Professional Liability

News & Analysis as of

Illinois Court Holds No E&O Coverage for Underlying TCPA Violation

In Margulis v. BCS Ins. Co., 2014 Ill. App. LEXIS 826 (Ill. App. Ct. 1st Dist. 2014), the Appellate Court of Illinois, First District, had occasion to consider whether an insurer has a duty to defend an insurance agent under...more

A Judgment Cannot Not Lie Against Attorney Who is a Non Party

In Suarez v. City of Corona, 2014 DJDAR 12101, the California Court of Appeal for the Fourth Appellate District decided an interesting case concerning the interpretation of California Code of Civil Procedure Section 1038....more

Texas Court Holds E&O Insurer Has Duty to Underlying Defend Fee Dispute

In Shamoun & Norman, LLP v. Ironshore Indem., Inc., 2014 U.S. Dist. LEXIS 152803 (N.D. Tex. Oct. 28, 2014), the U.S. District Court for the Northern District of Texas had occasion to consider whether, under Texas law, a...more

Information Letter: Management Liability: Potential Risk Zones (Russia)

The recent court practice shows that lawsuits seeking compensation of damages caused to company by its management are being filed with increasing frequency. It is largely due to courts' departure from formalistic approach to...more

Insurance for Professional Fiduciaries

In an important decision for professionals operating in the trust and asset management sector - and their employers - the English Court of Appeal has recently provided guidance in the case of Rathbone Bros Plc and Paul...more

Professional Liability and Attorney-Client Privilege Bulletin: Intra-Law Firm Communications

In a case of first impression in California, Edwards Wildman Palmer LLP v. Superior Court (No. B255182 - filed November 25, 2014), Division Three of the Second District Court of Appeal addressed the question of whether the...more

Insurance Recovery Law -- November 2014 #2

South Carolina Court Holds That Absent Substantial Prejudice, Late Notice Does Not Bar Insurer’s Coverage Obligations - Why it matters: A federal court in South Carolina ruled that absent a showing by an insurer...more

Texas Federal Court Clarifies Broad Scope of Professional Liability Policies for Lawyers

Lawyers may be surprised to learn that lawsuits brought by clients challenging something other than purely legal advice or advocacy—such as billing—may not be covered by their professional liability policies. Interpreting the...more

Eleventh Circuit adopts broad view of businesses’ potential liability under TCPA for faxes sent by third parties

One of the hottest areas in class actions is litigation under the Telephone Consumer Protection Act (TCPA). And one of the most significant issues in TCPA litigation is the existence and scope of vicarious liability. The...more

When a state agency strays into antitrust liability: 4 practical tips about professional self-interest

Are you a practicing physician who sits on a state licensing board? Is your business affected by a state board with practicing physicians on it? If you said yes to either question, you should read on....more

Terms & Conditions under Texas Law: A Potential Liability Trap for Oilfield Operators

A common misconception exists that pre-printed terms and conditions on a job ticket do not rise to the level of a legal contract. This view is not correct. Terms and conditions can and will be enforced by Texas courts. Such...more

Nevada’s Duty Of Care Standard Fails To Win Summary Judgment For Director

NRS 78.138(1) imposes two explicit duties on directors in the exercise of their powers: they must act in good faith and with a view to the interests of the corporation. This contrasts with Delaware case law which speaks of a...more

Texas Court Construes Professional Liability Policy to Require Defense of Law Firm in Fee Dispute

In Shamoun & Norman, LLP v. Ironshore Indemnity, Inc., Cause No. 3:14-1340, In the U.S. District Court, Northern District of Texas, the federal district court construed a professional liability policy issued by Ironshore to...more

Texas Court Holds Professional Liability Exclusion Applicable to Well Blowout

In its recent decision in Nicklos Drilling Co. v. Ace Am. Ins. Co., 2014 U.S. Dist. LEXIS 156585 (S.D. Tex. Nov. 5, 2014), the United States District Court for the Southern District of New York had occasion to consider the...more

Third Circuit Upholds Defense Cost Reimbursement Clause in Professional Liability Policy

On October 10, 2014, the 3rd Circuit Court of Appeals decided Camico Mutual Ins. Co. v. Heffler, Radetich & Saitta, LLP, where it enforced a policy clause providing for repayment to the insurer of defense costs, and confirmed...more

NLRB Reverses Its Stance on Determining Successor Liability for Refusal to Hire

Companies who have bought or are considering buying unionized workplaces should familiarize themselves with a significant decision affecting liability issues made last month by the National Labor Relations Board (NLRB)....more

Delaware Court Establishes "Taxonomy" For Controlling Stockholder Claims

In a recent decision, the Delaware Court of Chancery (Parsons, V.C.) dismissed a shareholder class action complaint alleging that a target company’s board of directors and private equity firm controlling stockholder breached...more

New York Court Revisits Architect’s Duty Under Contract and Tort Principles

Issues of privity and whether claims sound in breach of contract or negligence are common in construction defect cases involving architects and New York is no exception. Indeed, New York courts have long wrestled with...more

Eleventh Circuit Vacates Dismissal, Rules Bank Officers Subject To Negligence Claims Under Georgia Law

On October 24, based on the Georgia Supreme Court’s response to the federal appellate court’s certified questions, the United States Court of Appeals for the Eleventh Circuit issued a per curiam opinion overturning a district...more

Catch Me If You Can: Fake Doctor’s Application Voids Coverage for Himself But Not for Innocent Co-Insureds

Written like a blockbuster Hollywood film, the U.S. District Court in South Carolina, in Evanston Insurance Company v. Agape Senior Primary Care, et al., 2014 WL 5365679, issued a ruling October 21, 2014, in which it held...more

Maddin: Failure to Inquire Leaves Director Liable

In Maddin v. The Queen (2014 TCC 277), the taxpayer was a director of a corporation in the marble and granite industry (the “Corporation”) which failed to remit nearly $300,000 of source deductions related to salaries, wages...more

Delaware Court Dismisses Action Against Seller's Directors and Financial Advisor, And Finds That Large Stockholder's "Side Deals"...

On October 24, 2014, the Delaware Court of Chancery issued a decision, In Re: Crimson Exploration Inc. Stockholder Litigation, addressing when: (i) a stockholder with less than majority voting power may be deemed a...more

Third Circuit Holds That Insured Must Reimburse Insurer For Litigation Costs Paid In Excess Of Sub-limit

In CAMICO Mutual Insurance Co. v. Heffler, Radetich & Saitta, L.L.P., the United States Court of Appeals for the Third Circuit recently held that a $100,000 sub-limit for claims involving employee misappropriation, misuse,...more

Skilled Nursing Care Facility Inadequate Staffing Claims: Recent Coverage Developments in California

Professional liability insurers continue to confront claims alleging inadequate staffing at skilled-nursing facilities. While some policies clearly exclude coverage, others present a much closer question, particularly when...more

Supreme Court of Mississippi Affirms Disclaimer Based on Professional Liability Exclusion

In its recent decision in Gray v. Arch Specialty Ins. Co., 2014 Miss. LEXIS 534 (Miss. Oct. 23, 2014), the Supreme Court of Mississippi had occasion to consider whether allegations against a paramedic company for negligent...more

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