NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 27 dismissed the appeals of a creditor and his attorney who sought to have the trustee's fraudulent conveyance action withdrawn to the U.S. Bankruptcy Court for the Eastern District of New York, ruling that a district court's order that initially dismissed the case was not a final judgment (Debra Kramer v. Tozammel H. Mahia [In Re: Shahara Kahn], No. 13-1930, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9686).
NEW YORK - The ResCap Borrower Claims Trust, as successor in interest to bankrupt Residential Capital LLC (ResCap), on May 23 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the motion of a creditor who seeks reconsideration of her claim that she is entitled to $29,841,120.01 from ResCap's bankruptcy estate (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - A group of plaintiffs that has a lawsuit pending against bankrupt General Motors LLC related to that company's defective ignition switches on May 27 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order declaring that their lawsuit is not stayed in connection to a Bankruptcy Court injunction or a sale related to GM's Chapter 11 bankruptcy (In Re: Motors Liquidation Company, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).
CENTRAL ISLIP, N.Y. - A New York federal judge on May 21 conditionally certified a class of employees of a landscaping company who allege they were illegally denied overtime pay and authorized the plaintiffs to post and circulate a notice of pendency and consent to join form in both English and Spanish (Roberto Batres, et al. v. Valente Landscaping, Inc., et al., No. 14-1434, E.D. N.Y.; 2014 U.S. Dist. LEXIS 69719).
NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investing affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on May 21 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to $1,990,768.53 in claims against the bankruptcy estate, arguing that they should be disallowed (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - A class of plaintiffs who allege that they were injured by faulty ignition switches in vehicles sold by bankrupt General Motors LLC on May 21 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York seeking relief in the Chapter 11 bankruptcy of GM (Steven Groman, et al. v. General Motors LLC [In Re: Motors Liquidation Company], No. 09-50026, Adv. No. 14-01929, Chapter 11, S.D. N.Y. Bkcy.).
NEWARK, N.J. - A New York federal judge on May 20 agreed to strike a claim for impermissible indirect wage deduction brought under New York state law from a wage-and-hour multidistrict litigation filed against Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. Inc. (together, MSSB), finding that the plaintiffs voluntarily paid for their business expenses (In Re Morgan Stanley Smith Barney LLC Wage and Hour Litigation, No. 11-3121, D. N.J.; 2014 U.S. Dist. LEXIS 69710).
NEW YORK - An allegedly reinsured performance bond issuer told a federal court in New York on May 21 that its reinsurer's actions show that it agreed to an extension of a reinsurance agreement (St. Paul Fire & Marine Insurance Company v. Aseguradora De Creditos Y Garantias, S.A., No. 12-cv-4627, S.D. N.Y.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Arcapita Bank BSC in the U.S. Bankruptcy Court for the Southern District of New York on May 20 denied a $10 million claim against the bank on grounds that the creditor was not entitled to a setoff pursuant to a stock purchase agreement between the parties (In Re: Arcapita Bank BSC, No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - A unanimous Second Circuit U.S. Court of Appeals panel affirmed summary judgment on May 19 for insurance companies sued by a polyurethane foam insulation supplier for property damage and personal injuries; the panel concluded that the judge below did not err when he concluded that pollution exclusion clauses in the subject policies relieve the insurers of duties to defend and to indemnify in the underlying class action (Lapolla Industries Inc. v. Aspen Specialty Insurance Co., et al., No. 13-4436, 2nd Cir.; 2014 U.S. App. LEXIS 4436).
NEW YORK - A New York justice partially granted a motion for consolidated trial of eight cases May 15, breaking the plaintiffs' two groups into five (Richard Babravich and Bonnie Babravich, et al. v. A.C. and S. Inc., et al., No. 1040278/00, N.Y. Sup., New York Co.).
NEW YORK - A New York federal judge on May 19 declined to decide whether several corporations made baseless patent infringement claims to extort licensing fees in violation of California's unfair competition law (UCL) after finding that the allegations against the companies do not support a claim for violation of the Racketeer Influenced and Corrupt Organizations Act (FindTheBest.com, Inc. v. Lumen View Technology LLC, et al., No. 13-6521, S.D. N.Y.; 2014 U.S. Dist. LEXIS 68508).
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 19 denied as moot an appeal by entities associated with Sapere Wealth Management LLC in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) on grounds that it was moot because the plaintiffs had received compensation for their vested rights that they said initially had been denied (Sapere Wealth Management LLC, et al. v. MF Global Holdings Ltd., No. 1204732, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9188).
NEW YORK - Certain of a company's current and former directors and officers told a federal court in New York on May 15 that the court did not overlook any facts that would have altered its finding that shareholders had failed to show that presuit demand upon the company's board would have been futile (In re: JPMorgan Chase & Co. Derivative Litigation, No. 12-cv-03878, S.D. N.Y.).
ALBANY, N.Y. - A trial court erred in granting an insured's motion for summary judgment in a water damage coverage dispute because the insured failed to prove that the loss was caused by "the accidental leakage, overflow or discharge of liquids or steam from a plumbing system," a covered cause of loss under the policy, the Third Department New York Supreme Court Appellate Division said May 15 (Michael J. Pichel v. Dryden Mutual Insurance Co., No. 517551, N.Y. Sup. App. Div., 3rd Dept.; 2014 N.Y. App. Div. LEXIS 3515).
NEW YORK - A commercial general liability insurer has no duty to defend or indemnify insureds against faulty workmanship claims, a New York appeals panel affirmed May 15; however, the panel vacated the part of the order directing the insureds to reimburse the insurer for defense costs paid (National Union Fire Insurance Company of Pittsburgh, PA v. Turner Construction Co., et al., No. 651954/11, N.Y. App. Sup. Div., 1st Dept.; 2014 N.Y. App. Div. LEXIS 3546).
NEW YORK - A defendant's decision to display copyrighted photographs of actress Lindsay Lohan on its www.thebosh.com website should result in a total award of $25,132.50 in damages, a New York federal magistrate judge recommended May 16 (BWP Media Inc., d/b/a Pacific Coast News, v. Uropa Media Inc., No. 13-7871, S.D. N.Y.).
NEW YORK - The law firm representing the lead plaintiffs in a class action against General Motors on May 15 sent a letter to the bankruptcy judge in the U.S. Bankruptcy Court for the Southern District of New York presiding over the Chapter 11 case of GM, contending that the Bankruptcy Court should stay an asset sale order (In Re: Motors Liquidation Company, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - Bankrupt Sbarro LLC on May 15 filed a modification to the restructuring plan in the U.S. Bankruptcy Court for the Southern District of New York, contending that the Bankruptcy Code provides for the separate classification of claims and interests into seven classes, based on differences in legal nature or priority (In Re: Sbarro LLC, No. 14-10557, Chapter 11, S.D. N.Y. Bkcy.).