LexisNexis® Legal Newsroom
Mealey's Insurance - Panel: Assignee's Breach Of Contract Suit Against Reinsurer Is Untimely

CHICAGO - A breach of contract lawsuit filed by an assignee of certain reinsurance receivables rights from an insolvent insurer was untimely, the Seventh Circuit U.S. Court of Appeals affirmed Aug. 7, finding that 215 Illinois Insurance Code Statute 5/206, 215 ILCS 5/206, does not provide that a liquidator may wait until the end to net the debits and credits (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir., 2017 U.S. App. LEXIS 14492).

Mealey's Insurance - Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants

CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 2201).

Mealey's Bankruptcy - Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants

CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 2201).

Mealey's PI/Product Liability - Judge Ignores Bristol-Myers, Remands Multiplaintiff Essure Case To State Court

EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 4 refused to consider rulings based on a recent U.S. Supreme Court jurisdiction decision and remanded an Essure birth control device case consisting of 86 plaintiffs to Illinois state court (Nichole Hamby, et al. v. Bayer Corp., et al., No. 17-17, S.D. Ill., 2017 U.S. Dist. LEXIS 123425).

Mealey's PI/Product Liability - Insys Sets Aside $4.5M For Settlement Of Illinois' Opioid Off-Label Lawsuit

PHOENIX - Insys Therapeutics Inc. on Aug. 3 announced that it has taken a $4.5 million charge for a potential settlement of Illinois' consumer fraud lawsuit over the drug company's alleged off-label promotion of the fentanyl-based opioid Subsys.

Mealey's Insurance - Panel: Wrongful Conviction Suit Did Not Trigger Law Enforcement Liability Coverage

ELGIN, Ill. - An Illinois appeals panel on Aug. 1 affirmed a lower court's ruling that there is no coverage under primary and excess law enforcement liability insurance policies for an underlying wrongful conviction lawsuit that resulted in a $20 million settlement against the city of Waukegan, Ill., and its police officers (St. Paul Fire and Marine Insurance Co., et al. v. The City of Waukegan, et al., No. 2-16-0381, Ill. App., 2nd Dist., 2017 Ill. App. LEXIS 499).

Mealey's Insurance - Plan Must Consider How Carpal Tunnel Affects Ability To Perform Own Occupation

CHICAGO - An Illinois federal judge on July 31 vacated and remanded a disability plan's denial of a long-term disability benefits claim after determining that the plan failed to consider how the claimant's carpal tunnel syndrome would affect her ability to perform the duties of her own occupation (Jodi Suson v. The PNC Financial Services Group Inc. and Affiliates Long Term Disability Plan, et al., No. 15-10817, N.D. Ill., 2017 U.S. Dist. LEXIS 119473).

Mealey's Labor & Employment - Dollar General Defends Deposition Of EEOC In Background Check Suit

CHICAGO - The operator of the Dollar General retail chain on July 28 told an Illinois federal court that its requested deposition of the Equal Employment Opportunity Commission is necessary to learn the factual basis for the commission's discrimination claim over the chain's use of employee background checks, asking the court to deny the EEOC's motion for a protective order (Equal Employment Opportunity Commission v. Dolgencorp LLC, No. 1:13-cv-04307, N.D. Ill.).

Mealey's Litigation Procedure - Dollar General Defends Deposition Of EEOC In Background Check Suit

CHICAGO - The operator of the Dollar General retail chain on July 28 told an Illinois federal court that its requested deposition of the Equal Employment Opportunity Commission is necessary to learn the factual basis for the commission's discrimination claim over the chain's use of employee background checks, asking the court to deny the EEOC's motion for a protective order (Equal Employment Opportunity Commission v. Dolgencorp LLC, No. 1:13-cv-04307, N.D. Ill.).

Mealey's Litigation Procedure - Police Expert's False Confession Opinions Barred In Wrongful Conviction Case

CHICAGO - An expert in police practices for a woman suing Chicago police after being wrongly convicted of murdering her young son cannot testify at trial about coercive interrogations and false confessions because he is not qualified to offer such testimony, an Illinois federal judge ruled July 27 (Nicole Harris v. City of Chicago, et al., No. 14-4391, N.D. Ill., 2017 U.S. Dist. LEXIS 117613).

