Forming a partnership1 without triggering income appears straightforward and simple. In many cases, it is. In other cases, though, forming a partnership can cause one or more partners to unintentionally recognize income. This...more
What Was Intended? Transactions between commonly controlled, closely held businesses are often conducted in an informal manner. This is unfortunate because, in the absence of documentation, it is sometimes difficult to...more
An excess D&O insurer had no obligation to contribute to Vizio's settlement with its primary general liability insurer for liabilities arising from the Smart TV Litigation, a California federal district court has held. See...more
Applying California law, the Ninth Circuit held that an excess insurer may challenge the allocation of an underlying settlement that resolves both an underlying claim against an insured and the insured’s coverage dispute with...more
In Truck Ins. Exchange v. AMCO Ins. Co. (No. B298798, filed 10/26/20), a California appeals court held that even though the named insured restaurant-lessee was found not liable for premises liability to injured restaurant...more
In Advent v. National Union Fire Ins. Co., etc. (No. H041934 filed 12/6/16), a California appeals court refused to order a subcontractor’s excess insurer to contribute to a general contractor’s excess insurer because the...more
The Massachusetts Supreme Judicial Court recently rejected the application of the “Selective Tender Rule” as against Massachusetts law and public policy. On a certified question from the U.S. Court of Appeals for the First...more
In Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action,...more
This interesting decision both explains the conspiracy theory of jurisdiction and upholds an equitable contribution claim by the company required to advance fees to a director to have the director’s companies contribute...more
Indemnity Clauses and Anti-Indemnity Legislation - I. Purpose and Enforceability of Indemnity Clauses - Indemnification is an equitable doctrine that attempts to shift the burden of a judgment from one party...more
When an employer is vicariously liable to a third party for its employee’s negligence, and both the employer and employee have primary and umbrella policies covering liability to the third party, the employee’s primary and...more