LexisNexis® Legal Newsroom
Mealey's Labor & Employment - 2nd Circuit Remands Medical Reimbursement Claims To District Court

NEW YORK - A federal judge erred by finding that a health care provider settled its claims under the Employee Retirement Income Security Act for services rendered with a self-funded employee benefit plan based on the plan's "one-sided representation," the Second Circuit U.S. Court of Appeals ruled Jan. 21 in an unpublished order (Montefiore Medical Center v. Teamsters Local 272, et al., No. 13-4221-cv, 2nd Cir.; 2015 U.S. App. LEXIS 844).

Mealey's Banking & Finance - Fast Issue Exists As To Whether Employee Had 'Manifest Intent,' Panel Says

NEW YORK - A New York appeals panel on Jan. 22 found that there is a fact issue regarding whether an employee's diversion of checks that were required to be deposited with his employer to a condominium developer manifests an intent to harm the employer within the meaning of a fidelity bond (Keybank National Association, et al. v National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 13799, 104125/10, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 615).

Mealey's Labor & Employment - Limited Discovery Allowed In Disability Suit, New York Federal Magistrate Rules

NEW YORK - A New York federal magistrate judge on Jan. 20 granted a disability claimant's motion to compel discovery on the limited issue of determining whether procedural irregularities or conflicts affected the insurer's denial of a long term disability claim (Liyan He v. Cigna Life Insurance Company of New York, No. 14-2180, S.D. N.Y.; 2015 U.S. Dist. LEXIS 6652).

Mealey's Insurance - Limited Discovery Allowed In Disability Suit, New York Federal Magistrate Rules

NEW YORK - A New York federal magistrate judge on Jan. 20 granted a disability claimant's motion to compel discovery on the limited issue of determining whether procedural irregularities or conflicts affected the insurer's denial of a long-term disability claim (Liyan He v. Cigna Life Insurance Company of New York, No. 14-2180, S.D. N.Y.; 2015 U.S. Dist. LEXIS 6652).

Mealey's Insurance - Fast Issue Exists As To Whether Employee Had 'Manifest Intent,' Panel Says

NEW YORK - A New York appeals panel on Jan. 22 found that there is a fact issue regarding whether an employee's diversion of checks that were required to be deposited with his employer to a condominium developer manifests an intent to harm the employer within the meaning of a fidelity bond (Keybank National Association, et al. v National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 13799, 104125/10, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 615).

Mealey's Toxic Tort/Environmental - New York Court Finds Questions Of Fact Exist About Mold Liability

ALBANY, N.Y. - A New York appeals court on Jan. 22 affirmed a trial court's ruling, finding that questions of fact exist as to an alternative dispute resolution representative's ruling that a subcontractor was liable for the development of mold at a construction site (David Staviski, doing business as Chemung Valley Acoustical and Partition, v. Christa Construction Inc., et al., No. 518879, N.Y. Sup, App. Div.; 3rd Dept.; 2015 N.Y. App. Div. LEXIS 597).

Mealey's Securities/D&O Liability - Securities Class Action Settlement Amounts Down In 2014, Report Shows

NEW YORK - The average amount of securities class action settlements dropped 38 to 61 percent in 2014, "depending on which types of class actions are considered," according to an annual report released Jan. 20 by NERA Economic Consulting.

Mealey's PI/Product Liability - Justice Finds Insufficient Evidence Contractor Controlled Worksite

NEW YORK - While a contractor retained the power to enlarge the work done at a worksite, it never exercised general control over the site or specified the manner of work, a New York justice held in an opinion posted Jan. 16 (Margaret Donovan, et al. v. ACF Industries LLC, et al., No. 190110/13, N.Y. Sup., New York Co.).

Mealey's Labor & Employment - Justice Finds Insufficient Evidence Contractor Controlled Worksite

NEW YORK - While a contractor retained the power to enlarge the work done at a worksite, it never exercised general control over the site or specified the manner of work, a New York justice held in an opinion posted Jan. 16 (Margaret Donovan, et al. v. ACF Industries LLC, et al., No. 190110/13, N.Y. Sup., New York Co.).

