Hospitality

  • February 26, 2024

    Catching Up With Delaware's Chancery Court

    Delaware's Court of Chancery dropped two potentially far-reaching decisions last week: one about founder control at Moelis & Co. and another about TripAdvisor's planned move to Nevada. On top of that, there were new cases involving Citrix Systems, Alcoa Corp., BGC Partners Inc. and Cantor Fitzgerald LP.

  • February 26, 2024

    Burford, Sysco Object To Nixed Swap In Price-Fixing Suits

    Restaurant food distributor Sysco and a Burford Capital affiliate both objected to a federal magistrate judge's decision not to allow the affiliate to replace Sysco in sprawling price-fixing lawsuits against pork and beef producers, asserting that the denial contravenes civil procedure rules and public policy.

  • February 23, 2024

    Restaurants Blast 'Fatal Flaws' In Chicken Price-Fix Deal

    Boston Market and other restaurants objecting to Simmons Foods' $8 million chicken price-fixing settlement with direct purchasers say the Seventh Circuit should unwind the deal because it improperly releases bid-rigging claims for no consideration and turns the massive two-track case on its head.

  • February 23, 2024

    Balloon Co. Blew Up Appeal Of Fraud Verdict, 1st Circ. Says

    A bid from the owner of a defunct balloon company to set aside an already-reduced jury award won't fly, the First Circuit has concluded, finding that the company's own acknowledgment about transferred funds "dooms their appeal."

  • February 23, 2024

    Trade Group Tells NC Justices COVID-19 Losses Not Covered

    A dozen North Carolina eateries are not owed coverage for pandemic-related losses, the American Property Casualty Insurance Association told the state's highest court, saying the policies at issue were never intended to cover economic damages "untethered" to physical loss or damage.

  • February 23, 2024

    With Interest, Trump Now Owes $454M For NY Valuation Fraud

    Donald Trump owes New York state nearly a half billion dollars after a county clerk on Friday tacked on $99 million in interest linked to a $355 million judgment in the state attorney general's civil fraud case against the former president last week.

  • February 23, 2024

    Staffing Co. To Pay $1.75M, Reclassify Workers In Calif. Deal

    An online shift-booking platform for hotel and restaurant workers will pay $1.75 million to end claims by San Francisco's city attorney and the state of California that it engaged in wage theft by misclassifying thousands of jobs in the hospitality industry, according to court papers. 

  • February 23, 2024

    Workers Snag Partial Win On Tip Notice Dispute With Denny's

    It is unclear whether 10 members of a collective in a suit against diner chain Denny's received a tip credit notice, a Pennsylvania federal judge ruled, nevertheless granting an early win to the other workers claiming defective tip credit notices.

  • February 22, 2024

    No Partnership In Hot Dog Eatery Deal, NC Court Rules

    A restaurateur has beaten a lawsuit that alleged he jilted an associate in a deal to buy hot dog eateries, with North Carolina's business court reasoning the two never had a legally binding partnership.

  • February 22, 2024

    DraftKings Says Ex-Exec's $310K Attys Fees Bid Is Excessive

    DraftKings has told a California federal court that the "whopping" $310,000 in attorney fees requested by a former executive after the company shuffled the case back and forth between state and federal court is an unreasonable fee no "reasonable client" would pay.

  • February 22, 2024

    Scammer Who Did Time In Google Fraud Admits To 2nd Caper

    A Dutch citizen who previously served time for a scam involving fake, early-issue Google shares copped Thursday in Manhattan federal court to a new fraud caper, after prosecutors said he tricked an investor by dangling a fake Airbnb Inc. equity stake.

  • February 21, 2024

    Judge Rejects $5.2M Atty Fee Bid In Poultry Farm Loan Suit

    A New York federal judge rebuffed attorneys' attempt to collect a nearly $5.2 million fee for representing an affiliate of two billionaire brothers that accused an investment adviser of fraudulently inducing the affiliate to provide a loan for a Russian poultry operation, saying the adviser wasn't improperly defending himself.

  • February 21, 2024

    Restaurant Software Co.'s $9M Investor Deal Gets 1st OK

    Shareholders in restaurant digital commerce software company Olo Inc. have received an initial green light for a $9 million deal to settle class action claims the company touted a soon-to-end partnership with fast-food chain Subway as an example of its success.

  • February 21, 2024

    Irish Pub Chain's Ex-CFO Gets 1.5 Years For $1M Tax Fraud

    The former chief financial officer of a pub chain with more than a dozen Irish-themed restaurants was sentenced to one and a half years in prison Wednesday by an Ohio federal court for his role in a bookkeeping scheme that defrauded eight states of $1 million in sales taxes.

