• October 20, 2014

    OneBeacon Hit With $20M Verdict Over Dish Malpractice Case

    A Texas federal jury on Friday issued a $20.5 million verdict in favor of law firm T. Wade Welch & Associates to conclude a trial over whether OneBeacon Insurance Group Ltd. had to indemnify the firm against malpractice claims that its former client Dish Network Corp. brought after being sanctioned in antitrust litigation.

  • October 20, 2014

    CVS Developing Tobacco-Free Pharmacy Benefit Network

    CVS Health said Monday it was developing a new network of tobacco-free pharmacies, a move that has implications for employer benefit plans and that reportedly will require some consumers to pay additional copays to fill prescriptions at pharmacies that continue to sell cigarettes.

  • October 20, 2014

    With Lessons Learned, FHFA Lets Mortgage Giants Ease Credit

    The Federal Housing Finance Agency's plan to boost mortgage lending by allowing Fannie Mae and Freddie Mac to purchase loans with 3 percent down payments may stir housing bubble memories, but experts say better underwriting standards and other protections should prevent the worst subprime lending practices from returning.

  • October 20, 2014

    High Court Denies Blue Cross' Appeal In Hidden Fee Case

    The U.S. Supreme Court on Monday declined to hear Blue Cross Blue Shield of Michigan's appeal of a $5.1 million judgment against the insurer over allegations it charged an auto supplier hidden fees while administering its health plan, allowing a host of similar lawsuits to go forward, according to plaintiffs' firm Varnum LLP.

  • October 20, 2014

    Harbinger Battles For $50M Discount On OM Group Sale

    Harbinger Group Inc. locked horns with OM Group (UK) Ltd. over a $350 million insurance acquisition's terms Monday, with Harbinger claiming the London seller had no plan to cope with skeptical Maryland regulators and with OM insisting Harbinger seized on a regulatory stumble to unlawfully demand a $50 million price break.

  • October 20, 2014

    Chiropractors Can't Keep Excess Medicare Pay, Humana Says

    Humana Inc. is attacking a proposed class action in Ohio federal court accusing it of improperly recouping Medicare Advantage overpayments from chiropractors, saying the lawsuit clearly misreads federal law and would undermine anti-fraud efforts.

  • October 20, 2014

    2nd Circ. Denies Seneca's Bid For Reinsurer Reimbursement

    The Second Circuit has refused to overturn a lower court’s finding that Seneca Insurance Co. can’t claim reinsurance from Everest Reinsurance Co. in a wrongful termination suit, finding “no merit” in Seneca’s arguments that prejudgment interest should be considered part of its loss.

  • October 20, 2014

    2 More HCA Hospitals Added To Fla. PIP Coverage Class Suit

    A putative class action pending in Florida federal court against HCA Holdings Inc. for alleged overcharging of patients' personal insurance protection at one of its Florida hospitals has been expanded to include two additional facilities in the state.

  • October 20, 2014

    Detroit Could See Decision On Ch. 9 Exit Within Weeks

    The judge presiding over Detroit’s bankruptcy case said Monday that the city will likely find out in less than three weeks if it can exit the largest Chapter 9 in history under a plan that would erase more than $7 billion in debt and reinvest in essential services to reverse a half-century of civic decline.

  • October 20, 2014

    Aussie Insurer Medibank's IPO Could Reach $4.8B

    The initial public offering for Australian state-owned health insurer Medibank Private is expected to be worth AU$4.3 billion to AU$5.5 billion (US$3.7 billion to US$4.8 billion), making it one of the top 100 companies on the Australian Securities Exchange and a potential magnet for foreign investors, the government said Monday.

  • October 20, 2014

    Judge Sets Cleanup Cost Formula For Long Island Gas Plants

    A New York state judge has ruled that Century Indemnity Co. must use a pro rata allocation formula to determine cleanup costs for polluted manufactured gas plant sites on Long Island, New York, in a 17-year-old dispute pitting Century and others against current policyholder KeySpan Corp.

  • October 17, 2014

    Same-Sex Marriage Bans Fall In Alaska, Arizona, Wyoming

    In a flurry of decisions Friday, same-sex couples can now marry in Alaska and Arizona, while a federal judge in Wyoming struck down that state’s gay marriage ban, but stayed the ruling for a week pending an appeal.

  • October 17, 2014

    Judge Won't Sanction Insurance Brokers In Discovery Spat

    A Florida federal judge on Thursday denied Guarantee Insurance Co.'s bid for sanctions against its insurance agent and broker over alleged discovery violations, ruling the defendants had not acted in bad faith in the dispute over the handling of an underlying workers’ compensation claim.

  • October 17, 2014

    Mass Mutual Sues JPMorgan Over 'RetireSmart' Rights

    Massachusetts Mutual Life Insurance Co. on Friday asked a federal judge to cancel JPMorgan Chase & Co.’s trademarks for its “SmartRetirement” services and called for a declaration that the insurer’s own retirement services under the name "RetireSmart" don’t infringe those marks.

  • October 17, 2014

    Ex-AIG CEO Says Only Bailout Alternative Was Failure

    Former American International Group Inc. CEO Edward Liddy argued Friday that the only alternative the company had to accepting the Federal Reserve’s “relatively harsh” 2008 bailout offer was bankruptcy, saying even with its stringent conditions shareholders had ultimately benefited from the deal.