Mealey's PI/Product Liability - Illinois Court Leaves Stay In Place While Parties Wage Asbestos Discovery Battle

SPRINGFIELD, Ill. - Nothing in the record suggests that a company's appeal of a ruling ordering it to produce index cards it claims contain trade secrets is a frivolous one or that the move is simply a ploy designed to delay trial, an Illinois appeals court held July 26 (Larry Salvatore Sr., et al. v. Cleaver-Brooks, et al., No. 4-17-0244, Ill. App., 4th Dist.).

Mealey's Litigation Procedure - Illinois Court Leaves Stay In Place While Parties Wage Asbestos Discovery Battle

SPRINGFIELD, Ill. - Nothing in the record suggests that a company's appeal of a ruling ordering it to produce index cards it claims contain trade secrets is a frivolous one or that the move is simply a ploy designed to delay trial, an Illinois appeals court held July 26 (Larry Salvatore Sr., et al. v. Cleaver-Brooks, et al., No. 4-17-0244, Ill. App., 4th Dist.).

Mealey's Toxic Tort/Environmental - Illinois Court Leaves Stay In Place While Parties Wage Asbestos Discovery Battle

SPRINGFIELD, Ill. - Nothing in the record suggests that a company's appeal of a ruling ordering it to produce index cards it claims contain trade secrets is a frivolous one or that the move is simply a ploy designed to delay trial, an Illinois appeals court held July 26 (Larry Salvatore Sr., et al. v. Cleaver-Brooks, et al., No. 4-17-0244, Ill. App., 4th Dist., 2017 Ill. App. Unpub. LEXIS 1539).

Mealey's PI/Product Liability - $150M In Punitives Awarded For Misrepresentation In 1st AndroGel MDL Bellwether

CHICAGO - An Illinois federal jury on July 24 found that AbbVie Inc. is not liable to an AndroGel plaintiff for his heart attack but said that the defendant fraudulently misrepresented the testosterone replacement therapy drug and awarded the plaintiff $150 million in punitive damages in the first multidistrict litigation verdict (In Re: Testosterone Replacement Therapy Products Liability Litigation, MDL Docket No. 2545, No. 14-1748, Jesse Mitchell, et al. v. AbbVie, Inc., et al., No. 14-9178, N.D. Ill.).

Mealey's PI/Product Liability - Couple Sues Doctor, Practice Over Negligence During Surgery

CHICAGO - A woman and her husband filed a medical negligence suit against a doctor and the practice he worked for in Illinois federal court on July 17, claiming that the doctor was negligent because he breached the standard of care during surgery (Alivia L. Greenfield, et al. v. The Monroe Clinic, Inc., et al., No. 3:17-cv-50206, W.D. Ill.).

Mealey's Toxic Tort/Environmental - Judge: Court, Not Jury Will Decide Penalty For Violating Clean Air Act

PEORIA, Ill. - A federal judge in Illinois on July 18 denied a request by defendant companies seeking to have a jury decide if they should pay a civil penalty for violating the Clean Air Act (CAA), finding that the statute specifically states that the court will assess what penalty should be imposed (Natural Resources Defense Council, et al. v. Illinois Power Resources LLC, et al., No. 13-CV-1181, C.D. Ill., 2017 U.S. Dist. LEXIS 111556).

Mealey's PI/Product Liability - Illinois Appeals Panel Upholds Defense Verdict In Medical Negligence Suit

CHICAGO - An Illinois appeals panel on July 17 affirmed a defense verdict in a medical negligence suit after finding that the trial court did not err in barring certain testimony from the plaintiff's expert witness and in refusing to give the jury an instruction on contributory negligence (Zbigniew Adwent v. Richard B. Novak, M.D., No. 1-16-0683, Ill. App., 1st Dist., 2017 Ill. App. LEXIS 467).

