LexisNexis® Legal Newsroom
Mealey's Bankruptcy - American Airlines To Pay Airport $16.99M To Settle Contract Dispute

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on Feb. 10 filed in the U.S. Bankruptcy Court for the Southern District of New York a stipulated agreement with Los Angeles World Airports (LAWA), the management company for Los Angeles International Airport (LAX), under which AMR would pay $16,991,969.06 to settle disputed charges the airline owes to the airport (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Litigation Procedure - English Justice Dismisses Application In Dispute Over Oil Supply Contracts

LONDON - An English justice on Feb. 7 rejected an application filed by a Romanian oil company in a dispute over supply contracts for crude oil on the basis of an abuse of process (OMV Petrom SA v. Glencore International AG, No. [2014] EWHC 242 [Comm], England and Wales High, Comm.).

Mealey's Banking & Finance - Federal Judge Denies Motion To Remand Suit Related To Failed Bank

NASHVILLE, Tenn. - A federal judge in Tennessee on Feb. 7 denied a motion to remand a suit arising from a failed bank's alleged breach of contract, finding that the suit does not meet the "state law exception" (I & M.J. Gross Co., et al. v. Federal Deposit Insurance Corp., et al., No. 13-0151, M.D. Tenn.; 2014 U.S. Dist. LEXIS 15616).

Mealey's Antitrust/Unfair Competition - 3rd Circuit: Remedy For Nonexistent Super Bowl Seats Lies Only In Contract

PHILADELPHIA - A ticket to a sporting event is a contract, the Third Circuit U.S. Court of Appeals said in a Feb. 10 decision affirming a lower court's dismissal of fraud claims brought by fans who did not get the seats promised for Super Bowl XLV (Richard Pollock, et al. v. NFL, et al., No. 13-1987, 3rd Cir.).

Mealey's IP/Tech - Connecticut Federal Judge Dismisses Counterclaims In Copyright Case

HARTFORD, Conn. - Four copyright infringement plaintiffs won dismissal Feb. 7 of counterclaims that they breached their contract with myriad defendants in a dispute over software (East Point Systems Inc., et al. v. Steven Maxim, et al., No. 13-215, D. Conn.).

Mealey's Insurance - Judge: No Additional Discovery Will Cure Failure To Submit Proper Proof Of Loss

NEW ORLEANS - Finding that no additional discovery will change the fact that an insured failed to submit a complete, sworn proof of loss in support of a supplemental claim for Hurricane Isaac damage, a Louisiana federal judge on Feb. 7 granted a motion by the Federal Emergency Management Agency to dismiss the insured's breach of contract and declaratory judgment lawsuit (Richard H. Clark, Sr., et al. v. FEMA, et al., No. 13-5232, E.D. La.; 2014 U.S. Dist. LEXIS 15871).

Mealey's Health Law - 2nd Circuit Affirms Injunction Halting Termination Of Medicare Contracts

NEW YORK - In a Feb. 7 unpublished opinion, a panel of the Second Circuit U.S. Court of Appeals affirmed with a modification a lower court's decision to grant a preliminary injunction to keep a health insurance company group from terminating approximately 2,200 physicians from its Medicare Advantage program (Fairfield County Medical Association, et al. v. United Healthcare of New England, et al., No.13-4608, 2nd Cir.; 2014 U.S. App. LEXIS 2319).

Mealey's Bankruptcy - Wal-Mart Says Its Claim In Atari Bankruptcy Is Valid Based On Contract

NEW YORK - Wal-Mart Stores Inc., a creditor in the Chapter 11 bankruptcy of video game maker Atari Inc., filed a brief Feb. 7 in the U.S. Bankruptcy Court for the Southern District of New York supporting its claim for $163,782.86, contending that Atari's objection to the claim should be overruled "because the claim is well-supported by evidence that has not been meaningfully rebutted" (In Re: Atari Inc., No. 13-10176, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Insurance - Florida Panel: Suit Seeking Additional Coverage For Hurricane Damage Was Timely

MIAMI - A Florida appeals panel on Feb. 5 found that an insured's breach of contract lawsuit seeking additional coverage for Hurricane Wilma damage was timely filed and not barred by a Florida five-year statute of limitations, reversing and remanding a lower court's ruling in favor of the insurer (Angela M. Rizo v. State Farm Florida Insurance Co., No. 3D12-3088, Fla. App., 3rd Dist.).

