LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Pennsylvania Man Files Class Complaint Against SEPTA Over Job Applicant Checks

PHILADELPHIA - The Southeastern Pennsylvania Transportation Authority (SEPTA) routinely violates the Fair Credit Reporting Act (FCRA) and the Pennsylvania Criminal History Record Information Act (CHRIA) by obtaining and using job applicants' records in a manner that violates federal and state law, a Philadelphia man who was an unsuccessful job applicant alleges in his class complaint filed against SEPTA in Pennsylvania federal court on April 27 (Frank Long, et al. v. Southeastern Pennsylvania Transportation Authority, No. 16-1991, E.D. Pa.).

Mealey's Litigation Procedure - Judge Says That Because Arbitration Award Was Not Vacated, It Must Be Confirmed

PHILADELPHIA - A federal judge in Pennsylvania on April 26 granted a platinum recovery company's motion to confirm an arbitration award issued in London regarding certain advances and loans the platinum recovery company made to a spent automotive catalytic converter collector (Impala Platinum Holdings Limited, et al. v. A-1 Specialized Services and Supplies, Inc., et al., No.; 13-cv-02930, E.D. Pa.).

Mealey's Bankruptcy - Pittsburgh Corning's Plan Takes Effect; Trust Funding Expected Soon

PITTSBURGH - The reorganization plan of debtor Pittsburgh Corning Corp. (PCC), which includes a $3 billion trust to pay asbestos personal injury claims, became effective April 27, more than 16 years after the company filed for Chapter 11 protection in Pennsylvania federal bankruptcy court (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

Mealey's Insurance - Judge: Pennsylvania Citizen Was Not Fraudulently Joined To Case

PHILADELPHIA - A federal judge in Pennsylvania on April 21 remanded a suit regarding the alleged overpayment of reinsurance premiums, holding that an employee of a reinsurance broker who is a citizen of Pennsylvania was not fraudulently joined to the suit (Boomerang Recoveries, LLC v. Guy Carpenter & Company LLC, et al., No. 16-cv-00222, E.D. Pa.; 2016 U.S. Dist. LEXIS 53795).

Mealey's Insurance - Pennsylvania Federal Judge Says Insurer Did Not Act In Bad Faith In Handling Claim

PHILADELPHIA - A Pennsylvania federal judge on April 25 granted an insurer's motion for partial summary judgment after determining that an insured seeking coverage for water damages failed to prove that the insurer acted in bad faith in investigating and handling her claim (Lisa Whalen v. State Farm Fire and Casualty Co., No. 15-2200, E.D. Pa.; 2016 U.S. Dist. LEXIS 54628).

Mealey's Litigation Procedure - Remand Denied In Class Suit Accusing Beauty School Of Overcharging Customers

PHILADELPHIA - A Pennsylvania federal judge on April 18 denied a renewed motion to remand a class complaint accusing Empire Beauty School salons in Pennsylvania of violating state law by overcharging customers for cosmetology services provided by its students, finding that the plaintiff's evidence of citizenship fell short of his burden (Russell Jones v. EEG, Inc., et al., No. 15-5018, E.D. Pa.; 2016 U.S. Dist. LEXIS 51379).

Mealey's Litigation Procedure - Cosby's Attorney Must Submit Communications With D.A. In Accuser's Defamation Suit

PHILADELPHIA - In an April 18 order addressing several discovery and related motions in a defamation suit brought by one of Bill Cosby's alleged sexual assault victims against a former district attorney (D.A.), a Pennsylvania federal judge denied in part Cosby's attorney's motion to quash a discovery subpoena seeking communications between the attorney and D.A. (Andrea Constand v. Bruce Castor, No. 2:15-cv-05799, E.D. Pa.).

Mealey's Labor & Employment - Federal Judge: Claimant Was 'Stranger' To Relationship Between Insurer, Insured

PHILADELPHIA - A Pennsylvania federal judge on April 18 dismissed a bad faith lawsuit against a private company directors, officers and employees liability insurer, finding that the insurer had no duty to the plaintiff to settle an underlying discrimination lawsuit he brought against its insured (Steve Leboon v. Zurich American Insurance Co., et al., No. 15-05904, E.D. Pa.; 2016 U.S. Dist. LEXIS 51381).

Mealey's Insurance - Federal Judge: Claimant Was 'Stranger' To Relationship Between Insurer, Insured

PHILADELPHIA - A Pennsylvania federal judge on April 18 dismissed a bad faith lawsuit against a private company directors, officers and employees liability insurer, finding that the insurer had no duty to the plaintiff to settle an underlying discrimination lawsuit he brought against its insured (Steve Leboon v. Zurich American Insurance Co., et al., No. 15-05904, E.D. Pa.; 2016 U.S. Dist. LEXIS 51381).

