LexisNexis® Legal Newsroom
Mealey's Toxic Tort/Environmental - Justice Finds Testimony Regarding Asbestos-Containing TV Heat Shields Sufficient

NEW YORK - The totality of a man's testimony sufficiently identifies potential exposure to asbestos from television heat shields to overcome summary judgment, a New York justice held in an opinion posted March 13 (Eddie Howard Bailen and Rena Norene Ash-Bailen v. Air & Liquid Systems Corp., et al., No. 190318/12, N.Y. Sup., New York Co.; 2014 N.Y. Misc. LEXIS 980).

Mealey's Toxic Tort/Environmental - Months Of Alleged Exposure Keep Asbestos Action In New York, Justice Says

NEW YORK - No evidence suggests that a South Carolina couple's action alleging asbestos exposure in Michigan more properly belongs in either of those two jurisdictions, given claims that the man suffered months of exposure in New York, a New York justice said in an opinion posted March 13 (Ralph Horvath and Loretta Horvath v. ACF Industries LLC, et al., No. 190220/13, N.Y. Sup., New York Co.; 2014 N.Y. Misc. LEXIS 983).

Mealey's Insurance - Insurers Say Reinsurance Arbitration Demand Letters Are Invalid

NEW YORK - A group of insurers told a New York state court on March 13 that two reinsurers have issued arbitration demands that are in violation of certain reinsurance agreement arbitration clauses (American Home Assurance Company, et al. v. Transatlantic Reinsurance Company, et al., No. 650811/2014, N.Y. Sup., New York Co.).

Mealey's IP/Tech - Fraud, Breach Of Contract Class Action Against Jobs Website Partly Dismissed

NEW YORK - A putative class action against a job-matching website partly survived a dismissal motion, a New York federal judge ruled March 12, finding claims for breach of contract and a violation of New York General Business Law adequately pleaded (Barbara Ward, et al. v. TheLadders.com Inc., No. 1:13-cv-01605, S.D. N.Y.; 2014 U.S. Dist. LEXIS 32617).

Mealey's Banking & Finance - FDIC: Banks Colluded To Manipulate Libor

NEW YORK - The Federal Deposit Insurance Corp., suing on behalf of 38 failed banks, filed a complaint in a New York federal court on March 14 against 19 banks, including Bank of America Corp. and JPMorgan Chase & Co. (Chase), alleging that they manipulated the London Interbank Offered Rate (Libor) in order to illegally boost their profits (Federal Deposit Insurance Corp., et al. v. Bank of America Corp., et al., No. 14-1757, S.D. N.Y.).

Mealey's Banking & Finance - Financial Institutions Sued Over Alleged Gold Futures Antitrust Scheme

NEW YORK - A purchaser and seller of COMEX gold futures and options sued five financial institutions in New York federal court on March 12, alleging that the defendants engaged in a scheme to manipulate the price of gold and gold derivatives contracts in violation of the Sherman Act (Peter DeNigris v. Bank of Nova Scotia, et al., No. 14-1638, S.D. N.Y.).

Mealey's Labor & Employment - McDonald's Workers File 7 Class Complaints Alleging They Were Robbed Of Wages

Fast food workers in California, Michigan and New York filed multiple class complaints on March 12 and 13 in federal and state courts accusing McDonald's Corp. of stealing workers' wages in various ways, including forcing them to work off the clock, shaving hours off their time cards and not paying them overtime (Tasha Beard, et al. v. McDonald's Corporation, et al., No. 14-1664, E.D. N.Y.; Jason Hughes, et al. v. McDonald's Corp., et al., No. RG14717085, Calif. Super., Alameda Co..; Montel Pullen, et al. v. McDonald's Corporation, et al., No. 14-11081, E.D. Mich.; Guadalupe Salazar, et al. v. McDonald's Corp., et al., No. RG14717081, Calif. Super., Alameda Co.; Maria Sanchez, et al. v. McDonald's Restaurants of California, Inc., et al., No. BC499888, Calif. Super., Los Angeles Co.; Shamia Wilson, et al. v. McDonald's Corporation, et al., No. 14-11082, E.D. Mich.; Stephanie Ochoa v. McDonald's Corp., No. RG14717102, Calif. Super., Alameda Co.).

