LexisNexis® Legal Newsroom
Mealey's Insurance - Reinsurer Says Information Reinsured Seeks Is Overly Broad, Not Relevant To Case

SYRACUSE, N.Y. - A reinsurer told a federal court in New York on July 8 that its reinsured's discovery requests are overly broad and ambiguous (Utica Mutual Insurance Company v. R&Q Reinsurance Company, No. 13-cv-01332, N.D. N.Y.).

Mealey's Bankruptcy - GM Says Plaintiffs' Bid For Relief From Injunction Raises No New Issues

NEW YORK - Arguments made by a group of plaintiffs seeking relief from a ruling by the U.S. Bankruptcy Court for the Southern District of New York enforcing a sale order and injunction against suits against General Motors LLC (New GM) raise no issues that haven't already been considered and rejected by the court, New GM argues in a brief filed July 6 (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).

Mealey's PI/Product Liability - Justice Grants More Time For Stipulated Reduction Of $190M Asbestos Award

NEW YORK - A New York justice handed plaintiffs 60 days to stipulate to the reduction of a $190 million asbestos verdict, saying in an opinion posted July 7 that a pending appellate case could assist both parties (Santo Assenzio v. A.O. Smith Water Products, Robert Brunck v A.O. Smith Water Products, Paul Levy v. A.O. Smith Water Products, Cesar Serna v A.O. Smith Water Products, Raymond Vincent v. A.O. Smith Water Products, Nos. 190008/12, 190026/12, 190200/12, 190183/12, 190184/12, N.Y. Sup., New York Co.).

Mealey's PI/Product Liability - GM Says Plaintiffs' Bid For Relief From Injunction Raises No New Issues

NEW YORK - Arguments made by a group of plaintiffs seeking relief from a ruling by the U.S. Bankruptcy Court for the Southern District of New York enforcing a sale order and injunction against suits against General Motors LLC (New GM) raise no issues that haven't already been considered and rejected by the court, New GM argues in a brief filed July 6 (In re: Chapter 11 Motors Liquidation Co., et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).

Mealey's Toxic Tort/Environmental - Justice Grants More Time For Stipulated Reduction Of $190M Asbestos Award

NEW YORK - A New York justice handed plaintiffs 60 days to stipulate to the reduction of a $190 million asbestos verdict, saying in an opinion posted July 7 that a pending appellate case could assist both parties (Santo Assenzio v. A.O. Smith Water Products, Robert Brunck v A.O. Smith Water Products, Paul Levy v. A.O. Smith Water Products, Cesar Serna v A.O. Smith Water Products, Raymond Vincent v. A.O. Smith Water Products, Nos. 190008/12, 190026/12, 190200/12, 190183/12, 190184/12, N.Y. Sup., New York Co.).

Mealey's Insurance - Judge: Insurer Failed To Show That Amendment Would Be Futile In Bad Faith Suit

LOS ANGELES - A federal judge in California on July 7 granted an insured's motion to amend its complaint in an insurance bad faith lawsuit, ruling that the insurer failed to show that amendment should be denied (Film Allman LLC v. New York Marine and General Insurance Co. Inc., No. 14-7069, C.D. Calif.; 2015 U.S. Dist. LEXIS 88108).

Mealey's Insurance - Flood Deductible Applies To $5M Delay In Completion Losses, N.Y. Panel Affirms

NEW YORK - A New York appeals panel on July 7 affirmed a lower court's ruling that a builders risk insurance policy limits the amount an insurer must pay for an insured's delay in completion losses to $5 million and that the policy's flood deductible applies to the payment (El-Ad 250 West LLC v. Zurich American Insurance Co., No. 15637, 652964/13, N.Y. App., 1st Dept.; 2015 N.Y. App. Div. LEXIS 5753).

Mealey's Insurance - Judge Dismisses Insurers In Amtrak's Superstorm Sandy Coverage Dispute

NEW YORK - A New York federal judge on July 2 entered a final order and judgment that dismissed insurers in Amtrak's breach of contract and declaratory judgment lawsuit over an alleged hundreds of millions of dollars worth of Superstorm Sandy damage (National Railroad Passenger Corp. v. Arch Specialty Insurance Co., et al., No 14-7510, S.D. N.Y.).

Mealey's Banking & Finance - Federal Judge Finds Bank Held Mortgage, Dismisses Quiet Title Action

CHICAGO - After finding that a bank held the mortgage that was defaulted on by a property owner, an Illinois federal judge on July 6 granted the bank's motion to dismiss her quiet title claims (Rose Maguire v. Bank of New York Mellon, N.A., et al., No. 13-cv-6874, N.D. Ill.; 2015 U.S. Dist. LEXIS 87359).

