Specialty Lines
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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."
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February 13, 2024
Insurer Wants Security Cos. To Repay Assault Defense
An insurer said it does not owe coverage to two security service companies facing several lawsuits filed by grocery store customers who claim they were battered by security guards, telling a California federal court that the companies owe it reimbursement because their policies don't cover bodily injuries.
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February 13, 2024
OpenText Wants Out Of Class Action Coverage Suit
OpenText told a Michigan federal court it should be dismissed from an insurer's suit seeking to avoid coverage of a class action from former Covisint shareholders alleging an unfair merger, saying it's not involved in the underlying case and its only alleged connection is that it acquired outstanding Covisint stock.
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February 13, 2024
Life Insurer Failed To Secure Data From Hack, Class Says
A life insurance provider and its parent company failed to protect sensitive customer information from a data breach, a proposed class action told an Indiana federal court, saying the parent company was hacked via a SIM swapping scheme targeting a senior employee.
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February 12, 2024
Insurer Says No Coverage For Idaho Murderer And Family
A mentally ill suspected cannibal and his wealthy mining family do not have insurance coverage for a wrongful death suit brought on behalf of a murdered, mutilated groundskeeper and his family, the insurer told an Idaho federal court.
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February 12, 2024
Consulting Firm Says Ex-Partner Stole Captive Insurance Biz
A consulting firm that assists in establishing captive insurance companies told a Colorado federal court that its former business partner breached its contract by working behind the firm's back to snag its clients and sabotage its business relationships, depriving the firm of both business opportunities and potential commission.
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February 12, 2024
Panel Slams Life Insurer's 'Extreme' View Of Child Benefits
A California appeals court panel challenged a life insurer's "extreme" view that its policy was limited to biological children and excluded coverage for the murdered child of the policyholder's fiancée, reinstating several of the parent's claims that were dismissed by a lower court.
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February 12, 2024
Three-State Test Critical To Evaluating Carrier Climate Risk
An analysis finding that insurers' investment portfolios are at risk of losing billions of dollars under delayed climate-transition plans is an important step to fully understanding how well carriers' business activities are aligned with climate goals, experts say.
Expert Analysis
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Wis. High Court Ruling May Open Door To Coverage Exception
The Wisconsin Supreme Court’s recent decision in Dostal v. Strand finding that an insurer had to defend a civil action following the defendant's criminal conviction on the same facts nonetheless may suggest an exception to the complaint test for determining an insurance company's defense obligation, say David Hollander and Clementine Uwabera at Stafford Rosenbaum.
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Crypto Coverage After FTX Fall: Accountant And Atty Liability
The recent fall of cryptocurrency firm FTX highlights complexities regarding accounting and tax reporting for digital assets, and reveals lawyers’ potential liability exposure when providing services to crypto firms — as a result, insurers may face unintended vulnerabilities related to this nebulous landscape, say Anjali Das and Farzana Ahmed at Wilson Elser.
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Anticipating Tech Market Volatility With R&W Policies
Technology executives, investors and their advisers should understand how representations and warranties insurance works ahead of a potential rise in claims activity and as deal makers focus on maximizing existing deals' value amid economic uncertainty, says Eric Larson at Morris Manning.
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Crypto Coverage After FTX Fall: D&O Liability
The fallout surrounding the recent implosion of cryptocurrency firm FTX highlights potential crypto coverage exposure — including in the area of directors and officers liability — for insurance carriers in the evolving and largely misunderstood world of digital assets, says Anjali Das at Wilson Elser.
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Litigation, Compliance And Enforcement In The 'Crypto Winter'
In 2022, cryptocurrency valuations plummeted, litigation proliferated and the "crypto winter" led to several high-profile bankruptcies, resulting in novel factual and legal questions being raised in areas like general commercial litigation, intellectual property, securities, bankruptcy, cybersecurity and compliance, say attorneys at Arnold & Porter.
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The 7th Circ.'s Top 10 Civil Opinions Of 2022
Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2022, and explain how they may affect issues related to antitrust, the False Claims Act, federal jurisdiction and more.
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Cultivating Good Relationships With Insurance Regulators
Excerpt from Practical Guidance
Insurers can develop mutually beneficial working relationships with insurance regulators by following some simple tips for streamlining communication, knowing how and when to ask for help, and treating regulatory staff with professional courtesy, says Layna Rush at Baker Donelson.
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How Ohio Software Ruling Implicates Crypto Insurance Claims
The Ohio Supreme Court's recent decision in EMOI Services v. Owners Insurance, holding that software can never be physically damaged, has limited precedential value for property claims, but serious implications for cases involving loss or damage to intangible assets like cryptocurrency and non-fungible tokens, say Jane Warring and Shannon O’Malley at Zelle.
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6 Ways To Avoid Compounding Errors When Practicing Law
For lawyers and law firms, inevitable human error can lead to claims of malpractice or ethical violations, but the key is to avoid exacerbating mistakes by adding communication failures, conflicts of interest or insurance coverage losses, says Mark Hinderks at Stinson.
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More Stringent Calif. Claim Law Could Benefit Policyholders
Although a new California statute that imposes additional requirements for policyholder presuit demands — effective Jan. 1 — was ostensibly passed as a bad faith liability shield for insurers, used correctly it may provide a more specific road map for plaintiff recovery, says Shanti Eagle at Farella Braun.
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Sandbagging Issues To Watch In Deal Documents
Attorneys at Kramer Levin explore how transactional practitioners address sandbagging in acquisition agreements, the default rules that courts may apply when deal parties are silent on the issue, and how sandbagging comes up in the context of representation and warranty insurance policies and any related special indemnities in acquisition agreements.
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Ky. Ruling Shows Need For Consistent Insurer Claim Replies
The Kentucky Supreme Court's recent ruling in Ashland Hospital v. Darwin Select Insurance, allowing a hospital to continue seeking coverage for a medical malpractice claim, warns insurers against invoking a prior-notice exclusion to bar coverage after previously rejecting a notice of potential claim as insufficient, say Chet Kronenberg and Lindsay DiMaggio at Simpson Thacher.
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Check This List Twice: 4 Steps To Abate Coverage Concerns
This holiday season give your company the gift of following easy administrative steps to avoid the far-too-common clerical errors that could lead to forfeited insurance coverage, say Vivek Chopra and Mattison Kim at Perkins Coie.