  • February 21, 2024

    CoStar, Hotel Giants Accused Of Data-Driven Price-Fixing

    Hilton, Hyatt and other big name hotel operators are the target of a proposed class action alleging they colluded with hospitality industry analytics firm CoStar Group Inc. to fix prices in luxury hotel markets in Seattle and other major U.S. cities, according to a suit filed in Washington federal court.

  • February 21, 2024

    Dubious Of Peak Season Claims, Judge Nixes Lodge's H-2B App

    A U.S. Department of Labor judge has rejected a South Dakota hunting lodge's efforts to hire six seasonal housekeepers for hunting season, saying the work hours logged in its payroll reports undermine claims of a "crushing" need during the early part of the season.

  • February 21, 2024

    Chipotle Swaps Gift Cards For 'Worthless' Vouchers, Suit Says

    A Chipotle customer hit the fast-food chain with a proposed class action in California federal court Tuesday, alleging the company is unjustly making hundreds of thousands of dollars by refusing to refund orders made with gift cards and instead offering disgruntled customers vouchers so limited that they're effectively "worthless."

  • February 21, 2024

    1st Circ. Won't Revive $19M Casino Deal Suit Against Wynn

    The First Circuit affirmed the dismissal of a real estate executive's suit claiming Wynn Resorts reneged on a handshake deal to pay him $19 million for helping it obtain a casino license, pointing to an opinion from Massachusetts' top appellate court saying the agreement is unenforceable on public policy grounds.

  • February 21, 2024

    Atlantic City Hotels Want Room Rate Suit Tossed

    Atlantic City casinos said on Tuesday a suit alleging they conspired to inflate room rates should be tossed, arguing it doesn't show there was any kind of agreement between the casinos and that its claims are partially time-barred.

  • February 21, 2024

    Cruise Line Hornblower Hits Ch. 11 With Over $1B Debt

    Cruise line and ferry service Hornblower Group Inc. and affiliates on Wednesday filed for Chapter 11 bankruptcy protection in Texas with a plan to cut $720 million from its more than $1 billion of debt through a deal that will hand majority control to private equity firm Strategic Value Partners.

  • February 20, 2024

    Fla. Gaming Pact Not Allowed Under Federal Law, Expert Says

    A Miami law school adjunct professor supporting a pair of casinos seeking to undo the Seminole Tribe of Florida's gaming agreement authorizing online sports betting has urged the U.S. Supreme Court to hear the establishments' case or reverse a lower court decision, saying the pact violates the Indian Gaming Regulatory Act.

  • February 20, 2024

    7th Circ. Backs McDonald's Win Over 'Bad Faith' Hot Tea Suit

    The Seventh Circuit on Tuesday ruled that a lower court correctly tossed a man's $13 million "bad faith" lawsuit alleging he was burned by a McDonald's worker in Illinois who threw hot tea at him.

  • February 20, 2024

    Ill. Judge Scolds Defense Attys On Discovery: 'This Is Insanity'

    A Cook County judge trimmed a lawsuit Tuesday brought by investors alleging financial mismanagement of the firm behind celebrated Chicago restaurant Maple & Ash, but lambasted defense counsel for dragging out discovery, saying she was "flabbergasted" that they left out information in discovery responses that she ordered them to include late last year.

  • February 20, 2024

    Casinos Say 'Unique' Policy Should Cover $130M COVID Loss

    A casino operator with properties on the Las Vegas Strip and beyond told a Nevada federal court that its "unique" all-risk insurance is the broadest available coverage and should pay for $130 million in business interruption losses caused by the COVID-19 pandemic.

  • February 20, 2024

    Eateries' Virus Losses Not Covered, Insurer Tells NC Justices

    Cincinnati Insurance Co. urged the North Carolina Supreme Court to affirm its win in a dispute with more than a dozen eateries over coverage for pandemic-related losses, saying government shutdown orders do not constitute direct physical loss or damage required to trigger coverage.

Expert Analysis

  • Calif. Whistleblower Decision Signals Change For Employers

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    Because the California Supreme Court's recent The People v. Kolla's decision significantly expands employee whistleblower protections, employers should ensure that internal reporting procedures clearly communicate the appropriate methods of reporting and elevating suspected violations of law, say Alison Tsao and Sophia Jimenez at CDF Labor Law.

  • Opinion

    Appellate Funding Disclosure: No Mandate Is Right Choice

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    The Advisory Committee on Appellate Rules' recent decision, forgoing a mandatory disclosure rule for litigation funding in federal appeals, is prudent, as third-party funding is only involved in a minuscule number of federal cases, and courts have ample authority to obtain funding information if necessary, says Stewart Ackerly at Statera Capital.

