No Coverage For Vehicle Stolen From Insured's Home, 11th Circuit Panel Says

    ATLANTA - An insurer owes no coverage for an insured vehicle that was stolen from the insured's home because the insured did not comply with the terms of the policy and keep the vehicle in a garage when not in use, the 11th Circuit U.S. Court of Appeals said July 26 (Clifford B. Oretsky v. Infinity Insurance Co., No. 13-10490, 11th Cir.; 2013 U.S. App. LEXIS 15199).

    FDA Makes Nizoral Tablets 2nd-Line Treatment Due To Liver, Adrenal Risks

    SILVER SPRING, Md. - The Food and Drug Administration on July 26 said that Nizoral brand ketoconazole tablets should not be a first-line treatment for fungal infections because it can cause severe liver injury and adrenal gland problems or have harmful interactions with other drugs.

    Court Affirms Decision Refusing To Dismiss Retaliatory Eviction Claim

    SAN FRANCISCO - A California court on July 23 affirmed a trial court's decision that refused to strike a retaliatory eviction claim asserted by tenants who alleged that their apartment contained mold and water leaks, finding that they submitted evidence in support of their claims that the landlords excessively entered the property in an attempt make them vacate and that they showed they were likely to succeed on the claim (Maria Elena Lopez, et al. v. Peter Alevizos, et al., No. A135641, Calif. App., 1st Dist., Div. 4; 2013 Cal. App. Unpub. LEXIS 5186).

    Massachusetts Judge Stays Dispute Over Language Learning Patent

    BOSTON - Allegations of patent infringement levied in connection with a popular online language learning program will be stayed pending re-examination of the patents before the U.S. Patent and Trademark Office (PTO), a Massachusetts federal judge ruled July 25 (Englishtown Inc. v. Rosetta Stone Inc., No. 12-10636, D. Mass.).

    Failure To Pay Additional Living Expenses Deemed Breach, Bad Faith By Judge

    SEATTLE - Even though a Washington federal judge on July 23 found that an insurer did not breach its contract in its payment of an arbitration award to its insureds, the judge found that the insurer acted in bad faith by ceasing payment of additional living expenses (ALE) prematurely (Randy and Monica Garoutte v. American Family Mutual Insurance Co., No. 2:12-cv-01787, W.D. Wash.; 2013 U.S. Dist. LEXIS 103062).

    9th Circuit Reverses Dismissal Of Bias Suit Based On Bankruptcy Filing

    HONOLULU - A Hawaii federal court applied the incorrect legal standard in an employee's bias suit when it granted summary judgment to the employer based on the plaintiff's failure to list her discrimination action in a bankruptcy filing, a split Ninth Circuit U.S. Court of Appeals ruled July 24 (Kathleen M. Ah Quin v. County of Kauai Department of Transportation, No. 10-16000, 9th Cir.; 2013 U.S. App. LEXIS 15076).

    Federal Judge Grants Stay To Subjects Of Ponzi Scheme Action

    SAN JOSE, Calif. - A federal judge in California on July 24 stayed for six months a civil suit against individuals also facing criminal charges for their alleged perpetration of a Ponzi scheme, stating that forcing the defendants to make a choice between preserving their privilege against self-incrimination, thereby exposing themselves to a "one-sided discovery process," would impinge on their Fifth Amendment rights (Lynn Bridges, et al. v. John A. Geringer, et al., No. 13-1290, N.D. Calif.; 2013 U.S. Dist. LEXIS 103852).

    Texas Appeals Panel Upholds Judgment To Insurance Agents On Negligence Claims

    CORPUS CHRISTI, Texas - A Texas appeals panel on July 25 affirmed judgment with regard to claims for negligence and violations of the Deceptive Trade Practices Act (DTPA) against a surplus lines retail agent and a surplus lines managing general agent and rendered that an insured take nothing on its claims (Brannan Paving GP LLC d/b/a Brannan Paving Co. v. Pavement Markings Inc., et al., Nos. 13-11-00005-CV & 13-11-00013-CV, Texas App., 13th Dist.; 2013 Tex. App. LEXIS 9211).

