LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Application Exclusion Bars Professional Liability Coverage, California Panel Says

LOS ANGELES - A California appeals panel on April 10 affirmed a lower court's ruling that a professional liability insurance policy's application exclusion precludes coverage for claims made against a securities broker-dealer insured involving an alleged real estate investment Ponzi scheme, finding that three undisclosed claims should have been disclosed to the insurer during the application process because they arose out of the same events as the one disclosed claim (Crown Capital Securities L.P. v. Endurance American Specialty Insurance, No. B256241, Calif. App., 2nd Dist., Div. 5.; 2015 Cal. App. LEXIS 305).

Mealey's Insurance - Application Exclusion Bars Professional Liability Coverage, California Panel Says

LOS ANGELES - A California appeals panel on April 10 affirmed a lower court's ruling that a professional liability insurance policy's application exclusion precludes coverage for claims made against a securities broker-dealer insured involving an alleged real estate investment Ponzi scheme, finding that three undisclosed claims should have been disclosed to the insurer during the application process because they arose out of the same events as the one disclosed claim (Crown Capital Securities L.P. v. Endurance American Specialty Insurance, No. B256241, Calif. App., 2nd Dist., Div. 5.; 2015 Cal. App. LEXIS 305).

Mealey's PI/Product Liability - New Interest Rate Applies To $25 Million Judgment, Florida Appeals Court Rules

TALLAHASSEE, Fla. - An amendment to the Florida interest-rate statute is applicable to a $25 million award to the estate of a man who died of smoking-related lung cancer, the Florida First District Court of Appeal ruled April 9 (R.J. Reynolds Tobacco Co. v. Lyantie Townsend, as Personal Representative of the Estate of Frank Townsend, No. 1D14-4147, Fla. App., 1st Dist.; 2015 Fla. App. LEXIS 5131).

Mealey's Banking & Finance - Federal Judge Refuses To Dismiss RESPA And FCRA Claims

MIAMI - A Florida federal judge on April 8 dismissed certain claims filed by a borrower against a mortgage company but allowed her claims for violation of the Fair Credit Reporting Act (FCRA) and the Real Estate Settlement Procedures Act (RESPA) to proceed (Gayle Helman v. Udren Law Office, P.C., No. 14-CV-60808, S.D. Fla.; 2015 U.S. Dist. LEXIS 45922).

Mealey's PI/Product Liability - 11th Circuit Finds Strict Liability, Negligence Claims Preempted By Federal Law

ATLANTA - Strict liability and negligence claims asserted in an Engle progeny suit are preempted by federal law, the 11th Circuit U.S. Court of Appeals ruled April 8 (Earl E. Graham, as Personal Representative of the Estate of Faye Dale Graham v. R.J. Reynolds Tobacco Co., et al., No. 13-14590, 11th Cir.; 2015 U.S. App. LEXIS 5657).

Mealey's Banking & Finance - Panel: Insurer Has No Duty To Defend 'Perpetrators' Of 'Mortgage Loan Fraud'

SAN DIEGO - A California appeals panel on March 27 affirmed a lower court's ruling that there is no coverage for an underlying claim that was either a real estate sales transaction or a "fraudulent scheme clothed as a mortgage transaction" (Angel Castrejon, et al., v. United States Liability Insurance Co., No. D064679, Calif. App., 4th Dist., Div. 1; 2015 Cal. App. Unpub. LEXIS 2162).

Mealey's Insurance - Panel: Insurer Has No Duty To Defend 'Perpetrators' Of 'Mortgage Loan Fraud'

SAN DIEGO - A California appeals panel on March 27 affirmed a lower court's ruling that there is no coverage for an underlying claim that was either a real estate sales transaction or a "fraudulent scheme clothed as a mortgage transaction" (Angel Castrejon, et al. v. United States Liability Insurance Co., No. D064679, Calif. App., 4th Dist., Div. 1; 2015 Cal. App. Unpub. LEXIS 2162).

Mealey's Insurance - $3.3M Default Judgment Unenforceable Against Insurer, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on March 31 affirmed a lower court's finding that because claimants gained their right to sue a real estate errors and omissions liability insurer through an assignment in a fraudulent settlement agreement with the insured, a $3.3 million default judgment is unenforceable against the insurer (Ron Carlson, et al. v. Century Surety Co., Nos. 12-15964 and 12-16153, 9th Cir.; 2015 U.S. App. LEXIS 5180).

