LexisNexis® Legal Newsroom
    Mealey's Banking & Finance - 'Unrepaid Loan Carve-Out' Does Not Bar Coverage For FDIC's Suit, 9th Circuit Rules

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a federal court's finding that a bank's management liability insurance policy's "unrepaid loan carve-out" does not bar coverage for damages sought by the Federal Deposit Insurance Corp. (FDIC) in an underlying lawsuit alleging tortious conduct by the bank's directors and officers (St. Paul Mercury Insurance Co. v. Federal Deposit Insurance Corporation, No. 14-56830, 9th Cir.; 2016 U.S. App. LEXIS 18811).

    Mealey's Bankruptcy - Insurers Dispute Debtor's Attempt To Vacate Policy Exhaustion Finding

    NEW YORK - A bid by Chapter 11 debtor Rapid-American Corp. to vacate a finding that it has not paid a sufficient amount for asbestos claims to reach the level of excess coverage provided under three insurance policies should be rejected because the debtor is improperly trying to reargue the issue with a revised legal strategy, insurers assert in separate Oct. 18 response briefs in New York federal bankruptcy court (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

    Mealey's Insurance - Federal Judge Denies Default Judgment To Insurer As To Homeowners' Negligence Suit

    HAMMOND, Ind. - Noting the possibility of inconsistent adjudications, an Indiana federal judge on Oct. 18 denied an insurer's request for a default judgment against insured contractors because homeowners' underlying negligence lawsuit against them has not been resolved by judgment and the homeowners are named in the coverage dispute (Property-Owners Insurance Co. v. Raymond T. Yagelski, et al., No. 14-267, N.D. Ind.; 2016 U.S. Dist. LEXIS 143914).

    Mealey's PI/Product Liability - General Motors Bellwether Plaintiff Dismisses Personal Injury Claims

    NEW YORK - The man set to be the first in the second set of bellwether trials against General Motors in the ignition switch multidistrict litigation dismissed his personal injury claims against the automaker with prejudice on Oct. 20 (In Re: General Motors LLC Ignition Switch Litigation, No. 1:14-md-0254, James Boyd v. General Motors LLC, No. 1:14-cv-08385, S.D. N.Y.).

    Mealey's Litigation Procedure - Suit Over Credit Card Numbers On J. Crew Receipts Dismissed

    NEWARK, N.J. - Citing Spokeo v. Robbins (136 S.Ct. 1540 [2016]), a New Jersey federal judge on Oct. 20 dismissed a putative class action against J. Crew Inc. under the Fair and Accurate Credit Transactions Act (FACTA), finding that the complaint failed to allege any concrete injuries from the retailer's printing too many credit card digits on customers' receipts (Ahmed Kamal v. J. Crew Group Inc., et al., No. 2:15-cv-00190, D. N.J.; 2016 U.S. Dist. LEXIS 145392).

    Mealey's Litigation Procedure - Judge Excludes Testimony In Excessive Force Lawsuit Against City, Police Officers

    HATTIESBURG, Miss. - In an excessive force lawsuit against a city and its police officers, a Mississippi federal judge excluded on Oct. 18 a police expert's testimony because the opinions consist of legal conclusions based on legal analysis (Sandra Willis, et al. v. City of Hattiesburg, Miss., et al., No. 2:14-CV-89-KS-MTP, S.D. Miss.; 2016 U.S. Dist. LEXIS 144060).

    Mealey's Insurance - Judge Won't Grant Summary Judgment In Insurance Bad Faith Suit

    SALT LAKE CITY - Genuine issues of material fact exist as to whether an insured had actual knowledge of a superior deed of trust on property it acquired, a federal judge in Utah ruled in denying cross-motions for summary judgment in an insurance breach of contract and bad faith lawsuit on Oct. 18 (Johnsen and Allphin Properties LLC v. First American Title Insurance Co., No. 12-740, D. Utah; 2016 U.S. Dist. LEXIS 144429).

    Mealey's Insurance - North Carolina Law Bars Insurance Fraud Claim Against Device Seller, Judge Rules

    CAMDEN, N.J. - Two companies that sell transcutaneous electrical nerve stimulation (TENS) devices and associated accessories to medical professionals and allegedly submitted inflated bills to Aetna Health Inc. and Aetna Life Insurance Co. (collectively, Aetna) cannot face allegations of insurance fraud brought by the insurer, a federal judge in New Jersey rule Oct. 19, explaining that North Carolina law requires that the accused party be criminally convicted of insurance fraud before bringing the claim (Aetna Health Inc., et al. v. Carolina Analgesic Inc., et al., No. 13-7202, D. N.J.; 2016 U.S. Dist. LEXIS 144872).

