LexisNexis® Legal Newsroom
Mealey's Antitrust/Unfair Competition - Data Breach Class Action Filed On Behalf Of Yahoo Small Business Clients

SAN JOSE, Calif. - A customer of Yahoo! Inc.'s small business services filed a putative class action complaint against the firm Feb. 8 in California federal court, accusing the internet firm of negligence, breach of contract and unfair competition related to two recently announced data breaches that exposed customers' personally identifiable information (PII) (Brian Neff v. Yahoo! Inc. et al., No. 5:17-cv-00641, N.D. Calif.).

Mealey's Antitrust/Unfair Competition - Judge Refuses Dismissal Of Claims Related To Online Sale Of Hair Products

SAN DIEGO - A California federal judge on Feb. 7 refused to dismiss a hair product company's claims for violation of California's unfair competition law (UCL) and intentional interference with contractual relations, finding that a retailer had notice that it was potentially selling unauthorized products online and that it showed that a valid contract exists (Unite Eurotherapy Inc. v. Walgreens Co., et al., No. 16-cv-01706, S.D. Calif., 2017 U.S. Dist. LEXIS 18116).

Mealey's Litigation Procedure - Data Breach Class Action Filed On Behalf Of Yahoo Small Business Clients

SAN JOSE, Calif. - A customer of Yahoo! Inc.'s small business services filed a putative class action complaint against the firm Feb. 8 in California federal court, accusing the internet firm of negligence, breach of contract and unfair competition related to two recently announced data breaches that exposed customers' personally identifiable information (PII) (Brian Neff v. Yahoo! Inc. et al., No. 5:17-cv-00641, N.D. Calif.).

Mealey's Insurance - Judge Compels Arbitration Of Insurers' Contract-Related Claims In Germany

MOBILE, Ala. - An Alabama federal judge on Feb. 3 granted a French energy company's motion to compel arbitration in Germany of claims asserted by numerous insurers in relation to a failed engine (Outokumpu Stainless USA LLC, et al. v. Converteam SAS, a foreign corporation now known as GE Energy Conversion France SAS, Corp., No. 16-00378, S.D. Ala., 2017 U.S. Dist. LEXIS 15331).

Mealey's Litigation Procedure - Judge Compels Arbitration Of Insurers' Contract-Related Claims In Germany

MOBILE, Ala. - An Alabama federal judge on Feb. 3 granted a French energy company's motion to compel arbitration in Germany of claims asserted by numerous insurers in relation to a failed engine (Outokumpu Stainless USA LLC, et al. v. Converteam SAS, a foreign corporation now known as GE Energy Conversion France SAS, Corp., No. 16-00378, S.D. Ala., 2017 U.S. Dist. LEXIS 15331).

Mealey's Insurance - Time-Barred Breach Of Contract Claim Dismissed In Homeowners Insurance Dispute

BROOKLYN, N.Y. - An insured's breach of contract claim against her homeowners insurance provider was filed outside the contractual and statutory limitations periods and is, thus, time-barred, while her remaining claims for insurance bad faith and declaratory relief are duplicative of the breach of contract claim, a federal judge in New York ruled Feb. 6 in granting the insurer's motion to dismiss (Gelsomnia Maniello v. State Farm Fire and Casualty Co., et al., No. 16-1598, E.D. N.Y., 2017 U.S. Dist. LEXIS 16450).

Mealey's Insurance - Yahoo Sues Insurer Over Coverage Of Email Scanning Suits

SAN JOSE, Calif. - On Jan. 31, Yahoo! Inc. sued its commercial general liability (CGL) provider in California federal court, alleging breach of contract and bad faith related to the insurer's decision not to defend or indemnify the internet firm in four class actions alleging privacy violations in certain email-scanning practices (Yahoo! Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 5:17-cv-00489, N.D. Calif.).

Mealey's Insurance - Failure To Perform Claim Is Not An 'Occurrence' Under Insurance Policy, Judge Says

EAST ST. LOUIS, Ill. - Allegations of an insured's failure to perform do not constitute an "occurrence" triggering coverage under a commercial general liability insurance policy, an Illinois federal judge ruled Jan. 31, agreeing with the insurer that they "are nothing more than claims of disappointed expectations in the performance of a construction contract" (Owners Insurance Co. v. James C. Warren d/b/a Warren Exterior and Remodeling, et al., No. 15-00349, S.D. Ill., 2017 U.S. Dist. LEXIS 13171).

