LexisNexis® Legal Newsroom
    2nd Circuit Upholds Denial Of Insurance Salesperson's Overtime Request

    NEW YORK - An insurance program salesperson failed to prove that she was denied overtime in violation of federal and state laws, the Second Circuit U.S. Court of Appeals ruled Aug. 5 (Ramona Dejesus v. HF Management Services, LLC, No. 12-4565, 2nd Cir.; 2013 U.S. App. LEXIS 16105).

    Summary Judgment Motions Partially Granted, Denied In Health Care Payment Dispute

    PORTLAND, Ore. - An Oregon federal magistrate judge on Aug. 5 partially granted and partially denied summary judgment motions made by both parties in a health care payment dispute between a health care provider and a health insurer and plan administrator (Robert Metcalf v. Blue Cross Blue Shield of Michigan, et al., No. 11-1305, D. Ore.; 2013 U.S. Dist. LEXIS 109641).

    Federal Circuit: No Authority To Award Attorney Fees In Back Pay Dispute

    WASHINGTON, D.C. - The Federal Circuit U.S. Court of Appeals on Aug. 5 denied a request for attorney fees under the Back Pay Act, 5 U.S. Code Section 5596, and Federal Circuit Rule 47.7, finding that the court lacks the statutory authority to make such an award under the Back Pay Act to employees of the Federal Aviation Administration (FAA) (Jane L. Gallo v. Department of Transportation, No. 2011-3094, Fed. Cir.; 2013 U.S. App. LEXIS 16085).

    9th Circuit Amends Discussion Of Review Standard In ERISA Cases

    SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Aug. 1 amended a March 21 opinion that ruled that revenue sharing between mutual funds and a 401(k) plan's administrative service provider did not violate the plan or the Employee Retirement Income Security Act, explaining the appropriate standard of review (Glenn Tibble, et al. v. Edison International, et al., Nos. 10-56406, 10-56415, 9th Cir.; 2013 U.S. App. LEXIS 16050).

    Defendants Denied Summary Judgment In Health Care Denial Of Benefits Suit

    PHILADELPHIA - A Pennsylvania federal judge on Aug. 2 denied a motion for summary judgment made by a health insurer and plan provider in a care denial of benefits suit (Debra L. Rubin v. AmeriHealth Administrators Inc., et al., No. 12-3719, E.D. Pa.; 2013 U.S. Dist. LEXIS 108579).

    3rd Circuit Orders Reconsideration Of Certification In Extended Warranty Dispute

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Aug. 2 granted an interlocutory appeal filed by Wal-Mart Stores Inc. and vacated class certification in a dispute over extended warranty plans, ordering that certification must be considered once more in light of a recent decision exploring Federal Rule of Civil Procedure 23's class definition, ascertainabilty and numerosity requirements (William Hayes v. Wal-Mart Stores, Inc., et al., No. 12-2522, 3rd Cir.; 2013 U.S. App. LEXIS 15959).

    Split 1st Circuit Partially Reinstates Health Care Workers' Wage And Hour Claims

    BOSTON - A split First Circuit U.S. Court of Appeals panel on Aug. 1 partially reinstated wage claims against a health care facilities operator and its former president and reopened the possibility of the case proceeding on behalf of a class after vacating the order striking the class and collective allegations (Elizabeth Manning, et al. v. Boston Medical Center Corporation, et al., Nos. 12-1573, 12-1653, 1st Cir.; 2013 U.S. App. LEXIS 16025).

    Federal Judge Refuses To Reconsider Employees' Mold-Related Exposure Claims

    ST. THOMAS, Virgin Islands - A Virgin Islands federal judge on Aug. 1 refused to reconsider a decision that denied summary judgment in favor of a group of employees who alleged that they suffered injuries as a result of mold exposure at work, finding that they could not rely on a jury verdict in an associated case to support their breach of duty claims against a real estate agent (Barbara Richards, et al. v. Sydney Katz, et al., No. 2009-23, D. Virgin Islands; 2013 U.S. Dist. LEXIS 107905).

