There is a time and place for everything, or so they say. Eminem and Too $hort are both somewhat polarizing artists. From songs such as Eminem’s “Cleaning Out My Closet” to Too $hort’s infamous “Blow The Whistle”, some of their more provocative music has been put in the spotlight in the workplace of an apparel manufacturer. Stephanie Sharp and six other employees, including one man, filed a hostile work environment claim under Title VII of the Civil Rights Act against their employer. The plaintiffs alleged that many employees, “mostly women”, complained to the employer about the “obscene and sexually offensive and misogynistic character” of the music being played in the workplace, even as far as various employees placing speakers on a forklift and driving around the facility blasting the music. However, notably, “a number of men” were also “offended by the manner in which the music portrayed men, and their relationships with women.” The employer argued that the conduct was not discriminatory on the basis of sex, emphasizing that “both men and women were offended by the work environment allegedly created by the music played in the warehouse.”
Commercial Litigation
Reform of the English Arbitration Act 1996 – The Law Commission’s Final Report
We have previously reported on changes the Law Commission was considering to the Arbitration Act 1996 (the Act). The Law Commission has now published its final report (the Final Report, available here).
The report draws to a close a review of English arbitration legislation that began in January 2022. A draft bill to implement the Commission’s conclusions and recommendations into law is provided with the report so it is now for the UK government to decide whether to introduce those changes to parliament.
Two Reminders of The Importance of Clear Drafting: PA(GI) & Drax
Two of the most common queries Proskauer’s UK litigation team is asked to advise upon are (i) the interpretation and scope of indemnities and (ii) liability caps. Over the summer, the English Courts handed down two judgments that focus on the interpretation of such provisions. These cases serve as a useful reminder of the importance of (1) clear drafting, (2) consistent drafting throughout a contract, and (3) fully considering all relevant risks at the outset of negotiations.
Where Do We Go From Here? Practical Considerations When Multidistrict Litigation Comes to an End
When product liability actions involving one or more common issues of fact (e.g., an allegedly harmful product or chemical) are filed in multiple jurisdictions, they are typically consolidated for pretrial proceedings in a multidistrict litigation (MDL). 28 U.S.C. § 1407(a). In an MDL, the lawsuits are transferred from their filing courts to a single “transferee” Court (the MDL Court) chosen by the Judicial Panel on Multidistrict Litigation (JPML). The purposes of this centralization are to avoid duplication of discovery, to prevent inconsistent pretrial rulings, and to conserve the resources of the parties, their counsel and the judiciary. For example, overarching issues of law, such as preemption admissibility of common-issue expert opinions, are often resolved by the MDL Court instead of needing to be re-litigated in several different courts. Additionally, MDL Courts can hold bellwether trials to help the parties structure a global settlement process to resolve many or all of the filed cases.
Conduct Over Confusion: Supreme Court Holds Lanham Act to the Presumption Against Extraterritoriality
In April, we discussed oral arguments at the Supreme Court for Abitron Austria GmbH et al. v. Hetronic International, Inc., a case in which the Supreme Court considered the extraterritorial reach of the Lanham Act (“Act”) for the first time since 1952. Last month, the Court ruled that the Lanham Act only reaches claims of infringement where the infringing use in commerce is domestic.
Negotiating with a Noob M&A Target? Go Easy on Them, says Delaware Chancery
Buy-side executives in an M&A deal negotiate with their sell-side counterparts for months, plying them for information, assessing the seller’s weaknesses and pressure points, and even making informal entreaties when the parties’ standstill agreement says they shouldn’t —all to get the best deal for the acquirer. Under Delaware’s contractarian corporate regime—that would seem to be a good thing.
Drafting an Arbitration Agreement? – Remember Four S’s
Last month saw the end of the second round of the UK Law Commission’s consultation on reform of the Arbitration Act 1996, the legislation which provides the framework for arbitration in England and Wales. We have reported on the current status of the consultation and are watching for the final recommendations.
Reform of the English Arbitration Act 1996: Three Areas under Scrutiny
England is one of the most popular jurisdictions for commercial parties to resolve disputes through arbitration: London and Paris were ranked as the top two preferred cities in the world in 2022. To ensure England’s arbitration regime remains modern and competitive, the Law Commission – a body responsible for considering and recommending legislative change to the UK government – is currently considering updates to the legal framework of arbitration in England & Wales, the Arbitration Act 1996 (the Act).