LexisNexis® Legal Newsroom
Mealey's Insurance - Coverage Triggered By Exposure To Asbestos, New York Justice Determines

NEW YORK - Coverage for underlying asbestos claims arising out of the construction of the original World Trade Center towers is triggered if the underlying claims allege that the exposure occurred during the construction of the towers even if the disease did not develop until years later, a New York County Supreme Court justice said Nov. 29, noting that the policy at issue provides coverage for any injury arising out of the construction project (American Home Assurance Co. v. The Port Authority of New York and New Jersey, et al., No. No. 651096/2012, N.Y. Sup., New York Co.).

Mealey's Insurance - Panel: No Indemnity Obligation Owed To Target In Relation To Personal Injury Suit

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Nov. 29 held that an indemnification arrangement involving Target Corp. and hamper suppliers is not an "insured contract" pursuant to an insurance policy issued to one of the suppliers, affirming a lower court's grant of summary judgment in favor of the insurer in a coverage dispute over an alleged eye injury caused by a pop-up laundry hamper that was purchased at Target in 2010 (Northern Insurance Company of New York v. Target Corporation, et al., No. 16-2222, 6th Cir., 2017 U.S. App. LEXIS 24156).

Mealey's Litigation Procedure - New York Federal Judge Grants Plan Participants' Motion For Class Certification

NEW YORK - A New York federal judge on Nov. 27 granted a motion for class certification filed by plaintiffs alleging that a retirement plan's administrative and investment committees breached their fiduciary duties by selecting company-affiliated mutual funds as plan investments rather than other better-performing mutual funds after determining that the plaintiffs established the requirements necessary for class certification (Marya J. Leber v. Citigroup, Inc., et al., No. 07-9329, S.D. N.Y., 2017 U.S. Dist. LEXIS 194293).

Mealey's Insurance - Panel Revives Contract Claim Against Broker For Failing To Notify Of Liquidation

ALBANY, N.Y. - An insured adequately asserted a third-party breach of contract claim against an insurance broker based on the broker's failure to learn of an insurer's liquidation proceeding, a New York appeals panel ruled Nov. 22, finding that a trial justice erred in dismissing this claim (Mary Jean Muncil v. Widmir Inn Restaurant Corp. v. Carter-MGM Insurance Agency LLC, et al., No. 524856, N.Y. Sup., App. Div., 3rd Dept., 2017 N.Y. App. Div. LEXIS 8276).

Mealey's Insurance - Issues Of Fact Exist On Insurer's Liability, New York Appellate Division Says

NEW YORK - The First Department New York Supreme Court Appellate Division on Nov. 28 reversed a trial court's denial of a motion to dismiss an insurer's claim seeking a declaration that no coverage is owed to its insured for an underlying contribution claim in an environmental contamination dispute because issues in the underlying suit must be litigated before the insurer's claim can be decided (National Union Fire Insurance Company of Pittsburgh, Pa., v. Compaction Systems Corporation of New Jersey, et al., No. 5066, 107838/09, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 8352).

Mealey's Labor & Employment - New York Federal Judge Grants Plan Participants' Motion For Class Certification

NEW YORK - A New York federal judge on Nov. 27 granted a motion for class certification filed by plaintiffs alleging that a retirement plan's administrative and investment committees breached their fiduciary duties by selecting company-affiliated mutual funds as plan investments rather than other better-performing mutual funds after determining that the plaintiffs established the requirements necessary for class certification (Marya J. Leber v. Citigroup, Inc., et al., No. 07-9329, S.D. N.Y., 2017 U.S. Dist. LEXIS 194293).

Mealey's Banking & Finance - 9th Circuit Affirms Dismissal Of Foreclosure Claims, Finds No Error

PASADENA, Calif. - After finding that property owners failed to comply with Nevada housing law in relation to a quit claim deed for a foreclosed on property, the Ninth Circuit U.S. Court of Appeals on Nov. 22 affirmed the dismissal of their complaint for wrongful foreclosure (Wayne A. Seare, et al. v. Bank of New York Mellon, et al., No. 17-15916, 9th Cir., 2017 U.S. App. LEXIS 23722).

Mealey's Insurance - New Mexico Federal Judge Says Bifurcation Of Bad Faith Counterclaims Is Warranted

ALBUQUERQUE, N.M. - A New Mexico federal judge on Nov. 22 granted an insurer's motion to bifurcate and stay discovery of extracontractual claims because the interests of judicial economy and judicial efficiency favor bifurcation as the bad faith counterclaim alleged against the life insurer is dependent upon the outcome of the insurer's declaratory judgment claim (New York Life Insurance Co. v. Roger Saul, et al., No. 17-621, D. N.M., 2017 U.S. Dist. LEXIS 193210).

