• August 27, 2014

    6th Circ. Told Hobby Lobby Can't Save Catholic Orgs' ACA Suit

    Federal officials on Monday urged the Sixth Circuit to leave intact an earlier panel decision denying a preliminary injunction sought by a variety of Catholic schools, charities and dioceses over the Affordable Care Act’s contraception mandate, saying the U.S. Supreme Court’s Hobby Lobby decision backs the panel’s holding.

  • August 27, 2014

    2nd Circ. Agrees AIU's $23M Asbestos Claim Came Too Late

    The Second Circuit ruled on Wednesday that AIU Insurance doesn’t owe $23 million to TIG Insurance Co. stemming from a dispute about a settlement with Foster Wheeler Corp. over asbestos suit coverage, finding that Illinois law applies in the case and that AIU waited too long to file a claim.

  • August 27, 2014

    EQT Avoids Attys' Fees In Fracking Suit With Subcontractor

    An Ohio federal judge on Tuesday refused to reconsider an order finding that natural gas well owner EQT Production Co. must defend its drilling subcontractor in settled litigation over alleged fracking fluids contamination, but let EQT off the hook providing Warren Drilling Co. Inc. attorneys’ fees in the immediate suit.

  • August 27, 2014

    ATP Trustee Sues Insurer For Deepwater Horizon Defense

    The Chapter 7 Trustee for defunct ATP Oil & Gas Corp. filed an adversary suit in Texas federal court on Tuesday against Water Quality Insurance Syndicate, seeking defense and indemnity for a suit launched by the United States against ATP after the 2010 Deepwater Horizon oil spill.

  • August 26, 2014

    WellPoint Rates MDL Should Have Many Classes, Court Told

    Health care providers and insurance plan subscribers on Tuesday urged a California federal judge to certify a host of classes in a multidistrict litigation alleging WellPoint Inc. illegally suppressed reimbursement rates including those paid to employee benefit plans, saying class members were uniformly paid less than the “reasonable” rates WellPoint promised.

  • August 26, 2014

    Judge Won't Toss Starr's $55B Suit Over AIG Bailout

    A Federal Claims judge on Monday refused to toss Starr International Co. Inc.'s $55 billion suit against the U.S. government over the American International Group Inc. bailout, finding the complexity of the parties' factual disagreements requires a trial, which is set to begin in September.

  • August 26, 2014

    Detroit, Creditors Head To Mediation As Pressure Mounts

    The bankrupt city of Detroit, Syncora Guarantee Inc., Berkshire Hathaway Reinsurance Group and others have been ordered to appear for continued mediation on Wednesday and possibly Thursday over $1.4 billion in "certificates of participation," according to an order filed Tuesday in Michigan bankruptcy court.

  • August 26, 2014

    Conn. Health Exchange's Ex-CEO To Helm Fed. Marketplace

    Kevin Counihan, who headed the successful Connecticut Health Insurance Exchange, has been named the marketplace CEO of the Centers for Medicare and Medicaid Services, where he will lead the federal marketplace, manage relationships with state marketplaces and run health insurance regulation at the federal level, officials said Tuesday.

  • August 26, 2014

    Insurers Backed Out On $25M D&O Policies, Sava Says

    SavaSeniorCare LLC sued two of its insurers in Georgia federal court on Monday, claiming they reneged on directors and officers policies worth $25 million when they refused to cover a real estate mogul’s suit accusing two former Sava officials of misconduct in a billion-dollar nursing home deal gone bad.

  • August 26, 2014

    Arrowood Had Conflict In Moldy Bed Defense, Judge Rules

    A Minnesota federal judge held Tuesday that Arrowood Indemnity Co.'s decision to tentatively defend Select Comfort Corp. against a putative class action over defective beds created a conflict of interest, while also ruling that American Family Mutual Insurance Co. had no defense obligations.

  • August 26, 2014

    NY Homeowner Gets Allstate Sandy-Damage Suit Remanded

    A Staten Island, New York, woman whose home was wrecked by Superstorm Sandy won a round Monday in her deception suit against Allstate Insurance Group, when a Brooklyn federal judge remanded the case to state court, where a local broker also is facing litigation.

  • August 26, 2014

    Insurers Flocking To Data Breach Exclusions In CGL Policies

    Insurers are rushing to tack on recently released data breach exclusions to commercial general liability policies, hoping to substantially narrow their exposure to privacy risks. Here, experts provide policyholders the essentials on these game-changing provisions.

  • August 26, 2014

    Wis., Ind. Push 7th Circ. To Reinstate Gay Marriage Bans

    Officials from Wisconsin and Indiana pressed the Seventh Circuit on Tuesday to revive laws in each state banning gay marriage but ran into a trio of judges who pushed back against their central distinction between same-sex marriages and opposite-sex ones.

  • August 26, 2014

    Arch Defeats Coverage For Employees' Genital Exposure Suit

    A California appeals court on Monday freed Arch Insurance Co. from covering a lawsuit claiming that a manager at cosmetics manufacturer Jon Davler Inc. forced female employees to expose their genital area to determine who left a sanitary napkin in the women's bathroom.

