LexisNexis® Legal Newsroom
D.C. Circuit Affirms Summary Judgment For PBGC On USAir Pilots' ERISA Claims

WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on Nov. 1 affirmed summary judgment in favor of the Pension Benefit Guaranty Corp. (PBGC) on claims by USAirways Inc. pilots that the PBGC violated the Employee Retirement Income Security Act and the terminated plan when it made its final benefit determinations (Thomas G. Davis, et al. v. Pension Benefit Guaranty Corporation, No. 12-5274, D.C. Cir.; 2013 U.S. App. LEXIS 22254).

'Penthouse' Reorganization Plan Would Pay More Than $565.12M To Noteholders

WILMINGTON, Del. - Bankrupt PMGI Holdings Inc., the parent company of the adult entertainment empire carrying the name "Penthouse," on Nov. 1 filed an amended disclosure statement supporting its second amended joint plan of reorganization under which first- and second-lien noteholders would receive a combined $565,124,621.86 and all administrative and priority tax claims would be paid in full (In Re: PMGI Holdings Inc., No. 13-12404, Chapter 11, D. Del. Bkcy.).

Class Seeks OK To File Amicus Brief In DOJ's Antitrust Case Against Airline Merger

WASHINGTON, D.C. - The class suing US Airways Group Inc. and American Airlines Inc. in the U.S. District Court for the District of Columbia on Nov. 4 moved for permission to intervene in the U.S. Department of Justice's (DOJ) antitrust lawsuit against the airlines by filing an amicus curiae brief (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Group Seeking Stay Relief In Detroit Bankruptcy Says It Has Valid Reason

DETROIT - The nonprofit cooperative that seeks to pursue litigation against the bankrupt City of Detroit on Nov. 1 filed a brief arguing that the bankruptcy court should grant it relief from the automatic stay and contended that the city has "erroneously" claimed that the nonprofit failed to identify a valid reason for doing so (In Re: City of Detroit, No.13-53846, Chapter 9, E.D. Mich. Bkcy.).

Federal Circuit Reverses Infringement Finding, Vacates Damage Award

WASHINGTON, D.C. - An Arizona federal judge erroneously denied a defendant's motion for judgment as a matter of law (JMOL) that prosecution history estoppel bars the application of the doctrine of equivalents to a plaintiff's claim for patent infringement, the Federal Circuit U.S. Court of Appeals ruled Nov. 4 (Integrated Technology Corporation v. Rudolph Technologies Inc., Nos. 12-1593, -1618, Fed. Cir.).

U.S. High Court Hears Arguments On What Is Compensable Donning/Doffing

WASHINGTON, D.C. - The time workers spend putting on attire that may look like regular clothes but is worn to protect them is compensable under the Fair Labor Standards Act (FLSA), despite a collective bargaining agreement (CBA) stating otherwise, Eric Schnapper of the University of Washington School of Law in Seattle told the U.S. Supreme Court Nov. 4, arguing on behalf of employees of United States Steel Corp. (Clifton Sandifer, et al. v. United States Steel Corporation, No. 12-417, U.S. Sup.).

7th Circuit: Employer Not Responsible For 2 Union Employees' Salaries

CHICAGO - An arbitrator erred in ruling that a tire manufacturing company was responsible for paying the salaries of a union's president and benefit representative, a Seventh Circuit U.S. Court of Appeals panel ruled Nov. 1 (Titan Tire Corporation of Freeport, Inc. v. United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, et al., No. 12-1152, 7th Cir.; 2013 U.S. App. LEXIS 22298).

