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August 23, 2024
UK Litigation Roundup: Here's What You Missed In London
The past week in London has seen Google sue several Russian media outlets in response to challenges to the tech giant's response to international sanctions, easyGroup bring an intellectual property claim against delivery company Easycargo, and e-money business Nyavo challenge action by the Financial Conduct Authority.
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August 22, 2024
Construction Co. Says It's Owed Coverage For Sinkhole Claim
A Washington construction company has filed a suit seeking to force an insurer to cover potential damages in an underlying lawsuit alleging the company botched a sewer pipeline replacement project, causing a sinkhole to open up along a Seattle ship canal after the job ended.
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August 22, 2024
Ex-MiMedx Sales Rep Says Fraud Schemes Pushed Her Out
A former employee of controversial biotech firm MiMedx who was sued for joining a competitor earlier this year hit the company back with a counterclaim Tuesday charging that she was forced out for refusing to go along with the company's alleged flouting of U.S. Food and Drug Administration regulations and rampant overbilling schemes.
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August 22, 2024
State Farm Can't Slash Fraud Suit, Even On The Merits
An Illinois federal judge has stuck to her decision not to let State Farm significantly cut down a proposed class action targeting an allegedly unlawful totaled-vehicle valuation formula, even while acknowledging she should have considered the merits of State Farm's arguments.
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August 22, 2024
NY AG Tells Appeals Court To Uphold $465M Trump Judgment
Donald Trump has barely challenged the extensive proof of financial statement lies undergirding a $465 million civil fraud judgment against him and his co-defendants, New York's attorney general said in an appeals brief looking to preserve the bench verdict.
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August 22, 2024
Fisher Phillips Brings Smith Gambrell Atty To DC Gov't Team
Fisher Phillips' new D.C.-based agriculture employment partner has practiced several types of law throughout his career, and told Law360 Pulse Thursday that his employment law career started unexpectedly after a managing partner at one of his first firms called out sick before an interview.
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August 22, 2024
Ga. Mineral Co., Insurer Strike Deal In Talc Coverage Suit
Phoenix Insurance Co. reached a contingent settlement with a Georgia-based mineral products company in litigation seeking to force the insurer to defend the company against an underlying suit claiming it supplied asbestos-containing talc products.
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August 22, 2024
7th Circ. Says Hidden IP Fight Doomed Insurance Coverage Bid
The Seventh Circuit has agreed an insurer could rescind its policies covering a garbage services company because that company failed to disclose an already brewing trademark dispute, concluding the company's argument that it didn't need to disclose the feud was "not supported by the record or common sense."
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August 22, 2024
Insurer, Atty Drop Case Linked To Bogus Check Scheme
An insurance firm has agreed to drop its claim seeking a declaration from a Washington federal court that it is not on the hook to cover a Seattle-area solo practitioner over an alleged counterfeit check scheme, after the bank and attorney settled their underlying dispute.
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August 21, 2024
2nd Circ. Partly Revives Life Insurance Suit Against AXA
The Second Circuit on Wednesday affirmed the dismissal of an investment firm founder's claims alleging AXA Equitable Life Insurance Co. caused the founder to miss a payment that led to the termination of his life insurance policies, but revived his claim that AXA wrongly denied his request to reinstate the policies.
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August 21, 2024
Fla. Co. To Pay $5M To End CFPB's Illegal Foreclosure Claims
Florida-based mortgage servicer Fay Servicing agreed Wednesday to pay a total of $5 million and its founder and CEO Edward Fay faces potential pay restrictions to resolve the Consumer Financial Protection Bureau's claims the company violated a prior 2017 agreement and multiple federal laws that protect borrowers against illegal foreclosure practices.
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August 21, 2024
No Coverage For CVS In Additional Opioid Actions
A Delaware state court ruled that CVS cannot get coverage for over 200 opioid-related actions that remained at issue after the pharmacy chain and its insurers agreed that thousands of other opioid suits aren't covered, finding the remaining suits asserted claims for economic harm, not bodily injury or property damage.
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August 21, 2024
9th Circ. Upholds Toss Of Suit Over Car Insurer's Data Breach
The Ninth Circuit on Wednesday refused to revive a proposed class action accusing auto insurance provider Noblr Reciprocal Exchange of failing to safeguard driver's license numbers exposed in a 2021 data breach, finding that the plaintiffs had failed to credibly allege that their data had actually been stolen.
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August 21, 2024
NJ Man Fighting Lloyd's Arbitration Bid After False Arrest
A New Jersey man who received a $5 million settlement from the city of Trenton after being falsely arrested and imprisoned for 212 days has urged a federal court not to force him to arbitrate a subsequent dispute with Lloyd's of London underwriters over payment of the judgment.
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August 21, 2024
Insurers Escape Calif. Starbucks Drive-Thru Easement Row
A California appeals court affirmed a lower court decision, finding commercial property insurers didn't have to defend an owner who allegedly tricked one tenant into signing an easement agreement for a parking lot, neglecting to mention it would be used by a Starbucks drive-thru.
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August 21, 2024
Chancery Orders Genworth Suit Funding, Fee Terms Released
Attorneys for Genworth Life Insurance Co. long-term policyholders who sued the company in Delaware's Court of Chancery over the sale of valuable subsidiaries lost a battle on Wednesday to bar the disclosure of litigation funding and fee agreements.
