LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - New York Federal Judge Tosses Disney Video Privacy Class Complaint

NEW YORK - A New York federal judge on Oct. 20 dismissed a class complaint that accused Disney Online of violating the Video Privacy Protection Act (VPPA) by unlawfully disclosing personal information collected via a Disney app, after determining that the information disclosed did not violate the federal law (James Robinson, et al. v. Disney Online D/B/A Disney Interactive, No. 14-4146, S.D. N.Y.; 2015 U.S. Dist. LEXIS 142486).

Mealey's Litigation Procedure - Apple Says Order Compelling Unlocking Of Device Would Be Burdensome, Infeasible

BROOKLYN, N.Y. - In an Oct. 19 brief submitted in response to a New York federal magistrate's invitation, Apple Inc. says an order sought by the federal government that would require it to unlock a seized Apple-manufactured device would be unduly burdensome in a number of ways (In re Order Requiring Apple Inc. to Assist in the Execution of a Search Warrant Issued by This Court, No. 1:15-mc-01902, E.D. N.Y.).

Mealey's Labor & Employment - 2nd Circuit: Reduced Bonus For Injured Teacher Was Not Discriminatory

NEW YORK - The New York City Department of Education (DOE) did not discriminate against a teacher who was absent part of the year due to injuries sustained in a car accident by giving her a partial bonus; however, the trial court, whose judgment in favor of the DOE was affirmed, erred in basing its decision on Seventh Circuit U.S. Court of Appeals precedents, the Second Circuit U.S. Court of Appeals ruled Oct. 19 (Catharine E. Davis v. New York City Department of Education, et al., No. 14-1034, 2nd Cir.; 2015 U.S. App. LEXIS 18115).

Mealey's Insurance - Panel: No Coverage For 5 Suits Brought By Purchasers Of Mortgage-Backed Securities

NEW YORK - The Second Circuit U.S. Court of Appeals on Oct. 21 affirmed a lower federal court's ruling that there is no directors and officers liability coverage for five underlying lawsuits arising out of the securitizations of residential mortgage-backed securities (Nomura Holding America Inc. v. Federal Insurance Co., No. 14?3789, 2nd Cir.).

Mealey's Litigation Procedure - Judge Orders Reinsurers To Send Questionnaires To Umpire Candidates

NEW YORK - A federal judge in New York on Oct. 16 ordered two retrocessional reinsurers to comply with the court's earlier order and send out questionnaires to certain arbitration umpire candidates (Odyssey Reinsurance Company v. Certain Underwriters at Lloyd's London Syndicate 53, et al., No. 13-cv-09014, S.D. N.Y.).

Mealey's Insurance - Justice Seeks Input On Closing Liquidation Estate With Nearly $4M In Liabilities

NEW YORK - A New York justice on Oct. 16 issued an order to show cause, asking why an order should not be made terminating the liquidation of an insurer that has no assets and nearly $4 million in liabilities (In the Matter of the Liquidation of Washington Title Insurance Company, No. 401396/12, N.Y. Super., New York Co.).

Mealey's Insurance - Panel: 'Earth Movement' Exclusion Bars Insurance Coverage For Collapse

NEW YORK - An "earth movement" exclusion precludes coverage for a collapse on an insured's premises, the Second Circuit U.S. Court of Appeals ruled Oct. 19, affirming summary judgment in favor of the insurer (Coney Island Auto Parts Unlimited, Inc. v. Charter Oak Fire Insurance Co., No. 14-3220, 2nd Cir.; 2015 U.S. App. LEXIS 18032).

Mealey's Insurance - Judge Orders Reinsurers To Send Questionnaires To Umpire Candidates

NEW YORK - A federal judge in New York on Oct. 16 ordered two retrocessional reinsurers to comply with the court's earlier order and send out questionnaires to certain arbitration umpire candidates (Odyssey Reinsurance Company v. Certain Underwriters at Lloyd's London Syndicate 53, et al., No. 13-cv-09014, S.D. N.Y.).

