LexisNexis® Legal Newsroom
Mealey's Labor & Employment - ERISA Claims Related To Securities Lending Program May Continue, Judge Rules

CHICAGO - A federal judge in Chicago on Feb. 6 refused to dismiss claims that the Bank of New York Mellon Corp. breached its fiduciary duties under the Employee Retirement Income Security Act by investing multiemployer pension and welfare funds' assets in notes issued by Lehman Brothers Holding Co. Inc. prior to Lehman's declaring bankruptcy (The International Brotherhood of Teamsters Union Local No. 710 Pension Fund, et al. v. The Bank of New York Mellon Corporation, et al., No. 13-1844, N.D. Ill.; 2014 U.S. Dist. LEXIS 15246).

Mealey's Litigation Procedure - ICSID Chairman Rejects Argentina's Request To Disqualify Arbitrators

WASHINGTON, D.C. - The chairman of an administrative council for the International Centre for Settlement of Investment Disputes (ICSID) on Feb. 7 released a decision denying a request by the Argentine Republic to disqualify two arbitrators, finding that their decisions in a procedural order did not show a manifest lack of impartiality (Abaclat and others v. The Argentine Republic, No. ARB/07/05, ICSID).

Mealey's Toxic Tort/Environmental - Federal Judge Sends Debtors' $1.6B Asbestos Liability Ruling To 3rd Circuit

WILMINGTON, Del. - A Delaware federal judge on Feb. 7 certified appeals by Chapter 11 debtors Specialty Products Holding Corp. and Bondex International Inc. of a ruling estimating the companies' asbestos liability at $1.6 billion for immediate appeal to the Third Circuit U.S. Court of Appeals (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy. $(Specialty Products Holding Corp. and Bondex International Inc. v. Official Committee of Asbestos Personal Injury Claimants, et al., Nos. 13-1244, 13-1245, D. Del.$)).

Mealey's PI/Product Liability - Federal Judge Sends Debtors' $1.6B Asbestos Liability Ruling To 3rd Circuit

WILMINGTON, Del. - A Delaware federal judge on Feb. 7 certified appeals by Chapter 11 debtors Specialty Products Holding Corp. and Bondex International Inc. of a ruling estimating the companies' asbestos liability at $1.6 billion for immediate appeal to the Third Circuit U.S. Court of Appeals (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy. $(Specialty Products Holding Corp. and Bondex International Inc. v. Official Committee of Asbestos Personal Injury Claimants, et al., Nos. 13-1244, 13-1245, D. Del.$)).

Mealey's Bankruptcy - Federal Judge Sends Debtors' $1.6B Asbestos Liability Ruling To 3rd Circuit

WILMINGTON, Del. - A Delaware federal judge on Feb. 7 certified appeals by Chapter 11 debtors Specialty Products Holding Corp. and Bondex International Inc. of a ruling estimating the companies' asbestos liability at $1.6 billion for immediate appeal to the Third Circuit U.S. Court of Appeals (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy. $(Specialty Products Holding Corp. and Bondex International Inc. v. Official Committee of Asbestos Personal Injury Claimants, et al., Nos. 13-1244, 13-1245, D. Del.$)).

Mealey's Litigation Procedure - Judge Sets Limitations On Testimony About Internal Benzene Study

DETROIT - Witnesses for Safety-Kleen Systems Inc. may testify about an internal benzene-content study of its 105 Solvent to the extent it explains actions they took, a U.S. magistrate judge in Michigan said in a Feb. 4 order regarding the upcoming trial of the widow of a Ford Motor Co. mechanic, but the study must survive Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579 $(1993$)) scrutiny if the company wants to draw any scientific conclusions from it (Judith A. Hendrian v. Safety-Kleen Systems, Inc., No. 08-14371, E.D. Mich., Southern Div.).

Mealey's Toxic Tort/Environmental - Judge Sets Limitations On Testimony About Internal Benzene Study

DETROIT - Witnesses for Safety-Kleen Systems Inc. may testify about an internal benzene-content study of its 105 Solvent to the extent it explains actions they took, a U.S. magistrate judge in Michigan said in a Feb. 4 order regarding the upcoming trial of the widow of a Ford Motor Co. mechanic, but the study must survive Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579 $(1993$)) scrutiny if the company wants to draw any scientific conclusions from it (Judith A. Hendrian v. Safety-Kleen Systems, Inc., No. 08-14371, E.D. Mich., Southern Div.).