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August 21, 2024
NC Biz Court Bulletin: Wrinkle In Textile Family's $17M Fight
The fate of a $17 million trust battled over by its trustees and Atrium Health, as well as attorney fees in a $1.1 million data breach settlement were cemented by the North Carolina Business Court in the first half of August. In case you missed those and others, here are the highlights.
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August 21, 2024
9th Circ. Doubts Idaho Trans Health Ban Doesn't Discriminate
The Ninth Circuit appeared reluctant Wednesday to give the state of Idaho a green light for a prohibition on gender dysphoria treatment for minors, with judges vocally skeptical of the state's argument that the policy didn't discriminate based on sex.
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August 21, 2024
Travelers Settles With Pa. Firm Over Stealing $1M From Client
A Pennsylvania federal judge dismissed an insurance coverage dispute Wednesday, in light of a settlement between Travelers Insurance and a closed Pennsylvania law firm whose principal attorney was disbarred after he pled guilty to stealing almost $1 million from clients.
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August 21, 2024
La. Plaintiffs Ask 5th Circ. To Revive BP Spill Malpractice Deal
Louisiana residents who sued their attorneys, alleging they botched damage claims tied to the 2010 BP Deepwater Horizon oil spill, have asked the Fifth Circuit to reconsider a panel's ruling that overturned enforcement of a global settlement.
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August 20, 2024
Paralympic Org. Says Insurer Can't Avoid Covering Abuse Suit
The U.S. Olympic & Paralympic Committee urged a Colorado federal court to toss an insurer's bid to avoid coverage for a Paralympic swimmer's sexual abuse suit, saying the insurer hasn't met the high legal bar to escape its duty to defend.
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August 20, 2024
At-Fault Driver Must Repay $4M Policy Limit, Insurer Says
An insurer is seeking reimbursement of a $4 million policy limit it contributed to a $10 million settlement in connection with separate, underlying personal injury lawsuits stemming from a car accident, telling a Georgia federal court the at-fault driver entered an agreement admitting liability for the accident.
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August 20, 2024
9th Circ. Trans Health Appeal Hints At Supreme Court Fight
The Ninth Circuit will hear arguments Wednesday in an appeal from the state of Idaho seeking to preserve its ban on gender dysphoria treatment for minors, in a case that involves questions about trans health access that the U.S. Supreme Court is set to consider this fall, attorneys say.
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August 20, 2024
Estates Say BNSF, Zurich Delayed Settling Asbestos Claims
BNSF Railway Co. and its Zurich insurer breached their claim handling duties owed to asbestos claimants, the estates of two claimants told a Montana federal court, saying the companies turned insurance protection into "an investment in accrued and ongoing human suffering."
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August 20, 2024
Colorado County Says Aetna Owes $1.1M In Rebates
Aetna Life Insurance Co. is withholding more than $1 million in pharmacy rebates from a Colorado county under an inapplicable early termination clause after local leaders switched to United Healthcare for health insurance services in 2023, according to a federal lawsuit.
Expert Analysis
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Opinion
After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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Bid Protest Spotlight: Standing, Prejudice, Conflicts
In this month's bid protest roundup, Caitlin Crujido at MoFo examines three recent decisions from the U.S. Government Accountability Office concerning whether a would-be protestor was an interested party with standing, whether an agency adequately investigated potential procurement violations and whether a proposed firewall sufficiently addressed an impaired objectivity organizational conflict of interest.
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Del. 3M Ruling Risks Upending Corporate Insurance Programs
A Delaware court's findings last week in the 3M earplug insurance litigation that a parent company's defense fee payments don't count toward a subsidiary's self-insured retention and that an insurer's duty to pay defense costs doesn't attach to multidistrict litigation merit closer scrutiny in light of the modern corporate form and the fundamental objectives of MDLs, say Julie Hammerman and Gary Thompson at Thompson HD.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers
The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.
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3 Policyholder Tips After Calif. Ruling Denying D&O Coverage
A California decision from June, Practice Fusion v. Freedom Specialty Insurance, denying a company's claim seeking reimbursement under a directors and officers insurance policy for its settlement with the Justice Department, highlights the importance of coordinating coverage for all operational risks and the danger of broad exclusionary policy language, says Geoffrey Fehling at Hunton.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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7th Circ Joins Trend Of No CGL Coverage For Structural Flaws
The Seventh Circuit, which recently held potential structural instability did not count as property damage under a construction company's commercial general liability policy, joins a growing consensus that faulty work does not implicate coverage without tangible and present damage to the project, say Sarah Abrams at Baleen Specialty, and Elan Kandel and James Talbert at Bailey Cavalieri.
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M&A In The AI Era: Key Deal Terms To Watch
As the artificial intelligence market matures, so will due diligence needs, as M&A deals aimed at consolidation and new synergies raise unique legal and regulatory challenges, including potential antitrust and national security reviews, say attorneys at Skadden.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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New La. Managing Agent Law May Portend Growing Scrutiny
Recent amendments to Louisiana’s managing general agent regulations impose expansive new obligations on such agents and their insurer partners, which may be a sign of heightened regulatory, commercial and rating agency scrutiny, say attorneys at McDermott.