Commercial Courtwatch | Week of 12/3/23

Chronicling business litigation from the Federal Courts of Appeals and Delaware

Insurance | No coverage for industrial service company for $222M verdict because company didn’t step into shoes of other subcontractor after its parent acquired previous subcontractor, Tenth Circuit hold. 

Class Actions | Approval of Mercedes-Benz paint defect class action not abuse of discretion even though 80% of class not receive any benefit because the district court’s review process sound, per Eleventh Circuit. 

Class Actions | CAFA’s “securities-related” exemption deprived federal court of jurisdiction over state court suit alleging breach of fiduciary duty to shareholders, per Second Circuit. 

MDLs | Ninth Circuit affirms dismissal of fraud and unfair conduct claims for Intel’s failure to disclose design defects due to poor pleading. 

Arbitration | Second Circuit reverses denial of motion to compel arbitration because consumer was on “inquiry notice” of whether an arbitration clause governed her contract. 

Arbitration | Coinbase’s arbitration delegation clause not unconscionable, and district court erred in holding otherwise, Ninth Circuit holds. 

Patents | Statutory requirement for PTAB to issue decision within 1 year no jurisdictional, and remedy for failure to issue is mandamus, per Federal Circuit in dispute between Purdue and Collegium Pharma. 

Patents | Federal Circuit vacates VLSI’s $2.2 B verdict against Intel. 

Securities | Former spouse may have claim to asset purchased by husband with illicit funds because childcare may count as consideration for the asset, First Circuit holds. 

Securities | Disclosing that a risk that’s already occurred “could” occur can support securities fraud claim, Ninth Circuit holds.