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Insurance
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April 03, 2025
Law Firm Says Insurer Shorted On Defense Of Blackmail Suit
A law firm accused by a Florida state judge of causing her emotional distress via blackmail is suing its insurer, alleging the insurer underpaid the firm's defense counsel by nearly $600,000 in connection with the settled underlying lawsuit she filed.
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April 03, 2025
7th Circ. Agrees Insurer Must Cover Chicago's $3.75M Atty Fees
The Seventh Circuit has affirmed a lower court's finding that StarStone Insurance must foot the bill for $3.75 million in attorney fees to the city of Chicago from a civil rights lawsuit that settled for nearly $19 million, rejecting the insurer's argument that its policy with the city only covers damages.
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April 02, 2025
Insurer Cites Exclusion To Avoid Covering Co.'s Silica Suits
An insurance company has sued in California federal court to avoid covering any legal fees or potential settlements a Georgia-based countertop manufacturer might face from the more than 100 lawsuits filed by workers who claim to have suffered lung scarring and cancer due to exposure to dust.
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April 02, 2025
Insurer Says $9M OpenText Merger Settlement Not Covered
An insurer said it is not obligated to contribute to a $9 million settlement in a shareholder class action stemming from Covisint's 2017 merger with software company OpenText, telling a Michigan federal court that the settlement does not constitute a covered loss.
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April 02, 2025
Potbelly Says Insurer Must Cover Wage Transparency Suit
Sandwich chain owner Potbelly Inc. told a Washington state court that its insurer wrongly refused to cover it in a proposed underlying class action alleging the business violated Washington's wage transparency law by failing to disclose pay and benefit information to job applicants.
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April 02, 2025
Shooting Victim Can't Get $1M Under Policy, Berkshire Says
A man shot during an armed robbery at a convenience store isn't owed the full $1 million limit toward an underlying $1.5 million consent judgment he reached against the property owner, a Berkshire Hathaway unit said Wednesday, arguing that the man doesn't qualify as an insured.
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April 02, 2025
Fla. High Court Told Condo's Irma Claim Redo Lacked Key Info
An insurance company told the Florida Supreme Court on Wednesday that a Miami condominium's reopened claim for damage caused by Hurricane Irma wasn't sufficient to trigger a supplemental claim, arguing that state law required additional information regarding the initial loss.
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April 02, 2025
No-Fault Tolling Not Retroactive, Mich. Justices Say
The Michigan Supreme Court ruled Tuesday that an element of no-fault reforms pausing the one-year rule for recovery of personal injury protection benefits until an insurer formally issues a denial is not retroactive, finding the Legislature didn't clearly add retroactive language and that applying the provision to preamendment claims would impose new obligations on insurers.
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April 02, 2025
Mo. Court Finds Ambiguity Could Permit Virus Coverage
A vacation rental company may be entitled to coverage for pandemic-related losses from one insurer, a Missouri intermediate appellate court held, finding that an exception conflicting with an exclusion created ambiguity in favor of the insured, while upholding no-coverage rulings pertaining to other insurers.
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April 02, 2025
Baltimore Diocese Abuse Claimants Sue Over Immunity Bid
Childhood sex abuse claimants are suing the bankrupt Archdiocese of Baltimore in a bid to stop the Catholic organization from using a charitable immunity defense to avoid paying claims that aren't covered by the debtor's insurance, urging a Maryland federal judge to declare that the defense isn't available in the bankruptcy case.
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April 02, 2025
Insurer Gets Education Co.'s $2.2M Theft Coverage Bid Tossed
A Maryland federal court tossed an education management company's suit seeking excess coverage for over $2.2 million in employee embezzlement losses, saying the company failed to show its loss occurred during the relevant policy period.
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April 01, 2025
5th Circ. Judge Questions IRS Denial Of Insurance Deductions
A Fifth Circuit judge pushed back Tuesday on the Internal Revenue Service's rejection of expense deductions for two physician-led micro-captive insurance companies, saying that the businesses seemed to serve a legitimate purpose while acknowledging that doctors are "notoriously inept" businessmen.
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April 01, 2025
CarePoint's Bankruptcy Plan Needs Changes, Judge Says
A Delaware bankruptcy judge determined on Tuesday that more work is needed on the Chapter 11 plan from New Jersey hospital operator CarePoint that would have handed control of the health system's medical facilities to one of its creditors, finding the debtor must address another creditor's claim that its collateral has diminished in value.
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April 01, 2025
Berkshire Unit Denied Reimbursement For Asbestos Coverage
Two excess insurers for a drywall company have no duty to reimburse another excess insurer for payments it made to settle two asbestos injury lawsuits, a Texas federal court ruled, finding those lawsuits didn't allege an occurrence within the two excess insurers' policy periods.
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April 01, 2025
Insurer Can't Escape Aerospace Co.'s $3.3M Claim Denial Suit
An insurer for an aerospace products manufacturer can't escape claims that it wrongfully denied coverage of an approximately $3.3 million loss from fund mismanagement after years of delay, an Oregon federal court ruled.
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April 01, 2025
Houston Oil Co. Says Insurers Trying To Cover Up Price-Fixing
A Houston oil company has urged a federal judge to keep alive its antitrust suit against a group of insurers, saying their "ever-shifting explanations" for increased collateral demands are an attempt to cover up a price-fixing scheme.
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April 01, 2025
Progressive's $43M Deal Over Car Valuations Nears Final OK
A certified class of more than 151,000 Progressive customers has asked a Georgia federal judge to grant final approval to a $43 million settlement resolving allegations the insurer's units systematically undervalued totaled cars by applying a "projected sold adjustment," and they have sought an attorney fee award of $14.3 million.
