LexisNexis® Legal Newsroom
Judge Says Reinsured's Loss Did Not Reach Reinsurance Agreement's Trigger Point

NEW YORK - A federal judge in New York granted summary judgment to a reinsurer on Oct. 17 because the reinsured's losses did not reach a reinsurance agreement's $5 million trigger point (Seneca Insurance Company Inc. v. Everest Reinsurance Company, No. 11-cv-07846, S.D. N.Y.).

Judge Stays Petition, Finds Validity Of Awards Should Be Determined In Mexico

NEW YORK - A New York federal judge on Oct. 17 stayed a petition to confirm two arbitration awards, including a $311 million damages award, finding that a Mexican court should determine the validity of the awards under Mexican law (Conproca S.A. DE C.V. v. Petroleos Mexicanos and Pemex Refinancion, No. 11-9165, S.D. N.Y.; 2013 U.S. Dist. LEXIS 150141).

N.Y. Appellate Court Reverses Order In Health Care Premium Suit

ALBANY, N.Y. - A New York state appeals court on Oct. 17 modified an order of a lower court in a suit contesting changes to a state law regulating premium rates, reversing the grant of summary judgment in favor of the plaintiffs while affirming the denial of summary judgment in favor of the defendants (Healthnow New York Inc. v. New York State Insurance Department, et al., N.Y. Sup., App. Div., 3rd Dept., No. 516179; 2013 N.Y. App. Div. LEXIS 6733).

Software Maker Fails To Allege Agreement; Antitrust Claims Fail, 2nd Circuit Holds

NEW YORK - A software company failed to allege facts demonstrating that insurers' requiring the use of a rival estimating software was anything more than parallel conduct, the Second Circuit U.S. Court of Appeals ruled Oct. 18 in an unpublished order affirming the dismissal of antitrust and trademark infringement claims (Vedder Software Group Ltd. v. Insurance Services Office, Inc., et al., No. 13-1267, 2nd Cir.; 2013 U.S. App. LEXIS 21118).

New York Court Affirms Full Death Benefit In Non-Work-Related Cancer Case

NEW YORK - Nothing in the state workers' compensation law requires apportioning a death benefit between work-related asbestos disease and non-work-related causes of death, the New York Court of Appeals held Oct. 15 (In the matter of Gaudenzia, Hroncich v. Con Edison, et al., No. 145, N.Y. App.; 2013 N.Y. LEXIS 2852).

Shareholder, Directors, Officers Ask Court To OK Settlement Of Derivative Suit

NEW YORK - A shareholder and certain of a company's directors and officers asked a New York federal court on Oct. 16 to give preliminary approval of a settlement reached regarding a shareholder derivative lawsuit (Carl Braun v. Zhiguo Fu, et al., No. 11-cv-4383, S.D. N.Y.).

Dewey & LeBoeuf, Creditor Agree To More Than $1.04M Claim Related To 401(k) Plan

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of former law firm Dewey & LeBoeuf on Oct. 17 issued an order approving a stipulation in which the administrator of the former law firm's 401(k) plan will have an allowed claim against the bankruptcy estate valued at $1,044,310.46 (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

Justice Permits Joint Trial Of 3 Cases, Orders Individual Trials For 4 Others

NEW YORK - Three cases in a group of seven may be tried together, but differences in the remaining four require individual trial, a New York justice held Oct. 17 in partially granting a motion for joint trial (Daniel Carlucci v. A.W. Chesterton Co. Inc., et al., Louis Fishbein v. A.W. Chesterton Co. Inc., et al., Morton Frieder v. A.W. Chesterton Co. Inc., et al., Andre Krekora v. A.W. Chesterton Co. Inc., et al., Michael Lightsy v. A.W. Chesterton Co. Inc., et al., Jose Perez v. A.W. Chesterton Co. Inc., et al., John Ryan v. A.W. Chesterton Co. Inc., et al., Nos. 190486-11, 190160-12, 190212-12, 190395-11, 190518-11, 190422-11, 190493-11, N.Y. Sup., New York Co.).

Panel Finds Opinion Linking Bankruptcy To Deloitte's Alleged Failings Speculative

NEW YORK - A trial court correctly excluded as speculative expert testimony that, but for an auditing firm's failures, a medical financing company would have restructured and would not have filed for bankruptcy, a Second Circuit U.S. Court of Appeals panel held Oct. 16 (Dennis J. Buckley v. Deloitte & Touche USA, et al., No. 12-3522-cv, 2nd Cir.; 2013 U.S. App. LEXIS 20854).

2nd Circuit: Ruling Stands; Expert's Testimony Would Not Affect Debtor's Decision

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Oct. 16 affirmed a bankruptcy court's decision to grant a creditor's motion excluding the testimony of the trustee's expert on grounds that it would not have altered the debtor company's decision regarding restructuring (Dennis Buckley v. Deloitte & Touche USA LLP, No. 12-3522, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 20854).

Report: Securities, Business Litigation Filings Continue To Drop In 3rd Quarter

NEW YORK - Although the number of new securities and business litigation filings and regulatory enforcement actions declined for the third straight quarter, they did so at a much slower pace, according to a report released Oct. 15 by industry analyst Advisen Ltd.

