News & Analysis as of

Bad Faith Motion to Dismiss

DLA Piper

Delaware District Court Sheds Light on Standards for Dismissal of Chapter 11 Case Based on Bad Faith

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On August 28, 2024, Judge Gregory B. Williams of the US District Court for the District of Delaware issued a ruling in AIG Financial Products Corporation, Civ. No. 23-573, affirming an order on appeal from the Delaware...more

Foley & Lardner LLP

Significant Recent Decisions Relevant To Private Company M&A

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In navigating the complex world of private company mergers and acquisitions (M&A), understanding recent legal decisions is paramount. This white paper serves as a guide, distilling intricate court rulings into digestible...more

Farrell Fritz, P.C.

A Lesson In Drafting Capital Call Provisions

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Those of us who follow the Delaware Chancery Court’s output are regularly treated to lengthy, detailed, finely crafted opinions sometimes in excess of 100 pages. Opinions of that length from our New York state court judges...more

Venable LLP

Judge Tells FTC That It Can’t Have Its Part III and Eat It, Too

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I’ve never really understood the saying “You can’t have your cake and eat it, too,” but I was reminded of it when I read U.S. District Judge Amy Totenberg’s opinion rejecting the FTC’s efforts to stay or voluntarily dismiss...more

Goodwin

Delaware Court of Chancery Declines to Dismiss Investment Firm from Stockholder Derivative Suit

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Delaware Court of Chancery Declines to Dismiss Investment Firm from Stockholder Derivative Suit; Delaware Chancery Court Dismisses Majority of Claims Alleging that California Biotech Firm Profited from Nonpublic Information...more

Wiley Rein LLP

D&O Policy’s Professional Services Exclusion and Contract Exclusion Do Not Bar Coverage For Claims Arising from Trade Show...

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Applying Illinois law, the U.S. District Court for the Northern District of Illinois has held that a D&O policy’s professional services and contract exclusions do not bar coverage for lawsuits seeking damages for fees and...more

Goodwin

Massachusetts Superior Court BLS Finds No Duty To Disclose Alleged Preliminary Merger Discussions

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Massachusetts Superior Court BLS Finds No Duty to Disclose Alleged Preliminary Merger Discussions, Northern District of California Declines to Dismiss Oracle Fraud Class Action Suit, SCOTUS Hears Oral Argument in Goldman...more

White and Williams LLP

Reinsurance Litigants May Need to Avoid Putting Their Faith in the Tort of Bad Faith

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In a recent Alabama federal court decision, aptly captioned Alabama Municipal Insurance Corporation v. Munich Reinsurance American, Inc., the plaintiff reinsured brought three counts of bad faith against the defendant...more

Pillsbury Winthrop Shaw Pittman LLP

Can the Government Terminate a Contract for Convenience When It Does Not Actually Terminate the Contract for Convenience?

Court of Federal Claims rules that the government “constructively” terminated a contractor for convenience when it did not order the quantities specified in the contract. The “constructive termination for convenience”...more

Goodwin

Delaware Court of Chancery Denies Motion to Dismiss in Shareholder Class Action Lawsuit Related to Mindbody Inc.'s Billion Dollar...

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Delaware Court of Chancery Denies Motion to Dismiss in Shareholder Class Action Lawsuit Related to Mindbody Inc.’s Billion Dollar Merger with Vista Equity Partners; Second Circuit Unanimously Affirms Lower Court’s Decision...more

Carlton Fields

Pennsylvania Federal Court Refuses to Dismiss Bad Faith Claim, Even Though Insurer Timely Made Demanded Payments

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There have been more developments in Ironshore Specialty Insurance Co. v. Conemaugh Health System Inc., the case brought by Ironshore, as excess carrier, to seek reimbursement of amounts paid in an underlying medical...more

Patterson Belknap Webb & Tyler LLP

Judge Ramos Finds “Bad Faith” Enforcement of a Patent is Not Patent Misuse

On March 23, 2020, U.S. District Court Judge Edgardo Ramos granted a motion to dismiss counterclaims and strike affirmative defenses because they were not plausible and did not meet the heightened pleading requirements of...more

Stinson - Corporate & Securities Law Blog

“Sole Discretion” Language in LLC Agreement does not Eliminate Fiduciary Duties

The Delaware Court of Chancery considered a number of issues in Skye Mineral Investors, LLC et al v DXS Capital (U.S.) Limited et al.  The dispute was among members of a Delaware limited liability company, Skye Mineral...more

A&O Shearman

Delaware Court Of Chancery Denies Motion To Dismiss Claims Regarding Squeeze-Out Merger Because Special Committee Members Were...