    Federal Judge Grants Health Insurers Summary Judgment In Reimbursement Dispute

    NEWARK, N.J. - A New Jersey federal judge on Aug. 1 granted summary judgment in favor of health insurers in a reimbursement dispute and denied the plaintiffs' motion for class certification (Premier Health Center, et al. v. UnitedHealth Group, et al., No. 11-425, D. N.J.; 2013 U.S. Dist. LEXIS 108041).

    Class Certification Denied In Amended Dukes Complaint

    SAN FRANCISCO - A California federal judge on Aug. 2 denied class certification and ruled that each female in the gender bias complaint against Wal-Mart that began more than a decade ago must pursue her claims individually (Betty Dukes, et al. v. Wal-Mart Stores, Inc., No. 01-2252, N.D. Calif.; 2013 U.S. Dist. LEXIS 109106).

    8th Circuit: Truck's Gross Weight Rating Determines Pay For Driver

    ST. LOUIS - The gross vehicle weight rating (GVWR) of a truck, not the actual weight, is what is to be used to determine the driver's eligibility for overtime, the Eighth Circuit U.S. Court of Appeals ruled July 31 (Birdell McCall, et al. v. Disabled American Veterans, et al., No. 12-3011, 8th Cir.; 2013 U.S. App. LEXIS 15622).

    5th Circuit Upholds Firing Of Disabled Worker And Worker That Helped Hired Him

    NEW ORLEANS - Two former employees of the owner and operator of an apartment complex failed to show that one of the employees was improperly fired due to his disability or that the other employee was improperly fired for helping hire the disabled worker, the Fifth Circuit U.S. Court of Appeals ruled July 31 (John Gober v. Frankel Family Trust, et al., Alissa Moore v. Frankel Family Trust, et al., No. 13-50035, 5th Cir.; 2013 U.S. App. LEXIS 15782).

    4th Circuit: Alleged Age Bias Victim Failed Show Reassignment Was Discriminatory

    RICHMOND, Va. - A poultry-processing-facility employee failed to prove age discrimination because he was unable to show that a proposed reassignment did not satisfy the threshold Age Discrimination in Employment Act (ADEA) requirement of an adverse employment action, the Fourth Circuit U.S. Court of Appeals ruled July 31 (James M. Darnell v. Tyson Foods, Inc., No. 13-1011, 4th Cir.; 2013 U.S. App. LEXIS 15677).

    Chiropractors Sufficiently Alleged Breach, Bad Faith Under ERISA, Judge Rules

    NEWARK, N.J. - Three chiropractors pursuing class claims against a health insurer's "bundling" of purportedly distinct claims survived dismissal on July 31, with a New Jersey federal judge finding that they had satisfied standing and pleading requirements under the Employee Retirement Income Security Act (ERISA) and state law (Alphonse A. DeMaria, D.C., et al. v. Horizon Healthcare Services Inc., et al., No. 11-7298, D. N.J.; 2013 U.S. Dist. LEXIS 107422).

    3rd Circuit: Challenges To 401(k) Plan Service Provider's Fees Fail

    PHILADELPHIA - A service provider did not breach its fiduciary duties or engage in prohibited transactions in violation of the Employee Retirement Income Security Act by allegedly charging excessive fees for reviewing domestic relations orders (DROs) because it was not an ERISA fiduciary when it negotiated its fee, the Third Circuit U.S. Court of Appeals affirmed July 29 in an unpublished opinion (Nicholas Danza v. Fidelity Management Trust Company, et al., No. 12-3497, 3rd Cir.; 2013 U.S. App. LEXIS 15751).

    Survivor Spousal Benefits Are Due To Same-Sex Spouse, Pa. Federal Judge Rules

    PHILADELPHIA - The U.S. Supreme Court's ruling declaring Section 3 of the Defense of Marriage Act (DOMA) unconstitutional requires recognition of a valid Canadian same-sex marriage for purposes of determining the proper distribution of survivor benefits under a profit-sharing plan that is governed by the Employee Retirement Income Security Act, a federal judge in Pennsylvania ruled July 29 (Cozen O'Connor, P.C. v. Jennifer J. Tobits, et al., No. 11-00045, E.D. Pa.; 2013 U.S. Dist. LEXIS 105507).

