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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. 2018 NY Slip Op 28137
Regular Panel Decision
Apr 27, 2018

Matter of Xerox Corp. Consolidated Shareholder Litig.

The case concerns a proposed transaction where Fujifilm Holdings Corp. would acquire a 50.1% controlling interest in Xerox Corp. for no cash payment to Xerox shareholders. Major Xerox shareholders, including Darwin Deason and several pension funds, sought preliminary injunctions, alleging that Xerox CEO Jeff Jacobson was conflicted during negotiations, prioritizing his self-interest in retaining his CEO position, and that the Xerox Board failed its fiduciary duties by approving a deal disproportionately favorable to Fuji. The court found a likelihood of success on claims that Jacobson breached his fiduciary duties and that the Board failed to properly supervise him, leading to a "cashless acquisition" for Fuji, which the court stated "enabled Fuji to 'take control of Xerox without spending a penny.'" Consequently, the court granted preliminary injunctions, enjoining the proposed transaction and mandating the waiver of Xerox's advance notice bylaw deadline to allow shareholders to nominate an alternative slate of directors, allowing shareholders a fair opportunity to consider nominations given the material, post-deadline changes and the egregious terms of the proposed control transfer.

Shareholder LitigationPreliminary InjunctionFiduciary Duty BreachCorporate GovernanceMerger and AcquisitionAdvance Notice BylawProxy ContestConflicted CEOBoard of DirectorsCorporate Control
References
20
Case No. MISSING
Regular Panel Decision

Employers' Liability Assur. Corp. v. Williams

J. H. Williams, an employee, sustained an injury in September 1924 while working for American Construction Company, an insured employer under the Texas Employers’ Liability Act. He initially received weekly compensation payments from Employers’ Liability Assurance Corporation, Limited. After payments ceased, Williams sought a lump sum award from the Industrial Accident Board, which was granted in June 1925. The assurance corporation subsequently sued in the district court of Galveston county to set aside this award. Williams cross-petitioned for total and permanent disability and a lump sum payment due to manifest hardship. A jury found Williams totally and permanently disabled, and the court sided with Williams, awarding him and his attorneys, Morris, Sewell & Morris, a lump sum of $6,032.15. The assurance corporation appealed this judgment, contesting the finding of total permanent disability and the lump sum award. The appellate court affirmed the lower court's decision, finding sufficient evidence to support the jury's findings and noting the appellant's failure to follow legal procedures regarding a surgical operation demand.

Workers' CompensationTotal Permanent DisabilityLump Sum SettlementIndustrial Accident BoardAppellate ReviewMedical Expert TestimonyJury FindingsEmployer LiabilitySurgical InterventionManifest Hardship
References
6
Case No. MISSING
Regular Panel Decision

Romney v. Lin

This opinion addresses an action to collect unpaid contributions owed by Goodee Fashions, Inc. to four union benefit funds, totaling $70,647.17. After an initial judgment against Goodee Fashions proved uncollectible, the plaintiff, representing the union benefit funds, sued Alan Lin, a principal shareholder, under New York Bus. Corp. Law § 630. This state law holds the ten largest shareholders jointly and severally liable for debts to employees, including benefit funds. Defendant removed the case to federal court, arguing preemption by ERISA and LMRA. The court denied the plaintiff's motion to remand and granted the defendant's motion to dismiss, ruling that N.Y. Bus. Corp. Law § 630 is preempted by ERISA. Consequently, the claim for $70,647.17 was dismissed, except for a $598.27 portion related to the Sportswear Industry Trust Fund, which was deemed not an ERISA fund.

ERISA PreemptionLMRAShareholder LiabilityUnpaid ContributionsEmployee Benefit PlansCollective BargainingState Law PreemptionFederal JurisdictionCorporate DebtDismissal
References
11
Case No. MISSING
Regular Panel Decision

Jones v. Orenstein

This is a class action brought by shareholders of Topper Corporation against the corporation and various defendants, including Arthur Young & Company, alleging violations of federal securities laws due to false and misleading financial information. Defendant Arthur Young & Company moved to quash the plaintiffs' jury demand, asserting the case's complexity rendered it unsuitable for a jury, and alternatively sought a single, continuous trial for liability and damages. The Court, presided over by District Judge Bonsal, recognized the plaintiffs' Seventh Amendment right to a jury trial. Consequently, the Court denied Arthur Young's motion to quash the jury demand, concluding that the case, estimated to last six to eight weeks, was within a jury's capabilities. Additionally, the motion to mandate a continuous trial was denied, with the Court leaving open the possibility of bifurcating the trial on liability and damages at a later stage if needed.

Securities FraudClass ActionJury TrialFederal Rules of Civil ProcedureSeventh AmendmentDue DiligenceFinancial MisrepresentationAuditing ProceduresUnderwriting ProceduresTrial Bifurcation
References
11
Case No. 06-15-00051-CV
Regular Panel Decision
Mar 23, 2015

Mary Flentge McAuley, Willie O. Flentge, Jr., and Charles Ray Flentge v. Carl Dean Flentge, Independent of the Estate of Laverna Flentge, Carl Dean Flentge, David Flentge and Daniel Junek, Independent of the Estate of Willie Otto Flentge, Sr., Individually, and as Shareholders and on Behalf of W.L. Ranch, Inc

The case involves a shareholder derivative suit and declaratory judgment action. Cross-Appellants, who are majority shareholders, are appealing a trial court's directed verdict that denied their claims for breach of fiduciary duties against Cross-Appellees. The Cross-Appellants allege that the Cross-Appellees, acting as corporate officers and purported directors of W.L. Ranch, Inc., engaged in ultra vires acts including misappropriating corporate property, filing false statements, increasing their own share interests, and unauthorized management. The Cross-Appellants argue that they presented sufficient evidence of breach of fiduciary duties and "benefits" gained by Cross-Appellees, shifting the burden of proof to Cross-Appellees, who failed to demonstrate fairness. The trial court's erroneous directed verdict, which was based on a perceived lack of economic damages, also precluded Cross-Appellants from claiming statutory reimbursement for attorney's fees under the equitable common fund doctrine for actions that substantially benefited the corporation.