Mealey's Banking & Finance - Federal Judge Allows Plaintiffs To Reclassify TILA Claim Against Bank

CLEVELAND - An Ohio federal judge on March 27 granted a bank's motion to dismiss certain claims against it but granted a request by homeowners to file an amended complaint to reclassify their claim for violation of the Truth in Lending Act (TILA) as a claim for violation of the Real Estate Settlement Procedures Act (RESPA) (Douglas Belknap, et al. v. Bank of America Corp., No. 1:14-cv-1540, N.D. Ohio; 2015 U.S. Dist. LEXIS 39296).

Mealey's Banking & Finance - Federal Judge Dismisses TILA And RESPA Claims As Time-Barred

WASHINGTON, D.C. - A District of Columbia federal judge on March 25 granted a motion to dismiss claims asserted against various banks, finding that a property owner's claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) were time-barred (Harold J. Taylor v. Wells Fargo Bank N.A., et al., No. 14-617, D. D.C.; 2015 U.S Dist. LEXIS 37127).

Mealey's Banking & Finance - Judge Finds Borrower Did Not Send Qualified Written Request Under RESPA

RICHMOND, Va. - A Virginia federal judge on March 18 found that a borrower failed to show that a loan-servicing company violated the Real Estate Settlement Procedures Act (RESPA), granting summary judgment dismissing the claim (Rodney Peters v. Bank of America, N.A., et al., No. 3:14-cv-513, E.D. Va.; 2015 U.S. Dist. LEXIS 33690).

Mealey's PI/Product Liability - Illinois Appeals Court Affirms $1.4M Asbestos Verdict Against Railroad

SPRINGFIELD, Ill. - An Illinois appeals court on March 17 affirmed a $1.4 million asbestos verdict against a railroad for exposure arising from a property it leased, rejecting challenges to the verdict form, jury instructions and admission of evidence regarding the lease (In re: Estate of Lilienthal, No. 4-14-0280, Ill. App., 4th Dist.; 2015 Ill. App. Unpub. LEXIS 514).

Mealey's Labor & Employment - Illinois Appeals Court Affirms $1.4M Asbestos Verdict Against Railroad

SPRINGFIELD, Ill. - An Illinois appeals court on March 17 affirmed a $1.4 million asbestos verdict against a railroad for exposure arising from a property it leased, rejecting challenges to the verdict form, jury instructions and admission of evidence regarding the lease (In re: Estate of Lilienthal, No. 4-14-0280, Ill. App., 4th Dist.; 2015 Ill. App. Unpub. LEXIS 514).

Mealey's Banking & Finance - Federal Judge Finds TILA And RESPA Claims Time-Barred

LAS VEGAS - A Nevada federal judge on March 16 granted a motion to dismiss claims asserted by a borrower in relation to the foreclosure of her property, finding that her claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) were time-barred (Mafe Rabino v. Asset Foreclosure Services Inc., et al., No. 2:14-cv-00735, D. Nev.; 2015 U.S. Dist. LEXIS 32594).

Mealey's Toxic Tort/Environmental - Illinois Appeals Court Affirms $1.4M Asbestos Verdict Against Railroad

SPRINGFIELD, Ill. - An Illinois appeals court on March 17 affirmed a $1.4 million asbestos verdict against a railroad for exposure arising from a property it leased, rejecting challenges to the verdict form, jury instructions and admission of evidence regarding the lease (In re: Estate of Lilienthal, No. 4-14-0280, Ill. App., 4th Dist.; 2015 Ill. App. Unpub. LEXIS 514).

Mealey's Toxic Tort/Environmental - Connecticut Jury Returns Asbestos Defense Verdict For Rogers Corp.

BRIDGEPORT, Conn. - A Connecticut jury on March 12 found that an employer negligently released asbestos into the ambient air, exposing one of its employees, but that the exposure was not a substantial factor in his mesothelioma (Marsha Lagerberg, executor of the estate of Erick Lagerberg, et al. v. Armstrong International Inc., et al., No. CV 11-6023127S, Conn. Super., Fairfield at Bridgeport).

Mealey's Banking & Finance - Federal Judge Grants Judgment For Capital One, Dismisses RESPA Claim

SEATTLE - After finding that the Real Estate Settlement Procedures Act (RESPA) did not apply to a borrower's mortgage loan, a Washington federal judge on March 12 granted a bank's motion for summary judgment on the claim (Candice Warren v. Capital One, N.A., No. 14-0656, W.D. Wash.; 2015 U.S. Dist. LEXIS 30731).

