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Insurance
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December 13, 2024
NC Justices Topple Insurer Victory In COVID Coverage Battle
The North Carolina Supreme Court handed policyholders a rare win Friday in their bid to get property insurance coverage for their pandemic-related business interruption losses, unanimously finding that the insuring phrase "direct physical loss" included the loss of use of property due to COVID-19 public health orders.
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December 13, 2024
Construction Co. Fights Stay In Small Biz Qui Tam Suit
The owners of a construction firm accused in a whistleblower suit of defrauding a program for disadvantaged small businesses objected to a request to delay the suit while the Eleventh Circuit considers the appeal of another suit that resulted in a controversial decision deeming the whistleblower provision of the False Claims Act unconstitutional.
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December 13, 2024
UnitedHealth To Pay $69M In Suit Over 401(k) Fund Roster
UnitedHealth Group has agreed to pay $69 million to settle a class action claiming it included low-performing investment options in its 401(k) plan to preserve its business relationship with Wells Fargo, according to a filing Friday in Minnesota federal court.
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December 12, 2024
Insurer Owes Defense In Faulty Landscaping Row, Court Told
A contractor facing claims it did faulty irrigation and landscaping work told a Florida federal court that its commercial general liability insurer must defend it, saying while the insurer declined additional insured coverage to the underlying claimant, it still hasn't communicated a coverage position with the contractor.
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December 12, 2024
USAA Inks $3.25M Data Breach Deal With 22K Customers
More than 22,000 USAA customers have asked a New York federal judge to grant preliminary approval to a $3.2 million settlement to resolve a proposed class action alleging the company's security failures in its online insurance quote system allowed cybercriminals to open fraudulent memberships.
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December 12, 2024
Insurer Must Defend Texas Oilfield Against Burned Worker
An insurer must continue to defend an oilfield services company in a suit brought by a severely burned worker seeking over $1 million for his injuries, a Texas federal court ruled, finding nothing in his short complaint triggered exclusions.
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December 12, 2024
Insurer Seeks Exit From $1.35M Wire Loss Dispute
A broker accused of negligently causing a buyer to lose roughly $1.35 million in a business acquisition because of a wrong email address should receive no coverage, its insurer told an Arizona federal court, citing three separate exclusions in the broker's business owners liability policy.
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December 12, 2024
Wash. Justices OK Tax Break For Pharmacy Benefits Manager
A Washington pharmacy benefits manager is exempt from a state business tax on its services for Medicaid patients because its corporate sibling paid premium taxes in connection with the same services, the state's high court affirmed Thursday.
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December 12, 2024
Hartford Needn't Defend Contractor In Workplace Injury Suit
A Hartford unit has no duty to defend an electrical contractor against an employee's workplace injury suit, the New Jersey Supreme Court ruled Thursday, saying the underlying negligence- and intent-based claims don't fall within the scope of a workers' compensation and employers' liability policy.
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December 11, 2024
High Court Urged To Take Up Web Scraping Trade Secret Spat
An insurance agent is asking the U.S. Supreme Court to take up his challenge to an Eleventh Circuit ruling reviving software company Compulife's copyright claim against him, saying the high court should resolve an issue surrounding web scrapes of public information.
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December 11, 2024
Ex-Rep. TJ Cox Reaches Plea Deal On Fraud Charges
Former U.S. Rep. T.J. Cox reached a deal with California federal prosecutors and agreed to plead guilty to two charges and pay up to a $3.5 million fine over allegations he stole from his companies and took illegal campaign contributions, according to a plea agreement filed Wednesday.
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December 11, 2024
Law Firm Manager Gets Prison For Bribes In No-Fault Scam
A Manhattan federal judge on Wednesday hit a former law firm manager with a five-year prison sentence for paying $800,000 in bribes that fueled a $70 million no-fault automobile insurance fraud racket, saying his lawbreaking "was massive in scope."
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December 11, 2024
Embattled Texas Law Firm Heading To Mediation In Ch. 11
Troubled Houston law firm MMA Law said it will engage in mediation with litigation funders Equal Access Justice Fund LP and creditors to try to sort out issues pertaining to the firm's bankruptcy plan and other matters, days after Equal Access escaped a class action involving MMA Law.
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December 11, 2024
6th Circ. Probes Rationale For State Farm Worker's Firing
The Sixth Circuit grappled Wednesday with whether to reopen a former State Farm employee's suit alleging she was illegally fired after counseling a colleague about a disability accommodation complaint, with one judge questioning if the insurer had looked into the worker's claim that she faced selective discipline.
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December 11, 2024
Dutch Duo Beats Insurer's Claims Of Poor Greenhouse Design
Neither a Dutch greenhouse builder nor designer were responsible for the failure of a Michigan produce farm's $14.1 million greenhouse, a federal judge ruled, granting an early win to the pair in an insurer's subrogation suit seeking coverage for a storm loss.
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December 11, 2024
Insurer Seeks $900K For Conn. Dehumidifier Fire Damages
An insurer said it is entitled to recover over $900,000 from a dehumidifier manufacturer and its subsidiaries for costs the carrier incurred in covering a policyholder's house fire, telling a Connecticut federal court that the manufacturer's product was defective and unreasonably dangerous.
