More Insurance Coverage
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February 21, 2024
Pa. High Court Returns Insurer's Status Question To 3rd Circ.
The Pennsylvania Supreme Court reversed its decision to consider whether a state-created insurer of last resort is a public or private entity, sending the case back to the Third Circuit on Wednesday after determining that the question was a matter of federal law.
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February 21, 2024
Wyden Plans Clampdown On Private Placement Life Insurance
Senate Finance Committee Chairman Ron Wyden plans a legislative push to thwart abuse of private placement life insurance, according to a report he released Wednesday that called the arrangements a tax shelter worth at least $40 billion that benefits a small group of very wealthy people.
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February 21, 2024
Barnes & Thornburg Beats Ga. Malpractice Claim On Appeal
A Georgia state appeals court has upheld the dismissal of a legal malpractice claim brought by a trustee for a former Barnes & Thornburg LLP client, finding there was "no merit" to her arguments that the firm violated the standard of care and sunk the trust's insurance suit.
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February 21, 2024
Fla. Senate Panel OKs $900M Tax Plan With Insurance Tax Cut
Florida would offer exemptions for insurance taxes and reenact a series of sales tax holidays under a bill that a Senate committee approved offering $900 million in tax reductions.
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February 20, 2024
Judge Spikes Ebix Investors' Bid For Ch. 11 Equity Committee
A Texas bankruptcy judge declined Tuesday to take the rare step of ordering the appointment of an equity committee to act on behalf of a group of shareholders in Ebix Inc.'s Chapter 11 case, ruling that the investors will be adequately represented without one.
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February 20, 2024
Jury Says LSD Didn't Cause Quadriplegia; Insurer To Pay $1M
A North Carolina insurance company is on the hook for a $1 million settlement between a former high school gymnast who became a quadriplegic after taking LSD and the owners of the home where he ingested the drugs, a Houston federal jury ruled Tuesday.
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February 20, 2024
Cedars-Sinai Can't Escape Ex-Worker's Retirement Fee Suit
A California federal judge refused to toss a proposed class action against Cedars-Sinai Medical Center alleging mismanagement of an employee retirement plan, finding an ex-worker sufficiently backed up claims the California hospital system should have done more to lower fees and offer better investment choices to retirees.
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February 20, 2024
Insurer Says BlockFi Premium Suit Violates Ch. 11 Plan
A directors and officers insurance carrier for bankrupt cryptocurrency lender BlockFi is seeking to remove a lawsuit attempting to claw back $22.5 million in premiums from New Jersey state court to bankruptcy court, saying the debtor is violating the order confirming its Chapter 11 plan.
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February 20, 2024
McElroy Deutsch Litigator Jumps To Stevens & Lee In NJ
Stevens & Lee PC has picked up an insurance and ERISA disputes litigator in New Jersey from McElroy Deutsch Mulvaney & Carpenter LLP.
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February 20, 2024
No Coverage For Firm In Haiti Malpractice Suit, Insurer Says
An insurance company has asked a Washington federal court to declare it does not have to cover a Seattle law firm facing a $31 million New York federal malpractice case stemming from its representation of a Haitian agency in a petroleum contract arbitration, arguing the firm breached the insurance agreement by lying on its application.
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February 20, 2024
Truist Selling Insurance Brokerage At $15.5B Value
Truist Financial Corp. said Tuesday it has agreed to sell its remaining stake in subsidiary Truist Insurance Holdings to an investor group led by private equity firms Stone Point Capital and Clayton Dubilier & Rice, in an all-cash transaction that gives the insurance brokerage an enterprise value of $15.5 billion.
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February 20, 2024
Justices Won't Touch UBH Mental Health Coverage Case
The U.S. Supreme Court declined Tuesday to hear United Behavioral Health's challenge to a Tenth Circuit decision that found the company violated federal benefits law by refusing to cover a teenage girl's inpatient mental health treatment claims.
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February 16, 2024
No Coverage For Conn. Firm's Malpractice Fight, Insurer Says
The law firm Evans & Lewis LLC and partner Douglas J. Lewis should lose a breach of contract suit against their malpractice carrier because they were already in the early stages of battling a professional misconduct claim when the relevant policy went into effect, the insurer told the Connecticut Superior Court in seeking summary judgment.
