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Insurance
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January 24, 2025
Law Firm Sues AIG Unit Over Sports Fraud Coverage
A Florida-based law firm and its principal attorney have accused an AIG unit of misleading them into defending a sports memorabilia collector and his company in a Securities and Exchange Commission civil action and two related criminal cases, saying the unit had already agreed in writing to their billing rates.
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January 24, 2025
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen Axa Insurance and Admiral face a claim from a former lawyer recently exposed for personal injury fraud, the owner of Reading Football Club sue a prospective buyer and mobile network Lycamobile tackle action by Spanish network Yogio. Here, Law360 looks at these and other new claims in the U.K.
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January 23, 2025
Marlboro Smoker Was Target Of Deception, Jury Hears
Philip Morris targeted a Massachusetts preteen as a "replacement" customer for others who were dying of lung disease, a Springfield jury heard Thursday, though the company's lawyer said the woman had free will and knew enough to stop smoking.
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January 23, 2025
McKinsey Not Covered For Over 260 Opioid Suits, Chubb Says
A group of Chubb insurers said they have no duty to defend or indemnify McKinsey & Co. in more than 260 suits accusing the management consulting firm of contributing to the opioid epidemic, telling a Delaware state court that the underlying suits do not seek damage "because of" bodily injury.
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January 23, 2025
Fla. Insurer Tries To Toss Suit Blaming It For Black Mold Death
A Sunshine State insurer accused of wrongfully causing the death of a woman who died from black mold contamination after it didn't send a promised team to her home to fix hurricane damage has urged a Florida judge to dismiss the suit, calling it a bad-faith case in disguise trying to get around an already pending contract dispute.
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January 23, 2025
Home Health Agency Operator Gets 12 Years For $100M Fraud
The former operator of a Massachusetts home healthcare agency convicted of fraud last summer has been sentenced to 12 years in prison and ordered to pay nearly $100 million in restitution to the state's Medicaid program.
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January 23, 2025
Insurance Group Of The Year: O'Melveny
O'Melveny & Myers LLP attorneys scored important wins for insurers in pandemic business interruption litigation before the California Supreme Court and in a Ninth Circuit case on defense of numerous underlying opioid lawsuits, landing the firm a spot among the 2024 Law360 Insurance Groups of the Year.
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January 23, 2025
Freddie Mac Puts End To $32M SEC Probe Coverage Dispute
Freddie Mac told a D.C. federal court that it has reached a settlement with underwriters at Lloyd's of London, bringing an end to the government-backed mortgage lender's $32 million coverage suit stemming from civil actions and federal probes related to its collapse during the 2008 global financial crisis.
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January 22, 2025
'Unicorn Prosecution' Could Upend Legal Practice, Court Told
Brown & Connery LLP partner William Tambussi told a New Jersey state judge Wednesday that the entire practice of law in the Garden State rests on his impending decision on the charges against him in the state's sweeping racketeering case targeting power broker George E. Norcross III, arguing that a lawyer has never been prosecuted for routine legal work.
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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.
Expert Analysis
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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.
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7th Circ. Exclusion Ruling Will Narrow BIPA Coverage
The Seventh Circuit's recent decision in Thermoflex Waukegan v. Mitsui Sumitomo Insurance, holding that the access or disclosure exclusion applies to insurance claims brought under the Illinois Biometric Information Privacy Act, departs from the majority rule and opens the door to insurers more firmly denying coverage under general liability policies, say attorneys at Perkins Coie.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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2 Options For Sackler Family After High Court Purdue Ruling
After the U.S. Supreme Court recently blocked Purdue Pharma's plan to shield the family that owns the company from bankruptcy lawsuits, the Sacklers face the choice to either continue litigation, or return to the bargaining table for a settlement that doesn't eliminate creditor claims, says Gregory Germain at Syracuse University.
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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What Fla. Ruling Means For Insurer Managed Repair Programs
A recent Florida state court ruling in Fraga v. Citizens Property Insurance, holding that the insurer could not seek to add additional terms in its managed repair program consent form, should promote clear written contract terms that clarify the relationship between insurers, policyholders and contractors, says Chip Merlin at Merlin Law Group.
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Revisiting Scalia's 'What's It To You?' After Kaiser Ruling
While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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Roundup
After Chevron
Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 37 different rulemaking and litigation areas.