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Insurance
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September 22, 2023
Excess Insurer Balks At $22.5M Ask In Kroger Shooting Row
An insurer for The Kroger Co. urged a Georgia state court to reject another Kroger insurer's bid to recoup $22.5 million it paid toward a $50 million settlement over a shooting in 2015, following a jury's $61.4 million verdict against the grocery giant.
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September 22, 2023
NC Suit Says Underwriter Helped Insurer Cut Out Partner
USI Insurance Services LLC and a subsidiary are suing an ex-employee and a former insurance-carrier partner after the underwriter allegedly jumped ship to help the insurance carrier cut out its need for his former employer, according to a lawsuit filed in North Carolina state court.
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September 22, 2023
Meta Must Face Insurance Ad Bias Suit, Calif. Panel Says
A California appeals court has revived a proposed class action alleging Meta Platforms Inc. allowed Facebook advertisers to illegally discriminate against women and older users by restricting access to life and auto insurance ads, finding that the allegations are sufficient and the Communications Decency Act doesn't shield Meta from liability.
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September 22, 2023
Looming NFIP Lapse Threatens Coverage, Housing Market
As federal lawmakers lurch toward next week's government funding deadline, insurance experts say a long shutdown could throw the U.S. housing market into disarray, and critically restrict the National Flood Insurance Program's ability to provide new coverage.
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September 22, 2023
Insurers Beat Sports Stats Co.'s Bid For Covid Loss Coverage
An Illinois state appellate panel ruled Friday that Chicago-based sports data provider Stats LLC was correctly denied coverage from Continental Insurance Co. and National Fire Insurance Co. of Hartford for losses and extra charges it says it incurred as a result of the COVID-19 pandemic.
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September 22, 2023
Judge Delivers Clarity In Ambac RMBS Suit Against US Bank
A New York federal judge is allowing Ambac to press forward with litigation over losses incurred when several residential mortgage-backed securities trusts faltered during the financial crisis, in a ruling this week that weighed a key element of the contract dispute over who should bear the financial burden of some $340 million in damages.
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September 22, 2023
Marsh McLennan Asks 2nd Circ. To Revisit Data Breach Ruling
Marsh McLennan urged the Second Circuit to review its decision to revive a former employee's lawsuit seeking relief for what she called the professional services firm's failure to protect her personal information in a data breach.
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September 22, 2023
Boston Univ. Pushed Out Worker For 'Long COVID,' Suit Says
Boston University failed to provide reasonable accommodations that would allow a maintenance worker with "long COVID" symptoms to return to work, instead telling him to apply for long-term disability benefits which were subsequently denied, according to a suit filed in Massachusetts state court.
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September 22, 2023
NJ Gov. Calls For Menendez To Resign Over 'Disturbing' Charges
In the wake of an indictment alleging that Sen. Bob Menendez of New Jersey and his wife have had a corrupt relationship with three New Jersey businessmen, Gov. Phil Murphy and other prominent Democrats called on Friday for his resignation.
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September 22, 2023
Genworth Can Seek Coverage For $335M Premium Hike Suits
A Delaware judge said a long-term care insurance provider that expected to spend at least $335 million on underlying litigation and settlement costs wasn't barred from coverage by its professional liability carriers in suits alleging it hiked premiums on clients without notification.
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September 22, 2023
No COVID Coverage For Entertainment Co., Calif. Panel Says
A California state appellate panel tossed a sports and entertainment management company's bid to revive its COVID-19 coverage suit against its insurers, rejecting the company's argument that its policy covers not only physical loss or damage to property but also an "event" that restricts venue access.
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September 22, 2023
Doc's Plea In NBA Fraud Case Would Leave 2 To Stand Trial
A Seattle physician indicated to a Manhattan federal judge Friday that he will plead guilty in the $5 million NBA benefits scam, a move that would leave just two out of 24 named defendants set to go to trial in November.
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September 22, 2023
Travelers Wins Fight Over Stimulus Check Scheme Coverage
Travelers prevailed in a coverage dispute over a distribution company's losses arising from what the company alleged were stolen and fraudulently signed stimulus checks cashed at the company's locations, with a Texas federal judge accepting the recommendation of a magistrate judge to toss the suit.
