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Split U.S. High Court Orders Disclosure Of Referendum Petitions
WASHINGTON, D.C. - In general, disclosing referendum petitions
does not violate the First Amendment to the U.S. Constitution, a divided
U.S. Supreme Court ruled June 24 (John Doe #1, et al. v. Sam Reed, et al.,
No. 09-559, U.S. Sup.). Read more
Split U.S. High Court: Collective Bargaining Dispute Belongs
In Court
WASHINGTON, D.C. - A dispute over the ratification date of a
collective bargaining agreement (CBA) is for a court to decide, not an
arbitrator, a split U.S. Supreme Court ruled June 24 (Granite Rock Co. v.
International Brotherhood of Teamsters, et al., No. 08-1214, U.S. Sup.). Read more
High Court: U.S. Lacks Subject-Matter Jurisdiction In
Securities Class Action
WASHINGTON, D.C. - Ruling that Section 10(b) of the Securities
Exchange Act of 1934 does not provide a cause of action "to foreign
plaintiffs suing foreign and American defendants for misconduct in
connection with securities traded on foreign exchanges," the U.S.
Supreme Court on June 24 affirmed a federal appellate court's ruling
dismissing the case for lack of subject-matter jurisdiction (Robert
Morrison, et al. v. National Australia Bank Ltd., et al., No. 08-1191, U.S.
Sup.). Read more
9th Circuit Panel Reinstates $ 280M Verdict In Apollo Group
Investor Class Action
SAN FRANCISCO - Ruling that a federal district court erred in
granting Apollo Group Inc. judgment as a matter of law, a Ninth Circuit
U.S. Court of Appeals panel on June 23 reversed the district court's ruling
and remanded with instructions to enter judgment "in accordance with
the jury's verdict" (In re Apollo Group, Inc. Securities Litigation,
No. 08-16971, 9th Cir.). Read more
Judge Grants YouTube Summary Judgment On Viacom's $ 1 Billion
Infringement Claim
NEW YORK - A "general awareness" of infringing
activity on its Web site is not sufficient to find YouTube Inc. guilty of
any copyright infringement claims, a New York federal judge ruled June 23,
granting the online video-sharing service's motion for summary judgment
that it qualifies for safe harbor under the Digital Millennium Copyright
Act (DMCA) (Viacom International Inc., et al. v. YouTube Inc., et al., No.
1:07-cv-02103; and 1:07-cv-03582; S.D. N.Y.). Read more
$ 716 Million WTC Settlement For 1st Responders, Workers
Approved By Federal Judge
NEW YORK - U.S. Judge Alvin K. Hellerstein of the Southern
District of New York on June 23 approved the $ 716 million settlement for
first responders and workers who cleared the rubble of the collapsed World
Trade Center towers after the Sept. 11, 2001, attack; a case management
hearing is scheduled for June 25 to address those claimants who are not
party to the settlement (In re: World Trade Center Disaster Site
Litigation, Nos. 21-100, 21-102, 21-103, S.D. N.Y.). Read more
Moratorium On Gulf Oil Drilling Struck Down By Louisiana
Federal Judge
NEW ORLEANS - A Louisiana federal judge on June 22 struck down
the federal government's six-month moratorium on offshore drilling
operations of deepwater oil wells in the Gulf of Mexico, saying that the
government did not justify the ban and that plaintiffs would suffer
irreparable harm. The government filed a notice of appeal on June 23
(Hornbeck Offshore Services LLC, et al. v. Kenneth Lee Salazar, et al., No.
