LexisNexis® Legal Newsroom
Mealey's Insurance - 2nd Circuit Panel Affirms Dismissal Of Claims In Reinsurer's Bad Faith Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on June 30 affirmed a federal district court's dismissal of an insurance breach of contract and bad faith lawsuit, ruling that it agreed with the district court's findings in coming to its decision (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey Varga and Jess Shakespeare, in their capacities as Liquidators thereof v. American Family Mutual Insurance Company, et al., No. 14-4062, 2nd Cir.).

Mealey's Insurance - Judge Won't Grant Summary Judgment In Bad Faith Lawsuit

DENVER - An insured has not shown that his federal bankruptcy court and district court positions in an insurance bad faith lawsuit are clearly inconsistent, a federal judge in Colorado ruled June 23 in denying an insurer's motion for summary judgment in the district court action (Daniel L. Porter v. American Family Mutual Insurance Co., No. 13-3446, D. Colo.; 2015 U.S. Dist. LEXIS 81301).

Mealey's Labor & Employment - Split 3rd Circuit: Fired Employee Must Be Allowed To Correct Medical Certification

PHILADELPHIA - A worker who was fired for taking time off after she submitted a request for intermittent leave under the Family and Medical Leave Act (FMLA) should be given the chance to cure any deficiencies in her medical certification, a Third Circuit U.S. Court of Appeals panel ruled June 22, reversing a trial court's decision (Deborah Hansler v. Lehigh Valley Hospital Network, No. 14-1772, 3rd Cir.; 2015 U.S. App. LEXIS 10444).

Mealey's Banking & Finance - Panel Reverses Ruling That Coverage Exists For Firm's 'Fictitious Madoff Gains'

NEW YORK - A New York appeals panel on June 18 held that a financial institution bond's requirement that a loss be attributable to a defrauder acting solely in his or her capacity as an investment adviser was not satisfied, reversing and remanding a lower court's finding that an insurer has a duty to insure a loss arising from Bernard Madoff fictitious reporting of the value of an investment management company's assets (Jacobson Family Investments Inc., et al. v National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 14802, 601325/10, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 5175).

Mealey's Insurance - Panel Reverses Ruling That Coverage Exists For Firm's 'Fictitious Madoff Gains'

NEW YORK - A New York appeals panel on June 18 held that a financial institution bond's requirement that a loss be attributable to a defrauder acting solely in his or her capacity as an investment adviser was not satisfied, reversing and remanding a lower court's finding that an insurer has a duty to insure a loss arising from Bernard Madoff fictitious reporting of the value of an investment management company's assets (Jacobson Family Investments Inc., et al. v National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 14802, 601325/10, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 5175).

Mealey's Insurance - Panel: Alleged Misconduct Is Excluded From Directors, Officers Liability Coverage

ATLANTA - The 11th Circuit U.S. Court of Appeals on June 22 affirmed a lower federal court's finding that there is no directors and officers liability insurance coverage for beneficiaries' claims against their family-owned corporation and two family members who served as directors or officers of the corporation and as trustees of the family trust (The Langdale Co. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 14-12723, 11th Cir.; 2015 U.S. App. LEXIS 10419).

Mealey's PI/Product Liability - Illinois Appeals Court Won't Reconsider Dismissal Of Malpractice Suit

SPRINGFIELD, Ill. - A state appeals court on June 17 denied reconsideration of its finding that the discovery rule does not apply to a wrongful death and survival action filed by the family of a woman who died of postsurgical complications (Randall W. Moon v. Clarissa F. Rhode, et al., No. 3-13-0613, Ill. App., 3rd Dist.).

Mealey's Insurance - Panel Dismisses Bad Faith Claim For Policyholders' Failure To Show Collapse

WAUSAU, Wis. - Insureds failed to prove that their house collapsed during construction and, thus, that there was an underlying breach of the insurance contract by their insurer for denying coverage, a Wisconsin appeals panel ruled June 2, affirming dismissal of the insureds' bad faith claim (Joseph M. Oboikovitz and Vicki A. Oboikovitz v. American Family Mutual Insurance Co., No. 2014AP1065, Wis. App., Dist. 3; 2015 Wisc. App. LEXIS 403).

