Insurance Recovery Law

by Manatt, Phelps & Phillips, LLP

In This Issue:

  • Suit Alleging Drug Distributor Was a “Pill Mill” Requires Defense

  • Fourth Circuit: Insurer Must Defend Title and Escrow Company in State AG Suit

  • Tainted Milk Triggered Defense, Indemnification for Manufacturer

  • Alabama Supreme Court Reverses Itself, Finds Coverage for Contractor in CGL Policy

  • Policy Exclusion Eliminates Coverage for TCPA Suit, New York Court Rules

Suit Alleging Drug Distributor Was a “Pill Mill” Requires Defense

Why it matters
A Kentucky federal court held that the claimed impact in a suit brought by the West Virginia Attorney General – alleging that the insured pharmaceutical drug distributor was a “pill mill” and played a role in creating widespread drug addiction in the state – was outside of the policyholder’s control and therefore the actions of the insured were accidental, not intentional. The AG’s complaint included causes of action for both negligent and intentional conduct, which required a defense under the insured’s policy. The court declined to rule on the issue of indemnification, however, finding that if the policyholder’s conduct was determined to be intentional or illegal then the insurer would have no duty to indemnify. The Kentucky court’s decision puts another clear stamp on the rule that the duty to defend is broader than the duty to indemnify and attaches regardless of the ultimate outcome of the dispute.

Detailed Discussion
In 2012, the West Virginia Attorney General sued 13 pharmaceutical drug distributors, claiming they were an integral part of the “pill mills” in the state by supplying physicians and drugstores with drug quantities in excess of legitimate need, leading to high rates of drug addiction.

The complaint alleged eight causes of action, including a negligence claim for breach of the duty to exercise reasonable care in the marketing, promotion, and distribution of controlled substances, as well as a claim that the defendants “willfully turned a blind eye” toward the rising drug abuse by regularly distributing large quantities of controlled substances to customers.

Defendant Richie Enterprises sought coverage from insurer Cincinnati Insurance Company, which refused to provide a defense. According to the insurer, the AG’s complaint did not allege an “occurrence” or “bodily injury” pursuant to the policy; Cincinnati alternatively relied upon a policy exclusion for intentional and criminal acts.

U.S. District Court Judge Joseph H. McKinley, Jr., sided with Richie. The prescription drug abuse alleged by the AG could be deemed “accidental” and therefore an “occurrence” under the policy “since Richie did not intend for the alleged drug addiction to occur,” he wrote.

“While Cincinnati correctly points out that the underlying complaint also contains allegations of intentional conduct, Cincinnati seems to overlook that the complaint also contains allegations of negligent conduct,” the court said, listing multiple allegations of negligence from the complaint. “Moreover, the court agrees with Richie that the allegations of negligence in the AG’s complaint are, in essence, allegations that Richie did not intentionally cause the alleged harm.”

The creation of widespread drug abuse was beyond Richie’s control, Judge McKinley said. “The pharmacies in West Virginia dispensed the prescription drugs to people who presented seemingly valid prescriptions. There is no allegation that Richie ‘controlled’ the pharmacies – let alone to whom the pharmacies dispensed the drugs,” he wrote. “Likewise, physicians wrote the prescriptions for the end-users of the drugs.”

Bodily injury was alleged in the underlying complaint, the court added, because in addition to damages for economic harm, the AG included a claim for the costs of a medical monitoring program. Such a program constitutes the recovery of damages on behalf of its citizens for bodily injury, the court said.

Cincinnati then tried to hang its hat on a policy exclusion for intentional and criminal acts. But Judge McKinley, while recognizing that allegations of such behavior appeared in the complaint, said the argument was without merit.

“[T]he conduct of distributing prescription drugs based upon orders placed by pharmacies is not, in and of itself, illegal and the violation of laws cannot be reasonably anticipated,” he wrote, again characterizing the insured’s acts as accidental.

On the issue of indemnification, the court denied summary judgment for both parties, finding the issue premature. The judgment in the underlying action – whether or not it is based on intentional or illegal behavior on the part of Richie – will determine the issue of indemnification, the court said.

To read the decision in Cincinnati Insurance Co. v. Richie Enterprises LLC, click here.

Fourth Circuit: Insurer Must Defend Title and Escrow Company in State AG Suit

Why it matters
In another dispute involving underlying litigation initiated by a state attorney general, the title and escrow company faced charges of taking part in a scam targeting distressed homeowners that resulted in alleged ill-gotten gains. The insurance company successfully argued in the district court that because ill-gotten gains were expressly excluded, it had no duty to defend. The Fourth Circuit reversed, clarifying that the mere allegation of “ill-gotten” gains did not trigger the exclusion unless the policyholder itself obtained the improperly received monies. That distinction is an important refinement to arguments that insurance policies generally do not apply to ill-gotten gain, disgorgement, or other similar claims. As here, if the policyholder itself did not obtain the improper gain then a defense is.

