News & Analysis as of

Fraudulent Inducement

Farrell Fritz, P.C.

Freedom (But with Consequences): In Delaware, Absolute Litigation Privilege Inapplicable to Nullify Contractual Non-Disparagement...

Farrell Fritz, P.C. on

The absolute litigation privilege is a long-standing legal principle that statements made during the course of a judicial proceeding by participants in the proceeding (whether parties, attorneys, witnesses, or judges) are...more

Womble Bond Dickinson

The Company You Keep: FCA Investigations of 8(a) Program Contractors

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Federal government contracts are routinely awarded to companies supplying goods and services to U.S. government agencies. According to the Government Accountability Office, in 2023, the federal government committed about $759...more

Kohrman Jackson & Krantz LLP

A $13.85 Million NIL Deal Gone Wrong: Jaden Rashada Sues University of Florida

On May 21st, Jaden Rashada, a former top college football prospect, filed a lawsuit against prominent figures associated with the University of Florida (UF) football program, including UF coach Billy Napier, because of a...more

Dorsey & Whitney LLP

Some Serious Strings Attached: Sponsored Research Funding, Adequate Accounting Systems, and False Claims Act Exposure

Dorsey & Whitney LLP on

The federal government awards billions of dollars each year in sponsored research funding to institutions of higher education, academic research institutions, non-profit organizations, and companies—making federal grants an...more

King & Spalding

New York Appellate Division Dismisses Junior Mezz Lender’s Claims for Fraudulent Inducement and Fraudulent Concealment, Allows...

King & Spalding on

On January 18, 2024, New York’s Appellate Division rejected a junior mezzanine lender’s contention that it was fraudulently induced to amend the parties’ intercreditor agreement, because it failed to identify specific...more

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

What do you have to Show to Prove that Someone Misappropriated Trade Secrets?

What must you show to prove that someone misappropriated trade secrets? The Arkansas Uniform Trade Secrets Act provides that misappropriation of trade secrets can be shown in one or more of three ways: acquisition or physical...more

Lewitt Hackman

Franchisee 101: Fraud Claim Muzzled by Contractual Limitations Period

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A North Carolina federal court dismissed a complaint brought by a franchisee against its franchisor. The franchisee alleged the franchisor fraudulently induced the franchisee to enter into a franchise agreement, but the court...more

Saul Ewing LLP

The Friday Five: Five ERISA Litigation Highlights - March 2024

Saul Ewing LLP on

This month’s Friday Five covers cases relating to an alleged conflict of interest leading to discovery, two courts’ opposite treatments of subjective pain complaints, a decision that claims of fraud and misrepresentation were...more

Freiberger Haber LLP

Fraud Claim Held Not Duplicative of a Single Page Contract

Freiberger Haber LLP on

A common theme in commercial litigation is the assertion of a breach of contract claim and a fraudulent inducement claim. A plaintiff claiming a breach of contract must show (1) the existence of a contract; (2) the...more

Holland & Knight LLP

Religious Institutions Update: January 2024

Holland & Knight LLP on

Failure to Extend Extracurricular Opportunities to Parochial School Students Violates Free Exercise In Religious Rights Foundation of Pa. v. State College Area Sch. Dist., No. 23-CV-01144, 2023 WL 8359957 (M.D. Pa. Dec. 1,...more

Lewitt Hackman

Franchisee 101: Lack of Personal Training and Personal Jurisdiction

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A Michigan federal district court dismissed a franchisee’s claims against its franchisor's CEO and several individuals responsible for negotiating its franchise agreements, for lack of personal jurisdiction....more

Farrell Fritz, P.C.

Where’s the Beef? Causation and Culpability Are Fatal Pitfalls in Zaycon Foods Lawsuit

Farrell Fritz, P.C. on

When representing an aggrieved plaintiff in a commercial matter, there are certain business torts that I tend to rely on more heavily than others.  If business torts were foods, for example, a claim like breach of contract...more

Freiberger Haber LLP

Fraudulent Inducement, Merger Clauses and Duplication

Freiberger Haber LLP on

A couple of months ago, we examined NW Media Holdings Corp. v. IBT Media Inc., 2023 N.Y. Slip Op. 30875(U) (Sup. Ct., N.Y. County Mar. 22, 2023) (here), a case in which a lower court addressed the question whether the...more

Farrell Fritz, P.C.

