LexisNexis® Legal Newsroom
Mealey's Insurance - Insured's Breach Of Contract Is Barred By 2-Year Statute Of Limitations, Judge Says

DENVER - A two-year statute of limitations precludes an insured's breach of contract claim against its insurer for denied coverage for property damage to commercial properties, a Colorado federal judge ruled Feb. 13 (The Pinewood Townhome Association Inc. v. Auto-Owners Insurance Co., No. 15-01604, D. Colo.; 2017 U.S. Dist. LEXIS 19999).

Mealey's Labor & Employment - Data Breach Class Claims Against Premera Mostly Survive Dismissal Motion

PORTLAND, Ore. - Although an Oregon federal judge on Feb. 9 found that some fraud and contract-based claims related to a 2014 data breach experienced by Premera Blue Cross merited dismissal, he held that the plaintiffs cured some previous deficiencies and concluded that their claims are not preempted by the Employee Retirement Income Security Act of 1974 (ERISA) (In Re: Premera Blue Cross Customer Data Security Breach Litigation, No. 3:15-md-02633, D. Ore., 2017 U.S. Dist. LEXIS 18322).

Mealey's Insurance - Judge: Breach Of Contract, Bad Faith Claims Not Filed Within Limitations Period

SACRAMENTO, Calif. - An insured's claims for insurance breach of contract and bad faith against his insurer were not timely filed within the contractual limitations period and the insured failed to show that the insurer engaged in any outrageous conduct to support a claim for intentional infliction of emotional distress in failing to provide coverage under a comprehensive long-term care policy, a federal judge in California ruled Feb. 9 in granting the insurer's motion to dismiss (Donald Mann v. Mutual of Omaha, et al., No. 16-2560, E.D. Calif., 2017 U.S. Dist. LEXIS 18732).

Mealey's Litigation Procedure - Judge Bars Testimony On Education Lead-Generation Industry's Customs, Practices

TAMPA, Fla. - A lawyer is not qualified to opine on the educational lead-generation industry's customs and practices because the lawyer failed to explain why her experience is a sufficient basis for her opinion and how her experience is reliably applied to the facts of a trade secrets and breach of contract case, a Florida federal judge ruled Feb. 13, excluding the testimony (Connectus LLC v. Ampush Media Inc., et al., No. 15-2778, M.D. Fla., 2017 U.S. Dist. LEXIS 19829).

Mealey's Labor & Employment - Judge: ERISA Preempts Provider's Contract Claim Against Insurer

GREENSBORO, N.C. - A substance abuse provider's claims that an insurer failed to pay for medically necessary treatments are preempted by ERISA or fail to state a claim, a federal judge in North Carolina held Feb. 9 (Bobby P. Kearney, M.D., PLLC, v. Blue Cross and Blue Shield of North Carolina, et al., No. 16-191, M.D. N.C., 2017 U.S. Dist. LEXIS 18428).

Mealey's Litigation Procedure - Data Breach Class Claims Against Premera Mostly Survive Dismissal Motion

PORTLAND, Ore. - Although an Oregon federal judge on Feb. 9 found that some fraud and contract-based claims related to a 2014 data breach experienced by Premera Blue Cross merited dismissal, he held that the plaintiffs cured some previous deficiencies and concluded that their claims are not preempted by the Employee Retirement Income Security Act of 1974 (ERISA) (In Re: Premera Blue Cross Customer Data Security Breach Litigation, No. 3:15-md-02633, D. Ore., 2017 U.S. Dist. LEXIS 18322).

Mealey's Insurance - Washington Federal Judge: Insurers Breached Duty To Defend In Environmental Suit

SEATTLE - A Washington federal judge on Feb. 10 granted an insured's motion for summary judgment after determining that three insurers breached their contracts of insurance by refusing to defend the insured against state and federal agency claims arising out of environmental contamination because the claims are potentially covered under the policies at issue (King County v. Travelers Indemnity Co., et al., No. C14-1957, W.D. Wash., 2017 U.S. Dist. LEXIS 19397).

Mealey's Litigation Procedure - Judge: Investors' Commodities Exchange Act Claims Don't Meet Morrison Standard

NEW YORK - A federal judge in New York on Feb. 8 dismissed an amended complaint filed by investors who alleged that a financial services firm and its CEO engaged in a scheme to manipulate prices at which certain futures contracts traded on the Chicago Mercantile Exchange Global Platform (CME Globex), ruling that the investors failed to show that the alleged transactions took place on an American exchange as required pursuant to U.S. Supreme Court precedent in Morrison v. National Australia Bank, Ltd. (Myun-Uk Choi, et al. v. Tower Research Capital LLC, et al., No. 14-9912, S.D. N.Y., 2017 U.S. Dist. LEXIS 18174).

Mealey's Securities/D&O Liability - Judge: Investors' Commodities Exchange Act Claims Don't Meet Morrison Standard

NEW YORK - A federal judge in New York on Feb. 8 dismissed an amended complaint filed by investors who alleged that a financial services firm and its CEO engaged in a scheme to manipulate prices at which certain futures contracts traded on the Chicago Mercantile Exchange Global Platform (CME Globex), ruling that the investors failed to show that the alleged transactions took place on an American exchange as required pursuant to U.S. Supreme Court precedent in Morrison v. National Australia Bank, Ltd. (Myun-Uk Choi, et al. v. Tower Research Capital LLC, et al., No. 14-9912, S.D. N.Y., 2017 U.S. Dist. LEXIS 18174).

Mealey's IP/Tech - 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 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).