Mealey's Bankruptcy - Bankruptcy Court Closes United Gilsonite Laboratories' Chapter 11 Case

WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL), the maker of home improvement products Drylock sealant and ZAR wood finish, emerged from Chapter 11 protection on May 28 with the issuance by a Pennsylvania federal bankruptcy judge of a final decree, closing a case filed four years ago to protect the family-owned business from asbestos personal injury claims (In re: United Gilsonite Laboratories, 11-2032, M.D. Pa. Bkcy.).

Mealey's Insurance - Panel Remands For New Trial To Determine Insureds' Replacement Costs For Fire

KANSAS CITY, Mo. - An insurance policy's language referring to the limits of coverage and the replacement cost of the dwelling is ambiguous, a Missouri appeals panel ruled May 19, reversing and remanding for a new trial to determine whether insureds are entitled to the full replacement cost of their destroyed home (Derek Wilson and Jennifer Wilson v. American Family Mutual Insurance Co., No. WD77396, Mo. App., Western Dist.; 2015 Mo. App. LEXIS 552).

Mealey's Insurance - Panel: Insured's Notice Delay Of Faulty Work Claim Prejudiced Insurer

ST. LOUIS - An insurer was prejudiced by an insured's delay in filing its notice of loss with regard to alleged defective workmanship in a roof, the 10th Circuit U.S. Court of Appeals affirmed May 14 (8865 North Cove v. American Family Mutual Insurance Co., No. 14-4086, 10th Cir.; 2015 U.S. App. LEXIS 7938).

Mealey's Litigation Procedure - Judge: No Evidentiary Basis Warranting Dismissal Of Superstorm Sandy Coverage Suit

NEWARK, N.J. - A New Jersey federal judge on May 12 denied an insurer's motion to dismiss a Superstorm Sandy coverage dispute, finding that the insurer presented no admissible evidence supporting its contention that the insureds' attorney violated discovery and scheduling orders (Peter Blaso & Demeglio Family v. Alterra Excess & Surplus Insurance Co., No. 14-2574 [WHW-CLW], D. N.J.; 2015 U.S. Dist. LEXIS 61869).

Mealey's Insurance - Judge: No Evidentiary Basis Warranting Dismissal Of Superstorm Sandy Coverage Suit

NEWARK, N.J. - A New Jersey federal judge on May 12 denied an insurer's motion to dismiss a Superstorm Sandy coverage dispute, finding that the insurer presented no admissible evidence supporting its contention that the insureds' attorney violated discovery and scheduling orders (Peter Blaso & Demeglio Family v. Alterra Excess & Surplus Insurance Co., No. 14-2574 [WHW-CLW], D. N.J.; 2015 U.S. Dist. LEXIS 61869).

Mealey's PI/Product Liability - Aerial Lift Not Unreasonably Dangerous, Split Texas Supreme Court Rules

AUSTIN, Texas - An aerial lift that tipped over, killing a worker, was not unreasonably dangerous, the Texas Supreme Court ruled May 8, reversing a ruling by the state Court of Appeals upholding a jury verdict for the family of the worker (Genie Industries Inc. v. Ricky Matak, et al., No. 13-0042, Texas Sup.).

Mealey's PI/Product Liability - Chrysler Asks Georgia Court For New Trial Of Suit Resulting In $150 Million Award

BAINBRIDGE, Ga. - A jury's $150 million award to the family of a 4-year-old boy who died in a fire after the 1999 Jeep Grand Cherokee in which he was riding was involved in a rear-end collision is "arbitrary, irrational and grossly excessive," Chrysler Group LLC argues in a motion for a new trial filed May 7 in the Decatur County, Ga., Superior Court (James B. Walden, et al. v. Chrysler Group LLC, No. 12-CV-472, Ga. Super., Decatur Co.).

Mealey's Litigation Procedure - Judge Denies Motion To Compel Documents In Insurance Bad Faith Suit

TACOMA, Wash. - A federal judge in Washington on May 5 denied a motion to compel production of certain documents in an insurance breach of contract and bad faith lawsuit, ruling that the documents the insureds seek to obtain are protected (Bret C. Kifer, et al. v. American Family Mutual Insurance Co., No. 13-6085, W.D. Wash.; 2015 U.S. Dist. LEXIS 58905).

