LexisNexis® Legal Newsroom
Mealey's Insurance - Judge: Insurer Has No Duty To Defend, Indemnify Costs From Faulty Work

CHICAGO - A contractor's insurer has no duty to defend or indemnify a subrogated homeowners insurer for damages caused by the contractor's alleged defective workmanship, an Illinois federal judge ruled March 31 (AMCO Insurance Co. v. Northern Heritage Builders LLC and American Family Insurance Co., No. 12-09071, N.D. Ill.; 2015 U.S. Dist. LEXIS 41341).

Mealey's Toxic Tort/Environmental - Panel: New York Landlord Did Not Establish Lack Of Notice In Lead-Poisoning Case

BROOKLYN, N.Y. - A New York court on April 1 reversed a lower court's decision and held that a landlord failed to establish that she did not have constructive notice that a hazardous lead-based paint condition existed in the apartment she rented to a family whose children tested positive for elevated blood-lead levels (Micah Greene, et al. v. Lula A. Mullen, No. 2013-00930, N.Y. Sup., App Div., 2nd Dept.; 2015 N.Y. App. Div. LEXIS 2739).

Judge: Fracking Leaseholders Sufficiently Allege Scheme To Deduct Royalty Payments

HARRISBURG, Pa. - A federal judge in Pennsylvania on March 31 ruled that a group of plaintiffs alleging fraud against two hydraulic fracturing companies related to deductions they took from out of royalty payments had sufficiently alleged that the companies conspired to abuse their authority to deduct unlawful amounts from royalty payments in order to enrich themselves (The Suessenbach Family Limited Partnership, et al. v. Access Midstream Partners LP, et al., No. 14-1197, M.D. Pa.; 2015 U.S. Dist. LEXIS 40900).

Mealey's Toxic Tort/Environmental - Judge Stays Family's Case Pending Arbitration Of Moldy Bed Allegations

JACKSONVILLE, Fla. - After finding that lease agreements applied to the rental of bunk beds that allegedly contained bed bugs and black mold, a Florida federal judge on March 23 granted a rental corporation's motion to stay a case pending arbitration (Andre Teel, et al. v. Aaron's Inc., No. 3:14-cv-640-J-32, M.D. Fla.).

Mealey's Labor & Employment - Judge Refuses To Grant Judgment For City On Employee's FMLA Claim

SACRAMENTO, Calif. - A California federal judge on March 20 refused to dismiss a former employee's claims for violation of the Family Medical Leave Act (FMLA), finding that she provided sufficient evidence to show that her husband suffered a serious health issue allegedly caused by mold and that she was entitled to FMLA leave (Sarah R. Novo v. City of Sacramento, et al., No. 2:13-cv-00521, E.D. Calif.; 2015 U.S. Dist. LEXIS 35309).

Mealey's Toxic Tort/Environmental - Judge Refuses To Grant Judgment For City On Employee's FMLA Claim

SACRAMENTO, Calif. - A California federal judge on March 20 refused to dismiss a former employee's claims for violation of the Family Medical Leave Act (FMLA), finding that she provided sufficient evidence to show that her husband suffered a serious health issue allegedly caused by mold and that she was entitled to FMLA leave (Sarah R. Novo v. City of Sacramento, et al., No. 2:13-cv-00521, E.D. Calif.; 2015 U.S. Dist. LEXIS 35309).

Mealey's Litigation Procedure - Florida Panel: State's Insurance Commissioner Cannot Be Compelled To Testify

TALLAHASSEE, Fla. - A Florida appellate panel on March 12 issued a writ of certiorari and quashed a trial court's order compelling the deposition of the state's insurance commissioner in a suit against the accounting firm of three insolvent insurers (Florida Office of Insurance Regulation v. Florida Department of Financial Services, as Receiver for Southern Family Insurance Company, et al., No. 1D14-4417, Fla. App., 1st Dist.).

Mealey's Bankruptcy - Florida Panel: State's Insurance Commissioner Cannot Be Compelled To Testify

TALLAHASSEE, Fla. - A Florida appellate panel on March 12 issued a writ of certiorari and quashed a trial court's order compelling the deposition of the state's insurance commissioner in a suit against the accounting firm of three insolvent insurers (Florida Office of Insurance Regulation v. Florida Department of Financial Services, as Receiver for Southern Family Insurance Company, et al., No. 1D14-4417, Fla. App., 1st Dist.).

