In a new letter to all financial institutions supervised by the Board of Governors of the Federal Reserve System, the Federal Reserve cautioned directors and officers about the potential limitations of director and officer...more
AG's Letter a Prior "Demand," Eliminates Exec's Defense -
Why it matters -
A letter stating that a government entity "may" bring an enforcement action against the policyholder if it did not "voluntarily" cease...more
High Times in the Insurance Industry: Colorado Federal Court Considers Coverage for Medical Marijuana Business -
Why it matters: With legalized marijuana businesses booming, a new decision from a Colorado federal court...more
3/21/2016
/ Claims Made Policy ,
Co-Insurance Payments ,
Commercial General Liability Policies ,
Duty to Defend ,
Farms ,
Food Safety ,
Fraud ,
Indemnification Clauses ,
Innocent Insured ,
Insurance Industry ,
Late Notices ,
Malpractice Insurance ,
Marijuana Related Businesses ,
Pesticides ,
Prejudice ,
Rescission
Despite Finding Policy Application Misrepresentation, Jury Rules Against Policy Rescission -
Why it matters: A federal jury concluded that Starr Surplus Lines Insurance Company did not have a valid basis to rescind the...more
1/23/2016
/ Bad Faith ,
Breach of Contract ,
Breach of Duty ,
Competition ,
Covenant of Good Faith and Fair Dealing ,
Duty to Defend ,
Excess Policies ,
Fraud ,
Insurance Litigation ,
Misrepresentation ,
Professional Liability ,
Rescission ,
Right to Privacy ,
TCPA ,
Uber
Court Rejects Attempt to Broaden "Employer's Liability" Exclusion, Requiring Coverage -
Why it matters: A New York federal court recently ruled that an "Employer's Liability" exclusion in a CGL policy applies only when...more
12/7/2015
/ Ambiguous ,
Commercial General Liability Policies ,
Condition Precedent ,
Construction Defects ,
Denial of Insurance Coverage ,
Faulty Workmanship ,
Insurance Litigation ,
Late Notices ,
Loss Coverage ,
Policy Exclusions ,
Property Damage
Despite Prior Suits, Policyholder Entitled to Coverage for DOJ Investigation -
Why it matters: A policyholder was entitled to coverage for a Department of Justice (DOJ) investigation despite already facing possibly...more
11/5/2015
/ Advertising Injury ,
Applications ,
Breach of Contract ,
Breach of Duty ,
Commercial General Liability Policies ,
Construction Defects ,
Copyright ,
Copyright Infringement ,
Covenant of Good Faith and Fair Dealing ,
Cross Motions ,
D&O Insurance ,
Denial of Insurance Coverage ,
Department of Justice (DOJ) ,
Discovery ,
Duty to Defend ,
Food Recalls ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Heinz ,
Injunctive Relief ,
Insurance Litigation ,
Motion for Reconsideration ,
Motion for Summary Judgment ,
Omissions ,
Policy Exclusions ,
Policy Limits ,
Qui Tam ,
Right to Control ,
Trademark Infringement ,
Travelers ,
Treble Damages ,
Unfair Competition
Unfair Trade Practices Exclusion Doesn't Cover Consumer Protection Suits -
Why it matters: An unfair trade practices clause did not bar coverage for a policyholder's subsidiary, an Illinois federal court ruled, ordering...more
10/9/2015
/ Anticompetitive Behavior ,
Bad Faith ,
Bargaining Power ,
Breach of Contract ,
Class Action ,
Commercial Insurance Policies ,
Conflicts of Interest ,
Consumer Fraud ,
Cumis Counsel ,
Duty to Defend ,
False Claims Act (FCA) ,
Fraud ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Legal Ethics ,
Negligent Misrepresentation ,
NV Supreme Court ,
Policy Exclusions ,
Reservation of Rights ,
Subsidiaries ,
The Clayton Act ,
Unfair or Deceptive Trade Practices ,
Unjust Enrichment
Exception to Mold Exclusion Requires Defense of Suit Alleging Injuries From Moldy Water -
Why it matters: An exclusion for "Fungi or Bacteria" did not prevent a federal court judge in Tennessee from ordering an insurer...more
9/10/2015
/ Ambiguous ,
Breach of Duty ,
Choice-of-Law ,
Claims Made Policy ,
Commercial General Liability Policies ,
Duty to Defend ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Insurance Contracts ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Mold Litigation ,
