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4th Circuit Offers Defendants Seeking Federal Jurisdiction Relief Denied by Other Circuit Courts: Remands to State Court Obtained by Fraud Can be Revoked and Attorneys Sanctioned

Last week, the Fourth Circuit Court of Appeals kicked off the holiday by giving thanks for the power to prevent parties from reaping the benefits of fraud perpetrated against the federal courts. The Fourth Circuit decided in Barlow v. Colgate Palmolive Co., et al., No. 13-1839, No. 13-1840, 2014 U.S. App. LEXIS 22324 (4th Cir. Nov. 25, 2014) that the reach of federal jurisdiction extends far enough to snatch a case back from state court if a plaintiff secured remand based on fraudulent misrepresentations to the federal court.  The court also clarified that attorneys engaging in such ...

Legislative Update: Congress is Considering the Lawsuit Abuse Reduction Act of 2013 Which Seeks Increased Rule 11 Sanctions for Attorneys Filing Frivolous Lawsuits

            Attorneys practicing under the Federal Rules of Civil Procedure are very familiar with Rule 11, which requires that they sign all papers submitted to a federal court and subjects them to possible sanctions for filing frivolous, harassing or baseless lawsuits and motions.  The U.S. Congress is currently considering the Lawsuit Abuse Reduction Act of 2013 which aims to “amend Rule 11 of the Federal Rules of Civil Procedure to improve attorney accountability, and for other purposes,” those other purposes being to mandate and increase the sanctions facing attorneys for Rule 11 ...

North Carolina Attorneys are on Notice that They Could Be Held Personally Liable for Failing to Reimburse the State Health Plan after Recovering Damages for an Injured Client

            When the law imposes personal liability on an attorney for actions connected with the representation of a client, it is worth noting and bringing to all of our attention.  Under North Carolina law, if a state employee is injured by a third party and recovers damages from the third party, the State Health Plan for Teachers and State Employees (the “State Health Plan”) has the right to reimbursement for the medical expenses it has covered due to the injury.  In the first North Carolina appellate case to review the statute that gives the State Health Plan this right, The State Health Plan for ...

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