LexisNexis® Legal Newsroom
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.).

Mealey's PI/Product Liability - 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.).

Mealey's Insurance - Panel: Reinsurers Need To File Own Complaint As To Legal Malpractice Lawsuit

CHICAGO - An Illinois statute required a surety's reinsurers and insurer to file a complaint against an attorney in their own name, or by the surety "for the use of" the reinsurers and the insurer, an Illinois appeals panel ruled June 30, dismissing a surety's legal malpractice lawsuit (Developers Surety and Indemnity Co. and Insco Insurance Services Inc. v. Marc S. Lipinski, et al., No. 1-15-2658, Ill. App., 1st Dist., 2nd Div., 2017 Ill. App. Unpub. LEXIS 1360).

Mealey's Insurance - Judge: Insurer Did Not Act In Bad Faith In Delegating Employer Trust To Reinsurer

CHICAGO - A contract placed no limits on an insurer's discretion to assign its responsibility to an employer's trust and contained no requirements for disclosure of any assignments, an Illinois federal judge ruled July 5, finding that the insurer did not act in bad faith when it delegated to a reinsurer (Midco International Inc. and Employees Profit Sharing Trust v. Metropolitan Life Insurance Co., No. 14-9470, N.D. Ill., 2017 U.S. Dist. LEXIS 103296).

Mealey's PI/Product Liability - 2nd AndroGel Bellwether Trial Under Way In MDL Court In Illinois

CHICAGO - The second AndroGel bellwether trial got under way July 5 in the testosterone replacement therapy multidistrict litigation in the U.S. District Court for the Northern District of Illinois (Jesse Mitchell, et al. v. AbbVie, Inc., No. 14-9178, N.D. Ill.).

Mealey's Bankruptcy - Bankruptcy Judge Removes Consent Finding In Coverage Dispute Ruling

CHICAGO - An insurer successfully petitioned an Illinois federal bankruptcy judge to remove a finding in his ruling denying the insurer summary judgment in a coverage dispute with asbestos claimants in the Chapter 11 case of Oakfabco Inc. that the insurer waived its right to object to the ruling, according to a June 29 amended opinion (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 1856).

Mealey's PI/Product Liability - Illinois Appeals Court Finds Affidavit Supported Damages From Construction Defects

CHICAGO - An Illinois appeals panel on June 29 affirmed a trial court's decision to award $206,348.06 in damages to a couple accusing a general contractor of breach of contract and breach of implied warranty, ruling that an affidavit submitted by the husband sufficiently showed the amount of damages they incurred as a result of the contractor's actions (Thomas Herlihy, et al. v. Collins Construction Inc., et al., No. 1-16-1142, Ill. App., 1st Dist., 4th Div., 2017 Ill. App. Unpub. LEXIS 1338).

Mealey's Insurance - Panel Affirms Ruling In Dispute Over Directors, Officers Liability Coverage

CHICAGO - An Illinois appeals panel on June 30 affirmed a lower court's ruling in its entirety in a dispute over directors and officers liability coverage for an underlying lawsuit brought against a condominium association and its alleged board members (Astor Plaza Condominium Association, et al., v. Travelers Casualty and Surety Company of America, et al., Nos. 1-15-2546 & 1-16-0110, Ill. App., 1st Dist., 2nd Div., 2017 Ill. App. Unpub. LEXIS 1364).

Mealey's Insurance - Insurance Agent Failed To Provide Timely Notice Of Claim, Illinois Panel Affirms

CHICAGO - An Illinois appeals panel on June 30 affirmed a lower court's ruling in favor of professional liability insurer in a coverage dispute arising from an underlying claim that an insurance agent was negligent in the placement of insurance coverage (James River Insurance Co. v. Timcal, Inc., et al., No. 1-16-2116, Ill. App., 1st Dist., 2nd Div.; 2017 Ill. App. LEXIS 446).

