SAN DIEGO - A general liability insurer sufficiently proved a potential for coverage under another insurance policy regarding the settlement of construction defects claims against a mutual insured, a California appeals panel affirmed April 11, also finding that the judge did not abuse his discretion in allocating the amounts of contribution (Axis Surplus Insurance Co. v. Glencoe Insurance Ltd., No. D058963, Calif. App., 4th Dist., Div. 1; 2012 Cal. App. LEXIS 410).
DALLAS - Reddy Ice Holdings Inc., the largest manufacturer and distributor of packaged ice in the United States, filed for Chapter 11 bankruptcy April 12 in the U.S. Bankruptcy Court for the Northern District of Texas, listing liabilities of more than $530 million and assets of $434 million (In Re: Reddy Ice Holdings Inc., No. 12-32349, Chapter 11, N.D. Texas Bkcy.). Subscribers may view the petition and financial declaration available within the full update.
KNOXVILLE, Tenn. - The Tennessee Court of Appeals on April 12 affirmed a $50,000 award in a construction defects action for breach of contract, disagreeing with the plaintiffs' contention that the jury should have awarded them damages on other claims brought in their complaint (Michael L. Johnson, et al. v. Todd Ford, No. E2011-00486-COA-R3-CV, Tenn. App.; 2012 Tenn. App. LEXIS 233).
CHICAGO - A federal judge in Wisconsin did not err in dismissing a retirement system's amended securities class action complaint against MGIC Investment Corp. and others because the retirement system failed to show that the defendants issued any misrepresentations in violation of the federal securities laws, a Seventh Circuit U.S. Court of Appeals panel ruled April 12 (Fulton County Employees' Retirement System v. MGIC Investment Corp., et al., No. 11-1080, 7th Cir.; 2012 U.S. App. LEXIS 7382).
TACOMA, Wash. - A federal judge in Washington on April 11 granted in part and denied in part a motion to dismiss a putative class action brought by a plaintiff who says a bank charged her fees for a credit card payment protection service even though she was ineligible for the program (Denton v. Department Store National Bank, No.10-05830, W.D. Wash.; 2012 U.S. Dist. LEXIS 51106).
WEST PALM BEACH, Fla. - A federal judge in Florida on April 12 dismissed with prejudice a putative class action alleging that a Wells Fargo Bank N.A. subsidiary knowingly participated in a $68 million Ponzi scheme and violated state racketeering laws, finding that the plaintiff did not meet the "relatedness" and "continuity" requirements to state a Florida Civil Remedies for Criminal Practices Act (Florida RICO Act) claim (Horace-Manasse v. Wells Fargo Bank N. A. No. 10-81623, S.D. Fla.; 2012 U.S. Dist. LEXIS 51354).
WASHINGTON, D.C. - The Trademark Trial and Appeal Board (TTAB) properly rejected as functional a trademark application for a closure cap for blood collection tubes, the Federal Circuit U.S. Court of Appeals ruled April 12 in a divided ruling (In re: Becton, Dickinson and Company, No. 11-1111, Fed. Cir.). Subscribers may view the decision within the full update.
HARTFORD, Conn. - All underlying claims against a lawyer insured are excluded from coverage under a professional liability insurance policy because they are alleged to have arisen out of the insured's activities on behalf of an entity other than his law firm, a Connecticut appeals panel found April 10, reversing and remanding a lower court's ruling that the insurer had a duty to defend (Maurizio D. Lancia v. State National Insurance Company, et al., No. AC 32987, Conn. App.; 2012 Conn. App. LEXIS 178).
WASHINGTON, D.C. - The Federal Circuit U.S. Court of Appeals on April 11 ruled 7-6 that vaccine injury petitioners who filed untimely claims can request attorney fees and costs (Melissa Cloer, M.D. v. Secretary of Health and Human Services, No. 09-5052, Fed. Cir.). Subscribers may view the opinion and dissent available within the full update.
CAMDEN, N.J. - The property damage and personal injury claims for residential solvent vapor intrusion filed by a New Jersey couple survived a defense motion to dismiss for failing to state a claim in an order filed April 11 in the U.S. District Court for the District of New Jersey (Michael Leese, et uxor v. Lockheed Martin Corp., No. 11-5091, D. N.J.; 2012 U.S. Dist. LEXIS 50963).
AKRON, Ohio - The Ninth District Ohio Court of Appeals on April 11 affirmed the denial of Medicaid nursing home benefits by the Summit County Department of Job and Family Services (DJFS) because the plaintiff had more than $1,500 in resources in her bank account and a revocable trust (Elma Gsellman v. Ohio Department of Job & Family Services, et al., No. 25954, Ohio App., 9th Dist., Summit Co.; 2012 Ohio App. LEXIS 1421).
CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 12 found that if an insured can obtain reimbursement of the $8.5 million it paid to settle underlying fraud claims, "it will have gotten away with fraud," affirming a lower federal court's ruling in favor of the insurer in the insured's suit seeking coverage for the settlement (Ryerson Inc. v. Federal Insurance Company, No. 10-3522, 7th Cir.; 2012 U.S. App. LEXIS 7372).
