LexisNexis® Legal Newsroom
Mealey's Insurance - Judge Orders Reinsurer, Insurer To Arbitrate $1.3M Breach Of Contract Suit

MONTGOMERY, Ala. - An Alabama federal judge on Sept. 7 ordered a nonprofit public insurer and a reinsurer to arbitrate a $1.3 million breach of contract lawsuit based upon an arbitration clause in a reinsurance agreement (Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 16-00948, M.D. Ala., 2017 U.S. Dist. LEXIS 144748).

Mealey's Insurance - Judge Trims Some Of GEICO's Claims From Fraudulent Billing Suit

BOSTON - A federal judge in Massachusetts on Aug. 16 trimmed some claims from a lawsuit brought by the Government Employees Insurance Co. (GEICO) against a chiropractic firm and its owners, finding that while the insurer's claims were timely and not barred by Massachusetts' Strategic Litigation Against Public Participation (anti-SLAPP) statute, the company's claims for civil conspiracy, money had and received, breach of contract and intentional interference with advantageous business relationships were not sufficiently pleaded (Government Employees Insurance Co. v. Barron Chiropractic & Rehabilitation, P.C., et al., No. 16-cv-10642-ADB, D. Mass., 2017 U.S. Dist. LEXIS 130278).

Mealey's Labor & Employment - Former School Employee's Age Discrimination Suit Survives Judgment Motion

ORLANDO, Fla. - A woman who alleges that her age was the motivating factor in a decision to not renew her employment contract has established a prima facie case of age discrimination, a Florida federal judge ruled June 12, finding that genuine issues of fact precluded granting her former employer's motion for summary judgment (Carmel Saxon v. Seminole County Public Schools, No. 6:15-cv-01854, M.D. Fla., 2017 U.S. Dist. LEXIS 89663).

Mealey's Insurance - Panel Reverses Ruling In Insurer's Favor In Errors, Omissions Liability Dispute

HARTFORD, Conn. - A Connecticut appeals court found that an insurer's duty to defend was not barred by a public entity errors and omission liability insurance policy's contract exclusion because an underlying complaint left open the possibility that a negligent misrepresentation claim against the insured did not arise out of a contract, reversing and remanding a lower court in an opinion to be officially released Dec. 6 (Town of Monroe v. Discover Property and Casualty Insurance Co., No. AC 38332, Conn. App.; 2016 Conn. App. LEXIS 443).

Mealey's Antitrust/Unfair Competition - California Federal Judge Transfers Contract Breach Class Suit To Virginia

SAN FRANCISCO - A California federal judge on Oct. 25 agreed to transfer a breach of contract class complaint to Virginia, finding that the contract's forum-selection clause "does not contravene any anti-waiver provision of California's UCL [unfair competition law] or the strong public policy of California" (Run Them Sweet, LLC v. CPA Global Limited, et al., No. 16-3662, N.D. Calif.; 2016 U.S. Dist. LEXIS 147803).

Mealey's Litigation Procedure - California Federal Judge Transfers Contract Breach Class Suit To Virginia

SAN FRANCISCO - A California federal judge on Oct. 25 agreed to transfer a breach of contract class complaint to Virginia, finding that the contract's forum-selection clause "does not contravene any anti-waiver provision of California's UCL [unfair competition law] or the strong public policy of California" (Run Them Sweet, LLC v. CPA Global Limited, et al., No. 16-3662, N.D. Calif.; 2016 U.S. Dist. LEXIS 147803).

Mealey's Insurance - Insurer's Negligence Claims Not Barred By Subrogation Clause, Federal Judge Says

ALLENTOWN, Pa. - A subrogation waiver clause included in a heating oil agreement sent to an insured by the heating oil company contravenes public policy because the average consumer does not have the chance to negotiate the provisions in residential heating oil contracts, a Pennsylvania federal judge said Oct. 5 in finding that an insurer is not barred from asserting negligence claims, as the subrogee of its insured, against the heating oil company (State Farm Fire & Casualty Co., et al. v. Petroleum Heat & Power Co. Inc., et al., No. 13-6732, E.D. Pa.; 2016 U.S. Dist. LEXIS 138479).

Mealey's Toxic Tort/Environmental - 4th Circuit: Corps Of Engineers Did Not Err When Issuing Mining Permit

RICHMOND, Va. - A Fourth Circuit U.S. Court of Appeals on July 8 affirmed the decision of the U.S. Army Corps of Engineers to issue a permit under the Clean Water Act (CWA) to Raven Crest Contracting LLC allowing the company to discharge fill materials, holding that the Corps did not have to consider the effects of surface mining on public health when issuing the permit (Ohio Valley Environmental Coalition, et al. v. U.S. Army Corps of Engineers, No. 14-2129, 4th Cir.; 2016 U.S. App. LEXIS 12598).

