Undocumented Worker May Recover Lost Wages for Period Up to Employer’s Discovery of Immigration Status

Salas v. Sierra Chemical Co., S196568 (June 26, 2014): On June 26, the California Supreme Court issued a decision holding that federal immigration law does not preempt a California law that extends state law protections to...more

Defending the Malicious Prosecution claim

The complex tort of malicious prosecution is frequently threatened yet rarely fully understood. The elements of the claim are that a prior action (1) was commenced by or at the direction of the defendant and was pursued to...more

Burr Alert: Ground Control, LLC v. Capsco Industries, Inc., et. al.: Opening The Door To Claims By Unlicensed Contractors In...

The Mississippi Supreme Court, in a case of first impression, recently addressed claims for nonpayment by contractors performing work in the state in violation of Miss. Code Ann. Section 31-3-15, which requires contractors...more

In re Mobilactive Media, LLC, Consol. C.A. No. 5725-VCP (Del. Ch. Jan. 25, 2013) (Parsons, V.C.)

In this memorandum opinion, the Delaware Court of Chancery found that a member of a joint venture breached a limited liability company agreement, breached its fiduciary duties by usurping corporate opportunities, and violated...more

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