Mealey's Insurance - Judge: Claims Adjuster, Employee Were Properly Joined In Bad Faith Suit

SAN ANTONIO - An insured has shown that a claims adjuster and its employee violated provisions of the Texas Insurance Code and the Texas Deceptive Trade Practices Act (DTPA) and, thus, that those defendants were properly joined in an insurance breach of contract and bad faith lawsuit, a federal judge in Texas ruled Jan. 31 in granting an insured's motion to remand the action to state court (Kris Hospitality LLC, d/b/a Days Inn, v. Tri-State Insurance Co. of Minnesota, et al., No. 16-1229, W.D. Texas, 2017 U.S. Dist. LEXIS 13532).

Mealey's Litigation Procedure - ICSID Orders Turkmenistan To Pay $2.8M To Investor For Breaches Of Treaty

WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on Feb. 1 released its award in an arbitration commenced by a U.K. investor in relation to a contract for the construction of highway bridges and overpasses, ordering Turkmenistan to pay the company $2,892,400 in damages and costs, plus interest (Garanti Koza LLP v. Turkmenistan, No. ARB/11/20, ICSID).

Mealey's Litigation Procedure - Canadian Uranium Supplier May Seek Arbitration For Termination Of Contract

SASKATOON, Saskatchewan - A Canadian uranium producer on Feb. 1 announced that a Tokyo company has issued a termination notice of a contract for the supply of uranium for nuclear power plants and that it will pursue its legal rights and remedies, including possible arbitration.

Mealey's Insurance - Judge Approves Stipulation That Reinsurer Post Bond

NEW YORK - A federal judge in New York on Jan. 30 approved a stipulation and ordered a reinsurer sued by the liquidator of an insolvent insurer for breach of contract to post a security bond with the court (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., No. 16-cv-04874, S.D. N.Y.).

Mealey's Insurance - Judge: Insurer's Delay In Appraisal Process Supports Insureds' Bad Faith Claim

PHILADELPHIA - Although insureds have failed to plead their claim for breach of contract against their insurer, they have shown that the insurer's delay in taking part in a mandatory appraisal process was in bad faith, a federal judge in Pennsylvania ruled Jan. 30 in granting in part and denying in part the insurer's motion to dismiss (Charles Dagit, et al .v. Allstate Property and Casualty Insurance Co., No. 16-3843, E.D. Pa., 2017 U.S. Dist. LEXIS 12124).

Mealey's Insurance - Federal Judge Rules That Bad Faith Claims Meet Removal Guidelines

PITTSBURGH - Remand of an insurance breach of contract and bad faith lawsuit is not proper because the parties are sufficiently diverse and the plaintiffs' bad faith claim seeks damages in excess of the statutory limits, a federal judge in Pennsylvania ruled Jan. 30 in denying the plaintiffs' motion to remand and an insurer's motion to dismiss (Deborah A. Marks, et al. v. Utica First Insurance Co., No. 16-1671, W.D. Pa., 2017 U.S. Dist. LEXIS 12096).

Mealey's IP/Tech - 9th Circuit: Insurer Has Duty To Defend Against Product Disparagement Claims

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 27 affirmed a lower federal court's judgment against an insurer on an insured's breach of contract and bad faith claims, finding that the insurer has a duty to defend its insured against two underlying product disparagement lawsuits brought by competitors (Millennium Laboratories, Inc. v. Darwin Select Insurance Co., No. 15-55227, 9th Cir., 2017 U.S. App. LEXIS 1533).

Mealey's Insurance - Judge: Insured Failed To Prove Repair Costs Were Legally Obligated Damages

NORFOLK, Va. - An insured failed to show that its reimbursement claim against its insurer for the costs of repairing a U.S. Navy generator allegedly damaged by a subcontractor's defective workmanship were for costs it was "legally obligated to pay as damages," a Virginia federal judge ruled Jan. 27, dismissing the case (Electric Motor and Contracting Company Inc. v. Travelers Indemnity Company of America, No. 16-310, E.D. Va.; 2017 U.S. Dist. LEXIS 11889).

