Irish Bank Seeks Recognition Of Foreign Main Proceeding By U.S. Bankruptcy Court

    WILMINGTON, Del. - Officials with the Irish Bank Resolution Corp. (IBRC) Ltd. on Aug. 28 filed a brief supporting the bank's contention that the U.S. Bankruptcy Court should recognize a proceeding in Ireland as a foreign main proceeding a under the Bankruptcy Code (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).

    Insured Is Entitled To Return Of Collateral Funds From Insolvent Insurer, Panel Says

    HARRISBURG, Pa. - An insured is entitled to the return of any identified collateral funds or any portion thereof that remained in an insolvent insurer's accounts at the time the liquidator took possession of the assets, the Pennsylvania Commonwealth Court ruled Aug. 27 (Tenco Excavating Inc. v. First Sealord Surety Inc. $(in Liquidation$(, No. 20 FSS 2012, Pa. Cmwlth.; 2013 Pa. Commw. LEXIS 343).

    Judge: Legal Basis For Insurer's Competition Law Claims Lacking

    SAN FRANCISCO - Rules governing bar members' conduct cannot form the basis of California unfair competition law (UCL) claims for unlawful conduct, and an insurer fails to tether the challenged conduct to any constitutional, statutory or regulatory provision for its unfair-prong claim, a federal judge held in dismissing the claims with prejudice on Aug. 26 (Travelers Property Casualty Company of America v. Centex Homes, et al., Nos. 13-0088, 12-0371 & 11-3638, N.D. Calif.; 2013 U.S. Dist. LEXIS 121401).

    Louisiana Federal Judge Remands Breach Of Health Care Contract

    NEW ORLEANS - A Louisiana federal judge on Aug. 26 remanded a breach of health care contract suit to state court, finding that the defendant did not show that the amount in controversy for removal to federal court had been met (Omega Hospital LLC v. Blue Cross Blue Shield of Illinois, No. 13-4891, E.D. La.; 2013 U.S. Dist. LEXIS 12195).

    Indian Tribe Settles With Federal Government Over 2011 Tobacco Raid

    SPOKANE, Wash. - A Native American tribe has settled with the federal government litigation stemming from a February 2011 tobacco raid on its land, according to an Aug. 26 motion to dismiss (Confederated Tribes and Bands of the Yakama Nation v. Eric H. Holder Jr., attorney general of the United States, et al., No. CV-11-3028, E.D. Wash.).

    Judge Finds Injury, But Dismisses Some Of Consumers' Formula Advertising Claims

    NEWARK, N.J. - Consumers who claim that they paid a premium based on representations about the benefits of probiotics in formula and baby cereals adequately allege injury, but sufficiently alleged causation only in regard to product labeling, not the advertising campaign as a whole, a New Jersey federal judge held Aug. 23 in dismissing California unfair competition law (UCL) and other states' consumer protection law claims (In re: Gerber Probiotic Sales Practices Litigation, No. 12-835, D. N.J.; 2013 U.S. Dist. LEXIS 121192).

    Judge Dismisses Suit Brought By Victim Of Foreclosure Scheme

    BOSTON - A federal judge in Massachusetts on Aug. 27 dismissed a man's lawsuit seeking to enjoin foreclosure on his home after finding that while he was a victim of a foreclosure scheme and was fraudulently induced into obtaining the mortgage loan securing his home, he only had standing to challenge whether the mortgage loan at issue was voidable rather than void (Guy Giuffre v. Deutsche Bank National Trust Co., et al., No. 12-11510-JLT, D. Mass.; 2013 U.S. Dist. LEXIS 121816).

    7th Circuit Orders Reconsideration Of Remedy In Faxed Ads Class Suit

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on Aug. 26 upheld a Telephone Consumer Protection Act (TCPA) ruling in favor of a class of faxed ad recipients but vacated the District Court's remedial order finding that a cy pres decision was premature where the case did not end in settlement, is not a common-fund situation and where there is "considerable doubt" that the defendant will be able to pay enough to allow full payment to class members who submit claims (Ira Holtzman, C.P.A. & Associates Limited, et al. v. Gregory P. Turza, Nos. 11-3188 & 11-3746, 7th Cir.; 2013 U.S. App. LEXIS 17811).

