LexisNexis® Legal Newsroom
    Mealey's Insurance - Insurer Drops Dismissal Bid In Rapid-American Declaratory Judgment Action

    NEW YORK - One of three insurance companies sued by Chapter 11 debtor Rapid-American Corp. and its asbestos creditors for $64 million in remaining policy limits for asbestos claims on July 20 withdrew its dismissal motion in New York federal bankruptcy court in favor of allowing the debtor to file its proposed amended complaint (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Insurance - Insurer: Asbestos Claimants' Negligence Claims Barred By W.R. Grace Injunction

    WILMINGTON, Del. - Asbestos personal injury claimants' negligence and bad faith claims against an insurance company are barred not only by an injunction in former Chapter 11 debtor W.R. Grace & Co.'s bankruptcy case but also by past litigation in which the same claims were twice found to be subject to the injunction, the insurer says in a July 17 brief filed in response to the claimants' summary judgment bid in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139 [Ralph Hutt and Carl Osborn v. Maryland Casualty Company, No. 14-50867], D. Del. Bkcy.).

    Mealey's Litigation Procedure - Former Uber Driver Claims Injury From Data Breach, Opposes Dismissal Motion

    SAN FRANCISCO - In a July 20 brief opposing dismissal, a former driver for Uber Technologies Inc. asserts that he was a victim of identity theft as a result of a data breach experienced by his former employer and, therefore, he has sustained an injury sufficient to established standing to bring his class action complaint against Uber (Sasha Antman v. Uber Technologies Inc., et al., No. 3:15-cv-01175, N.D. Calif.).

    Mealey's Insurance - No Coverage Due For Losses Incurred As A Result Of Oil Spill, Federal Judge Says

    NEW YORK - An insured is required to reimburse its insurers for defense costs that were paid in connection with an underlying suit arising out of an oil spill because no coverage is owed for the underlying suit, which seeks only economic losses incurred as the result of the seizure of its oil, a New York federal judge said July 16 (Petroterminal De Panama S.A. v. Houston Casualty Co., et al., No. 14-9554, S.D. N.Y.; 2015 U.S. Dist. LEXIS 92653).

    Mealey's IP/Tech - California Federal Judge Grants Dismissal Of Trade Dress Litigation

    LOS ANGELES - A trade dress dispute over "Element Periodic Table Soap" was dismissed by a California federal judge on July 17 on jurisdiction grounds (Bubble Genius LLC v. Mariann Smith, No. 15-66, C.D. Calif.; 2015 U.S. Dist. LEXIS 93492).

    Mealey's Insurance - Consequential Damage Is An 'Occurrence' Under Insurance Policy, Panel Says

    TRENTON, N.J. - Unintended and unexpected consequential damages caused by faulty work of subcontractors constitute "property damage" and an "occurrence" under commercial general liability insurance policies, a New Jersey appeals panel ruled July 21 (Belmont Condominium Association Inc. v. Arrowpoint Capital Corp., et al., No. A-4187-12T4, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1749).

    Mealey's PI/Product Liability - Takata, Auto Manufacturers Move To Dismiss Complaints In Air Bag Litigation

    MIAMI - Takata Corp. and seven auto manufacturers filed separate motions on July 17 to dismiss the second amended complaint filed by economic loss plaintiffs in the multidistrict air bag litigation in the U.S. District Court for the Southern District of Florida (In re: Takata Airbag Products Liability Litigation, No. 15-02599-CIV-Moreno, MDL No. 15-2599, S.D. Fla.).

    Mealey's IP/Tech - Judge Strikes Claims In Lidoderm Pay-For-Delay Case Filed By Retailers

    SAN FRANCISCO - Retail establishments do not have standing to bring claims on their own behalf as indirect purchasers and have not adequately pleaded that they are entitled to injunctive relief in a pay-for-delay case, a California federal judge ruled July 17, while permitting the grocery stores an opportunity to amend their complaint (United Food and Commercial Workers Local 1776 & Participating Employers Health and Welfare Fund, et al. v. Teikoku Pharma USA Inc., et al., No. 14-02521, N.D. Calif.).

    Mealey's Insurance - Judge Allows Insured To Amend Complaint In Insurance Bad Faith Suit

    SAN ANTONIO - A federal judge in Texas on July 17 granted an insured's motion for leave to file an amended complaint in an insurance bad faith lawsuit, ruling that the primary purpose of the amended complaint is not to defeat federal jurisdiction (Eloy Flores v. Arch Insurance Co., No. 15-299, W.D. Texas; 2015 U.S. Dist. LEXIS 93645).

