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Insurance
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January 22, 2025
Toy Co. Not Covered In Unpaid Judgment Suit, Judge Says
A Berkshire Hathaway insurer has no duty to defend a toy company accused of using legal proceedings to evade payment of an $8.5 million default judgment for false advertising, a Minnesota federal court ruled, finding that abuse of process claims are not covered under the policy.
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January 22, 2025
Insurer Asks NC Court To Revive Civil Rights Coverage Fight
An insurer asked a North Carolina state appeals court to revive its case seeking to deny coverage to the state after stepbrothers who were wrongfully convicted of the rape and murder of an 11-year-old girl won an underlying civil rights suit against the state officers they blamed for their incarceration.
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January 22, 2025
Benzene Suits Against Retailers Not Covered, Insurer Says
An insurer doesn't have to cover claims that CVS, Walmart, Walgreens and others sold products linked to a carcinogen, benzene, because the customers making the underlying allegations sought only reimbursement for the products they bought, the carrier told a California state court.
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January 22, 2025
Insurance Group Of The Year: Cohen Ziffer
Cohen Ziffer Frenchman & McKenna LLP gained coverage for opioid litigation against Walmart Inc., convincing an Arkansas court that damages were sought in opioid cases because of bodily injuries, cementing the firm for the second year running among the 2024 Law360 Insurance Groups of the Year.
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January 22, 2025
Nationwide Unit Needn't Cover Self-Dealing Suit, Court Says
A Nationwide unit doesn't owe coverage for a federal bankruptcy suit accusing two restaurateurs of engaging in self-dealing, a California federal court ruled, pointing to a policy exclusion barring coverage for wrongful acts that were noticed under a prior policy.
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January 22, 2025
Captive Insurance Co. Head Seeks Tax-Shelter Fine Refund
A tax attorney who heads a business that creates captive insurance companies said the IRS wrongly accused him of promoting an abusive tax shelter, telling an Ohio federal court the agency owes him a refund of penalties he handed over.
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January 21, 2025
La. Judge Lifts Arbitration Order In $7M Ida Damage Case
A Louisiana federal judge lifted a stay and vacated an order to arbitrate a $7 million Hurricane Ida damage claim against domestic surplus insurers, ruling that a recent decision from Louisiana's top court represents an "'intervening change in the controlling law.'"
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January 21, 2025
4th Circ. Won't Undo Doctor's Conviction For Reusing Devices
A former North Carolina ear, nose and throat doctor staring down 25 years in prison for healthcare fraud lost an appeal Tuesday seeking to overturn her conviction, with the Fourth Circuit finding that the lower court did not commit any reversible error that would favor a shot at redemption.
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January 21, 2025
Lyft Driver Says Carjacking Suit Should've Settled Sooner
A Lyft driver accused his insurer of violating Washington's Insurance Fair Conduct Act over his bid for uninsured motorist benefits following a carjacking, saying the insurer forced him to go to arbitration and win an over $1.1 million award rather than accept his earlier $1 million policy limit demands.
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January 21, 2025
AI Auto Damage-Assessing Giant Settles Monopoly Claims
Tractable Inc. and CCC Intelligent Solutions have reached a deal to end their trade secrets and antitrust dispute, after Tractable accused CCC of leveraging its dominant share of the auto collision-assessment market to stifle consumer choice and increase prices.
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January 21, 2025
Conn. Cannabis Co.'s Income Loss Not Covered, Judge Says
A cannabis product manufacturer cannot get more than $1.3 million in business interruption coverage from a Berkshire Hathaway unit for a fire in one of its "flowering rooms," a Connecticut federal court ruled, finding it failed to establish a causal link between a suspension of operations and lost income.
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January 21, 2025
10th Circ. Skeptical Ruling Would Invite Bogus Claim Denials
A Tenth Circuit panel appeared skeptical Tuesday that a lower court had cleared the way for the insurance industry to rely on flawed expert reports to justify claims decisions, with one judge suggesting the ruling was a limited one.
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January 21, 2025
High Court Asked To Review Malpractice Insurance Claim Row
A California woman has asked the U.S. Supreme Court to review a First Circuit ruling that upheld a federal court's judgment despite it being "explicitly contrary" to Massachusetts law, telling the court that denying her bid for a certification by the state's high court punishes federal plaintiffs and encourages forum shopping.
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January 21, 2025
As Fire Victims Seek Legal Help, Experts Warn Of Red Flags
As lawyers from across the nation descend upon Southern California to sign up those affected by the devastating wildfires, fire victims should not rush to hire an attorney, lest they also become victims of fraud or other predatory practices, the state bar and ethics-savvy attorneys warn.
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January 21, 2025
Co. Seeks IRS Refund In $2.7M Captive Insurance Case
A Delaware federal court should refund tax penalties a company paid on a $2.7 bill from the IRS for activities related to captive insurance companies and promoting abusive tax shelters, the company argued Tuesday, saying the government provided no proof it did anything wrong.
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January 21, 2025
6th Circ. Won't Reinstate $18.3M Verdict Against TransUnion
The Sixth Circuit refused to reconsider a decision that vacated an $18.3 million jury award against TransUnion LLC, rejecting a request from a startup that claimed the credit reporting company kept hold of intellectual property related to the development of an insurance quote marketplace after their partnership dissolved.
