In an insurance coverage action filed recently in the U.S. District Court for the Eastern District of North Carolina, an insured seeks an order directing its D&O insurer to pay defense costs and indemnify it, if it is found liable, in an action brought by a former director.
United States
New York State Court Orders Pre-Arbitration Discovery in Aid of Contemplated Arbitration
By Troutman Pepper Locke on
In the Matter of Trader Pro LLC v. Pires, No. 012334/09 (N.Y. Sup. Ct., Apr. 16, 2009), the Petitioners moved for an order pursuant to CPLR 3102[c] for the issuance of pre-arbitration subpoenas to the Respondents, in order to determine the identity of other potential parties for an arbitration that Petitioners intended to commence. …
Read More New York State Court Orders Pre-Arbitration Discovery in Aid of Contemplated Arbitration
Significant Hurricane Katrina-Related Trial Under Way in Louisiana Federal Court
By Troutman Pepper Locke on
A trial involving claims that the U.S. Army Corps of Engineers was negligent in its maintenance of the Mississippi River Gulf Outlet began recently in Louisiana federal court. (for a prior blog post regarding these claims, please click here). The non-jury trial, in which Judge Stanwood Duval, Jr. will preside, is expected to last approximately four weeks. …
Read More Significant Hurricane Katrina-Related Trial Under Way in Louisiana Federal Court
Pennsylvania Superior Court Affirms Decision in Favor of Insurer Regarding Whether D&O Policy’s Limit of Liability Applied in the Aggregate or Per Claim
By Troutman Pepper Locke on
The Pennsylvania Superior Court recently affirmed a lower court’s summary judgment ruling in favor of an insurer, holding that the limit of liability in a directors and officers liability policy was limited to $10 million in the aggregate, as opposed to per claim, even though certain policy documents did not include the word “aggregate” when referring to the limit of liability.
UPDATE: Surplus Lines Insurer Exemption Legislation Passed By Florida Senate and House
By Troutman Pepper Locke on
Last week, both the Florida Senate and House passed legislation, Senate Bill 1894 and House Bill 853 respectively (the “Legislation”), to exempt surplus lines insurers entirely from the provisions of Chapter 627, except where specifically stated otherwise, which contains Florida’s rate and form filing statutes. …
Read More UPDATE: Surplus Lines Insurer Exemption Legislation Passed By Florida Senate and House
The Rise of Hurricane Ike-Related Litigation
By Troutman Pepper Locke on
Posted in Catastrophe Claims, United States
Just as Hurricane Katrina-related coverage litigation is winding down (click here for our posts about Katrina coverage litigation), several Hurricane Ike-related coverage lawsuits were recently filed in Texas as reported in this article in The Southeast Texas Record.
FTC Delays Enforcement of Red Flag Rules
By Troutman Pepper Locke on
Posted in Privacy/Data Security/Cyber Risk, United States
The Federal Trade Commission (“FTC”) issued a press release on April 30, 2009, a day before the effective date of the federal Red Flag rules (16 CFR 681, the “Rules”), extending the enforcement date for creditors, for a second time, to August 1, 2009. For financial institutions, compliance has been required since November 28, 2008. The Rules require that “financial institutions” and “creditors” with “covered accounts,” as defined under the Rules, develop and implement a written Identity Theft Prevention Program to detect, prevent, and mitigate identity theft.
House Panel Hearings on Optional Federal Charter
By Troutman Pepper Locke on
On April 28, 2009, Democratic Representative Barney Frank, chairman of the U.S. House of Financial Services Committee, told the Reuters Global Financial Regulation Summit in Washington that a congressional panel will examine whether insurance companies should be regulated under an optional federal charter, which would give insurers a choice between state or federal regulation. …
Read More House Panel Hearings on Optional Federal Charter
NY Court Extends Availability of Consequential Damages to No-Fault Insurance Cases
A New York trial court recently denied an insurer’s motion to dismiss the insured’s claim of consequential/extra-contractual damages for pain and suffering and held that the insured may proceed with discovery to explore whether the insurer’s denial of benefits violated the duty of good faith and fair dealing. …
Read More NY Court Extends Availability of Consequential Damages to No-Fault Insurance Cases
Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds
United States Senator Bill Nelson (D-FL) introduced a bill last week to provide a guarantee for the Florida Hurricane Catastrophe Fund from the Federal Reserve. The legislation would also provide federal guarantees for the catastrophe funds in Texas and Louisiana and the earthquake insurance pool in California (the “Cat Funds”).
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Read More Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds