LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Judge Refuses To Reconsider Dismissal Of Guinea Shipping Company's Claims

WASHINGTON, D.C. - A District of Columbia federal judge on Aug. 6 denied a New Guinea shipping company's motion to reconsider the dismissal of its case, which sought to enforce shipping rights under a technical assistance contract, finding that the company failed to submit any new evidence that would warrant reconsideration (Nanko Shipping, USA, et al. v. Aloca Inc., et al., No. 14-1301, D. D.C.; 2015 U.S. Dist. LEXIS 103034).

Mealey's Labor & Employment - 4th Circuit Affirms Rejection Of Verizon Contract Worker's Overtime Claims

RICHMOND, Va. - A former Verizon Corporate Services Group Inc. contract worker failed to show that he was eligible to receive overtime wages or that he was discharged for refusing to work more than 40 hours per week without compensation, a Fourth Circuit U.S. Court of Appeals panel ruled Aug. 5 in a per curiam opinion (Robert Schmidt v. Bartech Group, Inc., et al., No. 14-2321, 4th Cir.; 2015 U.S. App. LEXIS 13663).

Mealey's Insurance - Insured Failed To Show Collapse Was Caused By Decay, Panel Concludes

INDIANAPOLIS - An insured failed to establish a genuine issue of material fact regarding whether the collapse of its roof was caused by decay, an Indiana appeals panel ruled Aug. 6, affirming summary judgment to an insurer on breach of contract and bad faith claims (Greater New Jerusalem Temple of Truth, Inc. v. Sentinel Insurance Company Ltd., No. 49A02-1501-PL-61, Ind. App.; 2015 Ind. App. Unpub. LEXIS 893).

Mealey's Insurance - Panel Affirms Dismissal Of Suit Seeking Coverage For Energy Drink Inventory Theft

ATLANTA - The 11th Circuit U.S. Court of Appeals on Aug. 6 affirmed a lower federal court's dismissal of an insured's breach of contract and bad faith suit seeking damages for missing inventory of 82,510 bottles of 5-Hour Energy drinks, holding that employee dishonesty coverage is barred by the policy's inventory shortage exclusion (W. L. Petrey Wholesale Co., Inc. v. Great American Ins. Co., No. 15-10629, 11th Cir.; 2015 U.S. App. LEXIS 13738).

Mealey's Insurance - Judge Substantially Denies Summary Judgment Motions In Bad Faith Suit

OKLAHOMA CITY - A federal judge in Oklahoma on Aug. 4 substantially denied motions for summary judgment in a breach of contract and insurance bad faith lawsuit, ruling that summary judgment is warranted only with regard to the bad faith claim (William C. Phelps v. State Farm Mutual Automobile Insurance Co., No. 14-208, W.D. Okla.; 2015 U.S. Dist. LEXIS 101651).

Mealey's IP/Tech - 6th Circuit Reverses Lanham Act Holdings In Cloned Products Case

CINCINNATI - Although an Ohio federal judge properly deemed two counterclaim defendants liable for breach of contract, the same defendants were erroneously deemed liable for misappropriation of trade secrets and violations of the Lanham Act, the Sixth Circuit U.S. Court of Appeals ruled Aug. 5 in a dispute involving cloned products (Kehoe Component Sales Inc. et al. v. Best Lighting Products Inc., No. 14-3347, 6th Cir.; 2015 U.S. App. LEXIS 13638).

Mealey's Labor & Employment - 11th Circuit Finds Cruise Line Claims Must Be Arbitrated In The Philippines

ATLANTA - The 11th Circuit U.S. Court of Appeals on Aug. 5 affirmed a district court's decision granting a cruise line's motion to compel arbitration of a seaman's claims in the Republic of the Philippines, finding that his injury-related claims were governed by his employment contract (Emmanuel Navarette v. Silversea Cruises Ltd., et al., No. 14-13324, 11th Cir.; 2015 U.S. App. LEXIS 13634).

Mealey's Litigation Procedure - 11th Circuit Finds Cruise Line Claims Must Be Arbitrated In The Philippines

ATLANTA - The 11th Circuit U.S. Court of Appeals on Aug. 5 affirmed a district court's decision granting a cruise line's motion to compel arbitration of a seaman's claims in the Republic of the Philippines, finding that his injury-related claims were governed by his employment contract (Emmanuel Navarette v. Silversea Cruises Ltd., et al., No. 14-13324, 11th Cir.; 2015 U.S. App. LEXIS 13634).