Mealey's Litigation Procedure - Magistrate Judge: Information Regarding Nonparty Reinsureds Is Not Relevant

SYRACUSE, N.Y. - A federal magistrate judge in New York on Jan. 20 denied in part an insurer's motion to compel discovery, holding that documents pertaining to other companies its reinsurer dealt with are not discoverable (Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 13-cv-01178, N.D. N.Y.).

Mealey's PI/Product Liability - Justice Denies Reargument In Successor-Liability Case Arising From WTC Exposures

NEW YORK - The presence of other contractors at a worksite, an improperly submitted sur-reply and vague references to the sale of liabilities do not warrant reargument of a decision finding a company liable for asbestos exposures during construction of the World Trade Center (WTC), a New York justice held in an opinion posted Jan. 16 (James Augustus Proctor and Joy C. Proctor v. Alcoa Inc., et al., No. 190040/13, N.Y. Sup., New York Co.).

Mealey's Toxic Tort/Environmental - Justice Denies Reargument In Successor-Liability Case Arising From WTC Exposures

NEW YORK - The presence of other contractors at a worksite, an improperly submitted sur-reply and vague references to the sale of liabilities do not warrant reargument of a decision finding a company liable for asbestos exposures during construction of the World Trade Center (WTC), a New York justice held in an opinion posted Jan. 16 (James Augustus Proctor and Joy C. Proctor v. Alcoa Inc., et al., No. 190040/13, N.Y. Sup., New York Co.).

Mealey's Toxic Tort/Environmental - Justice Finds Insufficient Evidence Contractor Controlled Worksite

NEW YORK - While a contractor retained the power to enlarge the work done at a worksite, it never exercised general control over the site or specified the manner of work, a New York justice held in an opinion posted Jan. 16 (Margaret Donovan, et al. v. ACF Industries LLC, et al., No. 190110/13, N.Y. Sup., New York Co.).

Mealey's Insurance - Judge: Flood Policy Expired Before Insureds Incurred Superstorm Sandy Damages

CENTRAL ISLIP, N.Y. - A New York federal judge on Jan. 17 held that insureds' standard flood insurance policy (SFIP) expired before their residence was damaged as a result of Superstorm Sandy, granting the insurer's motion for summary judgment in a lawsuit seeking $86,100 in flood-related damages (Stephen C. Fletcher, et al. v. The Standard Fire Insurance Co., No. 13-cv-5463, E.D. N.Y.; 2015 U.S. Dist. LEXIS 5989).

Mealey's Insurance - Magistrate Judge: Information Regarding Nonparty Reinsureds Is Not Relevant

SYRACUSE, N.Y. - A federal magistrate judge in New York on Jan. 20 denied in part an insurer's motion to compel discovery, holding that documents pertaining to other companies its reinsurer dealt with are not discoverable (Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 13-cv-01178, N.D. N.Y.).

Mealey's Insurance - Insurer Files For Judgment By Default Against Alleged Reinsurer

NEW YORK - An insurer on Jan. 14 filed an affidavit for judgment by default in a federal court in New York against its claimed reinsurer, which has not responded to the court regarding a petition to confirm an arbitration award (Employers Insurance Company of Wausau v. Continental casualty Company, No. 14-cv-09192, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - Lago Agrio Attorney: Chevron Must Show Standing; No Burden To Establish Mootness

NEW YORK - The attorney representing a group of Ecuadorian residents who won an $18.5 billion judgment against Chevron Corp. for personal injuries caused by the company's oil operations in the Lago Agrio region of Ecuador filed a second reply brief in the Second Circuit U.S. Court of Appeals on Jan. 13 in his appeal of a fraud judgment against him, arguing that it is Chevron's burden to show it has standing to seek its requested relief for the alleged fraud and that the attorney does not have the burden to establish mootness (Chevron Corporation v. Steven R. Donziger, et al., No. 14-826, 2nd Cir.).