10-1663, E.D. La.). Read more
Calif. High Court Rules Vonage Marketing E-Mails Did Not
Violate Anti-Spam Law
SAN FRANCISCO - In a unanimous decision, the Supreme Court of
California on June 21 ruled that marketing e-mail messages sent from
multiple, valid e-mail addresses do not constitute "falsified,
misrepresented, or forged header information" that would violate
California's anti-spam law (Craig E. Kleffman v. Vonage Holdings Corp., et
al., No. S169195, Calif. Sup.; 2010 Cal. LEXIS 5765). Read more
Florida Court Overturns $ 521M Verdict Against Accounting Firm
MIAMI - The Florida Third District Court of Appeal on June 23
overturned a jury verdict and final judgment awarding Banco Espirito Santo
International $ 170 million in compensatory damages and $ 351.7 million in
punitive damages on the bank's claims that accounting firm BDO Seidman LLP
was grossly negligent in failing to detect a fraud by BDO's client, the
now-bankrupt E. S. Bankest LLC (BDO Seidman, LLP v. Banco Espirito Santo
International, etc., et al., Nos. 3D09-324, 09-197, 07-2746, 07-2472,
Florida 3rd DCA; 2010 Fla. App. LEXIS 9119). Read more
Continuing Violations Doctrine Does Not Apply To Competition
Law, Court Finds
LOS ANGELES - The continuing violations doctrine does not
apply to unfair competition law claims filed nearly six years after the alleged
overbilling was first noticed, a divided California appeals court held June
22 (Jamshid Aryeh v. Canon Business Solutions Inc., No. B213104, Calif.
App., 2nd Dist.; 2010 Cal. App. LEXIS 941).
Read more
Judge: Actual Payments Required Before Further Excess D&O
Coverage Can Be Accessed
CHIGACO - The plain language of the third- and fourth-layer
excess directors and officers insurance policies requires that the first-
and second-layer excess insurers make actual payments of $ 10 million each
toward the insureds' legal costs in defending underlying securities
litigation lawsuits before the insureds can access coverage under the
third- and fourth-layer excess policies, an Illinois federal judge held
June 22 (Great American Insurance Co. v. Bally Total Fitness Holding Corp.,
No. 06 C 4554, N.D. Ill., Eastern Div.; 2010 U.S. Dist. LEXIS 61553). Read more
Consent Order In Trademark Case Was Admission Of Liability,
4th Circuit Says
RICHMOND, Va. - A Virginia federal judge did not err in
awarding a plaintiff alleging trademark infringement and cybersquatting
violations attorney fees and statutory damages after the defendants
consented to a permanent injunction, the Fourth Circuit U.S. Court of
Appeals held June 21 (Employers Council on Flexible Compensation v. Kenneth
Feltman et al., No. 09-2085, 4th Cir.; 2010 U.S. App. LEXIS 12688). Read more
ACLU Seeks To Intervene In Amazon.com's Suit Over N.C. Sales
Records
SEATTLE - The American Civil Liberties Union on June 23 filed
a motion to intervene in the federal lawsuit Amazon.com filed in April
against the secretary of the North Carolina Department of Revenue (DOR)
opposing his demand for the names, addresses and sales records for every
North Carolina resident who has purchased anything from the online retailer
since 2003 (Amazon.com, LLC v. Kenneth R. Lay, No. 10-664, W.D. Wash.). Read more
Debtor Tells U.S. High Court 9th Circuit 'Wrong'; Car
Deduction Permitted
WASHINGTON, D.C. - A debtor who contends that the Bankruptcy
Code provides for the deduction of vehicle ownership costs regardless of
whether the debtor owns a vehicle free and clear of debt filed a brief with
the U.S. Supreme Court on June 23, contending that an appellate court erred
in denying him that deduction (Jason M. Ransom v. MBNA America Bank, No.
09-907, Chapter 13, U.S. Sup.). Read more
N.J. High Court Waives Statute Of Limitations On
Just-Compensation Claim
TRENTON, N.J. - After finding that a couple did not know for
years that a municipality had taken their property because, among other
reasons, the municipality continued to bill the couple for property taxes,
New Jersey's high court on June 22 ordered that the statute of limitations
on the couple's claim of condemnation without just compensation be waived
and remanded the case for the couple to make that claim (Edward W. and
Nancy M. Klumpp v. Borough of Avalon, No. A-49, N.J. Sup.; 2010 N.J. LEXIS
514). Read more
Unanimous 9th Circuit Panel Affirms Dismissal Of Claims For
EMF Radiation Exposure
SAN FRANCISCO - A unanimous Ninth Circuit U.S. Court of
Appeals panel affirmed the dismissal of electromagnetic field radiation
exposure claims against California agencies and employees on June 22 for
failing to state a claim (Illa I. Garcia, et al. v. California Department
of Forestry & Fire Protection, et al., No. 09-15916, 9th Cir.; 2010
U.S. App. LEXIS 12801). Read more
Court Reverses Dismissal Of Mold Injury Claims, Finds Suit Was
Timely Filed
KNOXVILLE, Tenn. - A Tennessee appeals court on June 22
reversed a trial court's ruling dismissing claims asserted by homeowners
for personal injuries caused by mold, finding that the discovery rule
tolled a one-year statute of limitations on their lawsuit because the
homeowners did not have sufficient facts to conclude that mold in their
house had made them ill (Victoria Dutton, et al. v. Farmers Group Inc., et
al., No. E2009-00746, Tenn. App.; 2010 Tenn. App. LEXIS 395). Read more
Calif. Appeals Panel Affirms $ 452,000 Judgment In Driveway
Easement Dispute Case
VENTURA, Calif. - Finding that a husband and wife had together
engaged in outrageous conduct regarding an easement dispute, a California
appeals court panel on June 22 affirmed a lower court's finding in an
unpublished opinion, holding that the judgment was not uncertain when the
damages were levied at both the husband and wife (Robert Sjoquist, et al.
