LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Judge Partially Dismisses UCL And Other Claims Related To Defective Engines

NEWARK, N.J. - A New Jersey federal judge on June 7 partially dismissed claims for violation of California's unfair competition law (UCL) and other state law claims asserted by purchasers of allegedly defective tractor engines who seek to certify various classes of purchasers (T.J. McDermott Transportation Co., Inc. et al. v. Cummins Inc., et al., No. 14-4209, D. N.J.; 2016 U.S. Dist. LEXIS 73859).

Mealey's Antitrust/Unfair Competition - Judge Partially Dismisses UCL And Other Claims Related To Defective Engines

NEWARK, N.J. - A New Jersey federal judge on June 7 partially dismissed claims for violation of California's unfair competition law (UCL) and other state law claims asserted by purchasers of allegedly defective tractor engines who seek to certify various classes of purchasers (T.J. McDermott Transportation Co., Inc. et al. v. Cummins Inc., et al., No. 14-4209, D. N.J.; 2016 U.S. Dist. LEXIS 73859).

Mealey's Banking & Finance - Federal Judge Dismisses Complaint, Refuses Request To Amend Fraud Claim

NEWARK, N.J. - A New Jersey federal judge on June 2 granted a bank's motion to dismiss an amended complaint filed against it in relation to a mortgage on a property, finding that a borrower failed to state a claim on which relief could be granted (Ruben Martinez v. Capital One Financial Corp., No. 15-266, D. N.J.; 2016 U.S. Dist. LEXIS 71708).

Mealey's IP/Tech - New Jersey Federal Judge Dismisses Patent Dispute Over Lysteda

TRENTON, N.J. - A patent infringement action involving an abbreviated new drug application (ANDA) covering generic tranexamic acid tablets was dismissed May 26 by a New Jersey federal judge (Ferring B.V. v. Watson Laboratories Inc., et al., No. 15-4222, D. N.J.; 2016 U.S. Dist. LEXIS 69328).

Mealey's Insurance - Magistrate Judge Recommends Denial Of Motion To Dismiss In Bad Faith Suit

SCRANTON, Pa. - A federal magistrate judge in Pennsylvania on May 17 issued a report and recommendation in an insurance breach of contract and bad faith lawsuit, recommending that the district court deny an insurer's motion to dismiss so that it may file a motion for summary judgment and recommending that the insured in the action file a more definite statement regarding her bad faith claim (Sarah Long v. New Jersey Manufacturers Insurance Co., et al., No. 14-2428, M.D. Pa.; 2016 U.S. Dist. LEXIS 65575).

Mealey's Labor & Employment - New Jersey Plaintiffs In Horizon Healthcare Action Seek Settlement

NEWARK, N.J. - A class of chiropractors suing insurers for allegedly systematically denying payment for certain services rendered on May 17 announced that they are seeking approval of a $33 million settlement (Alphonse DeMaria, et al. v. Horizon Healthcare Services Inc. d/b/a Blue Cross Blue Shield of New Jersey, et al., No. 11-7298, D. N.J.).

Mealey's Insurance - Judge: New Jersey Is Proper Forum For Workers' Compensation Fraud Dispute

TRENTON, N.J. - A federal judge in New Jersey on May 16 denied a third-party defendant's motion to dismiss a suit seeking indemnification and contribution from its procurement of allegedly ineligible workers' compensation insurance, finding that a forum-selection clause cannot be enforced because New Jersey has a strong interest in the litigation (Liberty Insurance Corporation v. Bulk Express Logistics Inc., et al., No. 13-5941, D. N.J.; 2016 U.S. Dist. LEXIS 64611).

Mealey's IP/Tech - Federal Circuit Affirms Noninfringement Findings In Patent Dispute

WASHINGTON, D.C. - Arguments by two patent plaintiffs that a New Jersey federal judge erroneously construed various disputed terms in a hip implant socket assembly patent were rejected May 12 by the Federal Circuit U.S. Court of Appeals (Howmedica Osteonics Corp., et al. v. Zimmer Inc., et al., Nos. 15-1232, -1234, -1239, Fed. Cir.; 2016 U.S. App. LEXIS 8701).

Mealey's Insurance - Retrocessional Reinsurer Drops Case Over Premium Payment

NEWARK, N.J. - A retrocessional reinsurer notified a federal court in New Jersey on May 4 that it was dropping its dispute over approximately $9 million in retrocessional reinsurance premiums (National Indemnity Company v. Companhia Siderurgica Nacional S.A., et al., No. 15-cv-00752, D. N.J.).