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September 22, 2023
Insurer Settles Negligence Suit Against Plumbing Contractor
An insurer reached a settlement in its negligence lawsuit against a plumbing contractor, resolving its bid to recover more than $700,000 paid to an insured over a water leak following the contractor's work.
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September 22, 2023
UK Litigation Roundup: Here's What You Missed In London
The past week in London has seen the liquidators of a defunct gold dealership sue NatWest after it failed to detect a massive money laundering scheme, a Ukrainian airline and an aircraft lessor launch a claim against insurers, and the University of Sheffield sue AstraZeneca after a long-running deal to develop a cancer treatment. Here, Law360 looks at these and other new claims in the U.K.
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September 22, 2023
Canceled B-Day Bash At Sting's Italy Estate Brings $2.8M Suit
A Tokio Marine unit must cover the at least $2.8 million worth of losses incurred after a severe thunderstorm cut short a woman's three-day 80th birthday event at the musician Sting's private residence in Italy, her investment company told a Pennsylvania federal court Friday.
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September 22, 2023
NJ Sen. Menendez Took Bribes For Egyptian Aid, Feds Charge
Manhattan federal prosecutors unsealed an indictment Friday charging Sen. Bob Menendez, D-N.J., with steering billions of dollars worth of military aid to Egypt and attempting to interfere in criminal prosecutions in exchange for bribes.
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September 21, 2023
Health Care Cos. Say Insurer Owes $70M For Harvey Damages
Owners and operators of Texas health care facilities damaged by Hurricane Harvey claim Affiliated FM Insurance Co. owes them more than $70 million after dragging its feet on the work that needed to be done and prematurely shutting off claims, according to a court filing on Wednesday.
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September 21, 2023
Travelers Settles With Unauthorized Swag Seller
It wasn't the first time Travelers asked an unauthorized swag vendor using its famous logo not to stand under its red umbrella, but the legal storm passed, the insurer told a Connecticut federal court, announcing it had settled its trademark suit against the company.
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September 21, 2023
Atty Advice Relevant In Securities Fraud Cases: Colo. Panel
A lawyer's advice to a defendant in a securities fraud prosecution about the legality of business conduct is relevant to whether such a defendant had the necessary state of mind to back up a conviction, a Colorado appellate panel ruled Thursday, reversing or vacating all 28 of a businessman's fraud convictions.
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September 21, 2023
Travelers Says Other Carrier Must Cover Building Injury Row
A carpenter's insurer must defend and indemnify a New York office tower owner, a general contractor and tower tenant Skadden in an underlying suit brought by a worker who was injured during a construction project, according to a federal lawsuit from a Travelers unit insuring the contractor.
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September 21, 2023
Colo. Panel Says Contracts Can Set Accrual For Defect Claims
A Colorado Court of Appeals panel has ruled that parties to a contract can agree to a longer accrual period for construction defect claims than what is provided under state law, according to a published opinion Thursday that found such agreements do not violate public policy.
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September 21, 2023
Hartford Unit Scores 11th Circ. Win In Opioid Coverage Row
The Eleventh Circuit on Thursday upheld a Hartford unit's early win in an opioid drugmaker's coverage dispute, agreeing with an Alabama federal judge that the carrier was not provided with timely notice.
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September 21, 2023
Utility Can't Recover $3M In Defense Costs, AIG Unit Says
An AIG unit asked a Connecticut federal court to toss the Connecticut Municipal Electric Energy Cooperative's bid to recoup $3 million in legal expenses, arguing that the cooperative is not considered an "individual insured" under the portion of the policy it attempted to invoke.
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September 21, 2023
Buffalo Diocese Creditors Seek Insurance Co. Records
The unsecured creditors in the Roman Catholic Diocese of Buffalo's Chapter 11 case asked a New York bankruptcy judge Thursday for permission to subpoena insurance companies for decades-old policy information the diocese says it can't find itself.
