LexisNexis® Legal Newsroom
Illinois Judge Grants Bill Of Discovery In Fatal Condo Fire Action

CHICAGO - An Illinois judge on Jan. 28 granted a plaintiff's emergency bill of discovery in a wrongful death action filed following a fatal condominium fire, ordering the defendants to preserve 911 tapes and other documents (Patricia Fasula v. Lakefront Condominium Association, et al., No. 2013CH02209, Ill. Cir., Cook Co.).

Federal Judge Refuses To Stay Arbitration Arising From Legal Malpractice Claims

HOUSTON - A Texas federal judge on Jan. 23 denied a professional liability insurer's emergency motion to stay an arbitration proceeding between its law firm insured and an underlying claimant, one month after ruling that the insurer has a duty to defend its insured in the arbitration (OneBeacon Insurance Company v. T. Wade Welch & Associates, et al., No. H-11-3061, S.D. Texas).

Steroid Plaintiffs Seek To Freeze $21M Paid Out By Compounding Pharmacy

BOSTON - A Massachusetts bankruptcy judge on Jan. 23 scheduled a hearing on an emergency motion by unsecured creditors to try to freeze $21 million the creditors say was transferred in the past year to insiders of New England Compounding Pharmacy Inc. (NECP), the company at the center of a fungal meningitis outbreak (In Re: New England Compounding Pharmacy, Inc., No. 12-19882, D. Mass., E. Div.).

Harrisburg Council Cannot Sue Governor For Declaring Fiscal Emergency, Judge Says

HARRISBURG, Pa. - A federal judge in Pennsylvania on Jan. 9 dismissed a lawsuit brought by members of the Harrisburg City Council against Pennsylvania Gov. Tom Corbett, ruling that the city council lacked standing to sue the governor under the due process clause of the 14th amendment to the U.S. Constitution for his decision to declare a fiscal emergency and seek the appointment of a receiver when the city was approaching bankruptcy (Wanda R.D. Williams, et al. v. Governor Thomas W. Corbett, No. 12-1211, M.D. Pa.).

Pinnacle Airlines Seeks $52M In Additional Funding To Emerge From Chapter 11

NEW YORK - Bankrupt Pinnacle Airlines Corp. on Jan. 2 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of an additional $52 million in post-petition financing, which the airline says will allow it to emerge from Chapter 11 bankruptcy (In Re: Pinnacle Airlines Corp., No. 12-11343, Chapter 11, S.D. N.Y. Bkcy.).

Tribune Company, With $1.4B In New Loans, Emerges From Chapter 11 Bankruptcy

WILMINGTON, Del. - The Tribune Co. officially emerged from Chapter 11 bankruptcy on Dec. 31 as the bankruptcy judge in the U.S. Bankruptcy Court for the District of Delaware confirmed the company's fourth amended plan of reorganization, which will be funded by $1.4 billion in new loans (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

Trustee Seeks Settlement With Directors Of Bankrupt Open Range Communications

WILMINGTON, Del. - The Chapter 7 trustee in the bankruptcy proceeding of Open Range Communications Inc. on Dec. 18 filed an emergency motion in the U.S. Bankruptcy Court for the District of Delaware calling for an order approving a settlement between himself and a group of defendants to avoid costly and complex litigation the trustee has filed to recover assets for the bankruptcy estate (Charles M. Forman v. One Equity Partners III, et al. [In Re: Open Range Communications Inc.], Adv. Proc. No. 12-50739, No. 11-13188, Chapter 7, D. Del. Bkcy.).

K-V Discovery Solutions Seeks Approval Of $85M Loan To Pay Settlement, Costs

NEW YORK - Bankrupt pharmaceutical firm K-V Discovery Solutions Inc. on Dec. 11 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of an $85 million deal for post-petition financing, which the company says will enable it to emerge from Chapter 11 bankruptcy (In Re: K-V Discovery Solutions Inc, No. 12-113346, Chapter 11, S.D. N.Y. Bkcy.).

Standard Chartered To Pay $327M To Settle Money Laundering Claims

WASHINGTON, D.C. - Standard Chartered Bank (SCB) has agreed to the forfeiture of $227 million to the U.S. Department of Justice and to pay a $100 million penalty to the Federal Reserve Board for violating the International Emergency Economic Powers Act (IEEPA) by engaging in what is being deemed illegal transactions with a number of sanctioned entities, according to a press release issued on Dec. 11 by the U.S. Attorney's Office for the District of Columbia.

Missouri Appeals Court Affirms Denial Of Medicaid Benefits To Legal Alien

KANSAS CITY, Mo. - The Western District Missouri Court of Appeals, Division Two, on Dec. 4 affirmed a trial court ruling denying Medicaid coverage for kidney dialysis treatment to a "legal alien." The appeals court concluded that while a legal alien may receive Medicaid benefits after living in the country for five years or more, or for seeking emergency treatment, the plaintiff had resided in the United States for only three years and her condition was not considered an emergency under state and federal law (Bertha Cruz v. Mo. Department of Social Services,  No. WD74667, Mo. App., Western Dist., Div. 2; 2012 Mo. App. LEXIS 1537).

Georgia Appeals Panel: Delay At Emergency Room May Have Caused Man's Injury

ATLANTA - The Georgia Court of Appeals on Nov. 28 overturned summary judgment for the defendants in a medical malpractice action, concluding that the plaintiffs presented evidence showing that a delay in proper medical attention led to a man's finger being amputated (Ryan S. Dailey, et al. v. Dr. Gihan Abdul-Samed, et al.,  No. A12A1109, Ga. App.; 2012 Ga. App. LEXIS 1002).

