LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - ICSID Issues Award, Finds Dispute Over Mining Project Is Time-Barred

WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on June 1 released its award in an arbitration commenced by a Florida company against the Dominican Republic under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), finding that the case was time-barred and that the claimant failed to satisfy the conditions of DR-CAFTA (Corona Materials LLC v. Dominican Republic, No. ARB[AF]/14/3, ICSID).

Mealey's Labor & Employment - Exclusion Bars Employers Liability Coverage For Workplace Injury, Federal Judge Rules

MIAMI - A Florida federal judge held May 28 that because an exclusion bars coverage for an injury sustained by an insured's employee, an insurer has no duty to defend or indemnify the insured against an underlying lawsuit arising from the workplace accident (Everest Reinsurance Co. v. American Guard Services, Inc., et al., No. 15-22404, S.D. Fla.; 2016 U.S. Dist. LEXIS 70212).

Mealey's Insurance - Staffing Company Owner Sentenced To 5 Years In Prison Over Fraud Scheme

MIAMI - A federal judge in Florida on May 31 sentenced the owner of a consulting and medical staffing company to five years in prison and ordered him to pay $2.3 million in restitution for his role in a Medicare fraud scheme (United States of America v. Milka Alvarez, et al., No. 15-cr-20436, S.D. Fla.).

Mealey's Insurance - Exclusion Bars Employers Liability Coverage For Workplace Injury, Federal Judge Rules

MIAMI - A Florida federal judge held May 28 that because an exclusion bars coverage for an injury sustained by an insured's employee, an insurer has no duty to defend or indemnify the insured against an underlying lawsuit arising from the workplace accident (Everest Reinsurance Co. v. American Guard Services, Inc., et al., No. 15-22404, S.D. Fla.; 2016 U.S. Dist. LEXIS 70212).

Mealey's Insurance - Abatement Of Bad Faith Claim In Workers' Compensation Suit Proper, Judge Rules

TAMPA, Fla. - Dismissal of a statutory bad faith claim in a workers' compensation coverage dispute is not proper because abatement of the claim pending resolution of a breach of contract claim is appropriate, a federal judge in Florida ruled May 26 (DSK Group Inc. v. Zurich American Insurance Co., No. 15-1987, M.D. Fla.; 2016 U.S. Dist. LEXIS 69225).

Mealey's Litigation Procedure - Panel: Daubert Does Not Change Rule On Lay Person's Identification Of Marijuana

LAKELAND, Fla. - Because the standard in Daubert v. Merrell Dow Pharm., Inc. (509 U.S. 579 [1993]) regarding the admissibility of expert testimony does not change the long-established rule that lay persons can identify marijuana based on their personal experience and knowledge, a Florida appeals panel on May 25 affirmed a juvenile's conviction for possession of marijuana (R.C. v. State of Florida, No. 2D15-1738, Fla. App., 2nd Dist.; 2016 Fla. App. LEXIS 8107).

Mealey's Toxic Tort/Environmental - Florida Jury Awards $6 Million To Widow Of Former Smoker

BARTOW, Fla. - A Florida jury on May 16 awarded the widow of a smoker $6 million after finding that he relied on statements made by R.J. Reynolds Tobacco Co. about the harmfulness of smoking the cigarettes it manufactured (Marlene Nally v. R.J. Reynolds Tobacco Co., No. 2007CA-007627, Fla. Cir., 10th Jud. Cir., Polk Co.).

Mealey's Insurance - Judge Bars Insured's Expert From Testifying On Regulatory Experience In Coverage Suit

ORLANDO, Fla. - An insured's expert may not testify on his regulatory or legislative experience regarding procurement of insurance, a Florida federal judge ruled May 11 (American K-9 Detection Services, Inc. and American K-9 Detection Services LLC v. Rutherford International, Inc. and Sara Payne, No. 14-1988, M.D. Fla.; 2016 U.S. Dist. LEXIS 62279).

Mealey's Litigation Procedure - Judge Bars Insured's Expert From Testifying On Regulatory Experience In Coverage Suit

ORLANDO, Fla. - An insured's expert may not testify on his regulatory or legislative experience regarding procurement of insurance, a Florida federal judge ruled May 11 (American K-9 Detection Services, Inc. and American K-9 Detection Services LLC v. Rutherford International, Inc. and Sara Payne, No. 14-1988, M.D. Fla.; 2016 U.S. Dist. LEXIS 62279).