Mealey's Bankruptcy - Hawker Beechcraft Seeks OK To Modify Pension Claims In Its Reorganization Plan

NEW YORK - Bankrupt aircraft company Hawker Beechcraft on March 11 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York supporting its motion to modify excess pension claims and estimate unliquidated excess pension claims (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Insurance - N.Y. Panel Remands Asbestos-Related Reinsurance Dispute To Lower Court

NEW YORK - A New York appeals court panel on March 11 reversed a lower court decision in an asbestos-related reinsurance dispute and remanded the question of timeliness of certain claims to the lower court (In re ROM Reinsurance Management Company, Inc., et al. v. Continental Insurance Company, Inc., as successor to Harbor Insurance Company, No. 11809, 654480/12, N.Y. Sup., App. Div., 1st Dept.; 2014 N.Y. App. Div. LEXIS 1509).

Mealey's Litigation Procedure - McDonald's Workers File 7 Class Complaints Alleging They Were Robbed Of Wages

Fast food workers in California, Michigan and New York filed multiple class complaints on March 12 and 13 in federal and state courts accusing McDonald's Corp. of stealing workers' wages in various ways, including forcing them to work off the clock, shaving hours off their time cards and not paying them overtime (Tasha Beard, et al. v. McDonald's Corporation, et al., No. 14-1664, E.D. N.Y.; Jason Hughes, et al. v. McDonald's Corp., et al., No. RG14717085, Calif. Super., Alameda Co..; Montel Pullen, et al. v. McDonald's Corporation, et al., No. 14-11081, E.D. Mich.; Guadalupe Salazar, et al. v. McDonald's Corp., et al., No. RG14717081, Calif. Super., Alameda Co.; Maria Sanchez, et al. v. McDonald's Restaurants of California, Inc., et al., No. BC499888, Calif. Super., Los Angeles Co.; Shamia Wilson, et al. v. McDonald's Corporation, et al., No. 14-11082, E.D. Mich.; Stephanie Ochoa v. McDonald's Corp., No. RG14717102, Calif. Super., Alameda Co.).

Mealey's IP/Tech - Insurer Has Duty To Defend Against Trade Dress Lawsuit, 2nd Circuit Affirms

NEW YORK - The Second Circuit U.S. Court of Appeals on March 11 affirmed a lower court's ruling that a commercial general liability insurer has a duty to defend its insured against underlying claims that it misappropriated trade secrets to create and sell lighting fixtures that mimicked the appearance of those sold by the underlying claimant (Bridge Metal Industries LLC, et al. v. Travelers Indemnity Co., No. 11-4228, 2nd Cir.; 2014 U.S. App. LEXIS 4463).

Mealey's Insurance - Insurer Has Duty To Defend Against Trade Dress Lawsuit, 2nd Circuit Affirms

NEW YORK - The Second Circuit U.S. Court of Appeals on March 11 affirmed a lower court's ruling that a commercial general liability insurer has a duty to defend its insured against underlying claims that it misappropriated trade secrets to create and sell lighting fixtures that mimicked the appearance of those sold by the underlying claimant (Bridge Metal Industries LLC, et al. v. Travelers Indemnity Co., No. 11-4228, 2nd Cir.; 2014 U.S. App. LEXIS 4463).

Mealey's Bankruptcy - Creditor: Kodak's Proposed Reduction Of Its Claim Not Supported By Evidence

NEW YORK - A creditor in the Chapter 11 bankruptcy of Eastman Kodak Co. on March 12 filed a brief objecting to the company's proposed reduction of its claim, arguing that Kodak submitted no evidence to support its proposal (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's PI/Product Liability - Wilmington Trust: KV Discovery Should Be Compelled To Pay $704,728.70 In Fees

NEW YORK - Wilmington Trust NA, the senior indenture trustee of bankrupt pharmaceutical company KV Discovery Solutions Inc., on March 11 moved in the U.S. Bankruptcy Court for the Southern District of New York to compel KV to pay $704,728.70 in administrative expenses (In Re: KV Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Bankruptcy - Lightsquared Seeks Bonuses For Employees If New Funding Goal Is Achieved

NEW YORK - Bankrupt Lightsquared Inc. on March 11 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that its key employee incentive plan (KEIP) should be modified to provide cash bonuses to key employees if the company successfully receives new funding and achieves a successful change of control in the company under its plan of reorganization (In Re: Lightsquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Bankruptcy - Bankrupt Metro Affiliates Seeks Release Of $2.89M To Pay Prepetition Debt

