News & Analysis as of

Contract Terms Motion to Dismiss

Seyfarth Shaw LLP

End of an Era: FTC Backs Away from Nationwide Noncompete Ban

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On September 5, 2025, the Federal Trade Commission (FTC) moved to dismiss its appeals in two pivotal cases— Ryan, LLC v. FTC, No. 24-10951 (5th Cir.) and Properties of the Villages v. FTC, No. 24-13102 (11th Cir.)—effectively...more

Freiberger Haber LLP

Conflicts of Interest and No-Action Clauses

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In Finkelstein v. U.S. Bank, N.A., 2025 N.Y. Slip Op 32882(U) (Sup. Ct., July 30, 2025) (here), plaintiff alleged that he was underpaid on his investment in a residential mortgage-backed securities (“RMBS”) trust due to the...more

Freiberger Haber LLP

Plaintiff’s Allegations and Records Show Its Claim Was Time Barred

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In Southgate Owners Corp. v. Esposito, 2025 N.Y. Slip Op. 32750(U) (Sup. Ct., N.Y. County July 24, 2025) (here), plaintiff sued defendant, a shareholder in its cooperative building, seeking a declaratory judgment that 80...more

Jackson Lewis P.C.

Massachusetts Makarevich: ‘Understandable’ Separation Agreement Language Aids Employer in Unpaid Wages Case

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In Makarevich v. USI Ins. Services, LLC, a Massachusetts federal district court judge dismissed a former employee’s claims of discrimination and unpaid wages under the Massachusetts Wage Act, concluding that she had knowingly...more

Wilson Sonsini Goodrich & Rosati

Bexson Biomedical Earns Early-Stage Win in CyDex Dispute in Italy’s Court of Rome

In a major early-stage win for firm client Bexson Biomedical, Inc., Italy’s Court of Rome recently dismissed the second of two related legal proceedings brought by CyDex Pharmaceuticals, Inc. arising from a 2019 supply...more

Morris James LLP

Chancery Enforces Liability Waiver Provision in Limited Partnership Agreement, Dismisses Claims Against Limited Partners

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AG Mobile Holdings, L.P. v. H.I.G. Mobile, L.P., C.A. No. 2023-1103-MAA (Del. Ch. Feb. 13, 2025) - In this recent decision, the Court of Chancery reaffirmed that parties to alternative entity agreements are free to order...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

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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

Jackson Walker

Business Court of Texas Rebuffs Member’s Duty Claim, Reaffirms Freedom of Contract in LLC Agreement

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A recent opinion from the Business Court of Texas, Eighth Division (Fort Worth), provides a crisp reminder that an LLC’s company agreement can all but eliminate fiduciary duties among its members and managers. In Tall v....more

Vinson & Elkins LLP

Delaware Court of Chancery Dismisses Claims Relating to Sale of Company Against Private Equity Majority Owner

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In the latest instance of a private equity seller vindicating contractual rights in the Delaware Court of Chancery, on April 30, Vice Chancellor Lori W. Will rejected attempts by minority LLC members in urgent care provider...more

Mayer Brown

Delaware Law Alert: Chancery Court Dismisses Challenge to Elimination of Tag-Along Rights in Private Equity-Backed Healthcare...

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A recent Delaware Chancery Court decision provides important guidance for private equity sponsors, minority investors, and deal professionals regarding the enforceability of contractual waivers and the limits of the implied...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

Dickinson Wright

Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements

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Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in...more

Segal McCambridge

The Key Role of Certificates of Merit in Defending Professional Liability Claims against Architects and Engineers

Segal McCambridge on

Currently, the following 12 states require a Plaintiff to file a Certificate of Merit prior to or with a lawsuit alleging professional negligence against architects, engineers, and other licensed professionals. Certificates...more

