The subpoenaed criminal defense attorney, former federal prosecutor Richard Kuniansky, told The Lawbook the request from receiver Levi Benton, a former Harris County civil district judge, was “crazy,” and said if Benton is allowed access to the entire file it would have ramifications well beyond this case. The client, Ataa Shadi, was sued in civil court by duped investors who got a $3 million default judgment against him in 2020. He was indicted on related criminal fraud charges in May.
Litigation Roundup: Ernst & Young Beats Fraud Claims, Sandy Hook Families Prevail in Alex Jones Bankruptcy
In this edition of Litigation Roundup, a massage company pays $1 million to end the sex assault claims lodged by two female customers, a lawsuit between the parent company of Ace Cash Express and a former business partner seeks as much as nine-figure damages, and American Airlines wins an appeal in a discrimination lawsuit venue fight.
Jury Says No Breach, No Bad Faith, No $30M
A Harris County jury recently heard three weeks of evidence in a breach of contract and bad faith lawsuit stemming from the $90 million sale of a business that rents pumps used in the oil and gas industry. Jurors had to answer two questions: Did GR Energy Services breach a noncompete agreement by communicating with SpaceX about the possible purchase of pumps after it sold its Flex Flow pump business? And did Odessa Pumps act in bad faith in managing Flex Flow after the purchase from GR to keep profits artificially low in order to avoid paying GR a $30 million earnout? No, and no, the jury said.
Fifth Circuit Cites SCOTUS Precedent, Axes Win for McKinney Woman Whose Home Cops Destroyed
The panel determined that because the actions of the McKinney police took to end the hostage situation and standoff were “objectively necessary,” Vicki Baker isn’t entitled to compensation on her Fifth Amendment takings claim. The Fifth Circuit said U.S. Supreme Court precedent, which has long recognized an exception to the takings clause, mandated the outcome and that, as a lower court, “it is not for us to decide that fairness and justice trump historical precedent.”
Litigation Roundup: Hunton AK Tapped to Defend Aetna in $1.3B Suit, Waco Jury Slams California Co. With $240M Infringement Verdict
In this edition of Litigation Roundup, Texas juries find infringement in one case involving smart thermostats and another involving cloud storage, a group of doctors want a Harris County judge to confirm a $153.5 million arbitration award in a dispute with UnitedHealthcare and federal prosecutors in Houston drop a female genital mutilation case.
Fifth Circuit Revives Racial Profiling Suit Against Mesa Airlines
A three-judge panel on Friday determined that disputed fact issues should have precluded U.S. District Judge Reed O’Connor from granting Mesa Airlines a summary judgment win in the lawsuit brought by Issam Abdallah and Abderraouf Alkhawaldeh. The men booked their tickets through American Airlines for a flight Mesa operated. Both frequent fliers on American Airlines, Abdallah holds gold status and Alkhawaldeh holds executive platinum status.
Dallas Rental Owners are Latest to Challenge Restrictions Aimed at Airbnb, VRBO Hosts
Owners of Dallas properties available for rent on platforms such as Airbnb and VRBO have lodged a suit seeking to stop enforcement of a city ordinance that would largely ban short-term rentals in the city. It’s the latest in a long line of lawsuits challenging the ability of cities to regulate the short-term rental market, an issue the Texas Supreme Court has yet to weigh in on.
Litigation Roundup: Katten to Defend $170M Healthcare Fraud Case, Fatal Crash Draws $100M Suit
In this edition of Litigation Roundup, a history professor at the University of Texas at Austin sees his retaliation lawsuit revived while a finance professor at the university sees his discrimination lawsuit tossed, a judge in the valley awards a man who had his leg amputated in a workplace injury $10.5 million, and a team of lawyers at Foley & Lardner get a win for their direct-selling client against the Federal Trade Commission.
Texas Justices Wrestle with Attorney Fee Recovery in Prompt Payment Act Dispute
The Texas Supreme Court heard oral arguments Wednesday morning on a certified question from the U.S. Court of Appeals for the Fifth Circuit in a dispute that tees up the interpretation of a 2017 amendment to the Texas Prompt Payment of Claims Act. Noting a federal court split on the issue and that only one intermediate appellate court in Texas has addressed the issue, the Fifth Circuit asked: In an action under Chapter 542A of the act, does an insurer’s payment of the full appraisal award plus any possible statutory interest preclude recovery of attorney fees?
Houston Judge Beats the Buzzer on Facing Contempt Proceedings
According to a time-stamped copy of a letter Harris County District Judge Ursula Hall sent to the First Court of Appeals Monday, she avoided by one hour and 44 minutes what the justices had threatened would be the “immediate initiation” of contempt proceedings for her lengthy delay in ruling on two pending motions in a foreclosure dispute. When the court issued a writ of mandamus to Judge Hall Sept. 25, she had failed to rule on a motion for summary judgment for three years, five months and 18 days.