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An issue that remains contentious is whether the Supplementary Payments provisions in the general liability policy provide coverage for attorney’s fees, which the insured is ordered to pay at the conclusion of litigation. ...more
In Vermont Mutual Insurance Company v. Poirier, the Massachusetts Supreme Judicial Court (SJC) ruled that attorney’s fees awarded under M.G. L. c. 93A are not covered by a Businessowner’s Liability Policy, because such fees...more
The indemnification clause is one of the most important provisions in a construction contract. It transfers risk from one party, the “indemnitee,” to another party, the “indemnitor.” The risk is transferred by way of the...more
Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...more
Is an insured (or putative insured) entitled to recover its legal expenses if it is successful in coverage litigation? In some states, no. In many other states, yes – based on either a statute or common law. In New York...more
In Greene v. Kenneth R. Will, a CGL insurer recently prevailed in a declaratory judgment action arising from an underlying class action alleging pollution and nuisance claims against the insured, VIM Recycling LLC, an...more
As the old adage goes, “the devil is in the details.” Insurance policy terms do not always apply in ways that policyholders expect. For this reason, it is imperative to understand how coverages, definitions and exclusions...more
As Hurricane Harvey continues to wreak historic damage in Texas, recent updates to a state law dealing with the responsibilities of insurers are scheduled, by sheer coincidence, to take effect this Friday, September 1, 2017....more
To understand the implications of Macedo II, it is important to understand what brought us here. It’s a long and bumpy road, but understanding what brought us here will be critical in order to understanding how to go forward....more
An insured corporation settles a class action, and a portion of the settlement pays the plaintiffs’ attorneys. Payments to the class are excluded from coverage under the terms of the corporation’s liability policy. But can...more
Moral hazard lurks around the edges of many disputes about liability coverage. Everyone agrees in principle that insurance shouldn’t help bad actors benefit from their wrongdoing, but parties often clash over where the...more
Newly Enacted California Statutes - The Word "Alien" Is Stricken From The California Labor Code - Section 1725 of the California Labor Code defines "alien" as "any person who is not a born or fully naturalized...more
Good News for Corporate Policyholders: Insurer Cannot Refuse Coverage Based on Insured's Assignment of Rights Under Policies After Loss Has Occurred - Why it matters: Reversing its holding in a 2003 case, the Supreme...more
The California Supreme Court held in Hartford Casualty Insurance Company v. J.R. Marketing, L.L.C. (Squire Sanders) (8/10/2015 - #S211645) that if Cumis counsel, operating under a court order which such counsel drafted and...more
Many corporate executives may be under the impression that the defense costs they incur when sued for actions taken in their role as officers of the company would be covered by a “Management Protection” insurance policy. The...more
The Supreme Court of New Jersey recently issued a significant pro-policyholder decision regarding fee-shifting under the New Jersey Court Rules. Under Rule 4:42-9(a)(6), courts may award attorneys’ fees in “an action upon a...more
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