LexisNexis® Legal Newsroom
    Mealey's Insurance - Excess Insurer Had No Duty To Indemnify Construction Defect Suit, Judge Finds

    DENVER - An excess insurer had no duty to indemnify two insureds for a construction defect case because the primary policy was not yet exhausted, a Colorado federal judge ruled March 20, dismissing a reimbursement lawsuit filed by two other insurers seeking monies for the defect case's settlement (Zurich American Insurance Co. and American Guarantee and Liability Insurance Co. v. Acadia Insurance Co., No. 14-01273, D. Colo., 2017 U.S. Dist. LEXIS 39579).

    Mealey's Insurance - Issues Of Fact Exist On Cause Of Collapse And Insured's Knowledge, Federal Judge Says

    PEORIA, Ill. - Because questions of fact exist regarding the cause of the collapse of a building's second floor and the insured's knowledge of the condition of the building, an Illinois federal judge on March 21 denied an insurer's motion for summary judgment (WAMFAM5 Inc. v. Nova Casualty Insurance Co., No. 15-1195, C.D. Ill., 2017 U.S. Dist. LEXIS 40159).

    Mealey's Litigation Procedure - Magistrate Judge Allows Testimony On Claimed Process In Patent Infringement Suit

    TYLER, Texas - In a patent infringement lawsuit, an expert may provide opinions "based on his technical knowledge and expertise" as to the technical advantages of a claimed process of forming circuitry used in controlling liquid crystal displays (LCDs), a Texas federal magistrate judge ruled March 22 (Eidos Display LLC and Eidos III LLC v. Chi Mei Innolux Corp., et al., No. 11-00201, E.D. Texas, 2017 U.S. Dist. LEXIS 41040).

    Mealey's IP/Tech - Partial Summary Judgment Granted In Apple IPhone Antitrust Class Action

    OAKLAND, Calif. - A California federal judge on March 22 granted in part a motion for summary judgment by Apple Inc., finding that the plaintiffs in a putative antitrust class action failed to establish the primary alleged aftermarket for iPhone voice and data services related to claimed service exclusivity through AT&T Mobility, but the judge deemed a narrower aftermarket related to iPhones not unlocked for service provider exclusivity sufficiently alleged (Zack Ward, et al. v. Apple Inc., No. 4:12-cv-05404, N.D. Calif.).

    Mealey's Labor & Employment - NLRB Rules In-N-Out Burger Can't Make Workers Remove Union, Wage-Related Buttons

    WASHINGTON, D.C. - In-N-Out Burger Inc. violated the National Labor Relations Act (NLRA) when it prohibited employees from wearing unauthorized buttons or insignia that referenced union activity and wages, the National Labor Relations Board ruled March 21 (In-N-Out Burger, Inc. and Mid-South Organizing Committee, Nos. 16-CA-156147 and 16-CA-163251, NLRB).

    Mealey's IP/Tech - 5th Circuit Affirms: No Live Controversy In Patent, Trade Secret Row

    NEW ORLEANS - A dismissal with prejudice of a complaint seeking a declaration of patent noninfringement and that no trade secrets were misappropriated was correct, the Fifth Circuit U.S. Court of Appeals ruled March 20 in a dispute over gas-to-liquid (GTL) conversion technology (Sasol North America Inc., et al. v. GTLPetrol LLC, No. 16-20122, 5th Cir., 2017 U.S. App. LEXIS 5107).

    Mealey's IP/Tech - 3rd Circuit Affirms Contempt Judgment For Refusal To Decrypt Devices

    PHILADELPHIA - A child pornography suspect was correctly found to be in contempt when he refused to comply with a court order requiring him to provide law enforcement with access to external hard drives, a Third Circuit U.S. Court of Appeals panel ruled March 20, finding that the defendant's rights under the Fifth Amendment to the U.S. Constitution were not violated (United States of America v. Apple Mac Pro Computer, et al., No. 15-3537, 3rd Cir.; 2017 U.S. App. LEXIS 4874).