Mealey's Insurance - Judge: Insured Pleaded Unreasonable Denial Of Benefit Payment In Bad Faith Suit

SCRANTON, Pa. - An insured has properly pleaded that his insurer unreasonably denied payment of benefits pursuant to an automobile insurance policy, a federal judge in Pennsylvania ruled April 18 in denying the insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit (Justin Linko v. Nationwide Property & Casualty Insurance, No. 15-2066, M.D. Pa.; 2016 U.S. Dist. LEXIS 51602).

Mealey's Insurance - Judge Continues Stay Of Arbitration Confirmation Case Against Insolvent Insurer

HARRISBURG, Pa. - A federal judge in Pennsylvania on April 13 granted in part an insurance agency's motion to lift the stay of its case requesting confirmation of an arbitration award concerning an arbitration with an insolvent insurer (Arrowhead General Insurance Agency, Inc. v. Lincoln General Insurance Company, No. 15-cv-01726, M.D. Pa.; 2016 U.S. Dist. LEXIS 49448).

Mealey's Insurance - Pennsylvania Panel Affirms Ruling Denying Woman's Motion For Post-Conviction Relief

PHILADELPHIA - A Pennsylvania Superior Court panel on April 11 affirmed a trial court judge's decision to deny a woman's sixth petition for post-conviction relief from a sentence imposed after she was found guilty of insurance fraud, holding that the judge did not abuse his discretion when finding that the woman was provided adequate assistance of counsel (Commonwealth v. Bianca Aura Bucano, No. 2292 EDA 2015, Pa. Super.; 2016 Pa. Super. Unpub. LEXIS 1161).

Mealey's IP/Tech - Reverse Domain Hijacking Claim Tossed By Pennsylvania Federal Judge

PHILADELPHIA - Assertions that the American Diabetes Association (ADA) committed reverse domain name hijacking by placing a "registrar lock" on the www.americandiabetes.com domain with registrar GoDaddy were rejected April 6 by a Pennsylvania federal judge (American Diabetes Association v. Robert L. Friskney, et al., No. 13-3720, E.D. Pa.; 2016 U.S. Dist. LEXIS 46523).

Mealey's Insurance - Premium Investigator Says It Does Not Need Leave To File Amended Complaint

PHILADELPHIA - A reinsurance premium recovery company told a federal court in Pennsylvania on April 4 that current Federal Rules of Civil Procedure do not require it to ask for leave to file an amended complaint, contrary to contentions by a reinsurance broker, its alleged controlling owner and two of the reinsurance broker's employees (Boomerang Recoveries, LLC v. Guy Carpenter & Company LLC, et al., No. 16-cv-00222, E.D. Pa.).

Mealey's Litigation Procedure - Summary Judgment Granted In Nearly All Zoloft Birth Defect MDL Cases

PHILADELPHIA - A Pennsylvania federal judge on April 5 granted summary judgment in all but 23 Zoloft birth defect multidistrict litigation cases after ruling that the plaintiffs have not produced admissible general causation evidence despite repeated attempts (In Re: Zoloft [Sertraline Hydrochloride] Products Liability Litigation, MDL Docket No. 2342, No. 12-md-2341, E.D. Pa.; 2016 U.S. Dist. LEXIS 46062).

Mealey's PI/Product Liability - Paxil Birth Defect Trial Ends In Nonsuit On Prescribing Doctor's Testimony

PHILADELPHIA - A Pennsylvania state court judge on April 4 granted a compulsory nonsuit motion in a Paxil birth defect trial because the prescribing physician testified that a different warning would not have changed his decision to prescribe the antidepressant (Braden Rader, et al. v. SmithKlineBeecham Corp., et al., No. 110903672, Pa. Comm. Pls., Philadelphia Co.).

Mealey's PI/Product Liability - Summary Judgment Granted In Nearly All Zoloft Birth Defect MDL Cases

PHILADELPHIA - A Pennsylvania federal judge on April 5 granted summary judgment in all but 23 Zoloft birth defect multidistrict litigation cases after ruling that the plaintiffs have not produced admissible general causation evidence despite repeated attempts (In Re: Zoloft [Sertraline Hydrochloride] Products Liability Litigation, MDL Docket No. 2342, No. 12-md-2341, E.D. Pa.; 2016 U.S. Dist. LEXIS 46062).

