Providing accurate, timely, and insightful legal commentary
Connectiuct Business Litigation Blog
Commentary on lawsuits and legal issues impacting Connecticut businesses. Authored by experienced business litigation attorney, Kane Bennett of Aeton Law Partners, LLP.
Business Litigation Roundup
As we head to the new year, here is a round up from some fellow bloggers on contracts, cobra, wage disputes, patents, and oral agreements for limited liability companies. The California Business Lawyer Blog offers a very detailed post about contractual relationships between manufacturers and suppliers. The focus is on well drafted agreements eliminating the fears and concerns of both sides. A lot of talk about the AT&T suits in different states for $1 billion dollars for unpaid overtime. The suits picked up a lot of steam with a recent employee favorable ruling from the federal court in Connecticut allowing the claim to proceed as a class action. Rush on Business covers some tips for businesses to avoid these suits. Just in time for Christmas, President Obama has extended the COBRA subsidy. Dan Schwartz’s Connecticut Employment Law Blog covers this topic in detail for employers. Twin Cities Business Litigation Blog has an interesting post on concerns you might have as a shareholder of corporation that fails to follow corporate formalities. Gavin Craig gives examples of how a shareholder could be exposed to liability. Anyone who frequently litigates matters involving limited liability companies will tell you that there is not much case law out there in Connecticut. It is still a developing area of the common law. Delaware law is often a good option for law in this area because these issues are more frequently litigated by volume in Delaware. A good resource is the Delaware Corporate and Commercial Litigation Blog. Two recent posts concerning oral partnerships and LLC agreements are just an example. PatentlyO
Just In Time For Christmas – – Lawsuits, Snowball Fights, and Michael Bolton
Here’s some humor for the holidays: A very funny post from Faces of Lawsuit Abuse.org. It is a 2009 poll of the most ridiculous lawsuits of the year. My vote was for the April winner: "Tourist sues New York club after she slipped while dancing on top of the bar." (story here). The judge carefully examined the facts and made his ruling according to simple math: drunk + dancing + wet bar = case dismissed. "You dont bring a gun to a snowball fight," brought to you by one of my favorites Above the Law, a legal tabloid. This is now a viral holiday story about a snowball fight between a lawyer and a police officer. Who do you think wins that fight? Read the lawyer’s take here, and to make your own decision, check out the video. Inmates do not like Christmas music, but judges do! According to the Phoenix news blog, the Maricopa County Sheriff has won its fifth lawsuit from inmates related to playing Christmas tunes in county jails. My guess is they were playing Michael Bolton’s Christmas album, which has made a few "worst album ever" lists for christmas songs. Look for an appeal based on cruel and unusual punishment. Riskvue, a website for risk management professionals, has a detailed post on holiday party disasters and how to avoid them. The Denver Business Journal says "Don’t let Your Holiday Party Become A New Year’s Lawsuit." What is it about drinking at an office party and the photocopier? For some funny videos, check out YouTube "holiday
Are Settlement Agreements Enforceable In Connecticut
The short answer is that it depends. Settlement agreements are generally enforceable if the terms of the agreement are clear and authorized by the litigants or parties to the litigation. In Gengaro v. City of New Haven (to be officially released December 29th), the Appellate Court had another opportunity to comment on the long standing law in Connecticut that "a compromise agreement . . . if free from fraud, mistake or undue influence . . . is conclusive between the parties." In Gengaro, a trial court granted summary judgment in favor of the City concerning employment claims because Gengaro had signed a confidential settlement agreement prior to the lawsuit. Gengaro claimed he was forced to so sign the agreement because of threats of losing his job. He claimed undue influence to attempt to invalidate the settlement agreement. Gengaro claimed that he had serious financial and medical problems. Coupled with the threat of job loss, he claimed that he had no reasonable alternative but to agree to the settlement. The trial court granted summary judgment finding insufficient issues of fact concerning undue influence. Essentially, the court concluded that the threat of losing his job was not sufficient for the exercise of undue influence. The Appellate Court agreed. For a good analysis of what employers should to to avoid these type of claims check of the Connecticut Employment Law Blog post on the case. To establish undue influence in Connecticut, four elements must be established: a person is who is subject to influence an opportunity to exert undue influence a