Mealey's IP/Tech - New Jersey Federal Judge Dismisses Antitrust Count From Patent Case

TRENTON, N.J. - Allegations by a patent infringement defendant of antitrust injury were dismissed May 4 by a New Jersey federal judge; however, the defendant was granted leave to amend to cure various deficiencies in the antitrust counterclaim (Otsuka Pharmaceutical Co. Ltd. v. Torrent Pharmaceutical Limited Inc., No. 14-4671, D. N.J.; 2016 U.S. Dist. LEXIS 59158).

Mealey's Litigation Procedure - Class: New Jersey Governor, School Officials Liable For Lead Poisoning In Newark

TRENTON, N.J. - A group of residents on May 2 filed a purported class action in New Jersey federal court seeking compensatory and punitive damages against Gov. Chris Christie and officials associated with Newark Public Schools in relation to lead-contaminated drinking water in the city and its schools (Veronica Branch, et al v. Chris Christie, et al., No. 16-2467, D. N.J.).

Mealey's Labor & Employment - 3rd Circuit Reinstates Provider ERISA Action Against CIGNA Entities

PHILADELPHIA - A New Jersey judge erroneously ruled that various out-of-network (ONET) medical providers lack standing to sue the Connecticut General Life Insurance Co. and affiliated entities (CIGNA, collectively) under the Employee Retirement Income Security Act for benefits allegedly owed to their assignors, pursuant to the recent ruling in North Jersey Brain & Spine Center v. Aetna, Inc. (801 F.3d 369, 372 [3rd Cir. 2015]) (NJBSC), the Third Circuit U.S. Court of Appeals concluded May 2 in an unpublished ruling (Darlery Franco, et al. v. Connecticut General Life Insurance Company, et al., Nos. 14-3395, -3396, 3rd Cir.; 2016 U.S. App. LEXIS 7886).

Mealey's Toxic Tort/Environmental - Class: New Jersey Governor, School Officials Liable For Lead Poisoning In Newark

TRENTON, N.J. - A group of residents on May 2 filed a purported class action in New Jersey federal court seeking compensatory and punitive damages against Gov. Chris Christie and officials associated with Newark Public Schools in relation to lead-contaminated drinking water in the city and its schools (Veronica Branch, et al v. Chris Christie, et al., No. 16-2467, D. N.J.).

Mealey's Litigation Procedure - Judge: Investor Failed To Plead Material Misstatement In Securities Class Action

TRENTON, N.J. - Dismissal of federal claims in a securities class action lawsuit is proper because a shareholder failed to plead any material misstatements or omissions in making his claims against a drug company and certain of its current and former executive officers, a federal judge in New Jersey ruled April 26 (In re Amarin Corp. PLC Securities Litigation, No. 13-6663, D. N.J.; 2016 U.S. Dist. LEXIS 55568).

Mealey's PI/Product Liability - Judge: Investor Failed To Plead Material Misstatement In Securities Class Action

TRENTON, N.J. - Dismissal of federal claims in a securities class action lawsuit is proper because a shareholder failed to plead any material misstatements or omissions in making his claims against a drug company and certain of its current and former executive officers, a federal judge in New Jersey ruled April 26 (In re Amarin Corp. PLC Securities Litigation, No. 13-6663, D. N.J.; 2016 U.S. Dist. LEXIS 55568).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Material Misstatement In Securities Class Action

TRENTON, N.J. - Dismissal of federal claims in a securities class action lawsuit is proper because a shareholder failed to plead any material misstatements or omissions in making his claims against a drug company and certain of its current and former executive officers, a federal judge in New Jersey ruled April 26 (In re Amarin Corp. PLC Securities Litigation, No. 13-6663, D. N.J.; 2016 U.S. Dist. LEXIS 55568).

Mealey's Insurance - Insureds' Claims Barred Under Anti-Concurrent Causation Clause, Judge Rules

TRENTON, N.J. - Summary judgment in favor of an insurer in an insurance breach of contract and bad faith lawsuit is proper because insureds' claims are barred pursuant to the anti-concurrent causation clause in their homeowners insurance policy, a federal judge in New Jersey ruled April 27 (Jerome Keelen, et al. v. QBE Insurance Corp., No. 13-6941, D. N.J.; 2016 U.S. Dist. LEXIS 55895).