Detailed Discussion
A scam targeting distressed homeowners was the basis for a lawsuit filed by the Maryland Attorney General in 2008. The AG named 11 parties to the suit, including Cornerstone Title & Escrow. According to the complaint, the defendants induced homeowners facing foreclosure to enter into a sale-leaseback agreement and then pocketed any equity in the home while renting it back to the homeowners.

Cornerstone was the settlement agent for the deals, the AG said, and failed to deliver the homeowners their checks, instead sending them to the other defendants. The suit also alleged that all of the defendants were jointly and severally liable for the conduct of the others. Because of the allegations and the AG’s joint and several claim – which encompassed the intentional, fraudulent actions of the other defendants – Cornerstone’s insurer Evanston Insurance Company denied any duty to defend.

Cornerstone eventually agreed to a $100,000 settlement with the AG.

The insured filed a breach of contract suit and a federal district court judge granted summary judgment for Evanston. But the Fourth Circuit reversed.

Finding that the “Service and Technical Professional Liability Insurance” policy applied, the federal appellate panel considered Evanston’s argument that the Maryland AG’s case implicated two of the policy’s exclusions: Exclusion (n), which applied to claims based on Cornerstone “gaining any profit or advantage” to which it was not legally entitled, and Exclusion (x), for theft or conversion.

The court dismissed Exclusion (n), as Cornerstone may have collected the settlement proceeds, but did not retain them. “The Attorney General’s complaint did not allege that any particular ‘profit’ or ‘advantage’ inured to Cornerstone’s benefit, as exclusion (n) requires,” the panel wrote. “To the contrary, the complaint alleged that all the relevant benefits and funds went” to the other defendants. As the settlement agent, Cornerstone was required to collect the settlement proceeds, but “those assets went to parties other than ‘the Insured’ under the terms of Cornerstone’s policy with Evanston,” the court said. And the complaint made no allegations that Cornerstone overcharged or failed to provide bona fide settlement services. “Under the plain terms of exclusion (n), Cornerstone’s receipt of legally justified funds does not defeat policy coverage.”

Turning to Exclusion (x), Evanston told the court that Cornerstone committed conversion by delivering the checks to the other defendants and not the homeowners. Even assuming an improper delivery, the insured’s actions did not amount to conversion under Maryland law, the court explained. To commit conversion in the state, the payee of the check – in this case, the homeowner – must first receive the check before he or she can bring a conversion action based on a misuse or improper delivery of it. Because the checks never went to the homeowners, a necessary element of conversion was not met.

Two additional exclusions – Exclusion (a), for “dishonest, deliberately fraudulent, malicious, willful or knowingly wrongful acts or omissions,” and Exclusion (cc), eliminating coverage for violations of the Real Estate Settlement Procedures Act or analogous state law – were raised by Evanston. As the federal district court did not consider the application of these provisions, the Fourth Circuit did not address them, but remanded the case for it to do so.

To read the order in Cornerstone Title & Escrow Inc. v. Evanston Ins. Co., click here.

Tainted Milk Triggered Defense, Indemnification for Manufacturer

Why it matters
The Eighth U.S. Circuit Court of Appeals found that a manufacturer of dried milk was entitled to defense and indemnification after facing a lawsuit from a purchaser that recalled its products out of fear of tainted milk. The federal appellate panel determined that the sale of the milk was an “accident” under the policy and the “Your Product” exclusion the insurer relied upon was inapplicable. The court concluded that the property damage claimed in the underlying suit occurred to a purchaser’s product, not the milk itself. The importance of this decision is the confirmation that the “your product” exclusion only applies to damage to the product itself and not to damage to a third party’s product.

Detailed Discussion
Main Street Ingredients purchased dried milk products from Plainview Milk Cooperative in 2007 and, in turn, sold the products to Malt-O-Meal. Malt-O-Meal then incorporated the dried milk into its instant oatmeal products.

In 2009, the Food and Drug Administration found salmonella bacteria on food-contact surfaces and in areas used to manufacture dried milk products in Plainview’s plant. In response, Plainview issued a voluntary recall notice of dried milk produced from 2007 to 2009, stating that it had “the potential to be contaminated with salmonella.”

Malt-O-Meal recalled its instant oatmeal as a result and then filed suit against both Main Street and Plainview. Main Street and Malt-O-Meal reached a deal to settle the suit for $1.4 million.