Mealey's Litigation Procedure - 2nd Circuit Finds Video Game Players Lack Standing In Biometrics Suit

NEW YORK - Mostly affirming a trial court's dismissal ruling, a Second Circuit U.S. Court of Appeals panel on Nov. 21 held that the lead plaintiffs in a class action alleging violation of an Illinois biometrics statute failed to establish any concrete harm from a software firm's use of their facial scans in basketball video games, thus defeating their standing under Article III of the U.S. Constitution (Ricardo Vigil, et al. v. Take-Two Interactive Software Inc., No. 17-303, 2nd Cir., 2017 U.S. App. LEXIS 23446).

Mealey's IP/Tech - Federal Magistrate Recommends Arbitration Of Barnes & Noble Data Privacy Class Suit

NEW YORK - The arbitration provision in Barnes & Noble Booksellers Inc.'s (B&N) terms of use (TOU) on its website is not unconscionable and therefore must be enforced in a class complaint filed by a customer who claims that information about her online purchase of a DVD was shared with Facebook, a New York federal magistrate judge opined in a Nov. 20 report and recommendation (Melina Bernardino v. Barnes & Noble Booksellers, Inc., No. 17-4570, S.D. N.Y., 2017 U.S. Dist. LEXIS 192814).

Mealey's Litigation Procedure - Federal Magistrate Recommends Arbitration Of Barnes & Noble Data Privacy Class Suit

NEW YORK - The arbitration provision in Barnes & Noble Booksellers Inc.'s (B&N) terms of use (TOU) on its website is not unconscionable and therefore must be enforced in a class complaint filed by a customer who claims that information about her online purchase of a DVD was shared with Facebook, a New York federal magistrate judge opined in a Nov. 20 report and recommendation (Melina Bernardino v. Barnes & Noble Booksellers, Inc., No. 17-4570, S.D. N.Y., 2017 U.S. Dist. LEXIS 192814).

Mealey's Litigation Procedure - Rehearing Sought Of 2nd Circuit Ruling In Barclays Securities Lawsuit

NEW YORK - Rehearing of a Second Circuit U.S. Court of Appeals panel's ruling affirming a federal district court's grant of class certification in a securities lawsuit is necessary because the panel's ruling is in conflict with U.S. Supreme Court and federal circuit court precedent, defendants argue in a Nov. 20 petition for rehearing and rehearing en banc (Joseph Waggoner, et al. v. Barclays PLC, et al., No. 16-1912, 2nd Cir.).

Mealey's Litigation Procedure - Groundwater Class Action Should Stay In Federal Court, Magistrate Judge Says

CENTRAL ISLIP, N.Y. - A magistrate judge in New York federal court on Nov. 20 issued a report and recommendation denying remand of a groundwater contamination class action to state court, determining that the plaintiffs failed to demonstrate that a sufficient number of class members are citizens of the state of New York (Isaac Green, et al. v. The 3M Company, et al., No. 17-2566, E.D. N.Y.; 2017 U.S. Dist. LEXIS 192795).

Mealey's Toxic Tort/Environmental - Groundwater Class Action Should Stay In Federal Court, Magistrate Judge Says

CENTRAL ISLIP, N.Y. - A magistrate judge in New York federal court on Nov. 20 issued a report and recommendation denying remand of a groundwater contamination class action to state court, determining that the plaintiffs failed to demonstrate that a sufficient number of class members are citizens of the state of New York (Isaac Green, et al. v. The 3M Company, et al., No. 17-2566, E.D. N.Y.; 2017 U.S. Dist. LEXIS 192795).

Mealey's Insurance - Judge Strikes Third-Party Witness Testimony In Insurer, Reinsurer's Coverage Dispute

UTICA, N.Y. - Before trial in a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 21 granted an insurer's request to strike a reinsurer's submission of deposition testimony in another case by a third-party witness as inadmissible hearsay (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-00853, N.D. N.Y.).

Mealey's Securities/D&O Liability - Rehearing Sought Of 2nd Circuit Ruling In Barclays Securities Lawsuit

NEW YORK - Rehearing of a Second Circuit U.S. Court of Appeals panel's ruling affirming a federal district court's grant of class certification in a securities lawsuit is necessary because the panel's ruling is in conflict with U.S. Supreme Court and federal circuit court precedent, defendants argue in a Nov. 20 petition for rehearing and rehearing en banc (Joseph Waggoner, et al. v. Barclays PLC, et al., No. 16-1912, 2nd Cir.).

