LexisNexis® Legal Newsroom
Mealey's Insurance - Panel Affirms Dismissal Of Remodelers' Suit Against Federal Flood Insurer

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Feb. 14 affirmed a lower court's dismissal of a breach of contract, unjust enrichment, fraudulent inducement and intentional and negligent misrepresentation lawsuit against a federal flood insurer, reiterating that the claims are preempted by the National Flood Insurance Act (NFIA) (D&S Remodelers Inc. v. Wright National Flood Insurance Services LLC, et al., No.17-5554, 6th Cir., 2018 U.S. App. LEXIS 3382).

Mealey's Insurance - Judge Allows Breach Of Contract Claim Against Insurer To Proceed To Trial

NEW HAVEN, Conn. - After dismissing all claims based on a "collapse" from faulty concrete against one homeowners insurer for not occurring during its policy period, a Connecticut federal judge on Feb. 13 dismissed all but a breach of contract claim against another insurer because a reasonable jury could find that the insurer breached its policy (Shawn M. Kowalyshyn, et al. v. Excelsior Insurance Co., et al., No. 16-00148, D. Conn., 2018 U.S. Dist. LEXIS 22981).

Mealey's Toxic Tort/Environmental - Insurer, Reinsurer Submit Briefs On New York High Court Decision's Application

NEW YORK - In a coverage dispute over asbestos litigation costs, a reinsurer and insurer submitted letters on Feb. 9 to the Second Circuit U.S. Court of Appeals concerning how a New York high court ruling applies to a reinsurance contract's per-occurrence liability cap (Global Reinsurance Corporation of America v. Century Indemnity Co., No. 15-2164, 2nd Cir.).

Mealey's Banking & Finance - Judge Partially Grants Dismissal For Nationstar, Rejects UCL, HBOR claims

SAN FRANCISCO - A California federal judge on Feb. 9 refused to dismiss a borrower's claims for breach of contract and negligence asserted by a borrower against a bank but found that the bank did not commit unlawful acts in violation California's unfair competition law (UCL) and that part of his claim for violation of the California Homeowners Bill of Rights (HBOR) also failed (Steve Johnson v. Nationstar Mortgage LLC, No. 3:17-cv-03676, N.D. Calif., 2018 U.S. Dist. LEXIS 22829).

Mealey's Antitrust/Unfair Competition - Judge Partially Grants Dismissal For Nationstar, Rejects UCL, HBOR claims

SAN FRANCISCO - A California federal judge on Feb. 9 refused to dismiss a borrower's claims for breach of contract and negligence asserted by a borrower against a bank but found that the bank did not commit unlawful acts in violation California's unfair competition law (UCL) and that part of his claim for violation of the California Homeowners Bill of Rights (HBOR) also failed (Steve Johnson v. Nationstar Mortgage LLC, No. 3:17-cv-03676, N.D. Calif., 2018 U.S. Dist. LEXIS 22829).

Mealey's Insurance - Insurer, Reinsurer Submit Briefs On New York High Court Decision's Application

NEW YORK - In a coverage dispute over asbestos litigation costs, a reinsurer and insurer submitted letters on Feb. 9 to the Second Circuit U.S. Court of Appeals concerning how a New York high court ruling applies to a reinsurance contract's per-occurrence liability cap (Global Reinsurance Corporation of America v. Century Indemnity Co., No. 15-2164, 2nd Cir.).

Mealey's Litigation Procedure - Expert's Opinions On Corrosion Found On Airplane Barred By Judge

TAMPA, Fla. - Competing experts in a breach of contract lawsuit over the inspection of a company's airplane both had their proposed testimony limited Feb. 13 by a Florida federal judge (Oil Consulting Enterprise, Inc. v. Hawker Beechcraft Global Customer Support, LLC, No. 8:16-cv-3453, M.D. Fla., 2018 U.S. Dist. LEXIS 23273).

Mealey's PI/Product Liability - Panel: Auto Insurer Is Liable For Additional Insured's PIP Benefits

TRENTON, N.J. - An auto insurer is liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract, a New Jersey appeals panel affirmed Feb. 8 (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. A-3331-15T4, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 286).

Mealey's Insurance - Panel: Auto Insurer Is Liable For Additional Insured's PIP Benefits

TRENTON, N.J. - An auto insurer is liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract, a New Jersey appeals panel affirmed Feb. 8 (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. A-3331-15T4, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 286).

