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Insurance
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March 21, 2023
Insurer Can Recoup $1.1M Benefit From Medical Imaging Co.
A medical imaging company must pay back $1.1 million to its insurer that accused the company of wrongfully accepting the settlement money related to a malpractice suit, a New Jersey federal judge ruled in final judgment.
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March 21, 2023
Insurer Can't Nix Hurricane Suit Over Venue, Texas Court Told
A dispute about venue shouldn't allow a Texas municipal insurance risk pool to get out of a suit over whether it owes a city for a water tower destroyed by Hurricane Hanna, the city told the Texas Supreme Court.
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March 21, 2023
Harvard Admissions Case Outside Policy, Zurich Tells 1st Circ.
Zurich American Insurance Co. asked the First Circuit Tuesday to uphold a district court's ruling that it does not have to reimburse Harvard University for the legal fees it incurred litigating a suit over its admissions policies that is currently before the U.S. Supreme Court.
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March 21, 2023
NYC Property Manager Not Covered In Fee Suit, Judge Says
The insurer for a Manhattan property management company does not owe coverage for an underlying self-dealing lawsuit brought against the company by a group of LLCs, a New York federal judge ruled, finding the underlying allegations fall outside its professional liability policy's period.
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March 21, 2023
Allstate Says Lowe's Liable For Dehumidifier Fire Losses
Lowe's was negligent in selling a dehumidifier that started a fire causing $150,000 in damages in an insured house, Allstate told a Pennsylvania federal court Monday.
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March 21, 2023
Nix Of Last Claims Ends Hilton Builder's $7.5M Storm Suit
A Washington federal judge tossed all remaining claims against two insurers stemming from a contractor's claim for more than $7.5 million in storm-related damage to a Hilton Garden Inn that it was building, thus ending the case.
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March 21, 2023
Chubb Says Coverage Not Yet Triggered In Ecolab Injury Suits
A Chubb unit said its coverage is not yet available to Ecolab Inc. for dozens of suits that claim the company's cleaning products caused injuries, telling a Minnesota federal court that coverage is not triggered under the umbrella policies until all relevant underlying insurance is exhausted.
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March 20, 2023
NFL's Saints Say Exclusions Don't Prevent Ida Coverage
The New Orleans Saints said their insurers are relying on irrelevant exclusions to deny coverage for the NFL team's lost business income after Hurricane Ida forced it to relocate its 2021 home opener.
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March 20, 2023
DOJ Quietly Abandons UnitedHealth Merger Appeal
The U.S. Department of Justice on Monday gave up on getting the D.C. Circuit to revive its challenge to UnitedHealth Group Inc.'s $13.8 billion purchase of Change Healthcare Inc., summarily dropping the case after four months of docket silence and six months after a D.C. federal judge rejected the lawsuit.
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March 20, 2023
Insurer Relieved From Additional Claims Against Trust Admins
Two trust administrators can't get coverage from a Lloyd's of London syndicate for claims brought against them by a beneficiary, an Illinois federal judge ruled, finding the added claims are related to an underlying suit and are not covered by the administrators' policy.
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March 20, 2023
AIG Unit Needn't Cover Window Supplier's Replacement Costs
An AIG unit doesn't have to cover costs incurred by a subcontractor to replace windows at a condo tower that prematurely broke down due to ultraviolet radiation exposure, a California federal court ruled, saying claims by numerous homeowners don't involve covered property damage.
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March 20, 2023
Wyo. Motel 6 Says Insurer Schemed To Sell 'Worthless' Policy
The owner of a Wyoming Motel 6 told an Equality State federal court that its insurer schemed to sell a "worthless" policy it had no intention of paying claims under, leaving the company unable to make repairs to its property.
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March 20, 2023
Broker Gets Win In Buccaneers Settlement Coverage Suit
An Indiana federal judge sided with an insurance broker in a suit from Axis Insurance Co., finding that the broker did not need to indemnify the insurer for a voluntary settlement with the Tampa Bay Buccaneers over a player's claims that he contracted an infection at a team facility.
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March 20, 2023
Evanston Insurance Must Indemnify NJ Co. Over Elevator Fall
A New Jersey appeals court found Monday that Evanston Insurance must cover claims by a custodian who was injured after falling 20 feet from an elevator while vacuuming, ruling the incident isn't precluded from a policy that excludes bodily injury claims arising from operations, services or work done on elevators.
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March 20, 2023
What To Know About The Texas Storm MDL 2 Years Later
As the clock ran out last month for new claims over damage from Winter Storm Uri, litigators began taking stock of what issues remain up in the air in the multidistrict litigation created to handle the lawsuits.
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March 20, 2023
Insurers Must Defend Contractor In Sewage Exposure Suit
A pair of Hanover insurers must defend a contractor in an underlying suit over injuries that a man sustained as a result of exposure to raw sewage, a Washington federal court ruled, saying the anti-concurrent cause provisions in their policy exclusions are not enforceable under state law.
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March 20, 2023
5th Circ. Revives Oil Co.'s Hurricane Harvey Damage Suit
A Fifth Circuit panel unanimously tossed a district court ruling in favor of an insurer and gave a Texas oil company another chance to prove that damage to its property was from 2017's Hurricane Harvey.
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March 20, 2023
GWG Says It Will Have Ch. 11 Plan For Court In Days
Life-insurance-backed bond seller GWG Holdings Inc. told a Texas bankruptcy judge Monday it is days away from filing a liquidating plan after reaching a deal with bondholders on how to resolve its Chapter 11 case.