NEW YORK - Bankrupt Metro Affiliates on March 11 moved in the U.S. Bankruptcy Court for the Southern District of New York for authority to release $2,895,041 from an escrow account to pay secured claims against the bankruptcy estate related to prepetition mortgage loans (In Re: Metro Affiliates, No. 13-13591, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Bankruptcy - Wilmington Trust: KV Discovery Should Be Compelled To Pay $704,728.70 In Fees

NEW YORK - Wilmington Trust NA, the senior indenture trustee of bankrupt pharmaceutical company KV Discovery Solutions Inc., on March 11 moved in the U.S. Bankruptcy Court for the Southern District of New York to compel KV to pay $704,728.70 in administrative expenses (In Re: KV Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's PI/Product Liability - 2nd Circuit Says Golf Cart Accident Reconstruction Expert Properly Barred

NEW YORK - A Second Circuit U.S. Court of Appeals panel on March 10 affirmed exclusion of expert testimony that a golf cart that overturned and paralyzed a teen was defectively designed (Matthew and James Valente v. Textron, et al., No. 13-1456-cv, 2nd Cir.; 2014 U.S. App. LEXIS 4380).`

Mealey's Insurance - Judge: Insureds Failed To Submit Timely Proof Of Loss For Supplemental Claim

CENTRAL ISLIP, N.Y. - Insureds have failed to provide a timely proof of loss for their $204,000 additional claim for damage to the foundation and floor system of their premises that sustained flood damage caused by Hurricane Irene, a New York federal judge ruled March 6, granting a federal flood insurer's motion for summary judgment (Christine Zuk, et al. v. Allstate Insurance Co., No. 12-CV-4186 $(SJF$)$(AKT$), E.D. N.Y.; 2014 U.S. Dist. LEXIS 30005).

Mealey's Bankruptcy - U.S. Trustee: Lightsquared's Plan Does Not Comply With Bankruptcy Code

NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of Lightsquared Inc. on March 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the company's plan of reorganization, contending that it contains releases for certain parties that do not comply with the Bankruptcy Code (In Re: Lightsquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Insurance - Insurer Cannot Assert Subrogation Claim, New York Appeals Panel Says

ALBANY, N.Y. - An insurer has no right to assert a subrogation claim against a New York utility company for property damages caused by a natural gas explosion because the complaint did not include the property damage claim paid by the insurer, the Third Department New York Supreme Court Appellate Division said March 6 (Kenneth E. Peterson et al., v. New York State Electric and Gas Corporation et al., No. 516423, N.Y. Sup., App. Div., 3rd Dept.).

Mealey's Litigation Procedure - 2nd Circuit Says Golf Cart Accident Reconstruction Expert Was Properly Barred

NEW YORK - A Second Circuit U.S. Court of Appeals panel on March 10 affirmed exclusion of expert testimony that a golf cart that overturned and paralyzed a teen was defectively designed (Matthew and James Valente v. Textron, et al., No. 13-1456-cv, 2nd Cir.; 2014 U.S. App. LEXIS 4380).

Mealey's Bankruptcy - Mall Pizzeria Sbarro LLC Files For 2nd Chapter 11 Bankruptcy Since 2011

NEW YORK - Sbarro LLC, the parent company of a chain of pizzerias based primarily in shopping malls, on March 10 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York - its second Chapter 11 bankruptcy filing since 2011 - despite listing debts of $165,234,168 and assets of $175,446,687 (In Re: Sbarro LLC, No. 14-10557, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Insurance - New York Appeals Court: Prompt-Pay Law Provides Private Right Of Action

BROOKLYN, N.Y. - In a matter of first impression, a New York appeals court on March 5 affirmed that the state's prompt-pay law affords claimants a private right of action to recover payment for health care services provided based on a violation of the law (Maimonides Medical Center v. First United American Life Insurance Co., No. 2012-03138, N.Y. Sup., App. Div., 2nd Dept.; 2014 N.Y. App. Div. LEXIS 1409).

Mealey's Health Law - New York Appeals Court: Prompt-Pay Law Provides Private Right Of Action

BROOKLYN, N.Y. - In a matter of first impression, a New York appeals court on March 5 affirmed that the state's prompt-pay law affords claimants a private right of action to recover payment for health care services provided based on a violation of the law (Maimonides Medical Center v. First United American Life Insurance Co., No. 2012-03138, N.Y. Sup., App. Div., 2nd Dept.; 2014 N.Y. App. Div. LEXIS 1409).