The court allowed one party to a contract to unilaterally extinguish his contractual obligation

The sole member of an LLC asked his friend to invest in the LLC by acquiring a share in it. The friend replied that it would later be difficult to sell the share at a favorable price. Then, the friends entered into an oral agreement that stipulated the repurchase of the share at a price to be calculated according to certain financial indicators. Five years later, the friend asked to have his share in the LLC repurchased, but was refused. Subsequently, the court established that the LLC's management agreement had been duly amended unilaterally to include a clause stating that all prior oral agreements were void. The court denied the claim, acknowledging that it allowed one party to a contract to unilaterally extinguish his contractual obligation.

The inherent difficulty in liquidating shares of LLC

 

The inherent difficulty in liquidating shares of a limited liability company (LLC) stems from several factors:

The court allowed limited production from a company

 

Delaware’s Chancery Court allowed limited production from a company in response to a broad request for document inspection, despite serious claims of fraud against the CEO. The petitioner was a former senior vice president and director. He claimed to have discovered fraud related to invoicing while working with the company and was terminated after voicing his concerns. The court accepted the company’s offer to provide  all formal Board level materials concerning audit function and financial oversight of the Company and practices related to customer invoices and its current written policy and procedure documents related to finance, accounting, and customer invoice functions.

When Off-the-Clock Conduct Costs Your Job: Pawelczyk v Commonwealth Bank of Australia

 

The lines between work and personal life are increasingly blurred in the age of smartphones and constant connectivity. But does what you do outside of office hours ever impact your job security? The recent case of Pawelczyk v Commonwealth Bank of Australia (2024), decided by the Fair Work Commission (FWC), serves as a stark reminder that out-of-hours conduct can indeed lead to dismissal if it has a sufficient connection to one's employment.

The fraud perpetrated by the senior management is beyond the scope of the audit responsibilities

Ernst & Young (EY) is facing a $2.6 billion negligence claim brought forth by the administrators of NMC Health, a private healthcare group that collapsed following a massive accounting scandal. In its defense, EY argues that the scale and sophistication of the fraud perpetrated by NMC's senior management went beyond the scope of its audit responsibilities, likening the situation to a meticulously constructed "Truman Show."

Kirkland & Ellis Navigates Affimed Through German Insolvency: A Case Study in Biotech Finance

 

The tumultuous waters of biotech finance have claimed another victim as Dutch immunotherapy developer Affimed, formerly listed on the Nasdaq, has initiated insolvency proceedings in Germany. The news underscores the inherent risks within the biotech sector, where promising research can quickly unravel due to funding shortfalls. Navigating this complex legal landscape is leading global law firm Kirkland & Ellis, advising Affimed on the German aspects of the insolvency.

Luxembourg-Owned Fibre Telecoms SPV Seeks Cayman Islands Winding Up: A Sign of Trouble in Emerging Markets?

A Luxembourg-owned special purpose vehicle (SPV), established to funnel investment into fibre optic telecommunications projects in Cambodia and Myanmar, has filed for winding up in the Cayman Islands. The move, reported in recent financial news, highlights the challenges facing investors in emerging markets and raises questions about the viability of ambitious infrastructure projects in the region.

Brazilian Cryptocurrency Fund's Chapter 15 Filing Fuels Ponzi Scheme Investigation in the US

 

A Brazilian insolvency administrator overseeing the collapse of a cryptocurrency investment fund, suspected of operating as a Ponzi scheme, has filed for Chapter 15 bankruptcy protection in Washington, DC. The move underscores the growing complexities of international cryptocurrency fraud and highlights the vital role of cross-border cooperation in recovering assets for defrauded investors.

Navigating the Texas Theft Liability Act: Recovering Damages for Stolen Property

The Texas Theft Liability Act (TTLA), found in Chapter 134 of the Texas Civil Practice and Remedies Code, offers a unique avenue for Texans to recover damages when their property is stolen. Unlike criminal prosecution, which focuses on punishing the thief, the TTLA provides a civil remedy, allowing victims to pursue financial compensation for their losses.

A salary ranges in all job postings

The Cleveland City Council passed Ordinance No. 104-2025 on April 28, 2025, requiring employers with 15 or more employees located in the City of Cleveland to include salary ranges in all job postings. Additionally, the Ordinance prohibits employers from inquiring about a job applicant’s salary history. Employers who violate the law face civil penalties ranging from $1,000 for a first offense to $5,000 for a third violation within a five-year span. The proponents of Ordinance emphasize several key benefits: Promoting Pay Equity; Empowering Job Seekers; Attracting and Retaining Talent; Boosting Economic Growth.

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.