Mealey's Health Law - Health Insurer's Denial Supported By The Record, 2nd Circuit Panel Says

NEW YORK - The Second Circuit U.S. Court of Appeals on Oct. 15 determined that a health benefits insurer did not wrongfully deny a claim for residential treatment because four physicians noted in the administrative record that residential treatment was not necessary (Neil Tansey, et al. v. Anthem Health Plans Inc., et al., No. 14-3931, 2nd Cir.; 2015 U.S. App. LEXIS 17889).

Mealey's Toxic Tort/Environmental - 2 Defendants Seek Review Of Ruling That Puerto Rico's MTBE Claims Stand

NEW YORK - Two of the defendants in the methyl tertiary butyl ether (MTBE) groundwater contamination lawsuit brought by the Commonwealth of Puerto Rico against a group of gasoline companies on Oct. 15 filed a brief in New York federal court seeking reconsideration of a district court's ruling that the statute of limitations has not run on the commonwealth's claim (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 Insurance - Sublimit Provision Caps Liability At $1M, 2nd Circuit Determines

NEW YORK - Because there is no ambiguity in an insurance policy regarding the terms "underground storage tank" and "associated piping," an insurer is required to pay only the policy's $1 million sublimit of liability for underground storage tanks and associated piping, the Second Circuit U.S. Court of Appeals said Oct. 16 (Two Farms Inc. v. Greenwich Insurance Co., No. 12-50, S.D. N.Y.; 2015 U.S. App. LEXIS 17940).

Mealey's Labor & Employment - Health Insurer's Denial Supported By The Record, 2nd Circuit Panel Says

NEW YORK - The Second Circuit U.S. Court of Appeals on Oct. 15 determined that a health benefits insurer did not wrongfully deny a claim for residential treatment because four physicians noted in the administrative record that residential treatment was not necessary (Neil Tansey, et al. v. Anthem Health Plans Inc., et al., No. 14-3931, 2nd Cir.; 2015 U.S. App. LEXIS 17889).

Mealey's Litigation Procedure - Reebok Hit With ADA Class Action Over Accessibility Of Website For Blind Users

NEW YORK - A New York man on Oct. 14 filed a putative class action against Reebok International Ltd. in New York federal court, seeking to represent a nationwide class of visually impaired consumers that he says have been denied equal access to Reebok's website in violation of the Americans With Disabilities Act (ADA) (Jose Del-Orden v. Reebok International Ltd., No. 1:15-cv-08101, S.D. N.Y.).

Mealey's IP/Tech - Reebok Hit With ADA Class Action Over Accessibility Of Website For Blind Users

NEW YORK - A New York man on Oct. 14 filed a putative class action against Reebok International Ltd. in New York federal court, seeking to represent a nationwide class of visually impaired consumers that he says have been denied equal access to Reebok's website in violation of the Americans With Disabilities Act (ADA) (Jose Del-Orden v. Reebok International Ltd., No. 1:15-cv-08101, S.D. N.Y.).

Mealey's IP/Tech - 2nd Circuit: Award Of Fees In Copyright Case Was Improper

NEW YORK - A New York federal judge's decision to order a declaratory judgment defendant to pay a plaintiff accused of copyright infringement nearly $500,000 in attorney fees was reversed by the Second Circuit U.S. Court of Appeals on Oct. 16 (Effie Film LLC, et al. v. Gregory Murphy, No. 14-3367, 2nd Cir.; 2015 U.S. App. LEXIS 17937).

Mealey's Litigation Procedure - Judge Consolidates Securities Suits, Appoints Lead Plaintiff, Lead Counsel

NEW YORK - A federal judge in New York on Oct. 14 consolidated two securities class action lawsuits and appointed lead plaintiff and lead counsel, ruling that the institutional investor chosen meets all statutory requirements for serving as lead plaintiff (Megan Villella v. Chemical & Mining Co. of Chile Inc., et al., No. 15-2106, S.D. N.Y.; 2015 U.S. Dist. LEXIS 140578).

Mealey's Insurance - Federal Judge Refuses To Reconsider Ruling In Dispute Over $1.2M Employee Theft

ALBANY, N.Y. - A New York federal judge on Oct. 15 rejected an insurer's motion to reconsider its summary judgment ruling in a coverage dispute over a $1.2 million theft by the insured's former manager of accounting (Dataflow Inc., et al. Peerless Insurance Co., No. 11-1127, N.D. N.Y.; 2015 U.S. Dist. LEXIS 140181).

