Mexico’s package of energy reform laws (“Energy Law” – nine new laws and amendments to twelve existing laws) became a reality with its promulgation on Monday, August 11, 2014. With the enactment of the Energy Law, Mexico finally joins the international mainstream of energy resource development and management. This alert addresses only the oil and gas aspects of the reform ...
The standards for Section 11 liability for statements of opinion in registration statements is the subject of a split between the federal circuit courts. The Tenth Circuit joined the split in the recently issued opinion, MHC Mutual Conversion Fund v. Sandler O’Neill & Partners, et al. The Supreme Court is scheduled to resolve this split next term in the Omnicare1 case, which is currently being briefed before the high court ...
On June 10, 2014, the Public Company Accounting Oversight Board (the “PCAOB”) adopted Auditing Standard No. 18 (“Standard No. 18”), which amends and supplements existing auditing standards regarding related party transactions, significant unusual transactions and financial relationships and transactions with executive officers. Standard No. 18 also expands the required communications that an auditor must make to the audit committee related to these areas ...
The National Labor Relations Board’s (“NLRB” or the “Board”) general counsel Richard Griffin announced July 29, 2014 that he had authorized complaints in 43 unfair labor practice cases alleging that franchisor McDonald’s, USA, LLC is a joint employer with its franchisees ...
On July 16, 2014, the Sixth Circuit Court of Appeals confirmed that a “health care provider can bring the Medicare Secondary Payer Act’s (“MSP’s”) private cause of action against a non-group health plan that denies coverage for a reason besides Medicare eligibility.” In Michigan Spine & Brain Surgeons, PLLC v. State Farm Mutual Automobile Insurance Co., the Court clarified a key holding in its prior decision in Bio-Medical Applications of Tennessee, Inc. v ...
This past June marks nine years since the data breach at CardSystems Solutions, which involved the disclosure of names, account numbers and verification codes for some 40 million cardholders. Next month, we will pass the eight-year anniversary of the data breach at Monster.com, which involved the disclosure of contact information for some 1.3 million users ...
The D.C. Circuit issued a decision on June 27 In re: Kellogg Brown & Root, Inc. (“KBR"), a closely-watched case about whether the attorney-client privilege applies to documents relating to an internal investigation undertaken pursuant to a company’s code of business conduct ...
The Internal Revenue Service (IRS) has introduced a new, shorter form of the exemption application for Section 501(c)(3) status—the Form 1023-EZ. Previously, most organizations seeking federal income tax exemption under Section 501(c)(3) were required to complete the full 26-page (plus attachments) Form 1023, regardless of their anticipated funding or the complexity of their activities ...
The Internal Revenue Service (“IRS”) recently issued Revenue Ruling 2014-18 (the “Ruling”) allowing the deferral of compensation from offshore hedge funds through the use of stock options (“Options”) and stock-settled stock appreciation rights (“SARs”) without running afoul of Section 457A of the Internal Revenue Code (“Section 457A”) ...
In French v. Occidental Permian, Ltd., No. 12-1002 (Tex. June 27, 2014), the Texas Supreme Court provided guidance on how to calculate royalties where production is obtained through an enhanced recovery technique like the injection of carbon dioxide (CO2) ...
In a win for policyholders relying on multiple coverage layers, the Fifth Circuit held on June 23, 2014 that an excess liability insurance policy could be triggered by exhaustion of a “retained limit” - equal to the limits of underlying insurance - even if the amounts paid to meet the “retained limit” were not covered by the excess policy. Indemnity Insurance Co. of N. Am., et. al. v. W & T Offshore Inc., -- F.3d --, No. 13-20512 (5th Cir. June 23, 2014) ...
The Supreme Court issued a decision on June 23rd in the closely watched case of Halliburton Co. v. Erica P. John Fund, Inc., 573 U.S. ___ (2014) (Halliburton II). A majority of the Court declined to overrule the fraud-on-the-market presumption of reliance, which makes it easier for plaintiffs in securities fraud class actions to prove reliance and obtain class certification ...
As more states adopt anti-SLAPP legislation (i.e., Oklahoma’s passage this Spring and Nevada’s expansion of its anti-SLAPP statute last year), more federal courts must decide whether such laws create a substantive right which should be applied by the federal judiciary ...
