Blawgletter likes choice of forum clauses in contracts. We think parties to pacts will do themselves a favor if they provide in advance for where they'll sort out any fights over what they agreed to. And, while we admire those who make the effort, we wonder why they so often do a poor better job
Second Circuit
Law Firm Can’t Accept $7.5MM to Screw Clients, Second Circuit Rules
Did you really not know that selling out your clients could get you in trouble?
A law firm that agreed to take many millions — up to $7.5 millions — from a defendant in return for getting plaintiff-clients to settle cheap seems not to have thought that far ahead.
The firm hired on to represent…
9/11 and the Law, Ten Years After
Four years ago, Blawgletter wrote about a Second Circuit ruling that rejected claims by workers at Ground Zero for the harm that resulted from breathing toxic air in the aftermath of the 9/11 attacks. We said:
The Second Circuit yesterday affirmed dismissal of claims that the federal government deliberately misrepresented the safety of working at Ground Zero…
Quote of the Day: Dennis Jacobs
The whole purpose of fee-shifting statutes is to generate attorneys' fees that are disproportionate to the plaintiff's recovery.
Millea v. Metro-North Railroad Co., No. 10-409-cv (2d Cir. Aug. 8, 2011) (Jacobs, C.J.) (reversing award of $204 in fees on $612.50 in damages under Family Medical Leave Act).
Extinct Class Action May Toll Time to Sue Under Virginia Law
With the U.S. Supreme Court making the test for class actions tougher, you may see a short-term increase in denials of class treatment. You may as a result also witness a surge in class members' filing cases where they assert the now-dead class claims on an individual basis.
But what if — as often happens…
Auction Rate Securities Case Founders on Chump Defense in Second Circuit
You may recall that, back in the go-go days, brokers sold a lot of auction rate securities to people who wanted a bit more interest than money market funds and bank accounts yielded but desired about the same degree of safety and liquidity.
When the auctions froze up in early 2008, the chumps who bought ARS couldn't get their…
RICO Can’t Reach Aiding and Abetting Securities Fraud, Second Circuit Rules
Way back in January 2009, Blawgletter wrote that we doubted a 1995 federal law – a sub-section of which the Second Circuit called "the RICO Amendment" — bars claims, under the Racketeer-Influenced and Corrupt Organizations Act, that allege fraud involving credit default swaps and other swap contracts. MLSMK Inv. Co. v. JP Morgan Chase & Co., No.
Bad Bar Order Forfeits Bond (Usually), Second Circuit Rules; Seventh Circuit Explains Bond’s Goal
You convince the trial judge that your side will likely win on the merits and that in the time between now and trial your client will suffer harm that money can't fix. The judge enjoins the other side — under Rule 65 — from doing the hurtful stuff pending trial. But the court of appeals vacates…
Google Loses Cover of Books Class
Awhile back, Blawgletter inquired if Google would, in asking for a federal court okay to a copyright pact in a massive class action, reveal itself at long last as not the Don't Be Evil people but instead as the Big Bad Wolf. See "Who's Afraid of Google Books? Tra La La La La".…
The Relevance of Scienter to Securities Fraud Limitations Analysis — Redux
Blawgletter wrote a couple of years ago that the tougher test for pleading securities fraud under the Private Securities Litigation Reform Act and Tellabs, Inc. v. Makor & Rights, Ltd., 551 U.S. 308 (2007), "would logically mean that the reasonable person wouldn't conclude he, she, or it had a claim until he-she-it learned facts suggesting…