Satcon Creditors Oppose Deal That Would Lead To Incurring Post-Petition Trade Debt

WILMINGTON, Del. - A group of secured creditors in the Chapter 11 bankruptcy of alternative energy company Satcon Technology Corp. (STC) on Nov. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the debtor's emergency motion seeking authorization to enter a settlement in which it would incur post-petition trade debt (In Re: Satcon Technology Corporation, No. 12-12869, Chapter 11, D. Del. Bkcy.).

Kodak Restructuring Officer: Bankruptcy Court Should OK Additional Financing

NEW YORK - The chairman of the restructuring group in the Chapter 11 bankruptcy case of Eastman Kodak Co. on Nov. 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should approve additional post-petition funding for Kodak to emerge from bankruptcy quickly (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

FCC Approves Tribune Licenses; Progress Toward Emerging From Chapter 11 Continues

CHICAGO - Bankrupt Tribune Co. on Nov. 16 issued a statement in which it said that based on the approval it has gained from the Federal Communications Commission for broadcast licenses, the company will be able to emerge from Chapter 11 bankruptcy (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). Subscriber may view the statement available within the full article.

New York High Court Finds Challenge To Medicaid Benefits Notification Not Moot

ALBANY, N.Y. - The New York Court of Appeals on Oct. 30 affirmed an appellate court order that the state's Department Of Health failed, and will likely continue to fail, to timely respond to requests for emergency medical assistance benefits. The high court agreed that the "likely to recur" mootness doctrine should be applied to the plaintiff's claim seeking damages for lack of notification of benefits availability (Barbara Coleman, etc., v. Richard F. Daines, M.D., etc.,  No. 152, N.Y. App.; 2012 N.Y. LEXIS 3263).

City Of Atwater, Calif., Officially Says It Has Declared Fiscal Emergency

ATWATER, Calif. - An official in the City of Atwater, Calif., on Oct. 8 confirmed that the City Council has declared a fiscal emergency, which is seen as the first step toward officially filing for Chapter 9 bankruptcy.

Atwater, Calif., Council Declares Fiscal Crisis, May File For Chapter 9 Bankruptcy

ATWATER, Calif. - The Atwater City Council on Sept. 19 issued a report in which it recommended that the city manager declare a fiscal emergency pursuant to state code in order to prepare the way for the municipality to file a Chapter 9 bankruptcy petition.

Sallie Mae Reaches $24M Settlement In Telephone Debt Collection Class Action

SEATTLE - Student loan borrowers and a subsidiary of SLM Corp. on Sept. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular telephones in an attempt to collect on outstanding student loan debt, according to documents filed in a Washington federal court (Mark A. Arthur, et al. v. Sallie Mae Inc., No. 10-0198, W.D. Wash.).

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Stay Denied In California Dispute Over 'Muscle Power' Trademark

SACRAMENTO, Calif. - A California federal judge on Sept. 6 denied a defendant's request for an emergency stay in a longstanding trademark infringement case (CytoSport Inc. v. Vital Pharmaceuticals Inc., No. 08-2632, E.D. Calif.). Subscribers may view the decision available within the full article.

3rd Circuit: Bond Order Appeal 'Moot' In Tribune Chapter 11 Bankruptcy

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Sept. 10 dismissed as moot a creditor's motion seeking an emergency stay of a bond order in the Chapter 11 bankruptcy proceeding of Tribune Co. (In Re: Tribune Company, No. 12-3437, Chapter 11, 3rd Cir.). Subscribers may view the order available within the full article.

9th Circuit Accepts Appeal Of Remand Order But Denies Stay Of Trial

LOS ANGELES - The Ninth Circuit U.S. Court of Appeals on Sept. 6 accepted Lorillard Tobacco Co.'s appeal of a remand order and ordered expedited briefing but denied its emergency motion seeking to stay the state court asbestos case set for trial (Dimitris O. Couscouris, et al. v. Hatch Grinding Wheels Inc., et al., No. 12-56446, 9th Cir.).Subscribers may view the order available within the full article.

Bankrupt San Bernardino Emergency Budget Aims To Cut Deficit By $27.89M

SAN BERNARDINO, Calif. - The City Council for San Bernardino, Calif., on Sept. 5 approved an emergency budget that will reduce expenses by 30 percent and aims to reduce the city's $45 million deficit to slightly more than $16.42 million (In Re: City of San Bernardino, California, No. 12-28006, Chapter 9, C.D. Calif. Bkcy.). Subscribers may view the emergency budget  available within the full article.

Bankrupt Hostess CEO: Deal With Union Close, May Pave Way Out Of Chapter 11

NEW YORK - The CEO of bankrupt Hostess Brands Inc. on Aug. 20 sent a letter to employees indicating that the company had reached a breakthrough with its largest union regarding modification to the collective bargaining agreement (CBA), which may help pave the way for Hostess to emerge from bankruptcy (In Re:  Hostess Brands Inc.,  No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

Chapter 9 Bankruptcy Imminent As San Bernardino Declares Fiscal Emergency

SAN BERNARDINO, Calif. - The San Bernardino City Council on July 18 voted 5-2 to declare a fiscal emergency, which allows it to file Chapter 9 bankruptcy without first negotiating with its creditors. City officials said they expect to file a petition in the next 30 days.

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A&P Seeks Order Enforcing Cost Reduction Agreement With One Of Its Unions

NEW YORK - Bankrupt grocer The Great Atlantic & Pacific Tea Co. on July 6 moved in the U.S. Bankruptcy Court for the Southern District of New York to enforce an agreement with one of its unions that had agreed to make cost reductions to help the company emerge from Chapter 11 bankruptcy (In Re: The Great Atlantic & Pacific Tea Company Inc., No. 10-24549, S.D. N.Y. Bkcy).