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EU Law analysis: With the first provisions of the EU AI Act now live, the European Commission has issued guidance, launched compliance support tools, and signalled active enforcement. Simultaneously, it has withdrawn the proposed EU AI Liability Directive and unveiled the AI Continent Plan to expand Europe's AI infrastructure and data ecosystem. This article provides an overview of key developments and practical advice for business leaders preparing for the next phase of AI regulation. Written by Barry Scannell, partner at William Fry and member of the Irish Government's AI Advisory Council.
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Restructuring & Insolvency analysis: In this case the High Court provided guidance to the trustees in bankruptcy of a Russian individual, in relation to questions arising from the Russia (Sanctions) (EU Exit) Regulations 2019. The significant criminal and civil penalties involved mean that any decisions regarding or dealings with (potentially) sanctioned entities in the course of an insolvency procedure are high-stakes matters for insolvency officeholders. Among other things, the court held that the trustees would not be acting in breach of UK sanctions by permitting sanctioned entities to participate in the bankruptcy process (prior to any distribution) as creditors—specifically by voting in creditors’ decision procedures and participating and voting in the creditors’ committee. Written by Helen Martin, managing associate at Stevens & Bolton LLP.
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Arbitration analysis: This case involved an appeal against a decision by the Singapore International Commercial Court, which granted two anti-suit injunctions (Injunctions) restraining the appellant from continuing domestic court proceedings in Korea. The Singapore Court of Appeal partially allowed the appeal, setting aside the Injunctions granted concerning the claims against non-parties to the arbitration agreement. In doing so, the Singapore Court of Appeal clarified that an exclusive forum clause in a contract is presumed not to apply to claims against third parties unless explicitly stated to do so and accordingly cannot serve as the basis for issuing an anti-suit injunction to stop the claim against the third parties. Written by Amanda Lees, partner at King & Wood Mallesons.
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Law360: On 18 September 2024, the US Food and Drug Administration (FDA) issued final guidance titled ‘Conducting Clinical Trials With Decentralized Elements’, for sponsors, investigators and other interested parties to support drug, biologic and medical device development.
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Private Client analysis: The applicant, Enable & Thrive Ltd, made an application to be appointed as a property and affairs deputy for an individual known as AB. The court considered the issues around the appointment of corporations as deputies, referring to what is known as ‘The First Judgment’ in Various Incapacitated Persons and the Appointment of Trust Corporations as Deputies. The First Judgment outlined the categories into which trust corporations fall for these purposes. In this instance, the application concerned a type of trust corporation not previously the subject of these proceedings: a ‘Category 3’ trust corporation. The distinctive feature of these types of trust corporations is that they have no external independent regulatory oversight. The court therefore had to evaluate how far the limited oversight could impact upon an applicant’s suitability to be appointed as a deputy, eventually concluding that Enable & Thrive Ltd, insofar as they were able to give certain undertakings identified in The First Judgment, were a suitable entity to be appointed as the property and affairs deputy for AB. Written by Lauren Gale, associate at Gardner Leader LLP.
PRECEDENTS
These training materials provide an introduction to the key legal issues to consider when drafting and negotiating common clauses negotiated to reach compromise in commercial agreements. The following areas are covered: good faith (what it means, approach of the English courts, express obligations, implied obligations, relational contracts, agreements to negotiate in good faith), endeavours obligations (reasonable endeavours, all reasonable endeavours, best endeavours, what is the difference, what they mean, the balancing test), wilful misconduct (what it means, alternative terminology such as deliberate default, gross negligence, deliberate act and wilful neglect or default) and material breach (what it means, distinction from repudiatory breach and persistent breaches). The training materials include practical top tips on all areas covered for commercial lawyers drafting and negotiating clauses including this language. These training materials are suitable for commercial lawyers advising on business to business agreements. They do not cover business to consumer contracts. At the end of each section of the presentation there
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PI & Clinical Negligence analysis: There are certain exceptions to the general principle that there must be no double recovery for a claimant in respect of benefits flowing as a result of an accident. The less commonly encountered ‘insurance’ and ‘benevolence’ exceptions are discussed in this article, along with the most recent judicial treatment of them in the case of Boyd v Hughes. Written by Georgina Crawford, barrister at Ropewalk Chambers.
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Dispute resolution analysis: On a preliminary issue of jurisdiction before the Court of Session, the court in Scotland held that it had jurisdiction notwithstanding conflicting clauses in two related agreements—a Share Purchase Agreement (‘SPA’) and a Share Pledge and Loan Agreement (SPLA). Each had distinct choice of law and jurisdiction clauses. The question for the court was whether it was seised of jurisdiction or whether the courts of Cyprus had jurisdiction over the subject matter of the dispute. In reaching its decision, the court had to construe the relevant choice of law and jurisdiction clauses and decide which of them applied to the dispute between the parties. Neither party was resident in Scotland or Cyprus and, but for the jurisdiction clauses, neither country would have jurisdiction. Written by Lucy Keane, counsel at Signature Litigation, Gibraltar.
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Law360, Expert analysis: The recent explosion in artificial intelligence (AI) adoption in the workplace has led to the creation of whole new categories of documents, in the form of prompts and AI outputs, as well as more traditional documents that are based on AI outputs. Charlie Morgan, partner, Maura McIntosh, knowledge counsel, and Charlotte Benton, senior associate at Herbert Smith Freehills Kramer LLP, provide guidance on how privilege is likely to apply to AI-related communications and the steps businesses should take to safeguard confidentiality.
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Commercial analysis: The High court judgment in Macdonald Hotels Ltd v Bank of Scotland Plc addressed a number of interesting issues for finance transactions. These included the potential for a Braganza-style term to be implied into a lender's decision to withhold consent to the disposal of assets or the grant of security by the borrower, the nature and legal effect of a prohibition on assignment within a facility agreement where the 'assignor' may have ceased to be an obligor/group member and the status of a document where one party executes it as a simple contract and another as a deed. Annie Harvey, senior knowledge lawyer at Taylor Wessing, discusses the decision.
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Ireland—Employment analysis: This article, was written by A&L Goodbody’s Employment Law Team. In a recent case, the Workplace Relations Commission ordered an employer to pay €64,000 for failing to consider reasonable accommodations and for the discriminatory dismissal of an employee with a disability.
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Immigration analysis: On 4 April 2024 new Immigration Rules introduced a range of significant changes to sponsored employment immigration routes, particularly to the main Skilled Worker route. These changes formed part of the government’s ‘Five-point plan for legal migration’, which aim to reduce net migration to the UK. In this analysis, Ben Maitland, senior associate at Vanessa Ganguin Immigration Law looks at the implications for sponsor employers, and what they and their representatives should be thinking about as they navigate the changes.