LexisNexis® Legal Newsroom
    Mealey's Labor & Employment - Louisiana High Court Refuses To Revisit Dispute Over Coverage For ERISA Claims

    NEW ORLEANS - The Louisiana Supreme Court denied insureds' writ application challenging an appeals court's ruling that there is no primary or excess fiduciary liability or directors and officers liability insurance coverage for an underlying lawsuit spawned by a federal investigation of insureds' employee stock ownership plans (ESOPs), according to a Feb. 19 news release (Woody D. Bilyeu, et al. v. National Union Fire Insurance Company of Pittsburgh, Pa, et al., No. 2015-C -2277, La. Sup.).

    Mealey's Labor & Employment - Judge: Employees Living Within 1.25 Miles Of Employer May Bring Asbestos Claims

    MADISON, Wis. - Employees living within 1.25 miles of a door-manufacturing facility utilizing asbestos introduced sufficient evidence that home-based exposures contributed to their mesothelioma, a federal judge in Wisconsin held Feb. 19 in allowing the claims while also ruling on the admissibility of deposition testimony and alleged "every exposure" testimony (Milton Boyer and Kathy Boyer v. Weyerhaeuser Co., 3M Co., Metropolitan Life Insurance Co., Owens-Illinois Co., No. 14-286, Katrina Masephol v. Weyerhaeuser Co., 3M Co., Metropolitan Life Insurance Co., Owens-Illinois Co., No. 14-186, Janet Pecher, et al. v. v. Weyerhaeuser Co., 3M Co., Metropolitan Life Insurance Co., Owens-Illinois Co., No. 14-147, Virginia Prust, et al. v. v. Weyerhaeuser Co., 3M Co., Metropolitan Life Insurance Co., Owens-Illinois Co., No. 14-143, Roger Seehafer and Janice Seehafer v. Weyerhaeuser Co. and Owens-Illinois Inc., No. 14-161, Wesley Sydow and Theresa Sydow v. v. Weyerhaeuser Co., 3M Co., Metropolitan Life Insurance Co., Owens-Illinois Co., No. 14-219, Brian Heckel, et al. v. CBS Corp., et al., No. 13-459, Dianne Jacobs v. Rapid American Corp., et al., No. 12-899, W.D. Wis.; 2016 U.S. Dist. LEXIS 20207).

    Mealey's Labor & Employment - On Remand, Federal Judge Again Finds Funds Were Properly Divested

    WINSTON-SALEM, N.C. - A North Carolina federal judge on Feb. 18 found, for a second time, that R.J. Reynolds Tobacco Co. (RJR) was not imprudent under the Employee Retirement Income Security Act when it eliminated Nabisco as an investment option for employees, only to later sell the stock at a loss (Richard G. Tatum v. R.J. Reynolds Tobacco Co., et al., No. 02-373, M.D. N.C.; 2016 U.S. Dist. LEXIS 19536).

    Mealey's Labor & Employment - 10th Circuit: Challenge Of ERISA Preemption Holding Properly Rejected

    DENVER - A Kansas federal judge did not err in denying a negligent misrepresentation plaintiff his requested relief because the underlying motion - seeking reconsideration of a finding of Employee Retirement Income Security Act preemption - was untimely, the 10th Circuit U.S. Court of Appeals ruled Feb. 19 (Trent Lebahn v. Eloise Owens, No. 14-3244, 10th Cir.; 2016 U.S. App. LEXIS 2876).

    Mealey's Labor & Employment - 1st Circuit Reverses: De Novo Review Needed For Denial Of Benefits

    BOSTON - Although rejecting a plaintiff's claim that an insurer committed procedural violations during an internal review of a partial denial of benefits, the First Circuit U.S. Court of Appeals on Feb. 17 nonetheless reversed and remanded the dispute after finding that a Massachusetts federal judge applied the wrong standard of review (Stephanie C. v. Blue Cross Blue Shield of Massachusetts HMO Blue Inc., No. 15-1531, 1st Cir.; 2016 U.S. App. LEXIS 2693).

    Mealey's Labor & Employment - Indiana Federal Judge: Student Athletes Are Not University Employees

    INDIANAPOLIS - Three student athletes failed to show that their participation on university sports teams renders them employees of the university for which they play, an Indiana federal judge ruled Feb. 16 in dismissing the students' claims that they are owed wages under the Fair Labor Standards Act (FLSA) (Gillian Berger, et al. v. National Collegiate Athletic Association, et al., No. 14-1710, S.D. Ind.; 2016 U.S. Dist. LEXIS 18194).

    Mealey's Labor & Employment - Federal Judge Finds California Law Claims Are Not Preempted By ERISA

    SAN FRANCISCO - A California federal judge on Feb. 16 remanded an hourly worker's claims for violation of the California Labor Code and California's unfair competition law (UCL) to a state court, finding that his claims against his employer were not completely preempted by the Employee Retirement Income Security Act (ERISA) (Ruben Mendoza, individually and on behalf of all others similarly situated, v. Aramark Services Inc., et al., No. 150-cv-05142, N.D. Calif.; 2016 U.S. Dist. LEXIS 18648).

