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Illusory Contracts

Troutman Pepper

Arbitration Clause Rendered Illusory and Unenforceable by Unilateral Amendment Clause, Says Virginia Federal District Court

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In a recent decision, the U.S. District Court for the Eastern District of Virginia denied a retailer’s motion to compel individual arbitration of a claim brought in a putative class action lawsuit. The complaint alleges that...more

Troutman Pepper

EDVA Judge Invalidates Arbitration Clause in Online Terms and Conditions

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In a recent decision, EDVA Judge Rossie Alston invalidated the arbitration clause in the terms and conditions for online sales through the Lowe’s Home Centers website on the grounds that the terms and conditions were illusory...more

Fuerst Ittleman David & Joseph

Florida Litigation Update: Third DCA Clarifies When Joint Proposals for Settlement Are Ambiguous and Addresses the Interplay...

Florida litigators are well aware of the power of a properly used proposal for settlement and the potentially devastating consequences of rejecting such a proposal. Such proposals are powerful tools designed to facilitate...more

Pillsbury - Policyholder Pulse blog

Heads I Win, Tails You Lose: Washington Supreme Court Rejects Insurers’ Efforts to Sell Illusory Insurance Coverage

Courts don’t look kindly upon insurance company shell games. In Preferred Contractors Ins. Co. v. Baker & Son Construction, the Washington Supreme Court slapped down an insurer’s attempt to manipulate the type of general...more

FordHarrison

Texas Supreme Court Compels Arbitration after Nine Years: Why Employers Should be Cautious in Placement of Mandatory Arbitration...

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Executive Summary: In a recent case, the Texas Supreme Court upheld the validity of an arbitration clause in a case that had been in litigation for over nine years without the claim ever being heard. See In re Whataburger...more

Snell & Wilmer

Bad Faith Termination for Convenience

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Many construction contracts include a clause that allows an owner to terminate a contractor’s remaining work on a project at the owner’s convenience. And during a global pandemic and these turbulent economic times,...more

Perkins Coie

University Campus Was Not an Illusory Element of Project Under CEQA

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The court of appeal found the EIR for a master planned community sufficient because it adequately described and analyzed impacts of the proposed project, which included a university, and was not required to consider the...more

Butler Weihmuller Katz Craig LLP

Members Only: The Eleventh Circuit Restricts Membership to the "Illusory Coverage" Club to Narrow Set of Circumstances

The Doctrine of Illusory Coverage is a common law doctrine that Florida courts have confirmed is a part of Florida’s insurance law. See e.g., Zucker for BankUnited Financial Corp. v. U.S. Specialty Insurance Co., 856 F.3d...more

Burns & Levinson LLP

How to Have an Enforceable Arbitration Clause and Retain the Right to Modify Your Agreement

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While being a defendant in a lawsuit is no fun, being a defendant in a class action lawsuit is especially painful. If you are in-house counsel in a service business, you may be particularly vulnerable to such actions and, no...more

Carlton Fields

Court Enforces Arbitration Agreement Incorporated Into “Notice to Employees”

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The U.S. District Court for the Northern District of Texas compelled arbitration in a putative Fair Labor Standards Act class action based on language in a “notice to employees” that put the plaintiffs on notice that they...more

Carlton Fields

Seventh Circuit Finds “Based Upon or Arising Out of” Language in Contract Exclusion Renders Coverage “Illusory”

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In Crum & Forster Specialty Insurance Co. v. DVO, Inc., No. 18-2571 (7th Cir. Sept. 23, 2019), the Seventh Circuit reversed a decision of the U.S. District Court for the Eastern District of Wisconsin, finding that the...more

Neal, Gerber & Eisenberg LLP

Seventh Circuit Holds Overbroad Breach of Contract Exclusion Renders E&O Coverage Illusory

On September 23, 2019, the Seventh Circuit acknowledged a common problem with Errors & Omissions (“E&O”) insurance for professional services by finding that an overbroad breach of contract exclusion rendered coverage...more

Ballard Spahr LLP

Credit repair companies file motion to dismiss CFPB lawsuit for alleged deceptive marketing

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A motion to dismiss has been filed by the group of credit repair companies sued by the CFPB in Utah federal district court for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act...more

Seyfarth Shaw LLP

Court Of Appeals Says Blind Plaintiff is Not Bound By a Written Agreement to Arbitrate That He Could Not Read

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Seyfarth Synopsis: The Court of Appeals for the First Circuit says that an agreement to arbitrate presented visually to blind plaintiffs on a POS device and never read to thempo is not binding....more

Seyfarth Shaw LLP

Uber Epic: Arbitration Agreement Topples Class Claims

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Seyfarth Synopsis: The Ninth Circuit, following the Supreme Court’s 2018 decision in Epic Systems Corp. v. Lewis, has upheld the validity of class-action waivers in Uber’s arbitration agreement, and has held that a named...more

Carlton Fields

Third Circuit Finds Agreement To Arbitrate Unenforceable Because Arbitration Was Directed To An Illusory Forum

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Where a Loan Agreement’s arbitration provision stated disputes “will be resolved by Arbitration, which shall be conducted by the Cheyenne River Sioux Tribal Nation by an authorized representative in accordance with its...more

Clark Hill PLC

In 2016 the Texas Supreme Court Continues to Favor Arbitration

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In 2016, the Texas Supreme Court issued three important opinions affecting arbitration agreements. The most significant was Hoskins v. Hoskins, 497 S.W.3d 490 (Tex. 2016). The issue in that case was whether a party seeking to...more

Bass, Berry & Sims PLC

Chris Lazarini Comments on Ambiguity in Insurance Policy - Thought Leadership - Bass Berry

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Bass, Berry & Sims attorney Chris Lazarini commented a case in which a broker-dealer claimed the term "final judgment" in its insurance policy was ambiguous and should be construed against its insurance carrier, as is typical...more

Proskauer - Minding Your Business

It’s Not an Illusion! DISH Not Required to Give Credit When Channels Go Dark

Expanded Basic. Choice. Choice Plus. Cable and satellite TV customers pay monthly fees for bundled channel packages of different sizes. The packages are becoming “skinnier,” allowing you to customize your service from a set...more

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