Foley & Lardner LLP

Clear Terms of Franchise Agreement Are Enforced Against Franchisee

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A recent federal court decision in T&T Management, Inc. v. Choice Hotels, Inc. underscores key contractual and operational considerations for franchisors. T&T filed suit in U.S. District Court for the District of Minnesota...more

ArentFox Schiff

Design Disputes: Unraveling the Tapestry of Legal Trends for Litigation in the Furniture and Design Worlds

ArentFox Schiff on

In the fast-paced and competitive world of furniture and design, where partnerships and innovations flourish, but consumers’ attention is increasingly divided, legal disputes are increasingly common....more

Morris James LLP

Chancery Finds that the Plaintiff Successfully Pled Breach of Contract for Milestone Payments

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Medal v. Beckett Collectibles, LLC, C.A. No. 2023-0984-VLM (Del. Ch. Aug. 22, 2024). In denying a motion to dismiss, the Court of Chancery held that the plaintiff pled reasonably conceivable claims for breach of...more

Gray Reed

How to Work for Free Under a Master Service Agreement

Gray Reed on

Kouatli v. Endeavor Energy Resources L.P. offers valuable (and obvious) lessons on how NOT to perform a Master Service Agreement in the oil patch (or, per Billly Bob and friends, “The Patch”), to wit...more

Freiberger Haber LLP

General Release That Was Entered Because of Defendant’s Fraudulent Misrepresentations Held Not To Be Enforceable

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We have written frequently about the substance and scope of general releases. In New York, “a valid release constitutes a complete bar to an action on a claim which is the subject of the release.” If “the language of a...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

Marshall Dennehey

Without Deciding Whether the 4th District Court Reached the Correct Result Under Fla. Stat. §627.7252(2)(a)4’s Actual Text, the...

Marshall Dennehey on

Apex Roofing & Restoration LLC a/a/o Monica Williams v. United Auto. Ins. Co., Fla. 1st DCA, No. 1D2022-3990, October 2, 2024 - Prior to suit, USAA’s insured assigned her rights to Apex via an Assignment of Benefits (AOB)...more

Morris James LLP

Superior Court Sustains Alternative Claims for Breach of Contract and Implied Covenant in Dispute Between Medicare Advantage...

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Premium Choice Ins. Servs. v. Innovative Fin. Group Holdings, LLC, C.A. No. N24C-01-006 PRW CCLD (Del. Super. Ct. July 9, 2024) - Plaintiff Premium and defendant IFG were middlemen in the market for Medicare Advantage...more

Lathrop GPM

Texas Federal Court Denies Manufacturer’s Motion to Dismiss Complaint Challenging Termination of Dealer Agreements

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A federal court in Texas denied a manufacturer’s motion to dismiss its dealers’ claims of wrongful termination and breach of contract. Cooper Equip. Co. v. Hitachi Constr. Mach. Americas, Inc., 2024 WL 4467536 (W.D. Tex. Oct....more

Freiberger Haber LLP

New York Court of Appeals Examines the Enforceability of a Contract’s Two-Year Suit Limitation Period

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In Farage v. Associated Ins. Mgt. Corp., 2024 N.Y. Slip Op. 05875 (Nov. 26, 2024) (here), the New York Court of Appeals examined the enforceability of an insurance contract’s two-year suit limitation period. In a 4-3...more

Foley & Lardner LLP

Recent California Federal Court Decision Indicates That Determining Whether an Employment Agreement Illegally Restrains Lawful...

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In a previous article that we published in October 2023, we detailed California’s forthcoming amendment to its noncompete law. That law, which is codified in California Business & Professions Code sections 16600 et seq, voids...more

Davis Wright Tremaine LLP

Should I Stay or Should I … Dismiss: Supreme Court Mandates Federal Courts To Stay, Not Dismiss, Actions Under the Federal...

The question is often raised whether to file a lawsuit in court if claims are subject to arbitration. There are myriad reasons (statutory requirements, statute of limitations/repose, subpoena powers of courts, etc.) why a...more

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