Mealey's Insurance - Judge Denies Motion To Compel Documents In Insurance Bad Faith Suit

TACOMA, Wash. - A federal judge in Washington on May 5 denied a motion to compel production of certain documents in an insurance breach of contract and bad faith lawsuit, ruling that the documents the insureds seek to obtain are protected (Bret C. Kifer, et al. v. American Family Mutual Insurance Co., No. 13-6085, W.D. Wash.; 2015 U.S. Dist. LEXIS 58905).

Mealey's PI/Product Liability - Florida Judge Enters Mistrial In Engle Suit After Witness Changes Testimony On Stand

BRADENTON, Fla. - A Florida state court judge declared a mistrial May 5 in a suit by the family of a smoker who died of coronary artery disease at age 45, citing the failure of the plaintiffs to inform the court that a key witness had changed his testimony part way through the trial (Madonna Dupre, et al. v. R.J. Reynolds Tobacco Co., et al., No. 2011CA005529, Fla. 12th Jud. Cir., Manatee Co.).

Mealey's PI/Product Liability - Florida Jury Awards $6.3M To Family Of Smoker Who Died Of Lung Cancer

JACKSONVILLE, Fla. - A state court jury awarded more than $6.3 million May 1 to the family of a longtime smoker who died of lung cancer but declined to award punitive damages against defendant Philip Morris USA Inc. (Mary Brown, as Personal Representative of the Estate of Rayfield Brown, et al. v. Philip Morris USA Inc., No. 2008-CA-015000, Fla. 4th Jud. Cir., Duval Co.).

Mealey's PI/Product Liability - Family Of NFL Player Seeks Transfer Of Suit To California Federal Court

PHILADELPHIA - The family of former professional football player Junior Seau on April 22 asked the federal judge overseeing the multidistrict litigation against the National Football League to schedule a status conference to discuss their request to transfer their wrongful death action to the U.S. District Court for the Southern District of California (In re: National Football League Players' Concussion Injury Litigation, MDL No. 2323, No. 12-md-2323, E.D. Pa.; Seau, et al. v. National Football League, et al., No. 13-cv-01531, E.D. Pa.).

Mealey's Litigation Procedure - 3rd Circuit: Store Manager Failed To Show He Was Owed Overtime

PHILADELPHIA - The store manager of a discount retailer failed prove that he was improperly denied overtime wages, the Third Circuit U.S. Court of Appeals ruled April 9, upholding a trial court (Albert Itterly, et al. v. Family Dollar Stores, Inc., et al., No. 14-1274, 3rd Cir.; 2015 U.S. App. LEXIS 5751).

Mealey's Labor & Employment - 3rd Circuit: Store Manager Failed To Show He Was Owed Overtime

PHILADELPHIA - The store manager of a discount retailer failed prove that he was improperly denied overtime wages, the Third Circuit U.S. Court of Appeals ruled April 9, upholding a trial court (Albert Itterly, et al. v. Family Dollar Stores, Inc., et al., No. 14-1274, 3rd Cir.; 2015 U.S. App. LEXIS 5751).

Mealey's PI/Product Liability - Law Of Mexico Applies To Suit Over Helicopter Crash, Delaware High Court Rules

DOVER, Del. - The law of Mexico applies to a suit brought by family members of the crew and passengers who died in the crash of a Bell B-212 helicopter in Mexico, the Delaware Supreme Court ruled April 6 (Bell Helicopter Textron Inc., et al. v. Andres Arteaga, et al., No. 333, 2014, Del. Sup.; 2015 Del. LEXIS 176).

Mealey's PI/Product Liability - Georgia Jury Awards $150M To Parents Of Boy Killed When Jeep's Gas Tank Ignited

BAINBRIDGE, Ga. - A state court jury on April 2 awarded $150 million to the family of a 4-year-old boy who died in a fire after the 1999 Jeep Grand Cherokee in which he was riding was involved in a rear-end collision (James B. Walden, et al. v. Chrysler Group LLC, No. 12-CV-472, Ga. Super., Decatur Co.).

Mealey's Insurance - Judge: Insurer Has No Duty To Defend, Indemnify Costs From Faulty Work

CHICAGO - A contractor's insurer has no duty to defend or indemnify a subrogated homeowners insurer for damages caused by the contractor's alleged defective workmanship, an Illinois federal judge ruled March 31 (AMCO Insurance Co. v. Northern Heritage Builders LLC and American Family Insurance Co., No. 12-09071, N.D. Ill.; 2015 U.S. Dist. LEXIS 41341).