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Insurance
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January 09, 2025
IRS Gets First Dibs On $1M BP Oil Spill Payout, 11th Circ. Says
The IRS gets first priority to a $1 million settlement BP paid to a staffing company that racked up $23 million in federal tax debt and went bankrupt following the Deepwater Horizon oil spill, the Eleventh Circuit affirmed, denying an insurer's claim to the money.
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January 08, 2025
Captive Insurer Says Reinsurer Must Cover Legionnaires' Row
The captive insurer of a Michigan healthcare system asked a federal court Wednesday to find that its reinsurer couldn't sell off coverage responsibilities and owes payment for underlying suits alleging various patients contracted Legionnaires' disease.
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January 08, 2025
Insurer Can't Duck Covering Wash. Developer In Flooding Suit
An insurer can't yet escape providing coverage for a property developer accused of worsening flooding issues for several homeowners by clear-cutting trees without a proper drainage plan, a Washington federal court ruled, saying the policy could conceivably cover the injuries alleged in the underlying suit.
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January 08, 2025
Insurer To Fight Limits In Smucker's Salmonella Coverage Suit
An insurer seeking a bigger contribution from its insured J.M. Smucker Co. may appeal a court ruling that found there was just one occurrence within underlying litigation against the food company over 225 batches of salmonella-tainted Jif peanut butter, an Ohio federal judge said Wednesday.
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January 08, 2025
Arbitrator In Virus Coverage Case Wasn't Biased, Panel Says
A New York state appeals panel affirmed a trial court's decision refusing to disqualify a Pillsbury Winthrop Shaw Pittman LLP partner as an arbitrator in proceedings between a Zurich unit and the operator of Saks Fifth Avenue over coverage for COVID-19 losses.
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January 07, 2025
2nd Circ. Denies BDO Second Shot At AmTrust Appeal
The Second Circuit Tuesday denied BDO USA LLP's request for a rehearing of an appellate panel's decision not to overturn a suit brought by AmTrust Financial Services Inc. that alleged the auditor did a poor job reviewing the insurer's financial statements.
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January 07, 2025
Liskow & Lewis Opens NY Office And Expands Maritime Team
Liskow & Lewis APLC, a Gulf Coast-based firm focusing on matters in the energy sector, has opened an office in New York City and hired two new shareholders to lead the firm's maritime practice in New York.
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January 07, 2025
AT&T, Biz Groups Urge Justices To Back Cornell's ERISA Win
Top business and employee benefits industry lobbying groups along with telecommunications giant AT&T urged the U.S. Supreme Court to uphold Cornell University's victory over a federal benefits lawsuit alleging retirement plan mismanagement, in a flood of amicus briefs at the high court before arguments later this month.
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January 07, 2025
J&J, Talc Suppliers, Insurers Spar Over $505M Sale Stay
The former talc suppliers of Johnson & Johnson said Tuesday that staying part of a settlement and a connected bankruptcy sale could bog down their efforts to secure plan confirmations and exit Chapter 11, urging a Delaware bankruptcy judge to reject a motion to set aside $50 million from the $505 million deal while it is being appealed.
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January 07, 2025
Insurer Seeks Exit From Engineering Co.'s $1M Settlement
An engineering company's insurer told a Texas federal court it needn't cover the company's $1 million payment to settle a man's personal injury claims, arguing the company failed to give proper notice after the underlying court had already entered an over $7.2 million default judgment that was ultimately vacated.
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January 07, 2025
Fla. Crash Victims Can't Get Insurer Payout In Revised Suits
A Florida state appellate panel has blocked three vehicle crash victims' attempts to collect $16 million from an insurer, saying that the company wasn't properly joined as a party by the time settlements were reached and that final judgments were issued in two separate lawsuits over the same incident.
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January 07, 2025
Property Owner Says Insurer Owes $16.2M For Fire Damage
A Colorado property owner is seeking to recover $16.2 million from its insurer for property damage caused by the 2021 Marshall Fire, telling a federal court the carrier wrongly concluded the properties did not sustain direct physical damage in order to justify replacement costs.
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January 07, 2025
Title Insurer Says Atty Skipped Bills, Let Staff Steal IOLTA
Title insurer CATIC has fired back at a Connecticut attorney suing over his removal from the boards of two affiliated companies, accusing him of not paying bills, failing to prevent staffers from stealing money from his trust account, and breaching his duties to the company.
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January 07, 2025
5th Circ. Revives Transportation Co.'s Coverage Suit
The Fifth Circuit revived a transportation company's suit accusing its insurer of misrepresenting coverage and mishandling an underlying action, finding that a lower court abused its discretion when it denied the company an opportunity to amend its complaint without explanation.
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January 07, 2025
Davis Polk, Kirkland Guide Paychex's $4.1B Paycor Buy
Human capital management company Paychex Inc., advised by Davis Polk & Wardwell LLP, on Tuesday unveiled plans to buy fellow human capital management, payroll and talent acquisition software company Paycor, led by Kirkland & Ellis LLP, in a deal with an enterprise value of $4.1 billion.
