LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Energy Supplier Seeks Assistance In Obtaining Discovery In Arbitration

NEW YORK - An English energy supplier on April 18 filed an ex parte application in a New York federal court, seeking assistance in obtaining certain evidence held by a bank for use in an international arbitration commenced by it in relation to a dispute over the alleged forced taking of power-generating equipment by the Commonwealth of Australia (In re Application of APR Energy Holdings Limited for Judicial Assistance in obtaining Evidence in this District for Use in a Foreign and International Proceeding Pursuant to 28 U.S.C. 1782, No. 1:17-cv-02784, S.D. N.Y.).

Mealey's Bankruptcy - New York Federal Judge Grants Insurers' Motion To Withdraw Bankruptcy Reference

NEW YORK - A New York federal judge on April 17 granted a motion filed by two insurers to withdraw an insured's adversary proceeding from bankruptcy court because the bankruptcy court does not have the authority to decide the breach of contract and bad faith claims alleged against the insurers in the adversary proceeding (Phillip Michael Scott v. AIG Property Casualty Co., et al., No. 17-1052, S.D. N.Y., 2017 U.S. Dist. LEXIS 58339).

Mealey's Insurance - New York Federal Judge Says Dismissal Of Insured's Suit Is Not Appropriate

UTICA, N.Y. - Dismissal of an insured's pro se lawsuit seeking coverage for water and mold damages is not appropriate because the insured attempted to timely file the suit within the policy's two-year limitations period, a New York federal judge said April 19 (Edmund Sanderson v. First Liberty Insurance Corp., No. 16-644, N.D. N.Y., 2017 U.S. Dist. LEXIS 59330).

Mealey's Insurance - New York Federal Judge Grants Insurers' Motion To Withdraw Bankruptcy Reference

NEW YORK - A New York federal judge on April 17 granted a motion filed by two insurers to withdraw an insured's adversary proceeding from bankruptcy court because the bankruptcy court does not have the authority to decide the breach of contract and bad faith claims alleged against the insurers in the adversary proceeding (Phillip Michael Scott v. AIG Property Casualty Co., et al., No. 17-1052, S.D. N.Y., 2017 U.S. Dist. LEXIS 58339).

Mealey's Insurance - Insurer Says It Is Challenging Decision That Favors Its Reinsurer

NEW YORK - An insurer told a federal court in New York on April 19 that it is appealing the court's decision that vacated a reinsurance arbitration award because of the actions of an arbitrator (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - 2nd Circuit Dismisses Creosote Injury Case Brought Against Chemical Company

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on April 20 ruled that it lacked jurisdiction to decide a case in which a group of residents sued Tronox Inc. contending that they had been harmed as a result of exposure to wood treated with creosote at the company's plant in Pennsylvania (Avoca Plaintiffs v. Kerr-McGee Corporation; In Re: Tronox Inc., No. 16-343, 2nd Cir.).

Mealey's Insurance - New York Justice Rules Against Insurers In Dispute Over Bear Stearns' Settlement

NEW YORK - A New York justice on April 17 ruled against insurers in a lawsuit seeking indemnification from them for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that it facilitated customers' deceptive market timing and late trading activities (J.P. Morgan Securities, et al. v. Vigilant Insurance, et al., No. 600979/2009, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 1381).

Mealey's Litigation Procedure - New York Federal Judge Unseals Order Certifying J.P. Morgan ERISA Class

NEW YORK - A New York federal judge on April 17 unsealed a two-week-old order certifying a class of J.P. Morgan Chase & Co. (JPMC) employees who invested in any of its stable value funds during 2009 and 2010, saying he found evidence of a possible causal link between alleged breaches of fiduciary duties and the underperformance of the funds (In re J.P. Morgan Stable Value Fund ERISA Litigation, No. 1:12-cv-2548, S.D. N.Y.).

Mealey's Labor & Employment - New York Federal Judge Unseals Order Certifying J.P. Morgan ERISA Class

NEW YORK - A New York federal judge on April 17 unsealed a two-week-old order certifying a class of J.P. Morgan Chase & Co. (JPMC) employees who invested in any of its stable value funds during 2009 and 2010, saying he found evidence of a possible causal link between alleged breaches of fiduciary duties and the underperformance of the funds (In re J.P. Morgan Stable Value Fund ERISA Litigation, No. 1:12-cv-2548, S.D. N.Y.).

