Mealey's Insurance - Panel Upholds Dismissal Of Complaint Against New Jersey Insurance Guaranty

TRENTON, N.J. - An insurer provided proper notice of cancellation of an automobile insurance policy, a New Jersey appeals panel ruled June 5, also affirming dismissal of a complaint against New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) (Wilkie D. Bowen v. New Jersey Property Liability Insurance Guaranty Association, et al., No. A-2517-12T2, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1294).

Mealey's Insurance - N.J. Panel Affirms Ruling In Insurer's Favor In Suit Over Failed Mortgage Deal

TRENTON, N.J. - A New Jersey appeals panel on June 6 affirmed a lower court's ruling that an insured failed to provide timely notice of an underlying breach of contract claim stemming from a failed real estate transaction and, therefore, coverage is barred (Templo Feunte De Vida Corp., et al. v. National Union Fire Insurance Company of Pittsburgh, P.A., No., A-4516-12T1, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1303).

Mealey's Insurance - New Jersey Panel: Insurers Can Withhold Payments To Recoup Overpayments

TRENTON, N.J. - In a per curiam opinion, a New Jersey appeals court on June 5 affirmed the dismissal of a reimbursement suit brought by dentists and a dental association against two health insurers for allegedly wrongfully recouping overpayments made, saying statutory provisions allowed the insurers to withhold payment on subsequent claims for the overpayments (New Jersey Dental Association, et al. v. Horizon Blue Cross Blue Shield of New Jersey, et al., No. A-1834-12T3, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1291).

Mealey's Health Law - New Jersey Panel: Insurers Can Withhold Payments To Recoup Overpayments

TRENTON, N.J. - In a per curiam opinion, a New Jersey appeals court on June 5 affirmed the dismissal of a reimbursement suit brought by dentists and a dental association against two health insurers for allegedly wrongfully recouping overpayments made, saying statutory provisions allowed the insurers to withhold payment on subsequent claims for the overpayments (New Jersey Dental Association, et al. v. Horizon Blue Cross Blue Shield of New Jersey, et al., No. A-1834-12T3, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1291).

Mealey's Labor & Employment - New Jersey Federal Judge Certifies Title Examiners In Wage-And-Hour Action

NEWARK, N.J. - A New Jersey federal judge on May 29 conditionally certified a collective action filed by title examiners who allege that their employer improperly included additional compensation they received for certain tasks when calculating their overtime rate (Cora Bath, et al. v. Red Vision Systems, Inc., No. 13-2366, D. N.J.; 2014 U.S. Dist. LEXIS 73563).

Mealey's Litigation Procedure - New Jersey Federal Judge Certifies Title Examiners In Wage-And-Hour Action

NEWARK, N.J. - A New Jersey federal judge on May 29 conditionally certified a collective action filed by title examiners who allege that their employer improperly included additional compensation they received for certain tasks when calculating their overtime rate (Cora Bath, et al. v. Red Vision Systems, Inc., No. 13-2366, D. N.J.; 2014 U.S. Dist. LEXIS 73563).

Mealey's Insurance - 'Counseling Incident' Involving Former Priest Not Covered, Federal Judge Rules

NEWARK, N.J. - There is no question that a former priest had knowledge of a "counseling incident" at the time an insurance policy began, a New Jersey federal judge ruled May 29, concluding that the policy's "prior acts" provision fails to provide coverage for a parishioner's claims that the priest had an irreconcilable conflict of interest in providing marriage counseling because he was having an affair with the parishioner's wife (Henry Drew and Michael Doerr v. Church Mutual Insurance Co., No. 13-cv-01906 [JLL][MAH], D. N.J.; 2014 U.S. Dist. LEXIS 73562).

Mealey's Health Law - N.J. Federal Judge Allows Doctor To Pursue False Claims Involving His Practice

NEWARK, N.J. - In an unpublished opinion, a New Jersey federal judge on May 30 allowed a doctor to pursue the submission of false claims made by his medical practice to a diagnostic testing laboratory but dismissed claims involving allegations of false claims involving other providers to the laboratory (United States of America, ex rel. James J. Judd, M.D. v. Quest Diagnostics Inc., No. 10-4914, D. N.J.; 2014 U.S. Dist. LEXIS 73760).

Mealey's IP/Tech - New Jersey Federal Judge Denies Relief In Copyright, Trademark Case

TRENTON, N.J. - A plaintiff not only lost its bid for entry of a preliminary injunction on May 23 but also saw its allegations of copyright infringement dismissed by a New Jersey federal judge (Zany Toys LLC v. Pearl Enterprises LLC, No. 13-5262, D. N.J.).