Bankrupt MF Global Seeks More Than $20M In Fraudulent Transfers Involving Stock

NEW YORK - Bankrupt MF Global Holdings Ltd. (MFGH) on Oct. 30 filed an adversary complaint against JCF MFG Hold Co LLC, alleging that it is entitled to recover more than $20 million in allegedly fraudulent transfers (MF Global Holdings Ltd., as plan administrator v. JCF MFG HoldCo LLC $(In Re: MF Global Holdings Ltd.$)), No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

Rehearing En Banc Denied In Novell's Monopolization Suit Against Microsoft

DENVER - The 10th Circuit U.S. Court of Appeals on Nov. 1 denied Novell Inc.'s petition for rehearing en banc of a panel ruling that Novell failed to present evidence sufficient for a jury to find that Microsoft Corp. unlawfully used its dominant position in the personal computing operating-systems market to monopolize the word-processing and spreadsheet applications markets when it withdrew access to its namespace extensions (Novell, Inc. v. Microsoft Corporation, No. 12-4143, 10th Cir.).

2 Pegasus Oil Spill Putative Class Actions Survive Dismissal Motions

LITTLE ROCK, Ark. - Two putative class action lawsuits seeking property damage compensation stemming from the rupture of Exxon Mobil Corp.'s Pegasus pipeline that inundated Mayflower, Ark., with heavy Canadian tar stands oil survived motions to dismiss Oct. 31 in U.S. District Court for the Eastern District of Arkansas (Ellen Burgess, et al. v. Exxon Mobil Corporation, No. 4:13-cv-199; Rudy Webb, et al. v. Exxon Mobil Corp., No. 4:13-cv-00232, E.D. Ark., Western Div.).

Dewey & LeBoeuf Trustee Seeks Return Of $89,813.65 In Alleged Fraudulent Transfers

NEW YORK - The liquidating trustee in the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Oct. 30 filed two adversary complaints against creditors, seeking to recover a total of $89,813.65 in what he contends are fraudulent transfers (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

Judge: $14M Union Pension Claim Against Hostess Not An Administrative Expense

NEW YORK - A federal judge in the U.S. District Court for the Southern District of New York on Oct. 29 affirmed a bankruptcy court's decision that held that a $14 million claim asserted by the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union in the Chapter 11 bankruptcy of Hostess Brands Inc. should not be treated as an administrative expense claim (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

Comcast: Involuntary Chapter 11 Petition Against Houston Astros Valid

HOUSTON - Comcast Corp., which filed an involuntary Chapter 11 bankruptcy petition against the Houston Regional Sports Network LP - the parent company of Major League Baseball team the Houston Astros - on Oct. 29 filed a brief arguing that its involuntary petition is valid under the Bankruptcy Code (In Re: Houston Regional Sports Network LP, No. 13-35998, Chapter 11, S.D. Texas Bkcy.).

Detroit Retirees Committee: Pension Rights Claim Is 'Ripe' For Judicial Decision

DETROIT - The Official Committee of Retirees in the Chapter 9 bankruptcy case of the City of Detroit on Oct. 30 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan contending that its claim that pension benefits face "imminent" harm as a result of the city's bankruptcy is ripe for judicial decision (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

XTG LLC Receiver: Canadian Case Should Be Recognized By U.S. Bankruptcy Court

WILMINGTON, Del. - The court-appointed receiver in the Canadian bankruptcy proceeding of Xchange Technology Group LLC (XTG) on Oct. 29 filed a brief seeking recognition of a foreign proceeding in the U.S. Bankruptcy Court for the District of Delaware (In Re: Xchange Technology Group LLC., No. 13-12809, Chapter 15, D. Del. Bkcy.).

Federal Judge Dismisses RICO Claims For Lack Of Jurisdiction

GREENBELT, Md. - A Maryland federal judge's order was filed in a district court on Oct. 29, dismissing claims asserted by a Dubai corporation against the former owner of a consultant firm for lack of jurisdiction (Bhari Information Technology System Private Limited v. Komal Sriram, No. 13-1480, D. Md.; 2013 U.S. Dist. LEXIS 154693).

Australian Justice Finds Landlord Complied With Asbestos Cleanup Orders

SYDNEY, Australia - An Australian justice on Oct. 28 dismissed an action filed by a tenant who alleged that asbestos at a rental property put him and his family in danger, finding that his landlord had complied with previous court orders requiring him to remediate the site (El-Saeidy v NSW Land & Housing Corporation, $(No $) $(2013$) NSWSC 1554, New South Wales Sup.).