    Mealey's Insurance - Insurer's Denial Of Coverage Letter Was Ambiguous, Judge Rules

    CAMDEN, N.J. - A federal judge in New Jersey on July 17 denied an insurer's motion for summary judgment in an insurance bad faith lawsuit, ruling that the insurer's letter partially denying coverage on a homeowners insurance policy was ambiguous (Joseph Liguori, et al. v. Certain Underwriters at Lloyds London Subscribing to Policy #AJD8955, No. 14-5898, D. N.J.; 2015 U.S. Dist. LEXIS 93090).

    Mealey's Banking & Finance - 6th Circuit Finds Motion To Remand Foreclosure-Related, Claim Was Time-Barred

    CINCINNATI - After finding that a motion to remand a case filed by a property owner in relation to the foreclosure of her condominium was time-barred, the Sixth Circuit U.S. Court of Appeals on July 17 affirmed a decision that refused to remand the action and dismissed the case (Viola Chambers v. HSBC Bank USA, N.A., et al., No. 15a0155p.06, 6th Cir.; 2015 U.S. App. LEXIS 12338).

    Mealey's PI/Product Liability - Summary Judgment Denied In Prozac Birth Defect Case Despite Missing Evidence

    MONTGOMERY, Ala. - Although a Prozac birth defect plaintiff has limited evidence that she took the drug and although the prescribing physician is dead, an Alabama federal judge on July 20 denied Eli Lilly & Co.'s motion for summary judgment for lack of product identification and the learned intermediary defense (Dana Fields, et al. v. Eli Lilly and Company, No. 13-35, M.D. Ala., Northern Div.; 2015 U.S. Dist. LEXIS 93948).

    Mealey's IP/Tech - Divided Federal Circuit: No Commercial Marketing Of Biologic Without FDA License

    WASHINGTON, D.C. - A divided panel of the Federal Circuit U.S. Court of Appeals on July 21 affirmed dismissal of California state law unfair competition and conversion claims, but vacated a California federal judge's interpretation of the Biologics Price Competition and Innovation Act (BPCIA) as permitting commercial marketing of a biologic before receiving U.S. Food and Drug Administration approval (Amgen Inc. et al. v. Sandoz Inc. et al., No. 15-1499, Fed. Cir.).

    Mealey's Securities/D&O Liability - J.P. Morgan To Pay $388M To Settle Federal Securities Fraud Claims

    NEW YORK - J.P. Morgan Chase & Co. on July 17 agreed pay $388 million to settle claims that it violated provisions of federal securities law by misrepresenting the investment quality of certain mortgage-backed securities it sold to investors, according to court documents filed in New York federal court (Forth Worth Employees' Retirement Fund v. J.P. Morgan Chase & Co., et al., No. 09-3701, S.D. N.Y.).

    Mealey's Litigation Procedure - PCA Issues Award On Costs In UNCITRAL Arbitration Against Poland

    THE HAGUE, Netherlands - A decision by the Permanent Court of Arbitration (PCA) was released July 20 in which a tribunal ordered a Netherlands company and the Republic of Poland to pay costs incurred during arbitration over land rights (Enkev Beheer B.V. v. The Republic of Poland, No. 2013-01, PCA).

    Mealey's Insurance - Insurer Has No Duty To Defend Negligent Supervision Claim, Panel Says, Reverses

    TRENTON, N.J. - A New Jersey appeals panel on July 20 reversed a lower court's ruling that a homeowners insurer has a duty to defend its insureds against a negligent supervision claim stemming from sexual molestation claims against their teenage son, vacating the court's award of $44,656.32 in attorney fees to the insureds (P.D and J.D., individually and on behalf of M.D. v. The Germantown Insurance Co., et al., No. A-3829-12T2, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1731).

    Mealey's Insurance - Insurer's Suit Over Data Breach Coverage Dismissed By California Federal Judge

    LOS ANGELES - Because an insurer failed to comply with its policy's mediation provision, a California federal judge on July 17 granted a motion to dismiss the insurer's declaratory judgment suit related to coverage for a data breach, holding that nonjudicial remedies had not yet been exhausted (Columbia Casualty Co. v. Cottage Health System, No. 2:15-cv-03432, C.D. Calif.; 2015 U.S. Dist. LEXIS 93456).