Shareholder Derivative SuitBreach of Fiduciary DutyDirected Verdict AppealCorporate GovernanceFiduciary Duty of OfficersFiduciary Duty of DirectorsCorporate MisappropriationUltra Vires ActsCorporate Property DisputeShareholder Rights
References
53
Case No. MISSING
Regular Panel Decision

Anzaldua v. American Guarantee & Liability Insurance Co.

This worker's compensation case involves an appeal by Esther Anzaldua against American Guarantee & Liability Insurance Company, the compensation carrier. Anzaldua was injured on the job and sued after rejecting an award from the Texas Industrial Accident Board. A jury awarded her damages for partial incapacity and medical expenses, but Anzaldua appealed, alleging the medical award was insufficient, that certain medical reports were improperly admitted due to hearsay, and that a supplemental jury charge was coercive. The court affirmed the lower court's judgment, finding the jury's verdict supported by evidence, the medical reports properly admitted, and the supplemental charge not coercive.

Workers' CompensationMedical ExpensesJury VerdictEvidence AdmissibilitySupplemental Jury ChargeCoercionIncapacityAppealTexas LawInsurance
References
7
Case No. MISSING
Regular Panel Decision

Loblaw, Inc. v. Employers' Liability Assurance Corp.

Loblaw, Inc., a self-insured retail chain, sued its excess insurer, Employers’ Liability Assurance Corporation, for reimbursement under a workers’ compensation policy. The dispute centered on whether Loblaw timely notified Employers’ of an employee's escalating injury claim. Loblaw initially believed the claim would not exceed its $25,000 self-retention, delaying notice until June 1972, despite warnings from its agent and mounting costs. The Supreme Court, Erie County, initially sided with Loblaw, but the Appellate Division reversed, ruling Loblaw had an ongoing obligation to notify the insurer and was derelict by May 1969. This court affirmed the Appellate Division's dismissal of Loblaw's complaint, holding that the notice given in June 1972 was too late as a matter of law, given the claim had exceeded $21,000 by December 1970.

Insurance policy interpretationWorkers' compensationExcess insuranceNotice provisionSelf-insurerTimely noticeAppellate reviewContract constructionObjective standardSubjective judgment
References
22
Case No. MISSING
Regular Panel Decision

Electric Mutual Liability Insurance Co. v. White

Electric Mutual Liability Insurance Company appealed a worker’s compensation judgment concerning Ira Gillis White, who sustained a back injury. A jury found White totally incapacitated for three months and permanently partially incapacitated thereafter, establishing his weekly earning capacity at $150 during the partial incapacity period. Electric Mutual contended that the trial court erred in excluding evidence of White’s pre-injury wages and that the jury’s finding on earning capacity was unsupported or against the evidence. The appellate court affirmed the trial court’s decision, explaining that worker’s compensation aims to compensate for loss of earning capacity, not just actual wages, and that post-injury earnings do not conclusively prove capacity. The court found sufficient evidence to support the jury's assessment of White's diminished earning capacity, considering his pain and physical limitations despite continued employment.

Worker's CompensationIncapacityEarning CapacityBack InjuryHerniated DiscMedical EvidenceWage ExclusionJury FindingsAppellate ReviewTexas Law
References
7
Case No. MISSING
Regular Panel Decision
Jul 21, 1990

Fullenwider v. American Guarantee & Liability Insurance Co.

This is an appeal in a worker's compensation case. The plaintiff, Lucille Fullenwider, alleged she developed industrial asthma while working for Motorola, Inc., leading to total and permanent incapacity. The jury found she did not suffer an occupational injury, and the trial court rendered judgment in favor of the defendant, American Guarantee & Liability Insurance Company. The sole issue on appeal was whether the trial court erred in permitting two undisclosed expert witnesses to testify when interrogatories requesting their names were not supplemented thirty days prior to trial. The appellate court concluded that while the trial court abused its discretion in admitting the testimony without a finding of good cause, the error was harmless as the plaintiff was not prejudiced, and affirmed the trial court's judgment.

Expert Witness TestimonyDiscovery RulesGood Cause ExceptionTrial Court DiscretionAbuse of DiscretionHarmful ErrorWorker's CompensationIndustrial AsthmaOccupational InjuryUndisclosed Witnesses
References
17
Case No. MISSING
Regular Panel Decision

Capps v. American Mutual Liability Insurance Co.

Archie Capps appealed a take-nothing judgment, arguing that American Mutual Liability Insurance Company improperly deducted both worker's compensation and social security benefits from his disability insurance payments. Capps, disabled in 1972, received disability policy payments from 1973 and a lump-sum worker's compensation settlement in 1974, which included attorney's fees. He also received monthly social security benefits. The court affirmed the judgment, holding that the insurance policy's anti-duplication clause permitted the deduction of both worker's compensation and social security payments. Furthermore, the court found that attorney's fees awarded in the worker's compensation case were part of the total amounts payable and were properly deducted, and that the calculation of payments was correct.

AppealDisability InsuranceWorker's CompensationSocial Security BenefitsAnti-duplication ClauseAttorney's FeesLump-sum SettlementBenefit DeductionsPolicy InterpretationInsurance Law
References
2
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