    9th Circuit Reverses, Remands; Creditor Couple Not Allowed To File Adversary Case

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on July 25 vacated and remanded a bankruptcy case, ruling that a creditor couple should not have been permitted to file an adversary complaint objecting to the discharge of the bankruptcy because the couple failed to explain why they were unable to meet the deadline for filing the complaint in the first place (Hank Willms, et al. v. Rowe Sanderson III, No. 12-35135, Chapter 7, 9th Cir.; 2013 U.S. App. LEXIS 15187).

    2nd Circuit Affirms $104M MTBE Contamination Verdict Against Exxon

    NEW YORK - The Second Circuit U.S. Court of Appeals on July 26 affirmed a $104.6 million methyl tertiary butyl ether (MTBE) contamination verdict for New York City against Exxon Mobil Corp., finding in part that the state tort verdict is not preempted by the Clean Air Act (In Re: Methyl Tertiary Butyl Ether $(MTBE$) Products Liability Litigation, Nos. 10-4135 and 10-4329, 2nd Cir.).

    Bankruptcy Judge Nixes Garlock Appeal Of Pittsburgh Corning's Plan Confirmation

    PITTSBURGH - An appeal of confirmation of Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization by fellow asbestos bankruptcy debtor Garlock Sealing Technologies LLC was rejected July 23 by a Pennsylvania federal bankruptcy judge, who found the appeal to be a "nullity" pending a motion by two insurers to reconsider the plan confirmation (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    Pennsylvania Jury Finds Tobacco User 85 Percent Liable For Lung Cancer

    PHILADELPHIA - A Pennsylvania jury on July 24 rejected a cigarette smoker's asbestos claim, finding the man 85 percent liable for his lung cancer, sources told Mealey Publications (Lorainne J. Liptak v. Crane Co., No. 1111-02145, Pa. Comm. Pls., Philadelphia Co.).

    Haliburton To Plead Guilty For Destroying Evidence Related To Deepwater Horizon

    WASHINGTON, D.C. - The U.S. Department of Justice announced on July 25 that Halliburton Energy Services Inc. has agreed to plead guilty to destroying evidence related to the explosion of the Deepwater Horizon oil rig in April 2010, pay the maximum statutory fine and be subject to three years of probation.

    Judge Says Negligence Claim Against Insurance Agent Is Barred By Limitations Statute

    NEW ORLEANS - An insured's negligence claim against an insurance agent regarding failure to procure property insurance is barred by the one-year statute of limitations, a Louisiana federal judge held July 24 (Tyrone Walton v. E S & H Inc., No. 11-1819, E.D. La.; 2013 U.S. Dist. LEXIS 103450).

    9th Circuit: Injunction In Trademark Case Not Erroneous

    SAN FRANCISCO - A California federal judge properly enjoined a maker of skin care and anti-aging products from using the "ARena" trademark, the Ninth Circuit U.S. Court of Appeals ruled July 24 (American Rena International Company v. Sis-Joyce International Co., No. 12-57169, 9th Cir.).

    Operator Of Tunnel Between Detroit And Windsor, Ontario, Files For Bankruptcy

    NEW YORK - The private company that owns and operates the tunnel between the City of Detroit and Windsor, Ontario - as well as other toll roads in the United States - filed a prepackaged Chapter 11 bankruptcy on July 25 under which the debtor would emerge from bankruptcy under the ownership of Syncora Holdings Inc. with no outstanding debt (In Re: American Rodes LLC, No. 13-12412, Chapter 11, S.D. N.Y. Bkcy.).

    Judge Compels Insureds To Arbitrate Coverage Of Construction Defect Case

    SAN FRANCISCO - A California federal judge on July 23 compelled insureds to arbitration with their insurers regarding coverage for a construction defect lawsuit and dismissed claims that the insurers breached their duty to settle (Swinerton Builders and Swinerton Inc. v. American Home Assurance Co., et al., No. 12-4350, N.D. Calif.; 2013 U.S. Dist. LEXIS 103005).