Mealey's IP/Tech - Travel Site Operator Says No Jurisdiction Exists In United Airlines Suit

CHICAGO - A New York man sued by United Airlines Inc. and a travel website for his website advertising "hidden-city ticketing" information for airline flights moved to dismiss on Jan. 13, asserting that no jurisdiction exists over him in Illinois federal court (United Airlines Inc., et al. v. Aktarer Zaman, No. 1:14-cv-09214, N.D. Ill.).

Mealey's Labor & Employment - 2nd Circuit Reinstates Police Lieutenant's Protected Speech Suit

NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 14 reinstated a complaint filed by a former Suffolk County, N.Y., police lieutenant who alleges that he was retaliated against for speaking to members of the press, speech that he claims was protected (Raymond Smith v. County of Suffolk, et al., No. 13-1230, 2nd Cir.; 2015 U.S. App. LEXIS 600).

Mealey's Litigation Procedure - 2nd Circuit: Lead Plaintiffs Failed To Plead Scienter In Securities Class Action

NEW YORK - A federal district court did not err in dismissing all claims in a securities class action lawsuit against Morgan Stanley and others over alleged misstatements made in connection with its exposure to the subprime mortgage market because lead plaintiffs failed to properly plead scienter and loss causation, a Second Circuit U.S. Court of Appeals panel ruled Jan. 12 (Fjarde AP-Fonden, et al. v. Morgan Stanley, et al., No. 13-0627, 2nd Cir.; 2015 U.S. App. LEXIS 424).

Mealey's Securities/D&O Liability - 2nd Circuit: Lead Plaintiffs Failed To Plead Scienter In Securities Class Action

NEW YORK - A federal district court did not err in dismissing all claims in a securities class action lawsuit against Morgan Stanley and others over alleged misstatements made in connection with its exposure to the subprime mortgage market because lead plaintiffs failed to properly plead scienter and loss causation, a Second Circuit U.S. Court of Appeals panel ruled Jan. 12 (Fjarde AP-Fonden, et al. v. Morgan Stanley, et al., No. 13-0627, 2nd Cir.; 2015 U.S. App. LEXIS 424).

Mealey's Litigation Procedure - Settlement Reached With Bear Stearns, Others In Securities Class Action

NEW YORK - Shareholders and defendants in a securities class action lawsuit regarding Bear Stearns' sale of more than $17 billion in mortgage-backed securities have agreed to settle their claims, according to a letter sent to a New York federal judge by the shareholders' counsel (In re Bear Stearns Mortgage Pass-Through Certificates Litigation, No. 08-8093, S.D. N.Y.).

Mealey's Insurance - Insured Failed To Provide Timely Notice Of Contamination Claim, Appellate Panel Says

NEW YORK - The First Department New York Supreme Court Appellate Division on Jan. 8 affirmed that an insurer owes no coverage for the investigation and cleanup of five former manufactured gas plants in New York (Travelers Indemnity Co. v. Orange and Rockland Utilities Inc., et al., No. 603601/02, N.Y. Sup., App. Div., 1st Dept.).

Mealey's Securities/D&O Liability - Settlement Reached With Bear Stearns, Others In Securities Class Action

NEW YORK - Shareholders and defendants in a securities class action lawsuit regarding Bear Stearns' sale of more than $17 billion in mortgage-backed securities have agreed to settle their claims, according to a letter sent to a New York federal judge by the shareholders' counsel (In re Bear Stearns Mortgage Pass-Through Certificates Litigation, No. 08-8093, S.D. N.Y.).

Mealey's PI/Product Liability - Court: Safety Mask Companies Escape New York Asbestos Action

NEW YORK - A widow has not adequately pleaded that her husband's asbestos-related disease and death arose from a failure to warn about defects in two safety mask companies' products, a New York appellate court ruled Jan. 8 (Malgorzata Wiacek, et al. v. 3M Co., et al., No. 190096/12 13434 13433, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 232).