Mealey's Insurance - Judge Declines To Dismiss Breach Of Contract Action Against Insurance Agent

NEW HAVEN, Conn. - A Connecticut federal judge on Feb. 4 refused to dismiss an insurer's breach of contract lawsuit against an insurance agent regarding the agent's alleged duty to repay compensation received on premium payments that were returned (PHL Variable Insurance Co. v. Haynes Brokerage Group Inc., No. 13-1271, D. Conn.; 2014 U.S. Dist. LEXIS 13804).

Mealey's Insurance - Insurer Has No Duty To Defend Faulty Work Claims, Maine Federal Judge Finds

PORTLAND, Maine - Under Maine law, a commercial general liability insurer has no duty to defend an insured against an underlying lawsuit for breach of contract arising from the insured's alleged faulty workmanship, a Maine federal judge ruled Feb. 4 (Ted Berry Company Inc. v. Excelsior Insurance Co., No. 13-342, D. Maine; 2014 U.S. Dist. LEXIS 13585).

Mealey's Insurance - 11th Circuit Finds Insurer Had No Duty To Defend, Indemnify Convenience Store

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on Feb. 4 found no error in a trial court's decision to not give preclusive effect to a state court's finding that a decedent was not an employee of a business that was sued for wrongful death, affirming a judgment that the business's insurer did not breach its contract or act in bad faith in denying coverage in the underlying suit (Nationwide Mutual Insurance Co., et al. v. Housan Sharif, et al., No. 13-11151, 11th Cir.; 2014 U.S. App. LEXIS 2114).

Mealey's Litigation Procedure - 9th Circuit Affirms Denial Of Class Certification Over Home Depot Fees

SAN FRANCISCO - The existence of five contracts handling fee disclosures differently, contested store signage and oral representations creates individualized issues and required denying class certification of California unfair competition law (UCL) claims, a Ninth Circuit U.S. Court of Appeals panel affirmed Feb. 3 (Benjamin Berger, et al. v. Home Depot USA Inc., DBA The Home Depot, No. 11-55592, 9th Cir.; 2014 U.S. App. LEXIS 2059).

Mealey's Labor & Employment - 10th Circuit Affirms Ruling For Hotel On Employee's Mold Claims

DENVER - The 10th Circuit U.S. Court of Appeals on Feb. 3 affirmed a summary judgment ruling in favor of a hotel on claims asserted by a former employee who alleged that his contract was terminated after he made complaints about mold (Guy DeFazio v. Starwood Hotels & Resorts Worldwide Inc., No. 13-1197, 10th Cir.; 2014 U.S. App. LEXIS 2030).

Mealey's Antitrust/Unfair Competition - 9th Circuit Affirms Denial Of Class Certification Over Home Depot Fees

SAN FRANCISCO - The existence of five contracts handling fee disclosures differently, contested store signage and oral representations creates individualized issues and required denying class certification of California unfair competition law (UCL) claims, a Ninth Circuit U.S. Court of Appeals panel affirmed Feb. 3 (Benjamin Berger, et al. v. Home Depot USA Inc., DBA The Home Depot, No. 11-55592, 9th Cir.; 2014 U.S. App. LEXIS 2059).

Mealey's PI/Product Liability - 3rd Circuit Panel Upholds Dismissal Of Construction Contract Case

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Feb. 3 affirmed dismissal of a construction company's breach of contract action based on judicial estoppel, agreeing that the plaintiff "affirmatively misrepresented its procedural position" (Haines & Kibblehouse Inc. v. Balfour Beatty Construction Inc., No. 11-2826, 3rd Cir.; 2014 U.S. App. LEXIS 2031).

Mealey's Toxic Tort/Environmental - 10th Circuit Affirms Ruling For Hotel On Employee's Mold Claims

DENVER - The 10th Circuit U.S. Court of Appeals on Feb. 3 affirmed a summary judgment ruling in favor of a hotel on claims asserted by a former employee who alleged that his contract was terminated after he made complaints about mold (Guy DeFazio v. Starwood Hotels & Resorts Worldwide Inc., No. 13-1197, 10th Cir.; 2014 U.S. App. LEXIS 2030).