Connecticut Guaranty Fund Offers Some Recovery For Homeowners Harmed By Construction Contractors
Recently,the Attorney General’s office announced another criminal conviction against a home improvement contractor responsible for many failed home improvement contracts. The report also indicated that the homeowner consumers were going to get some financial relief from the Home Improvement Guaranty Fund (HIGF). The HIGF offers up to $15,000 in relief to consumers who meet certain conditions including: failed contract with a register contractor contract was for residential dwelling you must first obtain a court judgment against the contractor you must take reasonable steps to enforce the judgment without success Any consumer who meets this criteria can file an application that is posted online. This applies to home improvements, not new construction. Consumers of new home construction in Connecticut can apply to the New Home Guaranty Fund (NHGF) for up to $30,000 in relief. The same basic criteria apply here, but the fund involves new home construction contracts. Many times, when a contractor goes bankrupt or has no assets, the HIGF and NHGF are the only source of recovery for consumers that were victim of defective or negligent construction for new construction and home improvements. When a consumer decides to bring a lawsuit against a contractor, the first questions asked should be whether the contractor has assets to pay any judgment. If not, the funds may be the only realistic option for recovery Of course, the goal is for homeowners to find their way to the many reputable contractors in Connecticut to avoid this type of problem. Reputable contractors will urge consumers to look
Health Net’s Data Loss In Connecticut Was Theft
Attorney General Richard Blumenthal issued a scathing press release related to Health Net’s recent data loss and security breach. Blumenthal called Health Net’s story on it "sanitized" and its six month delay in reporting "unconscionable." Blumenthal called for a federal investigation and intensified state efforts because of the sensitive financial and health information at risk for exposure. Health Net is based in Shelton, Connecticut and is one of the largest health plans in the Northeast serving approximately 580,000 members. A report by Lucas Mearian of Computerworld stated that the information stolen was a portable hard drive that had not been encrypted. Proper encryption could have prevented access of the information. Connecticut consumers have been affected by the data loss and more than a million people had social security numbers and financial and medical information exposed. Consumers in Arizona, New Jersey, and New York also had sensitive information exposed. Thus far, there has been no report of identity theft or misuse of the information.
Breach of Fiduciary Duty In Connecticut
Here is a quick summary of another of the so called "business torts" in Connecticut known as breach of fiduciary duty. A fiduciary duty can arise in a number of contexts in business including relationships with partners, lawyers, accountants, trustees, investment advisers, brokers and employees. When one party in a relationship is a fiduciary, it requires the party to act with the utmost good faith, fair dealing and loyalty. Many times, breach of fiduciary lawsuits are filed in Connecticut when the relationship breaks down over lost or mismanaged money. Frequently, business partners are also found to be fiduciaries with respect to each other. A fiduciary relationship may be formed when the following factors exist: unique degree of trust and confidence between the parties one party has superior knowledge and skill the party with superior knowledge has a duty to represent the interests of the other part Connecticut’s common law on breach of fiduciary duty law is flexible in that it will not exclude new situations, but is also clear that not all business relationships are fiduciary relationships. For example, courts will not recognize a fiduciary relationship for parties that are dealing at arm’s length for transactions. This is because the relationship lacks a dominance by one party or dependence by the other, or the lack of a special relationship. The legal recognition of a fiduciary relationship is very significant in a lawsuit in Connecticut. If a plaintiff proves that a fiduciary relationship exists, the standard and burden of proof changes. A plaintiff has to prove that a
About CTBL
Connecticut Business Litigation is the most well-read litigation blog in the state of Connecticut. Founded by Attorney Kane Bennett in 2009, a pioneer in Attorney Marketing in the state of connecticut