A recent decision by the Supreme Judicial Court declared that sellers of shares in a closely held corporation did not breach their fiduciary duty when the sale imperiled the corporation’s favorable S corporation status. See Merriam, et al. v. Demoulas Super Markets, Inc., et al., SJC-11098 (slip op., March 27, 2013)
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Massachusetts Employers Must Characterize Unused Vacation Pay Properly
The Supreme Judicial Court noted that payment of salary and benefits post-termination does not substitute for payment of unused vacation time, which was shown to be 50 days. Under the Massachusetts Wage Act, a terminated employee is explicitly entitled to payment of unused vacation upon termination.
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93A Judgment Not Subject to Discharge in Bankruptcy
A recent decision by the U.S. Bankruptcy Court held that a 93A judgment was not subject to a bankruptcy discharge pursuant to 11 U.S.C. §523(a)(6) even though the 93A judgment included a finding that the debtor’s conduct was willful. In its holding, the Court noted that M.G.L. c. 93A and 11 U.S.C. §523(a)(6) have different
Court Finds Crime Insurance Covers Data Losses
A data breach resulting in the theft and use of customer credit card numbers results in significant expenses and penalties for the victim company. Many companies still do not have specific cyber liability coverage and thus can be on the hook for all expenses related to such a breach. The Sixth Circuit Court of Appeals
Public Employees Can Lose Their Jobs Over Online Information
Though public employees tend to enjoy greater protections that private sector employees, their personal activities posted online can cost them their jobs. On January 11, 2013, the California Commission on Professional Competence issued an influential ruling upholding the termination of an adult actress turned teacher. The three-judge panel issued a 46-page decision denying the Stacie
Are Social Media Posts Discoverable?
A party files a request for production pursuant to Rule 34 seeking any profiles, messages (including status updates, wall comments, causes joined, groups joined, activity streams, blog entries) from social networking sites that reveal, refer or relate to any emotion, feeling, or mental state of plaintiff as well as communications by the plaintiff that
First Circuit Applies Massachusetts Law in Absence of Agreement in Class Settlement
Last week, the First Circuit Court of Appeals handed down a ruling that all class action attorneys should remember. In the Volkswagen and Audi Warranty Extension Litigation, the litigants had reached a class action settlement that permitted class counsel to seek an award of reasonable attorney fees. The U.S. District Court for the District