v. Norman Nebroski, et al., No. B209161, Calif. App., 2nd Dist, Div. 6;
2010 Cal. Read more
Agent Lacked Standing To Sue Lenders, Others, 9th Circuit Panel
Rules
SAN FRANCISCO - A federal judge in California did not abuse
his discretion in dismissing a pro se lawsuit filed by a mortgage and real
estate agent against lenders, investment banks, ratings agencies and investment
bank executives alleged to have caused the financial crisis, a Ninth
Circuit U.S. Court of Appeals panel ruled June 21, because the agent lacked
standing and failed to properly plead his claims (Michael Blomquist, d.b.a.
Michael Scott Properties, Inc., v. Washington Mutual, et al., No. 08-16910,
9th Cir.; 2010 U.S. App. LEXIS 12716).
Read more
SEC: Investment Firm Duped Investors Into Overpaying For CDO Bonds
NEW YORK - The Securities and Exchange Commission sued an
investment advisory firm, its subsidiary, broker-dealer and owner and
president in New York federal court on June 21, arguing that the defendants
engaged in a scheme to deceive the investment firm's investors into
overpaying for collateralized debt obligation (CDO) bonds in violation of
federal securities laws (Securities and Exchange Commission v. ICP Asset
Management, LLC, et al., No. 10-4791, S.D. N.Y.). Read more
Judge Stays Declaratory Judgment Action Pending Resolution Of
Underlying Case
SAN DIEGO - The applicability of a commercial general
liability insurance policy's assault and battery coverage endorsement's
limitation to the defense and indemnity of an underlying wrongful death
action does not require the factual determination of proximate causation
involved in the underlying action, a California federal judge held June 22,
refusing to dismiss an insurer's declaratory judgment action and instead
staying it pending resolution of the underlying case (Evanston Insurance
Co. v. BarkandBrew, Inc. d/b/a La Jolla Brew House, et al., No. 09 CV 2295
JLS [POR], S.D. Calif.; 2010 U.S. Dist. LEXIS 61549). Read more
Trasylol Plaintiffs Denied Interlocutory Appeal Over Bayer
Reports To FDA
MIAMI - The federal judge supervising multidistrict litigation
over Bayer Corp.'s withdrawn blood-clotting drug Trasylol on June 22
refused to allow plaintiffs to appeal a ruling that barred them from
introducing evidence that Bayer provided incomplete information to the Food
and Drug Administration about the drug (In Re: Trasylol Products Liability
Litigation, MDL Docket No. 1928, No. 08-md-1928, S.D. Fla.). Read more
Federal Circuit Reverses Patent Infringement Verdict
WASHINGTON, D.C. - A contractual obligation to take an action
that could infringe a patent does not of itself amount to infringement, the
Federal Circuit U.S. Court of Appeals held June 23 (Lincoln National Life
Insurance Company v. Transamerica Life Insurance Company, et al., Nos.