The Supreme Court today ruled that Aereo’s system for transmitting over-the-air television broadcasts through the Internet violates copyright law. In a 6-3 decision, with Justice Breyer writing for the majority, the Court ruled that Aereo both “performs” the television broadcasts at issue and does so “publicly.” With these key issues decided, the Court essentially sounded a death knell for Aereo and a similar but unrelated company, FilmOn X ...
In a significant decision affecting Texas corporate law, the Texas Supreme Court decided on June 20th there is no common law claim for shareholder oppression in Texas; the court also set the standards and remedies available for oppression claims brought pursuant to the rehabilitative receiver statute in the Texas Business Organizations Code ...
The International Swaps and Derivatives Association, Inc. (“ISDA”) has published a form of amendment to the 1992 and 2002 ISDA Master Agreements intended to address continuing uncertainty regarding the condition precedent set forth in Section 2(a)(iii) of both such Master Agreements (“Section 2(a)(iii)”) ...
A divided Supreme Court held that the Environmental Protection Agency (EPA) exceeded its authority under the Clean Air Act (CAA) when it required certain sources emitting greenhouse gases (GHG) to obtain permits under the Prevention of Significant Deterioration (PSD) and Title V Operating Permits (Title V) programs. The decision in Utility Air Regulatory Group v. EPA (No. 12-1146) on Monday, June 23, reversed the decision of the D.C. Circuit Court of Appeal that upheld EPA’s rules ...
The Texas Supreme Court has held that a mineral lessee enjoys surface rights over a pooled tract even if that tract is not producing oil or gas. Key Operating & Equip., Inc. v. Hegar, No. 01-10-00350-CV, 2014 WL 2789933 (Tex. Jun. 20, 2014). Mineral lessee Key pooled part of a 191-acre tract (the Curbo tract) with an adjoining tract (the Richardson tract) to form a single unit. Key used a road across the Curbo tract to reach oil and gas operations on the Richardson tract ...
On June 13, 2014, several amendments to both the General Law on Business Corporations (Ley General de Sociedades Comerciales) and the Commercial Code were published in the Official Gazette of the Federation. The reform package is aimed at reducing the cost and time required for certain corporate formalities, and also includes legislation in the areas of corporate governance, minority rights and share transfers similar to the current regulations under the Securities Act ...
On June 18, 2014, the Trademark Trial and Appeal Board (TTAB) of the U.S. Patent and Trademark Office granted a petition to cancel six trademarks owned by the Washington Redskins football team. InAmanda Blackhorse, et al. v. Pro-Football, Inc., the TTAB, by a 2-1 vote, held cancellation of the trademarks was warranted “because they were disparaging to Native Americans at the respective times they were registered.” See opinion here ...
Consistent with President Obama’s Climate Action Plan, EPA today published two sets of proposed rules, which it refers to as “carbon pollution standards,” relating to greenhouse gas emissions from fossil fuel-fired electric generating units - for existing stationary sources (79 Fed. Reg. 3480) and for modified and reconstructed sources (79 Fed. Reg. 34980). The publication of these proposals starts the clock running on comments, which are due on or before October 16, 2014 ...
Many entities choose to incorporate in Delaware as a result of the abundance of case law on corporate matters and the willingness and ability of the Delaware legislature to adapt to changing times. The ATPdecision is a recent example of the Delaware courts and legislature in considering corporate governance changes in response to stockholder litigation.ATP DecisionIn ATP Tour, Inc. v. Deutscher Tennis Bund, No. 534, 2013 (Del ...
The U.S. Supreme Court has ruled that competitors may bring private suits alleging unfair competition under the Lanham Act based on misleading and deceptive food and beverage labels that are regulated by the U.S. Food and Drug Administration (“FDA”), overruling a Ninth Circuit decision ...
The Comprehensive Environmental Response, Compensation and Liability Act, commonly referred to as CERCLA or Superfund, does not contain any provision for a private cause of action for personal injury or property damage relating to the release of hazardous substances ...
In Nautilus, Inc. v. Biosig Instruments, Inc., issued on June 2, 2014, the Supreme Court established a new legal test to determine whether a patent claim satisfies the definiteness requirement of 35 U.S.C. Section 112 ...
