LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - 2nd Circuit Grants Petition For Rehearing In Enforcement Case

NEW YORK - The Second Circuit U.S. Court of Appeals on March 2 granted a petition for rehearing filed by defendants in an action to confirm a $48 million arbitral award issued by the International Chamber of Commerce's (ICC) International Court of Arbitration for the purpose of correcting its previous instructions to the district court with instructions that the district court apply New York law to the remaining issues of the case (CBF Industria de Gusa S/A, et al. v. Amci Holdings Inc., No. 15-1133, 15-1146, 2nd Cir., 2017 U.S. App. LEXIS 3815).

Mealey's Insurance - Reinsured Says Crimes Asserted Against Executive Do Not Affect Arbitration Award

NEW YORK - An insurer on March 6 told a federal court in New York that the conviction of the insurer's chief operating officer on unrelated charges has no bearing on a dispute with a reinsurer over the confirmation or vacatur of an arbitration award (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Bankruptcy - Rapid-American, Insurers Both Denied Judgment On Policy's Limits

NEW YORK - A New York federal bankruptcy judge on March 2 denied summary judgment to both Chapter 11 debtor Rapid-American Corp. and two of its insurers in a dispute over whether a policy has a $10 million or $30 million limit for asbestos liability claims (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

Mealey's Toxic Tort/Environmental - Judge Adopts Recommendation To Approve Settlement In Clean Water Act Suit

NEW YORK - A federal judge in New York on March 3 adopted a magistrate judge's recommendation that a settlement between the federal government and the New York Racing Association to resolve a Clean Water Act (CWA) suit is fair and reasonable (United States of America v. The New York Racing Association, No. 16 CV 5442, E.D. N.Y., 2017 U.S. Dist. LEXIS 30368).

Mealey's Insurance - Judge Approves Extension So Reinsurance Program Parties Can Negotiate Settlement

NEW YORK - A federal judge in New York on March 3 granted a pleadings filing extension to parties to a reinsurance dispute so the parties can continue settlement discussions (AmTrust North America, Inc., et al. v. Safebuilt Insurance Services, Inc., et al., No. 14-cv-9494, S.D. N.Y.).

Mealey's Securities/D&O Liability - Hedge Fund Manager's Motions To Vacate Sentence, Civil Forfeiture Denied

NEW YORK - Convicted hedge fund manager Raj Rajaratnam has failed to show that his trial counsel in his criminal proceedings was ineffective by failing to bring certain arguments on appeal of Rajaratnam's conviction for insider trading, a federal judge in New York ruled March 3 in denying a pair of motions to vacate Rajaratnam's sentence and civil forfeiture (Raj Rajaratnam v. United States of America, No. 15-5325, related to: 09cr1184, S.D. N.Y., 2017 U.S. Dist. LEXIS 30726).

Mealey's Toxic Tort/Environmental - Panel Reverses, Says Statute Of Limitations Expired On Lead-Based Paint Case

ALBANY, N.Y. - A New York appellate panel on March 2 reversed a trial court ruling and determined that a lead-based paint poisoning lawsuit against a landlord couple should be dismissed on grounds that the statute of limitations had expired on the claim (Violet Vasilatos v. William Dzamba, No. 523286, N.Y. Sup., App. Div., 3rd Dept.; 2017 N.Y. App. Div. LEXIS 1581).

Mealey's IP/Tech - Magistrate Criticizes Discovery Responses In Copyright Case, Scolds Entire District

NEW YORK - In a Feb. 28 ruling, a New York federal magistrate judge not only found a copyright and trademark defendant's discovery responses to be noncompliant with Federal Rule of Civil Procedure 34, he also took the opportunity to criticize attorneys throughout the district for continually failing to comply with December 2015 amendments to the rule (James H. Fischer v. Stephen T. Forrest Jr., et al., No. 1:14-cv-01304 and 1:14-cv-01307, S.D. N.Y., 2017 U.S. Dist. LEXIS 28102).

