Inconsistent behaviour/Несовместимое поведение

 

The Trading With the Enemy Act (History, romance, judicial practice)

A U.S. citizen, Mrs. Zander, traveled to Germany in 1939 and married a German citizen during World War II. Despite her marriage and prolonged stay in Germany, Mrs. Zander maintained her allegiance to the United States, avoided aiding the German war effort, and eventually fled to the American Army. After the war, she returned to the U.S. and sought recovery of her seized assets under the Trading With the Enemy Act. The court addressed whether Mrs. Zander was an "enemy" under the Act due to her residence in Germany during the war. Ultimately, it ruled that she was not a resident of Germany in the legal sense, given her consistent loyalty to the U.S. and her intent to return. The court held that she was entitled to recover her assets.

The court ultimately ordered the merger to be completed.

Companies A and B entered into an agreement under which Company A would merge with Company B. The primary investor in Company B opposed the deal but lacked voting rights in the collegial body responsible for approving the merger. After the agreement was signed, the investor took measures to replace all members of the collegial body. Subsequently, Company B delayed the completion of the merger. The court ultimately ordered the merger to be completed. The Court found that reasonable best efforts provisions require each party to “take all reasonable steps to solve problems and consummate the transaction” and to take “appropriate actions to keep the deal on track,” including forthright discussions between the parties.

Good faith and fair dealing/Добросовестность и честная деловая практика

Definition of hardship/Определение затруднений

 

A significant risk of fighting on two fronts

 The court’s decision underscores a significant risk of fighting on two fronts: adopting inconsistent positions. The Contractor successfully leveraged the Owner’s testimony from a separate lawsuit against another company. In that testimony, the Owner attributed all project delays to the company’s continuous design changes. The court determined that this testimony demonstrated material issues regarding design completion that led to substantial project delays. During the dispute between the Contractor and the Owner, the Contractor asserted that the Owner’s ongoing design changes caused it to miss the substantial completion deadline, while the Owner blamed the Contractor's subcontractors. Ultimately, the Owner withheld significant payments, prompting the Contractor to exercise its right to suspend work, leading to the Owner terminating the contract for default. The court awarded $5 million in damages in favor of the Contractor.

This could result in treble damages and penalties for each “false” entry

 

The U.S. Department of Justice has filed a complaint against a Company and its network of suppliers, alleging violations of the False Claims Act. Specifically, the DOJ claims that the Company engaged in a long-standing scheme to undervalue imports from China by submitting a false set of invoices to the government. A third-party auditor also informed the Company that it needed to reassess its duty calculations and pricing arrangements. By undervaluing imports, a company can pay less in customs duties but may face lawsuits under the FCA for making false statements to evade paying the government. This could result in treble damages and penalties for each “false” entry. Neither “everyone does it” nor “we are being unfairly singled out” constitutes a valid legal defense.

Начало течения срока апелляционного обжалования решения суда

 

Поскольку закон связывает начало течения срока апелляционного обжалования решения суда с моментом составления его в мотивированной форме, при разрешении вопроса о соблюдении стороной срока подачи апелляционной жалобы суду надлежит установить, когда мотивированное решение было фактически изготовлено и подписано, а не момент, когда оно должно быть изготовлено и подписано в соответствии с законом. Имеющееся в деле сопроводительное письмо без указания даты в отсутствие почтового реестра или иных доказательств не свидетельствует о своевременном исполнении судом обязанности по направлению копии решения суда.

"You are not bound by the express terms of the contract..."

 

The lease agreement provided the following term: the rent amount shall be determined in the sole and absolute discretion of the Lessor. The trial court gave the jury the following instruction: "You are not bound by the express terms of the contract but are free to go beyond the literal wordage of the written document." The trial court also instructed the jury that the jury was to decide the rental value. However,  the Nevada Supreme Court found that the trial court erred in failing to find that the Lessor had sole and absolute discretion to set the rental rate. In this regard, the court stated the following: "All contracts impose upon the parties an implied covenant of good faith and fair dealing, but the implied covenant may not be used to supply additional terms to the lease…”

Legal Practice by Rap. She allegedly downloaded thousands of documents containing confidential information and trade secrets

 

The court ordered a former executive to face claims related to her alleged theft of trade secrets. She allegedly downloaded thousands of documents containing confidential information and trade secrets. The company’s motion for a temporary restraining order was denied, as the court found that the company had “not introduced evidence that the former executive accessed the company’s documents for any purpose other than to do her job at the time, and the case law is very clear that this does not constitute misappropriation.” However, the court denied her motion to dismiss the complaint, finding that the company sufficiently identified 12 specific examples of trade secrets that were purportedly misappropriated, which were enough to state a claim for misappropriation. The court also found that discovery was the best avenue to resolve the former executive's argument that the company suffered no damages.

Legal Practice by Rap. There was a $1.6 billion award for a developer of a construction project

 

A New York appeals court has affirmed a $1.6 billion award for a developer of a construction project against various subsidiaries of a state corporation from China. The dispute involves the construction of the Baha Mar beach resort complex in Nassau. After a series of delays that prevented the resort from opening as planned in March 2015, the developer filed for bankruptcy and sued various state-owned entities, including the minority investor, prime contractor, construction manager, and others for breach of contract, fraud, and alter ego theories. The lower court pierced the defendants’ corporate veils and awarded the developer $845 million for the loss of its entire investment, plus prejudgment interest of $830 million. The court held that the prime contractor entity exercised complete domination over the other defendants in order to breach the investor agreement, defraud the plaintiff, and cause the collapse of the project. 

