December 7, 2023


Advocacy. Mediation. Success.

Conflicts News — Heated Hot Potato Argument, Judicial Stock Conflict ($4k versus $2.7b), Entertainment Denied

&#8220Cisco wins reversal of $2.75 bln damages award mainly because judge&#8217s wife owned inventory&#8221 &#8212

  • &#8220A U.S. appeals court on Thursday threw out a far more than $2.75 billion award versus Cisco Methods Inc , declaring the demo judge must have disqualified himself right after discovering that his spouse owned Cisco inventory.&#8221
  • &#8220The demo decide, U.S. District Decide Henry Morgan in Norfolk, Virginia, observed Cisco liable for patent infringement in October 2020, two months after understanding that his wife owned 100 Cisco shares worth $4,688.&#8221
  • &#8220Morgan later put the shares in a blind believe in, and advised the parties that the shares &#8216did not and could not have motivated&#8217 his managing of the scenario.&#8221
  • &#8220But the Washington, D.C.-based mostly appeals court stated a blind have faith in was not the very same as offering the shares, and it did not make a difference that San Jose, California-based mostly Cisco experienced missing.&#8221
  • &#8220The court purchased the circumstance reassigned to one more choose, due to the fact allowing Morgan keep on risked undermining general public self confidence in the judicial procedure.&#8221
  • &#8220Judicial independence attracted renewed interest final calendar year right after the Wall Road Journal reported 131 federal judges violated federal legislation by listening to 685 lawsuits given that 2010 involving providers wherever they or their people owned stock.&#8221
  • &#8220&#8216The judiciary requires this matter very seriously,&#8217 U.S. Supreme Court docket Chief Justice John Roberts wrote in his 2021 year-stop report. &#8216We hope judges to adhere to the best benchmarks, and those people judges violated an ethics rule.’&#8221

&#8220Fox Rothschild Calls Conflict Allegation A &#8216Tall Tale&#8216&#8221 &#8212

  • &#8220Fox Rothschild attorneys representing aggrieved investors in a professional athlete startup asked a New York federal choose Tuesday to reject a &#8216clear&#8217 try to manufacture a conflict and an look of impropriety.&#8221
  • &#8220Whilst just one of the defendants in the scenario, GlassBridge Enterprises Inc., is a former Fox consumer, the firm&#8217s function was concentrated on pension prepare negotiations and experienced absolutely nothing to do with the current litigation, Cypress said. Furthermore, that work was completed approximately two a long time prior to the latest suit was filed. Throughout that time period, GlassBridge has also not claimed that the business had confidential info associated to GlassBridge&#8217s investment in a startup recognized as SportBLX, which is the target of the present-day circumstance.&#8221
  • &#8220&#8216Critically, as Fox&#8217s relationship with GlassBridge formally terminated in November 2021 — extra than a 12 months just after Fox very last carried out perform for GlassBridge — it is undisputed that Fox did not signify GlassBridge in connection with its securities manipulation, tortious interference with agreement and illegal carry out&#8217 that is the issue of Cypress&#8217 claims, the filing states.&#8221
  • &#8220New York-dependent SportBLX experienced sought to &#8216tokenize&#8217 and trade in skilled athletes by a blockchain system that the firm would produce.&#8221
  • &#8220In a Might disqualification movement, Glassbridge stated it experienced furnished its Fox Rothschild law firm, Pamela Thein, details about its valuation and assessments of the Activity-BLX expenditure so that the agency could advocate to include things like those assets in a proposed settlement agreement. In a 2nd aspect of the illustration, other Fox legal professionals also assisted in negotiating decreased insurance policy premiums.&#8221
  • &#8220But in mid-2019, GlassBridge gained a demand from customers letter from Fox Rothschild boasting that Cypress, another Fox consumer, &#8216supposed to sue Activity-BLX, which would have specifically afflicted GlassBridge&#8217s pursuits in Sport-BLX.&#8217 Fox afterwards certain the firm that it would not be included in the accommodate, but then &#8216disengaged GlassBridge like a incredibly hot potato&#8217 and sued in any case, the corporation said.&#8221
  • &#8220&#8216GlassBridge is getting pressured to defend by itself in a lawsuit brought by its previous regulation agency primarily based on the extremely confidences that it delivered Fox Rothschild through at least two prior representations,&#8217 the enterprise reported.&#8221

Hat idea to Nigel Riley, basic supervisor of danger and compliance solutions at Intapp, for sending this attention-grabbing 1 my way: &#8220Recreation over? Plaintiffs&#8217 legal professionals banned from Madison Square Backyard by MSG&#8221 &#8212

  • &#8220The billionaire household that owns majority stakes in the New York Knicks, New York Rangers and the teams&#8217 arena, Madison Sq. Back garden, has hardly ever been shy about managing obtain to the venues in its empire&#8230 But MSG has escalated its accessibility match: It is now using bans from its venues as a litigation tactic.&#8221
  • &#8220At minimum two shareholder corporations engaged in litigation above the 2021 merger of Madison Sq. Back garden Enjoyment Corp and MSG Networks Inc have gained letters from an MSG attorney advising that they are barred from coming into Madison Square Backyard garden, Radio City Songs Hall, the Beacon Theatre and other MSG venues right until the shareholder fits are settled.&#8221
  • &#8220The justification? Experienced carry out principles prohibiting contact involving shareholder legal professionals and MSG staff members, the letter mentioned. (Reuters acquired a duplicate.)&#8221
  • &#8220&#8216Since of the adversarial character inherent in litigation proceedings, and mainly because of the probable for get in touch with with the company’s workers and disclosure outside appropriate litigation discovery channels that could outcome from the existence of any of your firm’s legal professionals at the company’s venues, neither you, nor any other attorney utilized at your firm, may possibly enter the company’s venues,&#8217 wrote Hal Weidenfeld, an in-property attorney for MSG Leisure, in a June 24 letter to shareholder attorney Joel Fleming of Block & Leviton.&#8221
  • &#8220The suit contends that the Dolan loved ones, which controls all of the several items of the MSG empire, compelled through a offer that was detrimental to MSG Amusement shareholders in get to increase the family’s financial and voting stake in the put together entity.&#8221
  • &#8220The business mentioned the new plan might be &#8216disappointing&#8217 to some of the now-banned plaintiffs&#8217 attorneys, but that is just an unlucky consequence of &#8216our need to defend in opposition to incorrect disclosure and discovery.&#8217 The attorneys will be welcomed again, the assertion explained, when their circumstances from MSG entities are resolved.&#8221
  • &#8220&#8216We’re a organization whole of Celtics lovers,&#8217 Fleming stated. &#8216If we want to view the Knicks get rid of, it is a good deal more pleasurable to see it occur at TD Yard.’&#8221

Curious, I had a seem to see what other gatherings the MSG ban blocks these legal professionals from attending. Alas, they will be restricted from upcoming acts together with: Billy Joel, Michael Buble, and Rage In opposition to the Equipment&#8230

(Could just one argue that it would be professionally prudent for these attorneys to preserve their distances even soon after litigation is concluded? They may well want to stay away from even the overall look of impropriety&#8230 whispers that it was the lure of the future Hanson concert, Tom Jones, or Doobie Brothers 50th Anniversary Tour that introduced them to the negotiating table? I&#8217ll permit the ethics professionals ponder that one particular&#8230)