    Mealey's Toxic Tort/Environmental - Some Flint Water Defendants: Local Controversy Exception Applies To Class Action

    DETROIT - Some of the defendants sued by residents of Flint, Mich., in connection with the lead-contaminated drinking water in that city filed a brief in Michigan federal court on March 21, arguing that the lawsuit meets the local controversy exception to the Class Action Fairness Act (CAFA) and, therefore, the court should deny a motion filed by another group of defendants asking it to alter its judgment with regard to exercising its jurisdiction over state law claims (Myia McMillian, et al. v. Governor Richard D. Snyder, et al., No. 16-10796, E.D. Mich.).

    Mealey's Insurance - 9th Circuit Affirms $6.1M Judgment In Favor Of Insured In Dispute With Excess Insurer

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on March 21 affirmed a lower federal court's $6,080,568 judgment in favor of an insured in a breach of contract and bad faith lawsuit against its excess general liability insurer arising from an underlying patent infringement dispute (Teleflex Medical Incorporated v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 14-56366, 9th Cir., 2017 U.S. App. LEXIS 4996).

    Mealey's Insurance - Lawsuit Fails To Trigger Professional Liability Coverage, 7th Circuit Affirms

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on March 21 affirmed a lower federal court's ruling that an underlying lawsuit against an insured does not assert a claim that plausibly falls under her professional liability insurance policy, rejecting an appeal by a homeowners insurer seeking reimbursement of underlying defense costs from the professional liability insurer (Madison Mutual Insurance Co. v. Diamond State Ins Co., No. 15-3292, 7th Cir., 2017 U.S. App. LEXIS 5006).

    Mealey's PI/Product Liability - 3rd Circuit Overturns Merck's Preemption Win In Fosamax Cases

    PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel on March 22 reversed a federal judge in New Jersey's ruling awarding summary judgment to the maker of the osteoporosis drug Fosamax, finding that the manufacturer was unable to produce evidence showing that the Food and Drug Administration would not have approved a stronger warning on the drug's label regarding the risk of femoral fracture (In re Fosamax [Alendronate Sodium] Products Liability Litigation, No. 14-1900, 3rd Cir., 2017 U.S. App. LEXIS 5075).

    Mealey's PI/Product Liability - Former NECC Head Found Not Guilty Of Murder In Fungal Meningitis Outbreak

    BOSTON - A Massachusetts federal jury on March 22 found the former head of the New England Compounding Center (NECC) not guilty of murder in connection with a deadly fungal meningitis outbreak tied to contaminated compounded drugs, but found him guilty of racketeering and fraud (United States of America v. Barry J. Cadden, No. 14-10363, D. Mass.).

    Mealey's Insurance - Judge Finds Jurisdiction Lacking In Insolvent Insurer's Suit Over ACA Payments

    ST. LOUIS - An insolvent insurer's suit against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims, a federal judge in Iowa said March 17 in finding that she lacked jurisdiction and entering judgment (Nick Gerhart, et al. v. United States Department of Health and Human Services, et al., No. 16-151, S.D. Iowa, 2017 U.S. Dist. LEXIS 37620).

    Mealey's Bankruptcy - N.Y. Justice: Wisconsin Dissolution Law Bars Suit Against Special Electric

    NEW YORK - An asbestos action filed outside Wisconsin's two-year window for suing Special Electric Co. Inc. after its dissolution is untimely, and an earlier motion to reopen and enforce its bankruptcy plan does not save the case, a New York justice held in an opinion posted March 21 (In re: New York City Asbestos Litigation, Thomas McGlynn v. Aerco International Inc., No. 190219/2016, 2017 N.Y. Misc. LEXIS 900, In re: New York City Asbestos Litigation, Bertle Stromholm, et al. v. Aerco International Inc., No. 190177/2016, N.Y. Sup., New York Co.).

    Mealey's PI/Product Liability - N.Y. Justice: Wisconsin Dissolution Law Bars Suit Against Special Electric

    NEW YORK - An asbestos action filed outside Wisconsin's two-year window for suing Special Electric Co. Inc. after its dissolution is untimely, and an earlier motion to reopen and enforce its bankruptcy plan does not save the case, a New York justice held in an opinion posted March 21 (In re: New York City Asbestos Litigation, Thomas McGlynn v. Aerco International Inc., No. 190219/2016, 2017 N.Y. Misc. LEXIS 900, In re: New York City Asbestos Litigation, Bertle Stromholm, et al. v. Aerco International Inc., No. 190177/2016, N.Y. Sup., New York Co.).

