Specialty Lines

  • August 12, 2022

    'Related Claims' Issue Central To Zoom's $90M Coverage Row

    Zoom's battle with two groups of excess insurers over $90 million in legal costs in actions over allegations of data security problems may hinge on whether an initial government probe and follow-on civil lawsuits constitute one or multiple claims — a recurring issue in errors and omissions insurance disputes.

  • August 12, 2022

    2nd Circ. Upholds $25M Award To Exxon, Axes Some Interest

    A district court correctly sent a pollution coverage dispute between ExxonMobil and its insurer to arbitration but wrongly awarded the energy company pre-arbitral award interest beyond the policy's $25 million liability limits, a Second Circuit panel said in a published opinion Friday.

  • August 12, 2022

    Harvard Insurer Rips Depo Bid Tied To Affirmative Action Case

    Zurich American Insurance Co. on Friday asked a Massachusetts federal judge to reject a deposition bid by Harvard University in a dispute over the coverage of excess costs incurred defending an affirmative action lawsuit that is now at the U.S. Supreme Court, calling it a fishing expedition.

  • August 11, 2022

    Church Mutual Needn't Cover Care Center's BIPA Suit Defense

    Church Mutual has no duty to defend an assisted care facility from a proposed class action filed by an employee accusing it of impermissibly collecting workers' fingerprints to track their hours, an Illinois federal judge said Thursday, finding that the policies in question bar coverage for wrongful employment practices. 

  • August 11, 2022

    Vizio Plans To Appeal Axed $17M Privacy Coverage Suit

    Vizio notified a California federal judge that it will appeal his decision to toss a lawsuit that sought to force the TV maker's excess insurer to contribute coverage to a $17 million settlement in a multidistrict litigation that accused the company of selling data without consumers' consent.

  • August 11, 2022

    Insurer Says Sparta Misquoted Contract, Requests Dismissal

    Pennsylvania General Insurance Co. wants a Massachusetts federal judge to reconsider his decision on a motion to dismiss accusations from Sparta Insurance Co. that Pennsylvania General is not upholding a stock-purchase agreement, claiming Sparta misquoted a key contract.

  • August 11, 2022

    Insurer Filed Pollution Coverage Suit Too Soon, Oil Co. Says

    An oil disposal company asked an Alabama federal judge to toss its insurer's coverage suit over two underlying pollution cases, asserting that the insurer's attempt to dodge coverage is "plainly premature" because no judgments have been filed in either of the state court suits.

  • August 11, 2022

    Claims Handler, Insurer Drop Reimbursement Fight

    A claims handler and its insurer have asked a California federal court to dismiss their dispute over the reimbursement of costs from an underlying suit over a mismanaged car claim, following a Ninth Circuit decision that forced the handler to pay the insurer back.

  • August 11, 2022

    Fla. Yacht Club's Wire Fraud Coverage Suit Tossed

    A Travelers unit doesn't have to cover the majority of a wire fraud a Florida yacht club said it suffered, a Florida federal judge ruled, finding the club only partially alleged that parties committed the fraud by purporting to be the club itself, a requirement under its crime policy.

  • August 10, 2022

    Law Firm's Counterclaims Fail In Coverage Fight, Insurer Says

    The insurer for a Utah law firm that was sued for legal malpractice told a Utah federal court that the firm's counterclaims in the dispute over coverage should be tossed because it incorrectly alleged that the insurer refused to defend it.

  • August 10, 2022

    Insurer Says Knowledge Of Self-Dealing Claim Bars Coverage

    A New York City property management company knew it might be sued for self-dealing prior to an insurance policy's effective date and therefore cannot get coverage under that policy, the issuing insurer told a New York federal court.

  • August 10, 2022

    Medical Co. Denies Lying To Insurer In $1.1M Suit

    A medical imaging company had no reason to believe it would be sued for an employee's involvement in a surgery death, it said, slamming an insurer's claim that it lied on insurance applications about the possibility of a claim.