Mealey's Securities/D&O Liability - Judge: Newman Does Not Apply To Insider Trading Claims Against Gupta

NEW YORK - A federal judge in New York on July 2 denied former Goldman Sachs Group Inc. Director Rajat K. Gupta's motion to vacate his sentence on criminal charges stemming from his role in a massive insider trading scheme, ruling that the Second Circuit U.S. Court of Appeals' ruling in United States v. Newman does not apply to the instant action (United States of America v. Rajat Gupta, No. 11-cr-0907, S.D. N.Y.).

Mealey's Litigation Procedure - Magistrate Judge: No Privilege For Emails To Environmental Engineering Firm

BUFFALO, N.Y. - A federal magistrate judge in New York on July 2 granted in part a motion to compel filed by a defendant company in a Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) lawsuit seeking production of emails between the plaintiff company and an environmental engineering firm, ruling that some information was not protected from disclosure by the attorney-client privilege (NL Industries v. ACF Industries, et al., No. 10cv89, W.D. N.Y.; 2015 U.S. Dist. LEXIS 86677).

Mealey's Litigation Procedure - Weatherford International To Pay $120M To Settle Claims In Securities Suit

NEW YORK - An oil and gas industry products provider has agreed to a $120 million settlement of claims with investors that it violated provisions of federal securities laws by misrepresenting the company's business and financial condition, according to a press release issued July 1 (Glenn Freedman v. Weatherford International Ltd., et al., No. 12-2121, S.D. N.Y.).

Mealey's Bankruptcy - 2nd Circuit Addresses Withdrawal Liability Claim Against Bankruptcy Estate

NEW YORK - A multiemployer pension plan failed to demonstrate the amount of unfunded benefits attributable to post-petition operation of a bankruptcy estate, the Second Circuit U.S. Court of Appeals ruled on July 2 in a summary order disallowing the plan's administrative expense claim for a portion of the estate's withdrawal liability (Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund v. The Great Atlantic & Pacific Tea Company, No. 14-3349-bk, 2nd Cir.; 2015 U.S. App. LEXIS 11402).

Mealey's Litigation Procedure - 2nd Circuit Vacates Denial Of Summary Judgment In Unpaid Interns' Suit

NEW YORK - The Second Circuit U.S. Court of Appeals on July 2 vacated an order denying a motion for partial summary judgment sought by unpaid magazine interns for reconsideration in light of another Second Circuit ruling in an intern case the same day in which the appellate court established a set of factors courts can use to consider whether an intern is an employee (Xuedan Wang, et al. v. The Hearst Corp., No. 13-4480, 2nd Cir.; 2015 U.S. App. LEXIS 11516).

Mealey's Labor & Employment - 2nd Circuit Vacates Denial Of Summary Judgment In Unpaid Interns' Suit

NEW YORK - The Second Circuit U.S. Court of Appeals on July 2 vacated an order denying a motion for partial summary judgment sought by unpaid magazine interns for reconsideration in light of another Second Circuit ruling in an intern case the same day in which the appellate court established a set of factors courts can use to consider whether an intern is an employee (Xuedan Wang, et al. v. The Hearst Corp., No. 13-4480, 2nd Cir.; 2015 U.S. App. LEXIS 11516).

Mealey's Litigation Procedure - 2nd Circuit Vacates Rulings In Favor Of Fox Unpaid Interns; Establishes New Test

NEW YORK - The Second Circuit U.S. Court of Appeals on July 2 vacated an order conditionally certifying a nationwide class of unpaid interns working at divisions of Fox Searchlight Pictures Inc. and Fox Entertainment Group Inc. (collectively, Fox) and vacated an order granting partial summary judgment to two of those interns and remanded for reconsideration of the interns' employment status based on a new test focusing on the educational aspects of the internships (Eric Glatt, et al. v. Fox Seachlight Pictures, Inc., et al., Nos. 13-4478 and 13-4481, 2nd Cir.; 2015 U.S. App. LEXIS 11435).

Mealey's Toxic Tort/Environmental - Magistrate Judge: No Privilege For Emails To Environmental Engineering Firm

BUFFALO, N.Y. - A federal magistrate judge in New York on July 2 granted in part a motion to compel filed by a defendant company in a Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) lawsuit seeking production of emails between the plaintiff company and an environmental engineering firm, ruling that some information was not protected from disclosure by the attorney-client privilege (NL Industries v. ACF Industries, et al., No. 10cv89, W.D. N.Y.; 2015 U.S. Dist. LEXIS 86677).

