Void and Unenforceable

News & Analysis as of

Litigation Funding Contract Invalidated as Champertous in Pennsylvania

This post does not involve a drug/device case – or even a tort case - but counsel worried about potentially abusive litigation funding should take a look at WFIC, LLC v. Labarre, ___ A.3d ___, 2016 WL 4769436 (Pa. Super....more

Court Upholds Enforceability of “Clickwrap” Employee Agreement

As we have previously discussed, if you want your electronic contracts to be enforceable, it is a best practice to require the counterparty to affirmatively accept the contract by checking a box or clicking a button. A recent...more

North Carolina Court Again Narrows Scope of Post-Employment Restrictions

Last week’s EmployNews reported a Fourth Circuit Court of Appeals decision applying North Carolina law that invalidated an employment non-competition clause due to what it viewed as the overreaching scope of the restrictions....more

Ninth Circuit Holds that Arbitration Provision Prohibiting Concerted Actions Violates the National Labor Relations Act and is...

In Morris v. Ernst & Young, LLP (hereinafter “Morris”), the Ninth Circuit held that an arbitration provision prohibiting the filing of concerted actions, signed as a condition of employment, violated the National Labor...more

Wisconsin Court Finds Anti-Poaching Agreements to be Unenforceable

Analyzing an anti-poaching agreement as a non-compete agreement, a Wisconsin Court of Appeals has confirmed that a former employee’s agreement not to solicit other employees may be void and unenforceable if it is too broad....more

The Dennis Decision: A Shot Across the Bow for Hospitals

A recent Virginia court decision questions the reasonable value of health care services and creates a challenge to debt collection efforts by hospitals. In March, the Circuit Court for Henry County, Patrick County, and the...more

Federal Court Decision Provides Useful Guidance to Companies Offering Products and Services Pursuant to Online Terms of Use

On July 29, 2016, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued an opinion and order in Meyer v. Kalanick, denying Uber Technologies' motion to compel arbitration of a consumer's...more

Terminal Prognosis For Physician Non-Competes in Rhode Island?

Non-competition provisions signed by Rhode Island physicians on or after July 12, 2016 are now unenforceable pursuant to recent legislation. As summarized in a prior post, the Rhode Island Superior Court in the case Medicine...more

Bankruptcy Courts Closing In – Will An Agreement Requiring Unanimous Consent To File For Bankruptcy Be Effective?

We’ve all seen it. The business opportunity looks enticing but is laced with risk about a potential bankruptcy filing down the road. As bankruptcy lawyers we are often asked how deals can be structured to prevent a...more

UPDATE: Is Your Workers’ Compensation Program Unlawful?

Under a ruling this week from the California Insurance Commissioner, your company may be insured under an unenforceable workers’ compensation program. You may also be entitled to a refund of premiums paid to California...more

The Simplest Way to Defeat Claims Alleging an Invalid Assignment of a Deed of Trust: Judicially Noticeable Documents

Recently, much judicial ink has been deployed writing opinions addressing borrower challenges to foreclosure based on allegations that the deed of trust was not validly assigned to the foreclosing lender. Earlier this...more

Bribery and Corruption in International Arbitration

Corruption in international business is becoming endemic. Transparency International's latest Global Corruption Report highlights that nearly two in five business executives say they have been asked to pay a bribe when...more

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

New York’s Highest Court Enforces Arbitration Provision in California Workers’ Compensation Insurance Agreement, Rejecting...

A recent ruling by the New York State Court of Appeals underscores the Federal Arbitration Act’s(“FAA”) strong policy favoring enforcement of arbitration agreements—even in the insurance industry and despite federal policy...more

Is Your Workers Compensation Program Unlawful?

A popular workers compensation insurance program offered by Berkshire Hathaway subsidiaries Applied Underwriters Captive Risk Assurance Company (Applied Underwriters) and California Insurance Company may be in trouble. On...more

The Supreme Court - April 2016 #2

The Supreme Court of the United States issued one decision on April 18, 2016: - Welch v. United States, No. 15-6418: Last term, the Supreme Court, in Johnson v. United States, 576 U.S. __ (2015), held that the residual...more

Utah Governor Signs Law Restricting Post-Termination Noncompete Agreements

On March 22, 2016, Utah Governor Gary Herbert signed into law the Post-Employment Restrictions Act (H.B. 251), which limits the duration of post-employment noncompete agreements between employers and employees to a maximum of...more

How does Utah’s New Noncompete Law Affect You?

Utah employers should update their form noncompete agreements to ensure they comply with the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah...more

Molek v. Molek and Parol Partitions

Oral agreements to partition lands are tricky situations that must be dealt with carefully when analyzing the title to a piece of property. Known legally as parol partitions, these agreements often arise in the context of...more

Steps Every Startup Should Take to Protect its Intellectual Property

Many startup entrepreneurs are not aware of California’s laws around the ownership of intellectual property. And for most, the concepts for products or services are the life-blood of a company’s operations and future....more

Borrower Has Standing To Challenge Foreclosure Sale Based on Late Assignment of Deed of Trust, Calif. Supreme Court Rules; Many...

The California Supreme Court has unanimously ruled in Yvanova v. New Century Mortgage Corp. that a homeowner has standing to bring a wrongful foreclosure action after a completed nonjudicial foreclosure sale on the grounds...more

If You Sell Online, Your Fine Print May Put You At Risk: Wave of Lawsuits Targets Website Terms and Conditions Under the New...

Nearly every business involved in online commerce or advertising includes disclaimers, limitations of liability, and other terms on its website’s Terms and Conditions or Rules of Use. Those Terms and Conditions are designed...more

CA Supreme Court Unanimously Holds that a Mortgage Loan Borrower Has Standing to Sue for Wrongful Foreclosure due to Allegedly...

Action Item: In a ruling last week, the California Supreme Court supported Glaski and issued a narrow holding that, post-foreclosure, borrowers have standing to assert wrongful foreclosure based on allegations that an...more

Is the Washington Legislature Caching Out Noncompete Agreements? How This Change Might Affect Your Ability to Protect Your...

For tech giants like Microsoft and Amazon, and any number of emerging tech companies, tech professionals are a hot commodity in the state of Washington. No doubt, the competition is fierce here in Seattle and within the...more

Alaska Presses D.C. Court of Appeals to Reject Trust Acquisitions in Alaska

The question of whether Alaska Natives may place land in the same federal trust status as Indian tribes in the lower 48 states was widely thought to have been resolved but is now before the Court of Appeals for the District...more

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