Mealey's Insurance - Agent: Statute Of Limitations Bars Payment Claim By Reinsurer's Assignee

NEW YORK - A reinsurance pool agent and manager told a federal court in New York on July 27 that the assignee of an insolvent reinsurer's reinsurance accounts receivables' claim for payment is barred by New York's breach of contract statute of limitations (NEM Re Receivables LLC v. Fortress Re Inc., No. 15-cv-03875, S.D. N.Y.).

Mealey's Insurance - Tech Firm Sues Insurer For Not Reimbursing Data Breach Losses

ATLANTA - Asserting that losses that it experienced from a 2014 hacking incident of its payment-card reloading system were a result of computer fraud, a payment-systems firm on July 28 filed a complaint for breach of contract and bad faith against its insurer in Georgia federal court for failure to provide coverage for those losses (InComm Holdings Inc., et al. v. Great American Insurance Co., No. 1:15-cv-02671, N.D. Ga.).

Mealey's Insurance - Breach Of Contract Suit Over Hurricane Ike Claim Was Timely Filed, Magistrate Says

GALVESTON, Texas - A federal flood insurer's denial of an insured's supplemental Hurricane Ike claim following its review of an adjuster's estimate and requests did not trigger the one-year limitations period, a Texas federal magistrate judge ruled July 28, finding that the insured's breach of contract lawsuit was timely filed (Savina Rocha Fernandez v. Fidelity National Property and Casualty Insurance Co., No. 10-460, S.D. Texas; 2015 U.S. Dist. LEXIS 98030).

Mealey's IP/Tech - Yahoo Seeks Sanctions For Firm's Repeated Disclosure Of Confidential Information

DALLAS - A promotional firm's failure to seal a summary judgment motion, which contained confidential information, is an example of its "pattern of blatantly violating confidentiality agreements," Yahoo Inc. said in a July 22 motion for sanctions in a contract and trade secrets lawsuit related to an online basketball tournament contest (SCA Promotions Inc. v. Yahoo! Inc., No. 3:14-cv-00957, N.D. Texas).

Mealey's Litigation Procedure - Yahoo Seeks Sanctions For Firm's Repeated Disclosure Of Confidential Information

DALLAS - A promotional firm's failure to seal a summary judgment motion, which contained confidential information, is an example of its "pattern of blatantly violating confidentiality agreements," Yahoo Inc. said in a July 22 motion for sanctions in a contract and trade secrets lawsuit related to an online basketball tournament contest (SCA Promotions Inc. v. Yahoo! Inc., No. 3:14-cv-00957, N.D. Texas).

Mealey's Insurance - Judge: Insured Failed To File Insurance Claim Within 2-Year Limitation Period

SAN DIEGO - Dismissal of an insured's breach of contract and insurance bad faith lawsuit is proper, a California appellate panel held July 20, because an insured failed to file its claim for coverage within the two-year contractual limitation on the right to sue (Thee Sombrero Inc. v. Markel International Insurance Co. Ltd, et al., No. E060705, Calif. App., 4th Dist., Div. 2; 2015 Cal. App. Unpub. LEXIS 5112).

Mealey's PI/Product Liability - Judge: Insurer Has Duty To Defend Produce Supplier In Product Liability Dispute

ROCHESTER, N.Y. - Because there is no evidence that a produce supplier intended or expected its apples to be contaminated and the apples were incorporated into an underlying claimant's baby food, the resulting damage to the baby food arose out of an occurrence and, therefore, an insurer has a duty to defend the produce supplier against the underlying breach of contract and warranty lawsuit, a New York federal judge held July 20 (Thruway Produce Inc. v. Massachusetts Bay Insurance Co., No. 11-6337, W.D. N.Y.; 2015 U.S. Dist. LEXIS 94846).

Mealey's Insurance - Judge: Insurer Has Duty To Defend Produce Supplier In Product Liability Dispute

ROCHESTER, N.Y. - Because there is no evidence that a produce supplier intended or expected its apples to be contaminated and the apples were incorporated into an underlying claimant's baby food, the resulting damage to the baby food arose out of an occurrence and, therefore, an insurer has a duty to defend the produce supplier against the underlying breach of contract and warranty lawsuit, a New York federal judge held July 20 (Thruway Produce Inc. v. Massachusetts Bay Insurance Co., No. 11-6337, W.D. N.Y.; 2015 U.S. Dist. LEXIS 94846).

Mealey's PI/Product Liability - Appeals Court Upholds Ruling In Favor Of Defendant Subcontractor

JACKSON, Tenn. - A Tennessee appeals panel on July 15 affirmed a trial court's decision in favor of a defendant contractor, ruling that the judge did not err when finding that he did not breach the terms of a construction contract when not completing the project on time (Anil Construction Inc. v. Patrick D. McCollum, et al., No. W2014-01979-COA-R3-CV, Tenn. App.; 2015 Tenn App. LEXIS 554).

