Yesterday, our Beau Jackson, Robert Stang and Linda Tiller joined manufacturers, distributors and service providers in Kansas City for a discussion about the impact of tariffs on the business community. This insightful program included economic, industry and legal perspectives on current trade conditions and the various implications of recently-imposed tariffs. Pictured at right, Beau Jackson closed the event with these key takeaways:

  1. The United States is 80% a “consumer” economy – compared to a global average of approximately 40% (and 60% in Germany). Yet, U.S. trade policy seems to focus on raw materials and industrial manufacturing, rather than consumer-driven considerations.
  2. Finding qualified labor is a much more pressing and difficult issue for manufacturers than tariffs or trade policy
  3. Rising logistics and supply chain costs have become just as troublesome to companies as tariffs
  4. Carrier consolidation and new alliances in the shipping industry continue to adversely impact companies that import and export, and is complicating matters at U.S. ports of entry
  5. Tariff avoidance led to an import surge in late 2018, which furthered port congestion, inflated storage costs and has created large inventory surpluses that could soon have macroeconomic implications
  6. Supply Chain “Recalibration” – companies  and sourcing agents are trying to avoid China by finding new sources in Southeast Asia (particularly Vietnam and the Philippines)
  7. The recent government shutdown had a tangible impact on the day-to-day fundamentals of trade
  8. Good infrastructure, just like product quality and reputation, has been instrumental in fostering a robust U.S. economy.  Modernizing infrastructure is a must for the U.S. to remain competitive.

 

According to Lex Machina’s 2018 Trade Secret Litigation Report, the number of trade secret cases pursued in U.S. federal courts has increased rapidly since the 2016 enactment of the Defend Trade Secrets Act (DTSA), which granted federal court subject matter jurisdiction over claims raised under the Act. Last year provided a number of interesting precedential decisions on various topics within the realm of trade secrets law, many of which will no doubt shape litigation tactics (and expectations) going forward. One decision of particular note came from the Federal Circuit Court of Appeals addressed to the issue of whether unjust enrichment claims were entitled to a jury determination.  Although the case did not specifically deal with claims raised under the DTSA, it nonetheless could impact who is entitled to determine certain types of monetary remedies requested in trade secret cases.

Continue Reading Be Careful What You Ask For: Unjust Enrichment in Trade Secret Misappropriation

Even though the FAA Federal Aviation Administration (“FAA”) was hamstrung during the partial government shutdown, the Administration released two draft documents that will soon be published in the Federal Register. Both rulemaking documents would relax regulations on the use of small unmanned aerial systems (“UAS”) for commercial purposes under 14 Code of Federal Regulations Part 107 (“Part 107”).

Continue Reading The FAA Takes Two More Steps Towards UAS Integration

On Monday, the Missouri Supreme Court issued an order sustaining Johnson & Johnson’s (“J&J”) last-minute Petition for writ of prohibition to stay the trial in Vickie Forrest et al. v. Johnson & Johnson et al., Cause No.1522-CC00419-01, pending in the in the Circuit Court of the City of St. Louis, Missouri.  Although the Supreme Court sets forth no reasoning for the stay in its one paragraph en banc order, the trial, which was set to start on January 22, 2019, will not take place until the Court weighs in on J&J’s argument that conducting a single trial of multiple claims from multiple Plaintiffs – most of whom had potentially been improperly joined – is unfair to the defendants and even potentially in violation of J&J’s constitutional due process rights. State ex rel. Johnson & Johnson et al. v. The Honorable Rex M. Burlison, Cause No. SC97637. The Forrest case is one of an onslaught of talc cancer cases brought in the St. Louis City Circuit Court on behalf of multiple plaintiffs against J&J.  Forrest, and twelve other women, are alleging that their different subtypes of ovarian or gynecological cancers were caused by their use of J&J’s talcum powder products, which allegedly contained asbestos. Continue Reading MO Supreme Court Grants J& J’s Writ of Prohibition in Talc Cancer Case

environment chemicalsCalifornia’s Office of Environmental Health Hazard Assessment (OEHHA) has proposed further amendments to clarify the new Prop 65 regulations that went into effect August 30, 2018, which focused on how to provide “clear and reasonable” warnings under Prop 65. Under the new regulations, manufacturers, producers, packagers, importers, suppliers, and distributors have primary responsibility for complying with Prop 65 requirements; and retail sellers have responsibility for placement and maintenance of consumer product exposure warnings only in limited situations. OEHHA’s latest proposed amendments clarify parties’ responsibilities along the often complex supply chain: Continue Reading California Proposes Additional Amendments for Proposition 65 Regulations

