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LITIGATION ALERT: Texas Supreme Court Limits the Application of the Economic Loss Rule

In Texas, the economic loss rule has been applied by courts to prevent a plaintiff from recovering purely economic losses in a negligence or strict liability action. In products liability cases, when a loss results from the...more

Food Litigation Newsletter - August 2014 #2

In This Issue: - Recent Significant Rulings ..Court Dismisses Some of Plaintiff’s Claims In Pretzel Class Action ..Courts Increasingly Rely on FDA Notice to Stay or Dismiss ECJ Claims ..Court Dismisses...more

The Absolute Pollution Exclusion May Not Be That “Absolute”

The Absolute Pollution Exclusion (“APE”) contained in current general liability insurance policies excludes coverage for costs related to the cleanup of environmental pollution. Insurance companies have taken the position...more

The Absence of a CECO and the GM Fiasco

This is a posting that I have wanted to write since the GM scandal occurred. I have to start with a rhetorical question – Would the GM debacle have occurred if GM had an independent and empowered Chief Ethics and Compliance...more

Insurance Recovery Law - August 2014

“Contractual Liability” Exclusion Applies Only To An Insured’s Assumption of Another’s Liability - Why it matters: The Michigan Court of Appeals joined the majority of courts nationwide in holding that a...more

Home or Away? Where Should That Deposition Take Place?

When a corporate defendant is sued in a federal court outside its home state, the issue of where its deposition will be conducted can become a bone of contention. The traditional rule, accepted by most practitioners, is that...more

Pennsylvania Supreme Court Notes Limited Reach of Multiple Trigger Rule in Insolvency Case

On July 21, 2014, the Pennsylvania Supreme Court held, as a matter of first impression, that the Continuance of Coverage Provision of the Pennsylvania insurance insolvency statute, 40 P.S. § 221.21, precludes coverage for all...more

Pin the Blame on the Corporate Officer: Senators Introduce Hide No Harm Act

Three Senate Democrats recently introduced a bill that seeks to hold company executives of a product maker or seller criminally liable for knowingly "failing to inform and warn of serious dangers" associated with a product....more

SawStop Dismissal Explained: Opinion Crosscutting SawStop’s Antitrust Lawsuit Released

Judge Claude M. Hilton of the Eastern District of Virginia recently issued a Memorandum Opinion following up on his June 27, 2014 order dismissing the complaint filed against the power tool industry by SawStop, LLC....more

Policyholders with Long-Tail Claims Under Liberty Mutual Policies Should Be Prepared for 'Sea Change' in Claims Handling After...

On July 17, 2014, Liberty Mutual Insurance Company announced that it had entered into a multi-billion-dollar “retroactive reinsurance” arrangement with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway,...more

Forum-Shopping Insurance Companies' Latest Tricks

Decades ago, insurance companies tried to persuade trial courts in California to apply the law of some other state to multi-party environmental and asbestos insurance coverage disputes because the insurance companies believed...more

No Coverage Under Aviation Policies Where Product Was Not Used in Connection With Aircraft or Aviation Operations

Superior Court of New Jersey, Appellate Division - A New Jersey appellate court affirmed an order granting summary judgment, stating that the insurer owed no duty to defend or indemnify its insured in a personal injury...more

A Five-Step Recipe for Managing Your “Natural” Litigation Risk

The past five years have brought a deluge of class actions challenging the way in which the word “natural” is used on food and beverage labels. Perhaps predictably so, this litigation phenomenon resulted from the convergence...more

Speak Up or Pay Up: Lessons from GM

The now infamous General Motors mea culpa, which followed the automotive giant’s recall of almost six million cars, has brought the importance of a “speak up culture” front and center. As part of the company’s long road to...more

Supreme Court: FDCA Compliance Does Not Bar Lanham Act Claims

POM Wonderful LLC v. Coca-Cola Co. - In a unanimous decision, the Supreme Court of the United States reversed the U.S. Court of Appeals for the Ninth Circuit ruling that the Food, Drug, and Cosmetic Act (FDCA) and its...more

Eleventh Circuit: Excess Insurer, Like All Florida Bad Faith Claimants, Must Prove Causation to Succeed on Bad Faith Claim Against...

Westchester Fire Insurance Co. v. Mid-Continent Casualty Co., No. 13-12932, 2014 WL 2766764 (11th Cir. Jun. 19, 2014) - The Eleventh Circuit finds that a primary insurer did not act in bad faith by failing to inform...more

SawStop Stopped: Judge Dismisses Antitrust Lawsuit Against Table Saw Industry

On June 27, 2014, Judge Claude M. Hilton of the Eastern District of Virginia dismissed the complaint filed against the power tool industry by SawStop, LLC. We previously wrote about this lawsuit and the need for companies and...more

Food and Beverage News and Trends

FDA clarifies its stance on cheese making. On June 13, the FDA issued a clarification stating it “does not have a new policy banning the use of wooden shelves in cheese-making, nor is there any requirement in effect...more

Green Chemistry Regulatory Push Among States Continues

What began in 2008 with a few states enacting laws to address the perceived threats to children from chemicals in toys and kids’ products has become a full-fledged “green chemistry” movement in dozens of states. These laws...more

Does the Economic-Loss Rule Bar Claims Under Section 75-1.1?

The economic-loss rule says that a contract dispute generally does not state a tort claim. The concern is that if a plaintiff could recover tort damages, that outcome would disregard the expectations reflected in the parties’...more

Launch of openFDA Increases Accessibility to Adverse Drug Event Reports

On June 2, 2014, the Food and Drug Administration launched openFDA, a program designed to improve access to publicly available data beginning with adverse event reports. While greater accessibility to adverse event reports...more

Buzzsaw or SawStop: Are You Prepared to Avoid Antitrust Liability in the Product Safety Arena?

In most respects, trade associations are pro-competitive organizations: they join together competitors to advance worthwhile goals and to learn from one another. Their societal value is why they are recognized as non-profits....more

China Amends Key Medical Device Regulations

The State Council of China passed amendments to the Regulations on Supervision and Administration of Medical Devices which came into effect on June 1, 2014. The amendments present significant regulatory changes that will...more

Former CPSC Chairman Brown Expresses Concern over CPSC’s Voluntary Recalls Rule

Former CPSC Chairman Ann Brown recently sent a letter to the leaders of the CPSC’s congressional oversight committee asking for them to “urge the Commission to consider its proposed [voluntary recalls] rule carefully and to...more

Ahoy! – “Wear and Tear” and “Manufacturing Defect” Exclusions in Yacht Insurance Policies Upheld in Recent Decisions From the...

Both the First and Eleventh Circuit Courts of Appeals have recently rejected arguments seeking to limit the application of “wear and tear” and “manufacturing defect” exclusions in yacht insurance policies. In Miele v. Certain...more

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