Mealey's Toxic Tort/Environmental - Hoping To Avert Sanctions, Plaintiffs Point To Grounds For Asbestos-Door Appeal

MADISON, Wis. - Owens-Illinois Inc. asked the Seventh Circuit U.S. Court of Appeal on June 28 for permission to address defenses asbestos plaintiffs' raised in their response to an order to show cause as to why sanctions should not be imposed for filing a frivolous appeal and intentionally obfuscating the true word count of their brief (Janet Pecher, et al. v. Owens-Illinois Inc., No. 16-1799, Dianne Jacobs, et al. v. Rapid American and Weyerhaeuser Co. and Owens-Illinois Inc., No. 16-2376, Katrina Masephol v. Weyerhaeuser Co., et al., No. 16-2377, Robert Sydow, et al. v. Owens-Illinois Inc., No. 16-2378, Kathy Boyer v. Owens-Illinois Inc., No. 16-2379, Janice Seehafer v. Weyerhaeuser Co., et al., No. 16-2380., 7th Cir.).

Mealey's Insurance - Panel Affirms Ruling In Insured's Favor In Dispute Over $2.2M Malpractice Suit

SPRINGFIELD, Ill. - An Illinois appeals panel on June 27 affirmed a lower court's ruling in favor of a law firm insured in a coverage dispute over an underlying $2,159,738.04 legal malpractice action (Illinois State Bar Association Mutual Insurance Co. v. The Rex Carr Law Firm, LLC, et al., Nos. 4-16-0365 and 4-16-0546, Ill. App., 4th Dist., 2017 Ill. App. Unpub. LEXIS 1304).

Mealey's IP/Tech - McDonald's Denies That Website, App Violate Blind Man's ADA Rights

CHICAGO - In a June 26 answer filed in Illinois federal court, McDonald's Corp. denies that it violated the Americans With Disabilities Act (ADA) by not providing equal access to its website and mobile app for visually impaired individuals, asking the court to dismiss the complaint brought by a California man (Sean Gorecki v. McDonald's Corporation, No. 1:17-cv-03036, N.D. Ill.).

Mealey's IP/Tech - Professional Services Exclusion Does Not Apply, Federal Judge Reiterates

CHICAGO - An Illinois federal judge on June 21 denied insurers' motion to reconsider an earlier ruling that a professional services exclusion does not apply to bar coverage for an underlying lawsuit alleging that a consulting company insured conspired with a competitor's former employee to use the competitor's copyrighted material and other confidential information (Caveo, LLC v. Citizens Insurance Company of America, Inc., et al., No. 15-6200, N.D. Ill., 2017 U.S. Dist. LEXIS 95432).

Mealey's Insurance - Professional Services Exclusion Does Not Apply, Federal Judge Reiterates

CHICAGO - An Illinois federal judge on June 21 denied insurers' motion to reconsider an earlier ruling that a professional services exclusion does not apply to bar coverage for an underlying lawsuit alleging that a consulting company insured conspired with a competitor's former employee to use the competitor's copyrighted material and other confidential information (Caveo, LLC v. Citizens Insurance Company of America, Inc., et al., No. 15-6200, N.D. Ill., 2017 U.S. Dist. LEXIS 95432).

Mealey's Litigation Procedure - Magistrate Judge Denies Motion To Compel In Trade Secrets Lawsuit

CHICAGO - A federal magistrate judge in Illinois on June 20 denied a motion to compel filed by defendants in a misappropriation of trade secrets lawsuit, ruling that the plaintiff has agreed to provide certain information to the defendants as soon as it is located (PolyOne Corp. v. Yun Martin Lu, et al., No. 14-10369, N.D. Ill., 2017 U.S. Dist. LEXIS 94508).

