Litigation

Part Two of a Multipart Article. Part One is here.Litigation involving AI rarely turns on abstract questions about the technology itself. Instead, disputes typically focus on how AI was deployed, what contractual promises govern its use and how responsibility for AI-driven outcomes is allocated between providers and customers.

In the case of In re Black Diamond Energy of Delaware, the U.S. District Court for the Western District of Pennsylvania provided insight regarding the “police and regulatory power” exception to the automatic stay set forth in 11 U.S.C. Section 362(b)(4).

A unanimous U.S. Supreme Court revived a personal injury lawsuit against a construction company, saying a federal appeals court was “too rigid” in applying a legal rule meant to ensure fairness in the judicial system.

Federal Circuit Reverses District Court’s Dismissal for Lack of Article III Standing Finding Plaintiffs Possessed a Non-Illusory Exclusionary Right Sufficient for Constitutional StandingFederal Circuit Vacates and Remands Infringement and Damages Judgments Due to Improper Single-Question Verdict Form Covering Multiple Patents, Vacates and Remands on §101 Alice Step Two for Failure to Instruct Jury on the Abstract Idea, and Affirms Patent Eligibility of Two Patents

In a closely followed venue dispute, the Bankruptcy Court for the District of New Jersey recently held that venue in the District was proper in the Chapter 11 cases of Multi-Color Corporation and its affiliates. The decision is significant because it offers an analytical framework for determining a debtor’s “principal assets” under section 1408 of the Bankruptcy Code.

In In re 33 Mako, the U.S. Bankruptcy Court for the Southern District of New York addressed the issue of whether an oversecured creditor may recover post-petition default interest under Section 506(b) of the Bankruptcy Code. In denying the debtor’s motion, the opinion offers meaningful guidance on the application of the five-factor equitable test used to evaluate default interest claims and clarifies how courts should weigh each factor.

Spirit Airlines’ shutdown was not merely another distressed-company filing, it was a real-time illustration of the limits of Chapter 11 in industries where value depends on uninterrupted operations, customer confidence, and constant liquidity.

Notable recent court filings in entertainment law.