Legal News

Case Summaries

Admiralty

[06/25] Crescent Towing & Salvage Co. v. Chios Beauty MV
In an action for damages sustained when defendant's ship collided with plaintiffs' barges and tugboats during Hurricane Katrina, partial judgment for plaintiff is affirmed in part where the district court did not clearly err in its finding of a predicted "direct hit" on New Orleans by the hurricane, its factual findings based on this finding, and the ultimate finding of negligence to the extent that it relied upon this finding. However, the matter is remanded where the district court needed to enter an order setting the total amount of recovery plaintiffs could recover in rem.

[06/21] Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp.
In an action based on the alleged destruction of goods being shipped, the Ninth Circuit's reversal of the district court's dismissal of the action based on the fact that the parties' contract designated a Tokyo court as the venue for any dispute is reversed where, because the Carmack Amendment does not apply to a shipment originating overseas under a single through bill of lading, the parties' agreement to litigate these cases in Tokyo is binding.

[05/13] Valladolid v. Pac. Ops. Offshore, LP
In a petition for review of the denial of workers' compensation benefits under the Outer Continental Shelf Lands Act (OCSLA) and the Longshore and Harbor Workers' Compensation Act (LHWCA) based on an injury on an offshore drilling platform, the petition is granted in part where: 1) the most natural reading of the OCSLA provided coverage for any injury caused by outer continental shelf operations regardless of where the injury occurred; 2) Congress intended to provide LHWCA coverage regardless of the applicability of state law; and 3) the OCSLA claimant must establish a substantial nexus between the injury and extractive operations on the shelf. However, the petition is denied in part where petitioner was not entitled to LHWCA benefits, on the ground that the drilling platform's use as a convenient dumping ground for scrap metal did not convert it into a maritime situs.

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Commercial Law

[06/28] Bilski v. Kappos
In a patent application seeking protection for a claimed invention explaining how commodities buyers and sellers in the energy market could protect, or hedge, against the risk of price changes, the denial of the application is affirmed where: 1) the machine-or-transformation test is not the sole test for patent eligibility under 35 U.S.C. section 101; 2) Section 101 precluded a reading of the term "process" that would categorically exclude business methods; and 3) even though petitioners' application was not categorically outside of section 101 under the two atextual approaches the Court rejected today, that did not mean it was a "process" under section 101.

[06/25] Rathborne Land Co. v. Ascent Engy., Inc.
In an action for breach of defendant's obligations to reasonably develop and explore a leased parcel of oil, gas, and mineral land, judgment for plaintiff is affirmed in part where: 1) plaintiff's letter to defendant met the La. Rev. Stat. Ann. section 31:136 demand requirement; and 2) district court did not clearly err in concluding that plaintiff would have been able to lease the disputed acreage more than once if it had been able to seismically survey the parcel prior to 2006. However, the judgment is vacated in part where neither the district court nor plaintiff could show an adequate ground -- indeed, any relevant precedent -- for awarding consequential damages for lost leasing and seismic revenues on the entire parcel.

[06/25] Bagby Elevator Co. v. Schindler Elevator Corp.
In an action for tortious interference with contract, judgment for plaintiff is affirmed where: 1) under the court's highly deferential standard of review, there was no reversible error in the district court's decision to use the pattern jury instruction; 2) there was sufficient evidence of both malice and gross negligence to support an award of exemplary damages; and 3) there was ample evidence of causation to support the verdict.

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Injury & Tort Law

[06/25] Lal v. State of Cal.
In an action against the California Highway Patrol and certain officers for the shooting death of plaintiff's husband, dismissal of the action with prejudice under Federal Rule of Civil Procedure 41(b) for failure to prosecute when her attorney failed to meet deadlines and attend hearings is reversed where an attorney's gross negligence constituted an extraordinary circumstance warranting relief from a judgment dismissing the case for failure to prosecute under Rule 41(b).

[06/24] DDJ Mgmt., LLC v. Rhone Group L.L.C.
In an action claiming that defendants presented plaintiffs with corporate financial statements that were false and misleading, the appellate division's modification of the trial court's order dismissing plaintiffs' fraud claim is reversed where: 1) when a plaintiff has taken reasonable steps to protect itself against deception, it should not be denied recovery merely because hindsight suggested that it might have been possible to detect the fraud when it occurred; and 2) plaintiffs in this action for fraud have alleged facts from which a jury could find that they were justified in relying on the representations defendants made to them.

[06/18] Wal-Mart Stores, Inc. v. Merrell
In plaintiffs' wrongful death and survival claims against Wal-Mart for the death of their son from smoke inhalation, claiming that a halogen lamp purchased from Wal-Mart caused the fire, the court of appeals' reversal of the trial court's grant of defendant's motion for summary judgment on the ground that plaintiffs produced evidence on each challenged element of their cause of action is reversed as, plaintiff's expert's testimony was legally insufficient to support causation.

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Insurance Law

[06/25] Lincoln Nat'l Life Ins., Co. v. Bezich
A petition for permission to appeal, arising from the district court's remand of plaintiff's class action lawsuit against an insurer for breach of contract claims on the basis that CAFA's exception to federal jurisdiction for the action applied, is dismissed for lack of jurisdiction as plaintiff's claim "related to the rights, duties,...and obligations relating to or created by or pursuant to...a security," as defined in the Securities Act of 1933.

[06/24] Durakovic v. Bldg. Serv. 32 BJ Pension Fund
In an ERISA challenge to a union disability-benefits denial, dismissal of the complaint is reversed where: 1) a fund organized pursuant to 29 U.S.C. section 186(c)(5) is conflicted within the meaning of Metropolitan Life Insurance Company v. Glenn, 128 S. Ct. 2343 (2008); 2) the district court should have accorded the conflict in this case more weight; and 3) no rational trier of fact could have failed to conclude that the benefits denial was arbitrary and capricious.

[06/23] Insurance Co. of N. Am. v. Pub. Serv. Mut. Ins. Co.
In an appeal from the district court's order granting respondent's Fed. R. Civ. P. 60(b)(2) motion based on newly discovered evidence that an arbitrator who had resigned was, in fact, able to rejoin the arbitration panel prior to the district court's decision on whether to convene a new panel or order a replacement arbitrator, the order is affirmed where: 1) the rule articulated in Marine Products Export Corp. v. M.T. Globe Galaxy, 977 F.2d 66 (2d Cir. 1992) ? that, absent "special circumstances," if a vacancy arises on an arbitral panel due to the death of an arbitrator prior to the rendering of an award, a new panel should be convened ? does not apply to a vacancy occasioned by a resignation; and 2) in the instant case, the district court's decision either to reappoint the arbitrator who had resigned, or, in the alternative, to direct petitioner to appoint a replacement was proper pursuant to 9 U.S.C. section 5.

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