Mealey's Labor & Employment - 2nd Circuit Panel Affirms New York Judge's Dismissal Of Pension, Benefits Claims

NEW YORK - A Second Circuit U.S. Court of Appeals panel on April 14 affirmed a New York federal judge's dismissal of a plaintiff's claims for pension and stock benefits on timeliness grounds, saying that his complaint was filed well outside of the six-year limitations period that applies to Employee Retirement Income Security Act claims (Benjamin Reches v. Morgan Stanley & Co. Inc., No 16-3294, 2nd Cir., 2017 U.S. App. LEXIS 6490).

Mealey's Labor & Employment - 2nd Circuit Affirms Ruling Refusing To Certify FLSA And NYLL Class Actions

NEW YORK - The Second Circuit U.S. Court of Appeals on April 14 rejected an appeal of a court decision that refused to certify multiple class actions asserting violations of labor law, finding that the court's ruling was well reasoned and that it did not err when it found that the proposed classes failed to meet the sufficient requirements for class certification (Donna Ruiz, et al. v. Citibank, N.A., No. 15-3941 and Frederic Winfield, et al. v. Citibank, N.A., No. 15-3946, 2017 U.S. App. LEXIS 6399).

Mealey's IP/Tech - New York Federal Judge Dismisses Declaratory Judgment Copyright Case

NEW YORK - In an April 17 ruling, a New York federal judge rejected a request by a plaintiff for intentional interference with contractual relations damages in connection with enforcement efforts by the agent for BMG Rights Management US LLC (Windstream Services LLC v. BMG Rights Management US LLC and Rightscorp Inc., No. 16-5015, S.D. N.Y., 2017 U.S. Dist. LEXIS 58204).

Mealey's Litigation Procedure - 2nd Circuit Affirms Ruling Refusing To Certify FLSA And NYLL Class Actions

NEW YORK - The Second Circuit U.S. Court of Appeals on April 14 rejected an appeal of a court decision that refused to certify multiple class actions asserting violations of labor law, finding that the court's ruling was well reasoned and that it did not err when it found that the proposed classes failed to meet the sufficient requirements for class certification (Donna Ruiz, et al. v. Citibank, N.A., No. 15-3941 and Frederic Winfield, et al. v. Citibank, N.A., No. 15-3946, 2017 U.S. App. LEXIS 6399).

Mealey's PI/Product Liability - Justice: Regulatory Evidence, Tyndall Lighting Tests Admissible At Asbestos Trial

NEW YORK - Some post-exposure regulatory material, evidence relating to studies involving animals and videotapes of Tyndall lighting tests demonstrating the dust released during certain work may be used at an asbestos trial, a justice in New York held in an opinion posted April 11 (Jeanne Evans, et al. v. 3M Co., et al., No. 190109/2015, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 1223).

Mealey's Toxic Tort/Environmental - Justice: Regulatory Evidence, Tyndall Lighting Tests Admissible At Asbestos Trial

NEW YORK - Some post-exposure regulatory material, evidence relating to studies involving animals and videotapes of Tyndall lighting tests demonstrating the dust released during certain work may be used at an asbestos trial, a justice in New York held in an opinion posted April 11 (Jeanne Evans, et al. v. 3M Co., et al., No. 190109/2015, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 1223).

Mealey's Labor & Employment - 2nd Circuit Panel: ERISA Plaintiff Failed To Exhaust Administrative Procedures

NEW YORK - A Second Circuit U.S. Court of Appeals panel on April 10 affirmed a New York federal judge's ruling that a plaintiff in an Employee Retirement Income Security Act lawsuit failed to exhaust a pension plan's internal administrative procedures before filing suit (Kevin McCulloch v. Board of Trustees of the SEIU Affiliates Officers and Employees Pension Plan, et al., No. 16-1374, 2nd Cir., 2017 U.S. App. LEXIS 6099).

Mealey's Insurance - Insurer Says Its Payment Of Asbestos Claims Was Reasonable

SYRACUSE, N.Y. - An insurer told a federal court in New York on April 7 that its payments to its insured were reasonable and that a reinsurer's challenge to those payments is contrary to the follow-the-fortunes doctrine (Utica Mutual Insurance Company v. Century Indemnity Company, No. 13-cv-00995, N.D. N.Y.).