Main Street’s insurer The Netherlands Insurance Company provided a defense with a reservation of rights but sought a declaration that it had no duty to defend or indemnify the insured for the settlement.

The Eighth Circuit reached the opposite conclusion, ruling that Malt-O-Meal’s complaint triggered both a duty to defend and indemnify. Although the settlement deal did not include a finding of liability, the court said it was enough for Main Street to establish a finding of potential liability in the underlying litigation.

Netherlands argued that no property damage actually occurred in the underlying case because there was no factual finding that either the dried milk or the instant oatmeal contained salmonella. But the three-judge panel said the FDA’s findings included 13 instances of unsanitary conditions, including salmonella, and testimony from Plainview’s general manager established that some of those conditions dated back to 2007.

“[T]he dried milk was ‘prepared, packed, or held under insanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health,’ and was therefore ‘adulterated,’ whether or not it contained salmonella, so too was the instant oatmeal,” the court explained, quoting the FDA’s letter. Whether or not the oatmeal could be safely consumed, it could not be sold lawfully.

“According to Minnesota law, this constitutes physical ‘property damage’ to the instant oatmeal and Main Street has ‘show[n] it could have been liable under the facts shown,” the panel said. The court further found that an “occurrence” existed under the policy. “Because Main Street did not intentionally sell to Malt-O-Meal FDA-condemnable dried milk, the sale of FDA-condemnable dried milk was an ‘accident’ that constituted an ‘occurrence’ under the policy,” the court said.

Policy exclusions put forth by Netherlands failed to change the court’s mind. The “Your Product” exclusion was inapplicable because Main Street sought indemnity not for damage to its milk, but for damage to the Malt-O-Meal oatmeal caused by the inclusion of the milk.

“Main Street did not seek indemnification for property damage to its dried milk, but for property damage to Malt-O-Meal’s instant oatmeal, that is, the product liability settlement amount with Malt-O-Meal,” the panel said. “Malt-O-Meal manufactured a new product that included Main Street’s product as an inseparable ingredient such that the damage was to Malt-O-Meal’s entire product, which could not be alleviated by repair or replacement of Main Street’s product. The dried milk, once incorporated, could not be separated from the other ingredients in the instant oatmeal.”

The tainted milk did not fall under an exclusion for impaired property because it could not “be restored to use,” the court added, while a recall exclusion did not apply because Main Street’s claim was not for its recall expenses but Malt-O-Meal’s property damages.

To read the decision in The Netherlands Ins. Co. v. Main Street Ingredients, click here.

Alabama Supreme Court Reverses Itself, Finds Coverage for Contractor in CGL Policy

Why it matters
Joining the recent trend of recognizing coverage for construction companies under a commercial general liability policy for suits filed by homeowners, the Alabama Supreme Court reversed itself, ordering an insurer to pay a $600,000 arbitrator’s award against a policyholder. Clarifying state law, the court held that damages as a result of damage beyond the insured’s own work constituted a covered occurrence. The only costs not covered were those solely related to the cost of repair or replacement of the actual damage arising from the poor construction itself. To explain its decision, the court framed the distinction by analogizing to a construction company that negligently constructed a roof, resulting in water damage to a home. In a suit by a homeowner, the cost of repairing the defective roof is not covered while the monies spent repairing the remainder of the home damaged by the water would be.

Detailed Discussion
A couple contracted with Jim Carr Homebuilder (JCH), agreeing to pay $1.2 million for a new home. But within a year, the couple noted water damage due to leaks in the roofs, walls, and floors of their new home. The couple sued JCH and an arbitrator ultimately awarded them $600,000.

JCH held a commercial general liability (CGL) policy with Owners Insurance Company and filed a timely claim. Owners provided a defense while reserving its rights, filing a declaratory judgment action to determine the scope of its obligations.

Last September, the Alabama Supreme Court affirmed summary judgment for Owners, finding that it owed JCH no duty to defend or indemnify the contractor for the arbitrator’s award.

But the court then reversed itself, clarifying the scope of coverage under CGL policies for insured contractors.

Owners took the position that the property damage and bodily injury upon which the award was based were not the result of an “occurrence” under the policy, defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” The insurers argued an occurrence required damage to property that is not part of the project itself, the insurer told the court.

While the court agreed that faulty workmanship itself is not an occurrence, it held that faulty workmanship could lead to an occurrence if it subjects the property to “continuous or repeated exposure” to some other “general harmful conditions.”

