Property
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February 26, 2024
Texas Justices Say $220M Cobalt Deal Is A Loss Under Policy
A $220 million settlement that now-bankrupt Cobalt International Energy Inc. reached with a group of investors constitutes a loss under the energy company's insurance policies, but the agreement is not binding on Cobalt's insurers to establish coverage, the Texas Supreme Court ruled.
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February 26, 2024
State Farm Seeks Exit From Aircraft Designer's Explosion Row
An aircraft design company is not owed coverage for five underlying lawsuits surrounding an explosion at an aeronautical test site that killed one employee, State Farm has told a California federal court, arguing that the underlying actions triggered multiple policy exclusions.
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February 23, 2024
La. Hotel Owner Must Arbitrate Hurricane Ida Damage Claims
A Louisiana federal judge has ordered the owner of an extended-stay hotel near New Orleans to go to arbitration with a group of insurers over coverage for damage caused by Hurricane Ida, finding that the policy under dispute contains a valid arbitral clause.
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February 23, 2024
Insurance Litigation Week In Review
From maritime contracts’ choice-of-law provisions to a question on how far an agency can steer companies from contracting with controversial groups, the past week saw two insurance-related cases before the U.S. Supreme Court, plus litigation over a mass shooting and a casino operator’s claims that its “unique” policy covers pandemic losses. Here, Law360 recaps the week's top insurance news.
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February 23, 2024
The New BIPA? Attys Warn GIPA Is A 'Live Grenade'
After notable appellate victories in biometric privacy cases, Illinois plaintiffs have seized upon a previously little-used law protecting workers' genetic privacy, leaving defense attorneys wondering if history will repeat itself and open companies to potentially explosive liability.
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February 23, 2024
Travelers Can't Duck Payout In Warehouse Fire Reversal
A New York federal court has rejected Travelers' bid for additional discovery in a coverage dispute involving a textile importer whose goods were destroyed in a warehouse fire, after the Second Circuit vacated the insurer's early win in December and remanded for a judgment in the importer's favor.
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February 26, 2024
New York Pandemic Coverage Ruling Offers Few Surprises
Businesses seeking insurance coverage for their pandemic losses were dealt yet another loss recently by New York's top court, a ruling that didn't surprise attorneys watching to see whether the Empire State might buck the trend of carrier victories.
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February 23, 2024
Insurance M&A Partner From Sidley Joins Kirkland
Kirkland & Ellis LLP has added a corporate partner in its insurance transactions and regulatory and financial institutions practice groups, bringing on a former Sidley Austin LLP attorney who said he "couldn't be more excited" to join the firm's Chicago office.
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February 23, 2024
Judge Reverses Self, Says Hurricane Ad Suit Should Continue
Reversing her earlier decision, a federal magistrate judge has issued a preliminary ruling in favor of a woman who alleges that troubled Houston law firm McClenny Moseley & Associates PLLC and associated companies bombarded Louisiana hurricane victims with illegal marketing.
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February 23, 2024
Trade Group Tells NC Justices COVID-19 Losses Not Covered
A dozen North Carolina eateries are not owed coverage for pandemic-related losses, the American Property Casualty Insurance Association told the state's highest court, saying the policies at issue were never intended to cover economic damages "untethered" to physical loss or damage.
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February 26, 2024
Justices' Maritime Insurance Ruling Retains Tilted Status Quo
When the U.S. Supreme Court ruled last week that an insurer can enforce choice-of-law provisions in a marine insurance policy it issued to the owner of a yacht that ran aground, it upheld existing practices that give insurers the upper hand over policyholders.
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February 22, 2024
ATV Accident Coverage Win Remanded Over Kid's Residency
A Missouri appeals court remanded a lower court's decision over whether a father's farm insurance covered the $1 million in damages inflicted on his daughter after an ATV accident, saying that the central question of whether the child resided at her father's home or at his ex-wife's was still unresolved.