    Mealey's Labor & Employment - D.C. Judge Dismisses Putative ERISA Class Action Against Fiduciary

    WASHINGTON, D.C. - Allegations that the fiduciary of an employee stock ownership plan breached its duty by failing to prevent participants from purchasing or holding "doomed" stock were rejected by a District of Columbia federal judge Feb. 17 pursuant to Federal Rule of Civil Procedure 12(b)(6) (Donna Marie Coburn v. Evercore Trust Company N.A., No. 15-49, D. D.C.; 2016 U.S. Dist. LEXIS 18712).

    Mealey's Labor & Employment - Louisiana Federal Magistrate Judge: Claim Against Stop-Loss Insurer Not Preempted

    NEW ORLEANS - Two claims for recovery under Louisiana state law for alleged bad faith by a stop-loss insurer were dismissed with prejudice Feb. 16, but a third claim survived when a Louisiana federal magistrate judge found no preemption by the Employee Retirement Income Security Act (Candies Shipbuilders LLC v. Westport Insurance Corporation, No. 15-1798, E.D. La.; 2016 U.S. Dist. LEXIS 18263).

    Mealey's Labor & Employment - Judge Refuses To Dismiss All Misconduct Claims Against Insurer In Coverage Dispute

    CHICAGO - An Illinois federal judge on Feb. 12 held that although an insurer's failure to provide independent counsel in an underlying wrongful termination dispute does not constitute vexatious or unreasonable conduct, the insured's remaining allegations of misconduct by the insurer are sufficiently supported by the facts (DHR International, Inc. v. Travelers Casualty and Surety Company of America, No. 15 C 4880, N.D. Ill.; 2016 U.S. Dist. LEXIS 17719).

    Mealey's Labor & Employment - Pennsylvania Majority Rejects Argument That Exclusion Is Contrary To Public Policy

    HARRISBURG, Pa. - A majority of the Pennsylvania Superior Court on Feb. 12 rejected an insured's argument that a commercial general liability insurance policy's employer's liability exclusion as it relates to a "leased worker" is unconscionable and against public policy, affirming a lower court's ruling in favor of an insurer in a coverage dispute arising from a workplace injury (Westfield Insurance Company v. Astra Foods Inc., et al., No. 1392 EDA 2014, Pa. Super.; 2016 Pa. Super. LEXIS 84).

    Mealey's Labor & Employment - 3rd Circuit Summarily Affirms: Plaintiff Lacks Standing Under ERISA

    PHILADELPHIA - A Pennsylvania federal judge properly found that a plaintiff's claim for pension benefits accrued by his late father is governed by the Employee Retirement Income Security Act and that the plaintiff lacks standing to maintain such an action, the Third Circuit U.S. Court of Appeals ruled Feb. 11 in a not precedential decision (Thomas E. Robinson Jr. v. Laneko Engineering Co. Inc., No. 15-2837, 3rd Cir.; 2016 U.S. App. LEXIS 2359).

    Mealey's Labor & Employment - Verizon 401(k) Plans Targeted In New Purported Class Action Complaint

    NEW YORK - Citing the "overly complex, overly risky" nature of four participant-directed defined-contribution 401(k) retirement plans offered by Verizon Communications Inc., a participant in one of those plans on Feb. 11 filed a purported class action complaint against myriad defendants in the U.S. District Court for the Southern District of New York (Melina N. Jacobs v. Verizon Communications Inc., et al., No. 16-1082, S.D. N.Y.).

    Mealey's Labor & Employment - Michigan Federal Judge: Auto Insurer Is Liable For Medical Expenses

    GRAND RAPIDS, Mich. - A plaintiff won summary judgment Feb. 10 that an automobile insurer must reimburse him for medical expenses incurred in a 2011 accident, but a Michigan federal judge in the same ruling found that the plaintiff must also reimburse his employer's benefits plan for any third-party recovery he receives in a related state court action that has since been stayed (Jason McClure v. United Parcel Service Flexible Benefits Plan, et al., No. 14-845, W.D. Mich.; 2016 U.S. Dist. LEXIS 15920).

    Mealey's Labor & Employment - Dismissal Denied In Suit Accusing Dave & Buster's Of Interference Under ERISA

    NEW YORK - A New York federal judge on Feb. 9 denied Dave & Buster's Inc.'s motion to dismiss a lawsuit accusing the nationwide restaurant/entertainment chain of violating the Employee Retirement Income Security Act by reducing the hours of its work force in 2013 to avoid the costs associated with providing health insurance to its full-time employees in compliance with the Patient Protection and Affordable Care Act (ACA) (Maria De Lourdes Parra Marin v. Dave & Buster's, Inc., et al., No. 15-3608, S.D. N.Y.).

    Mealey's Labor & Employment - Absolute Employer's Liability Provision Does Not Bar Coverage, Florida Panel Rules

    MIAMI - A Florida appeals panel on Feb. 10 held that a general liability insurance policy's "separation of insureds" provision allowed an insured's claimant to pursue her claims stemming from a slip-and-fall injury against additional insureds under the policy, reversing a lower court's ruling that coverage is barred by the "absolute employer's liability" provision (Kerry Taylor v. Admiral Insurance Co., No. 3D14-720, Fla., App., 3rd Dist.; 2016 Fla. App. LEXIS 1807).

