LexisNexis® Legal Newsroom
Mealey's Toxic Tort/Environmental - 'Global Guardian' Ford Liable For United Kingdom Operations, Court Says

NEW YORK - Ford USA acted as a "global guardian" of the brand and cannot escape liability for Ford UK asbestos-containing parts, but New York courts lack jurisdiction over the foreign company, a New York appeals court held Feb. 26 (Raymond Finerty, et al. v. Abex Corp., et al., No. 190187/10 14344 14343, N.Y. Sup., App. Div., 1st Dept.).

Mealey's Litigation Procedure - Reinsurer: Insurer Is Asking For Discovery Of Documents Regarding Other Case

SYRACUSE, N.Y. - A reinsurer told a federal court in New York on Feb. 24 that its reinsured's discovery request is for documents unrelated to the instant action but that concern a different action between related parties in a state court (Utica Mutual Insurance Company v. Century Indemnity Company, No. 13-cv-00995, N.D. N.Y.)

Mealey's Health Law - Judge Denies Health Care Fraud Defendant's Motion For Acquittal

NEW YORK - The federal government provided sufficient evidence to a jury that a female doctor was only a paper owner of a New York medical clinic who made material misrepresentations to insurance companies as part of a conspiracy to commit health care fraud, a federal judge in New York ruled Feb. 26 in denying the defendant's motion for acquittal or new trial (United States of America v. Tatyana Gabinskaya, No. 12-cr-171 JPO, S.D. N.Y.; 2015 U.S. Dist. LEXIS 23343).

Mealey's Toxic Tort/Environmental - Faulty Work Exclusion Bars Insured's Claim, New York Appeals Court Concludes

ALBANY, N.Y. - Pollution and faulty workmanship exclusions preclude coverage for an insured's claim for property damage arising from silica dust during construction work, a New York appeals panel ruled Feb. 26 (Broome County v. The Travelers Indemnity Co., et al., No. 518993, N.Y. Sup., App. Div., 3rd Dept.; 2015 N.Y. App. Div. LEXIS 1706).

Mealey's Banking & Finance - New York Federal Judge Tosses Class Suit Against Bank Over Payday Loan Debits

CENTRAL ISLIP, N.Y. - A New York federal judge on Feb. 24 dismissed a class complaint accusing Bank of America N.A. (BOA) of violating state laws by allowing lenders who make allegedly unlawful payday loans to debit its customers' accounts (Jeanette Costoso, et al. v. Bank of America, N.A., No. 14-4100, E.D. N.Y.; 2015 U.S. Dist. LEXIS 22023).

Mealey's PI/Product Liability - GM, Plaintiffs Disagree On Choice Of Law For Unjust Enrichment Claims

NEW YORK - Claims of fraudulent concealment and breach of implied warranty arising from ignition-switch defects in vehicles manufactured by General Motors LLC (New GM) should be governed by the law of the individual states in which the claims arose, the lead plaintiffs and automaker argue in briefs filed Feb. 20 in the federal multidistrict litigation court (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's PI/Product Liability - GM Plaintiffs Ask MDL Judge To Amend Order On Redacted Discovery

NEW YORK - Lead counsel for the plaintiffs in the General Motors LLC (GM) ignition switch litigation on Feb. 23 asked the federal judge overseeing the litigation to amend an order allowing the automaker to redact "highly confidential" information from responses to discovery requests (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's Insurance - Judge Refuses To Dismiss Insurer's Suit Disputing Coverage For Guar Bean Investor

NEW YORK - A New York federal judge on Feb. 19 denied an insured's motion to dismiss an insurer's lawsuit disputing coverage for legal fees and costs that the insured incurred in an underlying lawsuit arising from its investment in a guar bean company (St. Paul Fire and Marine Insurance Co. v. Scopia Windmill Fund LP, et al., No. 14-cv-8002 (JSR), S.D. N.Y.; 2015 U.S. Dist. LEXIS 20318).