Mealey's Insurance - Florida Panel: State's Insurance Commissioner Cannot Be Compelled To Testify

TALLAHASSEE, Fla. - A Florida appellate panel on March 12 issued a writ of certiorari and quashed a trial court's order compelling the deposition of the state's insurance commissioner in a suit against the accounting firm of three insolvent insurers (Florida Office of Insurance Regulation v. Florida Department of Financial Services, as Receiver for Southern Family Insurance Company, et al., No. 1D14-4417, Fla. App., 1st Dist.).

Mealey's Insurance - Judge: Insurer's Notice Of Removal Was Timely In Coverage Lawsuit

DENVER - An insurer's notice of removal in a lawsuit involving coverage for repairs to water damage at a condominium association was timely, a Colorado federal judge ruled March 9 (Chateau Village North Condominium Association v. American Family Mutual Insurance Co., No. 14-01583, D. Colo.; 2015 U.S. Dist. LEXIS 28411).

Mealey's Insurance - Judge: Fact Issues Exist On Reimbursement To Insurer Of Defense Costs

DENVER - Factual issues exist over whether an insurer is entitled to reimbursement from another insurer of defense costs incurred in an underlying construction defects case, a Colorado federal judge ruled March 6, denying summary judgment to the insurers (American Family Mutual Insurance Co. v. St. Paul Fire & Marine Insurance Co. and The Travelers Indemnity Co., No. 13-01162, D. Colo.; 2015 U.S. Dist. LEXIS 27708).

Mealey's Insurance - Federal Judge Remands Family's Dispute Over Flood Insurance Proceeds

PHILADELPHIA - Finding that the remaining state law claims of conversion and unjust enrichment in a flood coverage dispute do not confer federal question jurisdiction, a Pennsylvania federal judge on Feb. 26 remanded the case to state court (Vincent J. Imbrenda Sr., et al. v. Santander Bank N.A., et al., No. 14-6103, E.D. Pa.; 2015 U.S. Dist. LEXIS 23150).

Mealey's PI/Product Liability - Fla. Appeals Court Reinstates Contractor's Claims Against Drywall Subcontractor

DAYTONA BEACH, Fla. - A Florida appeals panel on Feb. 13 reinstated a general contractor's third-party lawsuit against a subcontractor accused of improperly installing drywall in a single-family home, after finding that the general contractor's allegations, "although inartfully drafted," could survive a motion to dismiss (Ray Coudriet Builders Inc. v. R.K. Edwards Inc., et al., Nos. 5D13-2176, 5D13-4189, Fla. App., 5th Dist.; 2015 Fla. App. LEXIS 1916).

Mealey's Labor & Employment - Federal Judge Allows Employee's Mold-Related FMLA Claims To Proceed

TAMPA, Fla. - A Florida federal judge on Jan. 29 denied an employer's request for summary judgment on claims asserted by a former employee for violation of the Family Medical Leave Act of 1993 (FMLA) and other claims, allowing her mold-related exposure claims to proceed (Tina Canalejo v. ADG LLC, d/b/a Great Expressions, No. 8:14-cv-17, M.D. Fla.; 2015 U.S. Dist. LEXIS 10271).

Mealey's Toxic Tort/Environmental - Federal Judge Allows Employee's Mold-Related FMLA Claims To Proceed

TAMPA, Fla. - A Florida federal judge on Jan. 29 denied an employer's request for summary judgment on claims asserted by a former employee for violation of the Family Medical Leave Act of 1993 (FMLA) and other claims, allowing her mold-related exposure claims to proceed (Tina Canalejo v. ADG LLC, d/b/a Great Expressions, No. 8:14-cv-17, M.D. Fla.; 2015 U.S. Dist. LEXIS 10271).

Mealey's Insurance - Report: Even After ACA, Cost Remains Barrier To Insurance

WASHINGTON, D.C. - Cost remains a barrier to obtaining medical insurance, with nearly one-third of uninsured but Patient Protection and Affordable Care Act (ACA)-eligible adults citing it as the reason they remain uninsured, according to a Henry J. Kaiser Family Foundation report issued Jan. 29.

Mealey's Health Law - Report: Even After ACA, Cost Remains Barrier To Insurance

WASHINGTON, D.C. - Cost remains a barrier to obtaining medical insurance, with nearly one-third of uninsured but Patient Protection and Affordable Care Act (ACA)-eligible adults citing it as the reason they remain uninsured, according to a Henry J. Kaiser Family Foundation report issued Jan. 29.