Mealey's Toxic Tort/Environmental - D.C. Circuit Panel Affirms Dismissal In Cigarette Sales Suit

WASHINGTON, D.C. - A District of Columbia Circuit U.S. Court of Appeals panel on June 21 affirmed a lower court order dismissing a complaint alleging that Philip Morris USA Inc. violated the terms of a contract by overcharging military exchanges for cigarettes because the transactions "creating an inference of fraud were publicly disclosed" (United States, Ex Rel. Anthony Oliver v. Philip Morris USA Inc., No. 15-7049, D.C. Cir.).

Mealey's PI/Product Liability - Jury Awards $4.1M To Mesothelioma Victim's Widow; Wire Maker 5 Percent Liable

ST LOUIS - A Missouri jury awarded $4.1 million to the widow of man who contracted mesothelioma after asbestos exposure as an electrician, holding the lone remaining defendant 5 percent liable, sources told Mealey Publications Feb. 1 (Jean Urbach v. The Okonite Co., No. 1122-CC-10636, Mo. Cir., St. Louis Co.).

Mealey's Toxic Tort/Environmental - Jury Awards $4.1M To Mesothelioma Victim's Widow; Wire Maker 5 Percent Liable

ST LOUIS - A Missouri jury awarded $4.1 million to the widow of man who contracted mesothelioma after asbestos exposure as an electrician, holding the lone remaining defendant 5 percent liable, sources told Mealey Publications Feb. 1 (Jean Urbach v. The Okonite Co., No. 1122-CC-10636, Mo. Cir., St. Louis Co.).

Mealey's PI/Product Liability - Tennessee Jury Hands Honeywell Defense Verdict In Friction-Exposure Asbestos Case

CHATTANOOGA, Tenn. - A Tennessee jury on Sept. 17 returned a defense verdict in a case alleging exposure to asbestos during contract work at a Honeywell International Inc. predecessor's brake-manufacturing facility, sources told Mealey Publications (Nancy Harriss, et al. v. Honeywell International Inc., No. 14C771, Tenn. Cir., Hamilton Co.).

Mealey's Toxic Tort/Environmental - Tennessee Jury Hands Honeywell Defense Verdict In Friction-Exposure Asbestos Case

CHATTANOOGA, Tenn. - A Tennessee jury on Sept. 17 returned a defense verdict in a case alleging exposure to asbestos during contract work at a Honeywell International Inc. predecessor's brake-manufacturing facility, sources told Mealey Publications (Nancy Harriss, et al. v. Honeywell International Inc., No. 14C771, Tenn. Cir., Hamilton Co.).

Mealey's PI/Product Liability - Appeals Court Upholds Ruling Denying Request To Vacate Arbitration Award

LOS ANGELES - A California judge's decision to deny a woman's request to vacate an arbitrator's decision to award $1,707.11 to a contractor accused of faulty workmanship during renovations to her home was affirmed by a state appeals panel on June 22; it found that the judge did not err in finding that the terms of the construction contract did not violate California's public policy and that she was properly informed about the arbitration process (Rena Morris v. Michael O'Neill, et al., No. B258467, Calif. App., 2nd Dist., Div. 7; 2015 Calif. App. Unpub. LEXIS 4464).

Mealey's PI/Product Liability - Seaman, Shipyard Settle Asbestos Case During Trial

SAN FRANCISCO - Parties to a suit alleging a man contracted mesothelioma after exposure to asbestos as a seaman settled May 18 during trial, sources told Mealey Publications. On May 8, the federal judge overseeing the case applied maritime law and found the substantial factor causation standard governed the trial (Barry Kelly and Molly Kelly v. CBS Corp., et al., No. 11-3240, N.D. Calif.).

Mealey's Toxic Tort/Environmental - Seaman, Shipyard Settle Asbestos Case During Trial

SAN FRANCISCO - Parties to a suit alleging a man contracted mesothelioma after exposure to asbestos as a seaman settled May 18 during trial, sources told Mealey Publications. On May 8, the federal judge overseeing the case applied maritime law and found the substantial factor causation standard governed the trial (Barry Kelly and Molly Kelly v. CBS Corp., et al., No. 11-3240, N.D. Calif.).

