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More “Additional Insured” heartache

We’ve chronicled some of the ways in which an “Additional Insured” can be disappointed. The most recent is from Pennsylvania, where the United States District Court Judge agreed with the Magistrate that the Additional...more

Broad language in Settlement Agreement helps settling plaintiff hang on to millions, despite claims that settlement was obtained...

A plaintiff who received fifty five million dollars (and 22,500 acres of land) via a settlement was able to hang on to all of it, despite allegations that it had been obtained by means of fraud on the court, thanks in part to...more

Another Disappointed “Additional Insured.”

We’ve used this headline before. We’ll almost certainly use it again. The case this time, just handed down by the New York Court of Appeals, is Burlington Insurance Co. v. NYC Transit Authority....more

Position Accepted By Trial Court, And By Court Of Appeals, Was Insurance Company Bad Faith: Washington Supreme Court

The Washington Supreme Court just handed a defeat to Washington State liability insurers, holding that ProBuilders Specialty Insurance Company had a duty to defend a carbon monoxide poisoning case, notwithstanding a broad...more

CGL’s “pollution exclusion” applies to “harsh soaps”: Oregon federal court

The latest round in the fight over the CGL’s “pollution exclusion” — which well-respected commentator Craig F. Stanovich has called “one of the least understood and most litigated portions” of the CGL — went to the insurance...more

“Generic,” “Cut-and-Paste” Reservation of Rights Letter Ineffective

Insureds won a round the other day when the South Carolina Supreme Court held that reservation of rights letters, which it characterized as nothing but “generic statements of potential non-coverage coupled with” large...more

Fifth Circuit affirms $34 million verdict against legal malpractice carrier — exclusion, read literally, “renders the coverage...

Readers of Law360 may recall a 2014 story about a Texas jury that rendered a $34 million dollar verdict against OneBeacon Insurance Company. According to Law360, the Jury found that OneBeacon “knowingly failed to attempt, in...more

Computer Fraud and Abuse Act: Dissent claims that new Ninth Circuit case criminalizes password sharing

Danny Defendant, employed by Acme Widget Co., quits. Acme, of course, disables the password that Danny had used to access the Acme computer system. Danny then asks a friend, who still works at Acme, for her password. She...more

Do Warnings Work?

We observed some while ago that at least some courts have questioned the “heeding presumption,” which presumes that if a manufacturer gave a warning, a consumer would have followed it. The Nevada Supreme Court, for example,...more

Ohio Court Gives Effect to a Different Kind of Reservation of Rights Letter

The importance of the ordinary reservation of rights letter – “we will defend you, but that doesn’t mean we’re going to pay a judgment” — is well known. A different kind of reservation of rights letter – “We will defend you...more

Drafting an indemnity agreement that works the way the indemnitee expects it to work

Countless indemnity agreements run along these lines: A hereby promises to defend, indemnify, and hold B harmless against all claims [etc.] caused by A’s negligence [etc.]...more

Yet ANOTHER Disappointed “Additional Insured”

The retail giant Costco joined the ranks of disappointed “Additional Insureds” the other day in a California Court of Appeals case, Costco Wholesale Corp. v. Tokio Marine and Nichido Fire Ins. Co. Ltd., which left Costco and...more

Nevada Supreme Court adopts Cumis independent counsel rule, but refuses to hold that reservation of rights letter always presents...

Answering two certified questions, the Nevada Supreme Court has adopted the independent counsel rule first laid down in San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., holding: When a conflict of...more

Liability Insurers receive $25.5 million reminder about the importance of Reservation of Rights letters

“This insurance,” the policy clearly stated, “does not apply to . . . punitive damages. . . .” And yet the carriers will be paying the entire judgment entered in Lompe v. Sunridge Partners, LLC, 54 F. Supp. 3d 1252, 1271 (D....more

Another Disappointed “Additional Insured”

No contract clause is more common than the one that says, in effect, “B promises to carry commercial general liability insurance, and to make A an ‘Additional Insured’ under B’s policy.” And perhaps no contract clause...more

Pennsylvania Supreme Court gets a little help from its friends

The Pennsylvania Supreme Court clarified an important liability insurance issue the other day. Mut. Benefit Ins. Co. v. Politsopoulos, 2015 Pa. LEXIS 1126 (Pa. May 26, 2015) (exclusion for liability for injury to “[a]n...more

Stop giving away the store! Cases decided prior to the 2000 Amendment of F. R. Civ. P 26(b) do not define scope of discovery

We observed previously that “reasonably calculated” does not define scope of discovery, and it never has. Rather, discovery is limited, by the plain terms of F. R. Civ. P. 26, to “nonprivileged matter that is relevant to any...more

Relying on a Certificate of Insurance? Better read it first.

Risk management law experts – notably those at International Risk Management Institute, Inc., whose outstanding website is a treasure trove of useful information — have warned for years that Certificates of Insurance are “one...more

Stop Giving Away the Store: “Reasonably Calculated” does not define the scope of discovery. (And it never has!)

For over a hundred years Americans have enjoyed Josh Billing’s chestnut, “I’d rather not know so much, than to know so much that ain’t so.” For nearly seventy years, American lawyers have known one big thing that ain’t so:...more

1/23/2015  /  Discovery , Evidence , Rule 26 , Young Lawyers

Allegation That Court Itself Was Victim Of Fraud Causes Federal Judge To Recuse Himself, All Other Judges In The District

The biggest litigation you’ve probably never heard, the Moonlight Fire litigation, just took another twist. Following a huge Northern California wildfire, the State and the Feds sought tens of millions in damages from...more

11/17/2014  /  Bad Faith , Fire Damage , Fraud , Judges , Wildfires

E-discovery: May federal courts insist that litigants “Do as I say, not as I do”?

General Counsel of Acme Widget Corp. has had a trying morning. On her desk is a motion filed against Acme last night, demanding that a federal judge sanction Acme for failing to preserve what (to her at any rate) sounds...more

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