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The Federal Arbitration Act Should Not Cover Consumer Claims

Reynolds Holding

But businesses have used the Federal Arbitration Act against consumers, inserting into agreements arbitration clauses that block consumer class actions. 3] Consumer products and services companies are keenly aware that arbitration clauses insulate them from liability. Supreme Court has ruled these clauses are valid. [1]

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First Department Recognizes Cause of Action for Specific Performance of LLC Member Voting Agreement

Farrel Fritz

If they could not agree on a matter put to vote, they each agreed to submit the matter to an arbitrator, then vote according to his recommendation. One shareholder sought to enforce the 1941 agreement, while the other argued that the agreement was invalid. A Trap for the Unwary LLC Member? Five years later, Ringling Bros.’

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Top 10 Business Divorce Cases of 2022

Farrel Fritz

This year’s list includes decisions by New York’s trial and appellate courts concerning a smorgasbord of interesting issues involving limited liability companies, closely held and not-for-profit corporations, and partnerships. All ten decisions were featured on this blog previously; click on the case name to read the full treatment.

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The First State Defines the Scope of Majority Shareholder Fiduciary Duties

Farrel Fritz

More often than not, the centerpiece of an intra-owner business dispute is a claim that those in control of the business breached their fiduciary duties to the company or the minority owners. Sears Hometown and Outlet Stores (the “Company”) is a small publicly traded company associated with Sears, Roebuck, and Co.

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Court Holds that a Financially Healthy Debtor Cannot File Chapter 11 Bankruptcy in Good Faith

ABI

2] In the late 1990’s, Aearo, [3] which became a wholly owned subsidiary of 3M in 2008, designed earplugs that allowed the wearer to hear voices but blocked loud noises, such as gunfire. [4] 2] In re Aearo Technologies, LLC., 2] In re Aearo Technologies, LLC., Aearo Technologies LLC is the only one currently operating.

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Strength in Numbers: The Resurgence of the Accounting Claim in Business Divorce Litigation

Farrel Fritz

A recent decision from the Southern District of New York, Sigalit v Kahlon , 21-CV-08921 (SDNY Aug 30, 2023) cements the trend, and it provides a fine starting block for discussion of the current state of the equitable accounting claim in business disputes. Don’t call it a comeback. 31190[U], 15 [New York County 2016]).

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Davis Polk Discusses Delaware Chancery Decision Denying Corwin Cleansing for Defensive Measure

Reynolds Holding

Stockholders Litigation decision highlighted concerns when a public company involved in a business combination adopts defensive measures that would continue for a significant period of time post-closing. In a decision on “enhanced scrutiny” under Unocal Corp. KKR Financial Holdings LLC. The recent In re Edgio, Inc.