Judge Refuses To Dismiss Counterclaims In Professional Liability Coverage Dispute

    SALT LAKE CITY - A Utah federal judge on July 12 denied a professional liability insurer's motion to dismiss a fruit juice distributor insured's counterclaims in the insurer's lawsuit disputing coverage for an underlying putative class action against the insured (Allied World National Assurance Co. v. Mona Vie Inc., et al., No. 2:12cv393DAK, D. Utah, Central Div.; 2013 U.S. Dist. LEXIS 97720).

    California Federal Judge Orders Briefing On Narrowing Class In Settlement Motion

    FRESNO, Calif. - A California federal judge on July 11 ordered additional briefing before she rules on a settlement motion in a class suit over a motorcycle company's post-repossession notices, citing concerns with the parties' request to narrow the scope of an already certified class (Luis Manuel Mora, et al. v. Harley-Davidson Credit Corp., et al., No. 08-1453, E.D. Calif.; 2013 U.S. Dist. LEXIS 97172).

    Ladder Expert's Opinion Inadmissible; 2nd Circuit Affirms Summary Judgment

    NEW YORK - A trial court did not err in excluding expert engineering testimony and in granting summary judgment to a ladder manufacturer in a products liability case, a Second Circuit U.S. Court of Appeals panel held July 10 (Steven and Janet Russo v. Keough's Turn of the River Hardware, No. 12-4196, 2nd Cir.; 2013 U.S. App. LEXIS 13897).

    11th Circuit Affirms Order Compelling Arbitration Of Claims Against Cruise Line

    ATLANTA - The 11th Circuit U.S. Court of Appeals on July 12 affirmed a decision to compel arbitration of a cruise line worker's clams against Carnival Corp., finding that an arbitration agreement in his contract applied and that the dispute was governed by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Jose Alvaro Dolmo Montero v. Carnival Corp., No. 12-15525, 11th Cir.; 2013 U.S. App. LEXIS 14141).

    11th Circuit Upholds Class Arbitration Of Wireless Early Termination Fees

    ATLANTA - The 11th Circuit U.S. Court of Appeals on July 12 denied a wireless company's request to vacate two arbitration awards, one finding that an arbitration clause permitted class litigation and the other certifying the class, finding that both were permitted under the standard set forth in Oxford Health Plans LLC v. Sutter (569 U.S. __, 133 S. Ct. 2064, __ L.Ed.2d __ $(2013$)) (Southern Communications Services, Inc., d.b.a. SouthernLINC Wireless v. Derek Thomas, et al., No. 11-15587, 11th Cir.; 2013 U.S. App. LEXIS 14121).

    Texas Appeals Panel Remands Construction Case For Ruling On Costs, Fees

    HOUSTON - A Texas appeals panel on July 11 remanded a construction defects case to the trial court for a new determination of the proper amount of attorney fees, ruling that "the evidence in support of attorneys' fees is not sufficiently specific to support the jury's award of fees" (D&M Marine Inc. v. J. Neal Turner, et al., No. 01-12-00622-CV, Texas App., 1st Dist.; 2013 Tex. App. LEXIS 8484).

    Facebook, Others Denied Transfer Of Patent Infringement Claims

    NASHVILLE, Tenn. - Efforts by Facebook Inc. to move litigation in which it is accused by B.E. Technology LLC of infringing two patents to California federal court were rejected July 12 by a Tennessee federal judge (B.E. Technology LLC v. Facebook Inc., No. 12-2769, W.D. Tenn.).

    Texas Appeals Panel: Government Agencies Entitled To Immunity

    AUSTIN, Texas - A Texas appeals panel on July 11 upheld summary judgment for government entities named as defendants in a construction defects case filed by owners of homes damaged in Hurricane Ike, agreeing that the defendants were entitled to immunity (Caroline Miller, et al. v. South East Texas Regional Planning Commission, et al., No. 03-11-00817-CV, Texas App., 3rd Dist.; 2013 Tex. App. LEXIS 8480).