Mealey's Insurance - 9th Circuit: Insurer Has Duty To Defend Against Product Disparagement Claims

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 27 affirmed a lower federal court's judgment against an insurer on an insured's breach of contract and bad faith claims, finding that the insurer has a duty to defend its insured against two underlying product disparagement lawsuits brought by competitors (Millennium Laboratories, Inc. v. Darwin Select Insurance Co., No. 15-55227, 9th Cir., 2017 U.S. App. LEXIS 1533).

Mealey's PI/Product Liability - Court Reverses Remand, Finds Judge Imposed Too Strict A Standard

NEW ORLEANS - Requiring production of contracts and other evidence of precise government oversight into the use of asbestos in the military oversteps the boundaries of federal officer removal, a Fifth Circuit U.S. Court of Appeals panel held Jan. 20 (Howard Zeringue v. Allis-Chalmers Corp., et al., No. 16-30058, 5th Cir.; 2017 U.S. App. LEXIS 1077).

Mealey's Toxic Tort/Environmental - Court Reverses Remand, Finds Judge Imposed Too Strict A Standard

NEW ORLEANS - Requiring production of contracts and other evidence of precise government oversight into the use of asbestos in the military oversteps the boundaries of federal officer removal, a Fifth Circuit U.S. Court of Appeals panel held Jan. 20 (Howard Zeringue v. Allis-Chalmers Corp., et al., No. 16-30058, 5th Cir.; 2017 U.S. App. LEXIS 1077).

Mealey's Insurance - 2nd Circuit: Insureds' Delay In Notifying Insurers Of Theft Claim Is Inexcusable

NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 19 found that insureds' delay in notifying their insurers of an alleged burglary was unreasonable and inexcusable, affirming a lower federal court's ruling in favor of the insurers in a breach of contract lawsuit (Nikolai Minasian, et al. v. IDS Property Casualty Insurance Co., et al., No. 16-80, 2nd Cir.).

Mealey's Insurance - Judge Rejects Insurer's Motion To Bifurcate, Stay Insurance Bad Faith Claims

PHILADELPHIA - Bifurcating and staying bad faith claims in an insurance breach of contract and bad faith lawsuit would not be convenient for the parties, prejudice an insurer or economize the litigation, a federal judge in Pennsylvania ruled Jan. 18 in denying the insurer's motion (Eizen Fineburg & McCarthy P.C. v. Ironshore Specialty Insurance Co., No. 16-2461, E.D. Pa.; 2017 U.S. Dist. LEXIS 6985).

Mealey's PI/Product Liability - Genuine Issues Exist As To When Masonry Defects Were Discovered, Judge Finds

BALTIMORE - A federal judge in Maryland on Jan. 17 denied a masonry subcontractor's motion for summary judgment in a breach of contract suit, ruling that genuine issues of fact remain as to when potential defects in the installation of a masonry facade that collapsed in April 2013 were known (Skanska USA Building Inc. v. J.D. Long Masonry Inc., No. 16-0933, D. Md.; 2017 U.S. Dist. LEXIS 5885).

Mealey's Insurance - Plaintiff Not Owed Coverage As Additional Insured, 9th Circuit Affirms

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower federal court's ruling in favor of an insurer in a breach of contract lawsuit seeking coverage for property and business interruption losses (Bita Trading Inc. v. Nationwide Mutual Insurance Co., et al., No. 15-55371, 9th Cir.; 2017 U.S. App. LEXIS 521).

Mealey's Insurance - Insured's Insurance Bad Faith Claim Survives Motion To Dismiss

SCRANTON, Pa. - A federal judge in Pennsylvania on Jan. 12 denied an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that insured has pleaded sufficient evidence to support the claim (Robert Hughes v. State Farm Mutual Automobile Insurance Co., No. 16-2240, M.D. Pa.; 2017 U.S. Dist. LEXIS 4852).

Mealey's Antitrust/Unfair Competition - Judge Finds California Law Provision In Facebook Terms Is Enforceable

SAN FRANCISCO - After finding that a California choice-of-law clause in Facebook Inc.'s terms of service is enforceable, a California federal judge on Jan. 9 granted the social media's company's motion to dismiss claims for violation of the New Jersey Truth-in-Consumer Contract, Warranty, and Notice Act (TCCWNA) (Jose Palomino, et al. v. Facebook Inc., No. 16-cv-04230, N.D. Calif.; 2017 U.S. Dist. LEXIS 2971).