The Second Circuit today dismissed a complaint against accounting firm KPMG to recover fees and expenses arising from criminal tax fraud charges involving former KPMG partners and employees. The court held that the district court, which presides over the criminal case, erred in extending "ancillary" jurisdiction to the civil dispute between the defendants and non-party
Creditors Lack Standing to Claim Fiduciary Breach, Delaware Supreme Court Holds
The Supreme Court of Delaware concluded last week that a creditor lacks standing to sue corporate officers and directors for breach of fiduciary duties:
[W]e hold that the creditors of a Delaware corporation that is either insolvent or in the zone of insolvency have no right, as a matter of law, to assert direct claims
Abercrombie Moose Logo Dodges Judicial Estoppel Bullet
Abercrombie’s logo looks nothing like this.
People sometimes ask Blawgletter how Blawgletter can blawg and keep a powerhouse law practice humming at top speed at the same time. Our usual answer? "We are proud of our efforts to secure the Nation and are reaping the benefits of the momentous changes to the counterterrorism and
Federal Circuit Judges Tussle, Post-KSR, Over Patent “Obviousness” Doctrine
Talk about irony. Three of the 12 judges on the Federal Circuit today opined that three of their brethren obviously erred by holding that "obviousness" of an invention rendered a patent claiming it invalid as a matter of law in Pfizer, Inc. v. Apotex, Inc., 480 F.3d 1348 (Fed. Cir. 2007) (see post).
Loss of Profits Recoverable as “General” Contract Damages, Second Circuit Holds
The Second Circuit today vacated a district court ruling that barred the victim of a contract breach from recovering profits it lost as as result of the other party’s violation of a long-term energy supply contract. The court distinguished profit losses that count as "consequential" damages from those arising from the breaching party’s failure to
Sixth Circuit Bars Punitive Damages for Malice
The Sixth Circuit yesterday reversed an award of punitive damages despite a finding that a corporate defendant committed a tort maliciously. The case involved violations of a non-compete agreement between Chicago Title and ex-employee James Magnuson. After Magnuson moved to First American Title, 30 other Chicago Title employees and several customers switched to First American.
Public Ownership of Private Equity?
Imagine that the U.S. government decides to invest $3 billion of taxpayer money in a Chinese private equity firm.
Now substitute "Chinese" for "U.S." (and vice versa), and you have today’s news story about the Republic of China’s purchase of a stake in private equity outfit Blackstone.
China of course remains Communist, and the U.S.
So Long, Farewell, Auf Wiedersehen, Goodbye to Conley v. Gibson Pleading Standard (Update)
In the course of rejecting an antitrust complaint in Bell Atlantic Corp. v. Twombly, No. 05-1126 (U.S. May 21, 2007), the Supreme Court today repudiated the "no set of facts" formula of Conley v. Gibson, 355 U.S. 41, 47 (1957), for judging motions to dismiss for failure to state a claim under Rule
U.S. Supreme Court Reverses in Bell Atlantic v. Twombly
The U.S. Supreme Court today upheld the district court’s dismissal of a complaint that alleged, under section 1 of the Sherman Act, "parallel conduct unfavorable to competition" but failed to provide "some factual context suggesting agreement, as distinct from identical, independent action." Bell Atlantic Corp. v. Twombly, No. 05-1126 (U.S. May 21, 2007).
Barry
Zombie Fredo May Concede Death
Senator Arlen Spector (R-Pa.) guessed out loud today that U.S. Attorney General Alberto Gonzalez may resign his office before the Senate acts on a no-confidence resolution. “I have a sense that before the vote is taken, that Attorney General Gonzales may step down.”
Blawgletter notes that no-confidence votes abound in parliamentary systems, such as the