Court Digest

Virginia
Federal appeals court upholds ruling that Zion Williamson’s 2019 contract with an agent was void

RICHMOND, Va. (AP) — A federal appeals court has upheld a 2021 ruling that NBA star Zion Williamson’s contract with a marketing agent was void because the agent was not licensed in North Carolina when the two entered an agreement in 2019.

Florida-based agent Gina Ford had sought $100 million from Williamson, claiming the former Duke All-American improperly broke an agreement she had to represent him in endorsement deals.

A federal judge in North Carolina found that Ford was not a licensed agent in that state at the time she entered an agreement with Williamson and that their contract did not comply with key requirements outlined by the state’s sports agent law. The fact she wasn’t licensed shielded Williamson from any penalties associated with breaking the contract.

The 4th U.S. Circuit Court of Appeals agreed with that ruling in an opinion written by Judge Albert Diaz and released Monday.

Williamson played his freshman season at Duke, and the New Orleans Pelicans made him the No. 1 pick in the 2019 NBA draft. Williamson filed a federal lawsuit in North Carolina the month of the draft to terminate a five-year contract with Ford’s agency after moving to Creative Artists Agency LLC.

Maine
Judge dismisses lawsuit by mother who said school hid her teenager’s gender expression

PORTLAND, Maine (AP) — A federal judge dismissed a lawsuit brought by a Maine woman who accused school officials of encouraging her teen’s gender expression by providing a chest binder and using a new name and pronouns, without consulting parents.

U.S. District Judge Jon Levy acknowledged his decision that a mother such as Amber Lavigne “might expect school officials to keep her informed about how her child is navigating matters related to gender identity” but he concluded that she failed to establish legal claims for which the school district could be held liable.

The lawsuit filed last year was the latest to weigh a minor’s right to privacy when confiding in a mental health professional against a parent’s right to supervise their children’s health and education.

According to the lawsuit, a school counselor provided the chest binder and instruction on how to use it. The mother, who has since begun home-schooling her teen, said the school also began calling the 13-year-old by a different name and pronouns.

The lawsuit contended the mother had a “right to control and direct the care, custody, education, upbringing and healthcare decisions of her children,” and that Great Salt Bay Community School in Damariscotta violated her constitutional right by keeping the student’s gender expression from parents.

The judge previously dismissed claims against individual school officials. The remaining claim against the school board was dismissed by the judge in his May 3 order.

New York
State sues anti-abortion groups for promoting false treatments

NEW YORK (AP) — New York is suing an anti-abortion group and almost a dozen pregnancy counseling centers for promoting an unproven method to reverse medication abortions, Attorney General Letitia James announced Monday.

James, a Democrat, sued Heartbeat International and 11 pregnancy centers in state Supreme Court in Manhattan, arguing the groups violated laws around making false or misleading advertisements.

The case follows a similar lawsuit in California and other legal action in states such as Colorado regarding unsubstantiated treatments to reverse medication abortions.

Medication abortion is the most common way to end a pregnancy. The process involves taking two different drugs — mifepristone and misoprostol — days apart.

According to the New York lawsuit, the organizations promote a protocol called the “Abortion Pill Reversal,” in which a person who has taken mifepristone is advised not to take the follow-up of misoprostol and instead is given repeated doses of the hormone progesterone.

The so-called “Abortion Pill Reversal” treatment has not been approved by federal regulators and major medical associations have warned that the protocol is unproven and unscientific, the lawsuit said.

“Abortions cannot be reversed. Any treatments that claim to do so are made without scientific evidence and could be unsafe,” James said in a statement.

Heartbeat International, in a statement, said the lawsuit is “a clear attempt to censor speech.”

Washington
Redfin agrees to pay $9.25M to settle suits over real estate broker commissions

Redfin has agreed to pay $9.25 million to settle federal lawsuits that claim U.S. homeowners were saddled with artificially inflated broker commissions when they sold their home as a result of longstanding real estate industry practices.

The online brokerage and real estate services company disclosed the proposed settlement Monday in a regulatory filing with the Securities and Exchange Commission.

The settlement, which Redfin agreed to Friday, would resolve pending class action lawsuits filed in federal court in the Western District of Missouri, and also shield the company, its subsidiaries and agents from similar cases around the country, according to the filing.

“Resolving this litigation now and removing uncertainty is in the best interest of the company, our employees, and our investors,” the company said in a statement Monday.

