Publications Category Archives — Page 7 of 14 — Kang Haggerty News Published By Kang Haggerty LLC

Legal Intelligencer: The Dilemma of Lengthy ‘Motion Pending’ Delays in Federal Courts

March 18, 2021 | Edward T. Kang

People in line impatiently

In the March 18, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “The Dilemma of Lengthy ‘Motion Pending’ Delays in Federal Courts.”

We all know the phrase “justice delayed is justice denied.” Recently, I have been involved in a flurry of discussions with colleagues from the Philadelphia Bar Association relating to this issue. At a recent Federal Courts Committee discussion through the Philadelphia Bar Association, concerns were raised about what to do (or, more accurately, whether anything can be done) when federal court judges do not move a case for an extended (and unreasonably long) period, usually due to a pending motion to dismiss. Continue reading ›

Legal Intelligencer: Antitrust Suits Against Google Shows Damage Inflicted on Businesses, Consumers

January 21, 2021 | Edward T. Kang

In the January 21, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Antitrust Suits Against Google Shows Damage Inflicted on Businesses, Consumers.”

In reading the spate of recent antitrust actions taken against all-powerful search behemoth Google, you do not have to go very far to see damage done to businesses in our own backyard. A locally based (Paoli, Pennsylvania) search engine upstart DuckDuckGo, best known for protecting the privacy of its end-users, is one such business affected by Google’s monopoly. Continue reading ›

Legal Intelligencer: Data Breach Cases: An Analysis of Standing and Best Causes of Action

December 3, 2020 | Edward T. Kang

Despite the rules and security measures that many organizations put in place to protect the personal information of their clients or customers, sensitive information may still fall prey to hackers and other kinds of breaches.

In the November 25, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote, “Data Breach Cases: An Analysis of Standing and Best Causes of Action.”

Despite the rules and security measures that many organizations put in place to protect the personal information of their clients or customers, sensitive information may still fall prey to hackers and other kinds of breaches. Those affected may seek counsel to aid in bringing suit to hold an entity liable for its intermediary role when a third party commits a data breach.. While data breaches have become too common, case law and statutory law governing redress for data breaches is limited. This column explores standing and potential causes of action in data breach suits.

Legal Intelligencer: Pa. Supreme Court to Review Veil-Piercing Appeal Based on Enterprise Theory

November 5, 2020 | Edward T. Kang

Org-Chart-1024x576 In June, the Pennsylvania Supreme Court granted an appeal that could radically alter existing state law on corporate liability based on the veil-piercing theory. The case, arising from a dram shop tort action, is poised to test Pennsylvania law’s “strong presumption” against piercing the corporate veil.

In the November 5, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Pa. Supreme Court to Review Veil-Piercing Appeal Based on Enterprise Theory.”

In June, the Pennsylvania Supreme Court granted an appeal that could radically alter existing state law on corporate liability based on the veil-piercing theory. The case, arising from a dram shop tort action, is poised to test Pennsylvania law’s “strong presumption” against piercing the corporate veil. Hoping to recover damages from an affiliated corporation that was not a defendant at trial, the plaintiff in Mortimer v. McCool, was granted an appeal on the basis of the so-called “single business enterprise” or “single entity” theory. See Mortimer v. McCool, Nos. 20 MAL 2020, (Pa. June 22, 2020). Not currently adopted in Pennsylvania, the theory may be applied to allow a plaintiff to reach the assets of one or more affiliated corporations of the debtor when those “corporations share common ownership and are, in reality, operating as a corporate combine.” See Miners v. Alpine Equipment, 722 A.2d 691,695 (Pa. Super. 1998). Courts discussing or adopting the enterprise theory have found its rightful target to be corporate entities that have integrated business ownership and assets to achieve a common business purpose. Thus, in an important sense, by operating what is essentially a “single business enterprise” split into multiple affiliated entities (often purely for the sake of avoiding liability), owners of such enterprises open the door for the courts to impose shared liability. In the past, I have written about veil-piercing in Pennsylvania generally, as well as in specific regard to LLCs and the “alter ego” theory. This column addresses the implications of the Mortimer appeal and the “enterprise” theory for Pennsylvania corporate liability law.

Legal Intelligencer: Business-Interruption Claims in the COVID-19 Era: Litigators Find Hope

October 29, 2020 | Edward T. Kang

The courts have, in turn, opened their ears (and maybe their hearts, too) to the plight of American businesses that have suffered on a truly historic scale.

Drawing of business meeting, participants wearing masks
In the October 15, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Business-Interruption Claims in the COVID-19 Era: Litigators Find Hope.”

