NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on May 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that under 11 U.S. Code Section 1113, it should be permitted to reject collective bargaining agreements its has with three unions (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full update.
MADISON, Wis. - A Wisconsin appeals court on May 18 declined to reconsider its ruling allowing admission of invoices turned over by a company's lawyer that allegedly document the sale of asbestos-containing products (Cindy Horak, et al. v. Building Services Industrial Sales Co., Trane US Inc., F/D/B American Standard Inc., Metropolitan Life Insurance Co. and Owens Illinois Inc., No. 2011AP414, Wis. App., 1st Dist.). Subscribers may view the docket sheet available within the full update.
ST. LOUIS - A Missouri federal judge on May 17 conditionally certified a class of phone company sales representatives who allege that they are owed overtime pay, finding that the two-phase procedure for class certification is appropriate, even though the Eighth Circuit U.S. Court of Appeals has not addressed the issue for Fair Labor Standards Act (FLSA) claims (Kyle O'Donnell, et al. v. Southwestern Bell Yellow Pages, Inc., No. 4:11-cv-1107, E.D. Mo.; 2012 U.S. Dist. LEXIS 68960).
SAN FRANCISCO - An executive officer's direct role in marketing the hair-regrowth product Avacor and the financial rewards he reaped from the company permit a judge's order that the officer pay $40 million in restitution under the California unfair competition law (UCL), a state appeals court held April 25. The court denied a petition for publication May 18, according to the docket (James Thomas v. Anthony Imbriolo, No. A130517, Calif. App., 1st Dist., Div. 5). Subscribers may view the opinion available within the full update.
SAN FRANCISCO - A putative class of former college athletes who are accusing video game manufacturer Electronic Arts Inc. (EA) of conspiring with the National Collegiate Athletic Association and the Collegiate Licensing Co. (CLC) to use the former athletes names and likenesses in products without compensation in violation of the Sherman Act sufficiently allege a "meeting of the minds," the federal judge in California overseeing the multidistrict litigation ruled May 16 in denying EA's motion for judgment on the pleadings (In re NCAA Student-Athlete Name & Likeness Licensing Litigation, No. C 09-1967, N.D. Calif.; 2012 U.S. Dist. LEXIS 68712).
NEW YORK - A disability insurer did not abuse its discretion under the Employee Retirement Income Security Act by relying on four medical consultant record reviews in terminating benefits to a claimant suffering from depression and migraine headaches, the Second Circuit U.S. Court of Appeals affirmed May 16 in an unpublished order (Josephine Testa v. Hartford Life Insurance Co., et al., No. 11-974, 2nd Cir.; 2012 U.S. App. LEXIS 9806).
WASHINGTON, D.C. - The U.S. Supreme Court on May 21 denied a petition for rehearing of its denial of a petition for a writ of certiorari filed by indirect purchasers of diamonds that sought review of a divided en banc Third Circuit U.S. Court of Appeals' ruling reinstating a $295 million settlement of a class action lawsuit that alleged that De Beers companies fixed prices in the wholesale market for gem-quality diamonds (David T. Murray, et al. v. Shawn Sullivan, et al., No. 11-1111, U.S. Sup.).
BATON ROUGE, La. - Finding "no manifest error" in an earlier ruling in which he granted an insured's motion for summary judgment on whether an insurer had a duty to defend in a pollution liability coverage dispute, a Louisiana federal judge on May 16 denied the insurer's motion for a new trial (Louisiana Generating LLC, et al. v. Illinois Union Insurance Co., No. 10-516 and 10-835, M.D. La.; 2012 U.S. Dist. LEXIS 68397).
LAS VEGAS - A consumer has failed to state a claim for relief against a debt collector because he has not shown that the debt collector failed to properly itemize the principle and additional amounts owed in a letter seeking payment of the debt, a federal judge in Nevada ruled May 17 (Steven Benjamin v. Allied Interstate, No. 11-0881, D. Nev.; 2012 U.S. Dist. LEXIS 69018).
PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 18 reversed and remanded a ruling, concluding that the class action claims against bankrupt Owens Corning related to defective roof shingles were not discharged in the company's bankruptcy proceeding (Patricia Wright, et al. v. Owens Corning, No. 11-2026, Chapter 11, 3rd Cir.). Subscribers may view the opinion available within the full update.
NEW YORK - Bankrupt Eastman Kodak Co. on May 18 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the automatic stay should be extended to cover a lawsuit filed by a former employee who claims that he was the victim of racial discrimination (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the complaint brief available within the full update.
CONCORD, N.H. - A federal judge in New Hampshire on May 18 held that a couple had standing to bring a lawsuit seeking to enjoin foreclosure on their home because their allegations do not challenge the validity of the alleged assignment of their mortgage loan to Wells Fargo Bank N.A. (Michael Drouin v. American Home Mortgage Servicing Inc., et al., No. 11-cv-596-JL, D. N.H.; 2012 U.S. Dist. LEXIS 69549).
HARRISBURG, Pa. - Breach of contract and indemnification claims against insurance agents are barred by the applicable statute of limitations, a Pennsylvania federal judge ruled May 17, also dismissing breach of fiduciary duty claims against the agents (Lincoln General Insurance Co. v. Kingsway America Agency Inc. f/k/a Avalon Risk Management Inc. and Mattoni Insurance Brokerage Inc., No. 11-1127, M.D. Pa.; 2012 U.S. Dist. LEXIS 69128).
BECKLEY, W. Va. - A federal judge on May 18 denied HSBC Bank Nevada NA's motion to compel arbitration in a suit brought by a credit cardholder who says the bank illegally made phone calls to collect a debt, ruling that the bank did not meet its burden of proving that the parties entered into an agreement to arbitrate and that the plaintiff breached such an agreement (Scott Michael Shaffer v. HSBC Bank Nevada, N.A., et al., No. 12-00968, S.D. W. Va.; 2012 U.S. Dist. LEXIS 69818).
