News, Updates & Insights
Maryland State Board of Contract Appeals Further Clarifies Standing Requirements
A recent MSBCA case further explains that the “affected competitively” analysis, which may grant a contractor standing to protest the State’s contracting decision. This is one of the tests used to determine if the contractor is an “interested party” under State regulations.
Severino Law Prevails in Trial to Recover Client’s Former Business
Mike Severino is pleased to announce that he prevailed after trial in his efforts to have the Court order the buyer of his client’s former business to convey the stock back to Mike’s client. After the buyer of the business defaulted on the payment for the stock, the Court ultimately ordered the buyer to convey the stock back to Mike’s client pursuant to the sale documents.
President Biden Issues Executive Order Seeking to Limit Non-Competition Agreements
On July 9, 2021, President Biden issued an Executive Order that seeks, among other things, to ban or limit non-competition agreements. Many states already limit such non-compete agreements, as opposed to non-solicitation or confidentiality agreements that are usually enforced.
Fourth Circuit Affirms Information Right of Privacy and Rejects Private Cause of Action under HIPAA
In a recent decision, the Fourth Circuit reaffirmed a constitutional right to informational privacy and joined other circuits in rejecting a private cause of action for violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
Supreme Court Deals Powerful Blow to NCAA “Amateurism”
In a unanimous ruling, the Supreme Court dealt a powerful blow to the NCAA’s oft-recited concept of amateurism. Used to restrict athletes from obtaining nearly any benefit for their athletic abilities other than their scholarships and attendant benefits, the NCAA’s reliance on amateurism to escape antitrust scrutiny failed before the Supreme Court, which affirmed that NCAA limitations on education-related benefits constitute illegal restraints on trade.
Maryland Joins Other States in Establishing NIL and Safety Protocols for Student-Athletes
Anyone who follows college sports knows that the use of an athlete’s name, image and likeness (NIL) has been a hot topic in the last couple of years. Various states have enacted laws allowing student-athletes to earn NIL compensation, contrary to the NCAA’s long established amateurism rules.
Maryland has become the latest state to join the growing chorus of states allowing NIL compensation with Governor Hogan signing the Jordan McNair Safe and Fair Play Act.
Maryland Operating Agreement Does Not Take the Place of a Will
In a recent case from the Maryland Court of Special Appeals, an LLC operating agreement provided that the members could designate a successor to their membership interests. However, the provision called into question Maryland’s testamentary and probate laws. The Court ruled that the membership interest was probate property and because the successor provision did not comply with Maryland’s statute of wills, it conveyed the LLC interest to the member’s estate, not his chosen successor.
Certain Limited Liability Companies and Corporations Now Required to Report Their Beneficial Owners – Corporate Transparency Act
FinCEN has now received public comment to the Corporate Transparency Act, found in National Defense Authorization Act for Fiscal Year 2021 (NDAA). The Act affects certain limited liability companies and corporations (especially those that are closely held) and requires disclosure of certain beneficial owners of the entities.
President Biden Issues Executive Order to Raise Minimum Wage to $15 for Federal Contractors
On April 27th, 2021, President Biden issued an Executive Order raising the minimum wage to $15 per hour for all federal contractors. Contractors must incorporate the higher wage in new contract solicitations starting January 30th, 2022 and implement the new wage by March 30th, 2022.
Fourth Circuit Makes Clear That Parties Can Waive Appellate Review of an Arbitrator's Decision
In a matter of first impression in the Fourth Circuit, the Court made clear that parties may waive in their arbitration agreement appellate review of an arbitrator's decision. While initial review of the decision in order to confirm or vacate the award may be made by a District Court, the parties may agree to foreclose further appellate review. If so, that choice will be honored.
Latest Federal Privacy Legislation Introduced
In the wake of Virginia passing its own privacy statute, Representative Suzan DelBene (D-Wash.) introduced the Information Transparency and Personal Data Control Act in the House. The proposed legislation would preempt conflicting state laws and provide for an opt-in requirement for sensitive personal data.
Virginia Enacts Data Privacy Law
On March 2nd, 2021, Virginia Governor Ralph Northam signed into law the Virginia Consumer Data Protection Act (CDPA). In doing so, Virginia became the second state (after California) to implement a comprehensive data privacy scheme. The new law takes effect January 1, 2023. Those businesses that operate in Virginia or target Virginia residents and fall within the statute’s scope should begin assessing what data they collect and the statute’s effect on such data collection.
Apple Trade Secret Lawsuit Demonstrates Good Trade Secret Pleading
Trade secret practitioners know that in order for information to constitute a trade secret under either federal or state law, it usually must not be known outside of the company and subject to reasonable methods to protect its secrecy. Notwithstanding, many trade secret lawsuits contain just a conclusory allegation that the information constitutes a “trade secret” with very vague allegations that the company employed reasonable measures to ensure secrecy. They should contain more, or risk dismissal.
Maryland Senate Passes Proposed Constitutional Amendment to Raise Jury Trial Threshold to $30,000
The Maryland Senate earlier this week approved a proposed constitutional amendment that would raise the minimum threshold for a right to a jury trial in Maryland from $15,000 to $30,000. The measure now goes to the Maryland House of Delegates for a vote there.
Two Federal Courts Rule in Favor of Restaurant Owners Claiming Under Business Interruption Polices – Part Two
The second case where a federal court has ruled in favor of restaurant owners in their claims made pursuant to their business interruption insurance policies is In Re Society Insurance Co. However, in Society, the Court merely denied summary judgment to the insurer and did not rule, at the early motions stage, that coverage existed.
Two Federal Courts Rule in Favor of Restaurant Owners Claiming Under Business Interruption Polices – Part One
Since the beginning of 2021, two federal courts have ruled in favor of restaurant owners in their claims made pursuant to their business interruption insurance policies. While most courts have ruled against insureds in these business interruption cases, the tide seems to be turning just a bit.
Michael Severino has been selected to the 2021 Maryland Super Lawyers list for Business Litigation
Michael Severino is pleased to announce that he has been selected to the Maryland Super Lawyers List for business litigation for the second year in a row. Each year, no more than five percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
District of Columbia Moves to Ban Most Non-Competes
The District of Columbia Council recently passed an Act banning most non-competition agreements entered into after the Act’s enactment. This is the latest in a trend among states and localities to significantly restrict non-competition agreements for most employees. The Act now goes to the Mayor, although it passed with a veto-proof majority.
Certain Limited Liability Companies and Corporations Now Required to Report Their Beneficial Owners – Corporate Transparency Act
Tucked away in the lengthy National Defense Authorization Act for Fiscal Year 2021 (NDAA) is the little-known Corporate Transparency Act. The Act affects certain limited liability companies and corporations (especially those that are closely held) and requires disclosure of certain beneficial owners of the entities.
Lawsuit Calls into Question SBA’s Review of PPP Loan Forgiveness
A trade group made up of commercial general contractors recently filed a lawsuit in federal court calling into question the Small Business Administration's questionnaires used to aid in determining whether loans made under the PPP are subject to forgiveness. The lawsuit seeks to disallow any examination of the borrower’s financial condition after applying for the PPP loan because the required certification is limited to the time the certification was executed.