Legal Practice by Rap. The type of “divisional merger” allows the new subsidiary to resolve the separated liabilities through a bankruptcy filing

 

Thousands of users of a company’s products started filing lawsuits against the company regarding product quality. To address the litigation liability, the company undertook a “Texas two-step” transaction, in which a parent company uses a Texas “divisional merger” statute to create a new subsidiary to hold a portion of the corporate family’s tort liabilities. This type of “divisional merger” allows the new subsidiary to resolve the separated liabilities through a bankruptcy filing while the rest of the corporate family remains outside of bankruptcy. The company filed two previous “Texas two-step” bankruptcy cases in an effort to resolve these liabilities.  Both prior cases were dismissed as bad-faith filings.

SOURCE

Legal Practice by Cyber Punk. A new concept of ‘institutional psychological harassment’.

 

The French Court of Cassation has introduced and defined a new concept of ‘institutional psychological harassment’. The case relates to the suicides of workers linked to a company restructuring policy.  Following a series of suicides, a trade union condemned the company’s reorganisation policy which, in its view, amounted to psychological harassment. Following this complaint, the company and several of its senior executives were prosecuted for harassment. This means that directors, senior managers, and employees can now be personally liable for decisions that result in harassment, even when the facts do not arise from their individual relationships with employees, but rather result from a company policy that they have designed and implemented.

Legal Practice by jazz. Clarity on the fiduciary duties between business partners

 

The Texas Supreme Court has provided clarity on the fiduciary duties between business partners, particularly in the context of limited partnerships. The Court’s opinion addressed the complex issue of whether a limited partner can assume fiduciary duties to other limited partners by acting as a general partner. The Court explained that limited partners generally do not owe each other fiduciary duties. The court emphasized that any fiduciary duty a limited partner could owe to another limited partner would have to be based on actions outside the realm of the limited partner’s position.

Legal Practice by Witch house spells or Experimental Metal. Снос объектов самовольного строительства, возведенных в рекреационной зоне

 

Из материалов дела следует, что в данном случае, возведенные здания на земельном участке, расположенном в рекреационной зоне, не соответствуют виду разрешенного использования. При этом,  застройщик должен принимать  необходимые меры  к соблюдению требований земельного законодательства,  в том числе, получению информации,  содержащейся  в документах градостроительного планирования,  и  информации о наличии нормативных ограничений градостроительной деятельности. Поскольку участок полностью расположен в рекреационной зоне, оснований для размещения на нем  спорных объектов, учитывая их вид,  не имеется.  При соблюдении баланса частных и публичных интересов в вопросе сноса самовольной постройки, необходимо учитывать, что сохранение рекреационных зон направлено на обеспечение публичных интересов, которые имеют приоритет над  частным интересам конкретного лица, осуществившего самовольное строительство. 

Legal Practice by HipHop. Если страховщик не организовал и не оплатил ремонт авто.

 

Неисполнение страховщиком своих обязательств влечет возникновение у потерпевшего убытков  в размере стоимости того ремонта, который страховщик обязан был организовать и оплатить. Такие убытки подлежат возмещению по общим правилам возмещения убытков на основании соответствующих статей  Гражданского кодекса Российской Федерации, ввиду отсутствия специальной нормы в Законе об ОСАГО. В противном случае эти убытки, не были бы возмещены, а потерпевший был бы поставлен в неравное положение с потерпевшими, в отношении, которых обязательство страховщиком исполнено надлежащим образом. Не могут быть переложены эти убытки и на причинителя вреда, который возмещает ущерб потерпевшему при недостаточности страхового возмещения, поскольку данные убытки возникли не по вине причинителя  вреда, а вследствие неисполнения обязательств страховщиком. Определение ВС РФ от 18.02.2025 № 41-КГ24-58-К4. 

Legal Practice by Experimental Metal. The company pleaded guilty to failing to ensure that the machinery switched off before workers could enter the danger area of the machinery

 A Victorian paper manufacturer was fined for failing to implement a safe system to prevent an obvious risk of entanglement with moving parts of a machine. The machine often experienced jams, which the worker cleared by hand. The workers were trained to clear jams while the machines were still rotating at full speed. As a result, there was a high risk of serious injury. As a result, in attempting to resolve the jam, the worker suffered significant injury. The company pleaded guilty to failing to ensure that the machinery switched off before workers could enter the danger area of the machinery.

Legal Practice by Rap. The primary coverage for a rental vehicle.

 

New York’s state appellate court has declared rental car companies are not required to provide primary insurance coverage to customers. Under the court’s ruling, parties to the rental agreement can determine which of them will provide primary coverage for a rental vehicle.  If the renter is responsible for providing the coverage but fails to do so, the decision seems to open the door for the rental company to pursue indemnity against the customer.

Legal Practice by Rap. Significant Changes to Delaware General Corporation Law

 

Delaware’s legislature and Governor acted with dispatch to pass a law with a number of changes the most notable changes are intended to reduce litigation targeting directors, officers, and controlling stockholders. The most notable changes are: raising the bar for deeming a stockholder to be a “controlling stockholder; easing the standard for shielding controlling stockholder transactions; narrowing the ability to make Books-and-records demands.  One of the major criticisms of existing case law is the scope creep in the definition of who is a controlling stockholder. The new law effectively introduces a floor of one-third ownership in order to be deemed to be a controlling stockholder.

Legal Practice by Rap. The statement was "misleading but not false”