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Minnesota Supreme Court’s Abolishment of Century-Old Common-Law Prohibition Against Champerty Paves Way for Third-Party Litigation Financing

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In a unanimous decision, the Minnesota Supreme Court abolished Minnesota’s common-law prohibition against champerty and maintenance, opening Minnesota to third-party litigation financing. Maslowski v. Prospect Funding Partners LLC, et al., A18-1906, 2020 WL 2893376 (Minn. June 3, 2020).

For the less practiced in Middle English, champerty is “an agreement to divide litigation proceeds between the owner of the litigated claim and a party unrelated to the lawsuit who supports or helps enforce the claim” and maintenance is “improper assistance in prosecuting or defending a lawsuit given to a litigant by someone who has no bona fide interest in the case, meddling in someone else’s litigation.” Black’s Law Dictionary (11th ed. 2019). Today, champerty and maintenance are often associated with third-party litigation financing.

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Lack of Admissible Expert Evidence Combusts PAM Can Claims in EDNY

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In a decision reinforcing the importance of expert testimony in design defect and failure to warn cases, the Eastern District of New York recently dismissed claims against the makers of PAM cooking spray.

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Whether Asbestos-Containing Components Were Manufactured by Third Parties No Longer Matters in New Jersey

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Aligning with neighboring New York, and clearing up conflict within the Appellate Division, the New Jersey Supreme Court ruled equipment manufacturers can be held strictly liable on the basis of failure to warn for asbestos-containing component parts made or supplied by third parties. Whelan v. Armstrong Int’l, Inc., (N.J. 6/3/20).

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Beware the COVID-19 Cure: The FTC Issues Warnings to Products Making COVID-19 Treatment Claims

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With no approved vaccine, the world waits for the next big breakthrough in 2020’s medical emergency. Some companies already claim to have found it – and subsequently received warning letters from the Federal Trade Commission (FTC) for misbranding. The FTC is targeting companies promoting products with supposed COVID-19 cures, treatment or prevention for making illegal, unsubstantiated claims.

One of the FTC’s objectives is eliminating false and misleading information from the marketplace. The FTC Act defines false advertising as misleading in a “material respect,” which includes both affirmative statements and failure to “reveal facts material in the light of [the product’s] representations[.]” See 15 USC 55(a)(1).

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IL Supreme Court Follows BMS To Hold Courts May Not Exercise Personal Jurisdiction Over Claims of Out-of-State Plaintiffs for Out-Of-State Injuries From A Device Made Out-Of-State

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In an important decision in accord with the U.S. Supreme Court’s 2017 landmark ruling on personal jurisdiction in Bristol-Myers Squibb Co. v. Superior Court of Calif., 137 S. Ct. 1773 (2017) (BMS), the Illinois Supreme Court held that Illinois courts may not exercise personal jurisdiction over claims of out-of-state plaintiffs for personal injuries suffered outside of Illinois from a device manufactured outside of Illinois. Rios v. Bayer, 2020 IL 125020 (June 4, 2020).

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“Deposition Distancing”: Practical Considerations for Defending Remote Depositions

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Lawyers continue to work during the COVID-19 pandemic.  As we discussed in a previous post, for litigators this may involve participating in remote depositions as courts attempt to keep discovery moving. We also provided tips for lawyers taking remote depositions. With thanks to our Faegre Drinker colleagues who have ventured into this new world and shared a great deal of useful advice with the authors, here we discuss some of the practical considerations for lawyers defending remote depositions.

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