Mealey's Antitrust/Unfair Competition - 9th Circuit Affirms Dismissal Of Prius Mileage Competition Law Case

PASADENA, Calif. - There was nothing deceptive in an automaker's use of Environmental Protection Agency mileage estimates, and the California unfair competition law (UCL) imposes no duty to disclose lower, internal estimates, a Ninth Circuit U.S. Court of Appeals panel held Feb. 5 (Tracy Gray, et al. v. Toyota Motor Sales U.S.A. Inc., Toyota Motor North America Inc., No. 12-55362, 9th Cir.).

Mealey's Labor & Employment - United's Sick Leave Plan Is Not ERISA Plan, California Court Rules

SAN FRANCISCO - United Airlines Inc.'s sick leave plan and trust is not an employee benefits plan governed by the Employee Retirement Income Security Act and, therefore, is subject to California's Kin Care Law, which requires employers who provide paid sick leave to their employees to use sick leave to care for family members, a California appellate court ruled Jan. 31 (Airline Pilots Association International, et al. v. United Airlines, Inc., No. A129914, Calif. App., 1st App. Dist., Div. 4; 2014 Cal. App. LEXIS 100).

Mealey's Litigation Procedure - PCA Orders Bolivia To Pay U.K. Investor $28 Million In Damages

THE HAGUE, Netherlands - A tribunal for the Permanent Court of Arbitration (PCA) on Jan. 31 ordered that the Plurinational State of Bolivia pay a U.K. company $28,927,582 in damages in an arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL), finding that Boliva expropriated its investment in an electric company (Guaracachi America, Inc. and Rurelec PLC v. The Plurinational State of Bolivia, PCA Case No. 2011-17, PCA).

Mealey's Litigation Procedure - Federal Judge Confirms $8.73 Million Award For Mining Corporation

DENVER - A Colorado federal judge on Feb. 3 entered a final judgment granting a petition to confirm a $8,739,338 international arbitration award, plus costs and interest, issued in favor of two mining entities in a dispute over mining rights in Bolivia (Minera San Cristobal S.A., et al. v. Washington Group Bolivia S.R.L., et al., No. 13-cv-2418, D. Colo.; 2014 U.S. Dist. LEXIS 12131).

Mealey's Banking & Finance - Tuscany International Files For Chapter 11 Bankruptcy, Seeks $70M Financing Deal

WILMINGTON, Del. - Oil and gas drilling company Tuscany International Holdings (USA) Ltd. (TIH) on Feb. 2 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and sought a total of $70 million in post-petition financing, consisting of $35 million in debtor-in-possession (DIP) financing and $35 million in what is referred to as a "roll up of pre-petition debt" (In Re: Tuscany International Holdings [USA] Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).

Mealey's Bankruptcy - Tuscany International Files For Chapter 11 Bankruptcy, Seeks $70M Financing Deal

WILMINGTON, Del. - Oil and gas drilling company Tuscany International Holdings (USA) Ltd. (TIH) on Feb. 2 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and sought a total of $70 million in post-petition financing, consisting of $35 million in debtor-in-possession (DIP) financing and $35 million in what is referred to as a "roll up of pre-petition debt" (In Re: Tuscany International Holdings $(USA$) Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).

Mealey's Labor & Employment - New York Federal Judge: Court Retains Jurisdiction Over State Wage Claims

NEW YORK - A federal court has original jurisdiction over New York state law wage claims filed by a class of adult entertainers based on the Class Action Fairness Act (CAFA), a New York federal judge ruled Jan. 28 (Sabrina Hart, et al. v. Rick's NY Cabaret International, Inc., et al., No. 09-3043, S.D. N.Y.; 2014 U.S. Dist. LEXIS 10346).

Mealey's Banking & Finance - 2nd Circuit: Goldman Sachs Not A Statutory Insider Under Federal Securities Law

NEW YORK - A federal district court did not err in dismissing a shareholder derivative lawsuit because the shareholder failed to show that The Goldman Sachs Group Inc. was a "statutory insider" at the time of the sale and purchase of certain short call options, a Second Circuit U.S. Court of Appeals panel ruled Jan. 29 (Andrew E. Roth, derivatively on behalf of Leap Wireless International Inc., v. The Goldman Sachs Group Inc., et al., No. 12-2509, 2nd Cir.).

Mealey's Litigation Procedure - Arbitrator Resigns From ICSID Treaty Dispute Against Republic Of Chile

WASHINGTON, D.C. - An arbitrator's letter resigning from an arbitration dispute between investors and the Republic of Chile in a case before the International Centre for Settlement of Investment Disputes (ICSID) was made public on Jan. 29 (Victor Pey Casado and Foundation Presidente Allende v. Republic of Chile, No. ARB/98/2, ICSID).