Notice Requirements ,
Policy Exclusions ,
Reservation of Rights
Good News for Corporate Policyholders: Insurer Cannot Refuse Coverage Based on Insured's Assignment of Rights Under Policies After Loss Has Occurred -
Why it matters: Reversing its holding in a 2003 case, the Supreme...more
8/28/2015
/ Abatement ,
Asbestos Litigation ,
Attorney's Fees ,
Bad Faith ,
CA Supreme Court ,
Carbon Emissions ,
CERCLA ,
Clean Air Act ,
Commercial General Liability Policies ,
Consent Decrees ,
Consent to Assignment ,
Cumis Counsel ,
D&O Insurance ,
Duty to Defend ,
Environmental Protection Agency (EPA) ,
Environmental Remediation Costs ,
FDIC ,
Fluor ,
Hartford Casualty Ins. ,
Hartford Insurance Company ,
Indemnification ,
Insurance Litigation ,
Insureds ,
Liberty Mutual Insurance Company ,
Mitigation ,
Policy Exclusions ,
Receivership
Insured's Notice to Broker Satisfied Policy Requirements, Illinois Court Rules -
Why it matters: An insured's notice to its broker satisfied the policy's notice requirements, an Illinois appellate panel recently...more
8/14/2015
/ Apparent Authority ,
Auto Insurance ,
Bad Faith ,
Breach of Contract ,
Car Accident ,
Carbon Emissions ,
Civil Conspiracy ,
Class Action ,
Cyber Insurance ,
Data Breach ,
Duty to Defend ,
Fraud ,
Insurance Industry ,
Insureds ,
Mediation ,
Notice Requirements ,
Nuclear Waste ,
Patient Privacy Rights ,
Policy Exclusions ,
Public Officials ,
Reservation of Rights ,
Settlement ,
Workplace Injury
Two Years, Too Long for Coverage Under Claims-Made-and-Reported Policy -
Why it matters: Claims-made-and-reported policies require that the claim be both made against the insured and reported to the insurer within the...more
8/1/2015
/ Claims Made Policy ,
Delay Claims ,
Dismissals ,
Duty to Defend ,
Excess Policies ,
Fire Damage ,
Late Notices ,
Malpractice Insurance ,
Motion To Intervene ,
Notice Requirements ,
Property Damage ,
Property Insurance
California Court: Rejected Demand Within Policy Limits Not Necessary for Bad Faith Claim -
Why it matters: Insurers must proceed with caution when they become aware that a settlement within policy limits is possible,...more
7/16/2015
/ Appeals ,
Bad Faith ,
Breach of Contract ,
CERCLA ,
Commercial General Liability Policies ,
Counterclaims ,
D&O Insurance ,
Declaratory Relief ,
Duty to Defend ,
Duty to Settle ,
Environmental Protection Agency (EPA) ,
Homeowner's Insurance ,
Homeowners Association (HOA) ,
Insurance Industry ,
Insurance Litigation ,
Insureds ,
Motion to Dismiss ,
Policy Exclusions ,
Policy Limits ,
Potentially Responsible Party (PRP) ,
Scope of Coverage ,
Scope of the Claim ,
Summary Judgment ,
TX Supreme Court
In the Context of a Bad Faith Claim, Insurer’s Defense That Coverage Denial Was Reasonable Put at Issue Otherwise Protected Attorney-Client and Work Product Communications -
Why it matters: Recognizing the “conflicting...more
7/3/2015
/ Attorney-Client Privilege ,
Bad Faith ,
Breach of Contract ,
Choice-of-Law ,
Commercial Bankruptcy ,
Commercial General Liability Policies ,
Commercial Insurance Policies ,
Cross-Claims ,
Discovery ,
Due Diligence ,
False Advertising ,
Insurance Litigation ,
Misrepresentation ,
Motion for Reconsideration ,
Notice Requirements ,
Policy Exclusions ,
Summary Judgment ,
Work-Product Doctrine
No Policy? No Problem, The First Circuit Rules In A Coverage Dispute -
Why it matters: This case addresses the standard for pleading a missing insurance policy where the alleged insured, a private educational...more
6/22/2015
/ Commercial General Liability Policies ,
Commercial Insurance Policies ,
D&O Insurance ,
E&O Policies ,
Exclusions ,
Insurance Industry ,
Investment Adviser ,
Lloyds of London ,
Policy Exclusions ,
Ponzi Scheme ,
Restaurant Industry
No Policy? No Problem, The First Circuit Rules In A Coverage Dispute -
Why it matters: This case addresses the standard for pleading a missing insurance policy where the alleged insured, a private educational...more