Mealey's Labor & Employment - U.S. High Court: Employee May Challenge Demotion Due To Alleged Political Activity

WASHINGTON, D.C. - An employee who is demoted due to a mistaken belief that he engaged in protected political activity may challenge that decision under the First Amendment to the U.S. Constitution and 42 U.S. Code Section 1983, a divided U.S. Supreme Court ruled April 26 reversing a decision by the Third Circuit U.S. Court of Appeals (Jeffrey J. Heffernan v. City of Paterson, New Jersey, et al., No. 14-1280, U.S. Sup.).

Mealey's Insurance - Judge Allows Defendants Accused Of Fraudulent Billing To Amend Some Counterclaims

CAMDEN, N.J. - A federal judge in New Jersey on April 21 granted a motion filed by the Government Employees Insurance Co. (GEICO) to dismiss counterclaims brought by two physicians and their practices that are accused of engaging in a fraudulent billing scheme but allowed the defendants to amend their allegations that the insurer violated state law when withholding payments on the claims they submitted (Government Employees Insurance Company v. Alfred Tawadrous, et al, No. 14-5742, D. N.J.; 2016 U.S. Dist. LEXIS 53210).

Mealey's Litigation Procedure - Panel: EIFS Exclusion Bars Coverage For Construction Defects Claims Against Insured

TRENTON, N.J. - An insurance policy's external insulation and finish system (EIFS) exclusion precludes coverage for construction defect claims, a New Jersey appeals panel affirmed April 13, finding that sufficient expert testimony supported the contention that EIFS was installed in the project as defined in the exclusion (Crum & Forster Insurance Co. and Crum & Forster Specialty Insurance Co. v. The Breese Corp. and Lakeside at North Haledon Condominium Association, Inc., No. A-3880-13T1, N.J. Super. App. Div.; 2016 N.J. Super. Unpub. LEXIS 829).

Mealey's Toxic Tort/Environmental - Paulsboro Defendants Seek Preclusion Of Evidence About Exposure To Vinyl Chloride

CAMDEN, N.J. - The defendants being sued for injuries from vinyl chloride contamination that allegedly occurred following a train derailment filed a brief in New Jersey federal court on April 15, contending that the district court should issue an order precluding the plaintiffs from "introducing into evidence, inducing any witness to testify, or from referring in any way, directly or indirectly," about one specific plaintiff's alleged levels of exposure to vinyl chloride or its byproducts (In Re: Paulsboro Derailment Cases, No. 13-784, D. N.J.).

Mealey's Insurance - Panel: EIFS Exclusion Bars Coverage For Construction Defects Claims Against Insured

TRENTON, N.J. - An insurance policy's external insulation and finish system (EIFS) exclusion precludes coverage for construction defect claims, a New Jersey appeals panel affirmed April 13, finding that sufficient expert testimony supported the contention that EIFS was installed in the project as defined in the exclusion (Crum & Forster Insurance Co. and Crum & Forster Specialty Insurance Co. v. The Breese Corp. and Lakeside at North Haledon Condominium Association, Inc., No. A-3880-13T1, N.J. Super. App. Div.; 2016 N.J. Super. Unpub. LEXIS 829).

Mealey's Labor & Employment - Financial Advisers' Wage Dispute Deemed Not Appropriate For Class Certification

NEWARK, N.J. - A New Jersey federal judge on April 11 declined to certify a class of financial advisers (FAs) suing their employer for failing to pay them overtime wages for hours in excess of 40 per week (In Re Morgan Stanley Smith Barney LLC Wage and Hour Litigation, No. 11-3121, D. N.J.; 2016 U.S. Dist. LEXIS 48648).

Mealey's Litigation Procedure - Financial Advisers' Wage Dispute Deemed Not Appropriate For Class Certification

NEWARK, N.J. - A New Jersey federal judge on April 11 declined to certify a class of financial advisers (FAs) suing their employer for failing to pay them overtime wages for hours in excess of 40 per week (In Re Morgan Stanley Smith Barney LLC Wage and Hour Litigation, No. 11-3121, D. N.J.; 2016 U.S. Dist. LEXIS 48648).

Mealey's Banking & Finance - N.J. Federal Judge Allows Class Suit Over Force-Placed Insurance To Proceed

CAMDEN, N.J. - Noting a jurisdictional divide, a New Jersey federal judge on April 8 ruled that he would follow Third Circuit of the U.S. Court of Appeals precedent and declined to dismiss a class complaint accusing a mortgage servicer of engaging in a force-placed insurance (FPI) scheme (Joseph Burroughs, et al. v. PHH Mortgage Corporation, No. 15-6122, D. N.J.; 2016 U.S. Dist. LEXIS 47475).