 

Toxic Tort Monitor

December 18, 2018 | Editor: Jen Dlugosz | Assistant Editor: Natalie Holden
New Developments
This will be our final Toxic Tort Monitor for 2018. Thank you for continuing to subscribe to these updates. We wish you all happy holidays. Have a joyful new year!
Cook County Jury Returns a Defense Verdict in Mesothelioma Trial
By Andrew Hahn

On December 14, 2018, a Cook County jury returned a verdict in favor of defendant Welco in a mesothelioma trial. Welco was the only remaining defendant at trial. Plaintiffs argued that decedent, a career member of the drywall trade, worked with Welco products for one month in 1965 in Chicago, Illinois. Plaintiffs further argued that Welco was negligent for its failure to warn its consumers of the dangers of asbestos in its joint compound. [Continue Reading]

Department of Justice Continues to Prioritize Asbestos Trust Fraud
By

Over the last few months, the Department of Justice (DOJ) has signaled that fighting fraud, waste, and abuse in asbestos trusts is a priority. Our previous article on this subject highlighted DOJ’s September 13, 2018 Statement of Interest filed in the bankruptcy case of Kaiser Gypsum Company, which asserted that the proposed trust plans lack adequate safeguards and indicated that DOJ would object unless the final plan better ensures transparency and prevents fraud. Since that filing, DOJ has continued to intervene in asbestos trust proceedings. [Continue Reading]

Toxic Tort Monitor Archive
October/November 2018

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Companies face increasingly well‐coordinated attacks in jurisdictions across the country. These assaults are becoming more complex and costly as plaintiffs’ counsel pursue novel theories and claims to keep asbestos litigation thriving. Husch Blackwell’s team has experience in numerous jurisdictions throughout 37 states. Our attorneys can help you navigate the intricate web of plaintiffs’ firms, changing laws, evolving science and anti-defendant courts. [More information]

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In today’s trade climate, its imperative to stay abreast of changes that impact business. Keeping current can be a challenge for any company moving goods across borders.

Husch Blackwell’s International Trade & Supply Chain team is excited to launch a new resource for original insight. Our new blog provides timely and accurate information, drawing on years of collective legal knowledge at key regulatory agencies so that you understand what changes mean for your business. Our blog addresses compliance concerns, international agreements, news and insights on trends, laws, deadlines and events.

Subscribe to International Trade Insights today to receive the latest in trade policy and international updates.

 

On Saturday, December 1, 2018, President Trump and Chinese President Xi Jinping met to discuss trade relations between the two countries. Following their meeting, President Trump indicated that he would postpone increasing the tariff rate to 25% on certain Chinese goods worth up to $200 billion currently covered under Section 301 List 3. This increase was originally slated for January 1, 2019 (see our previous post here).  The 10% duties on that $200 million in goods will remain in effect, however, as will the 25% tariffs on the goods worth about $50 billion, which appear on the first and second list of additional duties. According to the White House press statement, the parties agreed to “endeavor” on a 90-day period, until March 1, 2019, to discuss the restructuring of China’s trade policies and come to an agreement. Continue Reading President Trump Holds Off on Increase of Section 301 Tariffs

The Department of Commerce published its opportunity to request annual review of Antidumping and Countervailing Duty Orders with anniversary months in December.

Please see here for the published Federal Register.  Contact Jeffrey Neeley, Nithya Nagarajan, or Stephen Brophy if your company is affected by these reviews.