Maryland
News» Business Acquisition Agreements – Arbitration
In Essex Corp. v. Susan Katharine Tate Burrowbridge, LLC, in which the sellers of a business sued the buyer to resolve a dispute regarding the proper interpretation of an earn-out clause in the parties' acquisition agreement, the Court of Special Appeals has held (i) that the purchaser was entitled to appeal from a lower's court's denial of its motion to compel arbitration of the dispute and (ii) that the acquisition agreement required the dispute to be resolved in arbitration rather than in court.
» Americans with Disabilities Act – Punitive Damages
In EEOC v. Federal Express Corp., the United States Court of Appeals for the Fourth Circuit, whose jurisdiction includes Maryland, has upheld a jury verdict which imposed a $100,000 punitive damage award upon FedEx for its failure to reasonably accommodate a deaf employee who needed assistance from an American Sign Language interpreter to perform his job duties.
» Powers of Attorney; Confidential Relationships
In Figgins v. Cochrane, the Court of Appeals has deemed ineffective a deed by which Figgins, acting as her father's attorney-in-fact pursuant to a durable power of attorney, transferred her father's residence to herself. It thus upheld a trial court's determination that there existed between Figgins and her father a "confidential relationship" which created a presumption that the conveyance was not fair and that Figgins had failed to produce evidence rebutting that presumption. It also affirmed the trial court's finding that the conveyance was not legitimized by a provision in the power of attorney which authorized Figgins to make gifts to herself so long as she considered certain identified factors, such as the nature and extent of her father's assets, tax issues, and the costs of any long-term care that her father might need. The Court agreed with the trial court that, before making the purported gift, Figgins had not considered those factors.
» Option Contracts
In Elderkin v. Carroll, the Court of Appeals has provided a thorough discussion of the legal principles applicable to option contracts in the course of interpreting an agreement which stated that Carroll could exercise an option to purchase certain land owned by the Elderkin family by delivering to them a signed purchase agreement and a $50,000 deposit. The Court held that various attempts by Carroll to exercise the option by delivering a signed purchase agreement without the deposit did not constitute exercise of the option.
National
News» Noncompetition Agreements – Clauses Extending Duration for Violations
In H&R Block Eastern Enterprises, Inc. v. Swenson, a Wisconsin appellate court has deemed unenforceable a tax service's noncompetition agreement which stated that the two year period during which a departing employee was prohibited from serving the firm's clients would be "extended by any period(s) of violation." The court reasoned (i) that given the difficulty of determining how long a particular violation lasted, this language made it difficult for the departing employee to "tell from the terms of his or her contract how long the extension will be for particular conduct in violation" and (ii) that because legitimate disputes might occur relative to whether a violation had occurred, the employee would not know until after a court resolved a dispute whether the length of the covenant would be extended, thus making the duration of the covenant a "time period that is contingent upon outcomes the employee cannot predict."
» Family and Medical Leave Act – Proposed Revisions to Regulations; New Forms of Leave
The U.S. Department of Labor has published proposed revisions to the regulations which enforce the Family and Medical Leave Act of 1993. Also, on January 28, President Bush signed into law the National Defense Authorization Act, which, effective immediately, creates two new forms of FMLA leave: (i) 12 weeks of leave for "immediate family members" of military service members who suffer a "qualifying exigency" as a result of being on active duty or having been notified of an impending call to active duty, and (ii) up to 26 weeks of leave for an individual that is caring for a member of the Armed Forces who is undergoing medical treatment for, or recuperating from, a serious injury or illness incurred during military service. More info...
» Workplace Privacy – Non-Business Communications
In Scott v. Beth Israel Medical Centers Inc., a New York court has ruled that a hospital was legally entitled to review e-mail communications in which one of its physician employees engaged with his personal attorney on the hospital's computer system, since a written hospital policy stated that all computer, voice, and electronic systems were to be used for business purposes only and that no employee had any personal privacy right in anything on those systems.
» Noncompetition Agreements – Physicians
In Awwad v. Capital Region Otolaryngology Head & Neck Group, LLP, a New York court has upheld a restrictive covenant which stated that during the three (3) years following his resignation from his employment with a practice which focused on ear, nose, and throat medicine, a physician would not practice that specialty within thirty (30) miles of any of that group's offices.
International
News» China – Employment Disputes
On May 1, 2008, the Law of the People's Republic of China on the Mediation and Arbitration of Labor Disputes will take effect. The Standing Committee of the National People's Congress passed the Law on December 29, 2007.
» China – Personal Data Protection
China's Ministry of Labor and Social Security has issued regulations which require employers to obtain their employees' written consent before disclosing their personal information or using their technological or intellectual "achievements."
» Foreign Investment in United States
On January 23, 2008, President Bush issued an Executive Order that provides procedures for implementation of the Foreign Investment and National Security Act of 2007 ("FINSA"), which took effect on October 24, 2007 and bolsters national security reviews of acquisitions by foreign entities of control over U.S. businesses and authorizes the President to take such actions as are necessary to dispel national security threats posed by such transactions.
» United Kingdom – Patentability of Computer Programs
The United Kingdom's High Court has ruled that computer programs which offer a substantive technical contribution may be patented.