Mealey's Labor & Employment - 1st Circuit Upholds Firing Following FLSA Leave

BOSTON - The First Circuit U.S. Court of Appeals on Jan. 26 upheld a trial court's ruling for an employer that terminated an employee following his leave under the Family and Medical Leave Act (FMLA), finding that there was no proof of retaliatory animus (Murad Y. Ameen v. Amphenol Printed Circuits, Inc., No. 14-1086, 1st Cir.; 2015 U.S. App. LEXIS 1150).

Mealey's Toxic Tort/Environmental - Wyoming Supreme Court: Family Trustees Were Disloyal In Water Rights Transfer

CHEYENNE, Wyo. - The Wyoming Supreme Court on Jan. 23 affirmed that two siblings breached their duty of loyalty to a family ranch trust by self-dealing when they transferred water rights but said that a trial court erred in removing the two as trustees (William C. Forbes, et al. v. Waldo E. Forbes, No. S14-0122, Waldo E. Forbes v. William C. Forbes, et al., No. S-14-0123, Wyo. Sup.; 2015 Wyo. LEXIS 14).

Mealey's Insurance - Court Lacks Jurisdiction Over Bad Faith Lawsuit, Magistrate Judge Rules

PORTLAND, Ore. - A federal magistrate judge in Oregon on Jan. 8 denied a motion for reconsideration of an earlier ruling granting summary judgment with regard to an insurance bad faith claim, ruling that the federal district court lacks jurisdiction over the action since it was appealed to the Ninth Circuit U.S. Court of Appeals (Sonia Braun-Salinas, et al. v. American Family Insurance Group, d/b/a American Family Mutual Insurance Co., No. 13-0264, D. Ore.; 2015 U.S. Dist. LEXIS 1914).

Mealey's Bankruptcy - Reinsurer In Liquidation Says Trial Judge Should Have Accepted Complaint As True

NEW YORK - A reinsurer in liquidation told the Second Circuit U.S. Court of Appeals on Dec. 19 that a trial court judge erred when considering a motion to dismiss because the judge allegedly made inferences in favor of the defendant/reinsureds instead of the plaintiff/reinsurer (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey Varga and Jess Shakespeare, in their capacities as Liquidators thereof v. American Family Mutual Insurance Company, et al., No. 14-4062, 2nd Cir.).

Mealey's Insurance - Reinsurer In Liquidation Says Trial Judge Should Have Accepted Complaint As True

NEW YORK - A reinsurer in liquidation told the Second Circuit U.S. Court of Appeals on Dec. 19 that a trial court judge erred when considering a motion to dismiss because the judge allegedly made inferences in favor of the defendant/reinsureds instead of the plaintiff/reinsurer (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey Varga and Jess Shakespeare, in their capacities as Liquidators thereof v. American Family Mutual Insurance Company, et al., No. 14-4062, 2nd Cir.).

Mealey's Insurance - Insured's Negligent Work Is Not 'Property Damage,' Federal Judge Concludes

DENVER - A commercial general liability insurer has no duty to defend a construction defects lawsuit arising from an insured's alleged negligent work in a home, a Colorado federal judge ruled Dec. 17, finding that there was no "property damage" and, alternatively, that the "your work" exclusion applied (Cool Sunshine Heating & Air Conditioning Inc. v. American Family Mutual Insurance Co., No. 14-1637, D. Colo.; 2014 U.S. Dist. LEXIS 174818).

Mealey's Insurance - Minnesota High Court Upholds Coverage For Insured's Hail Damage

ST. PAUL, Minn. - An appraisal panel did not err in determining for purposes of insurance coverage that the replacement of an insured's damaged siding panels with siding of comparable material and quality required replacement of all of the siding on the insured's buildings to achieve a reasonable color match, the Minnesota Supreme Court affirmed Dec. 17 (Cedar Bluff Townhome Condominium Association Inc. v. American Family Mutual Insurance Co., No. A13-0124, Minn. Sup.; 2014 Minn. LEXIS 661).

Mealey's Litigation Procedure - Judge Partially Grants Protective Order In Bad Faith Lawsuit

SEATTLE - A federal judge in Washington on Dec. 15 granted in part and denied in part an insurer's motion for a protective order in a breach of contract and insurance bad faith lawsuit, ruling that the insurer is not required to "produce loss reserve documents that are entitled to work product or attorney-client privilege" (Theresa L. Schreib v. American Family Mutual Insurance Co., No. 14-0165, W.D. Wash.; 2014 U.S. Dist. LEXIS 172973).