Mealey's Toxic Tort/Environmental - $20M Lead-Based Paint Injury Case May Proceed, Judge Says

BROOKLYN, N.Y. - A federal judge in New York on March 1 ruled that residents who seek $20 million for lead-based paint poisoning injuries allegedly sustained when they rented an apartment have a private right of action and the case may proceed (Sabrina Fuller v. Chandrakalli Sukhnandan, No. 16-2038, E.D. N.Y.; 2017 U.S. Dist. LEXIS 29063).

Mealey's Litigation Procedure - Magistrate Criticizes Discovery Responses In Copyright Case, Scolds Entire District

NEW YORK - In a Feb. 28 ruling, a New York federal magistrate judge not only found a copyright and trademark defendant's discovery responses to be noncompliant with Federal Rule of Civil Procedure 34, he also took the opportunity to criticize attorneys throughout the district for continually failing to comply with December 2015 amendments to the rule (James H. Fischer v. Stephen T. Forrest Jr., et al., No. 1:14-cv-01304 and 1:14-cv-01307, S.D. N.Y., 2017 U.S. Dist. LEXIS 28102).

Mealey's Labor & Employment - New York Federal Judge Says Administrator Failed To Prove Extension Was Warranted

NEW YORK - Because a plan administrator failed to prove that special circumstances existed when it extended the allowable time to issue a decision on appeal, a New York federal judge on Feb. 28 concluded that a de novo standard of review is appropriate (Katherine Salisbury v. Prudential Insurance Company of America, No. 15-9799, S.D. N.Y., 2017 U.S. Dist. LEXIS 27983).

Mealey's Insurance - New York Federal Judge Says Administrator Failed To Prove Extension Was Warranted

NEW YORK - Because a plan administrator failed to prove that special circumstances existed when it extended the allowable time to issue a decision on appeal, a New York federal judge on Feb. 28 concluded that a de novo standard of review is appropriate (Katherine Salisbury v. Prudential Insurance Company of America, No. 15-9799, S.D. N.Y., 2017 U.S. Dist. LEXIS 27983).

Mealey's PI/Product Liability - N.Y. Court Explains Causation Standard In Affirming Rejection Of $11M Verdict

NEW YORK - Causation requires more than evidence of a mechanic's exposure to dust from asbestos-containing brakes, the majority of a New York appeals court held Feb. 28 (In re New York City Asbestos Litigation, Mary Juni, etc. v. A.O. Smith Water Products Co., et al., No. 190315/12, 2457-2458, N.Y. Sup. App., 1st Dept.; 2017 N.Y. App. Div. LEXIS 1505).

Mealey's Litigation Procedure - N.Y. Court Explains Causation Standard In Affirming Rejection Of $11M Verdict

NEW YORK - Causation requires more than evidence of a mechanic's exposure to dust from asbestos-containing brakes, the majority of a New York appeals court held Feb. 28 (In re New York City Asbestos Litigation, Mary Juni, etc. v. A.O. Smith Water Products Co., et al., No. 190315/12, 2457-2458, N.Y. Sup. App., 1st Dept.; 2017 N.Y. App. Div. LEXIS 1505).

Mealey's Toxic Tort/Environmental - Judge Dismisses Breach Of Covenant Of Good Faith Claim As Redundant

NEW YORK - A federal judge in New York on Feb. 27 dismissed an alleged insured's breach of the covenant of good faith claim because it is redundant to a breach of contract claim (JD2 Environmental, Inc. v. Endurance American Insurance Company, No. 14-cv-8888, S.D. N.Y., 2017 U.S. Dist. LEXIS 26977).

Mealey's Litigation Procedure - Objection Deemed Frivolous, Sanctions Denied Following MLB Antitrust Settlement

NEW YORK - A New York federal judge on Feb. 27 called an attorney's behavior during an antirust class proceeding "unprofessional" but declined to impose Federal Rule of Civil Procedure 11 sanctions against the attorney and a class member for whom he drafted a class settlement objection, opining that it is unclear whether the court has jurisdiction to sanction the attorney (Fernanda Garber, et al. v. Office of the Commissioner of Baseball, et al., No. 12-3704, S.D. N.Y., 2017 U.S. Dist. LEXIS 27394).

