Ashley St. Clair Must Face X.AI’s Contract Claims Over Grok Images, Judge Says
WICHITA FALLS, Texas — A woman suing various Elon Musk companies after their Grok artificial intelligence platform allegedly created explicit images of her must face the companies’ breach of contract claims resulting from her decision to sue in New York rather than Texas as dictated by the terms of service, a federal judge in Texas said in denying her motion to dismiss on Oct. 20.
Divided ICSID Tribunal Awards Mining Investor $148M Against Peru
WASHINGTON, D.C. — The International Centre for Settlement of Investment Disputes (ICSID) on Oct. 20 published a divided tribunal’s partly redacted award in which it awarded a Dutch mining investor $141.2 million in compensation and $7.6 million in attorney fees and legal expenses plus interest for harming its investment and refusing to waive penalties on tax and royalty assessments, thereby depriving it of dividends, with the claimant’s arbitrator dissenting in part on the grounds the investor should have been awarded more compensation.
Split Tribunal Finds No Jurisdiction Over Claims For Harm To Portuguese Bank Loan
WASHINGTON, D.C. — The International Centre for Settlement of Investment Disputes (ICSID) on Oct. 20 published a split tribunal’s award dismissing for lack of jurisdiction a claim brought by three Mauritian investors against the Portuguese Republic for harming their investment in a bank loan after finding that the investors are pursuing contradictory claims in Portuguese courts, while the dissenting arbitrator said the award was procedurally improper.
Insurer Has Duty To Defend Negligent Supervision Claim, Minnesota Panel Affirms
ST. PAUL, Minn. — A Minnesota appeals court affirmed a lower court’s ruling that an insurer has a duty to defend its insured against an underlying negligent supervision claim arising from an altercation between two of the insured’s employees, concluding that it is at least arguable that the negligent supervision claim satisfied the insurance policy’s requirement that the bodily injury must both arise out of and be in the course of the employee’s employment with the insured.
Mass. Panel Won’t Disturb Rulings In Presumptive Total Disability Benefits Case
BOSTON — Resolving cross-appeals in a presumptive total disability insurance case where the claimant partly prevailed after a jury trial and a bench trial, the Massachusetts Appeals Court issued a summary decision declining to disturb any of the challenged rulings but concluding that the claimant was entitled to unspecified attorney fees and expenses in defending against the insurer’s appeal as to a state law claim.
Split 4th Circuit Upholds Bias Ruling For Gay Worker Denied Spousal Benefits
RICHMOND, Va. — Affirming judgments in favor of a Maryland man who alleged that his religious employer violated federal and state discrimination laws by terminating dependent health insurance benefits for his same-sex spouse, a split Fourth Circuit U.S. Court of Appeals panel held that neither state nor federal statutes nor the First Amendment to the U.S. Constitution “provide such broad immunity” to shield the employer “from liability because its discriminatory action is rooted in its sincerely held religious beliefs.”
Certiorari Granted In Challenge To COVID-Era Magnet School Lottery Admissions
WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 19 granted certiorari in an organization’s challenge of a Montgomery County, Md., magnet middle school’s admissions criteria adopted during the COVID-19 pandemic for an admissions lottery as opposed to in-person testing; the organization asserted that the COVID-era lottery system made it more difficult for Asian-American students in high-performing, low-poverty elementary schools to access the lottery.
High Court Seeks Retiree Responses To 3 Similar ERISA Cert Petitions
WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 19 asked retirees to respond to three certiorari petitions filed over two similar rulings that revived putative class suits on the grounds that the Employee Retirement Income Security Act requires the use of “reasonable” actuarial assumptions when calculating certain pension benefits.
9th Circuit Remands Coverage Suit After Arizona High Court Sets Fortuity Standard
PHOENIX — After the Arizona Supreme Court answered a certified question in a case regarding structural damage insurance coverage and set the fortuity standard, a Ninth Circuit U.S. Court of Appeals panel vacated a trial court’s summary judgment ruling for the insurer and remanded the case for further proceedings under the Arizona Supreme Court’s newly articulated standard.
Classes Wrongly Certified In Tesla Self-Driving Suit, 9th Circuit Says
SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel vacated a California federal judge’s ruling certifying three classes of drivers suing Tesla Inc. and its affiliates for unfairly marketing cars as having “self-driving” technology in violation of California’s unfair competition law (UCL) and other laws, writing that the lower court “erred by inferring” that an entire class was exposed to allegedly deceptive statements by Tesla regarding the ability of hardware in its cars to provide full self-driving (FSD).
Washington Federal Judge Says Appraisal Of Water Damage Claim Is Appropriate
SEATTLE — A Washington federal judge on Oct. 19 granted a motion to compel appraisal filed by insureds in a water damage coverage dispute, rejecting a homeowners insurer’s argument that appraisal is not appropriate because the parties have not agreed on what needs to be repaired or replaced in the home.