Latest updates

CCI ignores market realities and penalises sugar mills for cartel
Vaish Associates Advocates
  • Competition & Antitrust
  • India
  • 15 November 2018

The Competition Commission of India (CCI) recently penalised several sugar mills and their trade associations for indulging in cartelisation in contravention of the Competition Act 2002. This case demonstrates the CCI's shift towards punishing apparent coordination between competitors based on legal grounds and ignoring the market realities. It also illustrates how trade associations facilitate coordination between competitors.

Ratification of Convention on Transparency in Treaty-Based Investor-State Arbitration continues
  • Arbitration & ADR
  • International
  • 15 November 2018

Gambia recently became the fifth nation to ratify the United Nations Convention on Transparency in Treaty-Based Investor-State Arbitration (Mauritius Convention). Eighteen other countries have signed the Mauritius Convention but have not yet ratified it. While no arbitrations subject to the convention have yet been initiated, if the current signatories were to ratify it, at least an additional 39 bilateral and multilateral treaties would become subject to the convention, unless expressly reserved.

New basic regulation will revise aviation landscape
Arnecke Sibeth Dabelstein
  • Aviation
  • Germany
  • 14 November 2018

The European Parliament and Council recently revised and replaced the basic regulation on common rules in the field of civil aviation. The new basic regulation promises a number of significant changes to the German aviation landscape over the next five years. Among other revisions, the Federal Aviation Office could lose some of its control over certain tasks relating to air operator certification, oversight and enforcement.

Genuine redundancy or unfair dismissal – you do the meth
Lander & Rogers
  • Employment & Benefits
  • Australia
  • 14 November 2018

The Fair Work Commission has found that an HR manager who was made redundant after accusing his managing director of having a meth addiction was not unfairly dismissed. Employers should be aware that, when considering whether a redundancy is genuine, the onus will rest with them to prove that the job is no longer required to be performed by anyone.

Supreme Court rules on whether employees can choose employer following transfer of undertakings
Homble Olsby Advokatfirma AS
  • Employment & Benefits
  • Norway
  • 14 November 2018

A non-statutory Norwegian rule provides employees with the right to choose to stay with their former employer following a transfer of undertakings provided that certain conditions are met. In this regard, the Supreme Court recently ruled that employees who are subject to a transfer of undertakings can choose to stay with their former employer if it is likely that they will lose their early retirement pension under the new employer.

Disability-related passenger rights amended by Federal Aviation Administration Reauthorisation Act
Cozen O'Connor
  • Aviation
  • USA
  • 14 November 2018

The new Federal Aviation Administration Reauthorisation Act, signed into law by President Trump, will affect airlines' obligations to accommodate passengers with disabilities. The Department of Transportation must, among other things, develop an airline passengers with disabilities bill of rights to explain the protections afforded to passengers with disabilities during air travel and conduct a review of service animal requirements.

Use of 'ticking fee' in Novartis-AveXis transaction
Ropes & Gray LLP
  • Corporate Finance/M&A
  • USA
  • 14 November 2018

Novartis AG recently entered into a definitive agreement to acquire AveXis, Inc – a US-based, clinical stage gene therapy company – for approximately $8.7 billion pursuant to a two-step tender offer transaction. Notably, the Novartis-AveXis merger agreement contained a variation of a 'ticking fee' provision in the event that Novartis elected to extend the closing date of the transaction in order to obtain regulatory approvals.

New tugboat resolution: what you need to know
Franco & Abogados Asociados
  • Shipping & Transport
  • Colombia
  • 14 November 2018

A new resolution, which was recently released at the local level, has introduced requirements for tugboats operating in Colombian waters. The resolution establishes national rules on the organisation, planification and performance of towage operations in line with International Maritime Organisation (IMO) Resolution A 765(18) and other IMO regulations on safety requirements for towed ships and other floating objects.

Prohibition denied for Ranbaxy's bupropion extended-release tablets
Smart & Biggar/Fetherstonhaugh
  • Healthcare & Life Sciences
  • Canada
  • 14 November 2018

The Federal Court recently dismissed Valeant's application under the Patented Medicines (Notice of Compliance) Regulations regarding Ranbaxy's bupropion extended-release tablets. The court found that the amount of permeation enhancer in the Ranbaxy formulation was outside the scope of the range claimed. As such, Ranbaxy's allegation of non-infringement was found to be justified.

Court finds in favour of Air Canada in denied boarding compensation case
Bersenas Jacobsen Chouest Thomson Blackburn LLP
  • Aviation
  • Canada
  • 14 November 2018

The Supreme Court of Nova Scotia recently ruled in favour of Air Canada, dismissing a passenger's appeal of the province's small claims court's interpretation of the air carrier's tariff provision which pertained to denied boarding compensation. Despite humble beginnings in the small claims court, the case provides some insight into how the Canadian courts may interpret air carrier tariffs and the evidence that claimants are expected to adduce to succeed in securing compensation in overbooking cases.

