Features
Supreme Court: Title VII Employee Threshold Does Not Determine Jurisdiction
The United States Supreme Court has resolved a significant issue regarding coverage under Title VII: whether the 15-employee threshold for determining whether an individual or entity is an 'employer' covered by Title VII of the Civil Rights Act of 1964 is a substantive element of plaintiff's claim for relief, or a jurisdictional issue. (Arbaugh v. Y & H Corp., No. 04-944 (2006)). In Arbaugh, the Supreme Court, reversing the U.S. Court of Appeals for the Fifth Circuit, held that the 15-employee threshold is an element of a plaintiff's claim that must be challenged prior to trial on the merits. The Supreme Court's decision is significant because evaluating the number of employees as a substantive issue would allow a federal court to exercise supplemental jurisdiction and to retain discretion to hear pendent state law claims even if it dismisses the federal claims for failure to state a claim.
Features
New Rule on 'Internet Applicant'
The Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) oversees compliance with the equal opportunity and affirmative action requirements applicable to all government contractors. The OFCCP is charged with enforcing Executive Order 11246, which prohibits federal contractors from discriminating against applicants on the basis of race, color, religion, sex, or national origin. The Order also requires contractors to use affirmative action so that equal opportunity is available for all phases of employment. As such, contractors must retain all applicant-related company records as well as other employment records. In particular, contractors are required to maintain records of 'applicant flow data' by soliciting gender, race and ethnicity information from all applicants. If a contractor fails to comply with the rules issued by the OFCCP, it will be subject to disciplinary action, ranging from citations and economic fines to debarment.
Features
Case Briefs
Highlights of the latest insurance cases from around the country.
Features
Cover the Call: Coverage for Violations of the TCPA
The Telephone Consumer Protection Act ('TCPA'), 42 U.S.C. §227, was enacted to protect the privacy of individuals and businesses that were being inundated with unwanted faxes. The TCPA makes it unlawful 'to use any telephone facsimile machine, computer or other device to send an unsolicited advertisement to a telephone facsimile machine.' The statute expressly declares that its intent is to protect 'privacy rights.' 42 U.S.C. §227(b)(2)(B)(ii)(I).
Features
The Treatment of the Debtors' Insurance in Recent Asbestos Bankruptcy Cases
Since the 1980s, dozens of asbestos bankruptcy cases have been filed. In many of these cases, issues relating to the treatment of the debtor's insurance coverage for asbestos claims have been heavily litigated. To comprehensively discuss the handling of the debtor's insurance in these cases would be daunting and lengthy. This article provides an overview of the principal options and variations with respect to treatment of insurance in asbestos-related Chapter 11 proceedings and focuses on four recent asbestos bankruptcy cases.
Features
When Bad Faith Threatens Good Business: Third Circuit Developments in Insurer Bad-Faith Claims
Insurer bad-faith liability — that is, any liability beyond the coverage or other benefits expressly provided for in the insurance contract — has been litigated for about a century. For most of that time, judges and jurors applied it sparingly in egregious cases of blatant abuse by insurers. However, the tort of bad faith, by proscribing (among other things) 'unfounded' denials of coverage motivated by 'self-interest,' has always existed in tension with insurers' fundamental duty to maximize enterprise value by, for instance, paying claims only when contractually required. This tension, rarely explicit in the early cases, increasingly is laid bare as policyholders aggressively (if understandably) press doctrinal boundaries in the hope of recovering tort damages in suits on insurance contracts. Two recent cases involving disability benefits from courts within the Third Circuit — <i>Northwestern Mut. Life Ins. Co. v. Babayan</i>, 430 F.3d 121 (3d Cir. 2005), and <i>Saldi v. Paul Revere Life Ins.</i>, 224 F.R.D. 169 (E.D. Pa. 2004) — illustrate this tension and suggest a need for judicial management to harmonize insurers' conflicting duties.
e-Commerce Docket Sheet
Recent cases in e-commerce law and in the e-commerce industry.
Is Your Hotline AAA-Rated?
Many companies and organizations have hotlines that are needlessly weak or even ineffective, and they often don't even know it. Unfortunately, there are no up-to-date, authoritative standards for hotlines. This has forced Securities and Exchange Commission registrants and their auditors to use an unusually high degree of judgment in evaluating the effectiveness of hotlines for Sarbanes-Oxley '404 reporting. Non-registrants are more vulnerable to 'phantom hotline syndrome.'<br>Some entrepreneurs, and their advisers, may not be impressed by the need for a hotline at an e-business, but they're mistaken about the importance of this tool in the current environment of ever-increasing regulation and scrutiny of business practices.
The Effect of Settlements upon Settlements
Insurance coverage disputes regarding long-tail claims, such as toxic tort or environmental damage claims, often lead to protracted and expensive litigation. Dollars spent on that litigation often would be better spent in compensating the underlying case plaintiffs, such as victims of toxic torts, or in cleaning the environment. Further, such litigation is a substantial drain on already overburdened judicial resources. In resolving insurance coverage disputes, therefore, an important consideration should be whether a particular approach will encourage or discourage settlement of future disputes, while being fair to the litigants. An emerging issue that can have a significant impact on whether future coverage disputes will be settled or litigated to judgment is whether a non-settling insurer will receive a credit based upon settlements an insured has reached with other insurers in regard to the same occurrence and, if so, how that credit will be calculated. At least three approaches have begun to emerge. The approach chosen will have a substantial impact on whether litigants are treated fairly and whether settlement of future disputes will be encouraged or discouraged.
Need Help?
- Prefer an IP authenticated environment? Request a transition or call 800-756-8993.
- Need other assistance? email Customer Service or call 1-877-256-2472.
MOST POPULAR STORIES
- Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About ItWhy is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?Read More ›
- Major Labels File Lawsuits Over AI Companies' Alleged Copying of 'World's Most Popular' RecordingsMajor record labels including Capitol Records and Sony Music Entertainment sued two music-focused generative artificial intelligence companies, accusing them of "willful copyright infringement on an almost unimaginable scale."Read More ›
- Removing Restrictive Covenants In New YorkIn Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?Read More ›
- Blockchain Domains: New Developments for Brand OwnersBlockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.Read More ›
- Beach Boys Songs Written Decades Ago Triggered Current Quarrel With LawyersThere's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.Read More ›