Mealey's Securities/D&O Liability - Citibank Moves For Summary Judgment In Securities Lawsuit

NEW YORK - Trustees cannot be held liable for not pursuing enforcement actions against a party that is deemed to be bankrupt at the time the trustee discovers facts giving rise to a claim, a trustee argues in an April 7 motion for summary judgment filed in a shareholder derivative and securities class action lawsuit filed in New York federal court (Fixed Income Shares: Series M, et al. v. Citibank N.A., et al., No. 14-9373, S.D. N.Y.).

Mealey's IP/Tech - New York Federal Judge Largely Sides With Amazon In Copyright Case

BROOKLYN, N.Y. - Citing the views of the U.S. Copyright Office, a New York federal judge on April 8 found that if a plaintiff's ambient songs are ultimately adjudged to be the same musical works as non-ambient songs, Amazon.com Inc. is not required to serve a copyright owner with additional notices of intent (NOIs) to obtain compulsory licenses (Yesh Music LLC, et al. v. Amazon.com Inc., et al., No. 16-1406, E.D. N.Y., 2017 U.S. Dist. LEXIS 54417).

Mealey's Insurance - Justice Wants Feedback Regarding Call For Creation Of Ancillary Receivership

NEW YORK - A New York justice on April 6 issued an order to show cause, asking for input regarding the request by the head of the state's insurance regulatory body for an order creating an ancillary receivership of an insolvent California insurer (In the Matter of the Application of Maria T. Vullo, Superintendent of Financial Services of the State of New York, for an Order of Appointment as Ancillary Receiver of CastlePoint National Insurance Company, No. 153214/2017, N.Y. Sup., New York Co.).

Mealey's Insurance - Judge Interprets Leases For World Trade Center Buildings In Sept. 11 Dispute

NEW YORK - A New York federal judge on April 6 interpreted four identical net leases for Buildings One, Two, Three and Four of the World Trade Center that were destroyed by the Sept. 11, 2001, terrorist attacks in an effort to provide parameters for experts to express their opinions regarding the values of the leaseholds immediately following their destruction (In Re September 11 Litigation, Nos. 21 MC 101, 08 Civ. 3719, 08 Civ. 3722, S.D. N.Y., 2017 U.S. Dist. LEXIS 53129).

Mealey's PI/Product Liability - 23 Farxiga Diabetes Drug Cases Sent To MDL In Manhattan Federal Court

WASHINGTON, D.C. - Twenty-three federal lawsuits in which plaintiffs allege that they suffered diabetic ketoacidosis and kidney damage from the diabetes drug Farxiga were centralized April 6 before Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York (In Re: Farxiga [Dapaglifozin] Products Liability Litigation, MDL Docket No. 2776, JPMDL).

Mealey's Banking & Finance - 2nd Circuit Finds Loan Servicer Gave Proper Notices Under TILA

NEW YORK - The Second Circuit U.S. Court of Appeals on April 3 affirmed the dismissal of a complaint filed by borrowers against a loan servicer, finding that the servicer properly notified them under the Truth in Lending Act (TILA) that the loan had been transferred (Weston Wright, et al. v. Green Tree Servicing LLC, No. 16-2842, 2nd Cir., 2017 U.S. App. LEXIS 5650).

Mealey's Litigation Procedure - New York High Court Deems Warrant Quash Denials On Facebook Nonappealable

ALBANY, N.Y. - A New York State Court of Appeals majority on April 4 upheld an appeals court's ruling that Facebook Inc.'s motion to quash warrants seeking user information per the Stored Communications Act (SCA) was properly denied, finding that the order, which was in conjunction with a criminal investigation, was nonappealable (In the Matter of 381 Search Warrants Directed to Facebook Inc., No. 16, N.Y. App., 2017 N.Y. LEXIS 767).

Mealey's Insurance - Insurer Relies On Follow-The-Fortunes Rule To Show Reinsurer Must Cover Claims

NEW YORK - An insurer told the Second Circuit U.S. Court of Appeals on April 3 that the language of certain reinsurance agreements are the same as if the agreements had specific follow-the-fortunes provisions (Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 16-cv-2824 and Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 16-2535, 2nd Cir.).