News & Analysis as of

Motion to Dismiss Contract Disputes

Farrell Fritz, P.C.

Out-of-State, Out of Luck: Commercial Division Justice Dismisses PPE Suit for Lack of Jurisdiction

Farrell Fritz, P.C. on

A recent decision from the Manhattan Commercial Division reminds us that even substantial and high-profile transactions tied to the state may not be enough to establish personal jurisdiction over an out-of-state defendant. In...more

ArentFox Schiff

Don’t Take Your Forum Selection Clause for Granted

ArentFox Schiff on

It seems like every few months I hear about a situation where a company can’t enforce a forum selection clause as anticipated because of how it was drafted. Recently, an individual named Sidharth Lakhani fell victim to this...more

Lathrop GPM

Arizona Federal Court Dismisses Franchisee’s Defamation Counterclaims Against Franchisor

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A federal court in Arizona recently dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against its former franchisor. LeTip World Franchise LLC v. Long Island Soc. Media Grp. LLC,...more

Holland & Knight LLP

Sixth Circuit Reverses Dismissal of ERISA Healthcare Fee Suit Against Third-Party Administrator

Holland & Knight LLP on

There has been a recent rise in Employee Retirement Income Security Act of 1974 (ERISA) litigation against third-party administrators (TPAs) and other service providers challenging their management of self-funded health...more

Morris James LLP

Chancery Rejects Attempt to Disguise Breach of Fiduciary Duty Claim Where LLC Agreement Waived All Traditional Fiduciary Duties

Morris James LLP on

Delaware permits the elimination of fiduciary duties in limited liability company agreements. Notwithstanding, and just like in any other contract, parties to a limited liability company agreement are still subject to the...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

Troutman Pepper Locke on

In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Bradley Arant Boult Cummings LLP

Maintenance Obligations on a 30-Year-Old Project Let an Owner Sidestep Tennessee’s Statute of Repose

In Tri-State Insur. Co. of Minn. a/s/o Campus Chalet, Inc. v. East Tennessee Sprinkler Company, Inc., the Court of Appeals of Tennessee recently addressed whether the state’s four-year statute of repose could shield a...more

A&O Shearman

Northern District Of California Dismisses Putative Class Action Against Solar Panel Manufacturer For Failure To Allege Falsity

A&O Shearman on

On April 28, 2025, Judge Edward M. Chen of the United States District Court for the Northern District of California dismissed a putative securities fraud class action asserting claims against a solar panel manufacturer (the...more

Foley & Lardner LLP

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

Foley & Lardner LLP on

In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more

Lathrop GPM

Citing California Franchise Relations Act, California Federal Court Rejects Franchisor’s Attempt to Dismiss Case

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A federal court in California recently denied a franchisor’s motion to dismiss litigation, holding that a franchise agreement provision requiring the parties to mediate in Texas prior to instituting litigation or arbitration...more

Morris James LLP

Chancery Allows a Claim for Contract Reformation to Proceed Based on Alleged Mutual Mistake

Morris James LLP on

Kingfishers L.P. v. Finesse US, Inc., C.A. No. 2024-0344-SG (Del. Ch. Oct. 30, 2024) - In this decision, the Court of Chancery held that the plaintiffs failed to state claims for fraud and equitable fraud, but pled...more

Kilpatrick

Sixth Circuit affirms dismissal of unjust enrichment class action, ruling that airline customer’s purchase of travel assistance...