Mealey's PI/Product Liability - New York Jury Awards $7 Million To Man Suffering From Mesothelioma

NEW YORK - A New York jury on Sept. 29 awarded $7 million to a man who contracted mesothelioma after exposure to asbestos during the construction of a National Grid Generation LLC predecessor's facility, sources told Mealey's Publication (Ralph North v. National Grid Generation LLC, No. 190114/13, N.Y. Sup., New York Co.).

Mealey's Labor & Employment - New York Jury Awards $7 Million To Man Suffering From Mesothelioma

NEW YORK - A New York jury on Sept. 29 awarded $7 million to a man who contracted mesothelioma after exposure to asbestos during the construction of a National Grid Generation LLC predecessor's facility, sources told Mealey's Publication (Ralph North v. National Grid Generation LLC, No. 190114/13, N.Y. Sup., New York Co.).

Mealey's Toxic Tort/Environmental - New York Jury Awards $7 Million To Man Suffering From Mesothelioma

NEW YORK - A New York jury on Sept. 29 awarded $7 million to a man who contracted mesothelioma after exposure to asbestos during the construction of a National Grid Generation LLC predecessor's facility, sources told Mealey's Publication (Ralph North v. National Grid Generation LLC, No. 190114/13, N.Y. Sup., New York Co.).

Mealey's PI/Product Liability - Pennsylvania High Court Won't Extend Habitability Claims To Subsequent Purchasers

HARRISBURG, Pa. - The Pennsylvania Supreme Court on Aug. 18 refused to allow subsequent purchasers of a newly constructed home to pursue claims for breach of implied warranty of habitability against the builder, ruling that the parties' arguments were predominantly grounded in public policy rather than contract law (Michael Conway, et al. v. Cutler Group Inc., d/b/a The David Cutler Group Inc., No. 80 MAP 2013, Pa. Sup.; 2014 Pa. LEXIS 2084).

Mealey's Bankruptcy - Bankrupt Detroit Contests $26M Claim Filed By County Public Works Commissioner

DETROIT - The bankrupt City of Detroit on May 20 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to a $26 million claim against it filed by the Macomb County public works commissioner related to a claim from an underlying lawsuit in which the commissioner contends that the city breached its contract with the public works department (In Re: City of Detroit, No. 13-53046, Chapter 9, E.D. Mich. Bkcy.).

Mealey's Antitrust/Unfair Competition - City Attorney: Hotel Slumlords Endangering Poor, Defrauding Public

SAN FRANCISCO - Members of a San Francisco family are defrauding taxpayers by operating a string of fleabag motels in violation of their contracts with the city to provide "clean, safe, habitable conditions" for tenants in publicly funded transitional housing, the city attorney alleges in a lawsuit filed in state court on May 12 under California's unfair competition law (UCL) (City and County of San Francisco and People of the State of California v. Balvantsinh "Bill" Thakor, et al., No. 539230, Calif. Super., San Francisco Co.).

Mealey's Insurance - Judge Finds Counterclaims In Interpleader Suit Not Barred By Anti-SLAPP Statute

OAKLAND, Calif. - Finding that an insured's breach of contract and bad faith counterclaims against its insurer did not arise primarily out of the insurer's protected activity, a California federal judge on April 3 declined to strike or dismiss the counterclaims under California's anti-SLAPP (strategic lawsuits against public participation) statute (Gotham Insurance Co. v. Shasta Technologies LLC, et al., No. 4:13-cv-03810, N.D. Calif.; 2014 U.S. Dist. LEXIS 47007).

Mealey's Litigation Procedure Damages Expert In Puerto Rico Contract Breach Case Unreliable, 1st Circuit Says

BOSTON - A trial court did not err in finding that a damages expert relied on faulty assumptions in calculating losses to a construction company that was denied public contracts because it pleaded guilty to wrongdoing on a federal highway project, a First Circuit U.S. Court of Appeals panel held March 19 (Redondo Construction v. Jose Izquierdo, et al., No. 13-1834, 1st Cir.; 2014 U.S. App. LEXIS 5165).

Mealey's Bankruptcy - California Employee Retirement Group Objects To Debt Plan Filed By City Of Stockton

SACRAMENTO, Calif. - The California Public Employees Retirement System (CalPERS), the arm of the State of California that provides retirement benefits to state employees, on Feb. 10 filed a brief in the U.S. Bankruptcy Court for the Eastern District of California opposing the plan of adjustment filed by the bankrupt City of Stockton, contending that the city's plan inappropriately treats the CalPERS pension plan as an executory contract (In Re: City of Stockton, Calif., No. 12-32118, Chapter 9, C.D. Calif. Bkcy.).