Plaintiffs who secure a preliminary injunction may now be able to recover attorney’s fees in the Eastern District of Virginia, due to the Fourth Circuit’s departure from its previous position that such plaintiffs are not “prevailing parties” for purposes of recovering attorney’s fees.
Business Litigation
Using a Company Witness as a Subject Matter Expert on a Company’s Products
It is common in commercial litigation for a company to offer an employee as a witness to testify about the design, capabilities and features of the company’s products or services. Usually, such a witness testifies as a fact witness offering testimony based on his or her personal knowledge under Fed. R. Evid. 602, rather than as an expert witness offering opinion testimony under Fed. R. Evid. 702.
EDVA Judges Wade Into Circuit Split Over Certifying FLSA Collective Actions
In an August 11 decision, Judge Henry Hudson of the EDVA conditionally certified a class of food service workers employed by a federal contractor at Fort Pickett who sued for unpaid overtime pay under the Fair Labor Standards Act (FLSA). Hernandez v. KBR Servs., LLC, Civil Action No. 3:22CV530-HEH, 2023 U.S. Dist. LEXIS 140795 (E.D.Va. Aug. 11, 2023). The ruling highlights a split among EDVA judges as to the correct procedure for handling collective actions under the FLSA that mirrors a three-way split among the federal courts.
EDVA Judge Grants Emergency Motion to Stay Pending Arbitration Until Issue of Arbitrability Resolved
On June 12, Judge Hudson granted an emergency motion to stay arbitration proceedings, pending the court’s resolution of the issue of arbitrability in a case pending in the U.S. District Court for the Eastern District of Virginia, Richmond Division. See Sauer Brands, Inc. v. Polytrade Int’l, Inc., No. 3:23-cv-181-HEH, 2023 U.S. Dist. LEXIS 135786 (E.D. Va. June 12, 2023). As getting a case in or out of arbitration may be critical in pursuing a merits-based strategy or mitigating against excessive costs, this case provides several key considerations in structuring arbitration agreements and how to procedurally maneuver when one party proceeds to arbitration unilaterally over the other party’s objection.
EDVA Judge Denies Motion to Vacate Ruling After Settlement
In significant and hard-fought litigation, it is not uncommon for parties to reach a settlement that includes an agreement to jointly move the court to vacate earlier rulings on key motions in the case. For a settling plaintiff that lost the earlier ruling, vacatur can be important to preserve potential claims against other defendants. Likewise, vacatur of an adverse ruling against a defendant allows that defendant to contest the issue in future cases. For the party that prevailed on the motion, there is often little incentive to oppose an agreement to request vacatur if it is part of an otherwise favorable settlement agreement.