Mealey's Insurance - N.J. Federal Judge Denies Motion To Intervene In Environmental Coverage Suit

NEWARK, N.J. - An environmental remediation company that performed cleanup services for an insured is not entitled to intervene in the insured's suit seeking coverage from its insurers because the company's interests are adequately represented by the insured, a New Jersey federal judge said May 22 (Castoro & Co. Inc. v. Hartford Accident & Indemnity Co. Inc. et al., No. 14-1305, D. N.J.; 2014 U.S. Dist. LEXIS 70312).

Mealey's Insurance - Judge Declines To Remand Superstorm Sandy Case Based On Damages, Diversity

NEWARK, N.J. - Even though a company's complaint against its insurer for damages sustained during Superstorm Sandy did not specify a damages amount, a New Jersey federal judge on May 14 found that the damages could easily exceed the $75,000 threshold amount for federal jurisdiction, leading him to deny the plaintiff's motion to remand to state court (Carevel LLC v. Aspen American Insurance Co., et al., No. 2:13-cv-07581, D. N.J.; 2014 U.S. Dist. LEXIS 65928).

Mealey's Insurance - Panel: Reimbursement Claim Against Insurance Guaranty Association Is Barred

TRENTON, N.J. - An insurer's claim for equitable reimbursement against the New Jersey Property-Liability Insurance Guaranty Association (PLIGA) as statutory administrator of the unsatisfied claim and judgment fund (UCJF) is precluded under UCJF law and the PLIGA Act New Jersey Statutes Annotated Section (N.J.S.A.) 17:30A-1 to -20, a New Jersey appeals panel affirmed May 14 (21st Century Insurance Co. v. New Jersey Property-Liability Insurance Guaranty Association as statutory administrator of unsatisfied claim and judgment fund, No. A-1773-12T2, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1103).

Mealey's Insurance - Panel: Insurer, Insurance Agents' Relationship Did Not Constitute A Franchise

TRENTON, N.J. - The relationship between an insurer and insurance agents did not constitute a franchise, a New Jersey appeals panel affirmed May 13, finding that the insurer's termination of exclusive agency agreements (EAs) did not breach the implied covenant of good faith and fair dealing (Mario Deluca, et al. v. Allstate New Jersey Insurance Co., No. A-2724-11T4, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 1090).

Mealey's Health Law - Surgeon Files Suit In New Jersey Federal Court Over Low Payment

NEWARK, N.J. - A New Jersey orthopedic surgeon on May 9 sued a health insurer and plan administrator in federal court for allegedly underpaying for out-of-network services provided to a patient (Dr. Marc S. Menkowitz v. Blue Cross Blue Shield of Illinois, et al., No. 14-2946, D. N.J.).

Mealey's Toxic Tort/Environmental - Judge Grants Government's Motion To Enforce Consent Decree, Denies Modification

NEWARK, N.J. - A federal judge in New Jersey on May 9 ordered nondebtor defendants in a Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) lawsuit to pay past due civil penalties as required by a consent decree, ruling that changes to the conditions at the property did not warrant modifying the terms of the agreement (United States of America v. Alsol Corporation, et al., No. 09-3026, D. N.J.; 2014 U.S. Dist. LEXIS 64759).

Mealey's Insurance - Asbestos Coverage Suit To Proceed To Arbitration, New Jersey Federal Judge Rules

NEWARK, N.J. - A New Jersey federal judge on May 7 rejected an insured's arguments that a coverage dispute over asbestos claims should not proceed to arbitration, noting that a settlement agreement entered into by the insured clearly includes an arbitration provision (The Flowserve Corp. f/k/a The Durametallic Corp. v. United States Fire Insurance Co., No. 14-676, D. N.J.; 2014 U.S. Dist. LEXIS 62959).

Mealey's Toxic Tort/Environmental - Panel: Act-Of-War Defense Bars Claim Seeking Recovery Of Toxic Dust Cleanup Costs

NEW YORK - The Second Circuit U.S. Court of Appeals on May 2 affirmed a federal court's finding that the attacks on the World Trade Center (WTC) on Sept. 11, 2001, constituted an act of war, allowing the defendants in a Comprehensive Environmental Response, Compensation, and Liability Act lawsuit to raise the defense against claims seeking reimbursement for cleanup costs of toxic dust (In Re: September 11 Litigation: Cedar & Washington Associates, LLC v. The Port Authority of New York and New Jersey, et al., No. 10-4197, 2nd Cir.; 2014 U.S. App. LEXIS 8293).

