News & Insights

MORGAN STANLEY FINED $15 MILLION FOR FAILURE TO PROTECT CLIENT ACCOUNTS

On December 11, 2024, the U.S. Securities and Exchange Commission (SEC) imposed a $15 million fine on Morgan Stanley for its failure to adequately protect client accounts. The fine stems from the firm’s failure to implement proper safeguards, which led to the exposure of sensitive client information and unauthorized transactions. The SEC’s investigation revealed the…
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FLORIDA APPELLATE COURT DETERMINES HOMEBUILDER IS NOT ENTITLED TO COMPEL ARBITRATION AGAINST SUBSEQUENT BUYERS OF THE HOME DUE TO ALL WARRANTIES BEING TIME-BARRED EXCEPT FOR STRUCTURAL DAMAGE WHICH WAS NOT ALLEGED BY BUYERS

In Osborne v. Drees Homes of Fla., Inc., a home builder deeded a built home to original buyers by a warranty deed in December 2012. No. 5D2023-2978, 2024 WL 4575415 (Fla. 5th DCA Oct. 25, 2024). In addition to the deed, the Parties entered into a purchase and sale agreement that contained a limited warranty…
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LIABILITY INSURERS BEWARE: AUTO ACCIDENT TIME-LIMITED DEMANDS IN GEORGIA

Liability insurers are no strangers to time-limited demands sent by plaintiff’s counsel. In Georgia, these demands are called Holt demands after the seminal case S. Gen. Ins. Co. v. Holt, 416 S.E.2d 274 (Ga. 1992). In Holt, the Georgia Supreme Court held that an insurer can be liable to its insured for unreasonably declining a…
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WHAT A SECOND TRUMP ADMINISTRATION COULD MEAN FOR THE EEOC

The 2024 presidential election has finally come to pass with Republican candidate Donald Trump set to begin his second administration in January 2025.  It can be expected that the Trump Administration will bring numerous changes to the employment law landscape during his second administration.  Many of these changes will likely roll back various Biden-era initiatives…
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KENTUCKY COURT OF APPEALS RULES ENGINEERS ARE NOT IMMUNE FOR INTERSTATE DESIGN

In Kristina L. Ives, Individually, et al. v. HMB Professional Engineers, Inc., et al., 2024 WL 2487850 (Ky. Ct. App. May 24, 2024), the Court of Appeals of Kentucky reversed and remanded the Fayette Circuit Court’s decision to grant summary judgment in favor of engineers (the “Engineers”) on the basis they were immune from liability….
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COURT OF APPEALS OF OHIO FINDS CONSTRUCTION COMPANY’S DUTY TO PERFORM HOME RENOVATION IN WORKMANLIKE MANNER DID NOT EXTEND TO SUBSEQUENT HOMEOWNERS

In Wood v. MAK Investment Properties, LLC, the Court of Appeals of Ohio affirmed the lower court’s grant of summary judgment for a construction company on claims brought by homeowners, finding privity of contract was necessary to maintain a negligence action against a subcontractor for remodeling work. 2024 WL 4164066. Plaintiffs Jason Wood and Charlene…
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D.C. CIRCUIT COURT OF APPEALS RULES PRESIDENT’S COUNCIL ON ENVIRONMENTAL QUALITY LACKS REGULATORY AUTHORITY OVER OTHER GOVERNMENT AGENCIES

In Marin Audubon Society v. Federal Aviation Administration, the Washington D.C. Circuit Court of Appeals considered arguments regarding a challenge to an air tour management plan that would affect four national park areas in California. No. 23-1067, 2024 WL 4745044, at *1 (D.C. Cir. Nov. 12, 2024). The plan was developed by the Federal Aviation…
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NASAA PROPOSING REVISIONS FOR USE OF ADVISOR TITLE

NASAA recently announced proposed amendments that aim to prohibit the use of “advisor” or “adviser” titles by brokers. The regulatory coalition is attempting to curtail the use of the titles by individuals that lack the investment adviser licensure. The new amendment is a part of NASAA’s response to the SEC’s 2019 Regulation Best Interest rule….
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SOUTH CAROLINA COURT OF APPEALS RULES ENGINEER COULD PROVIDE CERTAIN TESTIMONY REGARDING ARCHITECT’S STANDARD OF CARE

Increasingly more states are enacting certificate of merit statutes for professional negligence claims, but what satisfies the certification requirement continues to be litigated. The South Carolina Court of Appeals recently held an affidavit from engineer was sufficient to satisfy the affidavit filing requirement for claims of professional negligence against an architect, at least as it…
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COURT RULES THAT NONRECOURSE PROVISION IN COMMERCIAL CONTRACT BARRED TORT CLAIMS AGAINST PARTY THAT BREACHED CONTRACT

In Iberdrola Energy Projects v. Oaktree Capital Management L.P., 2024 WL 3363321 (N.Y. App. Div. July 11, 2024), a New York appellate court held that a nonrecourse provision in a construction contract entered into by sophisticated parties barred tort claims against the alleged breaching party. Defendants Oaktree Capital Management L.P. (“Defendants”) created a special-purpose entity,…
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