LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - D.C. Circuit Affirms Court's Decision Refusing To Enforce Annulled Award

WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on July 7 affirmed a district court's decision refusing to confirm an approximately $43.5 million award that was annulled by an international arbitration court, finding that the arbitration court's setting of fees did not violate public policy under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Getma International v. Republic of Guinea, No. 16-7087, D.C. Cir., 2017 U.S. App. LEXIS 12138).

Mealey's Labor & Employment - 8th Circuit: Jimmy John's Franchise Owner Within Rights To Fire Union Workers

ST. LOUIS - The full Eighth Circuit U.S. Court of Appeals on July 3 ruled that a company that owns 10 Jimmy John's Franchise LLC sandwich shops in the Twin Cities was within its rights to fire six union workers who circulated posters critical of the company's sick leave policy, saying they made a "sharp, public disparaging attack upon the quality of the company's product and its business policies, in a manner reasonably calculated to harm the company's reputation and reduce its income" (MikLin Enterprises Inc. v. National Labor Relations Board, et al., No. 14-3099, 8th Cir., 2017 U.S. App. LEXIS 11792).

Mealey's PI/Product Liability - Florida Appeals Panel Finds Arbitration Provision Is Against Public Policy

LAKELAND, Fla. - An arbitration provision in a sales agreement for a home that the owners claim has defectively installed stucco is against public policy because it prevents the couple from pursuing their allegations that the builder violated the Florida Building Code, a Florida appeals panel ruled May 31 in reversing an order compelling arbitration (Reginald Anderson, et al. v. Taylor Morrison of Florida, Inc., No. 2D16-314, Fla. App., 2nd Dist., 2017 Fla. App. LEXIS 7777).

Mealey's Litigation Procedure - D.C. Federal Judge Confirms $8.4M Award For Afghan Construction Firm

WASHINGTON, D.C. - A District of Columbia federal judge on May 31 granted a construction company's petition to confirm an $8,462,516 arbitral award issued in its favor in relation to payment for subcontracting work on the construction of a power plant in Kabul, finding that the primary contractor on the project failed to show that a public policy exception under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards applied (Venco Imtiaz Construction Co. v. Symbion Power LLC, No. 16-1737, D. D.C., 2017 U.S. Dist. LEXIS 82480).

Mealey's PI/Product Liability - Right To Public Education Is Intangible; No Coverage For Lawsuit Against Teacher

DENVER - The 10th Circuit U.S. Court of Appeals on May 3 affirmed a lower federal court's finding that an underlying lawsuit alleging that a high school mathematics teacher engaged in inappropriate communications with one of his female students fails to trigger "bodily injury" or "property damage" under his homeowners insurance policy (State Farm Fire and Casualty Co. v. Charles Dawson, et al., No. 16-6356, 10th Cir., 2017 U.S. App. LEXIS 7836).

Mealey's Insurance - Right To Public Education Is Intangible; No Coverage For Lawsuit Against Teacher

DENVER - The 10th Circuit U.S. Court of Appeals on May 3 affirmed a lower federal court's finding that an underlying lawsuit alleging that a high school mathematics teacher engaged in inappropriate communications with one of his female students fails to trigger "bodily injury" or "property damage" under his homeowners insurance policy (State Farm Fire and Casualty Co. v. Charles Dawson, et al., No. 16-6356, 10th Cir., 2017 U.S. App. LEXIS 7836).

Mealey's Insurance - Business Pursuits Exclusion Bars Coverage For Defamation Lawsuit, Judge Rules

EAST ST. LOUIS, Ill. - An Illinois federal judge on April 19 found that a homeowners insurance policy's "business pursuits" and "civic or public activities performed for pay" exclusions bar coverage for underlying defamation and false light claims brought against its insured, declaring that the insurer has no duty to defend or indemnify its insured (Patricia Beil v. AMCO Insurance Co., et al., No. 16-356, S.D. Ill., 2017 U.S. Dist. LEXIS 59757).

Mealey's Labor & Employment - Twice Fired Garbage Truck Driver May Proceed With Wrongful Termination Claim

PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on April 7 reinstated a wrongful termination claim by a garbage truck driver who was fired twice by the same employer, finding that the employer's proffered reason for the second firing - the employee's failure to provide proof of his legal right to work in the United States - violated California public policy (Gilberto Santillan v. USA Waste of California, Inc., No. 15-55238, 9th Cir., 2017 U.S. App. LEXIS 6027).

Mealey's Antitrust/Unfair Competition - California High Court Finds Arbitration Provision Is Contrary To Public Policy

LOS ANGELES - The California Supreme Court on April 6 reversed a court's ruling that the Federal Arbitration Act (FAA) does not preempt a rule that provides that arbitration agreements for public injunctive relief under California's unfair competition law (UCL) and false advertising law are not enforceable in California, remanding a credit card user's allegations related to marketing of the card against the lender for further review (Sharon McGill v. Citibank, N.A., No. S224086, Calif. Sup., 2017 Cal. LEXIS 2551).

Mealey's IP/Tech - Judge: Suit Fails To Allege Insured Published Material That Disparages Sprint

BALTIMORE - A Maryland federal judge on March 29 held that Sprint's underlying lawsuit against an insured fails to allege the publication of disparaging material and, therefore, the insurer's duty to defend was not triggered under the policy's "personal and advertising injury coverage" (Unwired Solutions, Inc. v. Ohio Security Insurance Co., No. 16-0405, D. Md., 2017 U.S. Dist. LEXIS 46215).