    Mealey's Litigation Procedure - High Court Hears Arguments On Jurisdiction Of Dismissed Defective Xbox Class Action

    WASHINGTON, D.C. - The U.S. Supreme Court on March 21 heard arguments from Microsoft Corp. and a class of owners of allegedly defective Xbox gaming systems as to whether an appeals court has jurisdiction to consider a class certification appeal after the plaintiffs have voluntarily dismissed their claims with prejudice (Microsoft Corp. v. Seth Baker, et al., No. 15-457, U.S. Sup.).

    Mealey's PI/Product Liability - Lack Of Causation Evidence Fatal To Man's Suit Against BP, Judge Rules

    NEW ORLEANS - BP Exploration and Production Inc. and BP America Production Co. (collectively, BP) were awarded summary judgment by a federal judge in Louisiana on March 20 after she found that a man was unable to produce evidence that his exposure to dispersants during cleanup activities following the oil spill in the Gulf of Mexico caused him to develop lung cancer (Pero Cibilic, et al. v. BP Exploration & Production, Inc., et al., No. 15-995, E.D. La., 2017 U.S. Dist. LEXIS 40056).

    Mealey's Litigation Procedure - Reinsurer: Insurer Did Not Tell Of Trial Witnesses Until After End Of Discovery

    SYRACUSE, N.Y. - A reinsurer asked a federal court in New York on March 17 for permission to file a letter motion asking the court to disqualify certain trial witnesses that were not revealed until after the end of discovery or, in the alternative, allow the reinsurer to depose the witnesses (Utica Mutual Insurance Company v. Munich Reinsurance America, Inc., No. 12-cv-00196, and Munich Reinsurance America, Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

    Mealey's IP/Tech - Insurer's Data Satisfies Florida's Definition Of Trade Secret, Majority Affirms

    TALLAHASSEE, Fla. - A majority of a Florida appeals court on March 20 affirmed a lower court's ruling that an insurer's quarterly supplemental reporting (QUASR) data satisfies the definition of trade secret under state law and is, therefore, exempt from public disclosure (Office of Insurance Regulation v. State Farm Florida Ins. Co., No. 1D16-2301, Fla. App., 1st Dist., 2017 Fla. App. LEXIS 3662).

    Mealey's Securities/D&O Liability - Federal Judge Allows Expert Opinion On Stock Trade In Class Action Securities Suit

    COLUMBUS, Ohio - An economic expert may opine as to whether the market in which a company's stock traded was efficient during a class period and whether it is possible to calculate damages on a classwide basis for purposes of liability, an Ohio federal judge ruled March 17 (Alan Willis v. Big Lots Inc., et al., No. 12-0604, S.D. Ohio, 2017 U.S. Dist. LEXIS 38933).

    Mealey's Labor & Employment - California Federal Judge Denies Decertification, Finds Vendors Are Employees

    SAN FRANCISCO - A network of "vendors" who perform maintenance and repair services at properties owned by Field Asset Services Inc. (FAS) are employees, not independent contractors, and are owed overtime and business expenses, a California federal judge ruled March 17 in an order granting the vendors' motion for partial summary judgment and denying FAS's motion to decertify the class of vendors (Fred Bowerman, et al. v. Field Asset Services Inc., et al., No. 13-57, N.D. Calif., 2017 U.S. Dist. LEXIS 39000).

    Mealey's Antitrust/Unfair Competition - California Federal Judge Denies Decertification, Finds Vendors Are Employees

    SAN FRANCISCO - A network of "vendors" who perform maintenance and repair services at properties owned by Field Asset Services Inc. (FAS) are employees, not independent contractors, and are owed overtime and business expenses, a California federal judge ruled March 17 in an order granting the vendors' motion for partial summary judgment and denying FAS's motion to decertify the class of vendors (Fred Bowerman, et al. v. Field Asset Services Inc., et al., No. 13-57, N.D. Calif., 2017 U.S. Dist. LEXIS 39000).

    Mealey's Labor & Employment - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

    NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

    Mealey's Health Law - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

    NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

    Mealey's Antitrust/Unfair Competition - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

    NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).