News & Analysis as of

Appeals Good Faith

McDonnell Boehnen Hulbert & Berghoff LLP

CVS Pharmacy Inc. v. Forest Laboratories Inc. (2d Cir. 2024)

In a decision characterized (somewhat remarkably) by the Circuit Court as being one of first impression, the Second Circuit affirmed dismissal with prejudice of an antitrust allegation by a class of plaintiffs* against Forest...more

Goodell, DeVries, Leech & Dann, LLP

Timely Good-Faith Efforts to Make Restitution in Attorney Discipline Cases

When fashioning a sanction in attorney discipline cases, the Supreme Court will consider both aggravating factors and mitigating factors. Bar Counsel must prove any aggravating factors by clear and convincing evidence, and...more

McDermott Will & Emery

All That Glitters: Use of Registered Mark To Describe Watch Color Was Fair Use

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The US Court of Appeals for the Second Circuit affirmed a district court’s grant of summary judgement to a luxury-watchmaker defendant, holding that its use of a registered and incontestable trademarked term was fair use...more

Walkers

Losing the faith? Implied term of good faith rejected in Jersey contract law

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There is no generally implied term of good faith in all Jersey law contracts, the Royal Court has held. In doing so, it has answered a question left open in earlier Jersey judgments – including by the Court of Appeal in the...more

Fuerst Ittleman David & Joseph

Florida Litigation Procedure Update: Third DCA Clarifies Key Aspects of § 57.105

In AT&T Mobility, LLC v. Rigney, 3D21-2261 (Fla. 3d DCA Sept. 6, 2023), Florida’s Third District Court of Appeal reviewed the denial of two motions for sanctions under section 57.105, Florida Statutes. In its ruling, the...more

Patton Sullivan Brodehl LLP

“Business Judgment Rule” Applies to HOAs

California’s common law “business judgment rule,” as described by the courts, protects from court intervention “those management decisions which are made by directors in good faith in what the directors believe is the...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Mine Safety and Health Administration Act Enforcement: Federal Appellate Court Addresses Application of Methane Safety Regulations

Co-Author: Elizabeth Strickland The United States Court of Appeals for the D.C. Circuit (“Court”) addressed in a June 16th decision certain Mining Safety and Health Administration (“MSHA”) regulations. See Peabody Midwest...more

Blake, Cassels & Graydon LLP

Cour d’appel de l’Ontario : Une perte ne peut être présumée par suite d’un manquement à l’obligation d’exécution honnête

Dans l’affaire Bhatnagar v Cresco Labs Inc (l’« affaire Bhatnagar »), la Cour d’appel de l’Ontario (la « CAO ») a statué qu’il ne peut être présumé que des dommages-intérêts seront attribués lorsqu’un défendeur a manqué à son...more

Blake, Cassels & Graydon LLP

No Loss, No Foul: Ontario Court of Appeal Clarifies That Loss Will Not Be Presumed From a Breach of the Duty of Honest Contractual...

In Bhatnagar v. Cresco Labs Inc. (Bhatnagar), the Court of Appeal for Ontario (Court) held that damages are not presumed where a defendant breaches the duty of honest contractual performance. Rather, according to the Court,...more

Dorsey & Whitney LLP

SCOTUS Removes a Partial Barrier to Challenging Unstayed Bankruptcy Sales to Good-Faith Purchasers

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In MOAC Mall Holdings LLC v. Transform Holdco LLC, 134 S.Ct. 927, 937 (2023), the U.S. Supreme Court recently resolved a debate that has long divided Circuit Courts throughout the U.S: whether section 363(m) of the Bankruptcy...more

A&O Shearman

The last word on good faith?

