Westlaw Journals weekly round-up

May 21, 2014

Westlaw Journals Weekly RoundupHighlights from the past week’s litigation headlines over at the Westlaw Journals blog include stories about the Delaware high court endorsing “losing party pays” corporate bylaws, an insurance bad-faith claim in suit over stolen paintings, lawyers who are suing to stop a Texas jail from recording talks with inmates, and an art expert connected to New York paintings fraud:

Delaware high court endorses ‘losing party pays’ corporate bylaws: In a milestone ruling with a potentially large impact on Delaware shareholder suits, the state’s high court has held that corporate bylaws that force the losing party to pay all attorney fees for the litigation are valid under Delaware law. The first-impression decision by the full court came in a low-profile business dispute among members of a closely held company that arranged and conducted international tennis matches, but the May 8 ruling appears to give all companies chartered in Delaware the right to adopt similar fee-shifting bylaws. (Corporate Officers & Directors Liability)

Man can add bad-faith claim in dispute over stolen Picassos, Rembrandts: A Pennsylvania man who claimed that he lost paintings worth millions, including Picassos and Rembrandts, can amend his complaint against his insurer to add a bad-faith claim, a federal judge has ruled. On April 28, U.S. District Judge Malachy E. Mannion of the Middle District of Pennsylvania said plaintiff Timothy Kump can argue that his insurer acted in bad faith when it investigated the ownership and authenticity of the artwork. (Insurance Bad Faith)

Lawyers want court to stop Texas jail from recording talks with inmates: A lawyers group in Texas has filed a federal court lawsuit seeking to stop a county sheriff from allegedly recording defense attorneys’ confidential telephone calls and video conferences with their incarcerated clients. The proposed class-action lawsuit, filed April 29 in the U.S. District Court for the Western District of Texas, also seeks to stop local prosecutors from allegedly using the recordings against the inmates. (Professional Liability)

Art expert connected to New York paintings fraud; feds charge 3 more: A noted Swiss art expert is the most recent individual tied to a decades-long, multimillion-dollar art fraud that has attracted the attention of several federal agencies and already resulted in one guilty plea and charges for three more alleged co-conspirators. A civil lawsuit filed April 1 in the U.S. District Court for the Southern District of New York names Oliver Wick, a curator at the Swiss art museum Kunsthaus Zürich, as a defendant. (White-Collar Crime)