San Bernardino Says Unions' 9th Circuit Appeal Is 'Legally Inappropriate'

RIVERSIDE, Calif. - The bankrupt City of San Bernardino, Calif., on Oct. 28 filed a brief in the U.S. Bankruptcy Court for the Central District of California opposing a motion by the California Public Employees' Retirement System (CalPERS) seeking certification of a direct appeal to the Ninth Circuit U.S. Court of Appeals regarding the city's eligibility to file for Chapter 9 bankruptcy (In Re: San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

6 Chambers Of Commerce: Merger Of US Airways, American Airlines Should Be Allowed

WASHINGTON, D.C. - Six chambers of commerce on Oct. 29 moved in the U.S. District Court for the District of Columbia for permission to file amicus curiae briefs in the antitrust lawsuit brought by the U.S. Department of Justice (DOJ) against US Airways Group Inc. and American Airlines Inc. related to the proposed merger of the two airlines. The chambers of commerce contend that their respective communities will benefit from the proposed merger (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Class Of MF Global Customers: Allegations Against Auditor Are Pleaded 'Sufficiently'

NEW YORK - Customers who invested private funds with bankrupt MF Global Holdings Ltd. (MFGH) on Oct. 28 filed a brief in the U.S. District Court for the Southern District of New York arguing that their class action complaint sufficiently alleges a negligence claim against MFGH's auditor, Pricewaterhouse Coopers LLP (PWC) (Joseph Deangelis, et al. v. Jon Corzine $(In Re: MF Global Holdings Ltd. Investment Litigation$), No. 11-07866, Chapter 11, S.D. N.Y.).

Dewey & LeBoeuf Seeks To Recover $583,521.56 In Preferential Transfers

NEW YORK - The liquidating trustee in the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Oct. 28 filed nine adversary complaints against various creditors seeking to recover a total of $583,521.56 in what he contends constitute preferential transfers (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

Federal Judge Won't Dismiss Trade Dress Claims Against Sears

CHICAGO - Allegations that Sears Holding Corp. infringed the "unique and inherently distinctive appearance" of Weber-Stephen Products LLC's "Genesis" grills will proceed, an Illinois federal judge ruled Oct. 25 (Weber-Stephen Products LLC v. Sears Holding Corporation, No. 13-1686, N.D. Ill.).

Former Employee Of Bankrupt 'Penthouse' Affiliates: Claims Process 'Not Proper'

WILMINGTON, Del. - A former employee of Friendfinder Networks Inc. and Various Inc. - two companies affiliated with bankrupt PMGI Holdings Inc., the adult entertainment empire that carries the name "Penthouse" - on Oct. 29 filed a brief contending that the company's proposed reorganization plan is not "confirmable" (In Re: PMGI Holdings Inc., No. 13-12404, Chapter 11, D. Del. Bkcy.).

Fracking Company Files For Bankruptcy, Seeks $45M In Post-Petition Funding

WILMINGTON, Del. - Green Field Energy Services Inc. (GFES), an oil and gas company that engages in the practice known as "fracking," on Oct. 27 filed for Chapter 11 bankruptcy and sought $45 million in post-petition financing to boost its restructuring efforts (In Re: Green Field Energy Services Inc., No. 13-12783, Chapter 11, D. Del. Bkcy.).

9th Circuit Vacates Asbestos Bankruptcy Reorganization; Says Trust Isn't In Control

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Oct. 28 vacated the bankruptcy reorganization plan for a former asbestos insulator, finding that the plan failed to satisfy the requirements of Section 524(g) of the Bankruptcy Code dealing with control by asbestos trusts (In Re: Plant Insulation Co., Fireman's Fund Insurance Company, et al. v. Plant Insulation Company, Nos. 12-17466 and 12-17467, 9th Cir.).