Mealey's Litigation Procedure - Facebook Seeks Renewed Discovery Stay In Biometrics Class Action

SAN FRANCISCO - Facebook Inc. on June 19 moved to renew a motion to stay discovery in a putative class action alleging that the social network violated Illinois' Biometric Information Privacy Act (BIPA), which it originally filed in California federal court in February, arguing that a pending Ninth Circuit U.S. Court of Appeals ruling could be dispositive of disputed jurisdictional questions and could moot the plaintiffs' discovery requests (In re Facebook Biometric Information Privacy Litigation, No. 3:15-cv-03747, N.D. Calif.).

Mealey's PI/Product Liability - Parties In Fluidmaster MDL To Hold July 14 Settlement Conference

CHICAGO - The federal judge in Illinois presiding over a multidistrict litigation for lawsuits claiming that coupling nuts and hoses in water supply lines made by Fluidmaster Inc. are defective on June 14 stated that the parties will meet for a settlement conference on July 14 (In re: Fluidmaster, Inc., Water Connector Components Products Liability Litigation, MDL 2575, No. 14-cv-5696, N.D. Ill.).

Mealey's Labor & Employment - Illinois Federal Judge: Woman's ADEA Claims Not Adverse Employment Actions

CHICAGO - An Illinois federal judge on June 15 granted the Illinois Department of Human Services' motion for summary judgment in an Age Discrimination in Employment Act (ADEA) lawsuit, saying the plaintiff failed to show that any of the claims she alleged constituted a materially adverse employment action (Diannah Evans v. Illinois Department of Human Services, No. 15-cv-4098, N.D. Ill., Eastern Div., 2017 U.S. Dist. LEXIS 91908).

Mealey's Insurance - Illinois Panel Finds Stay Of Coverage Suit Over Defamation Claim Is Appropriate

ELGIN, Ill. - An Illinois appeals panel on June 14 reversed and remanded a lower court's denial of an insured's motion to stay his insurer's declaratory judgment lawsuit challenging coverage for an underlying defamation claim (State Farm Fire & Casualty Company v. David John and Wheaton College, No. 2-17-0193, Ill. App., 2nd Dist., 2017 Ill. App. LEXIS 378).

Mealey's PI/Product Liability - Court Reverses Forum Ruling Where Plaintiff Couldn't Solidly Identify Exposure

CHICAGO - A trial judge erred in denying forum non conveniens transfer where the plaintiff was at best equivocal regarding his exposure in his chosen forum, an Illinois appeals court held June 13 (Irvin Rohl and Marlene Rohl v. Borg Warner Corp., et al., No. 2016 L 676, Ill. App., 1st Dist., 2017 Ill. App. Unpub. LEXIS 1148).

Mealey's Toxic Tort/Environmental - Court Reverses Forum Ruling Where Plaintiff Couldn't Solidly Identify Exposure

CHICAGO - A trial judge erred in denying forum non conveniens transfer where the plaintiff was at best equivocal regarding his exposure in his chosen forum, an Illinois appeals court held June 13 (Irvin Rohl and Marlene Rohl v. Borg Warner Corp., et al., No. 2016 L 676, Ill. App., 1st Dist., 2017 Ill. App. Unpub. LEXIS 1148).

Mealey's PI/Product Liability - Illinois Appeals Panel Remands Medical Malpractice Suit For Further Proceedings

ELGIN, Ill. - An Illinois appellate panel on June 12 found that a trial court erred in dismissing a medical malpractice suit because it did not apply the "agreement-in-effect" exception to the res judicata doctrine (Robert Kantner v. Ladonna Jo Waugh, et al., No. 2-16-0848, Ill. App., 2nd Dist., 2017 Ill. App. LEXIS 371).

Mealey's IP/Tech - Illinois Federal Judge: State Law Claims Are Preempted By Copyright Act

CHICAGO - Allegations by the heir of songwriter Calvin Carter that various music publishers committed contributory and vicarious copyright infringement by licensing to third parties the performance rights to Carter's work will proceed, an Illinois federal judge ruled June 9 (Tollie Carter v. ARC/Conrad Music LLC, et al., No. 16-6786, N.D. Ill., 2017 U.S. Dist. LEXIS 88509).