A Washington district court recently held that an insurer’s conduct and communications during a mediation were discoverable in a subsequent bad faith lawsuit brought against the insurer by another insurer in its status as the insured’s subrogee.
United States
The U.S. Department of the Treasury Term Sheet for Privately Held Financial Institutions Applying for the Capital Purchase Program
By Troutman Pepper Locke on
Posted in Industry Developments, United States
As part of the Treasury’s effort to inject capital into the credit markets, the Treasury initiated the Capital Purchase Program (“CPP”) in October. Access to the CPP was expanded on November 17, 2008 to include certain privately-held companies. …
Read More The U.S. Department of the Treasury Term Sheet for Privately Held Financial Institutions Applying for the Capital Purchase Program
Extension of Robust New Massachusetts Security Rules – What is Needed Now to Comply by May 1
As reported in a previous post, the new Massachusetts security regulations affect almost every employer in the Commonwealth and many other companies with other relationships with Massachusetts residents. They will require significant security and other policy changes, including encryption of laptops and wireless communications containing personal information.
D&O Policy Exclusion Barring Coverage for Securities Suits is not Limited to Only the Insured’s Securities
By Troutman Pepper Locke on
The Eighth Circuit Court of Appeals recently upheld an exclusion in a D&O policy barring coverage for suits against officers and directors arising out of the underwriting and sales of securities. Leonard v. Executive Risk Indemnity, Inc., No. 07-1327 (8th Cir. Oct. 27, 2008).
N.Y. Reconsiders Regulating Credit Default Swaps as Insurance
In congressional testimony before the House Agriculture Committee on Thursday, November 20, 2008, New York Superintendent of Insurance Eric Dinallo announced that New York is postponing its plans to regulate certain credit default swap contracts (“CDS Contracts”) as insurance. …
Read More N.Y. Reconsiders Regulating Credit Default Swaps as Insurance
New York Court Finds Insured Entitled to Seek “Consequential Extra-Contractual Damages” on Breach of Contract Claim Against Carrier
A New York federal district court recently held that an insured’s claim for consequential extra-contractual damages is properly part of its breach of contract claim against its carrier.
Florida District Court Refuses to Dismiss Claim for Breach of Implied Warranty of Good Faith, Holding that It Was Not a Bad Faith Claim in Disguise
A Florida district court recently denied two insurers’ motion to dismiss a count for breach of the implied warranty of good faith and fair dealing. Arlen House East Condo. v. QBE Int’l Ins. Ltd., No. 07-23199, 2008 WL 4500690 (S.D. Fla. Sept. 30, 2008). The court rejected the insurers’ argument that the breach of implied warranty count was merely a “disguised” first-party statutory bad faith claim.
Florida Supreme Court Holds that an Insured Can Assign its Causes of Action Against a Nonparty Insurance Broker and Obtain a Release, Consistent with the Court’s Decision in Cope
In Wachovia Ins. Serv., Inc. v. Toomey, No. 06-1110, 2008 WL 4379587 (Fla. Sept. 29, 2008), the Florida Supreme Court answered two interrelated, certified questions from the Eleventh Circuit.
Aon General Counsel Testifies Before House Committee on Financial Services on Proposed Insurance Program to Restore Liquidity to Financial Institutions
By Troutman Pepper Locke on
On Tuesday, November 18, 2008, the House Committee on Financial Services held a hearing regarding oversight of the Economic Stabilization Act of 2008 (the “Act”), government lending and insurance facilities, and their impact on the current economy and credit availability. …
Read More Aon General Counsel Testifies Before House Committee on Financial Services on Proposed Insurance Program to Restore Liquidity to Financial Institutions
Florida Supreme Court Holds Workers’ Compensation Attorney’s Fee Statute Ambiguous
By Troutman Pepper Locke on
Posted in Florida Developments, United States
In a recent decision, the Florida Supreme Court found that the statutory formula for calculating attorney’s fee awards for disputed workers’ compensation claims is ambiguous and held that the awards should be determined using a multi-factor reasonableness test. …
Read More Florida Supreme Court Holds Workers’ Compensation Attorney’s Fee Statute Ambiguous