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Last autumn, the Court of Appeal held that actions taken by majority shareholders of a company, asking directors to resign, were not unfairly prejudicial to the minority shareholders. In doing so, the court made some...more

Bracewell LLP

Use It or Lose It: U.S. Supreme Court Unanimously Holds in MOAC Mall Holdings LLC That 363(m) Protections Can Be Waived

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The U.S. Supreme Court recently issued its latest bankruptcy opinion in MOAC Mall Holdings LLC v. Transform Holdco LLC, holding that the Bankruptcy Code’s rule against invalidating 363 sales after appeal is not an iron-clad...more

Bracewell LLP

Lightning Round: LTL Management Files “Chapter 22” Case Immediately Following Bankruptcy Court’s Dismissal of its Prior Bankruptcy

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Just hours after the United States Bankruptcy Court for the District of New Jersey entered an order dismissing the Chapter 11 Case of Johnson & Johnson subsidiary, LTL Management, as a bad faith filing, LTL filed for Chapter...more

Venable LLP

Good Faith Defense Precludes Final Pay and Wage Statement Penalties

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The California Court of Appeal recently issued an opinion that brings good news to employers in connection with California's draconian penalties for late payment of final wages....more

ArentFox Schiff

Good Faith Defense Defeats Penalties on California Break Issues

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Last year, in Naranjo v. Spectrum Security Services, Inc., 13 Cal.5th 93 (2022), the California Supreme Court held that an employer’s failure to timely pay premium pay for meal and rest break violations could subject the...more

Bracewell LLP

Texas "Two-Step" Forward, Three Steps Back for Mass Tort Debtors in the Third Circuit After LTL

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In a decision that may provide much-needed boundaries around the permissibility of debtors created from “out-of-the-box” prepetition corporate transactions, on January 30, 2023, the United States Court of Appeals for the...more

Maron Marvel

3rd Circuit Rejects Johnson & Johnson’s Effort To Set Up Subsidiary In Bankruptcy Court To Resolve Talc Asbestos Claims

Maron Marvel on

On January 30, 2023, the Third Circuit dismissed Johnson & Johnson (J&J)’s subsidiary LTL’s Chapter 11 bankruptcy petition because the facts did not support the financial distress required for the entity’s good faith filing...more

Latham & Watkins LLP

Meaning of “Good Faith” Under English Law: Latest Clarification

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The Court of Appeal reiterates the importance of the specific context in interpreting contractual good-faith duties. English law does not include a general implied duty of good faith. However, the English courts are...more

Conyers

Directors’ Duties on the Precipice of Insolvency: Brief Overview of BTI 2014 LLC v Sequana SA

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The United Kingdom Supreme Court (the “UKSC”) recently delivered its eagerly anticipated judgment in BTI 2014 LLC v Sequana SA and others [2022 UKSC 25] (“Sequana”). The reasoning in Sequana will be highly persuasive in the...more

Foley & Lardner LLP

Construction Project Executives Beware: The Massachusetts Prompt Pay Act Means Business

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If you are an executive involved in a Massachusetts construction project, the routine pay applications you exchange in the ordinary course must now receive your utmost attention — as any failure to reject a pay application in...more

McDermott Will & Emery

Hit the Brakes: Experimental Use, Enhanced Damages Determinations Require Redo

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The US Court of Appeals for the Federal Circuit reversed and remanded a district court decision regarding experimental use under 35 U.S.C. § 102(b) and the application of enhanced damages based on an allegedly flawed...more

Perkins Coie

Rare Employer Victory in CA Misclassification Case

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A unanimous three-judge panel reached a decision in the case of Bijon Hill v. Walmart. Last week, the U.S. Court of Appeals for the Ninth Circuit affirmed that Walmart classified a freelance model, Bijon Hill, as an...more

Sheppard Mullin Richter & Hampton LLP

Good Faith Dispute Over Employment Relationship Allows Walmart to Escape Waiting Time Penalties

In a recent opinion in Hill v. Walmart Inc., the Ninth Circuit affirmed summary judgment in favor of Walmart on Hill’s claim for waiting time penalties under Labor Code section 203, finding there was a good-faith dispute...more

Smith Gambrell Russell

A Century Later: Implied Duty of Good Faith and Fair Dealing Still Going Strong

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Parties to construction contracts are often surprised to learn that they are bound to implied unwritten contract obligations in addition to the written terms of their contracts. Courts in the United States began to...more

Nelson Mullins Riley & Scarborough LLP

Buyer Beware: The Risk of Ignoring Known Defects in Title Cannot be Cured by “Free and Clear” Bankruptcy Sale

Envision a scenario in which you purchased a right of first refusal for a parcel of real estate. That right, as bargained for, would let you purchase the parcel if it was put up for sale by matching any competing bidder’s...more

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