LexisNexis® Legal Newsroom
Kmart Settles Cashier Seating Class Suit For $280,000

SAN FRANCISCO - A California federal judge on Aug. 23 granted preliminary approval of a $280,000 settlement to be paid by Kmart Corp. to end a class complaint by cashiers alleging that they were denied seats at the checkout stands (Colette Delbridge, et al. v. Kmart Corporation, No. 11-2575, N.D. Calif.; 2013 U.S. Dist. LEXIS 120377).

Detroit Retirement Groups: Nondisclosure Statement For Data Access Must Be Waived

DETROIT - A group of retirement systems covering employees of the bankrupt City of Detroit on Aug. 27 filed a brief seeking the waiver of a nondisclosure statement they signed pertaining to access to confidential information kept in the city's data room (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

9th Circuit Seeks Briefing From Plant, Insurers On Contribution Rights

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Aug. 23 directed Chapter 11 debtor Plant Insulation Co. and insurance companies appealing Plant's confirmed plan of reorganization to provide additional briefing on the insurers' argument that the plan and its injunctions affect their contribution rights (In Re: Plant Insulation Company $(Fireman's Fund Insurance Company, et al., v. Plant Insulation Company, et al., Nos. 12-17466 and 12-17467, 9th Cir.$)).

3rd Circuit: $47M Award Valid, But Other Claims Belong In Bankruptcy Court

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Aug. 27 affirmed a bankruptcy court's decision that the lifting of the automatic stay was limited in its scope to allow a $47 million award for the creditor but that additional claims against the debtor had to be litigated in bankruptcy court (In Re: ABC Learning Centres Ltd n/k/a ZYX Learning Centres Ltd., No. 12-2808, Chapter 15, 3rd Cir.; 2013 U.S. App. LEXIS 17844).

Ill. Federal Judge Dismisses Antitrust Claims Against Health Insurer, Hospital

EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 26 dismissed antitrust claims brought by an outpatient surgery center against a health insurance company and a corporation owning multiple hospitals in Illinois, holding that the plaintiff failed to properly show a relevant market (Marion Healthcare v. Southern Illinois Healthcare, et al., No. 12-871, S.D. Ill.; 2013 U.S. Dist. LEXIS 120722).

Federal Judge Confirms $400 Million Award, Finds Mexican Court Erred

NEW YORK - A New York federal judge on Aug. 27 granted a Mexican corporation's request to confirm an approximately $400 million arbitration award that was issued in its favor in a dispute over contracts for the construction of offshore platforms, finding that a Mexican court that nullified the award improperly applied a law that was not in existence at the time the parties entered the underlying agreements (Corporacion Mexicana De Mantenimiento Intergral, S. De R.L. De C.V. v. Pemex-Exploracion Y Produccion, No. 1:10-cv-00206, S.D. N.Y.).

New York Appeals Court Affirms Denial Of Injunction Prohibiting Mold Renovation

NEW YORK - A New York appeals court on Aug. 27 affirmed a trial court's decision to deny a cooperative shareholder's request for a preliminary injunction prohibiting the building's board from completing mold-related and water damage renovations, finding that she failed to show that the renovations would cause her irreparable harm (Maro A. Goldstone, et al. v. Gracie Terrace Apartment Corporation, No. 604235/07 9341, N.Y. Sup., App. Div., 1st Dept.; 2013 N.Y. App. Div. LEXIS 5637).

U.S. Trustee: Counsel For Bankrupt 'Girls Gone Wild' Must Turn Over $20,000

LOS ANGELES - The U.S. trustee in the Chapter 11 bankruptcy of the company that makes adult videos carrying the name "Girls Gone Wild" on Aug. 27 moved in bankruptcy court for the company's bankruptcy attorney Robert M. Yaspan to return $20,000 to the bankruptcy estate on grounds that he failed to provide "competent legal services" and that the amount of money was not "reasonable" in the first place (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

Thelen Trustee Seeks $853,292 From Former Partners As Fraudulent Conveyances

NEW YORK - The Chapter 7 trustee in the bankruptcy of former law firm Thelen LLP on Aug. 23 filed six adversary complaints against former partners of the firm, seeking to recover a total of $853,292 on grounds that the money belongs to the estate because it constituted fraudulent conveyances (In Re: Thelen LLP, No. 09-15631, Chapter 7, S.D. N.Y. Bkcy.).

Kodak Seeks OK Of Deal In Which It Would Retain 15 Of 18 Disputed Patents

NEW YORK - Bankrupt Eastman Kodak Co. on Aug. 26 moved in bankruptcy court for approval of a settlement agreement with Global OLED Technology (GOT) LLC under which Kodak would retain 15 of 18 disputed patents related to Organic Light Emitting Diodes (OLEDs) (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

Shareholders Ask Court To Grant Final Approval Of Derivative Suit Settlement

SAN FRANCISCO - A group of shareholders asked a California federal court on Aug. 22 to give final approval to a settlement with a company's directors and officers that implements corporate governance measures that address certain alleged wrongdoing (Scott Ozaki, derivatively on behalf of Oracle Corporation, et al. v. Lawrence J. Ellison, et al., No. 11-cv-04493, N.D. Calif.).

Detroit, Plaintiff Stipulate To Stay Relief Related To Underlying State Lawsuit

DETROIT - Attorneys for the bankrupt City of Detroit and a plaintiff who has sued the city under the Michigan Open Meetings Act (OMA) in state court reached a stipulated agreement on Aug. 26 that the automatic stay in the bankruptcy does not apply to the OMA lawsuit (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

Federal Judge Won't Dismiss Patent Action On Jurisdiction Grounds

WILMINGTON, Del. - A dispute over a patented process for blocking television programming will proceed in Delaware federal court, thanks to a judge's Aug. 23 ruling (Rovi Corporation, et al. v. Haier Group, et al., No. 11-1140, D. Del.).