Mealey's Toxic Tort/Environmental - Florida Jury Adds Punitive Damages To $12 Million Verdict In Engle Progeny Suit

SARASOTA, Fla. - A Florida jury on May 12 awarded a widower $30,000 in punitive damages a day after finding that the deceased relied to her detriment on statements made by R.J. Reynolds Tobacco Co. which ultimately led to her death, bringing the total award to $12,030,000 (George Dion v. R.J. Reynolds Tobacco Co., No. 13CA5673, Fla. Cir., 12th Jud. Cir., Sarasota Co.).

Mealey's Insurance - Florida Panel Reverses Ruling After Insurer Concedes Error In Sinkhole Dispute

LAKELAND, Fla. - A Florida appeals panel on May 11 reversed and remanded a lower court's ruling in favor of a homeowners insurer in a sinkhole coverage dispute, noting that the lower court did not have the benefit of three key rulings when it granted the insurer's motion for summary judgment (James Case and Rhonda Case v. Tower Hill Prime Insurance Co., No. 2D15-2225, Fla. App., 2nd Dist.; 2016 Fla. App. LEXIS 7113).

Mealey's Toxic Tort/Environmental - Florida Jury Awards Widow $12 Million In Engle Progeny Suit

SARASOTA, Fla. - A Florida jury on May 11 found that a woman relied to her detriment on statements made by R.J. Reynolds Tobacco Co. about the healthfulness of cigarettes, which ultimately caused her death, and awarded her husband $12 million in compensatory damages (George Dion v. R.J. Reynolds Tobacco Co., No. 13CA5673, Fla. Cir., 12th Jud. Cir., Sarasota Co.).

Mealey's Toxic Tort/Environmental - Vaping Device Distributor Sues FDA Over New Vaping, E-Cigarette Rule

WASHINGTON, D.C. - A Florida vaping and e-cigarette distributor on May 10 filed suit against the Food and Drug Administration in a District of Columbia federal court, claiming that a new rule that expands the FDA's power under the Tobacco Control Act will cost it millions of dollars in revenue and is overly burdensome because it would restrict the sale of the company's products (Nicopure Labs LLC v. Food and Drug Administration, et al., No. 1:16-cv-00878. D. D.C.).

Mealey's Insurance - Judge Denies Dismissal Motions Of Suit Brought By Insolvent Insurer's Trustee

TAMPA, Fla. - A federal bankruptcy judge in Florida on May 6 denied a group of investors' motions to dismiss a suit brought by the bankruptcy trustee of an insolvent insurer alleging a fraudulent $33.4 million stock transfer (Soneet R. Kapila, as Chapter 11 Trustee of Universal Health Care Group, Inc. v. Warburg Pincus, LLC, et al., No. 8:15-ap-132-KRM, M.D. Fla. Bkcy.; 2016 Bankr. LEXIS 1957).

Mealey's IP/Tech - Former Law Firm Employees Argue Against Sanctions For Not Preserving Smartphones

FORT LAUDERDALE, Fla. - In a May 9 brief in Florida federal court, two former legal assistants, who are defendants in a computer fraud lawsuit, argue that sanctions are not merited for their failure to keep smartphones they owned at the time they purportedly hacked into their former employer's email system, contending that they did not act willfully or in bad faith (Goldstein Law Group P.A. v. Leviette Machado, et al., No. 0:15-cv-61145, S.D. Fla.).

Mealey's Litigation Procedure - Former Law Firm Employees Argue Against Sanctions For Not Preserving Smartphones

FORT LAUDERDALE, Fla. - In a May 9 brief in Florida federal court, two former legal assistants, who are defendants in a computer fraud lawsuit, argue that sanctions are not merited for their failure to keep smartphones they owned at the time they purportedly hacked into their former employer's email system, contending that they did not act willfully or in bad faith (Goldstein Law Group P.A. v. Leviette Machado, et al., No. 0:15-cv-61145, S.D. Fla.).

Mealey's Toxic Tort/Environmental - Tobacco Plaintiff Asks Court To Deny Motion To Stay Proceedings

JACKSONVILLE, Fla. - A woman who won an Engle progeny verdict against Philip Morris USA Inc. asked a federal judge in Florida on May 2 to deny the tobacco company's motion to stay her motion to reinstate her punitive damages award, saying it would be "needlessly cruel" to stay her 20-year-old case (Judith Berger v. R.J. Reynolds Tobacco Co., et al., No. 3:09-cv-14157, M.D. Fla.).