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January 06, 2025
Zurich Seeks Coverage Support In MetLife Building Injury Row
Zurich American Insurance Co. asked a New York federal court Monday to force another insurer to tap into its $3 million policy to cover the defense of Manhattan's MetLife Building against a suit filed by a worker who was injured at its loading dock.
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January 06, 2025
Ga. Developer Says Insurer Shorted Roof Repair Coverage
The owner of a north Georgia commercial property has sued its insurer, accusing it of intentionally failing to complete a claims adjustment and only partially paying the cost to repair a roof that was damaged during a storm.
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January 06, 2025
5th Circ. Iffy On Humana, Blue Cross Allergy Meds Denials
A Fifth Circuit panel seemed poised Monday to side with an allergy services provider accusing insurance giants Blue Cross Blue Shield and Humana of colluding to deny claims and drive the company out of the market.
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January 06, 2025
Pa. Panel Permits Stacked UIM Benefits Within Same Policy
A woman severely injured in a motorcycle accident is entitled to underinsured motorist coverage under the same policy that directly covered the motorcycle, the Pennsylvania Superior Court ruled, finding that because she held a separate policy providing underinsured benefits, stacking was permitted under the former policy.
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January 06, 2025
Ohio Landlord Seeks $9M Insurance Payout For Hail Damage
The operator of a 324-unit apartment complex is seeking to recover over $9 million from its insurer for damages caused by a 2022 hail and windstorm, according to filings in Ohio federal court.
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January 06, 2025
Insurance Execs Seek Defense Costs For Self-Dealing Suit
Insurance company executives who were fired amid accusations they stole assets from their company to start a competing venture demanded coverage for the dispute from their new business's insurer in Georgia Federal Court.
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January 06, 2025
Property Owner Says Insurers Owe $4.2M For Burglary Losses
A property owner said its insurers must cover $4.2 million in property damage caused by a burglary, telling an Oregon federal court that the carriers relied on a number of policy exclusions to deny coverage but failed to properly investigate the claim.
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January 06, 2025
Insurance Losses From Baltimore Bridge Pinned At $1.5B
Insurers expect to face a total of $1.5 billion in losses from the Baltimore Bridge disaster last year, according to broker Gallagher Re.
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January 03, 2025
Aetna Says Takeda Inked Deal To Block Generics, Keep Profits
Takeda Pharmaceuticals struck an anticompetitive deal with Par Pharmaceutical to keep a cheaper, generic version of its anticonstipation drug Amitiza off the market after the drug's compound patent expired, Aetna claimed Friday in a Massachusetts lawsuit, with the insurer alleging it overpaid millions of dollars for the brand name drug.
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January 03, 2025
Del. Court Rules Against Insurers In Harman 'Bump-Up' Case
In a closely watched ruling on director and officer insurer denials of mergers and acquisitions cost "bump-up" payouts, a Delaware judge sided on Friday with Harman International Industries' claims that insurance providers unjustifiably denied coverage for a $28 million settlement of challenges to Harman's 2017 merger with Samsung Electronics America Inc.
Expert Analysis
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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.
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Opinion
Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Calif. Long-Tail Ruling Continues Policyholder-Friendly Trend
The California Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Cement & Gypsum, rejecting horizontal policy exhaustion, was the latest in a string of its decisions involving insurance coverage for continuous or progressive injury claims that favor policyholders, say Billie Mandelbaum and David Goodwin at Covington.
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Series
NY Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 saw less enforcement activity in the realm of New York financial services, but brought substantial regulatory and legislative developments, including state regulators' guidance on cybersecurity compliance and customer service processes for virtual currency entities, say James Vivenzio and Andrew Lucas at Perkins Coie.
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Series
Skiing And Surfing Make Me A Better Lawyer
The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.
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Unpacking The Circuit Split Over A Federal Atty Fee Rule
Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.
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4 Steps To Repair Defense Credibility In Opening Statements
Given the continued rise of record-breaking verdicts, defense counsel need to consider fresh approaches to counteract the factors coloring juror attitudes — starting with a formula for rebuilding credibility at the very beginning of opening statements, says Ken Broda-Bahm at Persuasion Strategies.
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Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares
In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.
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NJ Justices Clarify First-Party Indemnification Availability
In Boyle v. Huff, the New Jersey Supreme Court recently held that indemnification can be available in first-party claims, resolving an open question and setting up contracting parties for careful negotiations around indemnity clauses, says Todd Leon at Marshall Dennehey.
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Takeaways From Justices' Redemption Insurance Decision
The U.S. Supreme Court’s recent decision in Connelly v. U.S. examines how to determine the fair market value of shares in a closely held company for estate tax purposes, and clarifies how life insurance held by the company to enable redemption of a decedent’s shares affects that calculation, says Evelyn Haralampu at Burns & Levinson.