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March 2017 Archives

T. Rowe's $388M Mutual Fund Fee Suit Continues in Maryland

In our article, "Do Actively Managed Funds Breach Fiduciary Duties?" we outlined the role of an entity or person who handles investments (a fiduciary) and the fiduciary duty the law provides to protect investors. Although that article discussed fiduciary duties in the context of retirement plans, these obligations are not limited to those with pensions and 401(k)s.

Islands' $2.7M Settlement Gets Skeptical Stamp of Approval

In March 2011, Jonathan Chambless ("Chambless") accused a hamburger chain restaurant with over 50 locations, Islands Restaurants LP ("Islands"), of violating California wage and hour laws by denying employees mandated rest breaks. However, because of personal reasons, Chambless withdrew from the case and Kathryn Jacoby ("Jacoby") became the named plaintiff.

Chrysler Customers Argue NY Jurisdiction is Appropriate

A putative class of Dodge and Chrysler owners have filed a complaint in New York against the car conglomerate, Fiat Chrysler or FCA US LLC ("FCA"), for allegedly hiding a tire defect in Chrysler Town and Country minivans, Dodge Grand Caravan minivans, and Jeep Liberty and Dodge Journey SUVs. However, FCA argued, in its motion to dismiss, that almost none of the named plaintiffs had bought their cars in New York. The one plaintiff who had purchased in New York was also involved in a similar suit that already surpassed dismissal, which caused him, FCA argued, to be a "fraudulent joinder." Therefore, FCA urged the court to dismiss the tire defect claims because New York was the inappropriate court for the plaintiffs to file their lawsuit.

Male-versus-female wage disparities: increased scrutiny

Perhaps you're a female employee in an industry where companies pay full value for good workers, without regard to gender. That is of course only logical and how things should be in the American workplace, with no exceptions ever being made that harm women because they're … women.

Ford Faces Putative Class Action for Un-lockable Truck Doors

Ford Motor Co. ("Ford") has been served with a putative class action lawsuit because its F-150 pickup trucks are allegedly not meeting "Ford Tough" expectations. A New York state F-150 truck owner, Brandon Kommer ("Kommer"), claims his truck's doors fail to close and lock during below-freezing temperatures. With multiple nearly identical experiences of this issue published in online forums, Kommer brought forth his complaint on behalf of all New York owners or lessees of this vehicle model for the years 2015 through 2017.

Constellis ERISA Results in a $30 Million Judgement

Employers can offer a wide range of retirement benefits to their employees. Most commonly, employees receive a retirement plan such as a pension or 401(k). Another type of retirement benefit is an Employee Stock Ownership Plan ("ESOP"), which is a program that provides employees with an ownership interest in their company, and like pensions and 401(k)'s, is regulated by the Employee Retirement Income Security Act ("ERISA").

Connecticut courts' scrutiny of a restrictive employment covenant

In today's blog entry, we zero in on the above heading's reference to restrictive covenants from the comparatively narrow focus of so-called "noncompete agreements," which can occasionally comprise the central subject matter for a Connecticut court in a business litigation dispute.

Holy Cross Hospital Settles ERISA Suit for $4M

In June 2016, Corinne Butler ("Butler") and Andrea Fitzsimmons ("Fitzsimmons"), former employees of Holy Cross Hospital ("Holy Cross"), filed a lawsuit against their employer alleging it underfunded their pension plan by $31 million and terminated the plan in violation of the Employee Retirement Income Security Act ("ERISA"). Butler and Fitzsimmons demanded their pension plan be reinstated and properly funded on behalf of 2,000 Holy Cross employees.

Bahamas Company Argues New York Lacks Jurisdiction

In our article, "Supreme Court Framework for Extraterritorial Cases," we analyzed the requirements international cases face before being tried under United States laws, such as the requirement that the "focus" of the relevant statute pertain to regulating foreign organizations. However, finding the proper jurisdiction is the first hurdle an international lawsuit must overcome before proceeding in the U.S.