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Insurance
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January 29, 2025
Lloyd's Can't Yet Arbitrate $5M Settlement Coverage Dispute
A New Jersey federal court rejected a bid Wednesday from certain Lloyd's of London underwriters to arbitrate a man's demand that they cover a $5 million settlement he won against a police department they insured, though it stopped short of saying whether the parties must actually go to arbitration.
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January 29, 2025
Fla. Judge OKs Settlement In Energy Drink Co. Bankruptcy
A Florida federal bankruptcy judge on Wednesday approved a $3 million settlement in the bankruptcy case of Vital Pharmaceuticals Inc., the company that produces Bang Energy drinks, but declined to seal an agreement with an insurer over the costs of litigation in a Monster Energy Co. lawsuit.
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January 29, 2025
NY Archdiocese Wants Abuse Coverage Row Segmented
The Archdiocese of New York urged a New York state court to analyze coverage in phases for over 1,300 sex abuse lawsuits it and its affiliated entities face, arguing that because the "vast majority" of the underlying lawsuits are still being litigated, assessing coverage prematurely could be "highly prejudicial."
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January 29, 2025
Ex-Allied World Executive Gets Prison, Must Repay $1.2M
A former executive and claims handler at Allied World Insurance Co. will serve 20 months in prison and must repay $1.2 million he admitted to scamming from the company for phony construction work and kickbacks from vendors, federal prosecutors in Connecticut announced Tuesday.
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January 29, 2025
Workers Needed To Initiate Arbitration, Calif. Panel Says
A group of workers needed to initiate arbitration in their proposed class action claiming an insurance company misclassified them as exempt employees after a trial court sent their claims out of court, a California state appellate panel ruled, flipping the lower court's decision reviving the suit.
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January 28, 2025
Cigna Can't Escape Fight Over Prosthetic Coverage In Maine
Cigna must continue facing an Employee Retirement Income Security Act lawsuit by a man who was denied coverage of his prosthetic device, with a Maine federal judge saying she can't rule on the insurer's dismissal motion until she knows what entity funds the man's healthcare plan.
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January 28, 2025
Gunmaker Must Face AIG Units' Breach Counterclaims
Firearms-maker Colt's Manufacturing Co. LLC can not dodge claims that it breached a contract by failing to pay the first $250,000 in annual legal expenses it incurred while defending against litigation brought by the city of Gary, Indiana, a Connecticut federal court ruled.
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January 28, 2025
SoCal Edison Faces More Suits Over Eaton Blaze
At least two more lawsuits were filed in California state court against Southern California Edison, alleging the investor-owned public utility is responsible for sparking the devastating Eaton Fire that began Jan. 7 and destroyed most of Altadena, California, killing at least 17 people.
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January 28, 2025
Insurer Says Mich. Sports Complex Not Covered In Injury Suit
A Berkley unit said it has no duty to defend or indemnify a Michigan sports complex in an underlying suit over a girl's injury during varsity soccer tryouts, telling a federal court Tuesday that a "participants" exclusion in its commercial general liability policy bars coverage.
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January 28, 2025
Texas Panel Wipes Baylor's $12M COVID Insurance Verdict
An appellate panel wiped a $12 million jury verdict in favor of Baylor College of Medicine on Tuesday, writing that it was joining "the vast majority of courts" in ruling that the university's insurance policy didn't cover COVID-19 losses.
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January 28, 2025
Calif. Bill Targets Oil Cos. For Climate Disaster Costs
A Democratic lawmaker in California has introduced a bill aimed at improving insurance affordability in the state by allowing insurers and victims of natural disasters to pursue action against oil and gas companies for their role in fueling the climate crisis.
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January 27, 2025
Anadarko Prevails In La. Kickback Defense Coverage Suit
An environmental remediation company should defend and indemnify Anadarko Petroleum Corp. in a decade-old Louisiana kickback lawsuit, a Texas federal court judge has ruled.
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January 27, 2025
UnitedHealth Raises Cyberattack Estimate To 190M Individuals
A debilitating cyberattack last year that sabotaged vital billing and prescribing services operated by a UnitedHealth Group unit affected personal information belonging to roughly 190 million individuals, the health insurer disclosed Friday, nearly doubling its previous estimate of the scope of the incident.
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January 27, 2025
Allstate Beats Plan Participants' $70M Poor-Performance Suit
An Illinois federal judge handed Allstate a pretrial win Monday over retirement plan participants' claim that the insurer cost them nearly $70 million by holding on to poor-performing funds, saying the plaintiffs' "apples and oranges" comparisons will not sway a jury in their favor.
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January 27, 2025
No Coverage For Worker 'Crushed' In Hole, Insurer Says
A construction contractor's commercial general liability insurer told a Louisiana federal court it owes no coverage for a wrongful death lawsuit that, according to the insurer, alleges a worker was "crushed in a hole."
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January 27, 2025
AIG Unit Says No Coverage For McKinsey Opioid Suits, Deals
Management consulting giant McKinsey & Co. shouldn't have any coverage for more than 250 opioid lawsuits and roughly $1.3 billion it's paid in corresponding settlement payments to date, an AIG unit told a Delaware state court, arguing the underlying claimants have accused McKinsey of uninsurable "deliberate misconduct and greed."
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January 27, 2025
Pa. Social Club Can't Revive COVID-19 Coverage Suit
The Pennsylvania Superior Court on Monday backed the dismissal of a Scranton social club's suit seeking to recover pandemic-related losses, citing the state high court's landmark ruling last year that physical loss or damage requires tangible alteration to property.