    Panel Affirms Dismissal Of Securities Suit For Failure To Plead Scienter

    CINCINNATI - A federal judge in Ohio did not abuse his discretion in dismissing a shareholder class action lawsuit against a video game maker and others for alleged federal securities law violations because the shareholder failed to properly plead scienter, a Sixth Circuit U.S. Court of Appeals panel ruled Aug. 27 (Bruce E. Ricker v. Zoo Entertainment Inc., et al., No. 12-3951, 6th Cir.).

    U.S. Supreme Court Dismisses Shareholder Derivative Appeal

    WASHINGTON, D.C. - The U.S. Supreme Court on Aug. 26 dismissed a petition for writ of certiorari appealing a First Circuit U.S. Court of Appeals ruling in a shareholder derivative lawsuit that sought determination as to whether the Circuit Court abused its discretion in ruling that shareholders had shown that demand on investment funds' boards of directors was futile (UBS Financial Services Inc. of Puerto Rico, et al. v. Union de Empleados de Muelles de Puerto Rico PRSSA Welfare Plan, et al., No. 12-1208, U.S. Sup.).

    U.S. Trustee: $145,000 Bonus Should Be Denied Based On Its 'Retentive' Nature

    WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of IPC International Corp. on Aug. 27 filed a brief objecting to the company's plan to pay a $145,000 bonus to IPC's chief financial officer (CFO) for work done before the filing of the bankruptcy petition, which makes it "retentive" in nature, which is a violation of Bankruptcy Code (In Re: IPC International Corporation, No. 13-12050, Chapter 11, D. Del. Bkcy.).

    Shareholder Says Special Litigation Committee Was Biased

    SPRINGFIELD, Mass. - A shareholder told a Massachusetts federal court on Aug. 26 that a motion to dismiss a shareholder derivative lawsuit based on the findings of an allegedly biased special litigation committee should not be granted (Aaron Sarnacki v. Michael F. Golden, et al., No. 11-cv-30009, D. Mass.).

    ICSID Issues First Procedural Order In Investment Dispute With Peru

    LONDON - The International Centre for Settlement of Investment Disputes (ICSID) on Aug. 27 released its first procedural order in an arbitration filed by a company in relation to a mining dispute with the Republic of Peru, establishing the procedural rules that will govern the case (The Renco Group, Inc. v. Republic of Peru, $(UNCT/13/1$)).

    Federal Judge Denies Insurer's Request To Add Nonparties To Defects Insurance Dispute

    DENVER - A Colorado federal judge on Aug. 26 denied a general contractor's insurer's motion to extend the deadline for designation of nonparties at fault so that the insurer may name additional subcontractors and insurers as nonparties at fault to a construction defects coverage dispute (The Phoenix Insurance Co. and St. Paul Surplus Lines Insurance Co. v. Trinity Universal Insurance Company of Kansas, et al., No. 12-01553, D. Colo.; 2013 U.S. Dist. LEXIS 120931).

    New Jersey Panel: Arbitrator's Award Proper In Construction Defects Case

    TRENTON, N.J. - The New Jersey Superior Court Appellate Division on Aug. 27 affirmed an award to the plaintiff in a construction defect case decided by an arbitrator, finding no error by the trial court in confirming the more than $2 million award (Observer Plaza Condominium Association Inc. v. Observer Highway Plaza LLC, et al., No. A-3151-11T4, N.J. Super., App. Div.; 2013 N.J. Super. Unpub. LEXIS 2120).

    Judge Approves Settlement Between Insurers, Insured For Defect Claim Dispute

    LAS VEGAS - A Nevada federal judge on Aug. 23 approved a $410,000 settlement between commercial general liability insurers and an additional insured regarding coverage for an underlying construction defect dispute (Big-D Construction Corp. v. Take It For Granite Too, et al., No. 11-00621, D. Nev.; 2013 U.S. Dist. LEXIS 121865).

