News & Analysis as of

Negligent Misrepresentation

ArentFox Schiff

The Proposed Costco Class Action Makes Clear That No Product Is Exempt From PFAS Litigation

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On June 20, Costco and Nice-Pak Products, Inc. were hit with a proposed class action in California federal court regarding Costco’s fragrance-free Kirkland Signature Baby Wipes. The plaintiffs allege that although the baby...more

Goldberg Segalla

Chemical Company’s Renewed Motion to Dismiss Amended Complaint Granted

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Jurisdiction: United States District Court for the Southern District of Florida Plaintiff Douglas S. Johnson, one of the surviving children and personal representative of the estate of decedent French E. Johnson, filed an...more

McDermott Will & Emery

Unfair Play: Unjust Enrichment for Copying and Using Non-Trade-Secret Spreadsheet

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The US Court of Appeals for the Second Circuit reversed a district court’s dismissal of an unjust enrichment claim, finding that unjust enrichment claims do not necessarily rise or fall with trade secret misappropriation...more

Fox Rothschild LLP

North Carolina Supreme Court Unpacks a Service Contract and Finds a Potential Software Sale Lurking Within

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If a company contracts to acquire software which it then licenses to a third party as a component of a lucrative service package, did it “sell” the software? In Value Health Solutions, Inc. v. Pharmaceutical Research...more

Foley & Lardner LLP

Federal District Court Offers Broad Ruling on a Franchisor and Individual Officer’s Motion to Dismiss

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A franchisee, Functional HIIT Fitness, has filed suit in U.S. District Court in the Eastern District of Michigan against a franchisor, F45 Training Incorporated, and five of its officers: Adam Gilchrist, Robert Deutsch, Marc...more

Smith Anderson

In a Win for Business, North Carolina Supreme Court Raises the Bar for Negligent Misrepresentation Claims

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Plaintiffs frequently tack on negligent misrepresentation claims to ordinary business disputes. A negligent misrepresentation claim alleges that one party carelessly supplied incorrect or incomplete information on which the...more

Kilpatrick

Ninth Circuit: conjoint analysis fails to show class-wide damages for fraud and negligent misrepresentation claims

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Takeaway:  We have written about the use of survey-based conjoint analyses to prove class-wide damages.  See Ninth Circuit summarily reverses exclusion of conjoint survey with “major flaws” (January 18, 2022).  Recently,...more

Foley & Lardner LLP

Product Liability Trends in the Automotive Industry

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Automobiles may be the most complex, essential and widely used consumer products in the world and every year they incorporate increasingly advanced technology into nearly every component and function. The advancing...more

Shook, Hardy & Bacon L.L.P.

Class Action Decisions Published March 2023

Immigration - Judge Wright of the Central District of California certified a class alleging that U.S. Immigration and Customs Enforcement officers violated the Fourth Amendment’s prohibition on unreasonable searches and...more

Orrick, Herrington & Sutcliffe LLP

District Court says EFTA applies to cryptocurrency

On February 22, the U.S. District Court for the Southern District of New York partially granted a cryptocurrency exchange’s motion to dismiss allegations that its inadequate security practices allowed unauthorized users to...more

Miller Canfield

Innocence Is No Defense: Debt Obtained by Fraud Is Nondischargable

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A debt “for money, property, services, or an extension [. . .] of credit, to the extent obtained by [. . .] actual fraud,” is not dischargeable in a chapter 7 bankruptcy case. Courts have questioned whether this applied if...more

Adams and Reese LLP

Sazerac Fireball Cinnamon – Clever Marketing or Deceptive Labeling?

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The industry is all abuzz about Sazerac’s flavored malt beverage “brand-extension” of its popular Fireball Cinnamon Whisky. Here is a single serving – aka shot – of the original 66 proof distilled spirit:...more

Dickinson Wright

Entire Agreement Clauses Do Not Preclude Claims for Pre-Contractual Negligent Misrepresentations

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In a recent decision, the Ontario Court of Appeal again held that an entire agreement clause in a contract is not a complete defence to claims involving pre-contractual misrepresentation claims. This decision comes on the...more

Proskauer Rose LLP

Three Point Shot - July 2022

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Welcome to Three Point Shot, a newsletter brought to you by the Sports Law Group at Proskauer. Three Point Shot brings you the latest in sports law-related news and provides you with links to related materials. In this double...more

Farrell Fritz, P.C.

A Loan Is a Loan Is a Loan, Except When It’s Equity

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Disputes over capital accounts and equity percentages are frequent fodder for business divorce litigation — especially in LLCs without operating agreements. Exemplars previously treated on this blog include Chiu v Chiu, an...more

Eversheds Sutherland (US) LLP

Online marketplace challenged for alleged misstatements about NFTs

On May 13, 2022, a putative class action was filed in federal court against an online secondary marketplace that sells luxury goods (e.g., sneakers, handbags, and electronics) and, recently, non-fungible tokens (NFTs) that...more

A&O Shearman

To err is human: no misrepresentation found for false information on performance

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In SK Shipping v Capital VLCC, the Court of Appeal found that false information on vessel performance did not give rise to an actionable misrepresentation, since it was not in fact relied upon. The court also made interesting...more

Blank Rome LLP

California’s Highest Court Confirms Lenders Owe No Duty to Borrowers to Process, Review, and Respond to Loan Modification...

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Financial institutions, lenders, and servicers should take note that the California Supreme Court affirmed a Court of Appeal decision confirming there is no duty for a lender to “process, review and respond carefully and...more

McGuireWoods LLP

New Complaint – yLoft LLC v. Bechtler, Parker, Watts, P.S.C.

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yLoft, LLC v. Bechtler, Parker & Watts, P.S.C. was filed in the Circuit Court for Jefferson County, Kentucky on January 18, 2022, asserting claims for negligent misrepresentation, fraudulent misrepresentation, violation of...more

Smart & Biggar

B.C. Supreme Court declines to strike Province’s class action claims to recover healthcare costs and damages related to opioid...

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In August 2018, the Province of British Columbia (Province) commenced a class action on behalf of itself and other provincial and federal governments against approximately 50 pharmaceutical manufacturers, wholesalers, and...more

Freeman Law

Negligent misrepresentation in Texas

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When parties negotiate a contract, they make representations to each other like, “this product is like new” or “this is the best product on the market.” If those representations are false and made recklessly, the person...more

Fox Rothschild LLP

Judge Burke Recommends Grant of Defendants’ Motion for Judgment on the Pleadings in Inventorship Dispute Action

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In his Report and Recommendation entered in Bear Box LLC et al. v. Lancium LLC et al., Civil Action No. 21-534-MN-CJB (D.Del. January 18, 2022), the Honorable Christopher J. Burke recommends that the Court grant Defendants’...more

Lewitt Hackman

Franchisee 101: Strong Releases Protect Fitness Franchisor

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A franchisee sued its franchisor, OsteoStrong Franchising, LLC, in Texas federal court after OsteoStrong terminated the franchise and development agreements. Termination occurred after the franchisee failed to timely develop...more

White and Williams LLP

Utah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical Reports

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The Supreme Court of Utah recently found that an incorrect pre-construction geotechnical engineering report is a “defective design.” Thus, actions arising from an incorrect geotechnical report are appropriately governed by...more

BCLP

What’s behind the rise in UK M&A litigation?

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Litigation following mergers and acquisitions has always been a source of important judicial decisions on critical legal issues. However, can it tell us more about the state of the deal market and where future disputes may be...more

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