Merck is not entitled to a refund of $473 million paid when a tax-avoidance strategy failed, the 3rd Circuit has held. The taxes were paid by Schering-Plough, which Merck acquired in 2009. The court labeled as “chutzpah” Schering’s contention that it was being singled out by the IRS.

Baker & McKenzie has lost a bid to obtain the mental health records of an attorney who sued the law firm for allegedly firing him in violation of the Americans with Disabilities Act.

An Oklahoma woman who alleged that a Catholic bishop subjected her to “severe and pervasive” gender and age discrimination at work is not entitled to protection by federal employment laws, the 10th Circuit has ruled, making it the latest court to weigh in on the issue of the “ministerial exception.” The circuit concluded that the plaintiff’s duties were not just administrative but also spiritual, therefore granting the church immunity from her suit.

Cutting a jury’s emotional damages award by two-thirds, a Pennsylvania federal judge has ruled that a plaintiff who has no evidence of “long-lasting effects” from a brief period of emotional trauma is not entitled to more than $50,000. The ruling also overturns the jury’s award of punitive damages

A law firm is not entitled to collect interest on an arbitration award of fees that accrued because the firm refused to release the funds to a client who balked at signing a waiver of malpractice, a unanimous appeals panel in Manhattan ruled last week in an unsigned opinion. Separately, the panel ruled that arbitrators hearing fee disputes under a court-authorized system have authority to grant interest even though court rules do not address the issue.