Expert Analysis

• How Product Recalls Expose Insurance Coverage Gaps

  

  The recent Cyclospora outbreak in iceberg lettuce highlights the potential insurance risks of a contaminated ingredient or defective product creating a ripple effect throughout an entire supply chain, leaving companies with substantial costs that standard policies may not cover, say attorneys at Morgan Lewis.

• State Of Insurance: Q3 Notes From Illinois

  

  In the past quarter, two Seventh Circuit rulings and an Illinois appellate decision applied state insurance law to issues ranging from the illusory coverage doctrine and an insured's right to independent counsel, to the time to commence uninsured motorist arbitration, says Matthew Fortin at BatesCarey.

• Opinion

  Judges Must Turn To Merits Earlier To Fix Civil Justice System

  

  The U.S. justice system is long overdue for a cultural shift that encourages judges to engage with the merits of a case from the outset, which would help to cut through procedural complexities and deliver high-quality justice efficiently and at lower cost, says Steven Kayman at Rottenberg Lipman.

• Series

  Open-Water Swimming Makes Me A Better Lawyer

  

  Swimming long distances in open waters is not necessarily an escape from my intellectual property practice, but a complementary discipline that similarly rewards sustained attention, intellectual curiosity, resilience and the ability to pursue a distant objective without losing command of the immediate task, says Christina MacDougall at Morgan Lewis.

• Opinion

  The Invisible AI Danger That May Undermine Legal Profession

  

  A public database tracking cases involving hallucinations generated by artificial intelligence recently surpassed 2,200 entries, but the bigger risk underlying attorneys’ use of such tools is that they will slowly surrender their judgment to AI and lose analytical skills, says Massachusetts District Court Associate Justice Brian Palmucci.

• Full Policy Payment May Not Bar Insurer Bad Faith In 9th Circ.

  

  Establishing that an insurer acted within its contractual rights likely disposes of a breach-of-contract claim, however, following the Ninth Circuit's recent ruling in Quilbillies v. First American Title Insurance, the same showing may not dispose of bad faith, says Tracy Garcia at Cozen O'Connor.

• Calif. High Court Ruling Eases Path To Excess Coverage Suits

  

  Following a recent California Supreme Court ruling in Fox Paine v. Twin City Fire Insurance, policyholders will have an easier time sustaining suits against excess insurers, leading the latter to settle more frequently, buy back more policies, increase premiums and change policy language, says Charles Grosenick at Brown & Winters.

• How AI Could Help Judges Spot Their Own Biases

  

  In close cases where there’s room for discretion, artificial intelligence could challenge judges’ implicit biases by running counterfactual tests at scale — but any judicial use of such tools would need guardrails, say Arnold Peter at Peter Law and Nancy Rapoport at University of Nevada.

• State Of Insurance: Q3 Notes From Pennsylvania

  

  Pennsylvania courts issued several noteworthy insurance decisions last quarter, offering practical guidance for insurers evaluating public policy coverage disputes, drafting umbrella policy language and defending litigation involving claim file discoverability, says Todd Leon at Marshall Dennehey.

• How To ID And Respond To 5 Types Of Misleading Witnesses

  

  Witnesses can mislead fact-finders using a variety of tactics — from strategic amnesia to manufactured ignorance — but lawyers can learn how to identify and expose this testimony to come out on top, says Allison Rocker at Baker McKenzie.

• 3 Strategies To Reduce AI Sycophancy In Legal Work

  

  The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

• Key Risk Assessment Gaps To Note From NY Cyber Guidance

  

  Covered entities should take a fresh look at the compliance gaps flagged in recent New York State Department of Financial Services guidance on "deficient cybersecurity programs," particularly around scope, asset inventories and documentation, say attorneys at Mayer Brown.

• NFL Coverage Ruling Sets Limits On Long-Tail Claim Defenses

  

  A New York appellate court's recent decision — holding that National Football League players who sustained neurological injuries had suffered multiple occurrences for insurance coverage purposes — may also be used to limit insurers' efforts to declaim coverage for other long-tail injury cases, including sexual abuse claims, say attorneys at SDV Fenchurch.

• 2nd Circ. EFAA Ruling Shifts Employer Litigation Strategy

  

  In Diaz-Roa v. Hermes Law, the Second Circuit recently held that, under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employers can't carve out nonharassment claims and send them to arbitration, which has implications for discovery, litigation costs and resolution strategy in EFAA-covered disputes, say attorneys at Krevolin Horst.

• PFAS Ruling Extinguishes A Policyholder Path To Coverage

  

  Following an Ohio federal court's recent ruling in Fire-Dex v. Admiral Insurance, policyholders whose PFAS exposure is concentrated in workplace products will see bids for coverage fail under the occupational-disease exclusion, giving insurers a defense well suited for the category of claims that has been most resistant to pollution exclusions, say attorneys at Benesch.