    Kmart Settles Cashier Seating Class Suit For $280,000

    SAN FRANCISCO - A California federal judge on Aug. 23 granted preliminary approval of a $280,000 settlement to be paid by Kmart Corp. to end a class complaint by cashiers alleging that they were denied seats at the checkout stands (Colette Delbridge, et al. v. Kmart Corporation, No. 11-2575, N.D. Calif.; 2013 U.S. Dist. LEXIS 120377).

    Florida Woman Hit With $25,000 Default Judgment For BitTorrent Sharing Of Movie

    TAMPA, Fla. - A Florida federal judge on Aug. 23 found a statutory damages award of $25,000 to be "a sufficient deterrent against any future wrongful conduct" by a woman found to have willfully shared a copyrighted movie over the Internet (Bait Products Pty Ltd. v. Angelica Murray, No. 8:13-cv-00169, M.D. Fla.; 2013 U.S. Dist. LEXIS 120170).

    Detroit Retirement Groups: Nondisclosure Statement For Data Access Must Be Waived

    DETROIT - A group of retirement systems covering employees of the bankrupt City of Detroit on Aug. 27 filed a brief seeking the waiver of a nondisclosure statement they signed pertaining to access to confidential information kept in the city's data room (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    9th Circuit Seeks Briefing From Plant, Insurers On Contribution Rights

    SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Aug. 23 directed Chapter 11 debtor Plant Insulation Co. and insurance companies appealing Plant's confirmed plan of reorganization to provide additional briefing on the insurers' argument that the plan and its injunctions affect their contribution rights (In Re: Plant Insulation Company $(Fireman's Fund Insurance Company, et al., v. Plant Insulation Company, et al., Nos. 12-17466 and 12-17467, 9th Cir.$)).

    3rd Circuit: $47M Award Valid, But Other Claims Belong In Bankruptcy Court

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Aug. 27 affirmed a bankruptcy court's decision that the lifting of the automatic stay was limited in its scope to allow a $47 million award for the creditor but that additional claims against the debtor had to be litigated in bankruptcy court (In Re: ABC Learning Centres Ltd n/k/a ZYX Learning Centres Ltd., No. 12-2808, Chapter 15, 3rd Cir.; 2013 U.S. App. LEXIS 17844).

    Federal Circuit Affirms Noninfringement Findings

    WASHINGTON, D.C. - A California federal judge did not err in granting a patent defendant summary judgment in a dispute over surgical trocars, the Federal Circuit U.S. Court of Appeals ruled Aug. 27 (Applied Medical Resources Corp. v. Tyco Healthcare Group d/b/a Covidien, No. 12-1412, Fed. Cir.).

    Judge: Town's Attempt To Enforce Ordinances Is Not Preempted By Cleanup

    EAST ST. LOUIS, Ill. - An Illinois village's lawsuit against ConocoPhillips Co. alleging that the company's Wood River Oil Refinery contaminated land, air and water with benzene and other cancer-causing hydrocarbons in violation of local ordinances is not preempted by a cleanup ordered by the Illinois Environmental Protection Agency (IEPA), an Illinois federal judge held Aug. 26 (Village of Roxana v. Shell Oil Co., et al., No. 3:12-cv-00577, S.D. Ill.; 2013 U.S. Dist. LEXIS 120714).

    Ill. Federal Judge Dismisses Antitrust Claims Against Health Insurer, Hospital

    EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 26 dismissed antitrust claims brought by an outpatient surgery center against a health insurance company and a corporation owning multiple hospitals in Illinois, holding that the plaintiff failed to properly show a relevant market (Marion Healthcare v. Southern Illinois Healthcare, et al., No. 12-871, S.D. Ill.; 2013 U.S. Dist. LEXIS 120722).

    9th Circuit Rules On Standard For Determining Jurisdiction Under CAFA

    PASADENA, Calif. - A California federal judge erred in applying the legal certainty standard to a wage-and-hour class complaint when trying to determine if the $5 million amount in controversy threshold under the Class Action Fairness Act (CAFA) was met, the Ninth Circuit U.S. Court of Appeals ruled Aug. 27, vacating an order to remand the suit to state court and ordering that the preponderance of the evidence standard be used (Robert Rodriguez, et al. v. AT&T Mobility Services LLC, No. 13-56149, 9th Cir.; 2013 U.S. App. LEXIS 17851).