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March 20, 2023
Ga. Comfort Suites Drops Trashed-Room Suit Against Insurer
The owner of a Comfort Suites hotel in southeast Georgia is dismissing its suit alleging that a Palomar Holdings insurance unit refused to fully cover its losses after a man barricaded himself inside one of its rooms and caused significant damage.
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March 20, 2023
SEC Says Mass. Money Manager Hid Annuity Commissions
A Massachusetts investment adviser kept his clients in the dark about the lucrative up-front commissions he made on their insurance annuities, violating his fiduciary duty through a "pattern of deception" to hide the incentives, the U.S. Securities and Exchange Commission has said in a civil enforcement action.
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March 17, 2023
Unum Told To Pay Disability For Injured Mayer Brown Atty
A former Mayer Brown LLP associate who had to stop working because of severe back pain is entitled to $17,000 in monthly disability benefits and back pay from Unum Life Insurance Co. of America after an Illinois federal judge on Thursday wasn't convinced by the insurance company's claims he was exaggerating his pain to avoid work.
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March 17, 2023
Ga. Church Countersues Insurer Over Fire Coverage
A church in Georgia that suffered fire damage in 2019 has countersued its insurance company for failing to pay for the losses, asserting in Georgia federal court Friday that the insurance company showed "bad faith" under state law.
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March 17, 2023
Insurer Can Bring Suit To Avoid Covering Rape Claims
An insurer may bring a declaratory judgment action seeking to avoid covering a day care owner whose son raped a child, a Missouri federal judge ruled, finding the dispute is ripe even though no underlying suit has been filed against the owner.
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March 17, 2023
Fla. Nonprofits Say Chubb Won't Cover Debt From DOL Probe
Two Florida nonprofit job placement programs sued a pair of Chubb subsidiaries on Friday for allegedly failing to indemnify them in a U.S. Department of Labor investigation that found they owed the federal government $4.3 million because their former CEO falsified records.
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March 17, 2023
Dental Insurer Claims Duo Took Trade Secrets To Competitor
A dental health insurer is suing two former company officials, accusing them of stealing client lists and other proprietary information to help competitors outbid the company for contracts in Washington and Oregon.
Expert Analysis
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Trial Lawyers Rejoice: Justices May Clarify Issue Preservation
The U.S. Supreme Court's recent grant of certiorari in Dupree v. Younger should be a boon to trial and appellate lawyers as the decision will likely standardize a rule for appellate issue preservation, bringing much-needed clarity to an area critical to general litigation success, says Jeremy Christiansen at Gibson Dunn.
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Minimizing Landlord Exposure To NY's Gray Cannabis Market
As New York rolls out its legal adult-use cannabis regime, landlords renting to as-yet unlicensed cannabis establishments may face liability under two statutes — but a few commonsense steps can help protect them from this risk, say attorneys at Carter Ledyard.
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Evaluating The Legal Ethics Of A ChatGPT-Authored Motion
Aimee Furness and Sam Mallick at Haynes Boone asked ChatGPT to draft a motion to dismiss, and then scrutinized the resulting work product in light of attorneys' ethical and professional responsibility obligations.
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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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7 Tips To Increase Your Law Firm's DEI Efforts In 2023
Law firms looking to advance their diversity, equity and inclusion efforts should consider implementing new practices and initiatives this year, including some that require nominal additional effort or expense, say Janet Falk at Falk Communications and Gina Rubel at Furia Rubel.
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Series
Keys To A 9-0 High Court Win: Get Back To Home Base
When I argued for the petitioner in Morgan v. Sundance before the U.S. Supreme Court last year, I made the idea of consistency the cornerstone of my case and built a road map for my argument to ensure I could always return to that home-base theme, says Karla Gilbride at Public Justice.
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Policyholder Lessons From 1st Circ. Duty To Defend Ruling
In Lionbridge Technologies v. Valley Forge Insurance, the First Circuit recently held that the obligation to defend an insured is not limited to the specific causes of action expressly stated in a complaint, providing policyholders with persuasive arguments in support of the duty to defend, say Catherine Doyle and Caroline Meneau at Jenner & Block.
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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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Hertz Ruling Could Help Debtors Avoid Make-Whole Premiums
A Delaware bankruptcy court’s recent ruling in Hertz, disallowing claims for make-whole premiums and post-petition interest at the contract rate, could be relied upon by debtors to sidestep those provisions, and potentially provide higher recoveries for equity holders, say Theresa Foudy and Alexander Severance at MoFo.
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Atty-Client Privilege Arguments Give Justices A Moving Target
Recent oral arguments before the U.S. Supreme Court in a case regarding the scope of the attorney-client privilege appeared to raise more questions about multipurpose counsel communications than they answered, as the parties presented shifting iterations of a predictable, easily applied test for evaluating the communications' purpose, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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5 Gen X Characteristics That Can Boost Legal Leadership
As Generation X attorneys rise to fill top roles in law firms and corporations left by retiring baby boomers, they should embrace generational characteristics that will allow them to become better legal leaders, says Meredith Kahan at Whiteford Taylor.
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Predictions For The 2023 Drug Pricing Landscape
2022 was the year of legislative action around drug pricing, while 2023 is likely to serve up precedential judicial action — including active legal challenges with respect to the government's programs covering outpatient prescription drugs, accumulators and third-party funders, says Margaux Hall at Ropes & Gray.
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6 Questions For Boutique Firms Considering Mergers
To prepare for discussions with potential merger partners, boutique law firms should first consider the challenges they hope to address with a merger and the qualities they prioritize in possible partner firms, say Howard Cohl and Ron Nye at Major Lindsey.
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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.