News & Analysis as of

Contract Drafting Appeals Contract Terms

Eversheds Sutherland (US) LLP

Arbitration carve outs: Will the exception swallow the rule?

In a closely watched case on the construction of arbitration clauses, the US Supreme Court granted certiorari to review Schein v. Archer & White Sales, Inc. on June 15, 2020. The Petitioner, Henry Schein, Inc., (Henry Schein)...more

Payne & Fears

California Appellate Court Issues Guidance on Enforcing Arbitration Agreements

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While much of the world came to a halt in response to the coronavirus pandemic, the California Courts of Appeal were busy issuing important decisions on the enforceability of arbitration clauses. As the economy starts to...more

White & Case LLP

Ahead of the pack: US M&A 2019: Key dealmaking decisions from Delaware and New York

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We focus on two H2 2019 rulings that could affect M&A transactions in the future. Genuine Parts: Acceptance of termination fee does not prevent further remedies - In September 2019, the Delaware Chancery Court refused to...more

Best Best & Krieger LLP

Only A Contracting Party May Sue Under Government Code Section 1092

Calif. Supreme Court: San Diegans for Open Government v. Public Facilities Financing Authority of the City of San Diego - Only a party to a contract may bring a legal action under Government Code section 1092 to invalidate...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

Latham & Watkins LLP

“But what if...?” English Court Identifies Liability Despite Gaps in Contractual Drafting

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The ruling serves as a helpful reminder that parties must enter into well-drafted contracts in proper legal form. In Philip Barton v. Timothy Gwyn-Jones & Others [2019] EWCA Civ 1999, the Court of Appeal recently allowed a...more

Burr & Forman

Design-Build Contractor Held to the Same Standard On Differing Site Conditions Clause

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A court recently held that the type of contract delivery method did not change the applicability of the differing site conditions clause. Appeal of John C. Grimberg Co., Inc., ASBCA No. 58791 (Oct. 25, 2018) involved the...more

Latham & Watkins LLP

English Court of Appeal Confirms Proper Test for Common Mistake Rectification

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Objective test applies if a prior concluded contract exists, but subjective test applies if there is a continuing common intention. In the recent case of FSHC Group Holdings Limited v. GLAS Trust Corporation Ltd [2019]...more

Shutts & Bowen LLP

Landlord Loses Additional Rent Dispute Based on Lease Language

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Another new commercial lease case, another instance of drafting being the deciding factor.  We’ve looked at cases where drafting affected guaranties, exculpatory clauses, remedies, and how to calculate renewal rent.  To be...more

Nutter McClennen & Fish LLP

Licensee Challenges Ruling that a Standard Language Forum Selection Clause Bars PTAB Proceedings 

In a case that could have a significant impact on the interpretation and drafting of patent licensing agreements, a patent licensee filed an appeal for an en banc proceeding at the Federal Circuit to challenge the court’s...more

Gray Reed

Lessor, Should You Cash That Royalty Check?

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Did the lessor’s deposit of royalty checks for production from a pooled unit that she contends was improper ratify the improper pooling? In Strickhausen v. Petrohawk et al, a jury will have to sort out the answer....more

Hudson Cook, LLP

Don't Assume What a Court Will Assume About Your Contract

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It's often difficult to predict how a court will interpret text, whether the text is part of a statute, a regulation, or a contract. Sure, courts have tools to aid their interpretations, but how a court will apply those tools...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Overbroad Geographic Restriction Dooms Covenant Not to Compete

Texas law allows for the enforcement of covenants not to compete that impose reasonable restrictions on competition. Texas courts frequently enforce geographic and other restrictions on a former employee’s ability to compete...more

White & Case LLP

2018 Half-year in review: M&A legal and market developments

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We set out in the attached Newsletter a number of interesting English court decisions and market developments which have taken place in the second half of 2018 and their impact on M&A transactions. This review looks at these...more

Bennett Jones LLP

British Columbia Court of Appeal Reforms Fresh Consideration Principles

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In a recent decision, Rosas v Toca, 2018 BCCA 191 [Rosas], the British Columbia Court of Appeal turned sharply away from traditional contract law principles by holding that parties may modify a contract without providing...more

Butler Snow LLP

Contracts May “Legally” Obligate a Party to Pay, Even Without a Court Judgment

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Time and again, courts have been tasked with construing ambiguous and inconsistent terms in contracts. Recently, the Sixth Circuit revisited the issue of interpreting contractual language in Dark Horse Express, LLC v. Lancer...more

Lowndes

Your Lease Renewal Option May be Ineffective

Lowndes on

In its recent decision in Jahangiri, et al. v. 1830 North Bayshore, LLC, the Third District Court of Appeal asserted that a lease extension option based on “market rate” is insufficient to create a binding and effective...more

Pillsbury Winthrop Shaw Pittman LLP

Dealing on Written Standard Terms of Business—Guidance from the English Court of Appeal

The English Court of Appeal considers whether the use of model form agreements could constitute dealing “on written standard terms of business” The decision will give comfort to lenders who use precedents or model form...more

Dechert LLP

Global Private Equity Newsletter - Fall 2017 Edition: Recent Developments in Acquisition Finance

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A delicate balance has evolved over time in leveraged acquisitions with respect to the nature of the contractual relationship between a target and its owners, on the one hand, and the debt financing sources of the buyer, on...more

Bennett Jones LLP

Whole Agreement Clause Upheld by Court of Appeal

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A properly-worded whole agreement clause is effective to exclude liability for innocent and negligent misrepresentations, the Alberta Court of Appeal recently held in Houle v Knelsen Sand and Gravel Ltd, 2016 ABCA 247...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Does the “No-Rehire” Provision in Your Settlement Agreement Restrain the Lawful Practice of a Profession?

When resolving an employment dispute, employers often wish to include a “no-rehire” provision in the settlement agreement. In a typical no-rehire clause, the parties agree that they wish to resolve their dispute and sever any...more

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