Mealey's Securities/D&O Liability - Judge Consolidates Securities Suits, Appoints Lead Plaintiff, Lead Counsel

NEW YORK - A federal judge in New York on Oct. 14 consolidated two securities class action lawsuits and appointed lead plaintiff and lead counsel, ruling that the institutional investor chosen meets all statutory requirements for serving as lead plaintiff (Megan Villella v. Chemical & Mining Co. of Chile Inc., et al., No. 15-2106, S.D. N.Y.; 2015 U.S. Dist. LEXIS 140578).

Mealey's PI/Product Liability - Bankruptcy Judge Stays GM Ignition Switch Case, Orders $10.6M Bond Be Posted

NEW YORK - The federal bankruptcy judge in New York presiding over the liquidation of Motors Liquidation Co., f/k/a General Motors Corp. (Old GM), on Oct. 14 granted a stay in the case and ordered that a $10.6 million bond be posted to cover the prejudice suffered by members of the General Unsecured Claims (GUC) Trust due to the delay in distributions caused by the enforcement of the stay (In re: Motors Liquidation Company, et al., f/k/a General Motors Corp., et al., No. 09-50026, S.D. N.Y. Bkcy.).

Mealey's Insurance - Panel Rejects Reargument In Directors, Officers Liability Coverage Dispute

NEW YORK - A New York appeals panel on Oct. 15 rejected a directors and officers liability insurer's reargument that a merger litigation and an adversary proceeding constitute one continuous claim, reaffirming that coverage for the adversary proceeding is not subject to a 2006-07 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al. v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 7590).

Mealey's IP/Tech - 2nd Circuit Finds Google Library Project To Be Fair Use, Noninfringing

NEW YORK - In a case that it said "tests the boundaries of fair use," a Second Circuit U.S. Court of Appeals panel on Oct. 16 found that Google Inc.'s digital "Library Project" constituted fair use because it is transformative of the included copyrighted works and, therefore, is not infringing (The Authors Guild, et al. v. Google Inc., No. 13-4829, 2nd Cir.).

Mealey's Insurance - Pennsylvania Federal Judge Says Choice Of Law Ruling Will Not Be Changed

HARRISBURG, Pa. - A Pennsylvania federal judge on Oct. 13 denied an insurer's motion for reconsideration, determining that the addition to the record of a portion of the insurer's affidavit does not change the conclusion that Pennsylvania law, not New York law, governs the insured's lawsuit seeking coverage for underlying asbestos liabilities (York International Corp. v. Liberty Mutual Insurance Co., No. 10-0692, M.D. Pa.; 2015 U.S. Dist. LEXIS 138927).

Mealey's Securities/D&O Liability - Panel: Plaintiff Failed To Plead Reliance In Making Securities Law Claims

NEW YORK - A federal district court did not err in dismissing an investment consultant's complaint against a website and its operator for alleged violations of federal securities laws because the investment consultant failed to properly plead reliance, a Second Circuit U.S. Court of Appeals panel ruled Oct. 9 (Joseph M. Salvani, et al. v. InvestorHub.com Inc., et al., No. 14-3994, 2nd Cir.; 2015 U.S. App. LEXIS 17734).

Mealey's PI/Product Liability - N.Y. Justice Awards $5.6M In Uncontested Asbestos Trial Against Mining Company

BUFFALO, N.Y. - A New York justice on Oct. 9 ordered a defunct mining operation to pay $5.6 million after it refused to appear at trial, sources told Mealey Publications (Joseph Muir v. Air & Liquid Systems Corp., et al., No. 809307/2014, N.Y. Sup., Erie Co.).

Mealey's Labor & Employment - N.Y. Justice Awards $5.6M In Uncontested Asbestos Trial Against Mining Company

BUFFALO, N.Y. - A New York justice on Oct. 9 ordered a defunct mining operation to pay $5.6 million after it refused to appear at trial, sources told Mealey Publications (Joseph Muir v. Air & Liquid Systems Corp., et al., No. 809307/2014, N.Y. Sup., Erie Co.).