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February 21, 2024
Nationwide Says Walmart Should Pay NY Humidifier Fire Costs
Walmart should pay for a $165,000 blaze ignited by a humidifier it sold to a Long Island, New York, woman, Nationwide told a New York federal court Wednesday.
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February 21, 2024
Uber Says Insurers Failed To Cover Dozens Of Injury Suits
Uber's insurers failed to live up to their obligations to defend the company and its for-hire drivers in dozens of personal injury lawsuits, the ride-hailing giant claims in two suits filed in New York federal court, saying that the companies' conduct had a negative impact on thousands of New York City drivers.
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February 21, 2024
No Property Coverage For Maui Wildfire, Insurer Says
A condominium association and its property manager have no coverage for property damage claims stemming from the 2023 Maui wildfires, their insurer told a Hawaii federal court, arguing that a property damage exclusion in their errors and omissions policy wholly bars coverage.
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February 20, 2024
Casinos Say 'Unique' Policy Should Cover $130M COVID Loss
A casino operator with properties on the Las Vegas Strip and beyond told a Nevada federal court that its "unique" all-risk insurance is the broadest available coverage and should pay for $130 million in business interruption losses caused by the COVID-19 pandemic.
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February 20, 2024
Eateries' Virus Losses Not Covered, Insurer Tells NC Justices
Cincinnati Insurance Co. urged the North Carolina Supreme Court to affirm its win in a dispute with more than a dozen eateries over coverage for pandemic-related losses, saying government shutdown orders do not constitute direct physical loss or damage required to trigger coverage.
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February 20, 2024
Insurers Say Pollution Exclusion Bars Cancer Suits Defense
An oil company accused of causing four people to develop cancer through exposure to harmful chemicals should not have coverage for its defense of the claims, according to four Nationwide units that told an Illinois federal court the company has no pollution coverage.
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February 16, 2024
4th Circ. Won't Revive Car Dealer's Hurricane Coverage Suit
The Fourth Circuit declined to revive a South Carolina car dealership's lawsuit seeking coverage from an AIG unit for losses the business sustained from Hurricane Dorian in 2019, agreeing with a district court that there was no link between a government evacuation order and physical damage that would warrant civil authority coverage.
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February 16, 2024
Condo Co., Insurer Settle Proposed Class Action Coverage
A Miami condominium, its former management company and various insurers agreed to settle coverage for a proposed class action accusing the condominium companies of allowing the building to deteriorate, a Florida federal judge said Friday, staying the coverage litigation while the parties finalize the deal.
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February 16, 2024
Barge Co., Insurer End Pollution Cleanup Coverage Fight
A Washington barge company and its insurer reached an agreement in a dispute over coverage of legal expenses stemming from claims that the company was liable for environmental pollution at an EPA cleanup site, according to a notice filed in Washington federal court.
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February 15, 2024
No Coverage For Pandemic Losses, NY Top Court Rules
A Texas-based restaurant operator isn't entitled to insurance coverage for its pandemic losses, New York's top court ruled Thursday, saying the operator didn't allege the kind of physical loss or damage required for coverage.
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February 15, 2024
Second Carrier Seeks To Toss Four Seasons Coverage Row
A subcontractor's insurer joined another carrier in urging a New York federal court to dismiss a general contractor's lawsuit seeking coverage in a $1 million underlying action over damage to a Four Seasons hotel in midtown Manhattan, arguing that the faulty workmanship claims don't constitute an occurrence under its policy.
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February 15, 2024
Zurich Owes $554K Over Faulty Construction Work, Erie Says
Erie Insurance Co. told a D.C. federal court Thursday that a Zurich unit wrongly denied coverage to Erie-insured subcontractors for over $554,000 in damage stemming from faulty work at a government agency renovation project, arguing Zurich has cited the wrong coverage form to deny liability.
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February 15, 2024
9th Circ. Backs Homeowners' Cert. In Allstate Overcharge Suit
Allstate will have to face a class action accusing it of artificially inflating home insurance premiums for thousands of California properties by double-counting built-in garage space, a Ninth Circuit panel ruled, affirming a lower court's decision.
