Specialty Lines
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February 26, 2024
New York Pandemic Coverage Ruling Offers Few Surprises
Businesses seeking insurance coverage for their pandemic losses were dealt yet another loss recently by New York's top court, a ruling that didn't surprise attorneys watching to see whether the Empire State might buck the trend of carrier victories.
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February 23, 2024
Insurance M&A Partner From Sidley Joins Kirkland
Kirkland & Ellis LLP has added a corporate partner in its insurance transactions and regulatory and financial institutions practice groups, bringing on a former Sidley Austin LLP attorney who said he "couldn't be more excited" to join the firm's Chicago office.
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February 26, 2024
Justices' Maritime Insurance Ruling Retains Tilted Status Quo
When the U.S. Supreme Court ruled last week that an insurer can enforce choice-of-law provisions in a marine insurance policy it issued to the owner of a yacht that ran aground, it upheld existing practices that give insurers the upper hand over policyholders.
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February 22, 2024
9th Circ. Urged To Rethink Hiscox Win Due To Hidden Ruling
A design and marketing company urged the Ninth Circuit on Thursday to review its decision that an insurer didn't have to cover an $850,000 arbitration award to a former CEO over alleged fraud, arguing that the insurer hid the underlying action's judgment that rejected the proposed fraud language.
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February 22, 2024
Lumber Co., Insurer To Settle $4.9M Coverage Dispute
A subcontractor and its professional liability insurer have reached a settlement in principle on about $5 million in underlying claims over moldy, defective wooden framework the subcontractor supplied to a senior living project, the parties told a Florida federal court.
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February 21, 2024
NY Judges Question Lehman's Bid To Undo CDS Trial Loss
A panel of New York appeals court judges on Wednesday appeared reluctant to undo a bench trial loss Lehman Bros.' bankrupt European unit suffered last year in a suit attempting to clawback nearly half a billion dollars from Assured Guaranty over alleged losses on credit default swaps tied to the 2008 financial crisis.
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February 21, 2024
Justices Told NRA Speech Claim Would Thwart Regulation
The ex-head of New York's financial regulator has told the U.S. Supreme Court her statements advising companies to consider their relationships with the National Rifle Association following the 2018 mass shooting in Parkland, Florida, didn't violate the First Amendment, rejecting the NRA's position that the statements were a "veiled threat."
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February 21, 2024
11th Circ. Says Sotheby's Insured For Fla. Agent Theft Row
An Eleventh Circuit panel affirmed Wednesday that an insurer must defend One Sotheby's International Realty against allegations that its agent bamboozled married Russian investors into selling their Miami Beach-area condo at below market value, eventually stealing $3.7 million in sale proceeds.
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February 21, 2024
Justices Back Choice-Of-Law In Marine Insurance Suit
An insurer can enforce choice-of-law provisions in a marine insurance policy it issued to the owner of a yacht that ran aground, the U.S. Supreme Court said Wednesday in a decision upholding long-standing maritime law principles of uniformity and certainty.
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February 20, 2024
Insurer Must Pay Defense Costs In Newspaper Shooting Row
An insurer owed coverage to the parent companies of a Maryland newspaper for the legal fees resulting from two underlying lawsuits brought by the victims and their families after a 2018 mass shooting, an Illinois federal judge ruled Tuesday.
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February 20, 2024
Casinos Say 'Unique' Policy Should Cover $130M COVID Loss
A casino operator with properties on the Las Vegas Strip and beyond told a Nevada federal court that its "unique" all-risk insurance is the broadest available coverage and should pay for $130 million in business interruption losses caused by the COVID-19 pandemic.
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February 20, 2024
Pharma Co. Can Get D&O Coverage For Securities Suit
A pharmaceutical company that developed a drug for rare genetic blood disorders is covered under a recent directors and officers policy for a securities class action, a Delaware state court ruled, rejecting its insurers' contention that the action was related to an SEC subpoena and thus fell under an older policy.
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February 16, 2024
Insurer Seeks To Cancel $15M Policy Over 'Human Life Wager'
A life insurance company has urged a New Jersey federal court to void a $15 million policy it calls an illegal "human life wager" on a man whose death benefits a bank, rather than his own family.