    Online Sales Establish Minimum Contacts, Specific Jurisdiction, Judge Finds

    ST. PAUL, Minn. - Because two Nevada-based bicycle parts companies allow customers to purchase products via their website and an eBay page, a Minnesota federal judge on July 10 found that they had purposefully availed themselves of doing business in Minnesota and were, therefore, subject to personal jurisdiction there (Quality Bicycle Products Inc. v. BikeBaron LLC, et al., No. 0:12-cv-02397, D. Minn.; 2013 U.S. Dist. LEXIS 96158).

    Summary Judgment Granted In Insurance Coverage Dispute From Gas Well Blowout Suits

    LAKE CHARLES, La. - Construing the language of an umbrella insurance policy as unambiguously barring recovery of response costs and legal expenses, a U.S. District Court for the Western District of Louisiana judge granted summary judgment July 8 to an insurer sued by the owner of a natural gas well that experienced a blowout that cost $14 million to contain and remediate (Pioneer Exploration v. Steadfast Insurance Co., No. 09-308, W.D. La.; 2013 U.S. Dist. LEXIS 97687).

    ResCap Seeks OK To Make $230M Payment To End Federal Reserve Foreclosure Review

    NEW YORK - Bankrupt Residential Capital LLC (ResCap) on July 12 moved for authorization to enter into a consent agreement with the Federal Reserve Board (FRB) and the Federal Deposit Insurance Corp. under which it would pay $230 million to satisfy its payments under the FRB foreclosure review and end the review process (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    National Envelope Proposes Plan For $67.5 Million In DIP Financing

    WILMINGTON, Del. - Bankrupt NE Opco Inc., formerly National Envelope Inc., on July 12 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of an agreement with creditors and lenders that would pave the way for $67.5 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: NE Opco Inc., No. 13-11483, Chapter 11, D. Del. Bkcy.).

    Judge Affirms Ruling Finding Objections To Subpoena Were Untimely

    LYNCHBURG, Va. - A federal judge in Virginia on July 11 upheld a magistrate judge's ruling finding that a nonparty's objections to a subpoena seeking documents were untimely and that the untimeliness of the objections resulted in a waiver of the nonparty's challenge to the service of the subpoena (Hanwah Azdel Inc. v. C&D Zodiac Inc., No. 12-CV-00023, W.D. Va.; 2013 U.S. Dist. LEXIS 96690).

    Michigan Federal Judge Denies Preliminary Injunction In Birth Control Suit

    DETROIT - A Michigan federal judge on July 11 denied a motion for a temporary restraining order and preliminary injunction in a challenge to the birth control mandate contained in the Patient Protection and Affordable Care Act (PPACA) brought by a management company owned by practicing Catholics (Mersino Management Co., et al. v. Kathleen Sebelius, et al., No. 13-11296, E.D. Mich.; 2013 U.S. Dist. LEXIS 96588).

    Federal Magistrate Judge Won't Issue Charging Order Against Guarantors

    FRESNO, Calif. - A federal magistrate judge in California on July 12 denied the Federal Deposit Insurance Corp.'s motion for a charging order, finding that the motion was not properly served by the FDIC, which, as the receiver for a failed bank, sued the guarantors of a loan (La Jolla Bank FSB v. Danny Tarkanian, et al., No. 13-0014, E.D. Calif.; 2013 U.S. Dist. LEXIS 97846).

    Disclosure Of PowerPoint Presentation Was Inadvertent, Magistrate Judge Rules

    DENVER - A federal magistrate judge in Colorado on July 10 held that while a plaintiff company's disclosure of a PowerPoint presentation contained on a thumb drive was inadvertent, factual portions of the document are not protected from disclosure by the attorney-client privilege or work product doctrine (Digital Advertising Displays Inc. v. Sherwood Partners LLC, et al., No. 12-cv-00682-WJM-MEH, D. Colo.; 2013 U.S. Dist. LEXIS 96282).

    Jury Rules Against Colorado Nightclub On Antitrust Claims Against Rival

    DENVER - A federal jury in Colorado on July 10 found against Denver nightclubs on their unlawful tying, monopolization and attempted monopolization claims that a competitor nightclub and the owner of a digital download service and the defendant nightclub coerced disc jockeys to perform at the competitor nightclub in violation of federal antitrust laws (Regas Christou, et al. v. Beatport, LLC, et al., No. 10-cv-02912, D. Colo.).

