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August 31, 2009
CHICAGO - An Seventh Circuit U.S. Court of Appeals panel on Aug. 7 affirmed a lower court confirmation of an arbitration award in a dispute between a pair of insurers regarding certain insurance and reinsurance business purchases and held that the arbitration need not begin anew after an arbitrator was replaced even though there was no replacement provision in the arbitration clauses in the purchase agreements (Wellpoint, Inc., et al., v. John Hancock Life Insurance Company, No. 08-2283, 7th Cir.).
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NEW ORLEANS - A federal magistrate judge in Louisiana on Aug. 7 ordered a company accused of violating the Fair Labor Standards Act (FLSA) to conduct a search of its electronically stored information using search terms provided by plaintiffs because the results are more likely to provide information the plaintiffs need to respond to the company’s motion for summary judgment (In re: Directech Southwest Inc., Fair Labor Standards Act Litigation, MDL No. 1984, Case No. 08-md-1984, E.D. La.; 2009 U.S. Dist. LEXIS 69142).
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JACKSON, Miss. - A federal judge in Mississippi on Aug. 6 and Aug. 10 dismissed a distributor from a lawsuit brought by direct purchasers of oriented strand board and plywood that alleged a price-fixing conspiracy in violation of Section 1 of the Sherman Act and dismissed the claims based on plywood purchases; however, the judge granted the purchasers leave to amend their claims regarding the plywood conspiracy (Bailey Lumber & Supply Co., et al. v. Georgia-Pacific Corp., et al., No. 08-1394, S.D. Miss.; 2009 U.S. Dist. LEXIS 68677).
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BOISE, Idaho - A bellwether trial for crop damage from the drift of a sulfonylureas herbicide applied to Bureau of Land Management rangeland ended Aug. 24 with a verdict for four farmers selected to test their claims and the award of approximately $9 million in compensatory damages (Timm Adams, et al. v. United States, No. 03-49, D. Idaho).
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SAN FRANCISCO - A federal judge in California on July 27 granted seven motions to dismiss filed by lenders and loan servicers who are alleged to have engaged in a scheme to solicit high-risk adjustable-rate mortgages (ARMs) to elderly, minority and financially distressed homeowners, ruling that the homeowners involved in the massive class action lawsuit have failed to properly state their claims (Mark Biggins, et al. v. Wells Fargo & Co., et al., No 09-01272, N.D. Calif.; 2009 U.S. Dist. LEXIS 64620). View today’s headlines and listen to the latest podcast at www.lexisnexis.com/legalnews Do you have news to share? Interested in writing a commentary article? Email the Mealey News Desk at Mealeys@LexisNexis.com
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DENVER - Medical monitoring is not available under the Price-Anderson Act for latent radiation exposure injuries, a 10th Circuit U.S. Court of Appeals panel said Aug. 21, but one of the members dissented and would have overturned summary judgment for plaintiffs with diagnosed thyroid disease (Gary June, et al. v. Union Carbide Corp., No. 07-1532, 10th Cir.; 2009 U.S. App. LEXIS 1886).
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LOS ANGELES - In a second trial on punitive damages, a California jury awarded $13.8 million on Aug. 24 to the daughter of a deceased smoker who had sued the manufacturer of the cigarettes she smoked for 45 years; the award, while significant, is a fraction of the $28 billion in punitive damages a jury handed her after the original trial in 2002 (Jodie Bullock v. Philip Morris USA, Inc., et al., No. BC249171, Calif. Super., Los Angeles Co.).
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WASHINGTON, D.C. - An arbitrator for the International Centre for Settlement of Investment Disputes (ICSID) on July 28 found that a Greek contractor’s actions before Albanian courts, in relation to losses it suffered at a work site in Albania, foreclosed arbitration under a bilateral investment treaty and ruled that the contractor failed to show that Albania did not provide it with full protection and security of its investment (Pantechniki S.A. Contractors & Engineers [Greece] v. The Republic of Albania, No. ARB/07/21, ICSID).
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NEWARK, N.J. - The insurance brokerage antitrust multidistrict litigation judge on July 24 denied Marsh & McLennan Cos. Inc.’s motion to enforce final judgment and to enjoin the pursuit of two state court ligations by settlement class members (In re Insurance Brokerage Antitrust Litigation, No. 04-5184, D. N.J.; 2009 U.S. Dist. LEXIS 65029; See July 2009, Page 4).
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BOSTON - A Massachusetts judge had the authority to order attorney fees imposed against attorneys who brought a “baseless” lawsuit alleging a sham insurance claim investigation but was not authorized to order fees against the litigants, the Massachusetts Appeals Court held Aug. 18 (Dmitry Tilman, et al. v. David O. Brink, et al., No. 08-P-498, Mass. App., 2009 Mass. App. LEXIS 1082).
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