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January 27, 2025
J&J Talc Unit's $9B Ch. 11 Plan Draws Slew Of Objections
The U.S. Trustee's Office and lawyers representing talc claimants have urged a Texas bankruptcy judge to reject a Johnson & Johnson spinoff's $9 billion plan to settle thousands of cancer claims through Chapter 11, arguing the proposed reorganization must fail because the bankruptcy case was filed in bad faith.
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January 27, 2025
Zurich Owes Solar Co. $12.2M For Rain Damage, Judge Says
Zurich American Insurance Co. owes over $12.2 million to a solar energy company for damages from heavy rainstorms at a 2,000-acre solar farm, a Georgia federal court ruled after a jury found the insurer liable for additional costs related to the rain events.
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January 27, 2025
Insurance Group Of The Year: Sullivan & Cromwell
Sullivan & Cromwell LLP's insurance coverage group helped Great Lakes Insurance SE secure a unanimous U.S. Supreme Court ruling that a New York choice-of-law provision in a maritime policy was enforceable, in a case that headlined a banner year for the group — and solidified its place among the 2024 Law360 Insurance Groups of the Year.
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January 24, 2025
Fla. Judge Splits Trial In Case Over DJ's Elevator Injuries
A Florida federal judge Friday bifurcated a trial between two insurance carriers and an elevator company that settled a Miami D.J.'s $5.5 million injury lawsuit, ruling that excess coverage claims will be tried first, with bad faith claims being tried after.
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January 24, 2025
FDIC Wins Discovery Bid In SVB Fraud Coverage Row
A Chubb unit must give certain documents to Silicon Valley Bank's former parent SVB Financial Group regarding coverage for a fraud that SVB Financial said caused $73 million in losses, a North Carolina federal court ruled Friday, though relieving an excess insurer of doing the same.
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January 24, 2025
3rd Circ. Halts Pa. Med Insurer Suit Pending High Court Review
The Third Circuit agreed Friday to put a hold on its ruling that Pennsylvania's medical malpractice insurance fund is an agency of the state and can dip into the fund's $300 million budget surplus pending the outcome of the fund's appeal to the U.S. Supreme Court.
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January 24, 2025
Chemical Co. Says Insurer Owed Defense For Birth Defect Suit
A chemical supplier said a Liberty Mutual unit unreasonably denied coverage for an underlying suit brought by workers at a Seattle-area Boeing facility who blame their son's birth defects on chemicals they were exposed to on the job, according to a suit removed to Washington federal court.
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January 24, 2025
Aircraft Leasing Co. Battles Insurer's Bid To Strike Witnesses
Aircraft leasing company Avmax is fighting an attempt by HDI Global to strike witnesses Avmax has in its suit over coverage of airplanes stranded in Russia, arguing that the insurer can't claim prejudice when it has four months before trial to speak to the witnesses.
Expert Analysis
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Series
Group Running Makes Me A Better Lawyer
The combination of physical fitness and community connection derived from running with a group of business leaders has, among other things, helped me to stay grounded, improve my communication skills, and develop a deeper empathy for clients and colleagues, says Jessica Shpall Rosen at Greenwald Doherty.
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How White Collar Defense Attys Can Use Summary Witnesses
Few criminal defense attorneys have successfully utilized summary witnesses in the past, but several recent success stories show that it can be a worthwhile trial tactic to help juries understand the complex decision-making at issue, says Jonathan Porter at Husch Blackwell.
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Hawaii Climate Insurance Case Is Good News For Energy Cos.
The Hawaii Supreme Court's recent ruling in a dispute between an oil company and its insurers, holding that reckless conduct in the context of activities that can cause climate harms is covered by liability policies, will likely be viewed by energy companies as a positive development, say attorneys at Fenchurch Law.
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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Using Data To Inform Corporate Disclosure Decisions
With today’s market volatility and regulatory factors requiring public companies to confront competing transparency and protection demands, incorporating stock price reaction analysis of company-specific news into the controller's role could be beneficial for disclosure determinations, say Liz Dunshee at Fredrikson & Byron and Nessim Mezrahi at SAR.
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Best Practices For AI Disclosures In Insurance Applications
As businesses integrate AI into their operations, insurers are starting to develop targeted questions to assess the associated risks, but ambiguities in the application forms can create challenges for businesses applying for insurance, say attorneys at Hunton.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Teaching Your Witness To Beat The Freeze/Appease Response
In addition to fight-or-flight, witnesses may experience the freeze/appease response at trial or deposition — where they become a deer in headlights, agreeing with opposing counsel’s questions and damaging their credibility in the process — but certain strategies can help, says Bill Kanasky at Courtroom Sciences.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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What Insurers Need To Know About OFAC's Expanded FAQs
The Office of Foreign Assets Control's recently expanded insurance FAQs clarify how OFAC views insurance policies in a number of specific circumstances involving sanctioned parties, and make plain that sanctions compliance is the responsibility of all participants in the insurance ecosystem, including underwriters, brokers and agents, say attorneys at Morgan Lewis.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Nevada Justices Could Expand Scope Of Subrogation Claims
The Nevada Supreme Court's recent decision to hear North River Insurance v. James River Insurance could expand the scope of equitable subrogation claims in the state by aligning with the California standard, which doesn't require excess insurers to demonstrate damages, says Daniel Heidtke at Duane Morris.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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A View Into NY's New Business Interruption Insurance Law
In response to businesses' economic challenges during the pandemic, New York recently allowed the issuance of stand-alone business interruption insurance coverage, and while pricing and insurer participation questions remain, the product stands to benefit business owners and the state economy, say attorneys at Saxe Doernberger.