LexisNexis® Legal Newsroom
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.).

Mealey's Insurance - Judge Orders Reinsurers To Pay Captive Reinsurance Program Participants

NEW YORK - A federal judge in New York on April 4 ordered a pair of reinsurers to pay participants to a captive reinsurance program $4 million plus pre- and post-judgment interest (AmTrust North America, Inc., et al. v. Pacific Re, Inc., et al., No. 17-cv-00515, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - Magistrate Judge: Questions Exist On GE's Intent To Dispose Of PCB-Capacitors

SYRACUSE, N.Y. - A federal magistrate judge in New York on March 31 denied portions of motions for summary judgment filed by General Electric Co. (GE) and the state of New York, finding that issues of material fact exist as to whether GE intended to dispose of polychlorinated biphenyl (PCB)-containing capacitors at a scrapyard to be considered an arranger of hazardous waste disposal under the Comprehensive Environmental Response, Compensation, and Liability Act (State of New York, et al. v. General Electric Company, No. 14-CV-747, N.D. N.Y., 2017 U.S. Dist. LEXIS 50026).

Mealey's PI/Product Liability - Whistle-Blower Lawsuit Against Allergan Largely Survives Dismissal In Federal Court

NEW YORK - A New York federal judge on March 31 largely denied Allegan Inc.'s motion to dismiss a false claims/kickback whistle-blower lawsuit, alleging that the company induced eye doctors to prescribe the company's ophthalmic drugs in exchange for free post-operative kits, free drugs and free supplies (United States of America, ex rel. John A. Wood, et al. v. Allergan, Inc., et al., No. 10-5645, S.D. N.Y., 2017 U.S. Dist. LEXIS 50103).

Mealey's Litigation Procedure - Judge: Relationship Involving Arbitrator Justifies Vacatur Of Award

NEW YORK - A federal judge in New York on March 31 vacated a reinsurance arbitration award because of an arbitrator's failure to disclose his relationships with one of the arbitrating parties (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Insurance - Judge: Relationship Involving Arbitrator Justifies Vacatur Of Award

NEW YORK - A federal judge in New York on March 31 vacated a reinsurance arbitration award because of an arbitrator's failure to disclose his relationships with one of the arbitrating parties (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Litigation Procedure - Judge: Lead Plaintiff In Securities Suit Failed To Cure Pleading Deficiencies

NEW YORK - The lead plaintiff in a securities class action lawsuit against a steel processing company and certain of its current and former executive officers and directors have failed to show that the defendants issued any material misrepresentations regarding the company's financial condition in violation of federal securities laws, a federal judge in New York ruled March 29 in dismissing the lead plaintiff's third amended complaint with prejudice (Aram J. Pehlivanian v. China Gerui Advanced Materials Group Ltd., et al., No. 14-9443, S.D. N.Y., 2017 U.S. Dist. LEXIS 46852).

Mealey's Litigation Procedure - Purchase Of Retirement Home Is Relevant To Claim For Disability Benefits, Judge Says

WEST PALM BEACH, Fla. - Because certain circumstances regarding a disability claimant's move to Florida may be relevant to a claim for total disability benefits, a Florida federal judge on March 29 determined that a disability insurer is entitled to information regarding the claimant's real estate transactions (Mark Goodman v. Security Mutual Life Insurance Company of New York, No. 16-81742, S.D. Fla.; 2017 U.S. Dist. LEXIS 45966).

Mealey's Insurance - Purchase Of Retirement Home Is Relevant To Claim For Disability Benefits, Judge Says

WEST PALM BEACH, Fla. - Because certain circumstances regarding a disability claimant's move to Florida may be relevant to a claim for total disability benefits, a Florida federal judge on March 29 determined that a disability insurer is entitled to information regarding the claimant's real estate transactions (Mark Goodman v. Security Mutual Life Insurance Company of New York, No. 16-81742, S.D. Fla.; 2017 U.S. Dist. LEXIS 45966).

Mealey's Securities/D&O Liability - Judge: Lead Plaintiff In Securities Suit Failed To Cure Pleading Deficiencies

NEW YORK - The lead plaintiff in a securities class action lawsuit against a steel processing company and certain of its current and former executive officers and directors have failed to show that the defendants issued any material misrepresentations regarding the company's financial condition in violation of federal securities laws, a federal judge in New York ruled March 29 in dismissing the lead plaintiff's third amended complaint with prejudice (Aram J. Pehlivanian v. China Gerui Advanced Materials Group Ltd., et al., No. 14-9443, S.D. N.Y., 2017 U.S. Dist. LEXIS 46852).