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On February 26, 2020, Chancellor Andre G. Bouchard of the Delaware Court of Chancery denied a motion to dismiss breach of fiduciary duty claims brought by former shareholders of AmTrust, Inc., challenging the take-private...more

Holland & Knight LLP

SDNY Court: Claim Must Be "Wholly Without Merit" to be Entitled to Attorney Fees Under DTSA

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Magistrate Judge James L. Cott of the U.S. District Court for the Southern District of New York recently recommended denial of a motion for attorneys' fees to a prevailing party under the Defend Trade Secrets Act (DTSA). The...more

Kramer Levin Naftalis & Frankel LLP

"Time Is On My Side" — When a "Time of the Essence" Closing Date Keeps Rolling Like a Stone for 60 Days

The recent decision of the Bankruptcy Court for the Southern District of New York in In re AAGS Holdings LLC, Case No. 19-13029 (SMB) (Bankr. D. Del. Nov. 12, 2019), underscores the ability of debtors — and specifically, for...more

Bradley Arant Boult Cummings LLP

Can You Challenge a CPAR Evaluation in a Bid Protest?

Technically, no. However, when the contractor is protesting the award of a contract for the same agency that issued the unfavorable Contractor Performance Evaluation Report (CPAR), the contractor may have some success arguing...more

Farrell Fritz, P.C.

Allegedly “(Leon) Black”-listed Former Apollo Employee Fails to State A Business Tort Claim

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The line between aggressive business competition and unlawful conduct can sometimes be difficult to determine. Many different theories of tort liability have developed over the years to address the variations of unlawful...more

Robins Kaplan LLP

Empire State of Mind: New York Bad Faith Update

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WHILE THERE REMAINS NO BAD FAITH CAUSE OF ACTION IN NEW YORK, A RECENT APPELLATE DIVISION CASE OUT OF THE FIRST DEPARTMENT MAKES PLAIN THAT AN INSURED NEED NOT MEET A HEIGHTENED PLEADING STANDARD WITH RESPECT TO CONSEQUENTIAL...more

Hinshaw & Culbertson LLP

FDCPA Claims Dismissed As a Result of Plaintiff's Bad Faith Bankruptcy Conduct

In Vedernikov v. Atl. Credit & Fin., Inc., (Vedernikov I), the U.S. District Court of New Jersey granted the defendant Midland Funding's motion to dismiss, which successfully argued the plaintiff should be estopped from...more

Snell & Wilmer

Is a Bankruptcy Plan that Violates Federal Criminal Law Proposed in Bad Faith?

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Although legal in many states, marijuana remains illegal under federal criminal law. See 21 U.S.C. § 856(a)(1). One would think that engaging in illegal activity under federal criminal law would preclude relief under federal...more

Saul Ewing LLP

Constrained By Rule 12(B)(6), South Carolina District Court Denies Insurer’s Motion to Dismiss Insured’s Breach of Contract and...

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Skinner v. Horace Mann Ins. Co., No. 4:18-CV-00922-RBH, 2019 WL 935243 (D.S.C. Feb. 26, 2019) - Plaintiff Annie Skinner (Skinner) allegedly suffered severe injuries and extensive property damage as a result of a February...more

Saul Ewing LLP

Federal Court Shuts Down Bad Faith Plaintiff’s Attempt At Forum Shopping

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An insurer successfully defeated a plaintiff’s attempt to keep a bad faith action in state court by “manipulating” federal diversity jurisdiction by naming an individual claims adjuster as a defendant....more

Jaburg Wilk

Arizona District Court Dismisses Bad Faith and Aiding & Abetting Claims Against TPA and Adjuster

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The Holding - In Centeno v. American Liberty Ins. Co., 2019 WL 568926 (D. Ariz. Feb. 12, 2019) (Order), an insurance bad faith case arising from a workers’ compensation claim, the Arizona District Court granted a motion to...more

Jaburg Wilk

Arizona Court of Appeals Enforces Workers' Comp Exclusion to MedPay Coverage

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The Holding - In Doneson v. Farmers Ins. Exch., 2018 WL 4781382 (Ariz.App. Oct. 3, 2018), an insurance bad faith case, the Arizona Court of Appeals upheld an exclusion precluding MedPay benefits “if workers’ compensation...more

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