Law Commons^™

Search Engine Liability For Autocomplete Defamation: Combating The Power Of Suggestion, Michael L. Smith

Faculty Articles

In September 2012, Bettina Wulff, a former first lady of Germany, sued Google for defamation. Mrs. Wulff's complaint arose from Google's autocomplete function: when Mrs. Wulff's name was entered into the search engine, the search engine automatically suggested terms such as "prostitute" and "red light district." Rumors that Mrs. Wulff was a former prostitute dated back to 2006 when she first met Christian Wulff, her eventual husband and president of Germany from 2010 until his resignation in February 2012. Mrs. Wulff denied the truth of these rumors.

Mrs. Wulff contended that these autocomplete results were defamatory and that they caused …

Malpractice Liability Related To Foreign Outsourcing Of Legal Services, Vincent R. Johnson, Stephen C. Loomis

Faculty Articles

The outsourcing of client-related tasks to service providers in other countries is likely to generate malpractice claims against American law firms. This Article discusses the wide range of theories under which an outsourcing American law firm may be liable for its own negligence or for the actions of outsourcing providers. These theories include negligence by the outsourcing law firm, vicarious liability for the conduct of firm principals and employees, vicarious liability for the conduct of independent contractors, and vicarious liability for the conduct of business partners.

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

Securities law opinions under Texas law during this period can be divided into two groups. The first group deals with various fraudulent schemes targeted by the Board. The "free lunch" scam, aimed at senior investors, surfaced in Head v. State where the scammer lost the appeal because the evidence clearly confirmed his failure to inform investors. In Navarro v. Grant Thornton, LLP investors failed in their aiding and abetting lawsuit against the accountants because, absent contact between the accountants and investors, the accountants had no duty to whistleblow to regulators or investors.

The second group involves incompetent lawyers. In S&D …

Limited Partnership Status And The Imposition Of Fiduciary Duties In Texas, Colin P. Marks

Faculty Articles

To avoid liability, many investors in a partnership opt for the structure of a limited partnership. This structure insulates the limited partners from liability by creating a two-tier structure with a general partner and limited partners. The limited partners are at risk of losing only their investment so long as they are not acting as general partners.

Despite the popularity of the limited partnership structure, though, it remains unclear what duties are owed between the various partners. In a general partnership, all partners are fiduciaries to each other. The statutes governing limited partnerships make clear that general partners in a …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

Securities law opinions during this period fall into two categories. The first deals with incompetent lawyers. In Miller, a state court reinstated a cease and desist order against an issuer whose lawyer failed to object to a witness's testimony when a co-defendant's counsel did. In In re Next Financial Group, the Texas Supreme Court granted mandamus and ordered arbitration for the termination of a broker when the arbitration agreement permitted only an exception for statutory discrimination, not a common law exception to the employment-at-will doctrine.

The second group of cases involve Fifth Circuit opinions discussing securities fraud actions under the …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

Texas federal courts have continued to narrow the application of Texas securities laws. The Fifth Circuit applied the federal class action preemption test of Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) after consolidation in federal court, but permitted unconsolidated state actions to continue unpreempted. The Fifth Circuit also determined that the stringent federal pleading rules apply to state law actions filed in federal court. The Southern District of Texas narrowed aider and abetter liability in the secondary market by imposing a privity requirement for the primary perpetrator under the Texas Securities Act (“TSA”) and requiring a duty to disclose …

The Effect Of Tort Reform On Tort Case Filings, Patricia W. Moore

Faculty Articles

Does so-called "tort reform" decrease tort case filings? In Texas and other states that have enacted numerous rounds of tort reform, the answer appears to be a resounding "yes," at least as of the year 2000. More recent evidence from Oklahoma supports that conclusion and provides an interesting case study within the tort reform juggernaut.

During at least the past twenty years, tort reformers have achieved substantial legislative successes and, some would argue, public relations victories. Yet their desire for more "reform" seems insatiable, and their legislative agenda rarely sleeps.

Tort reform bills bloom perennially in the Oklahoma legislature, and …

Destroyed Community Property, Damaged Persons, And Insurers’ Duty To Indemnify Innocent Spouses And Other Co-Insured Fiduciaries: An Attempt To Harmonize Conflicting Federal And State Courts’ Declaratory Judgments, Willy E. Rice

Faculty Articles

Perhaps because of habit or a strong aversion to risks, consumers purchase a considerable amount of insurance generally, and consumers purchase property, indemnity, and liability insurance in particular. Typically, national property and casualty insurers sell property, indemnity, and liability insurance contracts. As a result, those insurers sales and revenues increase from year to year. At the dawn of the 21st century, foreign property and casualty insurers are realizing similar successes.

It is expected that anxious or prudent consumers would insure themselves and their various property interests against strangers, strange events, and perils over which consumers have little control or influence. …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

Many courts rendered opinions during the Survey period affecting the reach of the Texas Securities Act (“TSA”). The Texas Supreme Court acknowledged the TSA’s reach over dealers selling from Texas to non-residents of the state, as well as over registration of securities sold. In contrast, the Fifth Circuit continued Congress’s campaign to limit regulation of interest rate swaps to federal regulatory bodies by defining “security” in the TSA to exclude interest rate swaps. In Kastner v. Jenkens & Gilchrist, P.C., a Texas appellate court determined that lawyers are not subject to liability for aiding and abetting when they merely prepare …

Data Security And Tort Liability, Vincent R. Johnson

Faculty Articles

Established tort principles carefully applied to the contemporary problems of cybersecurity and identity theft can perform a key role in protecting the economic foundations of modern life. Tort law offers an appropriate legal regime for allocating the risks and spreading the costs of database intrusion-related losses. It can also create incentives, on the part of both database possessors and data subjects, to minimize the harm associated with breaches of database security.

In considering this field of tort law, it is useful to differentiate three questions. The first issue is whether database possessors have a legal duty to safeguard data subjects’ …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

With respect to easing registration requirements, the State Securities Board (“Board”) had the opportunity to lead both state and federal securities regulatory bodies through rule changes for finders--those who assist issuers in finding purchasers. The Board also issued no-action letters for nonregistration of securities issued in connection with various reorganizations involving a Massachusetts business trust, a demutualization of an insurance company, and an exchange of private shares for public American Depository Receipts.

Other than considering the availability of the in pari delicto defense for litigation-funding agreements, the courts generally avoided the interesting issues. Such issues include whether a seller’s fraud …

Distinguishing The Concept Of Strict Liability For Ultra-Hazardous Activities From Strict Products Liability Under Section 402a Of The Restatement (Second) Of Torts: Two Parallel Lines Of Reasoning That Should Never Meet, Charles E. Cantú

Faculty Articles

Strict liability for ultra-hazardous activities is entirely different from strict products liability. Since strict liability has been applied to so-called dangerous or ultra-hazardous activities, the application has been limited to instances where the defendant has, for his own purpose, created an abnormal risk of harm to those surrounding him, and therefore should pay for any resulting injury. Section 520 of the Restatement (Second) of Torts explains how one weighs the risk of harm emanating from ultra-hazardous activities against the appropriateness to its surroundings. This is not, however, how one determines the applicability of strict liability in the area of defective …