Damages or Rescission? When Electing Fraud Remedies Choose Wisely

Farrell Fritz, P.C. on

Imagine devoting years of costly litigation to rescinding a $1 million equity investment in an LLC for fraudulent inducement, prevailing on the merits by clear and convincing evidence after a full trial, but losing anyway...more

Adams and Reese LLP

Tennessee Supreme Court Rules Economic Loss Doctrine Only Applies to Products Liability Cases; Reverses Appeals Court’s Expansion

Adams and Reese LLP on

The Tennessee Supreme Court recently issued an important decision making clear that in a breach of contract dispute, the aggrieved party may recover more in damages than the parties’ contract permits, such as punitive,...more

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Dispute

Lathrop GPM on

A federal court in Tennessee recently compelled arbitration for parties in a franchise disclosure dispute. B&P Glass Mirror, LLC v. Clozetivity Franchising, LLC, 2023 WL 3484205 (M.D. Tenn. May 16, 2023). Plaintiff B&P...more

Vondran Legal

Arizona trade secret law

Vondran Legal on

Most states have a law that protects trade secrets. California, for example, has CUTSA (California Uniform Trade Secret Act). Arizona has the Arizona Uniform Trade Secrets Act ("AUTSA") found in chapter 4 of title 44 of the...more

Holland & Knight LLP

Religious Institutions: Update June 2023

Holland & Knight LLP on

In Ratliff v. Wycliffe Assoc., Inc., No. 6:22-cv-1185-PGB-RMN, 2023 WL 3688082 (M.D. Fla. May 26, 2023), the plaintiff, a software developer, sued the defendant, a Bible translation ministry, for sex discrimination under...more

Freiberger Haber LLP

Fraud Claims That Are Duplicative of Contract Claims, Until They Are Not

Freiberger Haber LLP on

A common theme in commercial litigation is the assertion of a breach of contract claim and a fraudulent inducement claim. Where both claims are asserted, more times than not, the fraud claim is dismissed under the duplication...more

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Case and Grants Preliminary Injunction Enjoining Enforcement...

Lathrop GPM on

A federal court in Tennessee granted franchisor Frost Shades’ motion to compel arbitration of franchisee Lunt’s fraudulent inducement of contract claims, but the court also granted in part franchisee Lunt’s request for a...more

Akin Gump Strauss Hauer & Feld LLP

Supreme Court and 1st Circuit Significantly Curtail Scope of Federal Property Fraud Statutes

Key Points- In two landmark decisions, the Supreme Court and the 1st Circuit significantly pared back the scope of the federal mail and wire fraud statutes. In Ciminelli v. United States, a political corruption case, the...more

Goodwin

McDonald’s Part Two: Delaware Court of Chancery Dismisses Caremark Claims Against Directors Arising From Sexual Harassment Issues

Goodwin on

On March 1, 2023, in In re McDonald’s Corporation Stockholder Derivative Litigation, Vice Chancellor Travis Laster of Delaware’s Court of Chancery granted a motion to dismiss derivative claims against McDonald’s directors...more

Lathrop GPM

New Jersey Federal Court Finds Franchisee’s Defense of Fraudulent Inducement Sufficient to Block Franchisor’s Motion for Summary...

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A federal court in New Jersey has denied a franchisor’s motion for summary judgment on its claim for breach of contract by its franchisee, finding that the franchisee raised issues of material fact regarding whether it had...more

Morgan Lewis - Power & Pipes

Real-World Litigation Impacts of Contract Clauses in Energy Contracts Key No-Reliance Language Under Texas Law

Contracting parties sometimes attempt to rely on merger clauses to avoid future claims arising from reliance on extra-contractual representations such as fraudulent inducement. But in Texas, the inclusion of a standard merger...more

Lewitt Hackman

Franchisee 101: Transaction Totaled

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Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more

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