Mealey's Insurance - Judge Transfers Asbestos-Related Reinsurance Dispute

CHICAGO - A federal judge in Illinois on March 30 ordered the transfer of a $4.4 million asbestos-related reinsurance dispute to a Pennsylvania federal court, noting that the Pennsylvania court is a more proper venue than Illinois (R&Q Reinsurance Company v. St. Paul Fire & Marine Insurance Company, No. 15-cv-07784, N.D. Ill.; 2016 U.S. Dist. LEXIS 42489).

Mealey's PI/Product Liability - Pennsylvania Federal Judge: Failure-To-Warn, Defective Product Claims Cannot Stand

PHILADELPHIA - A Pennsylvania federal judge on March 30 determined that a plaintiff failed to prove that the manufacturer of a table saw did not adequately warn consumers of the product's dangers or that the table saw used by the plaintiff was defective (Kenneth Wright v. Ryobi Technologies Inc., et al., No. 15-1100, E.D. Pa.; 2016 U.S. Dist. LEXIS 42003).

Mealey's Insurance - Judge: Insurer In Better Shoes To Bear Risk Of Co-Insured's Potential Default

SCRANTON, Pa. - A Pennsylvania federal judge on March 30 held that whether one insured reimburses all or none of the $50,000 it was ordered to pay its insurer for the advancement of defense costs in an underlying criminal proceeding, the insurer has a duty to pay a second insured up to the $100,000 limit of liability pursuant to a public officials liability and employment practices liability insurance policy (Darwin National Assurance Co. v. Luzerne County Transportation Authority, et al., No. 14-2417, M.D. Pa.; 2016 U.S. Dist. LEXIS 41733).

Mealey's Insurance - Judge Refuses To Dismiss Reimbursement Suit Between Insurers Over Water Damage

PHILADELPHIA - A general contractor and a developer are not necessary parties to a reimbursement lawsuit between an insurer who paid the developer's water damage claims and the contractor's insurers allegedly responsible for the costs, a Pennsylvania federal judge ruled March 30, declining to dismiss the case (Philadelphia Indemnity Insurance Co. v. Admiral Insurance Co. and The Ohio Casualty Insurance Co., No. 15-3486, E.D. Pa.; 2016 U.S. Dist. LEXIS 42593).

Mealey's Litigation Procedure - Judge Denies Investors' Attempt To Opt Out Of Securities Suit Settlement Class

PHILADELPHIA - A federal judge in Pennsylvania on March 28 denied motions filed by investors in a securities class action lawsuit to grant them an extension to opt out of a settlement class, ruling that they were provided with "sufficient notice and due process protections" but failed to meet the opt-out deadline (In re DVI Inc. Securities Litigation, No. 03-5336, E.D. Pa.; 2016 U.S. Dist. LEXIS 40473).

Mealey's Insurance - Judge Dismisses Insurer's Equitable Subrogation, Unjust Enrichment Claims

SAN JOSE, Calif. - A California federal judge on March 28 dismissed an insurer's counterclaims for equitable subrogation and unjust enrichment against two insurers for failure to join a mutual insured in a lawsuit seeking reimbursement for the defense of an underlying construction defects case (St. Paul Fire & Marine Insurance Co. v. Insurance Company of the State of Pennsylvania, No. 15-02744, N.D. Calif.; 2016 U.S. Dist. LEXIS 41659).

Mealey's Securities/D&O Liability - Judge Denies Investors' Attempt To Opt Out Of Securities Suit Settlement Class

PHILADELPHIA - A federal judge in Pennsylvania on March 28 denied motions filed by investors in a securities class action lawsuit to grant them an extension to opt out of a settlement class, ruling that they were provided with "sufficient notice and due process protections" but failed to meet the opt-out deadline (In re DVI Inc. Securities Litigation, No. 03-5336, E.D. Pa.; 2016 U.S. Dist. LEXIS 40473).

Mealey's Litigation Procedure - Cosby Accuser Opposes Attorney's Motion To Quash Subpoena In Defamation Suit

PHILADELPHIA - In a March 28 brief opposing a motion to quash by Bill Cosby's attorney, a one-time accuser of the comedian argued in Pennsylvania federal court that documents and information sought from the attorney are relevant to her present defamation lawsuit against a Pennsylvania district attorney (D.A.) and to responding to Cosby's pending motion to intervene in the present suit (Andrea Constand v. Bruce Castor, No. 2:15-cv-05799, E.D. Pa.).