LexisNexis® Legal Newsroom
    Mealey's Insurance - 7th Circuit Rejects Preliminary Injunction In ACA Opt-Out Challenge

    CHICAGO - Notre Dame is not entitled to a preliminary injunction while it challenges the opt-out provision of the Patient Protection and Affordable Care Act (ACA)'s contraceptive mandate, a divided Seventh Circuit U.S. Court of Appeals held May 19 (University of Notre Dame v. Kathleen Sebelius, et al., No. 13-3853, 7th Cir.).

    Mealey's Insurance - Insurer Opposes Reinsurer's Request For Leave To Amend Answer

    BOSTON - An insurer told a federal court in Massachusetts on May 15 that its reinsurer's motion to amend its answer should not be allowed because certain court-mandated deadlines have passed and will not allow the insurer to seek discovery of information related to the proposed amended answer (OneBeacon America Insurance Company v. Transatlantic Reinsurance Company, No. 14-cv-14067, D. Mass.).

    Mealey's Litigation Procedure - Federal Judge Allows Most Cause-Of-Death Testimony In Medical Malpractice Case

    MEMPHIS, Tenn. - A Tennessee federal judge on May 18 declined to strike or exclude testimony of three experts for a couple alleging medical malpractice in the death of their 11-year-old son but ruled that testimony by a fourth expert for the plaintiffs should be excluded from trial based on state law geographic requirements and the relevancy of the testimony (Thomas G. Hensley, et al. v. Methodist Healthcare Memphis Hospitals, et al., No. 2:13-cv-02436, W.D. Tenn.; 2015 U.S. Dist. LEXIS 64518).

    Mealey's Insurance - Judge: Coverage Barred By Unpaid Compensation, Breach Of Contract Exclusions

    CHICAGO - An Illinois federal judge on May 18 found that an insurer has no duty to defend its interstate motor carrier insured against an underlying suit brought by one of its independent truck drivers because the directors and officers and company coverage is barred by the policy's unpaid compensation and breach of contract exclusions (Altom Transport Inc. v. Westchester Fire Ins., et al., No. 14-cv-9547, N.D. Ill., Eastern Div.; 2015 U.S. Dist. LEXIS 64397).

    Mealey's IP/Tech - Duke University Wins Right To File 2nd Amended Patent Complaint

    GREENSBORO, N.C. - A North Carolina federal magistrate judge on May 19 granted Allergan Inc. and Duke University leave to amend to remove all allegations of infringement of one patent while narrowing their infringement allegations as they relate to another (Allergan Inc. and Duke University v. Apotex Inc., et al., No. 14-1028, M.D. N.C.; 2015 U.S. Dist. LEXIS 64973).

    Mealey's Insurance - Judge Severs, Stays Bad Faith Claim Pending Outcome Of Declaratory Relief Claim

    FRESNO, Calif. - A federal judge in California on May 18 ordered parties in an insurance bad faith lawsuit to meet and confer and file a stipulation to stay arbitration pending the outcome of an insured's declaratory relief claim and severed and stayed the insured's breach of the implied covenant of good faith and fair dealing claim pending resolution of the declaratory relief claim (Martha Castro v. Lincoln General Insurance Co., No. 15-0331, E.D. Calif.; 2015 U.S. Dist. LEXIS 64851).

    Mealey's Insurance - Federal Judge: Insurer Has To Defend But Not Indemnify Public Accounting Firm

    PHILADELPHIA - Finding that there is a disputed issue of fact as to whether a public accounting firm's employee had reason to know, before an accountant's professional liability insurance policy became effective, that a claim could be reasonably anticipated, a Pennsylvania federal judge on May 18 concluded that the insurer has a duty to defend but does not have to indemnify the firm against an underlying lawsuit alleging that the firm and its employee breached their professional duty of confidentiality (Navigators Insurance Co. v. Resnick Amsterdam Leshner, et al., No. 14-5158, E.D. Pa.; 2015 U.S. Dist. LEXIS 64385).

    Mealey's Toxic Tort/Environmental - Marathon Petroleum To Pay $5.7M To Resolve Clean Air Act Violations

    TOLEDO, Ohio - Marathon Petroleum Corp. on May 19 entered into a settlement agreement with the Environmental Protection Agency in which the company agreed to pay $5.7 million to resolve Clean Air Act (CAA) violations that included excessive emissions of air pollutants and failure to perform required recordkeeping and testing (United States of America v. Marathon Petroleum Corporation, No. 15-00994, N.D. Ohio).