    Michigan Federal Judge Approves $3M Settlement In Flagstar Stock-Drop Case

    DETROIT - A federal judge in Michigan on July 29 granted preliminary approval to a $3 million settlement of claims by Flagstar Bancorp Inc. 401(k) plan participants that the plan fiduciaries breached their duties under the Employee Retirement Income Security Act by offering company stock as an investment option (Debra Griffin, et al. v. Flagstar Bancorp, Inc., et al., No. 2:10-cv-10610, E.D. Mich.).

    7th Circuit: Firing For Taking Leave For Funeral May Constitute Religious Bias

    CHICAGO - An employee who was fired after taking several weeks of leave to travel abroad to bury his father may proceed with his religious bias suit, the Seventh Circuit U.S. Court of Appeals ruled July 31, reversing a trial court's grant of summary judgment to the employer (Sikiru Adeyeye v. Heartland Sweeteners, LLC, No. 12-3820, 7th Cir.; 2013 U.S. App. LEXIS 15610).

    Ohio Federal Judge Calculates Prejudgment Interest Rate In Whipsaw Case

    CINCINNATI - A federal judge in Ohio on July 29 calculated the prejudgment interest rate for retirees who prevailed on their claims that a cash-balance pension plan miscalculated their lump-sum payments by failing to apply a whipsaw calculation (William J. Schumacher v. AK Steel Corporation Retirement Accumulation Pension Plan, et al., No. 09-794, S.D. Ohio; 2013 U.S. Dist. LEXIS 105761).

    Kansas Federal Judge Certifies Class Of Technicians Seeking Unpaid Wages

    WICHITA, Kan. - A Kansas federal judge on July 29 conditionally certified state wage claims filed by cable installation technicians who alleged that they were denied wages and were improperly docked for various business expenses (Michael Knight, et al. v. Mill-Tel, Inc., No. 11-1143, D. Kan.; 2013 U.S. Dist. LEXIS 105622).

    Participant's Claim For Equitable Relief Is Time-Barred, 9th Circuit Holds

    SAN FRANCISCO - The Employee Retirement Income Security Act's statute of limitations for breach of fiduciary duty barred a pension plan participant's action seeking equitable relief, the Ninth Circuit U.S. Court of Appeals held July 26 in an unpublished opinion (Dominick Bruno v. The Time Warner Pension Plan, No. 11-57000, 9th Cir.; 2013 U.S. App. LEXIS 15251).

    1 Claim Remains In Breach Of Health Insurance Contract Dispute

    OKLAHOMA CITY - An Oklahoma federal judge on July 29 partially granted summary judgment in favor of a health care provider in a breach of contract dispute, leaving only the plaintiff's claim that she is a third-party beneficiary seeking to enforce restrictions on permitted billing of members for services that are not covered (Elizabeth Cates v. Integris Health Inc., No. 12-763, W.D. Okla.; 2013 U.S. Dist. LEXIS 105437).

    3rd Circuit: City Ordinances Barring Employment, Housing For Aliens Are Preempted

    PHILADELPHIA - A Pennsylvania city's two ordinances that prohibit employment of illegal aliens and preclude them from renting housing in the city are preempted by federal immigration law, the Third Circuit U.S. Court of Appeals ruled July 26 (Pedro Lozano, et al. v. City of Hazleton, No. 07-3531, 3rd Cir.; 2013 U.S. App. LEXIS 15256).

    California Federal Judge Dismisses Conspiracy Claims Against Kaiser, Union

    SAN DIEGO - A hospital system failed to allege that a managed care organization and its related entities conspired with a labor union to exclude competition in the markets for emergency and acute-care hospital services, a federal judge in California ruled July 25 (Prime Healthcare Services, Inc. v. Service Employees International Union, et al., No. 11-2652, S.D. Calif.; 2013 U.S. Dist. LEXIS).

    8th Circuit: Unauthorized Aliens May Collect Minimum And Overtime Wages

    KANSAS CITY, Mo. -Unauthorized aliens may collect minimum and overtime wages under the Fair Labor Standards Act (FLSA) because that federal law "does not allow employers to exploit any employee's immigration status or to profit from hiring unauthorized aliens in violation of federal law," the Eighth Circuit U.S. Court of Appeals ruled July 29 (Elmer Lucas, et al. v. Jerusalem Cafe, LLC, et al., No. 12-2170, 8th Cir.; 2013 U.S. App. LEXIS 15320).