SANTA ANA, Calif. - Because it has been previously determined that MGA Entertainment's primary insurers have a duty to defend an underlying Bratz Dolls trademark dispute, the excess insurance policies are not implicated, a California federal judge ruled April 12, further finding that the bad faith counterclaim against the excess insurers must be dismissed (MGA Entertainment, et al. v. The Hartford Insurance Group, et al., No. 08-0457, C.D. Calif.). Subscribers may view the order available in the full update.
PHILADELPHIA - Saying the plaintiff failed to marshal sufficient facts to support her consumer fraud claims, a Pennsylvania federal judge dismissed a putative class action over flaming box fans on April 10, but granted the plaintiff leave to refile (Deborah Osness, individually and on behalf of all others similarly situated, v. Lasko Products Inc., No. 11-3846, E.D. Pa.; 2012 U.S. Dist. LEXIS 504200).
NEW YORK - Finding that a panel acted properly in excluding certain evidence from an arbitration proceeding, a federal judge in New York on April 12 granted a group of reinsurers' motion to confirm an arbitration award and denied an insurer's motion to vacate the award (Ace American Insurance Company, et al. v. Christiana Insurance LLC, No. 11-cv-8862, S.D. N.Y.).
OPELIKA, Ala. - An Alabama federal judge on April 10 denied a motion to stay an order remanding a class complaint over mortgage fees to Alabama state court (Celestine Thomas, et al. v. Countrywide Home Loans, No. 11-399, M.D. Ala.; 2012 U.S. Dist. LEXIS 49844).
DALLAS - A law firm established that an underlying claim against it related to a referral agreement with another firm constituted professional services that triggered its insurer's duty to defend under a professional liability policy, a Texas federal judge ruled April 11, granting in part the firm's motion for summary judgment (Shore Chan Bragalone DePumpo LLP, et al. v. Greenwich Insurance Co., No. 3:11-cv-00891, N.D. Texas; 2012 U.S. Dist. LEXIS 50811).
ST. LOUIS - A federal judge in Missouri on April 11 denied a motion to dismiss negligence claims brought by a mall owner due to alleged construction defects in a parking garage, ruling that the economic loss doctrine does not bar the claims (Westfield LLC, et al. v. IPC Inc., et al., No. 4:11CV155, E.D. Mo.; 2012 U.S. Dist. LEXIS 50779).
WILMINGTON, Del. - Finding that a settlement between shareholders and a company and certain of its directors and officers regarding the sale of the company was fair, a Delaware Chancery Court chancellor approved the settlement on April 12 (In RE CKX, Inc. Shareholders Litigation, No. 5545-CS, Del. Chanc.).
BUTTE, Mont. - The attorneys appointed by the U.S. Bankruptcy Court for the District of Montana to represent the bankruptcy attorneys in the Chapter 11 bankruptcy proceeding of the Yellowstone Mountain Club LLC (YMC) on April 11 filed a brief in the Bankruptcy Court opposing the former president of YMC's motion for leave to file a lawsuit in district court alleging a conspiracy against him by the bankruptcy attorneys (In Re: Yellowstone Mountain Club LLC, No. 08-61570, D. Mont. Bkcy.).
NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on April 12 agreed to modify the automatic stay in its bankruptcy proceeding to allow a couple to pursue its personal injury lawsuit against the company (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).
MINNEAPOLIS - Northwest Airlines' defined contribution pension plan does not discriminate based on age in violation of the Employee Retirement Income Security Act or the Age Discrimination in Employment Act (ADEA), even though the formula for determining a participant's benefit level includes factors that are "correlated with age," the Eighth Circuit U.S. Court of Appeals affirmed April 9 (Northwest Airlines, Inc., et al. v. Raymond B. Phillips, et al., No. 11-1730, 8th Cir.; 2012 U.S. App. LEXIS 7072).
CINCINNATI - A federal judge in Ohio on April 11 granted a motion to certify a class of veterans and spouses of veterans seeking injunctive relief regarding how the Ohio Medicaid program calculates eligibility for the state's Home and Community Based Medicaid Waiver Program (Betty A. Ledford, et al., v. Michael B. Colbert, in his capacity as Director of the Ohio Department of Job and Family Services, No. 1:10cv706, S.D. Ohio, Western Div.; 2012 U.S. Dist. LEXIS 50613).
NEW YORK - Bankrupt Eastman Kodak Co. on April 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion by the company's shareholders that sought the appointment of an official committee of equity security holders pursuant to 11 U.S. Code Section 1102(a) (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief within the full update.
MIAMI - A Florida woman's claim that cigarette smoking caused chronic obstructive pulmonary disease (COPD) or emphysema was reinstated April 11 by the Third District Florida Court of Appeal, which ruled that a defense expert violated an order in limine and offered "speculative" opinions that persuaded a jury that the plaintiff's discovery of her injury was outside the statute of limitations (Phyllis Frazier vs. Philip Morris USA Inc. et al., No. 3D11-580, Fla. App. 3rd Dist.; 2012 Fla. App. LEXIS 5476).