    Mealey's IP/Tech - California Federal Judge Denies Attorney Fee Award In Patent Case

    SAN FRANCISCO - Although winning a post-trial motion for a directed verdict of no direct patent infringement, Marvell Semiconductor Inc. on July 17 was denied in its effort to recoup the attorney fees it incurred in defending the suit (France Telecom S.A. v. Marvell Semiconductor Inc., No. 12-4967, N.D. Calif.; 2015 U.S. Dist. LEXIS 93470).

    Mealey's IP/Tech - California Federal Judge Sides With Nintendo In Patent Dispute

    SAN FRANCISCO - Allegations that Nintendo of America Inc. and Nintendo Company Ltd. (Nintendo, collectively) infringed a patent with its popular "Game Boy" device were rejected July 17 by a California federal judge (Quintal Research Group Inc. v. Nintendo of America Inc. et al., No. 13-888, N.D. Calif.; 2015 U.S. Dist. LEXIS 93488).

    Mealey's Insurance - Reinsurers Say Their Demand For Arbitration Is Not An Attempt To Nullify Order

    NEW YORK - A group of London market reinsurers told a federal court in New York on July 17 that their demand for a second arbitration with their reinsured to recover more than $17 million is not an attempt to nullify the court's confirmation of an earlier arbitration award (Arrowood Indemnity Co. v. Equitas Insurance Limited, et al., No. 13-cv-07680, S.D. N.Y.).

    Mealey's Bankruptcy - Insurer: Asbestos Claimants' Negligence Claims Barred By W.R. Grace Injunction

    WILMINGTON, Del. - Asbestos personal injury claimants' negligence and bad faith claims against an insurance company are barred not only by an injunction in former Chapter 11 debtor W.R. Grace & Co.'s bankruptcy case but also by past litigation in which the same claims were twice found to be subject to the injunction, the insurer says in a July 17 brief filed in response to the claimants' summary judgment bid in Delaware federal bankruptcy court (In re: W.R. Grace & Co., et al., No. 01-01139 [Ralph Hutt and Carl Osborn v. Maryland Casualty Company, No. 14-50867], D. Del. Bkcy.).

    Mealey's Insurance - Judge: Negligent Supply Of Information Not Cause Of Insureds' Property Damage

    ORLANDO, Fla. - A condominium association's claim of negligent supply of information was not the cause of insureds' faulty construction that resulted in water intrusion and other property damage, a Florida federal judge ruled July 20, granting summary judgment to an insurer with regard to the claim (St. Paul Fire & Marine Insurance Co. v. Cypress Fairway Condominium Association Inc., et al., No. 13-1088, M.D. Fla.; 2015 U.S. Dist. LEXIS 94012).

    Mealey's Securities/D&O Liability - Federal Judge Appoints Lead Plaintiffs, Lead Counsel In Securities Class Action

    NEW YORK - A federal judge in New York on July 16 granted the motion of a group of union pension funds for appointment as lead plaintiffs and for appointment of lead counsel in a securities class action, accepting a magistrate judge's report and recommendation (R&R) calling for the motion to be granted (Brian Ford v. VOXX International Corp., et al., No. 14-4183, E.D. N.Y.; 2015 U.S. Dist. LEXIS 92646).

    Mealey's Bankruptcy - Insurer Drops Dismissal Bid In Rapid-American Declaratory Judgment Action

    NEW YORK - One of three insurance companies sued by Chapter 11 debtor Rapid-American Corp. and its asbestos creditors for $64 million in remaining policy limits for asbestos claims on July 20 withdrew its dismissal motion in New York federal bankruptcy court in favor of allowing the debtor to file its proposed amended complaint (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's PI/Product Liability - Partial Summary Judgment Granted In Mentor ObTape MDL Bellwether Case

    COLUMBUS, Ga. - The Georgia federal judge presiding over the Mentor ObTape pelvic mesh multidistrict litigation on July 17 granted in part and denied in part defendant Mentor Corp.'s motion for summary judgment in a bellwether case (In Re: Mentor Corp. ObTape Transobturator Sling Products Liability Litigation, MDL Docket No. 2004, No. 04-md-2004, Beryl Cole v. Mentor Corp., No. 11-5073, M.D. Ga., Columbus Div.; 2015 U.S. Dist. LEXIS 93001).