Internal Affairs Doctrine Dictates That the Law of the State of Incorporation Governs Claims for Breach of Fiduciary Duty and Unjust Enrichment

Schartz v Parish, 2016 WL 7231613 (N.D. Ill. Dec. 14, 2016). In this action, the United States District Court, Northern District of Illinois, granted Plaintiff Brian Schartz’s (“Plaintiff”) motion to remand finding the Class Action Fairness Act’s (“CAFA”) internal affairs doctrine applied to the Plaintiff’s Breach of Fiduciary duty  and Unjust Enrichment claims which were solely alleged against a Wisconsin corporation and the allegations solely involved directors and/or officers of a Wisconsin corporation. View Full Post
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DISGORGEMENT CLAIMS CONTINUE TO CONFOUND COURTS IN ERISA CLASS ACTIONS

Courts continue to be split over the availability of disgorgement and “accounting for profits” in ERISA class actions involving in-house investment plans. On March 3, 2017, in Brotherston v. Putnam Investments, LLC, No. 1:15-cv-13825-WGY (D. Mass. March 3, 2017), the court declined to resolve the dispute at the summary judgment stage, allowing the certified class of employees to move forward with their claim that the company should be forced to disgorge profits earned from defendant’s in-house 401k plan.  View Full Post
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Supreme Court Hears Arguments in Microsoft V. Baker to Address When a Named Plaintiff Can Appeal the Denial of Class Certification

Earlier today, the Supreme Court heard oral argument (pdf) in Microsoft Corp. v. Baker, a case that raises complicated questions about federal appellate jurisdiction and Article III standing, but ultimately involves an important practical question in class action litigation: Can a named plaintiff engineer a right to an immediate appeal of the denial of class certification by voluntarily dismissing his or her claims with prejudice and appealing from the resulting judgment? View Full Post
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Shedding Some Light On BPA Settlements

In our post last week, we outlined the terms of the first two published Proposition 65 BPA settlements, for polycarbonate drinkware. We explained that we don’t know if these settlement terms would become a standard for future settlements and compliance because of the nature of the settlements – out-of-court, with the same plaintiff and Proposition 65 plaintiffs firm.  View Full Post
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A Controversy is Local if All the Plaintiffs Reside in the Same City!

Mason, et al., v. Lockwood, Andrews & Newman, 2016 WL 6777325 (6th Cir. Nov. 16, 2016). The Sixth Circuit affirmed an order remanding the action to the state court finding that the district court rightly applied the local controversy exception holding that, when all the plaintiffs were from the same city, it is all but obvious that the controversy is local.  View Full Post
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2017 Marks First Year All Companies Must Provide UK Modern Slavery Act Disclosure

2017 marks the first year when all companies covered by the UK Modern Slavery Act 2015 must publish a statement. Under section 54 of the Act – which is similar to the California Transparency in Supply Chains Act – commercial organizations that do business in the UK and have a global turnover of at least £36 million in any financial year are required to publish a slavery and human trafficking statement. View Full Post
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PHH Corporation to Appellate Court: Blow Up the CFPB

explosionThe much-anticipated rematch between PHH Corporation and the Consumer Financial Protection Bureau has begun. Last week, PHH filed its opening legal brief, in which it seeks invalidation of the entire CFPB. Boldness aside, that outcome is unlikely. For those who do not follow the activities of the CFPB, the case is a rehearing of an earlier decision by the United States Court of Appeals for the District of Columbia Circuit. View Full Post
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Class Action As Defense: Fifth Circuit Rules Pending Class Action Subsumes Class Member’s Duplicative Individual Claim

Employers facing multiple litigations can take solace in the fact that, sometimes, too much of a bad thing can be helpful.  In Ruiz v. Brennan, 16-11061, the Fifth Circuit held that a pending administrative class action subsumed a plaintiff’s attempts to file an arguably duplicative individual claim in a separate action.  View Full Post
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Government Agencies to Be Rated On Cybersecurity Using NIST Framework

The Trump administration has announced that it will impose new metrics on federal agencies related to cybersecurity.  Agencies and departments will be required to comply with the framework developed by the National Institute of Standards and Technology (NIST) and report back to the Department of Homeland Security (DHS), the Office of Management and Budget (OMB), and the White House. View Full Post
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Mayer Brown Submits Amicus Brief for Chamber of Commerce, American Tort Reform Association, and American Insurance Association in Eighth Circuit Appeal Involving Proper Application of Punitive Damages Guideposts

Car insuranceSeemingly minor legal issues sometimes can have a surprisingly significant effect. That is particularly true with the ratio guidepost because the effect of any dispute about the guidepost’s application is literally multiplied. We recently filed an amicus brief on behalf … View Full Post
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