Private equity funds face increasing risk of False Claims Act liability
Sidley Austin LLP
  • Healthcare & Life Sciences
  • USA
  • 14 November 2018

Evidence is mounting that the Department of Justice (DOJ) is willing to pursue private equity funds in False Claims Act cases, particularly ones based on alleged violations of healthcare fraud and abuse laws. Earlier in 2018, the DOJ intervened for the first time in one such False Claims Act case against a private equity sponsor, the fund's portfolio pharmacy and two pharmacy employees.

Takeover Panel seeks to clarify rules on asset valuations
Davis Polk & Wardwell LLP
  • Corporate Finance/M&A
  • United Kingdom
  • 14 November 2018

The UK Takeover Panel recently published Public Consultation Paper 2018/1, which sets out several proposed amendments to Rule 29 of the Takeover Code relating to asset valuations. Given that the consultation paper largely seeks to codify current market practice and the approach of the panel to asset valuations, if the code is amended in line with the proposals, such amendments are unlikely to have a material impact on transactions.

Federal government introduces new pay equity and labour standards
Fasken
  • Employment & Benefits
  • Canada
  • 14 November 2018

The federal government recently introduced Bill C-86, the Budget Implementation Act 2018. In addition to introducing long-anticipated pay equity legislation, the proposed legislation would make significant changes to the labour standards in Part III of the Canada Labour Code. Some of the proposed changes are unsurprising given the government's past statements. Other changes are unexpected and, if enacted, would have a major impact on both non-union and unionised employers.

Cross-border reorganisation – foreign companies with a local branch
Allen & Overy Praha
  • Employment & Benefits
  • European Union
  • 14 November 2018

Many international companies run their domestic operations via a branch of a foreign parent, rather than a locally established company. While cross-border spin-offs are theoretically permitted under European law, they do not represent a feasible option due to inadequate domestic regulations. Whether such reorganisations will affect workers' employment status and works councils' co-determination rights, particularly following a change in operations, must be assessed on a case-by-case basis.

Interim order permits import of FDA-approved drug to address Canadian shortage of EpiPens
Smart & Biggar/Fetherstonhaugh
  • Healthcare & Life Sciences
  • Canada
  • 14 November 2018

The minister of health recently made an order permitting the immediate import and sale of epinephrine auto-injectors for use in emergency treatment of life-threatening allergic reactions to address the shortage of EpiPen products. This is the first time that an interim order under Section 30.1(2)(a) of the Food and Drugs Act has been used to address the shortage of an approved product.

Parties facilitating financing in shipping industry must consider law of transferor's domicile
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 14 November 2018

A recent Maritime and Commercial Court case concerned two Danish OW Bunker companies that had given a foreign bank security against their ordinary claims and subsequently became subject to insolvency proceedings. The judgment stressed that parties facilitating financing in the shipping industry must consider the law of the transferor's domicile and undertake due diligence in accordance with this law in order to protect their interests in the event of the transferor's insolvency.

Santiago court holds state agencies liable for negligent protection of trapped miners' occupational safety
Porzio Rios Garcia
  • Employment & Benefits
  • Chile
  • 14 November 2018

The Ninth Civil Court of Santiago recently held that three state agencies had been negligent in protecting the occupational safety of 31 trapped miners and ordered the Treasury to pay approximately €101,523 to each miner. In its defence, the state argued that the significant amount spent in rescuing and compensating the miners (approximately €8.63 million) had protected their moral suffering.

Take care in online presentation of franchised outlets
Aramis Law Firm
  • Franchising
  • France
  • 13 November 2018

As part of the promotion of their networks, franchisors often edit websites displaying contact details and other relevant information regarding the franchise network's outlets, whether they are owned by them or operated by franchisees. In a recent decision, the Versailles Court of Appeal held that a franchisor had treated a franchisee's stores on its website unfairly compared with its own stores.

Recent developments in claims-made policy debate
DLA Piper Studio Legale Tributario Associato
  • Insurance
  • Italy
  • 13 November 2018

The Supreme Court and several lower courts recently examined the validity of claims-made insurance policies under Italian law and reached different, sometimes conflicting, conclusions. In its most recent decision in this regard, the Supreme Court abandoned the fairness or worthiness test, which is undoubtedly favourable to insurers.

To be an employee or not to be – that is once again the question
Lapointe Rosenstein Marchand Melançon LLP
  • Franchising
  • Canada
  • 13 November 2018

The issue of whether a franchisee is an employee or an independent contractor has been debated on numerous occasions and was once again raised in a recent Quebec Court of Appeal decision. In its decision, the court emphasised that when analysing whether a franchisee qualifies as an employee or an independent contractor, the courts should look beyond the terms of the agreement between the parties. While this decision may worry certain franchisors, there are a number of mitigating factors to consider.

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