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Sony and Its Insurers Wrangle over Coverage for Data Breach

According to a Law360 report, Sony Corp.’s lawyers recently asked a New York appeals court to overturn a trial court’s ruling that a data breach did not involve the “publication” of private information within the meaning of...more

Sizing Up Cyber Risks after the Sony Breach

Sony’s most recent data breach underscores the difficulties in underwriting and insuring cyber risk. Sony incurred losses that were surprising in both their scope and type. The company already is a defendant in at least four...more

Personal Injury Coverage Does not Apply to Data Breach

According to a Law360 report, Sony Units Denied Coverage For Suits Tied To Cyber Attack (subscription required), a New York state judge ruled last Friday in the Zurich v. Sony insurance litigation that the stealing of...more

FTC Calls for National Data Security Standards as Proposed Legislation Stalls

In congressional testimony, the Federal Trade Commission’s Chairwoman, Edith Ramirez, recently reiterated the FTC’s call for stronger data security laws, while federal legislation concerning data security and breach...more

2/27/2014  /  Cybersecurity , Data Protection , FTC

Assessing Cyber Threats - The Blind Spot Between Perception and Realty

A recent survey by the Ponemon Institute entitled, “Cyber Security Incident Response: Are We as Prepared as We Think?,” suggests that many companies lack the mechanisms to meaningfully address cyber risk. Among the survey’s...more

One Policy Term, May Have Two Meanings

A California Court of Appeal held in Transport Ins. Co. v. Superior Ct. (R.R. Street & Co.) that a named insured’s reasonable expectations of coverage can be different from those of an additional insured’s. This ruling leaves...more

Newly introduced Data Security Act would remove data security standards from state oversight

The Federal Government has not taken significant steps to regulate data security. For that reason, local and state officials have been taking a more aggressive role in responding to data breaches and in establishing best...more

Taking Precautions Against Medical Identity Theft

We recently reported that the number of cyber events involving the healthcare industry is expected to rise in 2014. The reliance on electronic medical records and the use of insurance exchanges increase efficiency but...more

1/3/2014  /  EHR , Healthcare , Identity Theft , PHI

Evolving Expectations of Privacy: Klayman v. Obama

In a 68-page opinion, Federal District Judge Richard J. Leon of the District of Columbia ruled yesterday in Klayman v. Obama that the NSA's systematic collection of telephone metadata of millions of citizens violates the...more

Cyber Risk Trends for 2014

According to recent post from Property Casualty 360°, The Six Trends of Cyber Risk in 2014, insurers need to know: 1. Data breach costs are trending downward. The cost per record to respond to a breach dropped from...more

The Potential Pitfalls of Joint Representation

A recent California Court of Appeal opinion, Yanez v. Plummer, provides a cautionary tale for in-house counsel or outside attorneys who jointly represent their institutional client’s employees or agents in depositions. If...more

Judicial Notice Doctrine Bolstered by Court of Appeal Decision

A recent California decision should make it easier for insurers to attack allegations at the pleading stage in state court actions. ...more

Bratz Litigation Has Provided Fertile Grounds for Attorney Fee Disputes

The Bratz litigation between Mattel and MGA Entertainment has provided fertile grounds for attorney fee disputes. In the latest installment, the Ninth Circuit upheld a $137 million attorney fee award in favor of MGA as a...more

Reconsidering the Fraud Exception to the Parol Evidence Rule

The California Supreme Court has removed a legal barrier for litigants seeking to invalidate contracts on the basis of fraud. Overruling a 75-year old decision, the Supreme Court ruled that the parol evidence rule does...more

Tripartite Attorney-Client Relationship Arises when Insurer Hires Law Firm to Prosecute Action on Behalf of its Insured

It is well settled that a tripartite attorney-client relationship arises when an insurer retains counsel to defend an action against its insured. As a consequence, confidential communications between counsel and the insurer...more

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