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Insurance
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November 21, 2024
Insurers Sued Over Defense Costs In Fort Bragg Housing Row
An infrastructure company and related entities providing housing for military families told a North Carolina federal court that three of its primary commercial general liability insurers must cover their defense bill from a class action accusing them of providing "unfit and uninhabitable" housing at Fort Bragg.
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November 21, 2024
Trump Selects Ex-Fla. AG Pam Bondi As New AG Pick
President-elect Donald Trump announced Thursday that he has selected Pam Bondi, a former attorney general of Florida, as his new pick for U.S. attorney general, just hours after former U.S. Rep. Matt Gaetz withdrew his name from consideration amid allegations of sexual misconduct and drug use.
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November 21, 2024
Settlement Doesn't Void Injury Coverage Ruling, Judge Says
A Colorado federal court refused to set aside its September ruling that an oil and gas production company isn't owed coverage by an electrical drilling company for a worker's underlying injury lawsuit, saying the parties' settlement negotiations don't justify vacating a valid court order.
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November 21, 2024
'Where Were You?': Judge Irked By Feds In $2B Fraud Case
A North Carolina magistrate judge said Thursday he was "appalled" by a system that left a convicted insurance mogul unable to communicate with his attorneys while he sat in a county jail for nearly a week following his guilty plea to a $2 billion fraud and money laundering scheme.
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November 21, 2024
NBA Veteran Who Cooperated In $5M Fraud Case Avoids Jail
A Manhattan federal judge on Thursday allowed former NBA center Melvin Ely to avoid prison for taking $36,000 of illegal payouts in pro basketball's $5 million health billing fraud ring, crediting his decision to cooperate in the sprawling criminal case.
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November 21, 2024
Insurer Seeks Subrogation Over Sprinkler Claims
An insurer for a contractor facing property damage claims told a New York federal court that a subcontractor and its insurers must pitch in for over $1.9 million the contractor's insurer has paid in coverage so far, even though it said the subcontractor failed to procure insurance covering the contractor.
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November 21, 2024
Chubb Unit Denies Coverage In Conn. Water Damage Dispute
An insurer told a Connecticut federal court it shouldn't have to help cover at least $1.8 million in water damage suffered by a commercial property owner because policy exclusions apply and the owner failed to mitigate the losses.
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November 21, 2024
11th Circ. Asked To Rethink $100M Credit For John Hancock
The Eleventh Circuit should reverse its decision allowing John Hancock Life Insurance Co. to keep $100 million in foreign tax credits that rightfully belong to the company's investors, trustees of a retirement plan said in arguing that the court overlooked a key U.S. Treasury regulation.
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November 20, 2024
Musk, Ramaswamy Say High Court Rulings OK Federal Cuts
Billionaire Elon Musk and former presidential candidate Vivek Ramaswamy, President-elect Donald Trump's picks to lead a newly created "Department of Government Efficiency," on Wednesday said two recent U.S. Supreme Court rulings will give them the authority to cut off power to regulatory agencies and conduct massive federal layoffs.
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November 20, 2024
DC Circ. Judge Blasts 'Bogus' Bid To Nix Discrimination Rule
One judge on a D.C. Circuit panel ripped into an insurance trade group Wednesday over its contention that it is mounting a facial challenge to a U.S. Department of Housing and Urban Development rule expanding what is considered a discriminatory housing practice.
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November 20, 2024
11th Circ. Says No Coverage For Holding Co. In $11.7M Row
The Eleventh Circuit unanimously affirmed Wednesday that an insurer doesn't have to cover underlying litigation against a holding company by investors who wanted to revoke an $11.7 million buy-in, because claims were made before the policy was active.
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November 20, 2024
La. City Must Arbitrate Hurricane Ida Claims, Insurers Say
A group of foreign and domestic insurers pushed back against a New Orleans suburb's bid to vacate an order granting arbitration in a coverage dispute over Hurricane Ida damage, telling a Louisiana federal court that the city waived any arguments opposing arbitration.
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November 20, 2024
Mich. School Gains Per-Wound Coverage For Shooting Suits
A Michigan school district has access to at least $55 million in coverage from its insurer for a mass shooting that killed four students and injured seven people at a high school in 2021, a state court found, determining each bullet striking a victim was its own occurrence.
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November 20, 2024
Insurance Mogul Seeks Transfer To Fla. Halfway House
A billionaire businessman embroiled in a host of criminal and civil suits centered on his crumbling insurance empire wants to relocate to a halfway house in Florida as he awaits sentencing on federal bribery charges, saying restrictions at the county jail have hamstrung his ability to talk to his defense attorneys.
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November 20, 2024
Burger King Franchisee Escapes BIPA Coverage Counterclaim
An Illinois federal judge has axed an AIG subsidiary's counterclaim in a Burger King franchisee's lawsuit seeking coverage for an underlying case accusing it of violating Illinois' biometric privacy law, concluding that the counterclaim is redundant and "adds nothing that will not be decided through resolution of the motions for summary judgment."