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December 11, 2024
Class Seeks Final OK Of Contentious $147.5M Insurance Deal
A class of insurance policyholders has urged a Connecticut federal judge to give his final blessing to a $147.5 million settlement resolving claims that two insurers overcharged when deducting costs from savings accounts attached to universal life insurance plans.
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December 11, 2024
Liberty Mutual Accused Of Stalling On $21M Loss Claims
The owners of a Massachusetts metal recycling plant that was severely damaged in an explosion last year say Liberty Mutual is attempting to avoid a $20.8 million payout in part by claiming that the facility, ordered razed by the city of Springfield, could have been repaired instead.
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December 11, 2024
6 Firms Guide Nippon Life's $8.2B Resolution Life Acquisition
Japanese life insurer Nippon Life said Wednesday that it has agreed to buy the remaining 77% stake in holding group Resolution Life that it does not already own for $8.2 billion.
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December 10, 2024
9th Circ Reverses Cert. In Widow's Allianz Life Insurance Suit
A unanimous Ninth Circuit panel on Tuesday reversed a lower court decision granting class certification in a case claiming that Allianz LIfe Insurance didn't follow statutorily required notice provisions before denying life insurance claims, saying the lead plaintiff wasn't an adequate representative for the proposed class, among other concerns.
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December 10, 2024
Ohio Justices Undo Paint-Maker's Lead Paint Coverage Win
Insurers for Sherwin-Williams Co. don't have to cover the paint-maker's portion of a $305 million settlement to abate lead paint in California homes, the Ohio Supreme Court ruled Tuesday, finding the payment does not qualify as damages under its commercial general liability policies.
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December 10, 2024
Insurer Eyes Dismissal Of Pot Co. Trulieve's Coverage Case
An insurance company that is a unit of Berkshire Hathaway is arguing that it has no obligation to defend Trulieve Inc., which is being sued over a cannabis worker's death, urging a federal judge to toss the lawsuit brought by the largest medical marijuana operator in Florida.
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December 10, 2024
NC Law Firm, Insurer Drop Phishing Coverage Row
A law firm specializing in real estate transactions and its cyber insurer told a North Carolina federal court Tuesday they've agreed to settle their dispute over coverage for a phishing scam the firm said caused it to unwittingly wire roughly $647,000 to the hacker's bank account.
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December 10, 2024
NC Addiction Clinic To Pay $825K To End Medicaid Fraud Suit
An addiction treatment and behavioral health clinic based in Raleigh will pay $825,000 to settle claims that it billed the North Carolina Medicaid program for medically unnecessary drug tests and treatment support programs, the state Attorney General's Office announced Tuesday.
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December 10, 2024
Nippon Life In Late Talks To Buy Resolution Life For $8.2B
Global insurer Resolution Life said Tuesday that it was in the "final stages of discussions" to sell the business to Nippon Life Insurance, reportedly for $8.2 billion.
Expert Analysis
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Fla. Insurer-Breach Cases Split On Unrepaired Property Issue
A Florida appellate court's recent decision in Universal v. Qureshi is directly at odds with a 2020 decision from another Florida appellate court, and raises important questions for policyholders and insurers about the proper measure of damages in breach claims involving unrepaired property, say Andrea DeField and Yaniel Abreu at Hunton.
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Series
NY Banking Brief: All The Notable Legal Updates In Q3
In a relatively light few months for banking legal updates in New York, the state Department of Financial Services previewed its views on banking sector artificial intelligence use via insurer guidance, and an anti-money laundering enforcement action underscored the importance of international monitoring processes, say Eric McLaughlin and Dana Bayersdorfer at Davis Polk.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Plan Sponsors Must Prep For New Mental Health, Drug Rules
To comply with newly published health insurance rules requiring parity between access to mental health and substance use services compared to medical and surgical services, employers with self-insured plans will need to update third-party administrator agreements and collect data, among other compliance steps, say attorneys at Kilpatrick.
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Insurance Likely Kept Swift Out Of The Woods After Vienna
Financial losses Taylor Swift incurred from the cancellation of three concerts in Vienna in August will likely be covered by insurance policies, considering how the facts of the situation differ from those of the Foo Fighters' 2015 insurance dispute over event cancellation and terrorism coverage, say attorneys at Anderson Kill.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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Class Actions At The Circuit Courts: September Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy identifies practice tips from four recent class certification rulings involving denial of Medicare reimbursements, automobile insurance disputes, veterans' rights and automobile defects.
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3 Coverage Tips As 2nd Circ. 'Swipes Left' On Tinder Claim
The Second Circuit's recent opinion in Match Group v. Beazley Underwriting, overturning Tinder's victory on its insurer's motion to dismiss a coverage action, reinforces three best practices policyholders purchasing claims-made coverage should adhere to in order to avoid late-notice defenses, say Lynda Bennett and Alexander Corson at Lowenstein Sandler.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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What To Know About Insurance Coverage For Antitrust Risks
With all the regulatory activity surrounding antitrust and unfair competition claims, as highlighted by last month's D.C. federal court decision that Google is a monopolist, businesses must not only ensure compliance, but also understand their potential insurance coverage when such claims arise, says Micah Skidmore at Haynes Boone.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Rise Of Transpo Contractors Brings Insurance Disputes
As more independent contractors are contracted and subcontracted in the delivery industry, companies must be prepared to defend claims from drivers who are injured on the job as they are often seeking to establish an employment relationship with one of the entities in the chain, says Nathan Milner at Goldberg Segalla.