Mealey's Toxic Tort/Environmental - Driller: Fracking Company 'Purposely' Delaying Groundwater Liability Case

COLUMBUS, Ohio - A drilling company engaged in a contract dispute with a hydraulic fracturing company related to their respective liabilities in an underlying groundwater contamination lawsuit on July 17 filed a brief in Ohio federal court, arguing that the fracking company has been "purposely and unnecessarily delaying and needlessly increasing the cost of litigation" (Warren Drilling Company v. Equitable Production Company, No. 12-00425, S.D. Ohio).

Mealey's PI/Product Liability - Panel: Estate Failed To Allege Negligence, Breach Of Contract Claims Against Broker

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on July 15 held that the estate of a man who was killed when an inflatable slide fell on top of him at a Kids Fun Day event at a Cleveland Indians baseball game failed to establish negligence and breach of contract claims against an insurance broker (Kimberly Johnson, as executrix of the estate of Douglas Johnson, deceased v. Doodson Insurance Brokerage of Texas LLC d/b/a CSI Special Insurance Group d/b/a CSI Insurance Group, No.14-1379, 6th Cir.; 2015 U.S. App. LEXIS 12150).

Mealey's Litigation Procedure - Federal Judge Confirms $9.9 Million Award For Japanese Shipping Company

NEW YORK - A New York federal judge on July 14 granted a petition to confirm a $9,933,900 award issued in favor of a Japanese company in a dispute over a shipping contract, finding nothing that would warrant vacating the award (NS Tinited Kailin Kaisha, Ltd. v. Cogent Fibre Inc., No. 15-1784, S.D. N.Y.).

Mealey's Insurance - Panel: Estate Failed To Allege Negligence, Breach Of Contract Claims Against Broker

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on July 15 held that the estate of a man who was killed when an inflatable slide fell on top of him at a Kids Fun Day event at a Cleveland Indians baseball game failed to establish negligence and breach of contract claims against an insurance broker (Kimberly Johnson, as executrix of the estate of Douglas Johnson, deceased v. Doodson Insurance Brokerage of Texas LLC d/b/a CSI Special Insurance Group d/b/a CSI Insurance Group, No.14-1379, 6th Cir.; 2015 U.S. App. LEXIS 12150).

Mealey's Toxic Tort/Environmental - Taxation Of Costs Not Proper In Tainted Groundwater Case, Fracking Company Says

COLUMBUS, Ohio - A hydraulic fracturing company engaged in a contract dispute with a drilling company related to their respective liabilities in an underlying groundwater contamination lawsuit on July 15 filed a brief in Ohio federal court, contending that the drilling company is not entitled to a taxation of costs (Warren Drilling Company v. Equitable Production Company, No. 12-00425, S.D. Ohio).

Mealey's Banking & Finance - 9th Circuit Finds Freddie Mac Had No Duty To Pay Insurance Premiums

SEATTLE - After finding that a lender did not assume a duty to pay insurance premiums into an escrow when it purchased a loan from a bankrupt lender, the Ninth Circuit U.S. Court of Appeals on July 14 affirmed dismissal of a borrower's breach of contract and fiduciary duty claims (Joel Johnson v. Federal Home Loan Mortgage, et al., No. 13-35596, 9th Cir.; 2015 U.S. App. LEXIS 12098).

Mealey's Insurance - Judge Dismisses Insured's Suit Over Coverage For Settlement Of Defect Claims

MINNEAPOLIS - A Minnesota federal judge on July 13 dismissed an insured's breach of contract lawsuit against its insurer regarding coverage for an underlying settlement of a construction defects case because there is currently pending a similar lawsuit involving the same parties and claims (Kuepers Construction Inc. and Interlachen Propertyowners Association Inc. v. State Auto Insurance Co., No. 15-449, D. Minn.; 2015 U.S. Dist. LEXIS 90423).

Mealey's Insurance - Judge: Insurer Did Not Act In Bad Faith In Failing To Pay On Claim

OKLAHOMA CITY - Summary judgment in an insurance breach of contract and bad faith lawsuit is proper, a federal judge in Oklahoma ruled July 10, because an insured has failed to show that her insurer failed to comply with the terms of her homeowners insurance policy (Lyndee Harrison v. State Farm Fire and Casualty Co., No. 14-1219, W.D. Okla.; 2015 U.S. Dist. LEXIS 89721).