News & Analysis as of

September 2015: Product Liability Litigation Update

Ninth Circuit Restricts Scope of CAFA’s “Local Single Event” Exception. In Allen v. Boeing Co., 784 F.3d 625 (9th Cir. 2015), the Ninth Circuit recently held that a case did not fall within the Class Action Fairness Act’s...more

Judge Consolidates Design Defect Claims for Trial in Ethicon Mesh

Judge Goodwin, who oversees the Ethicon mesh pelvic repair system multidistrict litigation in West Virginia, has consolidated 26 actions for trial on the issues of design defect, negligent design, and strict liability. The...more

Perspectives - September/October 2015

In a decision in which no opinion commanded a majority, the Ohio Supreme Court sided with a private entity — a charter school operator — in a dispute over the ownership of personal property purchased by the operator with...more

Five Advantages to Section 18 – A New Weapon for Institutions

Section 18 of the Securities Exchange Act, while seldom used in the past, has been increasingly used by institutional investors in suits against banks and other entities. The advantages of Section 18 are as follows...more

Accidentally On Purpose: Washington Court Finds Coverage For Contempt Of Court Based On “Misunderstanding”

Professional liability policies cover claims based on the insured’s alleged negligent acts, errors or omissions, and not claims for “sanctions or penalties” for “willful” professional misconduct. But the insurer’s duty to...more

Evolving Litigation of Data Breach Claims

An Illinois circuit court judge has dismissed five of six claims in a consolidated class action against Advocate Health and Hospital Corporation arising from a data breach in July 2013. The judge’s dismissal with prejudice...more

Class In Session: Minnesota Federal Court Certifies Class In Target Corporation Data Breach Suit

On September 15, 2015, a federal district court in Minnesota granted a motion for class certification of hundreds of credit unions and banks in an action against Target Corporation for damages stemming from the breach of...more

Excellus Blue Cross Blue Shield sued for data breach announced last week

Within days of Excellus Blue Cross Blue Shields’ (Excellus) announcement that its data had been accessed by a hacker through a “sophisticated” cyber-attack, two law firms teamed up to file a proposed class action suit last...more

SDNY Sacks Treanda Failure to Warn Claim

Failure to warn cases remind us of sports talk radio and paleontology. Especially on Monday mornings in the Fall, Philly sports talk radio is a festival of woe and recrimination. The Iggles are terrible, their deficiencies...more

Fourth Circuit: Business Judgment Rule May Not Protect Bank Officers in FDIC Action

Why it matters - Bank officers may be liable in a lawsuit brought by the Federal Deposit Insurance Corp. (FDIC) while the directors escaped liability, in a new ruling from the Fourth Circuit Court of Appeals interpreting...more

Gatekeeper Liability of Inside Asset Management Attorneys "Appearing" Before the SEC

This article addresses the liability of inside attorneys at asset management companies— mutual fund sponsors, investment advisers, broker-dealers, life insurance companies—as gatekeepers under rules of the US Securities and...more

CA Appeals Court Orders Defendant to Pay Plaintiff’s Expenses in Proving Negligence

On September 15 the California Court of Appeal ordered publication of its previously unpublished opinion in Grace v. Mansourian. This opinion awarded costs to the plaintiff in a personal injury action based upon the...more

Products Liability – Raw Material Supplier – Consumer Expectations Test

David Johnson, et al. v. United States Steel Corporation - Court of Appeal, First District (September 1, 2015) - In a products liability case, a plaintiff may seek recovery on theories of both negligence and...more

Bad Faith Sentinel - September 2015

Kennedy v. Allstate, No. 15-2221 (E.D. Pa. July 8, 2015). District Court recognizes possibility that insurance adjusters owe a duty of care to insureds that would be breached by failing to conduct a reasonable...more

Financial Institutions Make History In Target Mdl, First Class Action Certified In Federal Court To Litigate Security Breach...

Before September 15, 2015, no federal court had certified a class action to litigate security breach claims. But now U.S. District Court Judge Paul A. Magnuson, overseeing the In re: Target Corporation Customer MDL, has...more

Advocate Health class action lawsuit trimmed

Last week, an Illinois judge dismissed with prejudice five of the six claims levied against Advocate Health Care in a consolidated case of ten cases filed against it following the data breach it experienced in July of 2013...more

Ashley Madison data breach update

Anonymous users of the almost 40 million users of the Ashley Madison website have filed suit against internet service providers (ISPs) GoDaddy and Amazon alleging that they have been damaged because the ISPs hosted the stolen...more

State Appellate Court Considers Employer’s Duty to Conduct Criminal Background Checks

In the last few years, there has been a significant spike in the number of lawsuits challenging employer use of criminal background checks, including class action lawsuits brought under the federal Fair Credit Reporting Act. ...more

In Canada, Foreign Workers Seek to Use International Norms as the Standard of Care in Negligence Claims Against Multinationals...

Non-Canadian workers are increasingly suing their employers in Canadian courts for human rights violations allegedly committed outside Canada by the companies themselves or by other entities in their supply chains. This...more

Auto Accident Attorney | What Causes Car Accidents?

As an auto accident attorney in Mesa, AZ, I want to give you some insights on what I have found over the years with regard to auto accidents. Car accidents are often caused by driver negligence, or a problem/defect with one...more

California Court of Appeal affirms vitality of California’s Right to Repair Act (SB 800) against construction defect claims

The California Court of Appeal, Fifth District, issued a published opinion last week holding that California’s Right to Repair Act (Act, commonly known in the homebuilding industry as SB 800, applies to all claims by...more

Hut, Hut, Phlmph — Florida Judge Denies Dismissal of Tax on Delivery Charges Lawsuit

In the latest development in the Florida litigation regarding the taxation of delivery charges, Judge Jack Tuter of the 17th Judicial Circuit Court of Florida determined that the complaint against Pizza Hut was sufficient to...more

Eastern District of Pennsylvania: Insureds’ Negligence And Unfair Trade Practices Claims Against Adjusters Are Colorable Under...

Kennedy v. Allstate, No. 15-2221 (E.D. Pa. July 8, 2015). District Court recognizes possibility that insurance adjusters owe a duty of care to insureds that would be breached by failing to conduct a reasonable...more

Citing Erosion of the Privity Doctrine, California Court Permits Homeowner to Pursue Subcontractor for Damages Despite Lack of...

The California Court of Appeals, Second Appellate District, recently held that a building materials supplier owed a duty to a homeowner despite a lack of privity between the two. In Prince v. Thompson Building Materials, 2015...more

CFPB Wins MTD, But Loses on Scienter Standard for Aiding-and-Abetting Claims

A federal judge has rejected the CFPB’s argument that the CFPA should incorporate a lower standard for “recklessness” than that to secondary liability under the Securities and Exchange Act of 1934 (“SEC Act”). On September 1,...more

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