New Jersey Supreme Court Rules Claimants May Be Entitled to Recover Attorneys’ Fees in Coverage Cases Even Without Establishing Liability in the Underlying Action -
Why it matters: The New Jersey Supreme Court recently...more
Recent Lawsuit Underscores Critical Lessons for Purchasers of Cyber Insurance -
Why it matters: Columbia Casualty Company v. Cottage Health Systems was filed on May 7, 2015, in the Central District of California. Cottage...more
5/21/2015
/ Attorney-Client Privilege ,
Commercial General Liability Policies ,
Cyber Insurance ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Insurance Industry ,
Insurance Litigation ,
Lead Paint ,
Liability Insurance ,
Pollution Exclusion ,
Privilege Waivers ,
Professional Service Exclusion ,
Settlement ,
Sun Capital Partners ,
Work-Product Doctrine
California Appellate Court: All Claims “Arising From” Ponzi Scheme Are Precluded -
Why it matters: Concluding that any claims related to a Ponzi scheme—even if they involved different investors, investments, or...more
5/7/2015
/ Appeals ,
Arbitration ,
Broker-Dealer ,
Claims Made Policy ,
Class Action ,
D&O Insurance ,
GA Supreme Court ,
Insurance Litigation ,
Investment Adviser ,
Liability Insurance ,
Policy Exclusions ,
Ponzi Scheme ,
Workplace Injury
Policyholder Can Keep Selected Counsel, Court Rules; Insurers’ Objection Too Late -
Why it matters: A policyholder was able to maintain its selected defense counsel after a federal court judge ruled that the insurers’...more
4/23/2015
/ Class Action ,
Commercial General Liability Policies ,
Duty to Defend ,
Insurance Litigation ,
Mortgage Lenders ,
Policy Limits ,
Property Damage ,
TCPA ,
Unsolicited Faxes ,
Vacant Properties ,
Vandalism
Legal Issues Not Proper Expert Testimony -
Why it matters: As a good reminder concerning the boundaries for admissibility of expert opinions, a federal court in Texas recently granted a policyholder’s motion to strike an...more
4/4/2015
/ Asbestos ,
Asbestos Litigation ,
Buckyballs ,
Claims Made Policy ,
Duty to Defend ,
Expert Testimony ,
Indemnification ,
Insurance Industry ,
Intellectual Property Litigation ,
Liability Insurance ,
Medical Malpractice ,
Policy Exclusions
New York Federal Court Rejects Insurer’s Request for Recoupment -
Why it matters: The federal court, applying New York law, held that an energy drink manufacturer’s advertising coverage claim—arising from underlying...more
3/13/2015
/ Advertising Injury ,
Architects ,
Asbestos Litigation ,
Class Action ,
Copyright ,
Copyright Infringement ,
Duty to Defend ,
Food Manufacturers ,
Illegal Drugs ,
Insurance Industry ,
Late Notices ,
Recoupment ,
Reservation of Rights
Separate Contract Serves to Limit Insurance Coverage for Deepwater Horizon Spill, Texas Supreme Court Rules -
Why it matters: The Texas Supreme Court rejected BP’s $750 million claim for coverage under Transocean...more
California Court Adopts Broad Interpretation of “Occurrence,” Finds Coverage -
Why it matters: In a victory for policyholders—and a continuation of the trend of courts adopting a broad reading of the term “occurrence”...more
More Important Rulings From J.P. Morgan's New York Coverage Litigation -
Why it matters:
A New York Appellate Court unanimously held that a group of insurers could not invoke a Dishonest Acts Exclusion in a...more
1/30/2015
/ Bear Sterns ,
Duty to Defend ,
Enforcement Actions ,
Insurance Litigation ,
JPMorgan Chase ,
Late Notices ,
Liability Insurance ,
NYSE ,
Policy Exclusions ,
Professional Liability ,
Securities and Exchange Commission (SEC) ,
TCPA
Insured v. Insured Exclusion Ambiguous When Applied to FDIC, 11th Circuit Rules -
Why it matters:
In the continuing split among courts considering insured v. insured exclusions, the Eleventh U.S. Circuit Court...more
1/14/2015
/ Appeals ,
Banks ,
Class Action ,
Counterclaims ,
D&O Insurance ,
Duty to Cooperate ,
Duty to Defend ,
Excessive Fees ,
FDIC ,
Litigation Fees & Costs ,
Policy Exclusions ,
Reservation of Rights ,
US Bank