Mealey's Insurance - Panel: Act-Of-War Defense Bars Claim Seeking Recovery Of Toxic Dust Cleanup Costs

NEW YORK - The Second Circuit U.S. Court of Appeals on May 2 affirmed a federal court's finding that the attacks on the World Trade Center (WTC) on Sept. 11, 2001, constituted an act of war, allowing the defendants in a Comprehensive Environmental Response, Compensation, and Liability Act lawsuit to raise the defense against claims seeking reimbursement for cleanup costs of toxic dust (In Re: September 11 Litigation: Cedar & Washington Associates, LLC v. The Port Authority of New York and New Jersey, et al., No. 10-4197, 2nd Cir.; 2014 U.S. App. LEXIS 8293).

Mealey's Litigation Procedure - $190M Neurontin Antitrust Pact Gets Preliminary Approval From Federal MDL Judge

NEWARK, N.J. - A New Jersey federal judge on May 2 preliminarily approved a $190 million antitrust class settlement of allegations that Pfizer Inc. and a predecessor kept generic Neurontin off the market, causing commercial direct buyers to pay more for the brand-name drug (In Re: Neurontin Antitrust Litigation, MDL Docket No. 1479, No. 02-1390, Louisiana Wholesale Drug Company, Inc., et al., Nos. 02-1830 and 02-2731, D. N.J.).

Mealey's Antitrust/Unfair Competition - $190M Neurontin Antitrust Pact Gets Preliminary Approval From Federal MDL Judge

NEWARK, N.J. - A New Jersey federal judge on May 2 preliminarily approved a $190 million antitrust class settlement of allegations that Pfizer Inc. and a predecessor kept generic Neurontin off the market, causing commercial direct buyers to pay more for the brand-name drug (In Re: Neurontin Antitrust Litigation, MDL Docket No. 1479, No. 02-1390, Louisiana Wholesale Drug Company, Inc., et al., Nos. 02-1830 and 02-2731, D. N.J.).

Mealey's Insurance - New Jersey Panel Finds Insurer Reserved Its Right To Disclaim Coverage

TRENTON, N.J. - In a reservation-of-rights letter, a homeowners insurer sufficiently informed its insureds that it might disclaim coverage in an underlying civil case, a New Jersey appeals panel found May 2, affirming a lower court's finding that the insurer did not owe coverage and did not act in bad faith with its coverage decision (Lonnie Petersen, et al. v. New Jersey Manufacturers Insurance Co., No. A-0459-12T4, N.J. Super., App. Div.; 2014 N.J. Super. Unpub. LEXIS 995).

Mealey's PI/Product Liability - $190M Neurontin Antitrust Pact Gets Preliminary Approval From Federal MDL Judge

NEWARK, N.J. - A New Jersey federal judge on May 2 preliminarily approved a $190 million antitrust class settlement of allegations that Pfizer Inc. and a predecessor kept generic Neurontin off the market, causing commercial direct buyers to pay more for the brand-name drug (In Re: Neurontin Antitrust Litigation, MDL Docket No. 1479, No. 02-1390, Louisiana Wholesale Drug Company, Inc., et al., Nos. 02-1830 and 02-2731, D. N.J.).

Mealey's PI/Product Liability - Asbestos Floor Tile Action Filed 4 Years After Death Untimely, Federal Judge Says

NEWARK, N.J. - A woman's action alleging asbestos exposure from Union Carbide Corp. floor tiles came more than four years after her husband's death, long past the two-year limit for such actions, a New Jersey federal judge held April 30 (Rosilynd Hillary Gensler v. Union Carbide Corp., No. 13-5244, D. N.J.; 2014 U.S. Dist. LEXIS 59688).

Mealey's Toxic Tort/Environmental - Asbestos Floor Tile Action Filed 4 Years After Death Untimely, Federal Judge Says

NEWARK, N.J. - A woman's action alleging asbestos exposure from Union Carbide Corp. floor tiles came more than four years after her husband's death, long past the two-year limit for such actions, a New Jersey federal judge held April 30 (Rosilynd Hillary Gensler v. Union Carbide Corp., No. 13-5244, D. N.J.; 2014 U.S. Dist. LEXIS 59688).

Mealey's Toxic Tort/Environmental - Tenant Appeals Dismissal Of Property Mold Action To 3rd Circuit

TRENTON, N.J. - After a New Jersey federal judge dismissed claims asserted against a borough and various officials in relation to the condition of an apartment and allegedly missing and damaged personal property, a tenant on April 28 filed a notice of appeal of the decision to the Third Circuit U.S. Court of Appeals (Robert McCann v. The Borough of Magnolia, et al., No. 14-170, D. N.J.; 2014 U.S. Dist. LEXIS 48040).