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April 01, 2025
Hartford Unit Freed From Ill. Agency's $4M Wire Fraud Suit
An Illinois agency that administers the estates of financially distressed insurers can't get coverage from a Hartford unit for a computer system breach that the agency said caused roughly $4 million in outstanding losses, a federal court ruled, finding its claims fall outside an "electronic mail initiated fraud" coverage provision.
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April 01, 2025
Chamber, Trade Groups Back Insurer's Class Cert. Review Bid
The U.S. Chamber of Commerce and major insurance industry groups urged the U.S. Supreme Court to undo a Ninth Circuit decision allowing a class action to proceed against State Farm over its use of "negotiation adjustments" to calculate payouts for totaled vehicles.
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April 01, 2025
Prudential Beats Life Insurance Applicant's GIPA Suit
A Prudential life insurance applicant cannot pursue genetic information privacy claims after being required to undergo a physical exam and detail her family's medical history, as the state law she cites does not apply to life insurance underwriting, an Illinois federal judge said on Monday.
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March 31, 2025
Insurer Off The Hook For Tribe's COVID Casino Shutdown
Lexington Insurance Co. does not owe a Washington tribe business-loss coverage after COVID-19 forced the shutdown of the tribe's casino, a Washington state appeals court said Monday, ruling that the virus did not cause direct physical loss or damage to tribal properties.
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March 31, 2025
Insurer Beats Energy Cos.' Settlement Coverage Suit, For Now
A Texas federal court tossed a lawsuit from a group of energy companies accusing Berkley National Insurance Co. of favoring the settlement of one underlying wrongful death lawsuit over another unrelated injury lawsuit, finding the companies' complaint fails to allege they've incurred damages exceeding their policy limits.
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March 31, 2025
Trucking Co. Says Insurers Owe Coverage For BIPA Suit
A trucking company's insurers owe coverage for underlying litigation brought by a former employee who said the company violated his biometric privacy rights by using a hand-scanning timekeeping system that stored his protected personal data, the company told an Illinois federal court.
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March 31, 2025
Insurer Can Limit Rates But Not Counsel In Utility Litigation
A Swiss Re unit can limit the rates it pays to defend utility company Aqua's successor entity in litigation over alleged lead contamination in a Chicago suburb's water supply, a Pennsylvania federal judge has ruled, adding that the insurer cannot make Aqua change its counsel.
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March 31, 2025
Insurer Denies Coverage For Crushing Death, Alleging Lies
A wood company's insurer said it owed nothing in connection with the crushing death of a recycling company worker who was killed by equipment rented from the wood seller, telling a California federal court that its insured misrepresented itself when claiming it didn't lease equipment on its coverage application.
Expert Analysis
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Opinion
IRS Should Revise Overbroad Microcaptive Regs
Rather than seeking to curtail use of congressionally sanctioned microcaptive insurance programs by imposing burdensome disclosure obligations, the Internal Revenue Service should revisit its recently finalized regulations and implement rules tailored to address areas of specific abuse, say attorneys at Zerbe Miller.
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Managing Anti-Corporate Juror Views Revealed By CEO Killing
After the shooting of UnitedHealthcare CEO Brian Thompson laid bare deep-seated anti-corporate sentiments among the public, companies in numerous industries will have to navigate the influence of related juror biases on litigation dynamics, say Jorge Monroy and Keith Pounds at IMS Legal Strategies.
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Opinion
California Climate Lawsuit Bill Is Constitutionally Flawed
A bill in the California Legislature that would let victims of climate-related disasters like the Los Angeles wildfires sue oil and gas producers for spreading misinformation about climate change is too vague, retroactive and focused on one industry to survive constitutional scrutiny, says Kyla Christoffersen Powell at the Civil Justice Association of California.
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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Drug Kickback Ruling Will Make FCA Liability Harder To Prove
The First Circuit's ruling in U.S. v. Regeneron Pharmaceuticals, requiring the government to prove but-for causation to establish False Claims Act liability based on violations of the Anti-Kickback Statute, raises the bar for FCA enforcement and deepens a circuit split that the U.S. Supreme Court may need to resolve, say attorneys at Baker Donelson.
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Notable Q4 Updates In Insurance Class Actions
In a continuation of trends in property and casualty insurance class actions, last quarter insurers struggled with defending the merits and class certification of sales tax and fee suits, and labor depreciation cases, but succeeded in dismissing privacy class actions at the pleading stages, says Mathew Drocton at BakerHostetler.
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Evidence Rule May Expand Use Of Out-Of-Court Statements
A proposed amendment to Federal Rule of Evidence 801(d)(1)(A) would broaden the definition of nonhearsay, reflects a more pragmatic approach to regulating the admissibility of out-of-court statements by declarant-witnesses, and could help level the playing field between prosecutors and criminal defendants, say attorneys at Hangley Aronchick.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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The Math Of Cross-Examination: Less Is More, More Is Less
When conducting cross-examination at trial, attorneys should remember that “less is more, and more is less” — limiting both the scope of questioning and the length of each query in order to control the witness’s testimony and keep the factfinders’ attention, says Thomas Innes at the Defender Association of Philadelphia.
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Appealing An Interlocutory Order On Insurer Duty To Defend
A recent First Circuit decision on a motion regarding an insurer's duty to defend underlying litigation highlights how policyholders may be able to pursue immediate appeals of interlocutory orders, especially in light of other circuit courts' stances on this issue, say attorneys at Anderson Kill.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Tools For Witness Control That Go Beyond Leading Questions
Though leading questions can be efficient and effective for constraining a witness’s testimony, this strategy isn’t appropriate for every trial and pretrial scenario, so techniques like headlining and looping can be deployed during direct examination, depositions and even witness interviews, says Allison Rocker at Baker McKenzie.