AUSTIN, Texas - The Texas Supreme Court on May 18 said that because the Texas Department of Insurance did not clearly err in its contention that stop-loss insurance is direct insurance and not reinsurance, it was reversing a lower court's ruling that stop-loss insurance is reinsurance (Texas Department of Insurance, et al. v. American National Insurance Company, et al., No. 10-0374, Texas Sup.; 2012 Tex. LEXIS 420).
NEW ORLEANS - A federal judge in Louisiana ruled May 16 that the court had personal jurisdiction over a French company because the company had sufficient minimum contacts with Louisiana through its actions as a disability insurance plan administrator and that the plan's arbitration clause, which required a claimant appealing an adverse benefit determination to arbitrate in France and pay costs, was unenforceable under the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq. (Otha Michael Williams v. Association de Prevoyance Interentreprises, et al., No. 11-1664, E.D. La.; 2012 U.S. Dist. LEXIS 68488).
CLEVELAND - A federal judge in Ohio on May 18 approved CadleRock Joint Venture LP and Safeco Insurance Company of America's settlement of a suit in a Ohio federal court in which CadleRock accused Safeco of committing fraud by issuing lease bonds tied to a Ponzi scheme (CadleRock Joint Venture LP v. Safeco Insurance Company of America, No. 02-16020, N.D. Ohio). Subscribers may view the order available within the full update.
ATHENS, Ga. - A federal judge in Georgia on May 18 denied Chase Home Finance LLC's motion to dismiss a man's wrongful foreclosure action after finding that his filing for Chapter 7 bankruptcy protection did not take away his standing to bring suit against the loan servicer and that a foreclosure notice letter did not satisfy the state's statutory requirements (Richard R. Rule, et al. v. Chase Home Finance LLC, No. 11-CV-146, M.D. Ga.; 2012 U.S. Dist. LEXIS 69699).
SHREVEPORT, La. - The Second Circuit Louisiana Court of Appeal on May 16 upheld summary judgment for a hospital in a personal injury action, concluding that the plaintiff relied on "allegations and uncorroborated, self-serving testimony" (Vera Cavet-Vanderpool v. Louisiana Extended Care Hospital of West Monroe, No. 47,141-CA, La. App., 2nd Cir.; 2012 La. App. LEXIS 655).
LAS VEGAS - A federal judge in Nevada on May 18 rejected a plaintiff's request to realign the parties in his wrongful foreclosure suit so that a defendant loan servicing company would be listed as a plaintiff after finding that it would be inappropriate (Joseph A. Gibilterra v. Aurora Loan Services LLC, et al., No. 12-CV-685 JCM, D. Nev. 2012 U.S. Dist. LEXIS 69595).
WILMINGTON, Del. - Arguing against a motion to dismiss, a pair of shareholders said in a Delaware state court on May 16 that they had adequately pleaded that a majority of a company's board of directors faced a substantial likelihood of liability, bringing into doubt their disinterestedness (Steven South, et al. v. Phillips S. Baker Jr., et al., No. 7294-VCL, Del. Chanc.). Subscribers may view the brief in opposition to motion to dismiss available within the full update.
NEW YORK - Electronic book purchasers may continue their class action lawsuit against Apple Inc. and several e-book publishers alleging that the defendants engaged in a conspiracy to fix prices of digital books in violation of federal and state antitrust laws, the federal judge in New York overseeing the multidistrict litigation ruled May 15 in denying the defendants' motion to dismiss (In re: Electronic Books Antitrust Litigation, Nos. 11 MD 2293, 11 Civ. 5576, 11 Civ. 5609, 11 Civ. 5621, 11 Civ. 5707, 11 Civ. 5750, 11 Civ. 5896, 11 Civ. 5898, 11 Civ. 5976, 11 Civ. 6019, 11 Civ. 6079, 11 Civ. 7507, 11 Civ. 7534, 11 Civ. 7323, 11 Civ. 8329, 11 Civ. 8608, 11 Civ. 9016, 11 Civ. 9014, 11 Civ. 9559, 11 Civ. 9560, 11 Civ. 9561, 11 Civ. 9562, 11 Civ. 9563, 11 Civ. 9564, 11 Civ. 9565, 11 Civ. 9566, 11 Civ. 9567, 12 Civ. 0476, S.D. N.Y.; 2012 U.S. Dist. LEXIS 68058).
CHARLESTON. W.Va. - The judge presiding over a domestic water well contamination and personal injury lawsuit in the U.S. District Court for the Southern District of West Virginia entered orders May 17 dismissing the claims against one natural gas extraction defendant because the parties reached a settlement and against a second defendant on a motion for summary judgment for failing to state a claim (Dennis Hagy, et al. v. Equitable Production Co., et al., No. 10-1372, S.D. W.Va.; 2012 U.S. Dist. LEXIS 69099).
PHOENIX - Finding that a shareholder must unambiguously show when she purchased and for how long she held stock in the corporation on behalf of which she brought a shareholder derivative lawsuit, a federal judge in Arizona on May 16 gave the shareholder 10 days to substantiate her standing to bring the suit (Darlene Smith v. John G. Sperling, et al., No. 11-cv-00722, D. Ariz.; 2012 U.S. Dist. LEXIS 68325).
CHICAGO - A federal judge in Illinois on May 15 dismissed a pair of shareholders' derivative lawsuit, finding that they did not state any valid reason for failing to make demand on a board of directors prior to filing suit (Bonnie Mitchell, et al. v. David P. Reiland, et al., No. 11-cv-01059, N.D. Ill.; 2012 U.S. Dist. LEXIS 68085).