Mealey's PI/Product Liability - Permanent Injunction Limits Drug Compounder Franck From Resuming Business

OCALA, Fla. - The former owner of several compounding pharmacies, including the one at the center of the Brilliant Blue G contamination outbreak, on April 29 agreed to a permanent injunction in Florida federal court requiring it to notify the Food and Drug Administration if he ever starts compounding drugs again (United States of America v. Paul W. Franck, No. 16-85, M.D. Fla., Ocala Div.).

Mealey's Insurance - Panel: Court Should Have Required Insureds To Enter Subsurface Repair Contract

LAKELAND, Fla. - A Florida appeals panel on April 29 reversed a lower court's final judgment in favor of insureds in a sinkhole coverage dispute to the extent that it awarded money damages for subsurface repairs without requiring the insureds to enter into a contract for those repairs, further reversing the court's prejudgment interest award (Citizens Property Insurance Corp. v. Migdalia Cabrera, et al., No. 2D14-4337, Fla. App., 2nd Dist.; 2016 Fla. App. LEXIS 6529).

Mealey's Toxic Tort/Environmental - Florida Jury Awards Deceased Smoker's Family $33.5 Million

PALM BEACH, Fla. - A jury in Florida on April 27 awarded the widow of a smoker who died from lung cancer $12.5 million in punitive damages, bringing the total award to the family to $33.5 million (Purdo v. R.J. Reynolds Tobacco Co., et al., No. 2007CA024173, Fla. Cir., 15th Jud. Cir., Palm Beach Co.).

Mealey's Insurance - Judge Vacates Default Judgment Against Insured In Defects Coverage Suit

TAMPA, Fla. - A Florida federal judge on April 26 vacated a default judgment against an insured subcontractor in an insurer's declaratory judgment action, citing the involvement of multiple defendant parties also named in an underlying construction defect case (Southern Owners Insurance Co. v. Gallo Building Services, Inc., et al., No. 15-01440, M.D. Fla.; 2016 U.S. Dist. LEXIS 55572).

Mealey's Litigation Procedure - Panel Reverses Jury Verdict In Light Of Error In Allowing Testimony On Medical Costs

DAYTONA BEACH, Fla. - A trial judge erred in allowing a physician's assistant to testify as an expert on the need and cost for a future surgery, a Florida appeals panel held April 22, reversing a $166,000 jury verdict entered against an insurer and remanding for a new trial on damages (State Farm Mutual Automobile Insurance Co. v. William Long, Nos. 5D14-3704 & 5D15-1749, Fla. App., 5th Dist.; 2016 Fla. App. LEXIS 6148).

Mealey's Litigation Procedure - Federal Judge Partially Grants Dismissal In Suit Alleging Insurance Kickbacks

ORLANDO, Fla. - A Florida federal judge on April 18 partially granted and partially denied motions to dismiss a proposed class complaint accusing a mortgage servicer and an insurer of engaging in a kickback scheme where borrowers were overcharged for "force-placed" insurance (John C. Sekula, et al. v. Residential Credit Solutions, Inc., et al., No. 15-2104, M.D. Fla.; 2016 U.S. Dist. LEXIS 51636).

Mealey's Banking & Finance - Federal Judge Partially Grants Dismissal In Suit Alleging Insurance Kickbacks

ORLANDO, Fla. - A Florida federal judge on April 18 partially granted and partially denied motions to dismiss a proposed class complaint accusing a mortgage servicer and an insurer of engaging in a kickback scheme where borrowers were overcharged for "force-placed" insurance (John C. Sekula, et al. v. Residential Credit Solutions, Inc., et al., No. 15-2104, M.D. Fla.; 2016 U.S. Dist. LEXIS 51636).

Mealey's Insurance - Insureds Failed To Plead Injury In Fact In Bad Faith Suit, Judge Rules

TAMPA, Fla. - A Florida federal judge on April 15 remanded an insurance bad faith lawsuit to state court, ruling that insureds failed to plead an injury in fact in making their claims against an insurer over its handling of claims in a third-party lawsuit (Wright Insurance Agency Inc. v. Nationwide Mutual Fire Insurance Co., No. 15-1857, M.D. Fla.; 2016 U.S. Dist. LEXIS 50975).