    Mealey's Labor & Employment - New York Federal Judge Orders Disclosure Of Fees In Xerox Pension Benefit Dispute

    ROCHESTER, N.Y. - A New York federal judge on Oct. 19 ordered Xerox to disclose the amount of fees it was charged and paid to its law firms in an action over Xerox's violation of the notice requirements of the Employee Retirement Income Security Act when it applied an offset to pension benefits of rehired workers (Paul J. Frommert, et al. v. Sally L. Conkright, et al., No. 00-CV-6311, W.D. N.Y.; 2016 U.S. Dist. LEXIS 144746).

    Mealey's Insurance - Policy's No Action Clause Not Applicable In Bad Faith Suit, Judge Rules

    OKLAHOMA CITY - Dismissal of insurance breach of contract and bad faith claims against an insurer is not proper because an insurance policy's no action clause is inapplicable, a federal judge in Oklahoma said Oct. 19 (Wilbanks Securities Inc., et al. v. Scottsdale Insurance Co., et al., No. 16-294, W.D. Okla.; 2016 U.S. Dist. LEXIS 144761).

    Mealey's Litigation Procedure - Judge Bars Testimony On Human Memory In Criminal Case As 'Unnecessary'

    CHICAGO - A defendant charged with providing a minor with a gun used in a crime failed to establish that her expert's testimony on perception and human memory is "necessary for adequate representation," an Illinois federal judge ruled Oct. 20, declining to appoint an expert under the Criminal Justice Act (United States of America v. Vandetta Redwood, No. 16-CR-80, N.D. Ill.; 2016 U.S. Dist. LEXIS 145307).

    Mealey's Insurance - Judge: Insured Showed She Incurred Economic Loss To Sustain Bad Faith Claim

    PASADENA, Calif. - Although a California federal court did not err in its interpretation of California insurance law, it erred in determining that the insurer failed to show that the insured incurred an economic loss as required to sustain her insurance bad faith claim against a life insurance provider, a Ninth Circuit U.S. Court of Appeals panel ruled Oct. 18 (Beverly Burton v. The Prudential Insurance Company of America, No. 14-56721, 9th Cir.; 2016 U.S. App. LEXIS 18617).

    Mealey's Banking & Finance - 9th Circuit Affirms Dismissal Of FDCPA Claims, Remands TILA Action

    PASADENA, Calif. - In a majority ruling, the Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a district court's dismissal of a property owner's claims for violation of the Fair Debt Collection Practices Act (FDCPA), finding that a trustee was not a debt collector under the statute, but remanded the case for further review of her claim for rescission under the Truth in Lending Act (TILA) (Vien-Phuong Thi Ho v. Recontrust Company, NA, et al., No. 10-56884, 9th Cir.; 2016 U.S. App. LEXIS 18836.)

    Mealey's IP/Tech - Federal Circuit Reaffirms: No Review Of Patent Board Reconsideration Decisions

    WASHINGTON, D.C. - Nothing in the recent U.S. Supreme Court decision in Cuozzo Speed Technologies, LLC v. Lee (136 S. Ct. 2131 [2016]) alters a 2015 conclusion by the Federal Circuit U.S. Court of Appeals that a determination by the Patent Trial and Appeal Board to discontinue inter partes review (IPR) is not reviewable on appeal under 35 U.S. Code Section 314(d), the Federal Circuit ruled Oct. 20, denying a petition for rehearing (Medtronic Inc. v. Robert Bosch Healthcare Systems Inc., Nos. 15-1977, -1986, -1987, Fed. Cir.; 2016 U.S. App. LEXIS 18855).

    Mealey's IP/Tech - Federal Circuit Vacates Fee Award For Timberlake, Spears In Patent Case

    WASHINGTON, D.C. - A California federal judge's decision awarding pop singers Justin Timberlake and Britney Spears $755,925.86 in attorney fees under 35 U.S. Code Section 285 after the duo prevailed on allegations of patent infringement was vacated and remanded by the Federal Circuit U.S. Court of Appeals on Oct. 20 (Large Audience Display Systems LLC v. Tennman Productions LLC, et al., No. 15-2040, Fed. Cir.; 2016 U.S. App. LEXIS 18854).

    Mealey's PI/Product Liability - Plaintiffs Seek Approval Of $9.3M Settlement Over Rust-Oleum's Restore Products

    CHICAGO - Individuals claiming that deck and concrete resurfacing paint made by Rust-Oleum Corp. is defective moved in Illinois federal court on Oct. 19 seeking approval of a $9.3 million settlement offered by the manufacturer, explaining that the agreement was reached in good faith and that the settlement class satisfies the requirements of Federal Rule of Civil Procedure 23 (In re: Rust-Oleum Restore Marketing, Sales Practices and Products Liability Litigation, MDL 2602, Case No. 15 C 1364, N.D. Ill.).