Mealey's Toxic Tort/Environmental - Judge Resolves Motions To Exclude Testimony, Evidence In Reinsurer, Insurer Dispute

UTICA, N.Y. - In a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 16 addressed a number of motions filed by an insurer and a reinsurer to preclude expert testimony and certain arguments from trial (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-00853, N.D. N.Y., 2017 U.S. Dist. LEXIS 189911).

Mealey's Litigation Procedure - Judge Resolves Motions To Exclude Testimony, Evidence In Reinsurer, Insurer Dispute

UTICA, N.Y. - In a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 16 addressed a number of motions filed by an insurer and a reinsurer to preclude expert testimony and certain arguments from trial (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-00853, N.D. N.Y., 2017 U.S. Dist. LEXIS 189911).

Mealey's Insurance - New York High Court Reverses Barring Of Derivative Claims By Reinsurer's Shareholder

NEW YORK - The New York Court of Appeals determined Nov. 20 that a lower court erred in its application of a rule under Cayman law barring a reinsurer's shareholder from bringing derivative claims against the reinsurer, its directors and its affiliates (Paul Davis v. Scottish Re Group Ltd., et al., No. 111, N.Y. App., 2017 N.Y. LEXIS 3277).

Mealey's Insurance - Judge Resolves Motions To Exclude Testimony, Evidence In Reinsurer, Insurer Dispute

UTICA, N.Y. - In a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 16 addressed a number of motions filed by an insurer and a reinsurer to preclude expert testimony and certain arguments from trial (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-00853, N.D. N.Y., 2017 U.S. Dist. LEXIS 189911).

Mealey's Toxic Tort/Environmental - New York Investigation Reveals Housing Authority Falsified Lead-Hazard Reports

NEW YORK - The New York Department of Investigation (DOI) on Nov. 15 issued a report indicating that the New York City Housing Authority (NYCHA) failed to conduct mandatory safety inspections for lead paint during a four-year period beginning in 2013 but falsified reports to the U.S. Department of Housing and Urban Development stating that the NYCHA was in compliance with federal laws pertaining to those inspections.

Mealey's Litigation Procedure - Judge: Investors Pleaded Scienter In Making Federal Securities Law Claims

NEW YORK - Shareholders in a securities class action lawsuit against car maker Fiat Chrysler Automobiles N.V. (Chrysler), certain of its executive officers and others have properly pleaded scienter and falsity in making their federal securities law claims by showing that the defendants concealed certain emissions-based issues with several of Chrysler's automobiles, a federal judge in New York ruled Nov. 13 in denying the defendants' motion to dismiss (Victor Pirnik v. Fiat Chrysler Automobiles N.V., et al., No. 15-7199, S.D. N.Y.; 2017 U.S. Dist. LEXIS 187264).

Mealey's Antitrust/Unfair Competition - Judge Remands UCL, HBOR Claims To California Court, Finds Trustee Is Not Immune

LOS ANGELES - After finding that a trustee named in an action filed by a borrower was not a sham defendant, a California federal judge on Nov. 13 remanded her causes of action for violation of California's unfair competition law (UCL), wrongful foreclosure and other claims to a state court (Nancy M. Horner v. The Bank of New York Mellon, et al., No. 17-1489, C.D. Calif., 2017 U.S. Dist. LEXIS 187362).

Mealey's Banking & Finance - Judge Remands UCL, HBOR Claims To California Court, Finds Trustee Is Not Immune

LOS ANGELES - After finding that a trustee named in an action filed by a borrower was not a sham defendant, a California federal judge on Nov. 13 remanded her causes of action for violation of California's unfair competition law (UCL), wrongful foreclosure and other claims to a state court (Nancy M. Horner v. The Bank of New York Mellon, et al., No. 17-1489, C.D. Calif., 2017 U.S. Dist. LEXIS 187362).

Mealey's Litigation Procedure - Federal Judge Vacates Confirmation Of $146M ICSID Award Against Spain

NEW YORK - After recent appeals court rulings in which panels reversed district court judgments granting ex parte petitions for failure to comply with the Foreign Sovereign Immunities Act of 1976 (FSIA), a New York federal judge on Nov. 13 reversed his previous ruling confirming a $146,079,996 award issued against the Kingdom of Spain (Eiser Infrastructure, et al. v. Kingdom of Spain, No. 17-3808, S.D. N.Y.).