    Judge: Use Of Interactive Web Portal Conveys Jurisdiction In Contract Dispute

    CHICAGO - A medical imaging firm's Internet activity directed at Illinois and its contractual relationship with an Illinois radiology firm constitute sufficient minimum contacts with the state to establish jurisdiction, an Illinois federal judge ruled July 22, denying a motion to dismiss (Stat Imaging LLC v. Medical Specialists Inc., P.C., et al., No. 1:13-cv-01921, N.D. Ill.; 2013 U.S. Dist. LEXIS 101758).

    Bankruptcy Judge Stays All Litigation Pending Against City Of Detroit

    DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case of the City of Detroit on July 25 granted the city's request and ordered all lawsuits pending against the city stayed (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Maryland Federal Judge Preliminarily Approves HVAC Techs' Wage Settlement

    GREENBELT, Md. - A Maryland federal judge on July 22 granted preliminary approval to a $68,055.75 settlement that will end a complaint seeking unpaid overtime wages for a class of HVAC technicians (Christopher Edelen v. American Residential Services, LLC, et al., No. 11-2744, D. Md.; 2013 U.S. Dist. LEXIS 102373).

    Judge: Directors, Officers Insurer Has Duty To Defend, Indemnify Sexual Abuse Suit

    BROOKLYN, N.Y. - Judgment was entered against a directors and officers liability insurer on July 23 after a New York federal judge found that the insurer has a duty to defend and indemnify its community center insured against an underlying lawsuit alleging that the insured condoned and ratified the acts of sexual abuse committed by its assistant executive director of health/physical education (Jewish Community Center of Staten Island v. Trumbull Insurance Co., No. 09-CV-02028 $(ENV$) $(JMA$), E.D. N.Y.; 2013 U.S. Dist. LEXIS 102063).

    Federal Judge Consolidates 2 Class Actions Alleging Mold Defect In Washers

    NEWARK, N.J. - A New Jersey federal judge on July 24 found that the consolidation of three class actions filed in relation to defects with front-loading washing machines would be inappropriate, but he ordered the consolidation of two cases, which both assert a common mold-related defect (Robert N. Durso, et al. v. Samsung Electronics America, et al., Nos. 2:12-cv-5352, 2:12-cv-5412 and 2:12-cv-5440, D. N.J.; 2013 U.S. Dist. LEXIS 103403).

    Texas Court Won't Dismiss Action Challenging Pneumo Abex Settlement

    HOUSTON - Differences between a Texas action alleging tortious acts and a now-closed New York case that resulted in the settlement of asbestos claims against Pneumo Abex LLC make comity principles irrelevant, a Texas court held on July 25 in denying a writ petition seeking dismissal of the case (In re: Cooper Industries LLC and Cooper US Inc., No. 14-13-00500-CV, Texas App., 14th Dist.).

    Mo. Appeals Court Reverses Summary Judgment In Monsanto Legacy PCB Case

    ST. LOUIS - A Missouri appeals panel on July 23 said that the former Monsanto Co. owed a duty to people who were exposed to polychlorinated biphenyls (PCBs) and that the plaintiffs' exposure to the potentially cancer-causing chemical was foreseeable (Sanford Clair, et al. v. Monsanto Company, et al., No. ED99246, Mo. App., Eastern Dist., Div. 3; 2013 Mo. App. LEXIS 854).

    Expert's 'Each Exposure' Testimony Not Novel, Maryland Top Court Says

    BALTIMORE - Expert testimony that each exposure to chrysotile asbestos increased a woman's risk of mesothelioma is not a novel scientific theory given the levels of exposure at issue, Maryland's top court held July 25 (Bernard Dixon, et al. v. Ford Motor Co., No. 82 September Term 2012, Md. App.).