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February 16, 2024
Trump Owes $355M For Fraud That 'Shocks The Conscience'
A New York state judge on Friday found Donald Trump, his adult sons, his companies and longtime executives liable for a decadelong valuation fraud conspiracy, ordering the defendants to disgorge $364 million in ill-gotten gains to the state, plus interest, with the former president on the hook for the lion's share.
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February 16, 2024
Barge Co., Insurer End Pollution Cleanup Coverage Fight
A Washington barge company and its insurer reached an agreement in a dispute over coverage of legal expenses stemming from claims that the company was liable for environmental pollution at an EPA cleanup site, according to a notice filed in Washington federal court.
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February 16, 2024
Insurance Group Of The Year: Wiley
Wiley Rein LLP helped major insurers score wins while navigating complex and novel coverage issues, including the applicability of "bump-up" exclusions and the scope of cyber liability policies, cementing the firm as one of Law360's 2023 Insurance Groups of the Year.
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February 15, 2024
Rental Car Cos. Can Be Held Liable As Insurers In Colo.
Rental car companies that sell insurance policies can be on the hook for bad faith claims, a Colorado Court of Appeals panel ruled Thursday in a published opinion, concluding that a trial court wrongfully dismissed a bad faith, breach of contract suit against Hertz based on the erroneous finding that it was not an insurer.
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February 15, 2024
Club, Insurer Resolve Fiduciary Breach Coverage Row
A country club owner, various club board members and Selective Insurance Co. agreed to dismiss their dispute Thursday in Massachusetts federal court over coverage for breach of contract and fiduciary duty claims that club investors lodged in arbitration, resolving the coverage case after reaching a settlement in January.
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February 15, 2024
Ex-Atty Who Lied To Grand Jury About Frauds Gets 6.5 Years
A Manhattan federal judge sentenced a disbarred lawyer to six and a half years in prison Thursday for his 14-year, $17 million real estate Ponzi scheme, for laundering insurance scam proceeds and for his "unheard of" step of lying to a grand jury.
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February 15, 2024
Wash. High Court Affirms Liberty Mutual's Bill Review System
The Washington State Supreme Court on Thursday said Liberty Mutual can use an industry database to cap payments to medical providers, rejecting a neurologist's argument that using computer-generated data to calculate medical bills violated consumer protection law because it didn't guarantee reasonable payment.
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February 15, 2024
1st Circ. Partially Revives Tufts U. Worker's Benefits Fight
The First Circuit has said a Massachusetts federal judge was right to release Tufts University from a suit by an employee alleging her insurance premiums were illegally increased but reinstated her claims against underwriter Prudential due to ambiguous contract language.
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February 15, 2024
Vaughan Baio Adds 3 Partners And 2 Offices In NY, NJ
Philadelphia-based midsized firm Vaughan Baio & Partners expanded its footprint and resources this month with the addition of three partners and the opening of two offices in New York and New Jersey.
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February 15, 2024
9th Circ. Backs Homeowners' Cert. In Allstate Overcharge Suit
Allstate will have to face a class action accusing it of artificially inflating home insurance premiums for thousands of California properties by double-counting built-in garage space, a Ninth Circuit panel ruled, affirming a lower court's decision.
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February 15, 2024
Insurance Group Of The Year: Simpson Thacher
Insurance attorneys at Simpson Thacher & Bartlett LLP helped Travelers score a win against CVS in a coverage fight over claims stemming from the opioid epidemic, securing the firm a spot on Law360's 2023 Insurance Groups of the Year.
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February 14, 2024
Prudential Inks $35M Deal Over Investor's Stock-Drop Suit
A Prudential Financial Inc. investor asked a New Jersey federal judge on Wednesday to sign off on a $35 million deal to settle allegations the insurer hid mortality trends and understated its life insurance reserves, causing its stock to trade at inflated prices.
Expert Analysis
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Supply Chain Issues Put Carmack Preemption In Spotlight
As U.S. businesses continue to struggle with supply chain problems, claims for losses and damages during shipping are likely to increase — so companies should make sure they understand how the Carmack Amendment preempts most state law claims related to carrier liability for cargo loss, and what the exceptions are, says Andrew Steif at Gunster.
