A South Central Texas wagyu beef company filed for bankruptcy Monday in the Southern District of Texas after getting hit a year ago with a $30 million breach of contract and fraud verdict. Flatonia-based HeartBrand Holdings and its subsidiary American Akaushi Association filed for Chapter 11 citing liabilities between $10 million and $50 million and assets between $50 million and $100 million.
Only Four Texas Corporations Sign Pro-Diversity Briefs in College Admissions Case
The four companies are supporting Harvard University and the University of North Carolina, which have been sued by Students for Fair Admissions, an organization that claims that Asian Americans are being discriminated against when colleges consider race or ethnicity as a factor in admitting students.
Patent Lawyers: WDTX Waco Order Unfair, Misguided and Hypocritical
Since Judge Alan Albright took the federal bench in 2018, businesses and individuals have filed 2,622 lawsuits in Waco accusing others of patent infringement. New statistics show he handles 24 percent of patent disputes in the U.S. – more than any other judge. His cases proceed quickly from filing to finish. Empirical data shows plaintiffs and defendants each win about half of their trials. Judge Albright rules for defendants 90 percent of the time on summary judgment.
This week, the federal judiciary shut down Judge Albright’s patent docket and has started sending his patent cases to other judges. In an in-depth report, The Texas Lawbook looks at the allegations by some tech companies against Judge Albright, reveals new data about his caseload and provides feedback from 19 patent lawyers in Texas. FYI: They are pissed.
WDTX Chief Judge: “Equitably Distribute” Waco Patent Cases to All Judges
The Waco patent rocket docket days may be over. WDTX Chief Judge Orlando Garcia issued an order Monday that requires that all new patent infringement lawsuits filed in the Waco Division be immediately assigned randomly to the district’s 12 federal judges. The order seems designed to end Judge Alan Albright’s three-year run as the federal judge handling the most patent cases in the U.S. The patent litigation bar is speaking out and they are not happy about the new order. The Texas Lawbook has the details.
ERCOT & Panda Face Off Again at Texas Supreme Court
The six-year bear of a legal battle between the Electric Reliability Council of Texas and Panda Power has again reached the Texas Supreme Court. In a case being watched by scores of lawyers in the Winter Storm Uri litigation, ERCOT wants the state’s highest court to declare that it is part of the state government and thus immune from civil lawsuits. Panda claims ERCOT knowingly produced false market data in 2011 and 2012 that led it to invest $2.2 billion to build three new power plants and doesn’t deserve immunity.
Texas Lawbook Hires Law360 Litigation Reporter Michelle Casady
Michelle Casady joins Natalie Posgate, who has been with The Lawbook for a decade, and former Dallas Morning News writer and editor Bruce Tomaso in covering litigation for The Lawbook.
“Michelle’s tremendous experience and knowledge in covering Texas courts will mean The Lawbook will provide our readers with more breaking news stories and more in-depth coverage of litigation trends and personalities than ever before at any news publication in Texas,” said Posgate. “Michelle is a highly respected and gifted reporter and we are greatly pleased to be working with her now as a colleague rather than against her as a competitor.”
Fifth Circuit Invites Constitutional Challenges to SEC’s ‘No Admit, No Deny’ Policy
A handful of Fifth Circuit judges seem to have it out for the U.S. Securities and Exchange Commission and “the agency’s current activism.” Two judges issued a concurring opinion that clearly invites defendants being accused of financial fraud to challenge the SEC’s use of “no admit, no deny” settlement agreements. “If you want to settle, SEC’s policy says, ‘Hold your tongue, and don’t say anything truthful – ever’ — or get bankrupted by having to continue litigating with the SEC,” Judge Edith Jones wrote. “A more effective prior restraint is hard to imagine.”
The Texas Lawbook has insight from several legal experts who say they understand Judge Jones’ concerns but say eliminating the “no admit, no deny” provisions in settlements would cause tremendous upheaval in the system and place defendants at an even bigger disadvantage in their negotiations with the federal agency.
Law Experts: Firms Need to Take TX Freedom Caucus Threats on Abortion Assistance Seriously
Corporate law firms should not ignore nor routinely dismiss threats made last week by Texas Republican legislators that they will punish law partners who fund travel for Texas employees who go to other states to have abortions. Leading academic experts who studied the Texas Freedom Caucus letter to Sidley say law firms “should treat this like any other legal challenge” and “throw all the resources and knowledge they have … to analyze any potential legal risk than a collection of legislators who don’t seem to understand what the law is or how the law works.”
Texas Law Firms Gird for Battle Against GOP Leaders’ Threats for Providing Abortion Options to Employees
A handful of conservative Republicans are threatening corporate law firms operating in Texas with criminal prosecution, civil sanctions and even disbarment if they play any role in their Texas employees going out of state to get abortions. Texas Freedom Caucus accuses the global law firm Sidley Austin of being “complicit in illegal abortions” and assert the “consequences that you and your colleagues will face for these actions.” But leaders at several law firms tell The Texas Lawbook that the threats are “extreme political debauchery and legally dubious.”
Wave of Lateral Moves Hits Texas Legal Market
Willkie Farr, Greenberg Traurig, McKool Smith, Munck Wilson, Perkins Coie, Blank Rome, Womble and Eversheds Sutherland announced new lateral partner hires this week in their Texas offices. The nine lawyers on the move came from Baker Botts, King & Spalding, Winstead, Norton Rose Fulbright, Gray Reed, Shore Chan and in-house.