Mealey's Insurance - Insured's Negligent Work Constitutes An 'Occurrence' Under Policy, 1st Circuit Says

CHICAGO - A condominium association's claim that a painting subcontractor acted negligently is sufficient under Illinois law to constitute an "occurrence" under a commercial general liability policy, the Seventh Circuit U.S. Court of Appeals affirmed July 13 (Westfield Insurance Co. v. National Decorating Service, Inc., et al., No. 16-1439, 7th Cir., 2017 U.S. App. LEXIS 12516).

Mealey's Insurance - Illinois Judge Rejects Insured's Arguments, Denies Motion To Reconsider

CHICAGO - An Illinois judge on July 10 denied an insured's motion for reconsideration in an environmental contamination coverage suit, rejecting the insured's argument that the court erred in determining that the underlying environmental contamination suit did not allege any release of hazardous materials into the environment (Illinois Toolworks Inc. v. ACE Specialty Insurance Co., et al., No. 14-20792, Ill. Cir., Cook Co., Chancery Div.).

Mealey's Litigation Procedure - Judge Transfers Related Securities Suits To Illinois Federal Court

BATON ROUGE, La. - A transfer of venue to Illinois federal court is necessary because all public and private interest weigh heavily in favor of such action, a federal judge in Louisiana ruled July 5 in granting an expedited motion for transfer of venue in a securities class action lawsuit (Robert Berg v. Akorn Inc., et al., No. 17-0359, M.D. La., 2017 U.S. Dist. LEXIS 103917).

Mealey's PI/Product Liability - Judge Transfers Related Securities Suits To Illinois Federal Court

BATON ROUGE, La. - A transfer of venue to Illinois federal court is necessary because all public and private interest weigh heavily in favor of such action, a federal judge in Louisiana ruled July 5 in granting an expedited motion for transfer of venue in a securities class action lawsuit (Robert Berg v. Akorn Inc., et al., No. 17-0359, M.D. La., 2017 U.S. Dist. LEXIS 103917).

Mealey's Insurance - Judge Dismisses Breach Of Contract Suit By Rehabilitator Against Mortgage Reinsurer

CHICAGO - An Illinois federal judge on July 5 dismissed a rehabilitator's lawsuit accusing a reinsurer of breaching its contract with an insolvent mortgage insurance provider by failing to disclose the benefits it derived from a captive reinsurance arrangement because the contract did not impose such a requirement (People of the state of Illinois, ex rel., Acting Director of Insurance, Jennifer Hammer v. Twin Rivers Insurance Co. f/k/a Cherokee Insurance Co., No. 16-7371, N.D. Ill., 2017 U.S. Dist. LEXIS 103833).

Mealey's Securities/D&O Liability - Judge Transfers Related Securities Suits To Illinois Federal Court

BATON ROUGE, La. - A transfer of venue to Illinois federal court is necessary because all public and private interest weigh heavily in favor of such action, a federal judge in Louisiana ruled July 5 in granting an expedited motion for transfer of venue in a securities class action lawsuit (Robert Berg v. Akorn Inc., et al., No. 17-0359, M.D. La., 2017 U.S. Dist. LEXIS 103917).

Mealey's IP/Tech - Blood Pressure Medicine Insurance Action Remanded After Patent Claims Dismissed

CHICAGO - Dismissal of a couple's antitrust and patent claims against a name-brand blood pressure medicine manufacturer for lack of standing leaves only state-based claims against an insurer for failing to cover the drug, a federal judge in Illinois held July 5 in remanding the action (Tarek Farag and Soona Farag v. Health Care Service Corp., d/b/a Blue Cross Blue Shield of Illinois and Novartis Pharmaceuticals Corp., No. 17-2547, N.D. Ill., 2017 U.S. Dist. LEXIS 103302).

Mealey's Litigation Procedure - Home Depot Asks To Have Same Judge Oversee Suits Over Lumber Sizes

CHICAGO - Home Depot Inc. moved in Illinois federal court on June 30 asking that the same judge presiding over a class action suit claiming that Menard Inc. sells dimensional lumber that is not the size that is labeled also oversee a similar class action suit against Home Depot, contending that the suits involve nearly identical allegations and common questions of law (Michael Fuchs, et al. v. Menard Inc., No. 17-cv-01752, N.D. Ill.).