Delaware Court Hears Arguments Over Appointment Of Receiver For Dissolved Company

WILMINGTON, Del. - The Delaware Supreme Court on Aug. 21 heard oral arguments on whether a judge erred by not appointing a receiver to handle the undistributed insurance proceeds of a dissolved corporation based on asbestos plaintiffs' inability to prevail in actions against it (Anderson v. Krafft-Murphy Co., No. 85,2013, Del. Sup.).

Detroit Seeks Discovery From Retired Police Officers Group Regarding Benefits

DETROIT - The bankrupt City of Detroit on Aug. 23 filed interrogatories seeking to obtain discovery from the Retired Detroit Police Members Association (RDPMA) regarding its legal authority and the knowledge it has pertaining to proposals dealing with retirees' health benefits (In Re: City of Detroit, No. 13-53046, Chapter 9, E.D. Mich. Bkcy).

U.S. Attorney Seeks Injunction Blocking American Airlines Merger 'In Its Entirety'

NEW YORK - The U.S. attorney for the Southern District of New York on Aug. 23 filed a statement in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., seeking a permanent injunction blocking "in its entirety" the proposed merger of American Airlines and US Airways Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Panel: Court Did Not Err In Relying On Testimony Of Insurer's Expert Witness

NEW ORLEANS - A Louisiana appeals panel on Aug. 21 found that a lower court did not err in relying on an expert witness' opinion that an insured's structural damage was caused by soil subsidence and not wind, affirming the lower court's ruling in favor of the homeowners insurer in a Hurricane Katrina coverage dispute (James And Rebecca Wallace, et al. v. Louisiana Citizens Property Insurance Corporation, et al., No. 2013-CA-0075, La. App., 4th Cir.; 2013 La. App. LEXIS 1697).

Detroit: Granting Stay Relief Would Deplete Resources, 'Undermine' City

DETROIT - The bankrupt City of Detroit on Aug. 22 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan contending that a creditor should not be granted relief from the automatic stay in order to pursue litigation pertaining to a separate, underlying action commenced before the city filed for bankruptcy (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

Secured Lender Trustee In Dewey & LeBoeuf Case Seeks Recovery Of More Than $3.5M

NEW YORK - The secured lender trustee in the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Aug. 22 filed six adversary complaints against various former clients of the firm, seeking to recover more than $3.5 million for the bankruptcy estate. The complaint seeking the largest individual recovery is against OfficePower Inc. for more than $2.3 million (FTI Consulting Inc. v. OfficePower Inc. $(In Re: Dewey & LeBoeuf$), Adv. No. 13-01420, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

Kentucky Federal Judge Stays Dispute Over Refrigerator Shelving Patent

LOUISVILLE, Ky. - Although denying dismissal, a Kentucky federal judge on Aug. 21 agreed to stay a patent dispute pending the outcome of a defendant's application for inter partes re-examination by the U.S. Patent and Trademark Office (PTO) (SSW Holding Company Inc. v. Schott Gemtron Corporation, No. 12-661, W.D. Ky.).

Airline Customers: AMR Merger Should Not Be Confirmed While Lawsuits Are Pending

NEW YORK - A group of individuals who have already sued bankrupt AMR Corp. opposing its proposed merger with US Airways Inc. on antitrust grounds on Aug. 22 filed a brief arguing that the deal should not be confirmed while there is an additional antitrust lawsuit pending by the U.S. Department of Justice (DOJ) (In Re: AMR Corporation, No. 11-015463, Chapter 11, S.D. N.Y. Bkcy.).

U.S. Trustee: AgFeed Fails To Provide Financial Data Needed To Conduct Asset Sale

WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of agricultural business AgFeed USA LLC on Aug. 21 filed a brief objecting to the company's motion seeking approval to sell substantially all of its assets on grounds that the company has failed to provide reliable financial data needed to conduct a sale (In Re: AgFeed USA LLC, No. 13-11761, Chapter 11, D. Del. Bkcy.).

Bankrupt Insurer May Depose Unsecured Creditors Committee On Valuation Issue

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Excel Maritime Carriers Ltd. on Aug. 20 approved a motion filed by the debtor seeking to depose a group of companies that are members of the Official Committee of Unsecured Creditors (In Re: Excel Maritime Carriers Ltd., No. 13-23060, Chapter 11, S.D. N.Y. Bkcy.).

7th Circuit Reverses In Part; Constitutional Objection Is Not 'Waivable'

CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Aug. 21 partially reversed and remanded a case involving a Chapter 7 debtor on grounds that a constitutional objection on the basis of the U.S. Supreme Court ruling in Stern v. Marshall (131 S. Ct. 2594 $(2011$)) is not waivable because it involves issues of separation of powers (Wellness International Network Ltd. v. Richard Sharif, No. 12-1349, Chapter 7, 7th Cir.; 2013 U.S. App. LEXIS 17553).

3rd Circuit Vacates Bayer WeightSmart Vitamin Class For Lack Of 'Ascertainability'

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Aug. 21 vacated certification of a Florida statewide class of consumers who bought Bayer Corp.'s WeightSmart combination multivitamin/dietary supplement, saying the plaintiff has shown no reliable way to ascertain class membership and valid claims (Gabriel Joseph Carrera, et al. v. Bayer Corporation, et al., No. 12-2621, 3rd Cir.; 2013 U.S. App. LEXIS 17479).