Expert Analysis
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Why Legacy Insurance May Not Protect Adopters Of Bitcoin
Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.
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Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage
The Illinois Supreme Court's recent decision in West Bend Mutual v. Krishna Schaumburg Tan, confirming that commercial general liability policies do not have to include specific language to cover claims under the Biometric Information Privacy Act, represents a critical victory for policyholders, but leaves unresolved issues in the battle over BIPA coverage, says Tae Andrews at Miller Friel.
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NY Badly Needs Bad Faith Bill To Hold Insurers Accountable
Contrary to a recent Law360 guest article that contends New York state's insurance reform bill would unfairly tip the scales against insurers, Edward Steinberg at the New York State Trial Lawyers Association argues the law is necessary to hold insurers accountable for acting in bad faith, and would protect policyholders and injured parties alike.
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Insurers Have Cause For Optimism In Labor Cost Rulings
Recent decisions from the high courts of South Carolina and North Carolina — holding that embedded labor costs can be depreciated from the replacement cost of property — bolster insurers’ moderate edge in these disputes and point to important implications for both insureds and insurers, says Richard Mason at MasonADR.
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Predictions On Pandemic's Lasting Impact On Legal Education
The pandemic accelerated the pace of technological change for legal education, and some of the changes to how law school courses are taught and on-campus interviews are conducted may be here to stay, says Leonard Baynes at the University of Houston.
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Firms Should Use Surveys To Make Smart Legal Tech Choices
The utility of legal technology innovations may be limited without clear data and objectives from the outset, but targeted surveys can provide specific insights that enable law firms to adopt the most appropriate and efficient tech solutions, says Tim Scott at Frogslayer.
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Don't Forget Due Diligence In Race For Lateral Associate Hires
Amid high demand for associates and aggressive competition to attract talent, law firms should take three key steps to conduct meaningful prehire due diligence and safeguard against lateral hiring mistakes that can hurt their revenue and reputation, says Michael Ellenhorn at Decipher.
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Insurance Could Be A Solution To Microchip Shortage Losses
To the extent that companies experiencing lost income from the global microchip shortage have contingent business interruption or dependent property coverage and can trace their impaired revenues to physical loss or damage to a supplier, there may be some potential for insurance recovery, says Micah Skidmore at Haynes and Boone.
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5 Steps For Law Firms Rethinking Flexible Work Post-COVID
A flexible work environment will be key to recruiting and retention efforts post-pandemic, so law firms must develop comprehensive policies that solidify expectations and boundaries on accommodations such as flextime, remote work and reduced hours, says Manar Morales at the Diversity & Flexibility Alliance.
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NY Bad Faith Bill Would Tip The Scales Against Insurers
A recently introduced New York bill proposes a statutory cause of action for insurance company bad faith when legal remedies already exist, which may dangerously upset the balance between insurers and policyholders, say attorneys at Hurwitz & Fine.
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Judge's Rebuke Of Mass. AG Has Lessons For All Attorneys
A Massachusetts federal judge’s recent rebuke of the state Attorney General’s Office for refusing to respond to discovery requests in Alliance for Automotive Innovation v. Healey highlights six important considerations for attorneys who want to avoid the dreaded benchslap, say Alison Eggers and Dallin Wilson at Seyfarth.
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Make Profitability Management Part Of Your Law Firm Culture
As the legal industry continues to change in the post-pandemic world, law firms should adapt to client demands by constantly measuring and managing the profitability of their services, says Joseph Altonji at LawVision.
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The Pandemic's Bright Spots For Lawyers Who Are Parents
The COVID-19 crisis has allowed lawyers to hone remote advocacy strategies and effectively represent clients with minimal travel — abilities that have benefited working parents and should be utilized long after the pandemic is over, says Chelsea Loughran at Wolf Greenfield.