In O’Halloran v. Harris Corp. (In re Teltronics, Inc.), 2018 WL 4700578 (11th Cir. Oct. 2, 2018), the Eleventh Circuit affirmed a district court judgment affirming a bankruptcy court order dismissing a fraudulent conveyance claim. The alleged fraudulent conveyance was the debtor’s transfer of a “blocking right” and right of first refusal under a patent…
Author: Wendy Spiro
Split Panel Upholds Dismissal of Force-Placed Insurance Claims Under Filed-Rate Doctrine
Last week, a split panel of the Eleventh Circuit upheld the dismissal of a class action over “force-placed insurance” under the filed-rate doctrine. Patel v. Specialized Loan Servicing, LLC, 2018 WL 4559091 (11th Cir. Sept. 24, 2018). The “force-placed insurance” in question concerns the residential mortgage market. A typical mortgage contract requires the borrower to…
Availability of Class Arbitration Is a “Question of Arbitrability” to Be Decided by a Court Absent a “Clear and Unmistakable Intent” to Delegate Arbitrability Questions to an Arbitrator
For the second time in as many months, the Eleventh Circuit addressed the question of who—a court or an arbitrator—decides whether an arbitration agreement allows for class arbitration. The court faced this question just last month in Spirit Airlines, Inc. v. Maizes, 899 F.3d 1230 (11th Cir. 2018), but its more recent decision in JPay, Inc….
Eleventh Circuit Upholds Constitutionality of Giving Preclusive Effect to Engle Jury Findings on Intentional Torts
Recently, in Searcy v. R.J. Reynolds Tobacco Co., 2018 WL 4214594 (11th Cir. Sept. 5, 2018), the Eleventh Circuit held that giving preclusive effect to a Florida jury’s findings that tobacco companies had concealed the health impacts of smoking did not violate the Due Process Clause when the defendants had notice and an opportunity to…
Court Declares Ratepayers’ Challenge to Jefferson County Bankruptcy Plan Equitably Moot
In Bennett v. Jefferson County, Alabama, 2018 WL 3892979 (11th Cir. Aug. 16, 2018), the Eleventh Circuit held that the doctrine of equitable mootness barred a challenge by ratepayers to Jefferson County’s bankruptcy plan, representing the first time the court has applied the doctrine to a Chapter 9 municipal bankruptcy. Jefferson County declared bankruptcy in…
Spirited Court Widens Circuit Split Over Who Decides Class Arbitrability
In Spirit Airlines, Inc. v. Maizes, 2018 WL 3866335 (11th Cir. Aug. 15, 2018), the Eleventh Circuit concluded that an arbitration agreement providing that the rules of the American Arbitration Association (“AAA”) will cover all disputes constitutes clear and unmistakable evidence that the parties intended for an arbitrator to decide whether class arbitration is available….
Eleventh Circuit Rejects Constitutional Challenge to Brookhaven Ordinance Regulating “Sexually Oriented Businesses”
In 2013, the City of Brookhaven enacted its code to “regulate sexually oriented businesses in order to promote the health, safety, and general welfare of the citizens of the City, and to establish reasonable and uniform regulations to prevent the deleterious secondary effects of sexually oriented businesses within the City.” The new code did not…
Defendant Sails to Victory in Trade Secret Case
In Yellowfin Yachts, Inc. v. Barker Boatworks, LLC, 2018 WL 3734344 (11th Cir. Aug. 7, 2018), the Eleventh Circuit upheld the dismissal of trade-secret claims related to the manufacture and sale of fishing boats. Yellowfin Yachts is a manufacturer of high-end fishing boats, allegedly known in the marketplace for the “swept sheer line” of their…
A Default in Proceeding with Arbitration Does Not Necessarily Authorize a Default Judgment in Federal Court
In Hernandez v. Acosta Tractors Inc., 2018 WL 3761126 (11th Cir. Aug. 8, 2018), the Eleventh Circuit held that a party’s default in proceeding with arbitration after requesting it did not necessarily warrant entry of default judgment against that party in federal court. Julio Hernandez sued his former employer, Acosta Tractors, and two of its…
Foreign Companies Can Acquire U.S. Trademark Rights without Direct Sales to Consumers
Direct Niche, LLC v. Via Varejo S/A, 2018 WL 3687868 (11th Cir. Aug. 3, 2018), emphasizes that foreign companies can acquire trademark and service mark rights in the United States even without selling products directly to consumers domestically. Instead, contracts with third parties and publication of the mark are sufficient to confer rights. The Eleventh…