Mealey's Litigation Procedure - Wholesale Company Seeks Confirmation Of Award In New York Federal Court

NEW YORK - The purchaser of Russian chick peas that were never delivered pursuant to three contracts sued the seller of the product in a New York federal court on Feb. 9, seeking to confirm an English arbitral award issued in its favor (PKT Associates Inc. v. Granum Group LLC, No. 1:18-cv-01169, S.D. N.Y.).

Mealey's PI/Product Liability - New Jersey Federal Judge Dismisses Medical Malpractice Suit

TRENTON, N.J. - A federal judge in New Jersey on Feb. 9 granted a motion by three doctors to dismiss a medical malpractice suit against them after finding that the court does not have jurisdiction over the case, in which a woman claimed that she contracted an infection after a surgery (Francie Meth v. Thomas Jefferson Hospitals Inc., et al., No. 3:17-CV-13323, D. N.J., 2018 U.S. Dist. LEXIS 21312).

Mealey's PI/Product Liability - $41.5M Award For Girl's Tick Bite Disease, Expert Rulings Upheld By 2nd Circuit

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 6 affirmed a $41.5 million jury award against a private school in Connecticut for negligence in a lawsuit claiming that a student contracted tick-borne encephalitis (TBE) during a school trip to China, finding that the trial court did not abuse its discretion in its expert witness rulings (Orson D. Munn, III, et al. v. The Hotchkiss School, No. 14-2410, 2nd Cir., 2018 U.S. App. LEXIS 2852).

Mealey's Banking & Finance - Judge Dismisses Majority Of Claims In Kickback Scheme Over Lender-Placed Insurance

CHICAGO - In a lawsuit alleging a kickback scheme in lender-placed insurance, an Illinois federal judge on Feb. 8 dismissed most of the claims except for breach of contract and bad faith claims pertaining to alleged overcharging of nonexistent inspections (Mariusz Dolegiewicz v. U.S. Bank Trust, N.A., et al., No. 17-4737, N.D. Ill., 2018 U.S. Dist. LEXIS 21089).

Mealey's Insurance - 7th Circuit: Class Suit Over Increased Premiums After Age 67 May Proceed

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Feb. 6 reinstated a class suit accusing an insurance company of breaching its long-term care policy by doubling an insured's premiums after she turned 67, ruling that the lead named plaintiff is entitled to relief on her contract claim and that, as a result, dismissal of the remaining claims was premature (Margery Newman, et al. v. Metropolitan Life Insurance Company, No. 17-1844, 7th Cir., 2018 U.S. App. LEXIS 2890).

Mealey's Insurance - Judge Rejects Title Services Co.'s Claim For Errors And Omissions Coverage

ALBUQUERQUE, N.M. - A New Mexico federal judge on Feb. 6 ruled in favor of an errors and omissions insurer in a title services company insured's lawsuit alleging breach of contract, bad faith and violation of New Mexico's Unfair Claims Practices Act (Aztec Abstract & Title Insurance, Inc. v. Maxum Specialty Group & Maxum Indemnity Co., No. 16-103, D. N.M., 2018 U.S. Dist. LEXIS 19305).

Mealey's Insurance - Judge Dismisses Majority Of Claims In Kickback Scheme Over Lender-Placed Insurance

CHICAGO - In a lawsuit alleging a kickback scheme in lender-placed insurance, an Illinois federal judge on Feb. 8 dismissed most of the claims except for breach of contract and bad faith claims pertaining to alleged overcharging of nonexistent inspections (Mariusz Dolegiewicz v. U.S. Bank Trust, N.A., et al., No. 17-4737, N.D. Ill., 2018 U.S. Dist. LEXIS 21089).

Mealey's Insurance - Insured Does Not Show Contract With Reinsurer, Federal Judge Concludes

PITTSBURGH - An insured is not in contractual privity with a reinsurer under an insurance policy or a reinsurance agreement, a Pennsylvania federal judge held Feb. 8, dismissing breach of contract, bad faith and civil conspiracy claims (Three Rivers Hydroponics LLC v. Florists' Mutual Insurance Co., et al., No. 15-00809, W.D. Pa., 2018 U.S. Dist. LEXIS 20699).