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January 21, 2025
Insurance Group Of The Year: Wiley
Insurance lawyers at Wiley Rein LLP secured rulings that adopted a carrier's methodology for calculating business expenses under a cyber policy, and strengthened the distinction between civil and criminal defense costs under professional liability policies, helping the Washington, D.C., firm earn a spot among the 2024 Law360 Insurance Groups of the Year.
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January 17, 2025
Law360 Names Practice Groups Of The Year
Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2024, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.
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January 17, 2025
Law360 Names Firms Of The Year
Eight law firms have earned spots as Law360's Firms of the Year, with 54 Practice Group of the Year awards among them, steering some of the largest deals of 2024 and securing high-profile litigation wins, including at the U.S. Supreme Court.
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January 17, 2025
Insurers Needn't Cover Plastic-Maker For Worker Death Suit
Travelers and Zurich insurers don't owe indemnification to Ohio-based manufacturer Encore Plastics for a suit over a worker's death, a federal court ruled Friday, saying a "direct intent" exclusion applies to the underlying claims arising under an Ohio statute that authorizes employer liability for intentional torts.
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January 17, 2025
Fla. HOA Says Insurer Failed To Pay Or Appraise $9.5M Claim
A Sunshine State condo association told a Florida federal court Friday that its insurer failed to pay its $9.5 million claim for damages sustained as a result of Hurricane Ian, alleging the insurer didn't meet its policy's terms regarding assigning an appraiser.
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January 17, 2025
Firm Says Insurers Must Pay $2.6M Malpractice Suit Judgment
A Georgia personal injury firm said its professional malpractice insurers must cover a $2.6 million default judgment entered against the firm in a suit brought by a former client, telling a federal court that a Berkshire Hathaway unit's failure to act caused the adverse ruling.
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January 17, 2025
Insurer Tried To 'Embarrass' Cadwalader, NC Court Told
Cadwalader Wickersham & Taft LLP has accused a Lloyd's of London syndicate of attempting to "embarrass" the firm by publicly revealing the firm's data breach recoveries amid the insurer's bid to toss a coverage suit stemming from a 2022 hack.
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January 17, 2025
Property Owner Says Nationwide Lowballed On $3.8M Losses
A Georgia property owner accused its insurer, a Nationwide unit, of "grossly underestimating" damages from separate hail and water events, alleging it was offered a combined total of less than $8,000 for losses exceeding $3.8 million, in a case removed to Georgia federal court.
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January 17, 2025
5 Firms Build 180 Degree Capital, Mount Logan Merger
Investment management company 180 Degree Capital Inc. and alternative asset management and solutions business Mount Logan Capital Inc. on Friday announced plans to merge in an all-stock transaction built by five law firms with an estimated pro forma enterprise value of $139 million.
Expert Analysis
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Insurance Considerations For Cos. That May Face Strikes
The recent surge in major work stoppages in the U.S. highlights the growing importance of strike preparedness for businesses, which includes understanding strike insurance coverage options, say Chris D’Amour and Brooke Duncan at Adams and Reese.
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Tobacco Surcharge Suits Spotlight Wellness Reg Compliance
A mounting wave of tobacco-user surcharge litigation against employee benefit plans highlights compliance challenges associated with the Health Insurance Portability and Accountability Act wellness regulations, and reminds plan sponsors to ask existential questions about the utility of their wellness programs, say Finn Pressly and Lesley Wolf at Ballard Spahr.
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Challenges Of Insuring An NIL Collective
Sarah Abrams at Baleen Specialty examines the emergence of name, image and likeness collectives for student-athletes, the current litigation landscape that has created a favorable environment for these organizations, and considerations for director and officer insurers looking to underwrite NIL collectives.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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An Update On Legal Issues In The Drone Market
Marialuisa Gallozzi and Alex Slawson at Covington examine recent developments in the legal issues surrounding the growing drone market, including possible First Amendment protections, Fourth Amendment surveillance, and litigation involving criminal and civil penalties, evidentiary pursuits, and insurance.
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Key Insurance Implications Of Hawaii's Historic GHG Ruling
In Aloha Petroleum v. National Union Fire Insurance, the Hawaii Supreme Court became the first state court to classify greenhouse gasses as pollutants barred from insurance coverage, a ruling likely to be afforded great weight by courts across the country, say Scott Seaman and Gar Lauerman at Hinshaw & Culbertson.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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Opinion
To Shrink Jury Awards, Address Preventable Medical Errors
While some health industry leaders complain about large malpractice awards — like the recent $45 million verdict in Hernandez v. Temple University Hospital — these payouts are only a symptom of the underlying problem: an epidemic of preventable medical errors, says Eric Weitz at The Weitz Firm.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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Defining All-Risk: Despite $30M Loss, Loose Bolt Not 'Damage'
A Massachusetts federal court’s recent ruling in AMAG Pharmaceuticals v. American Guarantee and Liability Insurance Co., denying coverage for $30 million in damages claimed when a loose bolt caused an air leak, highlights an ongoing debate over the definition of “direct physical loss or damage,” say Josh Tumen and Paul Ferland at Cozen O'Connor.