Mealey's Securities/D&O Liability - Judge Preliminarily Approves $235M Settlement In Securities Class Action

NEW YORK - A federal judge in New York on Feb. 19 granted preliminary approval to a $235 million securities class action settlement between shareholders and underwriters of Residential Accredit Loans Inc. (RALI) Mortgage Asset-Backed Pass-Through Certificates, who are alleged to have misrepresented RALI's exposure to the subprime mortgage lending crisis in offering documents for RALI securities in offering documents for the certificates (New Jersey Carpenters Health Fund, et al. v. Residential Capital LLC, et al., No. 08-8781, S.D. N.Y.).

Mealey's Health Law - High Court Will Not Review Preemption Ruling In Subrogation Case

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 23 declined to review a Second Circuit U.S. Court of Appeals ruling that the Employee Retirement Income Security Act does not preempt a New York state anti-subrogation law that prohibits insurers from obtaining reimbursement of medical benefits from participants' tort settlements (The Rawlings Company, et al. v. Megan Wurtz, et al., No. 14-487, U.S. Sup.).

Mealey's Labor & Employment - High Court Will Not Review Preemption Ruling In Subrogation Case

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 23 declined to review a Second Circuit U.S. Court of Appeals ruling that the Employee Retirement Income Security Act does not preempt a New York state anti-subrogation law that prohibits insurers from obtaining reimbursement of medical benefits from participants' tort settlements (The Rawlings Company, et al. v. Megan Wurtz, et al., No. 14-487, U.S. Sup.).

Mealey's Insurance - Subrogated Insurer's Professional Negligence Claim Fails, Judge Says

PITTSBURGH - A Pennsylvania federal judge on Feb. 20 dismissed a subrogated insurer's professional negligence claim against a contractor regarding water damage arising from a fire sprinkler system installed by the contractor (Insurance Company of Greater New York, as subrogee of Five Star Hotels LLC d/b/a Holiday Inn Parkway East v. Fire Fighter Sales & Service Co., No. 11-1078, W.D. Pa.; 2015 U.S. Dist. LEXIS 20531).

Mealey's Toxic Tort/Environmental - Pennsylvania, Citgo Reach Deal To Dismiss Some MTBE Claims, Letter Says

NEW YORK - The attorney for two of the defendants in the methyl tertiary butyl ether (MTBE) products litigation on Feb. 18 sent a letter to the judge presiding over the case indicating that the parties had agreed upon a dismissal of those defendants (In Re: Methyl Tertiary Butyl Ether Products Liability Litigation, No. 001898, MDL 1358, Commonwealth of Pennsylvania v. Exxon Mobil Corporation, No. 14-06228, S.D. N.Y.).

Mealey's PI/Product Liability - MDL Judge Defines Claims For Inclusion In Bellwether Trials Against General Motors

NEW YORK - The federal judge overseeing the General Motors LLC ignition-switch cases on Feb. 17 further clarified the three categories of claims to be used in the bellwether trial plan in the multidistrict litigation (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's IP/Tech - Magistrate: Trademark, Copyright Claims Against Web Hosts Should Be Dismissed

NEW YORK - The operator of a language tutoring website failed to allege any "intelligible allegations" that three web hosting firms committed trademark, copyright or cybersquatting violations, a New York federal magistrate concluded Feb. 11, recommending that all claims against them be dismissed (Susen Gench v. HostGator.com LLC, et al., No. 1:14-cv-03592, S.D. N.Y.; 2015 U.S. Dist. LEXIS 16682).

Mealey's Litigation Procedure - Judge Refuses To Vacate $1.6 Billion Award, Stays Case Pending Application

NEW YORK - A New York federal judge on Feb. 13 refused to vacate a judgment that confirmed a $1.6 billion award issued against Venezuela and in favor of various ExxonMobil entities, but stayed the case pending a decision by the International Centre for Settlement of Investment Disputes (ICSID) on Venezuela's application to revise the award (Mobil Cerro Negro Ltd., et al. v. Bolivarian Republic of Venezuela, No. 14-8163, S.D. N.Y.; 2015 U.S. Dist. LEXIS 17919).