Mealey's Litigation Procedure - New York Federal Judge: Court Retains Jurisdiction Over State Wage Claims

NEW YORK - A federal court has original jurisdiction over New York state law wage claims filed by a class of adult entertainers based on the Class Action Fairness Act (CAFA), a New York federal judge ruled Jan. 28 (Sabrina Hart, et al. v. Rick's NY Cabaret International, Inc., et al., No. 09-3043, S.D. N.Y.; 2014 U.S. Dist. LEXIS 10346).

Mealey's Securities/D&O Liability - 2nd Circuit: Goldman Sachs Not A Statutory Insider Under Federal Securities Law

NEW YORK - A federal district court did not err in dismissing a shareholder derivative lawsuit because the shareholder failed to show that The Goldman Sachs Group Inc. was a "statutory insider" at the time of the sale and purchase of certain short call options, a Second Circuit U.S. Court of Appeals panel ruled Jan. 29 (Andrew E. Roth, derivatively on behalf of Leap Wireless International Inc., v. The Goldman Sachs Group Inc., et al., No. 12-2509, 2nd Cir.).

Mealey's Banking & Finance - 2nd Circuit Panel Affirms Dismissal Of AIG Bailout Lawsuit

NEW YORK - A federal judge in New York did not err in dismissing a shareholder's securities lawsuit against the Federal Reserve Bank of New York (FRBNY) because its acquisition of American International Group (AIG) during the financial crisis did not violate Delaware fiduciary duty law, a Second Circuit U.S. Court of Appeals panel ruled Jan. 29 (Starr International Co. Inc., individually and derivatively on behalf of American International Group Inc. v. Federal Reserve Bank of New York, et al., No. 12-5022, 2nd Cir.).

Mealey's IP/Tech - South Dakota Federal Judge Agrees To Stay Patent Litigation

SIOUX FALLS, S.D. - A defendant won a second stay of patent litigation on Jan. 29 in light of an ex parte re-examination by the U.S. Patent and Trademark Office (PTO) (Hansen Manufacturing Corp. v. Intersystems International Inc., No. 11-4030, D. S.D.).

Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Dismissal Of AIG Bailout Lawsuit

NEW YORK - A federal judge in New York did not err in dismissing a shareholder's securities lawsuit against the Federal Reserve Bank of New York (FRBNY) because its acquisition of American International Group (AIG) during the financial crisis did not violate Delaware fiduciary duty law, a Second Circuit U.S. Court of Appeals panel ruled Jan. 29 (Starr International Co. Inc., individually and derivatively on behalf of American International Group Inc. v. Federal Reserve Bank of New York, et al., No. 12-5022, 2nd Cir.).

Mealey's Litigation Procedure - Rocky Flats Class Denied Opportunity To Pursue State Law Radiation Claims

DENVER - Neighbors of the Rocky Flats Nuclear Weapons Plant in Colorado may not pursue state law tort claims against the contractors who operated the plant because the claims are preempted by the Price-Anderson Act, the federal judge presiding over the litigation ruled Jan. 28 (Merilyn Cook, et al. v. Rockwell International Corp., et al., No. 90-181, D. Colo.).

Mealey's Toxic Tort/Environmental - Rocky Flats Class Denied Opportunity To Pursue State Law Radiation Claims

DENVER - Neighbors of the Rocky Flats Nuclear Weapons Plant in Colorado may not pursue state law tort claims against the contractors who operated the plant because the claims are preempted by the Price-Anderson Act, the federal judge presiding over the litigation ruled Jan. 28 (Merilyn Cook, et al. v. Rockwell International Corp., et al., No. 90-181, D. Colo.).

Mealey's Antitrust/Unfair Competition - 5 Of 6 Claims Against Garmin Over Battery Life Survive Dismissal

KANSAS CITY, Kan. - A Kansas federal judge on Jan. 24 agreed to dismiss only one of six claims in a class action suit accusing Garmin International Inc. and Garmin U.S.A. Inc. of manufacturing and selling global positioning systems (GPS) with defective batteries that don't last more than two years (Brian Meyers, et al. v. Garmin International, Inc., et al., No. 13-2416, D. Kan.; 2014 U.S. Dist. LEXIS 8616).

Mealey's Labor & Employment - U.S. High Court Denies Appeal Of Suit Over NLRB's Jurisdiction

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 27 declined to accept the petition for writ of certiorari filed by Amerijet International Inc. challenging the 11th Circuit U.S. Court of Appeals' ruling upholding the National Labor Relations Board's (NLRB) jurisdiction to conduct a preliminary investigation of an unfair labor practice charge filed by the union representing the employer's cargo handlers (Amerijet International, Inc. v. National Labor Relations Board, et al., No. 13-663, U.S. Sup.; 2014 U.S. LEXIS 835).