Mealey's Insurance - Judge: Suit Fails To Allege Insured Published Material That Disparages Sprint

BALTIMORE - A Maryland federal judge on March 29 held that Sprint's underlying lawsuit against an insured fails to allege the publication of disparaging material and, therefore, the insurer's duty to defend was not triggered under the policy's "personal and advertising injury coverage" (Unwired Solutions, Inc. v. Ohio Security Insurance Co., No. 16-0405, D. Md., 2017 U.S. Dist. LEXIS 46215).

Mealey's Litigation Procedure - D.C. Circuit Affirms Confirmation of $18M Award For Belize Bank

WASHINGTON, D.C. - After finding that a London arbitral award did not violate U.S. public policy, the D.C. Circuit U.S. Court of Appeals on March 31 rejected an appeal by the government of Belize and affirmed confirmation of the $18,470,881 award issued in favor of a Belize bank (Belize Bank Limited v. Government of Belize, Nos. 16-7083 Consolidated with 16-7089, 16-7094, D.C. Cir., 2017 U.S. App. LEXIS 5587).

Mealey's IP/Tech - Judge: State Officials Immune From SCA Liability For Seized Electronic Records

MADISON, Wis. - A Wisconsin federal judge on March 16 found several state officials not liable for violation of the Stored Communications Act (SCA) in the seizure of an organization's electronic records as part of an investigation, finding the relevant warrants to have been issued in compliance with the statute and deeming the officials entitled to immunity under the act (The John K. MacIver Institute for Public Policy Inc. v. Francis Schmitz, et al., No. 3:16-cv-00539, W.D. Wis., 2017 U.S. Dist. LEXIS 36796).

Mealey's Litigation Procedure - Judge: State Officials Immune From SCA Liability For Seized Electronic Records

MADISON, Wis. - A Wisconsin federal judge on March 16 found several state officials not liable for violation of the Stored Communications Act (SCA) in the seizure of an organization's electronic records as part of an investigation, finding the relevant warrants to have been issued in compliance with the statute and deeming the officials entitled to immunity under the act (The John K. MacIver Institute for Public Policy Inc. v. Francis Schmitz, et al., No. 3:16-cv-00539, W.D. Wis., 2017 U.S. Dist. LEXIS 36796).

Mealey's Litigation Procedure - University Of Michigan Sued For Not Fulfilling 'Trump' Emails Records Request

LANSING, Mich. - The University of Michigan (UM) was hit with a lawsuit in Michigan court March 2, with a research and educational organization claiming that the university failed to comply with its request under the Michigan Freedom of Information Act (MFOIA) for copies of emails UM's president sent containing the word "Trump" (Mackinac Center for Public Policy v. University of Michigan, No. 17-000050-MZ, Mich. Clms.).

Mealey's Toxic Tort/Environmental - D.C. Circuit Says It Has No Jurisdiction Over Challenge To EPA Statement

WASHINGTON, D.C. - A panel of the District of Columbia Circuit U.S. Court of Appeals on Feb.28 found that it does not have jurisdiction over a group's challenge to a statement from the U.S. Environmental Protection Agency that it would not acquiesce to an Eighth Circuit U.S. Court of Appeals ruling on policies the agency implemented on the discharge of water from publicly owned water treatment facilities outside the circuit, holding that the statement was not a rule that could be challenged in the appeals court (Center for Regulatory Reasonableness v. U.S. Environmental Protection Agency, No. 14-1150, D.C. Cir., 2017 U.S. App. LEXIS 3576).

Mealey's Insurance - 9th Circuit Certifies 2 Questions To California High Court In Environmental Suit

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Jan. 13 certified two questions to the California Supreme Court regarding whether California's notice-prejudice rule is a fundamental public policy for the purpose of choice-of-law analysis and whether a consent provision can be interpreted as a notice provision (Pitzer College v. Indian Harbor Insurance Co., No.. 14-56017, 9th Cir.; 2017 U.S. App. LEXIS 668).

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 Litigation Procedure - 2nd Circuit Affirms Confirmation Of ICC Award For ConocoPhillips

NEW YORK - The Second Circuit U.S. Court of Appeals on Nov. 7 affirmed a district court's decision to deny a petition to vacate an award filed by two subsidiaries of a Venezuela oil company and granting a cross-petition to confirm the award filed by ConocoPhillips Co., finding that the appellants failed to present any evidence that the award violated public policy (PDV Sweeny, Inc., et al. v. ConocoPhillips Co., et al., No. 16-170, 2nd Cir.).

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 Insurance - 6th Circuit: Claims Based On Pastor's Sexual Acts; No Coverage For $4.35M Award

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on July 5 affirmed a lower federal court's finding that because underlying claims were based on an associate pastor's sexual acts, the victims and their parents cannot recover a $4.35 million award against the pastor from his church's insurer because the policy does not cover an individual's sexual misconduct and because Ohio public policy prohibits insurance for the sexual abuse of a minor (Jacquin Clifford, et al. v. Church Mutual Insurance Co., No. 15-4154, 6th Cir.; 2016 U.S. App. LEXIS 12541).

Mealey's Insurance - Panel: 'Other Insurance' Clause Is Unenforceable In Equitable Contribution Suit

SACRAMENTO, Calif. - An "other insurance" clause cannot be enforced in an equitable contribution action between successive primary insurers, a California appeals panel held April 11, also finding that enforcement of the clause in a primary commercial general liability insurance policy would violate public policy (Certain Underwriters at Lloyds, London v. Arch Specialty Insurance Co., No. C072500, Calif. App., 3rd Dist.; 2016 Cal. App. LEXIS 275).

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).