While the coronavirus itself may be novel, business interruption insurance lawsuits are not. Accordingly, in the initial wave of lawsuits arising from the pandemic, both business owners and courts throughout the country seemed trapped in a fixed mindset about this new type of case. Reeling from loss and damage, business owners assumed that since their businesses had been interrupted by COVID-19, their claims had merit. Courts, meanwhile, reading insurance policies narrowly, dismissed claims related to the virus for lack of tangible alteration to business property. In recent months, however, litigators have embraced more creative arguments to persuade the courts to hear their cases. The courts have, in turn, opened their ears (and maybe their hearts, too) to the plight of American businesses that have suffered on a truly historic scale.

Legal Intelligencer: Piercing the Corporate Veil of LLCs Under Pennsylvania Law

September 3, 2020 | Edward T. Kang

Piercing the veil of limited liability companies (LLCs) allows a court to disregard the separate corporate personality of the company and its member(s) to reach the assets of the members and hold them liable for all or part of the LLC’s debts under Pennsylvania law.

In the September 3, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Piercing the Corporate Veil of LLCs Under Pennsylvania Law.”

Piercing the veil of limited liability companies (LLCs) allows a court to disregard the separate corporate personality of the company and its member(s) to reach the assets of the members and hold them liable for all or part of the LLC’s debts under Pennsylvania law. Previously, I’ve written on the general substantive and procedural requirements of piercing the corporate veil of an entity and alter ego jurisdiction over corporate groups. This column addresses the Pennsylvania law on the doctrine of piercing the corporate veil as applied to LLCs.

Legal Intelligencer: Civil RICO and Proximate Cause: A Tool for Defendants and Challenge for Plaintiffs

July 28, 2020 | Edward T. Kang

A recent decision out of the U.S. District Court for the Eastern District of Michigan underscored the RICO “proximate cause” inquiry highlighting yet another, often overlooked, complexity in litigating such cases.

In the July 23, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Civil RICO and Proximate Cause: A Tool for Defendants and Challenge for Plaintiffs.”

In March 2018, I authored a column on civil RICO claims brought under 18 U.S.C. Section 1962(a) and (b). In that space, I explained the complexity of those sections within RICO cases. A recent decision out of the U.S. District Court for the Eastern District of Michigan underscored the RICO “proximate cause” inquiry highlighting yet another, often overlooked, complexity in litigating such cases.

Legal Intelligencer: The Future of Business Contracts Post-COVID-19

July 6, 2020 | Edward T. Kang

While it is likely that businesses will think to add force majeure clauses to future contracts, there is also reason to believe the specific language of these clauses could be modified. Likewise, there are other changes to be expected in post-pandemic contracts.

In the July 2, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “The Future of Business Contracts Post-COVID-19.”

Recently, I authored a column on force majeure clauses. In that space, I explained how many businesses have recently been turning to force majeure clauses in their contracts for protection in light of the COVID-19 pandemic. While it is likely that businesses will think to add force majeure clauses to future contracts, there is also reason to believe the specific language of these clauses could be modified. Likewise, there are other changes to be expected in post-pandemic contracts.

Legal Intelligencer: Piercing the Corporate Veil of Corporate Groups to Establish Alter Ego Jurisdiction

June 24, 2020 | Edward T. Kang

When nonresident members of a corporate group, usually the parent company, should expect to be subjected to the jurisdiction of Pennsylvania courts when one of the entities, usually the subsidiary, is based or does business in the state.

In the June 18, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Piercing the Corporate Veil of Corporate Groups to Establish Alter Ego Jurisdiction.”

Last June, in this space, I authored a column about Pennsylvania law on substantive and procedural aspects of piercing the corporate veil of companies to reach the assets of their shareholders or the assets of a parent company in corporate groups. In early January 2020, I wrote a column about the development of Pennsylvania law on establishing personal jurisdiction over registered nonresident businesses since the Supreme Court’s decisions in. In this case, I address the intersection of those two related columns in cases involving corporate groups. That is, when nonresident members of a corporate group, usually the parent company, should expect to be subjected to the jurisdiction of Pennsylvania courts when one of the entities, usually the subsidiary, is based or does business in the state.

Withdrawal Liability Basics

May 28, 2020 | Henry J. Donner

Tablet with financial reports next to man with briefcase. Given the pandemic and its effect on financial markets coupled with the loss of contribution hours in certain industries, such a construction, many defined benefit pension plans have become underfunded once again. What may come as a surprise to contributing employers of multi-employer pension plans is the impact an underfunded pension plan can have on their business upon withdrawal from the plan. Employers should be aware of withdrawal liability and how to minimize its financial consequences. Continue reading ›