  • August 26, 2014

    NY Regulators Could Throw Wrench In PE Insurance Deals

    The already tepid market for insurance company deals could come to a screeching halt by the end of the year if New York’s insurance commissioner pushes forward with new regulations that could drive away private equity investors, some experts say.

  • August 26, 2014

    Blue Cross Units Want $6M Tax Overpayment Credits Upheld

    A pair of Independence Blue Cross subsidiaries urged the Pennsylvania Supreme Court on Monday to uphold a decision finding they were entitled to more than $6 million in future tax credits from the city of Philadelphia to make up for overpayments in 2003 and 2004.

  • August 25, 2014

    Detroit Wins Approval For $1.5B Utility Bond Refinancing

    The city of Detroit on Monday won a bankruptcy judge's approval for its proposal to refinance nearly $1.5 billion in water and sewer bonds, a transaction that is expected to free up additional cash flow and eliminate some of the remaining opposition to its emergence from Chapter 9.

  • August 25, 2014

    $1B Temblor Should Prompt Cos. To Revisit Quake Insurance

    The 6.0-magnitude earthquake that shook Napa, California, early Sunday morning causing up to an estimated $1 billion in losses should serve as a wake-up call for companies to take a look at whether they need to buy a commercial earthquake insurance policy, despite concerns about the high cost and limitations on coverage, insurance lawyers say.

  • August 25, 2014

    Challenge To New CMS Auditor Contracts Rejected

    The U.S. Court of Federal Claims on Friday nixed a challenge to the Centers for Medicare and Medicaid Services' plan to award new contracts for recovery audit contractors, saying an incumbent company hadn't proved that the new terms unduly restricted competition.

  • August 25, 2014

    EPA Letter Triggers CGL Coverage, Texas High Court Told

    A Waste Management Inc. predecessor on Friday told the Texas Supreme Court it should join a national majority of states in holding that the U.S. Environmental Protection Agency's “potentially responsible party” letters should trigger an insurer’s duty to defend under a commercial general liability policy.

Expert Analysis

  • The 8 Gotchas Of Technology Contracting: Part 2

     Craig Auge

    Contracts for providing and obtaining technology establish important, often long-term relationships. When they involve mission-critical products and services, the impact of a flawed contract can be devastating, says Craig Auge of Vorys Sater Seymour and Pease LLP.

  • The 8 Gotchas Of Technology Contracting: Part 1

    Craig Auge

    Every business runs at least in part on technology — and, when contracting for technology products and services, the “gotchas” don’t discriminate based on size or industry. All parties can benefit from avoiding these situations, says Craig Auge of Vorys Sater Seymour and Pease LLP.

  • Some Calm For NY Claims Handlers Over Late Disclaimers

    William E. Murray

    The impact of a threatened expansion of the late disclaimer standard prior to the New York Court of Appeals' ruling in KeySpan Gas East Corp. v. Munich Reinsurance American Inc. would have been heavy for the insurance industry in that it would have created a significant burden on claims handlers, say William Murray and Joseph Geoghegan of Gordon Rees Scully Mansukhani LLP.

  • Texas' Progressive Claims Syndrome Is Treatable

    Lindsey P. Bruning

    The recent case of USAA Texas Lloyd’s Co. v. Menchaca exemplifies a prevalent concern in Texas first-party property insurance claims today — the “Progressive Claim Syndrome” — as well as its most effective treatment, says Lindsey Bruning of Zelle Hofmann Voelbel & Mason LLP.

  • AKS Unlikely To Be Raised Over Pharma Discount Sales

    Stephanie Trunk

    A recently issued opinion from the U.S. Department of Health and Human Services' Office of Inspector General assented to a drug manufacturer’s online discount program for branded drugs, making discount and referral arrangements less likely to raise concerns when they avoid federal reimbursement systems, say Stephanie Trunk and Brian Schneider of Arent Fox LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.

  • Conn. High Court Ensures Insurers Can Sue Each Other

    Dennis O. Brown

    The Connecticut Supreme Court's ruling in Travelers Casualty & Surety Company of America v. The Netherlands Insurance Company is significant because it broadens an insurer’s ability to bring a declaratory judgment action against a mutual insurer to determine the existence or allocation of a duty to defend a common insured, say Dennis Brown and Thomas Blatchley of Gordon Rees Scully Mansukhani LLP.

  • Regulators' Unclaimed Property Position Again Rejected

    Phillip E. Stano

    Thus far, the insurance industry has had the upper hand in cases involving unclaimed property audits and market conduct examinations, and recent appellate rulings in Florida and Kentucky are only the most recent in a series of victories for life insurers, say attorneys at Sutherland Asbill & Brennan LLP.

  • Inside The New Hedges And Mixed-Straddles Tax Guidance

    Christopher W. Schoen

    Because there are no current regulations addressing the federal income tax accounting treatment of hedges of guaranteed minimum benefits, a recent directive offers useful guidance that likely will reduce the amount of resources spent by both the IRS and insurance companies on auditing and resolving issues, say William Pauls and Christopher Schoen of Sutherland Asbill & Brennan LLP.

  • An In-House Lawyer's Top 10 Tips For Outside Counsel

    Francis M. Drelling

    To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.