    4th Circuit Affirms Dismissal Of Challenge To Health Care Reform Act

    RICHMOND, Va. - In a case remanded from the U.S. Supreme Court, a Fourth Circuit U.S. Court of Appeals panel on July 11 affirmed the dismissal of a case challenging the individual and employer mandates contained in the Patient Protection and Affordable Care Act (PPACA) (Liberty University, et al. v. Jacob J. Lew, et al., No. 10-2347, 4th Cir.; 2013 U.S. App. LEXIS 14052).

    Diversity Removal Of Suit Alleging Explosion Injuries Upheld In Baton Rouge Court

    BATON ROUGE, La. - The owners of a Port Allen, La., acetylene facility sued in Louisiana state court met their diversity jurisdiction burden to remove the putative class action to the U.S. District Court for the Middle District of Louisiana, the presiding judge ruled July 10 (Caryln Gordon, et al. v. Air Liquide-Big Three Inc., et al., No. 12-396, M.D. La.; 2013 U.S. Dist. LEXIS 97077).

    8th Circuit: Walgreen's Removal Of Class Complaint Was Untimely

    ST. LOUIS - A class complaint filed against Walgreen Co. that is seeking damages for Walgreen's alleged practice of coding its Web pages so that "flash cookies" are downloaded onto users' computers belongs in state court, an Eighth Circuit U.S. Court of Appeals panel ruled July 12 (Christiane Dalton, et al. v. Walgreen Company, No. 13-2047, 8th Cir.; 2013 U.S. App. LEXIS 14107).

    5th Circuit Upholds Decision For Taser In Personal Injury Case

    NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on July 10 affirmed summary judgment for a stun gun company in a personal injury action, noting that the plaintiff signed a release form before voluntarily receiving a shock during police training (Andrew Keith Butler v. TASER International Inc., No. 12-11026, 5th Cir.; 2013 U.S. App. LEXIS 13980).

    Calif. Cipro Purchasers Seek Approval Of Settlement With Bayer Over Pay-For-Delay

    SAN DIEGO - California purchasers of the antibiotic Cipro and third-party payers who reimbursed for California purchases of Cipro on July 11 asked a state court to grant preliminary approval to their $74 million cash settlement with Bayer Corp. and Bayer AG (collectively, Bayer) on claims that Bayer paid drug companies nearly $400 million to drop challenges to Bayer's Cipro patent and to refrain from selling generic versions of the drug (CIPRO Cases I and II $(All Actions$), Judicial Council Coordination Proceeding Nos. 4154 and 4220, Calif. Super., San Diego Co.).

    Texas Appeals Panel Upholds $11 Million Trade Secret Award To Natural Gas Geologist

    TYLER, Texas - A unanimous 12th Texas Court of Appeals panel affirmed an $11 million judgment against a natural gas extraction company July 10 for misappropriation of a trade secret from a geologist who discovered the potential value of gas in a geologic formation known as the James Lime but reversed an award of $28 million in disgorgement and attorney fees for lack of a fiduciary relationship between the geologist and the company (Southwestern Energy Production Co. v. Toby Berry-Helfand, et al., No. 12-11-00370, Texas App., 2013 Tex. App. LEXIS 8549).

    Indiana Federal Magistrate Judge Grants Insured's Motion To Remand

    INDIANAPOLIS - An Indiana federal magistrate judge on July 9 granted an insured's motion to remand an environmental coverage suit after determining that the insurers failed to prove that claims against a nondiverse party could not be sustained (Fore Investments LLC v. The Travelers Indemnity Company of America et al., No. 12-1702, S.D. Ind.; 2013 U.S. Dist. LEXIS 95890).

    Executor Is Not Entitled To Equitable Relief Under ERISA, Federal Judge Rules

    LYNCHBURG, Va. - An executor of a decedent's estate is not permitted leave to amend her complaint because the equitable remedies of reformation and surcharge are not available against the defendants, who were not fiduciaries under the Employee Retirement Income Security Act, a federal judge in Virginia ruled July 9 on remand (Judy L. Moon, et al. v. BWX Technologies, Inc., et al., No. 6:09-cv-00064, W.D. Va.; 2013 U.S. Dist. LEXIS 95626).