  • October 17, 2014

    MetLife Faces Tough Task In Challenge To SIFI Designation

    MetLife Inc. faces an uphill battle in its challenge to its proposed designation as a systemically important financial institution subject to Federal Reserve oversight, given factors such as the highly deferential standard of review favoring federal regulators, experts say.

  • October 17, 2014

    AIG Blasts IRS Economic Substance Claims In $306M Tax Row

    American International Group Inc. on Tuesday bashed the IRS for alleging that several transactions AIG used for foreign tax credits lacked economic substance, telling the Second Circuit the doctrine doesn't apply to the $306 million refund fight because the company complied with congressional standards.  

  • October 17, 2014

    Patient Seeks $2.5B From UnitedHealth Over Hep C Exposure

    Two United HealthCare Services Inc. units could face $2.5 billion in damages at a trial beginning Monday in Nevada over allegations they exposed customers to hepatitis C by knowingly referring them to contaminated endoscopy clinics, after a similar trial last year resulted in a historic $524 million verdict.

  • October 17, 2014

    Northrop Narrows Coverage Claims In Travelers Cleanup Row

    Northrop Grumman Corp. has dropped claims against Travelers Indemnity Co. for coverage of environmental cleanup costs at two southeast U.S. sites, according to a Thursday order filed in New York federal court, as the parties prepare for settlement discussions concerning other sites along the East Coast.

  • October 17, 2014

    Old Mutual Forks Over $941M For UK Investment Manager

    International insurance giant Old Mutual PLC is set to acquire private equity-backed investment manager Quilter Cheviot for up to £585 million ($941.2 million), the companies said Friday, moving Old Mutual one step closer to its goal of becoming a leading wealth management player in the U.K.

Expert Analysis

  • How Hotels Can Control The Consequences Of Force Majeure

    Andrew P. B. MacGeoch

    Force majeure clauses in hotel management agreements may be regarded by some as boring boilerplate provisions. Yet, in the aftermath of a significant event — which could range from heightened political tension as in Hong Kong to the rapid spread of viruses such as Ebola — it can become key to the operation of the whole agreement, say Andrew MacGeoch and Emily Wong of Mayer Brown LLP.

  • Accessing The D&O Liability Coverage Of A Bankrupt Corp.

    Mary E. McCutcheon

    A traditional directors and officers insurance policy risks dilution where the company also faces a covered claim. And when the company has filed for bankruptcy, payment of the proceeds for claims against the directors and officers may be delayed, and even impaired, says Mary McCutcheon of Farella Braun & Martel LLP.

  • NCAA Insurance News — A Step In The Right Direction

    Richard Giller

    Although the National Collegiate Athletic Association's recent decision to enable student-athletes to borrow against their potential future earnings in order to purchase insurance that protects those earnings only affects the handful of student-athletes who might play professional sports, it nevertheless represents a significant departure from the NCAA’s previous position, says Richard Giller of Polsinelli PC.

  • Summary Judgment Is No Dress Rehearsal

    Patricia St. Peter

    UnitedHealth Group Inc. v. Columbia Casualty Co. is a blunt reminder that the failure to prove up one’s case with actual evidence at the summary judgment phase can have serious consequences. It's also instructive on the types of proof an insured may rely on to prove allocation between covered and uncovered claims in a multiclaim settlement, say Patricia St. Peter and Kaisa Adams of Zelle Hofmann Voelbel & Mason LLP.

  • The Root Cause Of Skyrocketing Defense Costs

    Douglas W. Greene

    The costs of defending securities class actions continue to increase, and the root cause is the convergence of two related factors — the prevailing view that securities class actions are “bet the company” cases, and the consequent reflexive hiring of BigLaw firms, says Douglas Greene of Lane Powell PC.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.

  • Why Pro Rata Allocation Is The Majority Rule

    Scott M. Seaman

    "All sums" liability theory is based on an erroneous and selective reading of "all sums" language — such an interpretation violates the fundamental and nearly universal rule of construction that insurance contracts must be read as a whole, says Scott Seaman of Meckler Bulger Tilson Marick & Pearson LLP.

  • 7th Circ. Says Random Sampling Works For CAFA, Not How

    Esther S. McDonald

    Although the Seventh Circuit's ruling in Myrick v. WellPoint Inc. suggests a plaintiff may meet the burden of proving members of a putuative class action qualify under the home-state exception of the Class Action Fairness Act through random sampling, many questions remain unanswered, says Esther McDonald of Seyfarth Shaw LLP.

  • Fla. Appellate Court Expands Insurance Bad Faith Law

    Mike S. Levine

    Cammarata v. State Farm Florida Insurance Company represents a significant broadening of insurer bad faith law in Florida — where an insurer could previously avoid bad faith exposure simply by defeating a policyholder’s breach of contract claim, such a defeat no longer offers the insurer safe harbor, say Mike Levine and Anna Lazarus of Hunton & Williams LLP.

  • Information Governance: A Missed Opportunity For Lawyers

    Ann Snyder

    Today, information intersects every practice area, making all lawyers effectively information governance practitioners in one way or another. The issue is whether you will consciously embrace this emerging discipline — and capitalize on it to the benefit of your clients and your practice, says Ann Snyder of the Information Governance Initiative.