Mealey's Insurance - N.Y. Justice Refuses To Dismiss Coverage Suit Over Water Damage To Work Of Art

NEW YORK - A New York justice on Feb. 11 found that a foundation insured's action seeking coverage for water damage to a renowned work of art was timely, refusing to dismiss the complaint (Richard Avedon Foundation v. AXA Art Insurance Corp., No. 151435/2014, N.Y. Sup., New York Co.).

Mealey's Labor & Employment - 2nd Circuit Upholds Partial Class Cert In Assistant Managers' Wage Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Feb. 10 affirmed partial certification of a class of assistant store managers (ASMs) who claim that they are owed overtime (Mani Jacob, et al. v. Duane Reade, Inc., et al., No. 13-3873, 2nd Cir.; 2015 U.S. App. LEXIS 2040).

Mealey's Litigation Procedure - Federal Judge Refuses To Exclude Testimony Of FHFA's Expert

NEW YORK - After finding that testimony on pre-closing loan tape discrepancies was relevant to the claims asserted by the Federal Housing Finance Agency (FHFA) against numerous entities, a New York federal judge on Feb. 12 refused to exclude the testimony of the FHFA's expert witness (Federal Housing Finance Agency v. Nomura Holding America Inc., et al., No. 11cv6201, S.D. N.Y.; 2015 U.S. Dist. LEXIS 17447).

Mealey's Litigation Procedure - 2nd Circuit Upholds Partial Class Cert In Assistant Managers' Wage Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Feb. 10 affirmed partial certification of a class of assistant store managers (ASMs) who claim that they are owed overtime (Mani Jacob, et al. v. Duane Reade, Inc., et al., No. 13-3873, 2nd Cir.; 2015 U.S. App. LEXIS 2040).

Mealey's Banking & Finance - Federal Judge Refuses To Exclude Testimony Of FHFA's Expert

NEW YORK - After finding that testimony on pre-closing loan tape discrepancies was relevant to the claims asserted by the Federal Housing Finance Agency (FHFA) against numerous entities, a New York federal judge on Feb. 12 refused to exclude the testimony of the FHFA's expert witness (Federal Housing Finance Agency v. Nomura Holding America Inc., et al., No. 11cv6201, S.D. N.Y.; 2015 U.S. Dist. LEXIS 17447).

Mealey's Labor & Employment - New York Court Affirms Award Of Compensation For Teacher's Mold Exposure

ALBANY, N.Y. - A New York appeals court on Feb. 11 affirmed a board's decision to award a teacher compensation benefits, finding that she provided sufficient evidence to show that she suffered injuries caused by mold exposure at work (Michelle Cappelletti v. Marcellus Central School District, et al., No. 518495, N.Y. Sup., App. Div.; 3rd Dept.).

Mealey's PI/Product Liability - New York Justice Denies Pump Maker's Challenge To Insulation Exposure Claims

NEW YORK - A pump maker presents no evidence that anything but asbestos was available to insulate its boilers, and its protests to the contrary are mostly irrelevant, a New York justice held in an opinion posted Feb. 10 (Bryan Hockler v. 3M Co., et al., No. 190235/13, N.Y. Sup., New York Co.).

Mealey's PI/Product Liability - $190M Asbestos Award Must Be Reduced To $30M Or Retried, New York Justice Says

NEW YORK - The evidence largely supports a jury's asbestos verdict, but the five plaintiffs originally awarded a record-setting $190 million verdict must stipulate to just under $30 million in damages or face a new trial on the issue, according to documents filed Feb. 9 in a New York court (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 Litigation Procedure - $190M Asbestos Award Must Be Reduced To $30M Or Retried, New York Justice Says

NEW YORK - The evidence largely supports a jury's asbestos verdict, but the five plaintiffs originally awarded a record-setting $190 million verdict must stipulate to just under $30 million in damages or face a new trial on the issue, according to documents filed Feb. 9 in a New York court (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.).