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November 20, 2024
NJ Power Broker, Attys Demand Wiretap Docs In RICO Case
George E. Norcross III, a politically influential insurance executive in New Jersey, and others accused alongside him of a massive racketeering scheme demanded Wednesday that state prosecutors turn over complete wiretap application information dating back to 2016, arguing that those details form the core of the state's case against them.
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November 20, 2024
No Coverage For Road Rage Shooting Dispute, Judge Says
The auto insurer for a freight transportation company needn't cover an underlying suit over the fatal shooting of a man during a road rage altercation, a West Virginia federal court ruled, saying the shooting was "wholly unrelated to the inherent nature of the vehicle."
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November 20, 2024
Pa. Justices Ask Why CBD Isn't 'Medicine' For Hurt Workers
Justices on the Pennsylvania Supreme Court questioned Wednesday why they should accept an insurer's assertion that hemp-derived CBD oil should be deemed dangerous, when an injured attorney's physician had prescribed it for pain relief as part of his workers' compensation treatment plan.
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November 19, 2024
Judge Rejects Infosys' Bid To Seal NDAs In Trade Secrets Row
A Texas federal judge shot down Indian tech company Infosys Ltd.'s efforts to seal nondisclosure agreements involved in a trade secrets case over healthcare software, ruling that there was "nothing commercially sensitive" about them.
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November 19, 2024
UnitedHealthcare Can't Escape Patient's Proton Beam Suit
A Florida federal judge on Tuesday refused to toss a federal benefits lawsuit from a patient who alleged that UnitedHealthcare wrongly denied him coverage for proton beam therapy to treat tongue cancer, rejecting the insurer's argument that an exclusion for unproven treatments applied.
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November 19, 2024
Parties Voluntarily Toss Sewer Expansion Coverage Row
An Indiana federal court dismissed a lawsuit Tuesday from a utility company's insurer seeking to avoid covering a $5 million consent judgment and a $14 million damages claim from underlying litigation concerning a sewer expansion plan, after it was told in September the parties reached a global settlement in principle.
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November 19, 2024
Insurers Urge Arbitration Of Union Fund's ERISA Claims
Elevance Health Inc. and several affiliated health insurers want a Connecticut federal judge to force arbitration of claims brought by a union fund that alleges excessive fees violated benefits law, arguing that the companies were unaware of an arbitration agreement with the plaintiff when they started litigating the early stages of a proposed class action.
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November 19, 2024
Misnomer Doesn't Doom Fire Subrogation Suit, NC Panel Told
An insurer that sued two fire safety companies asked a North Carolina appeals court for another chance after it misidentified itself in its complaint, saying it made a nonprejudicial mistake in its suit seeking recovery for a 2019 blaze at a Hardee's restaurant it insured.
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November 19, 2024
Condo Says Insurer Underpaid By $19M After Hurricane Ian
A Florida condo association said its insurer underpaid it by nearly $19 million after Hurricane Ian destroyed its property in 2022, according to a suit that was removed to federal court.
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November 19, 2024
Truck Insurance Must Arbitrate Asbestos Coverage Claims
Truck Insurance Exchange must arbitrate its dispute with a group of reinsurers over coverage for asbestos bodily injury claims filed against Kaiser Cement & Gypsum, a California federal judge ruled, saying there was "little difficulty" in concluding that the case falls within the parties' arbitration agreement.
Expert Analysis
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Revisiting Scalia's 'What's It To You?' After Kaiser Ruling
While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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After Chevron
Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 37 different rulemaking and litigation areas.
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Opinion
Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Calif. Long-Tail Ruling Continues Policyholder-Friendly Trend
The California Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Cement & Gypsum, rejecting horizontal policy exhaustion, was the latest in a string of its decisions involving insurance coverage for continuous or progressive injury claims that favor policyholders, say Billie Mandelbaum and David Goodwin at Covington.
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Series
NY Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 saw less enforcement activity in the realm of New York financial services, but brought substantial regulatory and legislative developments, including state regulators' guidance on cybersecurity compliance and customer service processes for virtual currency entities, say James Vivenzio and Andrew Lucas at Perkins Coie.
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Series
Skiing And Surfing Make Me A Better Lawyer
The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.
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Unpacking The Circuit Split Over A Federal Atty Fee Rule
Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.
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4 Steps To Repair Defense Credibility In Opening Statements
Given the continued rise of record-breaking verdicts, defense counsel need to consider fresh approaches to counteract the factors coloring juror attitudes — starting with a formula for rebuilding credibility at the very beginning of opening statements, says Ken Broda-Bahm at Persuasion Strategies.
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Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares
In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.
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NJ Justices Clarify First-Party Indemnification Availability
In Boyle v. Huff, the New Jersey Supreme Court recently held that indemnification can be available in first-party claims, resolving an open question and setting up contracting parties for careful negotiations around indemnity clauses, says Todd Leon at Marshall Dennehey.