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Justia Weekly Opinion Summaries

Business Law
August 28, 2020

Table of Contents

Colonial Oaks Assisted Living Lafayette, LLC v. Hannie Development, Inc.

Arbitration & Mediation, Business Law, Civil Procedure, Contracts

US Court of Appeals for the Fifth Circuit

ECIMOS, LLC v. Carrier Corp.

Business Law, Contracts, Copyright, Intellectual Property

US Court of Appeals for the Sixth Circuit

Thurston v. Fairfield Collectibles of Georgia, LLC

Business Law, Civil Procedure, Civil Rights, Consumer Law, Internet Law

California Courts of Appeal

S&T Bank v. Groskop

Business Law, Civil Procedure

Wyoming Supreme Court

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Legal Analysis and Commentary

Drafted and Shafted: Who Should Complain About Male-Only Registration?

SHERRY F. COLB

verdict post

Cornell law professor comments on a recent opinion by the U.S. Court of Appeals for the Fifth Circuit holding that requiring men but not women to register for the draft is constitutional under mandatory U.S. Supreme Court precedents. Specifically, Colb considers what the U.S. Supreme Court should do if it agrees to hear the case and more narrowly, whether the motives of the plaintiffs in that case bear on how the case should come out.

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Business Law Opinions

Colonial Oaks Assisted Living Lafayette, LLC v. Hannie Development, Inc.

Court: US Court of Appeals for the Fifth Circuit

Docket: 19-30995

Opinion Date: August 26, 2020

Judge: Don R. Willett

Areas of Law: Arbitration & Mediation, Business Law, Civil Procedure, Contracts

After Buyers purchased two care facilities from Sellers, Buyers filed suit alleging that Sellers made fraudulent or, at best, negligent misrepresentations in the parties' sale agreements. Buyers also brought claims against Sellers' representatives in their individual capacities. The Fifth Circuit affirmed the district court's dismissal of Buyers' claims with prejudice for failure to state a claim. The court held that the district court properly dismissed Buyers' non-fraud claims for negligent misrepresentation and breach of contractual representations and warranties because these claims were subject to arbitration. In regard to the remaining claims, the court held that Buyers have not adequately pleaded a misrepresentation with respect to both facilities and thus they failed to meet the particularity requirements of Federal Rule of Civil Procedure 9(b). Therefore, because there was no misrepresentation, there was no fraud.

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ECIMOS, LLC v. Carrier Corp.

Court: US Court of Appeals for the Sixth Circuit

Dockets: 19-5436, 19-5519

Opinion Date: August 21, 2020

Judge: Danny Julian Boggs

Areas of Law: Business Law, Contracts, Copyright, Intellectual Property

Carrier manufactures residential Heating, Ventilation, and Air Conditioning (HVAC) systems. ECIMOS produced the quality-control system that tested completed HVAC units at the end of Carrier’s assembly line. ECIMOS alleged that Carrier infringed on its copyright on its database-script source code—a part of ECIMOS’s software that stores test results. ECIMOS alleges that Carrier improperly used the database and copied certain aspects of the code to aid a third-party’s development of new testing software that Carrier now employs in its Collierville, Tennessee manufacturing facility. ECIMOS won a $7.5 million jury award. The court reduced Carrier’s total damages liability to $6,782,800; enjoined Carrier from using its new database, but stayed the injunction until Carrier could develop a new, non-infringing database subject to the supervision of a special master; and enjoined Carrier from disclosing ECIMOS’s trade secrets while holding that certain elements of ECIMOS’s system were not protectable as trade secrets (such as ECIMOS’s assembled hardware). The Sixth Circuit affirmed in part and reversed in part. There are sufficient reasons to conclude that Carrier did infringe on ECIMOS’s copyright, but Carrier’s liability to ECIMOS based on its copyright infringement and its breach of contract can total no more than $5,566,050. The district court did not err when it crafted its post-trial injunctions.

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Thurston v. Fairfield Collectibles of Georgia, LLC

Court: California Courts of Appeal

Docket: E072909(Fourth Appellate District)

Opinion Date: August 26, 2020

Judge: Manuel A. Ramirez

Areas of Law: Business Law, Civil Procedure, Civil Rights, Consumer Law, Internet Law

Plaintiffs Cheryl Thurston and Luis Licea (collectively Thurston) were California residents who purchased items from defendant Fairfield Collectibles of Georgia, LLC (Fairfield), a Georgia limited liability company, through the company's website. Thurston alleged Fairfield’s website was not fully accessible by the blind and the visually impaired, in violation of the Unruh Civil Rights Act. The trial court granted Fairfield’s motion to quash service of summons, ruling that California could not obtain personal jurisdiction over Fairfield, because Fairfield did not have sufficient minimum contacts with California. The Court of Appeal reversed, finding the evidence showed that Fairfield made some eight to ten percent of its sales to Californians. "Hence, its website is the equivalent of a physical store in California. Moreover, this case arises out of the operation of that website." The trial court therefore could properly exercise personal jurisdiction over Fairfield.

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S&T Bank v. Groskop

Court: Wyoming Supreme Court

Citation: 2020 WY 113

Opinion Date: August 26, 2020

Judge: Gray

Areas of Law: Business Law, Civil Procedure

In this complaint brought by Black Diamond Energy and Black Diamond Energy of Delaware (together, the BDE Companies) and seventeen limited partnerships (the Limited Partnerships) the Supreme Court affirmed the judgment of the district court dismissing with prejudice the complaint, holding that the district court did not abuse its discretion in dismissing the case with prejudice. The complaint alleged that S&T Bank's lending policies in the wake of the 2008 economic recession caused severe financial loss to the seventeen limited partnerships (the Limited Partnerships) managed by Black Diamond Energy and Black Diamond Energy of Delaware (together, the BDE Companies). Daniel Groskop, the trustee of a trust formed by the Limited Partnership, was later substituted for the Limited Partnerships as the true party in interest on the condition that the BDE Companies' claims against the Bank be dismissed with prejudice. Due to Groskop's noncompliance with discovery orders and the Wyoming Rules of Civil Procedure, the district court dismissed the case with prejudice. The Supreme Court affirmed, holding that the district court did not abuse its discretion when it concluded that Groskop's violation of two court orders compelling discovery, two orders awarding attorneys' fees, and the failure to fulfill the representative duties associated with Wyo. R. Civ. P. 30(b)(6) required dismissal with prejudice.

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