Mealey's Banking & Finance - MBA Announces Release Of New Resource Guide On TILA And RESPA

WASHINGTON, D.C. - The Mortgage Bankers Association (MBA) on March 13 announced the release of the Truth in Lending Act and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID) Resource Guide.

Mealey's IP/Tech - Coverage Barred By Intellectual Property Exclusion, California Panel Affirms

SAN FRANCISCO - A California appeals panel on March 9 affirmed a lower court's ruling that a commercial general liability insurance policy's intellectual property exclusion precludes coverage for an underlying lawsuit alleging that the insured used the name and likeness of a designer, author and inventor to market its products without permission from the insured's estate (Alterra Excess and Surplus Insurance Co. v. Estate of Buckminster Fuller, No. A140453, Calif. App., 1st Dist., Div. 2; 2015 Cal. App. LEXIS 216).

Mealey's Antitrust/Unfair Competition - Coverage Barred By Intellectual Property Exclusion, California Panel Affirms

SAN FRANCISCO - A California appeals panel on March 9 affirmed a lower court's ruling that a commercial general liability insurance policy's intellectual property exclusion precludes coverage for an underlying lawsuit alleging that the insured used the name and likeness of a designer, author and inventor to market its products without permission from the insured's estate (Alterra Excess and Surplus Insurance Co. v. Estate of Buckminster Fuller, No. A140453, Calif. App., 1st Dist., Div. 2; 2015 Cal. App. LEXIS 216).

Mealey's Insurance - Coverage Barred By Intellectual Property Exclusion, California Panel Affirms

SAN FRANCISCO - A California appeals panel on March 9 affirmed a lower court's ruling that a commercial general liability insurance policy's intellectual property exclusion precludes coverage for an underlying lawsuit alleging that the insured used the name and likeness of a designer, author and inventor to market its products without permission from the insured's estate (Alterra Excess and Surplus Insurance Co. v. Estate of Buckminster Fuller, No. A140453, Calif. App., 1st Dist., Div. 2; 2015 Cal. App. LEXIS 216).

Mealey's PI/Product Liability - Michigan Court Revives Premises Liability Claim Against Grocery Store

LANSING, Mich. - Questions of fact remain as to whether the presence of a garden hose at the entrance to a grocery store presented an "open and obvious" hazard, making summary judgment inappropriate on a premises liability claim brought by the estate of a woman who was seriously injured and died after tripping over the hose, a split panel of the Michigan Court of Appeals ruled March 5 (Peter T. MacAskill, et al. v. The Kroger Co., et al., No. 319297, Mich. App.; 2015 Mich. App. LEXIS 446).

Mealey's Banking & Finance - Federal Judge Allows RESPA And FDCPA Claims To Proceed

CHICAGO - An Illinois federal judge on March 5 partially granted a motion to dismiss filed by a bank and servicing firm, allowing a home owner's claims for violation of the Fair Debt Collection Practices Act (FDCPA) and the Real Estate Settlement Procedures Act (RESPA) to proceed (Regina L. Banks v. Green Tree Servicing LLC, et al., No. 14-cv-2825, N.D. Ill.; 2015 U.S. Dist. LEXIS 27172).

Mealey's Banking & Finance - 11th Circuit Finds Borrower Had Standing, Affirms Dismissal Of RESPA claims

ATLANTA - The 11th Circuit U.S. Court of Appeals on Feb. 27 reversed a decision that a borrower lacked standing to bring claims against a title company and law firm but affirmed dismissal of her claims for violation of the Real Estate Settlement Procedures Act (RESPA) (Patricia L. Clements v. LSI Title Agency Inc., et al., No. 14-11636, 11th Cir.; 2015 U.S. App. LEXIS 3144).

Mealey's PI/Product Liability - New York Justice: Brake-Grinding Machine Maker Must Face Asbestos Action

NEW YORK - A brake-grinding machine manufacturer must face liability for a man's exposure from asbestos-containing brakes used in conjunction with the grinder, a New York justice held in an opinion posted Feb. 27 (Linda Vellucci, as executrix of the heirs and estates of John Vellucci v. Borg Warner Corp., et al., No. 190201/12, N.Y. Sup., New York Co., 2015 N.Y. Misc. LEXIS 518).