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Aviation Watch: How Russia Sanctions Will Affect Aviation
Sanctions levied against Russia in the wake of its invasion of Ukraine will likely leave the country with almost no national air transport industry, but will also have significant impacts on the Western aviation sector as well, from complicating flight paths to jeopardizing leasing arrangements, says Alan Hoffman, a retired attorney and aviation expert.
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Why Climate Plaintiffs Are Filing Securities, Consumer Suits
While U.S. climate change lawsuits against carbon majors based on public nuisance tort claims have largely ended up in a procedural and jurisdictional maze, climate plaintiffs may be more successful with claims based on state securities and consumer protection laws, say Nick Dolejsi and Kyle Espinola at Zelle.
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Why I'll Miss Arguing Before Justice Breyer
Carter Phillips at Sidley shares some of his fondest memories of retiring Justice Stephen Breyer both inside and out of the courtroom, and explains why he thinks the justice’s multipronged questions during U.S. Supreme Court oral arguments were everything an advocate could ask for.
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Ruling Highlights Key Intersection Of 2 Health Benefit Laws
The First Circuit’s recent ruling in N.R. v. Raytheon, reviving claims that an insurance plan violated the Mental Health Parity and Addiction Equity Act in denying treatment for autism, shows the statute’s value as a tool for patients — and how the Employee Retirement Income Security Act can be used to litigate such cases, says Mark DeBofsky at DeBofsky Sherman.
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Courts Are Right To Reject Insurer ERISA Atty Fee Awards
There has been a recent, sharp uptick in insurance companies seeking fees against unsuccessful claimants of Employee Retirement Income Security Act benefits, but this unfair tactic is correctly meeting with little or no success in the courts, says Elizabeth Hopkins at Kantor & Kantor.
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Trucking Cos. Need Stronger Insurance To Protect Public
A recent Law360 guest article urged lawmakers to implement liability protections for the trucking industry, but raising outdated trucking insurance limits would better incentivize companies to keep unsafe drivers and vehicles out of their fleets to begin with, protecting the industry and motorists alike, says Tad Thomas at The Thomas Law Offices and the American Association for Justice.
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Key Contract Lessons In Del. Justices' Hotel Deal Ruling
The Delaware Supreme Court recently ruled in AB Stabile v. MAPS Hotels that a Chinese financial conglomerate breached a hotel sale agreement's standard ordinary course covenant, providing significant insight on the meaning and application of these contracts, and the need for consent on material changes prior to closing, say attorneys at Quinn Emanuel.
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Trucking Industry Needs Protection From Huge Legal Verdicts
Truckers and trucking companies are plagued by an exponential increase in accident litigation costs, with damages awards skyrocketing in recent years, so lawmakers should consider giving the trucking industry special liability protections similar to those enjoyed by Amtrak and emergency workers, says Harold Kim at the U.S. Chamber of Commerce Institute for Legal Reform.
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8th Circ. Ruling Sets Road Map For Disability Benefit Reviews
A recent ruling from the Eighth Circuit in Roehr v. Sun Life Assurance reinstated the plaintiff's disability benefits, demonstrating that while an initial approval is not a guarantee of ongoing payment, insurers need to tread carefully when they terminate benefits in the absence of new findings, says Mark DeBofsky at DeBofsky Sherman.
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Medicare Advantage Plans Must Beware DOJ Scrutiny
The U.S. Department of Justice is increasingly investigating how health insurers report risk adjustment data in connection with the Medicare Advantage program, and several recent cases help detail the types of conduct that the DOJ is focusing on, say attorneys at Debevoise.
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How The ERISA Landscape May Shift This Year
Employee Retirement Income Security Act litigation shows no signs of slowing down after the past two landmark years, with courts poised to tackle key issues including the pleading standard for fee cases, the enforceability of arbitration agreements, mental health parity and more, say attorneys at Groom Law Group.
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US Broadened Reach Of Targeted Sanctions In 2021
This year, the Office of Foreign Assets Control leveraged sanctions in pursuit of national security, evincing a clear trend toward more targeted sanctions programs without significantly sacrificing their financial impact, say attorneys at Ropes & Gray.