Expert Analysis
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Insurance Cos. Are Stretching Construction Standard Limits
In the construction sector, the importance of closely vetting downstream parties' insurance policies has never been more critical — owners and general contractors need to be on the lookout for ever broader carrier-specific expansions of standard insurance provisions that are perilous for risk transfer, says Eric Clarkson at Saxe Doernberger.
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7 Ways Telco Operators Can Approach Lead Cable Claims
A recent spotlight on the telecommunication industry shows that companies in the field have known for decades that lead-wrapped cables proliferate in their vast networks, which is likely to provoke prolonged and costly legal battles — but seven best practices can efficiently resolve claims and minimize damage, say consultants at AlixPartners.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Okla. Workers' Comp Case Could Mean Huge Shift In Claims
An Oklahoma appeals court's recent opinion in Prewitt v. Quiktrip Corp. may expand the scope of continuing medical maintenance orders in workers' compensation cases to unprecedented levels — with potentially major consequences for employers and insurers, says Steven Hanna at Gilson Daub.
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Auto Insurers Should Reassess Calif. Diminished Value Claims
Many California auto insurers currently pay third-party claims for diminished value damages after a vehicle has been in an accident; however, federal decisions interpreting California law suggest that insurers may not have to pay some of these claims, says Charles Danaher at Sheppard Mullin.
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How To Protect Atty-Client Privilege While Using Generative AI
When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
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How New Lawyers Can Leverage Feedback For Growth
Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.
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How Reps And Warranties Insurance Can Aid Sellers In M&A
Amid the current slowdown in the M&A climate, representation and warranty insurance offers sellers a number of advantages, including protection against fraud and possible leverage to insist on a no-seller-indemnity deal, say Alex Leibowitz and Eric Jesse at Lowenstein Sandler.
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Series
ESG Around The World: Australia
Clive Cachia and Cathy Ma at K&L Gates detail ESG-reporting policies in Australia and explain how the country is starting to introduce mandatory requirements as ESG performance is increasingly seen as a key investment and corporate differentiator in the fight for global capital.
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In Ga., Promptness Is Key To Setting Aside Default Judgments
The Georgia Court of Appeals' recent vacating of a lower court's decision to set aside a default judgment against Samsung Electronics America is a reminder of the processes and arguments provided by Georgia's statutes for challenging default judgments — including the importance of responding quickly, says Katy Robertson at Swift Currie.
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Twitter Legal Fees Suit Offers Crash Course In Billing Ethics
X Corp.'s suit alleging that Wachtell grossly inflated its fees in the final days of Elon Musk’s Twitter acquisition provides a case study in how firms should protect their reputations by hewing to ethical billing practices and the high standards for professional conduct that govern attorney-client relationships, says Lourdes Fuentes at Karta Legal.
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Ore. Warranty Ruling Complicates Insurance Classification
The Oregon Court of Appeals' recent TruNorth v. Department of Consumer and Business Services holding that a service contract — commonly referred to as an extended warranty — covering commercial property is subject to the state's consumer service contract laws raises regulatory questions for contract obligors, sellers and administrators, say attorneys at Locke Lord.
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ABA's Money-Laundering Resolution Is A Balancing Act
While the American Bar Association’s recently passed resolution recognizes a lawyer's duty to discontinue representation that could facilitate money laundering and other fraudulent activity, it preserves, at least for now, the delicate balance of judicial, state-based regulation of the legal profession and the sanctity of the attorney-client relationship, say attorneys at Ballard Spahr.
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1st Circ. Harvard Ruling Provides Primer On Policy Provisions
In its recent finding of no coverage for Harvard due to the school's failure to give Zurich American Insurance timely notice of its claim, the First Circuit provides a good analysis of the distinctions between occurrence and claims-made policies, including the rationale for differences in notice provisions, says Andrew Paliotta at Cozen O'Connor.
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A Festival Of Litigation Could Arise From 'Electric Zoo' Fiasco
Over Labor Day weekend, thousands of electronic dance music fans were displeased with the organization of the New York City-based Electric Zoo festival, which quickly elicited comparisons to the 2017 Fyre Festival — and three kinds of litigation could ensue from the debacle, say attorneys at Seiden Law.