Seattle-based Redfin noted that it doesn’t expect the settlement, which must be approved by the court, to have a material impact on its future operations, adding it expects to record a $9.25 million pre-tax charge for the quarter ended March 31.

Shares in Redfin were up 3.7% in afternoon trading Monday.

Redfin is the latest big brokerage to agree to settlement terms in order to put an end to lawsuits related to the real estate industry’s broker compensation structure, following Re/Max, Keller Williams Realty, Compass and Anywhere Real Estate. Last month, HomeServices of America, which is owned by Warren Buffett’s Berkshire Hathaway, agreed to pay $250 million to settle the lawsuits. And in March, the National Association of Realtors agreed to pay $418 million.

All told, the real estate industry has now agreed to pay more than $950 million to make the lawsuits go away.

The lawsuits’ central claim is that the country’s biggest real estate brokerages and the NAR violated antitrust laws by engaging in business practices that required home sellers to pay the fees for the broker representing the buyer.

Attorneys representing home sellers in multiple states argued that homeowners who listed a property for sale on real estate industry databases were required to include a compensation offer for an agent representing a buyer. And that not including such “cooperative compensation” offers might lead a buyer’s agent to steer their client away from any seller’s listing that didn’t include such an offer.

In October, a federal jury in Missouri ordered the National Association of Realtors and several other large real estate brokerages to pay nearly $1.8 billion in damages. The defendants were facing potentially having to pay more than $5 billion, if treble damages were awarded.

The verdict in that case, which was filed in 2019 on behalf of 500,000 home sellers in Missouri and elsewhere, led to multiple similar lawsuits being filed against the real estate brokerage industry.
Georgia

State AG says Savannah overstepped in outlawing guns in unlocked cars

SAVANNAH, Ga. (AP) — Georgia’s attorney general says city officials in Savannah overstepped their authority by making it illegal to leave firearms in unlocked cars.

Savannah’s mayor and city council in April enacted the new city ordinance aimed at making it harder for criminals to steal guns, citing local police statistics showing more than 200 guns reported stolen last year from vehicles that weren’t locked. The law carries maximum penalties of a $1,000 fine and 30 days in jail.

State Attorney General Chris Carr, a Republican, said in a letter to Savannah officials Friday that the gun ordinance runs afoul of a state law that prohibits local governments from regulating “the possession, ownership, transport, (or) carrying” of firearms.

“Because the General Assembly has expressly designated the regulation of firearms as an issue of general, state-wide concern, no local ordinance can regulate firearms,” Carr wrote.

Carr’s letter foreshadows a likely court battle over whether city governments like Savannah’s can impose gun safety measures that have received little support in a state legislature dominated by Republicans. A lawsuit filed in Chatham Count Superior Court last week by a man described as frequent visitor to Savannah asks a judge to halt enforcement of the city’s gun ordinance.

Savannah Mayor Van Johnson said Monday that City Hall isn’t budging. A Democrat and former police officer, Johnson supported the city’s ordinance as a way to make gun owners act responsibly without infringing on their rights to own or carry firearms.

“We certainly encourage our citizens to exercise their Second Amendment rights,” Johnson said in a statement Monday, “but this ordinance remains in effect and will continue to be enforced.”

Savannah’s city council voted unanimously April 11 to require parked vehicles to be locked when guns are stored inside and to require people to report gun thefts to police within 24 hours. No one spoke against the ordinance during a public comment period at City Hall, where it was supported by members of Moms Demand Action for Gun Sense in America.

According to Savannah police, there were 244 guns reported stolen from vehicles last year and 203 of them were taken from unlocked cars. Police have reported a similar number so far this year, with 56 of 69 thefts coming from unlocked cars.

Before Savannah took action, gun control advocates earlier this year failed to persuade state lawmakers to adopt a $300 state income tax credit to pay for gun locks, gun safes and safety classes.

In his letter, Carr noted that Georgia courts have struck down prior gun restrictions imposed by local governments. He cited a 2007 ruling by the Georgia Court of Appeals that overturned a Coweta County ordinance prohibiting firearms at sports fields and other recreational facilities operated by the county.

Carr’s letter warned city officials they could face civil liability for enforcing it.

“Given this concern alone, it appears that the City should give immediate consideration to rescinding its approval” of the gun ordinance, Carr said.