“Indeed, to read into the term ‘occurrence’ the limitations urged by Owners would mean that, in a case like this one, where the insured contractor is engaged in constructing an entirely new building, or in a case where the insured contractor is completely renovating a building, coverage for accidents resulting from some generally harmful condition would be illusory,” the court wrote. “There would be no portion of the project that, if damaged as a result of exposure to such a condition arising out of faulty workmanship of the insured, would be covered under the policy.”

Finding that the homeowners’ claims triggered coverage, the court then rejected Owners’ reliance upon the “Your Work” exclusion, which included the products-completed hazard. [cite] JCH purchased supplemental coverage – a total of $4 million – for its completed operations, and “that coverage applies to [the homeowners’] claims and, pursuant to the terms of the Owners policy, Owners must indemnify JCH for the judgment entered against it.” The “your work” exclusion applies narrowly and does not exclude coverage for property damage to other parts of the project.

To read the decision in Owners Insurance Co. v. Jim Carr Homebuilder LLC, click here.

Policy Exclusion Eliminates Coverage for TCPA Suit, New York Court Rules

Why it matters
Courts across the country are tackling the first wave of the insurance disputes arising out of Telephone Consumer Protection Act lawsuits. Recently, the Missouri Supreme Court held that the purpose of the statute is remedial and not punitive, making damages for the suits insurable, while a federal court in Illinois concluded that a policyholder was entitled to indemnification for a $5.8 million settlement. As coverage litigation over the TCPA continues, new decisions emerge in this very unsettled atmosphere. Under the facts it reviewed, a New York federal court found that allegations in a TCPA complaint alleging a consumer protection violation, rather than a privacy violation, were expressly excluded. The court noted that TCPA allegations in and of themselves were not automatically excluded by the policy but, rather, the allegations at issue were excluded by the specific exclusion for the claims alleged violations of consumer protection laws. Court will continue to grapple with TCPA claim on a case-by-case basis.

Detailed Discussion
Convergys Corporation was named as a defendant in a Telephone Consumer Protection Act suit filed in Illinois federal court by Nicholas Martin. The class action charged that Convergys and a second defendant violated the statute by sending unsolicited autodialed calls to the class members’ cell phones.

A federal district court judge granted preliminary approval to a settlement in January.

Meanwhile, Convergys sought a defense from insurer Beazley, a syndicate of Lloyd’s, London. Beazley initially denied coverage but relented, providing a defense with a reservation of rights. The insurer subsequently filed a declaratory action in New York federal court and filed a motion for summary judgment.

Beazley argues that exclusion K barred coverage for claims “arising out of or resulting from any actual or alleged . . . violation of consumer protection laws (except for consumer privacy protection laws under Insuring Clause I.C.).”

Convergys pointed to the exclusion’s exception under Insuring Clause I.C.2(c)(iii), characterizing the underlying suit as a violation of the class members’ privacy rights.

But U.S. District Court Judge Claire R. Kelly concluded that the exclusion – and not the exception to the exclusion – was in force.

“By its plain terms, Exclusion K bars coverage for the Martin action,” she wrote. The class action, “which sought recovery under the TCPA, was a claim ‘[f]or, arising out of or resulting from any actual or alleged . . . violation of consumer protection laws,’ ” as it alleged a violation of the TCPA and sought redress for violation of the statute. “[T]here can be no reasonable difference of opinion that the Martin action was a claim for a violation of a consumer protection law,” the court added.

Convergys’ attempt to rely upon the Insuring Clause exception was unavailing. Although the court noted that the “TCPA can reasonably be viewed as both a consumer protection law and consumer privacy protection law under the policy’s language,” the exception to the exclusion did not apply to the underlying complaint.

“There is nothing in the Martin complaint that would lead to the conclusion that the class sought to recover for failure to comply with a privacy policy. Nor did the class seek to recover under a privacy policy that provides a person with the ability to opt-in or opt-out of the collection or use of his personally identifiable non-public information,” Judge Kelly wrote. “Both the Martin complaint and the settlement release make clear the Martin action was ‘for’ a violation of a consumer protection law, the TCPA, not for a failure of Convergys’ to comply with a privacy policy.”

Even assuming that one of Convergys’ privacy policies was violated by the same conduct challenged in the Martin litigation, “there is no genuine dispute that either the complaint, or the settlement was ‘for’ the ‘failure by the insured to comply’ with a privacy policy, let alone any of the specific enumerated parts of a privacy policy to which I.C.2(c) applies,” the court said.

To read the decision in Certain Underwriters at Lloyd’s v. Convergys Corp., click here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Manatt, Phelps & Phillips, LLP | Attorney Advertising

Written by:

Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.