2nd Circuit Affirms: Trustee Failed To Show Debtor's Transfers Were Fraudulent

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Oct. 15 affirmed a bankruptcy court's ruling that a trustee failed to show that certain prepetition transfers by a debtor company were fraudulent (Buchwald Capital Advisors LLC v. JP Morgan Chase Bank NA $(In Re: M. Fabrikant & Sons Inc.$), No.12-4335, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 20758).

Judge Appoints Arbitration Umpire For Reinsurance Arbitration

NEW YORK - A federal judge in New York on Oct. 15 appointed an arbitration umpire who had not been nominated by either party for a reinsurance arbitration regarding millions of dollars paid in connection with asbestos-related claims (American Home Assurance Company v. Employers Insurance Company of Wausau, No. 13-cv-05169, S.D. N.Y.).

2nd Circuit Won't Rehear Free Speech Case Over Blog Threats To Judges

NEW YORK - A case in which the Second Circuit U.S. Court of Appeals found a blogger's comments about federal judges to be "more than sufficient to permit a reasonable jury" to find that the blogger's postings constituted "a true threat - beyond a reasonable doubt" and, therefore, not protected by the First Amendment, will not be reheard, the court decided Oct. 15 (United States of America v. Harold Turner, No. 11-196, 2nd Cir.).

Georgia Federal Judge Transfers Patent Dispute To New York Federal Court

ATLANTA - A design patent owner won transfer Oct. 15 of a declaratory judgment noninfringement action (Spanx Inc. v. Times Three Clothier LLC, No. 13-710, N.D. Ga.).

Magistrate Judge Imposes Adverse Inference Over Failure To Preserve Emails

NEW YORK - A federal judge in New York on Oct. 11 held that an adverse inference jury instruction should be imposed against a plaintiff company in a breach of contract suit after finding that its failure to implement a litigation hold to preserve relevant electronically stored information constituted gross negligence (SJS Distribution Systems Inc. v. Sam's East Inc., a/k/a Sam's Club, No. 11 CV 1229, E.D. N.Y.; 2013 U.S. Dist. LEXIS 147549).

Parties To Reinsurance Arbitration Ask Court To Seal Arbitration Information

NEW YORK - Parties to a confidentiality agreement related to a reinsurance arbitration told a New York federal court on Oct. 11 that the confidentiality agreement states that certain arbitration information remains sealed (Ace Property And Casualty Insurance Company v. Certain Underwriters At Lloyd's, No. 13-cv-06569, S.D. N.Y.).

New York Justice Finds Coworker Testimony Overcomes Judgment

NEW YORK - Coworker testimony creates the possibility of exposure to asbestos in original valve parts, and evidence of work with larger valves invalidates evidence focused on smaller valves, a New York justice held in an opinion posted Oct. 10 (David Kelly, as executor of the estate of David L. Kelly v. Airco Welders Supply, et al., No. 105643/08, N.Y. Sup., New York Co.).

2nd Circuit Affirms Contempt Findings In Trademark Dispute

NEW YORK - A New York federal judge did not err in imposing sanctions against a musician for violating a 2006 injunction order, the Second Circuit U.S. Court of Appeals ruled Oct. 10 (Ervin Mears v. Glen Montgomery, No. 11-3895, 2nd Cir.).

Attorney: Bankruptcy Judge In ResCap Case Should Be Disqualified For Bias

NEW YORK - An attorney who represented a creditor in the Chapter 11 bankruptcy of Residential Capital LLC (ResCap) on Oct. 13 moved to disqualify the bankruptcy judge from presiding over any future developments in the case on grounds he has shown personal bias against the attorney and her former client (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

Investors: MF Global Defense Cost Cap Should Not Be Raised To $40 Million

NEW YORK - The representatives of a class of customers who sued MF Global Inc. (MFGI), an affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on Oct. 11 filed a brief arguing that the "soft cap" the bankruptcy court imposed on expenses should not be lifted to permit the payment of defense costs (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D, N.Y. Bkcy.).

Justice Finds Co-worker Testimony Insufficient For Gasket Maker's Liability

NEW YORK - A coworker's failure to identify when, where or how often he worked with another man dooms asbestos-related lung cancer claims, a New York justice held in an opinion posted Oct. 10 (Joan M. Nolan, individually and as Administratrix for the Estate of Thomas Robert Nolan Sr. v. A.O. Smith Water Products Co., No. 108180/06, N.Y. Sup.).

Kodak: Ricoh Patent Claims Should Be Disallowed On The Merits

NEW YORK - Bankrupt Eastman Kodak Co. on Oct. 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the patent claims of Ricoh Co. Ltd. and one of its affiliates should be dismissed on the merits (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

Investors' Lightsquared Plan Proposes To Pay All General Unsecured Claims

NEW YORK - The investment fund that owns bankrupt Lightsquared Inc. on Oct. 9 filed an amended disclosure statement to its plan of reorganization, which the investment fund contends is the only plan proposed by any party that pays all general unsecured creditors the full principal amount of their allowed claims in cash (In Re: Lightsquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.).

Judge Reduces Punitives In Zometa Verdict But Denies Novartis New Trial

BROOKLYN, N.Y. - A New York federal judge on Oct. 9 denied a new trial in a Zometa jaw injury case but reduced the punitive damages award from $10 million to $900,000 (Ian Newman, et al. v. Novartis Pharmaceuticals Corporation, No. 2:06-431, E.D. N.Y.).