    Mealey's PI/Product Liability - City Not Immune To Suit Alleging Improper Path Design, Montana High Court Rules

    HELENA, Mont. - A trial judge erred in applying the public-duty doctrine to a suit alleging that improper design of a paved walking path caused a man to suffer fatal head injuries in a fall while skateboarding in a residential development, the Montana Supreme Court ruled in a split decision May 19 (Sara Kent, et al. v. City of Columbia Falls, No. DA 14-0309, Mont. Sup.; 2015 Mont. LEXIS 201).

    Mealey's Insurance - Judge: Insureds Fail To Prove Insurer's Bad Faith In Denial Of Repair Costs

    COLUMBIA, S.C. - Insureds fail to show that an insurer acted in bad faith when it denied coverage for additional replacement costs from a house fire, a South Carolina federal judge ruled May 19, dismissing the claim but allowing the insureds' breach of contract claim to proceed (Franklin Dash and Debbie Dash v. Selective Insurance Company of South Carolina, No. 12-02732, D. S.C.; 2015 U.S. Dist. LEXIS 65026).

    Mealey's Insurance - Panel Remands For New Trial To Determine Insureds' Replacement Costs For Fire

    KANSAS CITY, Mo. - An insurance policy's language referring to the limits of coverage and the replacement cost of the dwelling is ambiguous, a Missouri appeals panel ruled May 19, reversing and remanding for a new trial to determine whether insureds are entitled to the full replacement cost of their destroyed home (Derek Wilson and Jennifer Wilson v. American Family Mutual Insurance Co., No. WD77396, Mo. App., Western Dist.; 2015 Mo. App. LEXIS 552).

    Mealey's PI/Product Liability - Judge: Implied Warranty Claims Against Pella Over Windows Are Untimely

    CHARLESTON, S.C. - A federal judge in South Carolina on May 19 dismissed as untimely a couple's claim contending that Pella Corp. breach the implied warranty of its Designer Series window, after finding that the doctrine of equitable tolling did not apply to the plaintiffs' allegations (In re: Pella Corporation Architect and Designer Series Windows Marketing, Sales Practices and Products Liability Litigation, MDL 2514, 14-mn-1, Brian Walters, et al. v. Pella Corporation, No. 14-cv00544, D. S.C.; 2015 U.S. Dist. LEXIS 65032).

    Mealey's IP/Tech - 9th Circuit Partly Affirms, Partly Vacates Copyright Holdings

    SAN FRANCISCO - Although a California federal magistrate judge abused his discretion by "categorically" denying a prevailing copyright infringement plaintiff her full request for attorney fees, he properly denied a motion for sanctions by the plaintiff in connection with alleged evidence spoliation, the Ninth Circuit U.S. Court of Appeals ruled May 19 (Victoria Ryan v. Editions Limited West, et al., Nos. 12-17810, 13-15061, 9th Cir.; 2015 U.S. App. LEXIS 8199).

    Mealey's PI/Product Liability - Pella Windows MDL Judge Dismisses Portion Of Class Action Lawsuit

    CHARLESTON, S.C. - The federal judge in South Carolina overseeing litigation claiming that Pella Corp.'s Architect and Designer series windows are defective on May 19 dismissed without prejudice portions of a class action lawsuit seeking relief for breach of implied warranty, negligence, declaratory judgment and violation of the Wisconsin Deceptive Trade Practices Act (WDTPA) (In re: Pella Corporation Architect and Designer Series Windows Marketing, Sales Practices and Products Liability Litigation, MDL 2514, 14-mn-1, Ted Naparala Sr., et al. v. Pella Corp., et al., No. 14-cv-03465, D. S.C.; 2015 U.S. Dist. LEXIS 65025).

    Mealey's PI/Product Liability - Cook Pelvic Mesh MDL Judge Stops Bellwethers, Orders Cases Readied For Transfer

    CHARLESTON, W.Va. - Saying bellwether cases are not effective, the West Virginia federal judge overseeing the Cook Medical Inc. pelvic mesh multidistrict litigation ordered the parties to get 253 of the remaining 381 cases ready for transfer and trial by the end of the year (In Re: Cook Medical, Inc. Pelvic Repair System Products Liability Litigation, MDL Docket No. 2440, No. 2:13-md-2440, S.D. W.Va., Charleston Div.).

