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Case Summaries

Insurance Law

[03/12] Travelers Prop. Cas. Co. of America v. Hillerich & Bradsby Co., Inc.
In plaintiff-insurers' action seeking reimbursement for their settlement contribution against its insured arising from an underlying lawsuit for antitrust violation and tortious interference with contract and with other business relations, district court's judgment is affirmed in its entirety where: 1) Kentucky will allow reimbursement for an insurer after a unilateral reservation of rights by the insurer over the objection of the insured in at least the narrow circumstances posed in this case and in cases such as Blue Ridge; 2) the district court did not err in finding that disparagement was not part of the underlying litigation at the time of the settlement, and thus, plaintiff is entitled to reimbursement of the settlement funds paid on behalf of the defendant; 3) the district court was correct in determining that plaintiff's duty to defend was triggered on November 8, 1999, the date the First Amended Complaint was docketed; and 4) the district court did not abuse its discretion in determining the damages and pre-judgment interest awarded.

[03/10] Abdelhamid v. Fire Ins. Exch.
In homeowner's action against her insurance company after it denied coverage to her for the fire that burned her house down, summary judgment in favor of the insurance company is affirmed as the trial court did not err in granting summary judgment on the breach of contract claim as plaintiff's failure to comply constituted material breach of her contractual duties.

[03/10] Scottsdale Ins. Co. v. Century Surety Co.
In an action against defendant-insurance company seeking equitable contribution based on defendant's failure to participate in the defense of 17 common insureds in hundreds of actions in which plaintiff and another insurer shared the costs of the defense, judgment of the trial court determining the equitable contribution is reversed as it was in conflict with the general rule (now to be applicable in insurance cases) that, in order to be entitled to equitable contribution, a party must have first paid more than its share of the loss and it bears the burden of proving such circumstance.

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Transportation

[03/10] Fortis Corp. Ins. SA. v. Viken Ship Mgmt. AS
In a maritime shipping case involving a claim for rust damage to steel coils caused by exposure to seawater during a journey from Poland to Ohio, judgment of the district court is affirmed where: 1) a ship manager charged with providing a Master, officers and crew, and performing various other ship-management tasks for the shipping vessel does not qualify as a "carrier" under the Carriage of Goods by Sea Act (COGSA), and thus the COGSA's one year-statute of limitations does not bar the underlying suit; and 2) defendant's claim that the district court's finding of negligence was based on clearly erroneous factual findings is rejected.

[03/02] Bhd. of Maint. of Way Employees' Div. v. Burlington Northern Santa Fe Railway Co.
In an action by a union claiming that a railroad's proposed sale of a portion of its rail line to the state violated the Railway Labor Act (RLA), dismissal of the action is affirmed where the RLA reserved the dispute in this case to the Adjustment Board in the first instance, thus depriving the district court of jurisdiction, and the workers' remedy thus lay in the administrative process before the Adjustment Board.

[02/26] Pasternack v. NTSB
In a petition for review of the FAA's revocation of petitioner's airman certificates on the ground that petitioner refused to take a mandatory drug test, the petition is granted where the FAA erred by relying on an "implicit credibility determination" by the Administrative Law Judge (ALJ), when in fact the ALJ made no such credibility determination.

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