2009-1403, -1491, Fed. Cir.). Read more
Judge Finds Woman Lacks Standing To Bring Suit For Failure To
Modify Loan
PRESCOTT, Ariz. - An Arizona woman lacked standing to bring a
lawsuit against Bank of America and the National Mortgage Association
(Fannie Mae) for their failure to fulfill their contractual obligations
under the Home Affordable Modification Program (HAMP) because the program
does not provide an express or implied private right of action, a federal
judge ruled June 22 in dismissing the woman's case with prejudice (Andrea
Marks v. Bank of America, N.A., et al., No. 10-cv-08039, D. Ariz.; 2010
U.S. Dist. LEXIS 61489). Read more
8th Circuit: Silent Plan Prevails Over SPD That Grants Discretion
ST. LOUIS - A federal district court erred in reviewing an
ERISA plan's denial of disability benefits under an abuse-of-discretion
standard of review, rather than a de novo standard of review, even though
the plan's summary plan description (SPD) granted the plan administrator
discretion to interpret the plan and determine benefit eligibility, where
the plan did not grant discretion or provide that the SPD could amend the
plan, the Eighth Circuit U.S. Court of Appeals ruled June 21 (Eric S.
Ringwald v. Prudential Insurance Company of America, No. 09-1933, 8th Cir.;
2010 U.S. App. LEXIS 12603). Read more
2nd Circuit Affirms Dismissal Of Improper Termination Of
Medicare Part D Case
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals
on June 22 affirmed the dismissal of a case brought by a Medicare Part D
prescription drug provider against the federal government for wrongful
termination of its contract, saying the provider failed to exhaust
administrative remedies as required before bringing suit (Fox Insurance Co.
v. Kathleen Sebelius, et al., No. 10-1157, 2nd Cir.; 2010 U.S. App. LEXIS
12730). Read more
Copyright Claim Dismissed, With Leave To Amend, By Texas
Federal Judge
HOUSTON - A copyright infringement plaintiff in Texas federal
court saw its claim survive dismissal on one theory but dismissed
nonetheless under another on June 21 (Axxiom Manufacturing Inc. v. McCoy
Investments, Inc. d/b/a/ Forecast Sales, No. H-09-3735, S.D. Texas; 2010
U.S. Dist. LEXIS 61206). Read more
New York Panel Reverses Jury Verdict For Man Hit By Subway
Train, Dismisses Case
NEW YORK - A New York appeals panel on June 22 overturned a $
3.5 million verdict awarded to a man who was struck by a subway train,
ruling that the plaintiff's expert failed to provide the jury with solid
calculations concerning train operator reaction times (Dustin Dibble v. New
York City Transit Authority, No. 116779/06, N.Y. Sup., App. Div., 1st
Dept.). Read more
Dismissal Upheld, On Differing Grounds, By Federal Circuit In
Patent Case
WASHINGTON, D.C. - The Federal Circuit U.S. Court of Appeals
on June 23 affirmed the dismissal of a patent-related case although on
different grounds than used by a district court, citing its recent holding that
there is no private right of action to challenge inventorship of a pending
application (David Halpern v. PeriTec Biosciences, Ltd., et al., No.
2010-1042, Fed. Cir.). Read more
Judge Orders Insurer To Provide Documents, Answer Interrogatories
WASHINGTON, D.C. - A federal judge in the District of Columbia
on June 22 ordered an insurer defending its insured to supply full and
complete answers to the interrogatories and to comply with all of another
insurer's document requests regarding the insurer's defense costs incurred
in underlying actions alleging flood damage against the insured (TIG
Insurance Co. v. Firemen's Insurance of Washington, D.C., No. 08-0528, D.
D.C.; 2010 U.S. Dist. LEXIS 61519). Read more
7th Circuit: Creditor's Appeal Denied; Bankruptcy Issues
Remain Unresolved
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals
on June 23 affirmed a bankruptcy court's ruling that denied a creditor's
claim that it was entitled to collect tax debt, holding that issues
pertaining to the bankruptcy estate had to be resolved before the creditor
could make an appeal (In Re: Lonnie McKinney, No. 08-1271, Chapter 13, 7th
Cir.; 2010 U.S. App. LEXIS 12855). Read more
Judge: Couple's Federal Lawsuit Interferes With State Court
Foreclosure Action
CLEVELAND - A federal judge in Ohio on June 22 dismissed a
couple's lawsuit against Bank of America seeking to enjoin foreclosure on
their property because the lawsuit interferes with the lender's state court
foreclosure action (Laura Beth Czerwinski, et al. v. Bank of America, et
al., No. 10 CV 51, N.D. Ohio; 2010 U.S. Dist. LEXIS 61705). Read more
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