    Mealey's Labor & Employment - 9th Circuit Upholds Administrators' Rejection Of Hospital's Plan Interpretation

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Feb. 8 affirmed a trial court's decision that plan administrators reasonably rejected a hospital's claim that an increase in lifetime maximum benefits for "claims incurred" since a specific date did not include claims made after that date for services rendered prior to that date (Perris Valley Community Hospital, LLC, DBA Vista Hospital of Riverside, A California Limited Liability Company v. Southern California Pipe Trades Administrative Corporation, et al., No. 14-55408, 9th Cir.).

    Mealey's Labor & Employment - Split 6th Circuit Reverses Lifetime Benefits Ruling For Moen Retirees

    CINCINNATI - A divided Sixth Circuit U.S. Court of Appeals panel on Feb. 8, based on the U.S. Supreme Court's decision in M&G Polymers USA, LLC v. Tackett (135 S. Ct. 926 [2015]), reversed a district court's ruling in favor of a class of retirees from Moen Inc. who argued that their collective bargaining agreements guaranteed them health care benefits for life (John L. Gallo, et al. v. Moen Incorporated, Nos. 14-3633 and 14-3918, 6th Cir.; 2016 U.S. App. LEXIS 2118).

    Mealey's Labor & Employment - Federal Judge Dismisses Employee's Conversion Claim For Unpaid Wages

    FRESNO, Calif. - A California federal judge on Feb. 5 dismissed a claim for conversion asserted by an employee of a travel company who also asserts claims for violation of California's unfair competition law (UCL) and Labor Code, finding that it was not possible to make a definite calculation of the amount of hours she worked to be converted (Milagros Alvarenga v. Carlson Wagonlit Travel, Inc., No. 1:15-cv-01560, E.D. Calif.; 2016 U.S. Dist. LEXIS 15180).

    Mealey's Labor & Employment - Pennsylvania Federal Judge: 401(k) Plan Document Qualifies As Trust Agreement

    PHILADELPHIA - Allegations that an employer violated the Employee Retirement Income Security Act by failing to provide, upon request by a former employee a copy of a trust agreement were rejected Feb. 5 by a Pennsylvania federal judge, who instead found that the company's provision of the operative 401(k) plan document satisfied 29 U.S. Code Sections 1024(b)(4) and 1103(a) (Derrick Askew v. R.L. Reppert Inc., et al., No. 11-4003, E.D. Pa.; 2016 U.S. Dist. LEXIS 14448).

    Mealey's Labor & Employment - D.C. Circuit Upholds Ruling For Union In Lockout Dispute

    WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on Feb. 5 enforced a ruling by the National Labor Relations Board finding that a New Jersey company violated the National Labor Relations Act (NLRA) when it locked out its employees after failing to reach an agreement with the union on health benefits (Alden Leeds, Inc. v. National Labor Relations Board, Nos. 11-1267 and 11-1296, D.C. Cir.; 2016 U.S. App. LEXIS 1998).

    Mealey's Labor & Employment - D.C. Circuit: Labor Board Must Review Agreement, Despite Unfair Labor Practices

    WASHINGTON, D.C. - The National Labor Relations Board erred in part when it failed to address the lawfulness of a confidential settlement agreement between an employer and union based on unfair labor practices committed the very next day, the District of Columbia Circuit U.S. Court of Appeals ruled Feb. 5 (Raymond Interior Systems, Inc. v. National Labor Relations Board, No. 12-1011, D.C. Cir.; 2016 U.S. App. LEXIS 1997).

    Mealey's Labor & Employment - Liability Calculation For Union-Mandated Withdrawal Affirmed

    CINCINNATI - An Ohio federal judge did not err in rejecting efforts by an Ohio company to reduce its $1.7 million withdrawal liability following a union-mandated withdrawal from a multiemployer pension plan, the Sixth Circuit U.S. Court of Appeals ruled Feb. 4 (United Food and Commercial Workers Union-Employer Pension Fund, et al. v. Rubber Associates Inc., No. 15-3434, 6th Cir.; 2016 U.S. App. LEXIS 1873).

    Mealey's Labor & Employment - NLRB: Tesoro, Unions Settle Strike Dispute For More Than $8.08M

    WASHINGTON, D.C. - The National Labor Relations Board on Feb. 5 announced that it has approved a more than $8.08 million settlement agreement between Tesoro Refining and Marketing Co. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC (Steelworkers), ending a strike dispute (Tesoro Refining and Marketing Co., No. 19-CA-147090, NLRB, Region 19; Tesoro Refining and Marketing Co., No. 21-CA-146968, NLRB, Region 21).

    Mealey's Labor & Employment - 7th Circuit Reverses Summary Judgment Ruling In Reverse Racism Suit

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on Feb. 3 reversed a trial court's grant of summary judgment for employers in a racial discrimination suit filed by a white construction worker (Terry Deets v. Massman Construction Company, et al., No. 15-1411, 7th Cir.; 2016 U.S. App. LEXIS 1770).