Kilpatrick on

Takeaway: Unjust enrichment is one of the most commonly asserted causes of action in class actions seeking compensatory damages. Equitable considerations form the foundation of unjust enrichment claims under the laws of...more

Foley & Lardner LLP

Court Relies on Contractual Terms to Dismiss Dealership Suit Against Auto Manufacturer

Foley & Lardner LLP on

Decozen Chrysler Jeep Corp. (“Decozen”), a New Jersey-based automobile dealership, filed a lawsuit against Fiat Chrysler Automobiles, LLC (“FCA”), in U.S. District Court for the District of New Jersey alleging that FCA...more

Lathrop GPM

California Federal District Court Dismisses Distributor’s Oral Contract Claims Under Statute of Frauds

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A federal court in California recently granted a manufacturer’s motion to dismiss a distributor’s oral contract claims, but declined to dismiss claims for promissory estoppel and unjust enrichment. Cosmonova, LLC v. BioFilm,...more

Freiberger Haber LLP

Fraud Claims Found to Be Duplicative of Contract Claim Because of An Overlap in Facts and Circumstances and Damages

Freiberger Haber LLP on

In Crawford v. Integrated Asset Mgt. Servs., LLC, 2025 N.Y. Slip Op. 01352 (2d Dept. Mar. 12, 2025) (here), the Appellate Division, Second Department reversed the denial of the defendants’ motion to dismiss the plaintiffs’...more

Zelle  LLP

Court Enforces Pleading Standards and Dismisses Bad Faith Allegations

Zelle LLP on

In Fif Engineering, LLC v. Pacific Employers Ins. Co., No. 24-665, 2025 WL 593384 (S.D. Tex. Feb. 24, 2025), a United States District Court for the Southern District of Texas, Houston Division, granted an insurer’s motion to...more

Carlton Fields

Illinois Federal Court Denies Motion to Dismiss Complaint Alleging Breach of Reinsurance Agreement Between Parties

Carlton Fields on

In PMC Casualty Corp. v. Virginia Surety Co., the U.S. District Court for the Northern District of Illinois, Eastern Division, addressed a motion to dismiss a complaint filed by a party to a reinsurance agreement alleging...more

Troutman Pepper Locke

EDVA Judge Dismisses Negligence and Bailment Claims for Damage to Property Stored in Warehouse

Troutman Pepper Locke on

Parties involved in contract disputes often desire to avoid contractual limitations on recovery, fostering creative attempts to transform breach of contract claims into tort or other noncontractual causes of action. Such...more

Lathrop GPM

Washington Federal Court Grants, In Part, Distributor’s Motion to Dismiss Claim for Breach of a Noncompete Provision and Related...

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A federal court in Washington recently granted in part and denied in part a former distributor’s partial motion to dismiss claims for breach of a post-termination noncompete agreement, breach of the implied duty of good faith...more

Davis Wright Tremaine LLP

No Double-Dipping Allowed: A Takeaway from the CBCA's Decision in BES Design/Build, LLC

A decision by the U.S. Civilian Board of Contract Appeals (the "Board" or "CBCA") in BES Design/Build, LLC v. General Services Administration, CBCA 7587 (April 6, 2023), further defines what it means to submit a "timely"...more

Farrell Fritz, P.C.

A Lesson In Drafting Capital Call Provisions

Farrell Fritz, P.C. on

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

Lewitt Hackman

Franchisor 101: No Tax on Renewals

Lewitt Hackman on

A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

Davis Wright Tremaine LLP

Armed Services Board of Contract Appeals Addresses Sum Certain Requirement for Claims Submission

The Armed Services Board of Contract Appeals in ECC International Constructors, LLC (ASBCA No. 59643 November 9, 2021) issued a partial summary judgment order dismissing several of the contractor's claims for lack of a sum...more

Farrell Fritz, P.C.

Bob Dylan Takes Breach of Contract Action Out with Just One Punch

Farrell Fritz, P.C. on

A reminder to practitioners: when a contract is unambiguous, the submission of a hurricane of extrinsic evidence to “interpret” it on a pre-answer motion to dismiss won’t fly....more

Farrell Fritz, P.C.

Commercial Division Denies Pfizer’s Motion To Dismiss, Holds Allergan’s Claims for Defense Costs Are Ripe

Farrell Fritz, P.C. on

It’s back to business as usual for Commercial Division Justice Andrew Borrok, who recently issued a slew of decisions contributing to New York’s robust Commercial Division jurisprudence....more

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