Third-Party Liability

News & Analysis as of

Consequential Loss in Energy Commodity Contracts

Energy commodity contracts can be of significant monetary value, and their breach may expose the defaulting counterparty to significant liabilities for contractual damages. In considering potential liabilities, contracting...more

The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage,...more

Insurance Code §520 Requires Reversal of Prior Supreme Court Decision Upholding Insurance Policy Language Barring Post-Loss...

Fluor v Superior Court (Hartford) California Supreme Court (August 20, 2015) In 2003, the California Supreme Court ruled in Henkel Corp. v. Hartford Accident & Indemnity Co. (2003) 29 Ca.4th, 934, that a...more

Dangerous Condition, Dangerous Precedent: California Supreme Court Expands Scope of Dangerous Condition Liability Involving Third...

In Cordova v. City of Los Angeles (filed 8/13/15, Case No. S208130), the California Supreme Court held a government entity is not categorically immune from liability where the plaintiff alleges a dangerous condition of public...more

Breathing Room: The Alberta Court of Appeal Addresses the New Limitation Period for Third-Party Claims

The limitation period for a defendant seeking contribution from a third party has changed. In last month's Alberta Court of Appeal decision of Whitecourt Power Limited Partnership v Elliott Turbomachinery Canada Inc., 2015...more

Change in Limitation Period Law Significant for Construction Projects

In Whitecourt Power Limited Partnership v Elliott Turbomachinery Canada Inc., 2015 ABCA 252 (Whitecourt Power), the Alberta Court of Appeal interpreted a recent amendment to the Limitations Act that changed the limitation...more

Upcoming EU Copyright Reform

It does not happen often to see European Institutions agreeing on a common strategy. Yet, the strong political will around the need to create a single market for digital content moved this item to the top of the agenda of the...more

Liability for Data Breach Involving Employee Information: Even the Federal Government and Third Party Vendors Are Not Immune

In what is quickly becoming the newest trending topic in class action litigation, another class action has been filed alleging the disclosure of employee personally identifiable information due to a cyber attack. This...more

Bank Bond Covers Third-Party Losses Arising out of Bank Employee’s Fraud, Eighth Circuit Holds

Fidelity bonds are purchased primarily to protect against loss to the policyholder’s own assets, from things like employee theft or embezzlement. In Avon State Bank v. BancInsure, Inc., however, the Eighth Circuit interpreted...more

Shooting the Messenger? Websites could face greater liability for third-party content in the EU

Three developments in the last two months suggest websites face greater liability for content authored by third parties in the European Union—including reader comments, posts on message boards and social networks, and search...more

Update on Battle Over the Navajo Mark

In a surprising move last week, Urban Outfitters and its subsidiaries (collectively “Urban Outfitters”) moved to withdraw their motion for partial summary judgment on the secondary liability claims being brought against them...more

It’s Time We Finally Do Something About §42-1-580

My rule: blogs should be short and to the point, no more than four paragraphs. I have chastised attorneys in my firm who have created blogs that turned into epistles. Well, here is their chance to criticize me, because there...more

Don’t Wait Until It’s Too Late: Top 10 Recommendations for Negotiating Your Cyber Insurance Policy

As more and more companies of all sizes ranging across a wide spectrum of industries have been exposed to network and data security breaches in recent years, the market for insurance products dedicated to cover cyber risks...more

Illinois Federal Court Follows Eleventh Circuit’s Broad Definition of “Sender” in Blast Fax Case

Through prior posts (see here, here, and here), we have monitored the FCC’s somewhat perplexing distinction between calls and faxes in the context of analyzing direct and vicarious liability under the TCPA. Just two months...more

B.C. Court of Appeal Affirms Refusal to Certify Business Practices and Consumer Protection Act Claims

On June 3, 2015, in Marshall v. United Furniture Warehouse Limited Partnership (Marshall), the B.C. Court of Appeal dismissed the plaintiffs’ appeal from the application judge’s denial of certification of a proposed class...more

Policy Management Best Practice FAQs: Top 10 Questions from the Policy Management Benchmark Webinar Answered

During our recent webinar (now available on-demand), we provided an in-depth tour through the findings of our 2015 Ethics and Compliance Policy Management Benchmark Report. Webinar attendees asked a number of valuable...more

The Fair Credit Reporting Act: Why background checks are fueling the latest wave of class actions

Many employers have third-party services run background checks on applicants, new hires, or existing employees. Many of these employers utilize these services to minimize the risk of claims of negligent hiring or...more

CFPB Issues New Manual for Company Responses to Detailed Consumer Complaints

On May 15, the Consumer Financial Protection Bureau ("the Bureau") issued an updated Company Portal Manual (“the Manual”) containing new guidance and instructions for companies to respond to consumer complaints filed with the...more

False Advertising By Ad Agencies: No Easy Dismissals

On April 20, 2015, in Nestle Purina Petcare Company v. The Blue Buffalo Company, Ltd., the Eastern District of Missouri denied a motion to dismiss claims for false and misleading advertising brought against the advertising...more

Employers Beware: You Cannot Always Trust Third-Party Provided Background Check Disclosure Forms

Does your company run background checks on its employees? Do you pay a third-party to run the reports and trust them to get it right? You may not be as safe as you think you are. Just ask Whole Foods, Paramount...more

A Primer on FTC Expectations for Your Partner and Vendor Relationships: Enforcement Shows You Are Your Brother’s Keeper

With all of the privacy and data security enforcement actions brought by the Federal Trade Commission in recent years, and with all of the guidance distributed by the FTC in that time frame, it is easy to get caught up in...more

Registrants Penalized for Actions of Third-Party Pesticide Distributor

On April 20, 2015, the U.S. Environmental Protection Agency (EPA) announced it had reached settlements with three major pesticide registrants, for the actions of a third-party pesticide distributor, Harrell’s LLC (Harrell’s),...more

Privy Council Clarifies When Innocent Third Parties are Liable to Victims of Fraud

To what extent must a bank make inquiries as to the commercial purpose of a transaction, particularly a transaction involving an offshore structure? And when is a bank liable to compensate a victim of theft for receiving...more

Policyholder Insider Quarterly

Makers and Users of Smart Devices Beware: You May Have a Critical and Costly Gap in Your Insurance Coverage - The drumbeat of high-profile data breaches has led to rapid growth in the number of companies purchasing or...more

Are leasing companies exempt from negligent truck drivers’ actions?

The Federal Motor Carrier Safety Administration reports that truck crashes have increased in the past few years. According to Illinois statistics, there were over 5,500 collisions involving large trucks in 2012....more

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