Mealey's Insurance - Judge Dismisses Declaratory Judgment Claim In Asbestos Reinsurance Case

UTICA, N.Y. - A federal judge in New York on Feb. 24 dismissed a reinsured's claim for declaratory judgment regarding asbestos reinsurance obligations because the claim is duplicative of the relief sought in the reinsured's breach of contract claim (Utica Mutual Insurance Company v. Fireman's Fund Insurance Company, No. 09-cv-00853, N.D. N.Y.).

Mealey's Insurance - Judge Dismisses Breach Of Covenant Of Good Faith Claim As Redundant

NEW YORK - A federal judge in New York on Feb. 27 dismissed an alleged insured's breach of the covenant of good faith claim because it is redundant to a breach of contract claim (JD2 Environmental, Inc. v. Endurance American Insurance Company, No. 14-cv-8888, S.D. N.Y., 2017 U.S. Dist. LEXIS 26977).

Mealey's Toxic Tort/Environmental - N.Y. Court Explains Causation Standard In Affirming Rejection Of $11M Verdict

NEW YORK - Causation requires more than evidence of a mechanic's exposure to dust from asbestos-containing brakes, the majority of a New York appeals court held Feb. 28 (In re New York City Asbestos Litigation, Mary Juni, etc. v. A.O. Smith Water Products Co., et al., No. 190315/12, 2457-2458, N.Y. Sup. App., 1st Dept.; 2017 N.Y. App. Div. LEXIS 1505).

Mealey's Litigation Procedure - Judge Orders Arbitration Of Non-English-Speaking Uber Driver Class's Breach Claims

NEW YORK - A New York federal judge on Feb. 23 stayed breach of contract class claims filed by Uber Technologies Inc. drivers who speak little or no English, finding that the parties' arbitration agreement mandating individual arbitration is enforceable (Saizhang Guan, et al. v. Uber Technologies, Inc., No. 16-598, E.D. N.Y., 2017 U.S. Dist. LEXIS 25840).

Mealey's Health Law - Magistrate Judge: Fraud Defendants Should Pay $2.7M To GEICO Over Scheme

NEW YORK - A federal magistrate judge in New York on Feb. 22 recommended that a judge enter default judgment against defendants accused by the Government Employees Insurance Company (GEICO) and other insurers of fraud and unjust enrichment for submitting bills from clinics that were not owned by physicians and order them to pay $2.7 million in damages (Government Employees Insurance Co., et al. v. parkway medical Care, P.C., et al., No. 15 Civ. 3670, E.D. N.Y., 2017 U.S. Dist. LEXIS 24994).

Mealey's Insurance - Magistrate Judge: Fraud Defendants Should Pay $2.7M To GEICO Over Scheme

NEW YORK - A federal magistrate judge in New York on Feb. 22 recommended that a judge enter default judgment against defendants accused by the Government Employees Insurance Company (GEICO) and other insurers of fraud and unjust enrichment for submitting bills from clinics that were not owned by physicians and order them to pay $2.7 million in damages (Government Employees Insurance Co., et al. v. parkway medical Care, P.C., et al., No. 15 Civ. 3670, E.D. N.Y., 2017 U.S. Dist. LEXIS 24994).

Mealey's Litigation Procedure - Judge: Most Of Amtrak's Claims Of Attorney-Client Privilege Should Be Sustained

BROOKLYN, N.Y. - A New York federal judge on Feb. 17 found that most of Amtrak's claims of attorney-client privilege should be sustained with some exceptions, adopting the majority of a special master's report and recommendation in a coverage dispute over environmental contamination (Certain Underwriters at Lloyd's, et al., v. National Railroad Passenger Corp., et al., No. 14-4717, E.D. N.Y., 2017 U.S. Dist. LEXIS 23680).

Mealey's Litigation Procedure - London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

NEW YORK - A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Insurance - London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

NEW YORK - A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).