What's New in the Courts

Third Circuit Clarifies Local Controversy Requirements for Remand under CAFA. Plaintiffs originally filed a class action in the Superior Court of New Jersey against six automobile insurance providers. Three New Jersey insurers were voluntarily dismissed; at the time of removal, the remaining defendants were Allstate NJ, a New Jersey corporation, and GEICO and Liberty, which were not. The proposed class for equitable relief includes “all persons currently insured by Defendants under a policy...

Fifth Circuit Vacates Denial of Benefits for Failure to Employ Appropriate Claim Review Process. After suffering a heart attack, the plaintiff was placed in a nursing home. Initially, Blue Cross agreed to pay the costs, but then later changed its mind. The plaintiff’s claim for continued benefits turned on whether his care at a nursing home qualifies as Skilled Nursing Care, which is covered, or Custodial Care, which is not. Addressing the plaintiff’s Substantial Compliance argument, the Fi...

Presidential Memo Curtails Efforts to Effectuate Preemption thru Regulatory Agencies. The White House released a Presidential Memo “to ensure that executive departments and agencies include statements of preemption in regulations only when such statements have a sufficient legal basis.” (1) Heads of departments and agencies should not include in regulatory preambles statements that the department or agency intends to preempt State law through the regulation except where preemption provisions...

Magistrate in District of New Jersey Holds that Right to Production in Native Format Can Be Waived. Where plaintiff had produced electronically-stored information (or ESI) in .TIFF format, defendant brought a motion to compel. Magistrate Salas, sitting in the District of New Jersey, generally embraced Sedona Principle 12, which provides that: “Absent party agreement or court order specifying the form or forms of production, production should be made in the form or forms in which the informati...