  • August 10, 2022

    Co. Says Ga. Law Applies In Employee Theft Coverage Row

    A Washington, D.C.-based real estate company urged a Georgia federal court to find that Georgia law applies to its dispute with a Travelers unit over its claim of an underlying employee theft scheme, noting that D.C. lacks any insurer-specific bad faith law on the books.

  • August 09, 2022

    Insurer Seeks Redo Of Ruling Axing Bid To Duck Coverage Suit

    An insurer for a hospital management company asked a California federal court to review its decision that it can't escape a coverage dispute stemming from a whistleblower suit alleging false Medicare claims, saying the court failed to properly consider whether certain exclusions apply.

  • August 09, 2022

    Oil Driller's Insurer Fights Coverage, Claiming Voided Policy

    An oil drilling company isn't owed further coverage for costs it incurred in controlling and repairing a blown-out well, its insurer told a Texas federal court, arguing the company voided its policy by transferring its interests in the well.

  • August 09, 2022

    Excess Insurer Can't Dodge Data Breach Coverage, Court Told

    An excess insurer for a Blue Cross Blue Shield licensee must reimburse Atlantic Specialty Insurance Co. for payments it made to multimillion-dollar settlements over a 2014 data breach, the insurer told a Washington federal court, saying the excess insurer can no longer argue that it has no duty to contribute.

  • August 09, 2022

    Insurer Can't Escape Beaumont Corruption Row, Judge Says

    A California federal judge refused to let National Union Fire Insurance Co. of Pittsburgh, Pa. off the hook for a city's losses in an embezzlement scandal by local officials, finding that the insurer hadn't shown the city was seeking coverage for the officials' self-dealing.

  • August 08, 2022

    Insurance Broker Accused Of Lying About Coverage

    A Colorado insurance brokerage company is accused of negligence and purposely misleading a recycling business about whether the pollution liability insurance policy it sold the business covered the removal of solid waste at its facility.

  • August 08, 2022

    Insurers, Medical Co. Settle Trade Secrets Coverage Suit

    Two insurers and a policyholder, a therapy and psychiatry practice, ended their dispute over coverage for an underlying suit accusing the practice of stealing scores of trade secrets and confidential patient information from a rival company, with the sides telling an Illinois federal court that they've agreed to settle.

  • August 08, 2022

    Developer Asks 1st Circ. To Reassess Ruling For Chicago Title

    Rhode Island-based developer IDC Properties Inc. has asked the First Circuit to reconsider its July decision favoring Chicago Title Insurance Co., arguing it should have won coverage for the loss of development rights in a condo complex based on the ambiguous language of a master deed.

  • August 08, 2022

    Generator Co.'s Coverage Suit Deemed Premature

    Kinsale Insurance Co. and Mercer Insurance Co. have no coverage obligations to a generator servicer in an underlying repair dispute, a California federal court ruled Monday, finding that because the company hasn't actually been sued yet, its coverage action against its insurers was premature.

  • August 08, 2022

    Insurers Must Face Smartsheet's Securities Coverage Bid

    Insurers for Smartsheet cannot duck its bid for coverage of underlying litigation alleging investors weren't told about its initial public offering when they sold their shares at a reduced price by claiming the litigation was related to an earlier claim, a Washington federal court said Monday.

  • August 08, 2022

    Insurer, Medical Co. Drop Malpractice Coverage Dispute

    An outpatient provider of chronic pain relief and its insurance company told a Missouri federal court they have agreed to drop an insurance coverage dispute stemming from a patient's malpractice suit.

  • August 08, 2022

    Worker Using Threats To Force Medical Payouts, Insurer Says

    A man who lost his leg following a workplace accident is unfairly threatening to enforce a judgment lien he won against his former employer to force the company and its insurer to continue paying his medical bills, the insurer told a Missouri federal court.

  • August 08, 2022

    9th Circ. Must Affirm Agency Poaching Suit Win, Insurer Says

    Markel American Insurance Co. told the Ninth Circuit it should uphold a California district court's ruling that a broadly worded professional services exclusion precludes coverage for an underlying talent poaching dispute, but should reverse its holding that a California statute barring coverage for willful acts did not apply.