Mealey's Litigation Procedure - Judge: Investors Failed To Plead Scienter Against Defendant In Securities Suit

NEW YORK - A federal judge in New York on March 25 partially granted a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that lead plaintiffs failed to show that one of the defendants acted with the requisite scienter in making their federal securities law claims (In re Eletrobras Securities Litigation, No. 15-5754, S.D. N.Y., 2017 U.S. Dist. LEXIS 44350).

Mealey's Litigation Procedure - Judge Deems Summary Judgment Motion In Reinsurance Dispute Withdrawn

SYRACUSE, N.Y. - A federal judge in New York on March 29 ordered that a reinsured's motion for summary judgment be withdrawn because a motion to seal certain supporting documents is currently under consideration (Munich Reinsurance America, Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

Mealey's Insurance - Judge Deems Summary Judgment Motion In Reinsurance Dispute Withdrawn

SYRACUSE, N.Y. - A federal judge in New York on March 29 ordered that a reinsured's motion for summary judgment be withdrawn because a motion to seal certain supporting documents is currently under consideration (Munich Reinsurance America, Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Scienter Against Defendant In Securities Suit

NEW YORK - A federal judge in New York on March 25 partially granted a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that lead plaintiffs failed to show that one of the defendants acted with the requisite scienter in making their federal securities law claims (In re Eletrobras Securities Litigation, No. 15-5754, S.D. N.Y., 2017 U.S. Dist. LEXIS 44350).

Mealey's PI/Product Liability - New York Panel Affirms Summary Judgment In Medical Malpractice Suit

NEW YORK - A New York appellate panel on March 28 unanimously affirmed a lower court's decision to grant summary judgment in a medical malpractice suit because the hospital and doctor accused of negligence showed through expert testimony that a surgery was not the proximate cause of a man losing vision in his right eye (Charles Steinberg, et al. v. Lenox Hill Hospital, et al., No. 805358/13, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 2334).

Mealey's PI/Product Liability - Woman Can Pursue Contract Claim Against Roof Installer, New York Federal Judge Says

WHITE PLAINS, N.Y. - A woman who claims that a roofing subcontractor defectively installed the roof on her home that eventually needed to be replaced can pursue a cause of action for breach of contract but cannot assert claims for unjust enrichment and attorney fees, a federal judge in New York ruled March 24 (Debra Rothberg v. Phil's Main Roofing, LLC, No. 14-cv-10095, S.D. N.Y., 2017 U.S. Dist. LEXIS 44839).

Mealey's Litigation Procedure - Investors Failed To Plead Motive, Opportunity In Pleading Scienter, Judge Rules

NEW YORK - Shareholders in a securities class action lawsuit have failed to plead any elements of scienter in making their federal securities law claims against a supplier of lightweighting and noise, vibration and harshness solutions for personal and commercial vehicles and certain of the executive officers, a federal judge in New York ruled March 23 in granting the defendants' motion to dismiss (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 42512).

Mealey's Insurance - Insurers Sue Saudi Arabia Under Justice Against Sponsors Of Terrorism Act

NEW YORK - Insurers on March 23 filed a new complaint against Kingdom of Saudi Arabia and/or the Saudi High Commission for Relief of Bosnia & Herzegovina (SHC) in a federal district court, contending that facts and related evidence presented by victims of the Sept. 11, 2001, terrorist attacks have taken on additional significance as a result of the U.S. Congress' enactment of the Justice Against Sponsors of Terrorism Act (JASTA) this past September (Underwriters Inc., et al. v. Kingdom of Saudi Arabia, et al., No. 17-02129, S.D. N.Y.).

Mealey's Insurance - Asbestos Reinsurance Dispute Parties Ordered To Meet For Settlement Conference

UTICA, N.Y. - A federal magistrate judge in New York on March 27 ordered parties to a reinsurance dispute to meet for a settlement conference with the magistrate judge (Utica Mutual Insurance Company v. Fireman's Fund Insurance Company, No. 09-cv-00853, N.D. N.Y.).

Mealey's Securities/D&O Liability - Investors Failed To Plead Motive, Opportunity In Pleading Scienter, Judge Rules

NEW YORK - Shareholders in a securities class action lawsuit have failed to plead any elements of scienter in making their federal securities law claims against a supplier of lightweighting and noise, vibration and harshness solutions for personal and commercial vehicles and certain of the executive officers, a federal judge in New York ruled March 23 in granting the defendants' motion to dismiss (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 42512).