Mealey's Labor & Employment - 2nd Circuit Addresses Withdrawal Liability Claim Against Bankruptcy Estate

NEW YORK - A multiemployer pension plan failed to demonstrate the amount of unfunded benefits attributable to post-petition operation of a bankruptcy estate, the Second Circuit U.S. Court of Appeals ruled on July 2 in a summary order disallowing the plan's administrative expense claim for a portion of the estate's withdrawal liability (Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund v. The Great Atlantic & Pacific Tea Company, No. 14-3349-bk, 2nd Cir.; 2015 U.S. App. LEXIS 11402).

Mealey's Securities/D&O Liability - Weatherford International To Pay $120M To Settle Claims In Securities Suit

NEW YORK - An oil and gas industry products provider has agreed to a $120 million settlement of claims with investors that it violated provisions of federal securities laws by misrepresenting the company's business and financial condition, according to a press release issued July 1 (Glenn Freedman v. Weatherford International Ltd., et al., No. 12-2121, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - Puerto Rico: Reconsideration Of MTBE Ruling Needed; Evidence 'Overlooked'

NEW YORK - The Commonwealth of Puerto Rico on June 30 moved in New York federal court for reconsideration of the court's opinion that dismissed some of the commonwealth's claims, arguing that the ruling constitutes "manifest injustice" and that evidence was "overlooked" (In re: Methyl Tertiary Butyl Ether [MTBE] Products Liability Litigation, MDL 1358, No. 00-1898, Commonwealth of Puerto Rico v. Shell Oil Co., et al., No. 07 Civ. 10470, S.D. N.Y.).

Mealey's Litigation Procedure - 2nd Circuit Affirms Denial Of Petition To Confirm ICC Award

NEW YORK - The Second Circuit U.S. Court of Appeals on July 1 affirmed a district court's decision refusing to confirm an arbitration award issued by the International Court of Arbitration of the International Chamber of Commerce (ICC) in favor of a Brazilian airline, finding that the other party did not agree to arbitrate the dispute (VRG Linhas Aereas S.A. v. MatlinPatterson Global Opportunities Partners II L.P., et al., No. 14-3906, 2nd Cir.; 2015 U.S. App. LEXIS 11281).

Mealey's Banking & Finance - 2nd Circuit Finds Foreclosure Claims Are Barred By State Court Ruling

NEW YORK - The Second Circuit U.S. Court of Appeals on July 1 affirmed a district court's judgment dismissing a case, finding that the claims asserted by a borrower were barred by a previous state court ruling foreclosing on his property (Swinton Brown v. Wells Fargo Bank N.A., et al., No. 14-1846, 2nd Cir.; 2015 U.S. App. LEXIS 11286).

Mealey's Insurance - 2nd Circuit Panel Affirms Dismissal Of Claims In Reinsurer's Bad Faith Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on June 30 affirmed a federal district court's dismissal of an insurance breach of contract and bad faith lawsuit, ruling that it agreed with the district court's findings in coming to its decision (Mariah Re Ltd. [In Liquidation], acting by and through Geoffrey Varga and Jess Shakespeare, in their capacities as Liquidators thereof v. American Family Mutual Insurance Company, et al., No. 14-4062, 2nd Cir.).

Mealey's IP/Tech - 2nd Circuit Finds Sherman Act Violations By Apple In E-Book Pricing Agreements

NEW YORK - A Second Circuit U.S. Court of Appeals panel majority on June 30 found that Apple Inc. "orchestrated a horizontal conspiracy among" certain e-book publishers to raise the prices of e-books, ruling that the agreement between Apple and the publishers constituted an unreasonable restraint of trade in violation of section 1 of the Sherman Act (United States of America, et al. v. Apple Inc., et al., Nos. 13-3741, 13-3748, 13-3783, 13-3857, 13-3864 and 13-3867, 2nd Cir.; 2015 U.S. App. LEXIS 11271).

Mealey's Labor & Employment - 2nd Circuit: Tennis Umps Are Independent Contractors, Not Employees

NEW YORK - U.S. Tennis Association (USTA) umpires are independent contractors, not employees, for the purposes of the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL), the Second Circuit U.S. Court of Appeals ruled June 29, affirming a trial court's decision (Steven Meyer, et al. v. United States Tennis Association, No. 14-3891, 2nd Cir.; 2015 U.S. App. LEXIS 11037).