Expert Analysis

  • Anti-Kickback Circuit Split Holds Implications For Defendants

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    The Eighth Circuit's recent decision in U.S. v. D.S. Medical represents a significant step toward holding plaintiffs to more exacting burdens of proof in Anti-Kickback Statute False Claims Act suits, and the outcome of the resulting circuit split could decrease estimated damages for defendants, say attorneys at Gibson Dunn.

  • 8th Circ. Ruling Raises Bar For Anti-Kickback FCA Claims

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    The Eighth Circuit's decision in U.S. v. D.S. Medical makes it more difficult for plaintiffs to claim that a violation of the Anti-Kickback Statute supports False Claims Act liability, but an emerging circuit split and uncertainty regarding evidentiary requirements must be considered when developing a defense strategy, say attorneys at Winston & Strawn.

  • Insurance Tips For Cos. Offering Reproductive Health Benefits

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    Post-Dobbs state laws allowing legal action against anyone who facilitates an abortion could lead to claims against employers providing reproductive health benefits, so companies must ensure their insurance policies afford sufficient protection for any novel claims, say Heather Habes and Gretchen Hoff Varner at Covington.

  • Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption

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    Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.

  • Understanding Legal Considerations In Cannabis M&A Deals

    Excerpt from Practical Guidance
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    Zachary Turke and Peter Park at Sheppard Mullin discuss the unique set of challenges for both buyers and sellers in cannabis industry merger and acquisition deals, given the rapidly changing economic conditions, the ever-changing regulatory landscape and new market entrants.

  • Cybersecurity Basics Are Key to Combating Ransomware

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    Recent prohibitions on ransom payments and other public policy measures vastly underestimate the breadth and complexity of the ransomware problem and will only work if organizations adopt basic cyber defenses, says Kate Margolis at Bradley.

  • How M&A Insurers Can Increase Smaller Deal Servicing

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    As the number of M&A deals in the $50 million to $200 million range continues to grow, lawyers, insurance brokers and clients must address the trend away from covering these smaller transactions by working together to make it easier for carriers to consider submissions and to insure these types of risks, says Hilary Weiss at Liberty Global.

  • Lessons From Calif. Liability Claim Recoupment Ruling

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    A recent California federal court decision in Evanston Insurance v. Winstar Properties illustrates the perils of insurer recoupment and underscores the importance of assessing recoupment rights, if any, throughout the claims process, say Geoffrey Fehling and Veronica Adams at Hunton.

  • Awaiting Critical Bankruptcy Decision For Surety Industry

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    The recent oral argument in Argonaut Insurance v. Falcon V offers the Fifth Circuit an opportunity to create a rule for multilateral contracts in bankruptcy and exposed the common misconception that a surety assumes the risk of the principal's nonperformance when it issues a bond, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.

  • Bankruptcy Case May Help Define Surety Executory Contract

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    Next week’s Fifth Circuit oral argument in Argonaut Insurance v. Falcon V is of great interest to the surety industry as this case presents an opportunity for the court to address several unsettled questions on whether a tripartite arrangement, such as a surety bond program, is an executory contract for bankruptcy purposes, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.

  • Assessing NFT Insurance Coverage Options And Gaps

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    Because non-fungible tokens do not come bundled with insurance policies, and until NFT-specific insurance policies become more common, NFT owners should proactively protect against risk by drawing upon existing frameworks, despite potential coverage gaps, say Brian Scarbrough and Edward Crouse at Jenner & Block.

  • Insurer Implications As 3 Climate Suits Return To State Courts

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    Three federal circuit courts recently remanded climate change lawsuits brought by state and local governments against major energy corporations back to state courts, where plaintiffs are more likely to succeed, thus significantly increasing their insurers' and reinsurers' exposure to defense costs and judgments, say José Umbert and Jason Reeves at Zelle. 

  • 6 Rulings Reinforce BIPA Coverage For Illinois Policyholders

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    Six well-reasoned recent decisions in the Northern District of Illinois have considerably strengthened policyholders’ arguments for commercial general liability coverage in lawsuits brought under the Illinois Biometric Information Privacy Act, say attorneys at Neal Gerber.