Archives for August 2022

August 31, 2022 –

For a useful introduction to the law of international arbitration in the United States, here is an article from The International Arbitration Review, written by three attorneys at Wilmer Cutler. The piece provides a brief overview of the current arbitral process, including structures of U.S. courts and arbitration law and distinctions between international and domestic arbitration law.  

 

To read Salad et al.’s piece with free access, click here.

To learn more about CASTAYBERT PLLC’s arbitration practice, click here.

August 23, 2022 — On May 26, 2022, the Appellate Division, First Judicial Department of New York granted an injunction prohibiting former Vice President of Basketball Partnerships at Excel Sports Management, LLC Eric Eways from working for Klutch Sports Group, LLC.

Eways had signed a contract with Excel that featured a restrictive non-compete clause barring him from working for specifically-named competitors for eight months post-separation. The Appellate Division reversed the Supreme Court of New York, Commercial Division’s denial of Excel’s motion for a preliminary injunction, with the Supreme Court having found that Excel’s interests could be protected by more precisely tailored non-solicitation and confidentiality provisions contained in Eways’s employment agreement.

Under New York law, the standard for the enforcement of a restrictive covenant in an employment agreement remains that the covenant is necessary to protect the employer’s legitimate business interests, “(2) does not impose unique hardships on the employee, and (3) is not injurious to the public.” The Appellate Division signaled with its ruling that New York likely will continue to enforce restrictive non-complete clauses in employment agreements.

To read more about Excel Sports Management, LLC’s action against Eric Eways and Klutch Sports Group, LLC, click here.

To read the Appellate Division’s decision, click here.

To learn more about how Castaybert PLLC can help you navigate employment law as well as non-competes and other restrictive covenants, click here and here.

August 9, 2022 — Last summer, the New York City Council voted to deregulate the city’s art market, purportedly as part of a broader attempt to revive its flagging businesses after the coronavirus pandemic. Those new rules, contained in a larger package known as Local Law 80, came into effect June 15th, 2022. They could have significant and far-reaching implications for the international art market.

Under the new rules, auction houses:

  • No longer require a license;
  • No longer need to disclose “irrevocable bids;”
  • No longer need to disclose their own financial interest in a lot nor that of a third-party;
  • May engage in “chandelier bidding,” taking fictitious bids until the demand for a work reaches the reserve price.

According to the New York Times, Christie’s and Philips auction houses have said that they will continue to operate with the old rules in mind, while Sotheby’s declined to comment. Tamara Bell, a lawyer at Charles Russell Speechlys, notes that these changes to the legal requirements imposed on New York City’s auction houses “came out of the blue and without consultation.”

To read more about New York City’s changes to art market regulations, click here, here, and here.

To read more about how Castaybert PLLC can help you navigate art law, click here.

August 3, 2022 —

On July 19, the Delaware Supreme Court contributed to a wave of recent jurisprudence that grants stockholders greater access to corporate records under Section 220 of Delaware General Corporation Law (DGCL). In NVIDIA Corp. v. City of Westmoreland Policy and Fire Retirement System, Del. Supr., No. 259, 2021 (July 19, 2022), a divided bench held that the “credible basis” standard of evidence to obtain corporate records for a “proper purpose” under Section 220 may be satisfied by “reliable hearsay.”

For more information about the decision, click here.

To read about how Castaybert PLLC can assist in navigating commercial litigation and arbitration, click here.

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