    Mealey's Toxic Tort/Environmental - Judge Finds Military Claims Put Power-Unit Company On Notice Of Removability

    ST. LOUIS - Allegations that a woman suffered take-home asbestos exposures arising from her father's work with military equipment put a manufacturer on notice that it could remove the action, regardless of the source of other alleged exposures, a federal judge held May 12 in remanding the case (Shandi L. Speedy and Billy Speedy v. 3M Co., et al., No. 15-391, S.D. Ill.).

    Mealey's IP/Tech - 4th Circuit Vacates Injunction, Says NAACP Trademark Not Infringed

    RICHMOND, Va. - A Virginia federal judge's injunction barring two trademark infringement counterclaim defendants from using the "NAACP" trademark was vacated May 19 by the Fourth Circuit U.S. Court of Appeals, which remanded with instructions to dismiss the counterclaim (The Radiance Foundation, et al. v. National Association for the Advancement of Colored People, et al., No. 14-1568, 4th Cir.; 2015 U.S. App. LEXIS 8203).

    Mealey's PI/Product Liability - Arkansas, Janssen Settle Risperdal Suit For $7.75M

    LITTLE ROCK, Ark. - Arkansas' Risperdal marketing lawsuit against the Janssen Pharmaceutical Inc. subsidiary of Johnson & Johnson has been tentatively settled for $7.75 million, according to a state court order issued May 18 (State of Arkansas, ex rel. Leslie Rutledge, et al. v. Ortho-McNeil-Janssen Pharmaceuticals, Inc., et al., No. 60Cv-07-15345, Ark. Cir., Pulaski Co., 6th Div.).

    Mealey's PI/Product Liability - Takata Acknowledges Problems With Air Bags, Expands Recall In NHTSA Consent Order

    WASHINGTON, D.C. - TK Holdings Inc., parent company of air bag manufacturer Takata Corp., entered into a consent order with the National Highway Traffic Safety Administration (NHTSA) May 18 acknowledging problems with inflators in its air bags and expanding its recall of air bags to 34 million vehicles (In re: EA 15-001 Air Bag Inflator Rupture, U.S. DOT, NHTSA).

    Mealey's Insurance - Indiana High Court Denies Review On Application Of 'Pro Rata' Allocation Method

    INDIANAPOLIS - The majority of the Indiana Supreme Court on May 15 refused to review an appellate court's application of a "pro rata" method of allocation rather than an "all sums" method of allocation to a dispute over coverage for an underlying suit alleging bodily injury as a result of exposure to organic solvent at an insured's manufacturing plant (Thomson Inc., n/k/a Technicolor USA Inc., v. Insurance Company of North America n/k/a Century Indemnity Co., et al., No. 49A05-1109-PL-470, Ind. Sup.; 2015 Ind. LEXIS 397).

    Mealey's Health Law - 7th Circuit Rejects Preliminary Injunction In ACA Opt-Out Challenge

    CHICAGO - Notre Dame is not entitled to a preliminary injunction while it challenges the opt-out provision of the Patient Protection and Affordable Care Act (ACA)'s contraceptive mandate, a divided Seventh Circuit U.S. Court of Appeals held May 19 (University of Notre Dame v. Kathleen Sebelius, et al., No. 13-3853, 7th Cir.).

    Mealey's Labor & Employment - Split Louisiana Panel Vacates Ruling For City In Retirement Benefits Dispute

    GRETNA, La. - A split Louisiana appellate panel on May 14 vacated a trial court's grant of summary judgment in favor of a Louisiana city in a class lawsuit filed by firefighters over changes to pension contributions (Michael Dunn, et al. v. City of Kenner, No. 14-CA-113, La. App., 5th Cir.; 2015 La. App. LEXIS 937).

    Mealey's Litigation Procedure - Indiana Magistrate Says Default Sanction In Copyright Case Warranted

    INDIANAPOLIS - Although noting that entry of a default judgment in response to discovery abuses is an "extreme" and "draconian" measure, an Indiana federal magistrate judge on May 18 nonetheless found that conduct by two copyright infringement defendants "warrants the harshest of sanctions" (Malibu Media LLC v. Kelley Tashiro and N. Charles Tashiro, No. 13-205, S.D. Ill.; 2015 U.S. Dist. LEXIS 64281).

    Mealey's Labor & Employment - California Federal Magistrate Recommends Class Certification In FedEx Wage Suit

    FRESNO, Calif. - A California federal magistrate judge on May 15 recommended certifying a class of FedEx Freight Inc. drivers alleging various wage-and-hour violations (Roy D. Taylor, et al. v. FedEx Freight, Inc., et al., No. 13-1137, E.D. Calif.; 2015 U.S. Dist. LEXIS 64177).

    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.).