Mealey's Insurance - Panel Remands Case To Allow Insured To Show Damages For Aggravation, Inconvenience

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Feb. 3 ruled that a lower federal court erred when it denied an insured's former executive director the opportunity to prove consequential damages in the form of aggravation and inconvenience attributable to an insurer's breach of contract, vacating and remanding the case in part (Robert E. Graham v. National Union Fire Insurance Company of Pittsburgh, PA, No. 13-1517, 4th Cir.; 2014 U.S. App. LEXIS 2041).

Mealey's Insurance - Reinsurer Says That Contract Interpretation Should Be Arbitrated

NEW HAVEN, Conn. - A reinsurer told a federal court in Connecticut on Jan. 29 that a dispute regarding alleged obligations under a reinsurance assumption agreement should be put before an arbitration panel (Trenwick America Reinsurance Corporation v. CX Reinsurance Company Limited, No. 13-cv-01264, D. Conn.).

Mealey's Litigation Procedure - New Jersey Couple Sues Health Care Provider Over Theft Of Laptops, Data

NEWARK, N.J. - With allegations including breach of contract, negligence and consumer fraud, a husband and wife on Jan. 28 filed suit against their health care provider in New Jersey federal court related to the theft of two of the companies' laptops that may have contained sensitive customer information (Karen Pekelney, et al. v. Horizon Healthcare Services Inc., No. 2:14-cv-00584, D. N.J.).

Mealey's IP/Tech - New Jersey Couple Sues Health Care Provider Over Theft Of Laptops, Data

NEWARK, N.J. - With allegations including breach of contract, negligence and consumer fraud, a husband and wife on Jan. 28 filed suit against their health care provider in New Jersey federal court related to the theft of two of the companies' laptops that may have contained sensitive customer information (Karen Pekelney, et al. v. Horizon Healthcare Services Inc., No. 2:14-cv-00584, D. N.J.).

Mealey's Insurance - Alabama High Court: Networks Do Not Have To Contract With Health Care Provider

MONTGOMERY, Ala. - A divided Alabama Supreme Court on Jan. 24 held that a trial court erred in submitting a claim for intentional interference with business relationship to a jury in a health care network dispute, saying the defendants had no obligation to do business with the plaintiff health care provider (Alabama Psychiatric Services, et al. v. A Center for Eating Disorders, No. 1110703, Ala. Sup.; 2014 Ala. LEXIS 9).

Mealey's Health Law - Alabama High Court: Networks Do Not Have To Contract With Health Care Provider

MONTGOMERY, Ala. - A divided Alabama Supreme Court on Jan. 24 held that a trial court erred in submitting a claim for intentional interference with business relationship to a jury in a health care network dispute, saying the defendants had no obligation to do business with the plaintiff health care provider (Alabama Psychiatric Services, et al. v. A Center for Eating Disorders, No. 1110703, Ala. Sup.; 2014 Ala. LEXIS 9).

Mealey's Insurance - Justice: Insurers Properly Denied Coverage Based On Rational Policy Interpretations

NEW YORK - A New York justice on Jan. 22 granted five builders risk insurers' motion for summary judgment in an insured's breach of contract and bad faith lawsuit seeking $6,409,029 in additional insurance benefits for loss of income and $140,568 in extra expenditures stemming from water leaks that occurred at its Manhattan luxury condominium complex (W2001Z/15 CPW Realty LLC v. Lexington Insurance Co., et al., No. 650593/2010, N.Y. Sup., New York Co.).

Mealey's Health Law - Miss. Federal Judge Leaves Breach Of Contract Claim In Denial Of Benefits Suit

HATTIESBURG, Miss. - A Mississippi federal judge on Jan. 22 denied a health insurance company's motion for summary judgment on a plaintiff's breach of contract claim in a dispute over denial of benefits but granted the motion as to the plaintiff's remaining claims (Larry R. Mixon v. The Golden Rule Insurance Co., No. 12-234, S.D. Miss.; 2014 U.S. Dist. LEXIS 7760).