  • Avoiding Negative Tax Consequences In Loan Modifications

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    Borrowers who may be caught in the dramatic uptick in nonperforming commercial real estate loans should consider strategies to avoid income and capital gains tax that may be triggered by loan modifications, says Aman Badyal at Glaser Weil.

  • How Attys Can Avoid Exposing Their Firms To Cyberattacks

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    Attorneys are the weakest link in their firms' cyberdefenses because hackers often exploit the gap between individuals’ work and personal cybersecurity habits, but there are some steps lawyers can take to reduce the risks they create for their employers, say Mark Hurley and Carmine Cicalese at Digital Privacy & Protection.

  • Virginia 'Rocket Docket' Slowdown Is Likely A Blip

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    After being the fastest or second-fastest federal civil trial court for 14 straight years, the Eastern District of Virginia has slid to 18th place, but the rocket docket’s statistical tumble doesn't mean the district no longer maintains a speedy civil docket, says Robert Tata at Hunton.

  • 'Varsity Blues' Reversal May Inform Conspiracy Defenses

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    The First Circuit’s recent decision vacating the convictions of two “Varsity Blues” defendants provides potential support for creative arguments against conspiracy charges, particularly where defense counsel can show competition or indifference among alleged co-conspirators, say Cormac Connor and Emily Mikes at Husch Blackwell.

  • 5 Management Tips To Keep Law Firm Merger Talks Moving

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    Many law firm mergers that make solid business sense still fall apart due to the costs and frustrations of inefficient negotiations, but firm managers can increase the chance of success by effectively planning and executing merger discussions, say Lisa Smith and Kristin Stark at Fairfax Associates.

  • Rethinking In-Office Attendance For Associate Retention

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    The hybrid office attendance model doesn't work for all employees, but it does for many — and balancing these two groups is important for associate retention and maintaining a BigLaw firm culture that supports all attorneys, says Summer Eberhard at Major Lindsey.

  • Hospitality Biz Must Prep For Seaweed Damage Coverage

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    With the Great Atlantic Sargassum Seaweed Belt, a 10-million-ton mass of brown seaweed, potentially about to approach the coasts of the U.S. Southeast, Puerto Rico and the Caribbean, affected policyholders should consider whether their losses are covered by their property insurance policies, say attorneys at Pillsbury.

  • Murdaugh Trials Offer Law Firms Fraud Prevention Reminders

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    As the fraud case against Alex Murdaugh continues to play out, the evidence and narrative presented at his murder trial earlier this year may provide lessons for law firms on implementing robust internal controls that can detect and prevent similar kinds of fraud, say Travis Casner and Helga Zauner at Weaver and Tidwell.

  • Firm Tips For Helping New Lawyers Succeed Post-Pandemic

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    Ten steps can help firms significantly enhance the experience of attorneys who started their careers in the coronavirus pandemic era, including facilitating opportunities for cross-firm connection, which can ultimately help build momentum for business development, says Lana Manganiello at Equinox Strategy Partners.

  • Prepping Your Business Ahead Of Affirmative Action Ruling

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    The U.S. Supreme Court's upcoming ruling on whether race should play a role in college admissions could potentially end affirmative action, and companies will need a considered approach to these circumstances that protects their brand power and future profits, and be prepared to answer tough questions, say Nadine Blackburn at United Minds and Eric Blankenbaker at Weber Shandwick.

  • Tackling Judge-Shopping Concerns While Honoring Localism

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    As the debate continues over judge-shopping and case assignments in federal court, policymakers should look to a hybrid model that preserves the benefits of localism for those cases that warrant it, while preventing the appearance of judge-shopping for cases of a more national or widespread character, says Joshua Sohn at the U.S. Department of Justice.

  • Perspectives

    How Attorneys Can Help Combat Anti-Asian Hate

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    Amid an exponential increase in violence against Asian American and Pacific Islander communities, unique obstacles stand in the way of accountability and justice — but lawyers can effect powerful change by raising awareness, offering legal representation, advocating for victims’ rights and more, say attorneys at Gibson Dunn.

  • Opinion

    Congress Needs To Enact A Federal Anti-SLAPP Statute

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    Although many states have passed statutes meant to prevent individuals or entities from filing strategic lawsuits against public participation, other states have not, so it's time for Congress to enact a federal statute to ensure that free speech and petitioning rights are uniformly protected nationwide in federal court, say attorneys at Skadden.

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