Willful Misconduct

News & Analysis as of

Sending Pornographic Images was Gross Misconduct Even Though Not Discovered For Several Years

In Williams v Leeds United Football Club [2015] EWHC 376 (QB), the High Court considered whether sending pornographic images from a work e-mail amounted to gross misconduct which would justify termination without notice, even...more

Seventh Circuit Says Finding of Intent Must Be Explicit for Preclusive Effect in Non-Dischargeability Action

The Bankruptcy Code exempts from discharge those debts arising from willful and malicious injuries caused by the debtor. 11 U.S.C. § 523(a)(6). Because debtors have a habit of filing bankruptcy soon after a judgment for such...more

DOJ Warns Against Wrongful Use of Streamline Procedures

The U.S. Department of Justice is considering actions against taxpayers who wrongfully used the Streamlined Procedures to assert non-willful conduct. As quoted in Tax Notes Today...more

Should An Employer Fight Unemployment? The Debate Continues . . .

You may remember that I stirred up some contentiousness a few weeks ago when I suggested that employers should not challenge unemployment claims except in the worst cases. ...more

Illinois Supreme Court Agrees to Decide Breadth of Misconduct Exception for Unemployment Benefits

In the closing days of its January term, the Illinois Supreme Court agreed to hear a case from Division 5 of the First District, Petrovic v. The Department of Employment Security. Petrovic presents an interesting issue on the...more

NLRB Subpoena Benchslap

A Circuit Court has un-tipped the NLRB’s scales in a refusal-to-bargain case. Ozark Auto. Distribs., Inc. v. NLRB, No. 11-1320 (D.C. Cir. February 10, 2015). An employer lost a tight union election and contested the election...more

Successful Appeal Against Dismissal Automatically Revives Employment Contract

In Salmon v Castlebeck Care (Teeside) Ltd & Anor UKEAT/0304/14, the Employment Appeal Tribunal (EAT) considered whether a successful appeal against a decision to dismiss needed to be communicated to the employee in order to...more

11th Circuit Addresses Coverage for Alleged Knowing FACTA Violations

In its recent decision in Travelers Prop. Cas. Co. of America v. Kansas City Landsmen, 2015 U.S. App. LEXIS 453 (11th Cir. Jan. 12, 2015), the United States Court of Appeals for the Eleventh Circuit, in a matter of first...more

Judge Will Allow Dow Whistleblower to File Wrongful Termination Suit

A federal judge is allowing an ex-fraud investigator for Dow Chemical Co. to pursue a wrongful termination claim. Kimberly Wood, who had worked for 25 years at Dow before the company fired her in October, alleges that the...more

Keeping Students In Line – Without Repercussions

In 1958, a Brown University senior was expelled because he had the temerity to bring his girlfriend to his dorm room. He did not contemplate litigation. Instead, Ted Turner moved back home to Atlanta to work at his family...more

Guarantors of a Construction Loan were Exonerated From Liability by a Bank's Misconduct Under the Loan Agreement, Notwithstanding...

California Bank & Trust's predecessor bank ("Bank") granted a $22.5 million construction loan to Five Corners Rialto, LLC ("Five Corners") to develop a 70-unit townhome project in two phases. Two principals of Five Corners...more

The Second Circuit Sets New Hurdles for Insider Trading Convictions

Under the Second Circuit’s new ruling, prosecutors have two large hurdles they must clear to convict under securities laws. First, they must prove that a defendant knew that the source of inside information disclosed tips in...more

Tolerance for Prior Misconduct Does Not Prevent Termination Based on Latest Behavior

Some employers have a high threshold for tolerating abusive employees. Outbursts or confrontations that are grounds for automatic termination by one company may only prompt corrective action from another. A recent decision...more

Persistent mockery, intimidation of supervisor was “juvenile and unworthy of a 12 year old”, warranted 6-month suspension of...

An employee’s persistent mockery and intimidating conduct towards a supervisor warranted a 6-month suspension, an arbitrator has held. The employee’s conduct included the following...more

Judge Scheindlin finds that numerous acts of litigation misconduct constitute an “exceptional case.”

TNS Media Research, LLC, et al. v. Tivo Research and Analytics, Inc. Case Number: 1:11-cv-04039-SAS - Plaintiff Kantar Media (“Kantar”) brought a suit against defendant Tivo Research and Analytics, Inc. (“TRA”)...more

Practitioner Guilty of Inequitable Conduct: Considerations and Takeaways From the American Calcar v. Honda Decision

In its 2011 Therasense, Inc. v. Becton Dickinson & Co. decision, the Court of Appeals for the Federal Circuit set forth a more forgiving "but-for" causality standard for determining whether a patent is unenforceable due to...more

Judge Barbier BP Attempt to Limit Clean Water Act Fines

On September 4, 2014, District Court Judge Carl Barbier issued his “Findings of Fact and Conclusions of Law – Phase One Trial” in the Deepwater Horizon oil spill litigation. In his 153 page opinion, Judge Barbier found BP...more

Employer Permitted to Use “After-Acquired” Evidence at Discrimination Trial

In Weber v. Fujifilm Medical Systems USA Inc., et al., case numbers 13-4891 and 14-0206, decided on October 9, 2014, the U.S. Court of Appeals for the Second Circuit held that a former executive’s employer could use...more

Second Circuit Allows After-Acquired Evidence to Support Termination Decision

On October 9, 2014, the United States Court of Appeals for the Second Circuit, in a summary order, affirmed a district court’s admission of evidence at trial of a former employee’s misconduct, discovered after the employee’s...more

In BP Gulf Oil Spill Litigation, the District Court Decided Important Legal Questions that will Likely be Appealed, including the...

On September 4, 2014, U.S. District Judge Carl Barbier issued findings of fact and conclusions of law for the trial of the MDL of the Gulf Oil Spill, which included findings that the oil spill was the result of BP Exploration...more

Energy Newsletter - October 2014

In This Issue: - Mexico's New E&P Contracts - Electricity Reform in Mexico: New Opportunities and Roles - New Licence Terms Promoting Unconventional Exploration and Production are Introduced for the UK's 14th...more

Use Of Police Reports By School District In The Aftermath Of The Supreme Court’s Recent Ruling

Police reports are a practical tool for school districts in investigating (and countering) both student and employee misconduct. The Connecticut Supreme Court has resolved an intense debate about what law enforcement...more

Texas Supreme Court Recognizes Exceptions to Enforcement of No-Damages-for-Delay Clauses

On August 29, 2014, in Zachry Construction Corp. v. Port of Houston Authority of Harris County, No. 12-0772, 2014 WL 4472616 (Tex. 2014), the Texas Supreme Court found that no-damages-for-delay clauses that purport to waive...more

Florida’s Fifth District Court of Appeal Holds “Wrongful Conduct” on Behalf of Insurer is Necessary Prerequisite to an Insured’s...

In Omega Insurance Co. v. Kathy Johnson, 2014 Fla. App. Lexis 13737 (Fla. Dist. Ct. App. 5th Dist. Sept. 5, 2014), the Fifth District reversed a Marion County trial court’s grant of attorneys’ fees based upon Omega’s...more

Delaware Supreme Court Rules That Privileged Documents Must Be Produced To Shareholders Investigating Corporate Misconduct

The Delaware Supreme Court recently held that, in certain circumstances, shareholders may be able to obtain access to privileged, internal documents in order to investigate potential breaches of fiduciary duty. In Wal-Mart...more

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