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February 16, 2024
Therapy Co.'s Policy Lie Bars Fraud Coverage, 4th Circ. Says
A defunct child therapy practice is not entitled to coverage for suits accusing one of the practice's employees of pretending to be licensed, the Fourth Circuit affirmed in a published opinion Friday, saying a material misrepresentation in the clinic's insurance applications warrants rescission of the policy.
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February 15, 2024
Damaged Champagne Cargo Row Can Proceed, Judge Says
A New Jersey federal judge preserved the majority of a $930,000 coverage dispute over a damaged champagne shipment Thursday, denying a logistics company's bid for dismissal while giving an insurer the opportunity to put forth an alternate pleading.
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February 15, 2024
Club, Insurer Resolve Fiduciary Breach Coverage Row
A country club owner, various club board members and Selective Insurance Co. agreed to dismiss their dispute Thursday in Massachusetts federal court over coverage for breach of contract and fiduciary duty claims that club investors lodged in arbitration, resolving the coverage case after reaching a settlement in January.
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February 15, 2024
Software Company Seeks $10M Policy Limit For Bad Deal
A software company told a California federal court that its insurer breached its contract by failing to cover $10 million in damages suffered because of misrepresentations made by a property and casualty insurance software company it bought.
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February 15, 2024
Oil Trader Says Cargo Storage Expenses Are Covered
An oil and gas trader slammed Liberty Mutual's attempt at an early win in a $2.4 million coverage dispute over losses related to a contaminated oil shipment, telling a New York federal court Thursday it is entitled to recover both barge storage expenses and attorney fees.
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February 14, 2024
Insurer Needn't Defend Landlord From Antitrust MDL
A Washington state judge has ruled in favor of an insurer in a coverage dispute revolving around nearly 40 antitrust class action claims against landlords that have been combined into a multidistrict litigation case, finding that the insurer owes no defense coverage to an accused property manager.
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February 14, 2024
Contractor Owes $13M To Cover Virus Defaults, Insurer Says
A Michigan-based insurer asked a Florida federal court Wednesday to grant a default final judgment in its indemnification suit against a contractor, seeking to force the company to cough up nearly $13 million to reimburse payments against its surety bonds and protect the insurer from future claims.
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February 14, 2024
Bed Bath & Beyond Execs Given Access To $10M In Insurance
An insurer for bankrupt housewares retailer Bed Bath & Beyond will cover up to $10 million in legal costs incurred by company executives who were subpoenaed or named as defendants in litigation connected to the store, a New Jersey bankruptcy court said.
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February 14, 2024
Progressive Unit Seeks Win Against Uber, Widower Of Driver
A Progressive unit asked a North Carolina federal court Wednesday to grant it a win in its attempt to get out of providing coverage for an UberEats driver who was killed in a car crash, asserting that its policy for Uber doesn't cover injuries caused by uninsured or underinsured motorists.
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February 14, 2024
Miami Law Firm Not Covered In Overbilling Row, Judge Says
An insurer does not have to defend a Miami law firm in a lawsuit accusing it of overbilling a client, a Florida federal judge has ruled, finding that the underlying allegations do not constitute professional services as defined by the firm's policy.
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February 13, 2024
Insurers Must Pay Pharma Co. Defense Costs In SEC Probe
A drug development company formed by a merger is entitled to insurance payments for expenses it paid two of its former officers in connection with federal subpoenas because the insurer failed to show that an exclusion applied, a California federal judge ruled Monday.
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February 13, 2024
CEO Needn't Consent To CFO's Settlement, NY Court Says
A sporting goods company's former CEO does not get a say in the former CFO's $2.8 million settlement with a liquidating trust just because they're both insured under the same directors and officers policy, a New York federal judge ruled, calling the ex-CEO's interpretation of the policy "unreasonable and illogical."
Expert Analysis
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BIPA Ruling Furthers Mixed Signals On Insurance Coverage
A recent Illinois appellate ruling in Remprex provides another perspective on the issue of insurance coverage for Biometric Information Privacy Act lawsuits, but its reach will be limited, as it did not cover the three exceptions that have been the focus of related federal court decisions, says Charles Insler at HeplerBroom.