Mealey's Litigation Procedure - $41.5M Award For Girl's Tick Bite Disease, Expert Rulings Upheld By 2nd Circuit

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 6 affirmed a $41.5 million jury award against a private school in Connecticut for negligence in a lawsuit claiming that a student contracted tick-borne encephalitis (TBE) during a school trip to China, finding that the trial court did not abuse its discretion in its expert witness rulings (Orson D. Munn, III, et al. v. The Hotchkiss School, No. 14-2410, 2nd Cir., 2018 U.S. App. LEXIS 2852).

Mealey's Litigation Procedure - 7th Circuit: Class Suit Over Increased Premiums After Age 67 May Proceed

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Feb. 6 reinstated a class suit accusing an insurance company of breaching its long-term care policy by doubling an insured's premiums after she turned 67, ruling that the lead named plaintiff is entitled to relief on her contract claim and that, as a result, dismissal of the remaining claims was premature (Margery Newman, et al. v. Metropolitan Life Insurance Company, No. 17-1844, 7th Cir., 2018 U.S. App. LEXIS 2890).

Mealey's Antitrust/Unfair Competition - Federal Judge Dismisses UCL, Fraud Cross-Claims Against Online Marketplace

SAN FRANCISCO - A California federal judge on Feb. 6 granted an online marketplace host's motion to dismiss counterclaims asserted against it for violation of California's unfair competition law, breach of contract, fraud and other claims asserted by a user of the marketplace who allegedly failed to pay for or return inventory from the website, but granted the user leave to amend the claims to assert more specific factual allegations (Ouiby Inc. v. Idil Doguoglu Posey, et al., No. 17-cv-03847, N.D. Calif., 2018 U.S. Dist. LEXIS 19502).

Mealey's Insurance - Insureds' Claims For Contract Breach, Bad Faith Can Stand, Federal Judge Determines

TULSA, Okla. - An Oklahoma federal judge on Feb. 2 denied an insurer's motion for summary judgment on breach of contract and bad faith claims in a dispute over coverage for earthquake and mold damages after determining that the insureds offered sufficient evidence to support their claims (Larry W. Thomas, et al. v. Farmers Insurance Co., No. 16-17, N.D. Okla., 2018 U.S. Dist. LEXIS 17418).

Mealey's Insurance - Theft Over Multiple Days Constitutes 1 Occurrence, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Feb. 5 affirmed a lower court's ruling in favor of a business insurer on insureds' claims for breach of contract and bad faith, finding that theft of business merchandise over the course of multiple days is still considered to be one "occurrence" under the insurance policy (Patrick E. Patterson, et al. v. American Economy Insurance Co., No. 16-16445, 9th Cir., 2018 U.S. App. LEXIS 2846).

Mealey's Toxic Tort/Environmental - Judge: Tainted Groundwater Case Not Precluded By Fracking Services Contract

PITTSBURGH - A federal judge in Pennsylvania on Feb. 1 denied a well services company's motion to dismiss a breach of contract lawsuit against it related to groundwater contamination that the company allegedly caused by failing to perform services properly on a hydraulic fracturing well site (EQT Production Company v. Terra Services LLC, No. 14-01053, W.D. Pa.).

Mealey's PI/Product Liability - Building Code Violations Do Not Toll Statute Of Repose, Judge Says

BEAUFORT, S.C. - A federal judge in South Carolina on Feb. 1 upheld his earlier ruling finding that the state's eight-year statute of repose barred breach of contract and breach of express and implied warranties claims asserted against an architecture firm and contractor accused of construction defects, finding that alleged building code violations did not toll the statute (Hampton Hall LLC v. Chapman Coyle Chapman & Associates Architects AIA Inc., et al., No. 17-1575, D. S.C., 2018 U.S. Dist. LEXIS 17795).

Mealey's Litigation Procedure - New York Court Affirms Refusal To Compel Chinese Arbitration

BROOKLYN, N.Y. - A New York appeals court on Jan. 31 affirmed a trial court's refusal to compel a breach of contract dispute between clothing makers to arbitration, finding that a U.S. purchaser of the clothing failed to raise its arguments under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards before the lower court (Dongyang Jiutai Clothing Co., Ltd. v Lady Emerald, Inc., No. 2015-09802, N.Y. Sup., App. Div., 2nd Div., 2018 N.Y. App. Div. LEXIS 564).