News & Analysis as of

Conflicts of Interest Insurance Litigation

Wiley Rein LLP

Fourth Circuit: “Bump-Up” Exclusion Applies When Settlement Seeks to Cure Harms Associated with Undisclosed Conflict of Interest...

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The United States Court of Appeals for the Fourth Circuit, applying Virginia law, has affirmed a district court’s ruling that a “bump-up” provision in a D&O policy applied to bar indemnity coverage for the settlement of...more

Morris, Manning & Martin, LLP

Ninth Circuit Finds Pollution Exclusion Creates Conflict Requiring Independent Counsel

The insureds were sued for alleged environmental contamination from the operation of a marine terminal and chemical storage facility. The claimants alleged that hazardous materials leaked from storage tanks over a fifty-year...more

Ervin Cohen & Jessup LLP

Getting Your Insurer To Favorably Resolve Litigation

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Where a liability carrier has assumed its insured’s defense under a reservation of rights, a variety of conflicts between those parties may arise when there are settlement discussions to resolve the underlying litigation....more

Maynard Nexsen

November 2020 Torts & Insurance Fourth Circuit Cases of Interest

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Periodically, Nexsen Pruet attorney Marc Manos, a member of the SC Bar Torts and Insurance Practice Section Council, sheds light on a few recent cases from the Fourth Circuit Court of Appeals, focused in the areas of torts &...more

Harris Beach Murtha PLLC

Bad Faith Claims Against Insurers: Can They Be “SLAPP”ed?

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Responding to what have been called “strategic lawsuits against public participation” (“SLAPP”), twenty-nine states, including Connecticut, have enacted some form of anti-SLAPP legislation in recent years. These anti-SLAPP...more

Pillsbury - Policyholder Pulse blog

California Bad Faith Claims Cannot Be “Slapped”

The California Court of Appeal recently disposed of a novel attack on bad faith law launched by Zurich American Insurance Company. In Miller Marital Deduction Trust, et al. v. Zurich American Insurance Company, 2019 DJDAR...more

Proskauer - California Employment Law

Employer Sues Its Law Firm for Malpractice and EPLI Insurer for Bad Faith

These days, more employers than ever are purchasing Employment Practices Liability Insurance (“EPLI”) to cover them in the event they get sued for employment-related claims. (See our earlier posting on that topic: “A Handy...more

Carlton Fields

Second Circuit Joins Sister Circuits in Holding Party-Appointed Arbitrators Not Subject to Same Disclosure Requirements as Neutral...

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The Second Circuit recently held that parties seeking to vacate awards under Federal Arbitration Act Section 10(a)(2) must satisfy a higher burden in showing evident partiality by a party-appointed arbitrator. ...more

Butler Weihmuller Katz Craig LLP

Who Really Owns That Mitigation Company? Pennsylvania And New York Law Says It Matters If It's The Public Adjuster

It is not unusual for an insurance adjuster to arrive at a new loss to find that the insured has already hired a public adjuster and the public adjuster’s retained remediation company has started to clean up the site. ...more

Blake, Cassels & Graydon LLP

Alberta Court Releases Precedent-Setting Decision on Insurers’ Right and Duty to Defend

In its recent decision in Temple Insurance Company v. Sazwan, the Court of Queen’s Bench of Alberta (Court) considered the scope of, and exceptions to, an insurer’s right and duty to defend. This is the first decision in...more

Haight Brown & Bonesteel LLP

Court Confirms that Potential Conflicts Do Not Trigger Right to Independent “Cumis” Counsel

In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. C081266, filed 1/22/18), a California appeals court confirmed that an insured’s speculation about possible or potential conflicts do not require appointment of...more

Holland & Knight LLP

Ruling Elevates Conflicts Considerations in Insurance/Tripartite Relationship Cases - After Washington Supreme Court Decision,...

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• Relationships between insurer, insured and insurer-appointed defense counsel – also known as the "tripartite relationship" – have long been recognized as a potential source of conflicts of interest. By a 5-4 majority in...more

Bradley Arant Boult Cummings LLP

Fifth Circuit Holds that Insurer’s Payment to Insured’s Independent Counsel Erodes Policy Limits

A recent Fifth Circuit case highlights the potential risks of purchasing a defense-within-limits policy: If an insurer is obligated to hire independent counsel due to a conflict of interest, that counsel’s fees may erode your...more

Butler Snow LLP

“Generic,” “Cut-and-Paste” Reservation of Rights Letter Ineffective

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Insureds won a round the other day when the South Carolina Supreme Court held that reservation of rights letters, which it characterized as nothing but “generic statements of potential non-coverage coupled with” large...more

Cozen O'Connor

Cumis Counsel: An Insurer’s Right To Dispute Coverage Does Not Automatically Trigger A Right to Cumis Counsel

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Recently, once again, a California appeals court weighed in on the scope of the right to Cumis counsel and the meaning of Cal. Civil Code §2860. St. Paul Mercury Insurance Company v. McMillin Homes Construction, Inc., No....more

Cozen O'Connor

State Farm v. Hansen: Nevada Supreme Court Adopts California Independent Counsel Rules

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The Nevada Supreme Court has adopted California’s independent counsel rules, holding that an insured is entitled to select its own counsel where an insurer’s coverage reservation creates an actual conflict of interest between...more

Butler Snow LLP

Nevada Supreme Court adopts Cumis independent counsel rule, but refuses to hold that reservation of rights letter always presents...

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Answering two certified questions, the Nevada Supreme Court has adopted the independent counsel rule first laid down in San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., holding: When a conflict of...more

Troutman Pepper Locke

Allocation Of Covered And Uncovered Claims: Recent Decisions On Burden Shifting And Pre-Approval Requirements

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Ongoing efforts by insurers to recover amounts paid for uninsured losses after settlement or judgment have resulted in extensive litigation over allocation issues. Conflicting opinions have arisen over which party bears the...more

Zelle  LLP

Texas Legislature Reins in Public Adjuster Conduct

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Obvious to anyone in the insurance industry, Texas courts are experiencing an explosion of first-party property insurance lawsuits arising from wind and hail related insurance claims. Dozens of lawsuits are filed every day in...more

Haight Brown & Bonesteel LLP

Conclusory Allegations Held Insufficient to Support Declaratory Relief on Right to Independent Counsel or Allocation of Defense...

In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. E060057, filed 5/22/15), a California Court of Appeal held that a developer’s declaratory relief lawsuit seeking a declaration of the right to independent counsel was...more

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