    Mealey's Insurance - 11th Circuit Upholds Ruling Finding Man Accountable For $31M In Intended Losses

    ATLANTA - A federal judge in Florida did not err when finding that a man who pleaded guilty for his role in an insurance fraud scheme that involved fraudulently billing private insurance companies for services that were not provided was accountable for $31 million in intended losses, the 11th Circuit U.S. Court of appeals ruled Oct. 18, holding that the defendant agreed in his plea agreement that his actions resulted in losses between $20 million and $50 million (United States of America v. Alejandro Jesus Cura, No. 15-15259, 11th Cir.; 2016 U.S. App. LEXIS 18638).

    Mealey's Insurance - 'Unrepaid Loan Carve-Out' Does Not Bar Coverage For FDIC's Suit, 9th Circuit Rules

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a federal court's finding that a bank's management liability insurance policy's "unrepaid loan carve-out" does not bar coverage for damages sought by the Federal Deposit Insurance Corp. (FDIC) in an underlying lawsuit alleging tortious conduct by the bank's directors and officers (St. Paul Mercury Insurance Co. v. Federal Deposit Insurance Corporation, No. 14-56830, 9th Cir.; 2016 U.S. App. LEXIS 18811).

    Mealey's IP/Tech - D.C. Circuit Stays Enforcement Of Subpoena On Backpage.com CEO Pending Appeal

    WASHINGTON, D.C. - A District of Columbia U.S. Circuit Court of Appeals pane. on Oct. 17 stayed an enforcement order requiring Backpage.com LLC Chief Executive Officer Carl Ferrer to comply with a U.S. Senate subcommittee discovery subpoena connected with an investigation of online sex trafficking, finding that he had met the requirements for a stay pending appeal (Senate Permanent Subcommittee on Investigations v. Carl Ferrer, No. 16-5232 and 16-5274, D.C. Cir.).

    Mealey's PI/Product Liability - Magistrate Questions Motive, Denies Motion To Add Defendant

    NEW ORLEANS - Saying she is "highly suspicious" of the motive behind adding a diversity-defeating asbestos defendant after removal and just before a motion for remand, a federal magistrate judge in Lousiana declined a motion to file a supplemental and amended complaint on Oct. 17 (Nolan Legeaux, et al. v. Borg-Warner Corp., et al., No. 16-13773, E.D. La.; 2016 U.S. Dist. LEXIS 143241).

    Mealey's IP/Tech - Judge Partially Bars Expert Opinion On Fitness Brand In Trademark Infringement Suit

    HOUSTON - In a trademark infringement lawsuit, an expert may testify on branding in the fitness industry but is not allowed to discuss whether an alleged brand meets various legal definitions related to trademark law, a Texas federal judge ruled Oct. 18, also denying summary judgment to a fitness training company on its fair use defense (Michael Jones v. American Council on Exercise, No. 15-3270, S.D. Texas; 2016 U.S. Dist. LEXIS 143882).

    Mealey's Labor & Employment - 10th Circuit: No Damages For Drivers For Unlawful Usage Fee

    DENVER - A Kansas federal judge properly entered summary judgment for truck drivers on their claim that the motor carrier for whom they worked violated 49 Code of Federal Regulations Sections 376.12(i) by charging them $15 per week to use a satellite communications system, but erred in finding that the drivers were owed damages, the 10th Circuit U.S. Court of Appeals ruled Oct. 18 (Candace Fox, et al. v. TransAm Leasing, Inc., et al., No. 15-3203, 10th Cir.; 2016 U.S. App. LEXIS 18654).

    Mealey's Labor & Employment - Health Insurer Pays $33 Million To Settle Chiropractors' Payment Suit

    NEWARK, N.J. - Horizon Healthcare Service Inc. and related companies (collectively, Horizon) has already transferred $33 million to an interest-bearing, federally insured escrow account that will be used to pay class members, settlement administration costs above the $160,000 that Horizon is obligated to pay and any attorney fees and costs under a settlement granted final approval by a New Jersey federal judge on Oct. 18, ending a class complaint filed by chiropractors alleging that Horizon systematically denied payment for certain services rendered (Alphonse A. DeMaria, et al. v. Horizon Healthcare Services, Inc. d/b/a Horizon Blue Cross Blue Shield of New Jersey, et al., No. 11-7298, D. N.J.; 2016 U.S. Dist. LEXIS 143941).

    Mealey's PI/Product Liability - Florida Court Affirms Rejection Of $10.3M Jones Act Asbestos Verdict

    MIAMI - A Florida appeals court on Oct. 19 affirmed a judge's ruling setting aside a $10.3 million Jones Act asbestos verdict against a cruise line (Giovanna Settimi Caraffa, et al. v. Carnival Cruise Lines, No. 3D 15-356, Fla. App., 3rd Dist.).

    Mealey's Litigation Procedure - South African Company Says ICC Arbitrator Will Hear Shareholder Dispute

    SANDTON, South Africa - A South African resource company on Oct. 20 said an international arbitrator has found that an international court of arbitration has jurisdiction over a shareholders' dispute in relation to a mining project.