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What Texas Misrepresentation Ruling Means For Insurers
The Texas Supreme Court's recent decision in American National Insurance v. Arce, confirming that insurers must prove intent to deceive in order to rescind coverage based on material misrepresentation, solidifies additional burdens for insurers to consider during both the underwriting and claims adjudication processes, say Josh Pedelty and Javon Johnson at Husch Blackwell.
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Less Cyber Coverage, More Compliance Risk For Cos.
Despite recent favorable court decisions recognizing cyber coverage under various policies, policyholders face a challenging road ahead due to insurers' new policy exclusions and regulators' new reporting requirements and increased penalties, say Luma Al-Shibib and Steven Pudell at Anderson Kill.
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Climate Reporting Regs Mean New Risks To Insure
As regulators in the U.S., U.K. and beyond implement new climate-related investment and disclosure requirements for corporations, decision makers should investigate whether their insurance policies offer the right coverage to respond to the legal and regulatory risks of this increased scrutiny, says David Cummings at Reed Smith.
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Md. Abuse Law Makes Past Liability Coverage Review Vital
Maryland is the first state to allow an indefinite lookback period for previously time-barred lawsuits by victims of child sexual abuse against public and private entities — and lawsuits brought under the new law likely will implicate coverage under insurance policies issued over the past 80 years or longer, say Michael Levine and Olivia Bushman at Hunton.
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FTX Proceedings Highlight D&O Issues Amid Bankruptcy
A Delaware bankruptcy judge’s recent refusal of Samuel Bankman-Fried's request to access FTX's directors and officers coverage serves as a reminder of the interplay of bankruptcy law and D&O insurance policies, and some best practices for policyholders when pursuing D&O coverage during bankruptcy, say Geoffrey Fehling and Justin Paget at Hunton.
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5 Tips For Filing Gov't Notices After Insurance Producer M&A
As insurance producer acquisition activity picks up in 2023, requiring a daunting process of notifying information changes to each Department of Insurance where the entity is licensed, certain best practices will help buyers alleviate frustration and avoid administrative actions and fines, say attorneys at Foley & Lardner.
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Insureds' Notice Pleading May Be Insufficient In Federal Court
A recent New Jersey federal court ruling in Bauman v. Hanover Insurance held that bare-bones notice pleading was insufficient and dismissed the policyholder's coverage complaint, a reminder that courts may require more than an expression of general disagreement with an insurance company's denial letter to proceed with the case, says Eugene Killian at The Killian Firm.
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5th Circ. Offers Expert Opinion Guidance For Insurance Cases
A recent Fifth Circuit decision in Majestic Oil v. Lloyd's of London provides insight into how Texas' concurrent causation doctrine could affect insurance cases where the cause of damage is at issue, and raises considerations for litigants faced with new or revised expert reports after the deadline has passed, say Brian Scarbrough and Cianan Lesley at Jenner & Block.
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DUI Liability Ruling Affirms SC Isn't Direct Action-Friendly
The Supreme Court of South Carolina's recent decision in Denson v. National Casualty not only clarifies the state's jurisprudence surrounding private rights of action and negligence per se, but also tacitly reinforces that South Carolina is not a direct-action state, say Anna Cathcart and Turner Albernaz at Phelps Dunbar.
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Employment-Related Litigation Risks Facing Hospitality Cos.
A close look at recent hospitality industry employment claims highlights key issues companies should keep an eye out for, and insurance policy considerations for managing risk related to wage and hour, privacy, and human trafficking claims, say Jan Larson and Huiyi Chen at Jenner & Block.
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A Look At Florida's Aggressively Pro-Insurer Tort Reform
Florida's new tort reform law is an unwarranted gift to insurance companies that seeks to strip policyholders of key rights while doing little to curb excessive litigation, say Garrett Nemeroff and Hugh Lumpkin at Reed Smith.
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Navigating High Court's Options In Insurer Choice Of Law
Depending on how the U.S. Supreme Court approaches the question of when insurers may invoke choice-of-law clauses in maritime contracts to dodge state-specific liability, the Great Lakes v. Raiders Retreat Realty decision may mean significant changes not only for admiralty law disputes, but for the insurance industry more broadly, say Lara Cassidy and Adriana Perez at Hunton.