After the first two weeks of the Brocade trial that may last up to two months, the sole development of note remains the potentially damaging testimony of a former human resources employee that Brocade exec Greg Reyes told her that “it’s not illegal if you don’t get caught.”
United States
Florida Governor Charlie Crist extends Citizens Property Insurance Rate Freeze
By Troutman Pepper Locke on
Posted in Florida Developments, United States
In January 2007, the Florida Legislature froze the rates of Florida’s state sponsored property insurer, Citizens Property Insurance Corporation, until the end of the year. On June 26, 2007, Florida Governor Charlie Crist signed a bill extending the rate freeze until January 1, 2009.
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Florida Insurer’s Removal of Receivership Proceeding to Federal Court Under Review
By Troutman Pepper Locke on
We are following a unique case pending in the U.S. District Court for the Northern District of Florida, where Universal Health Care Insurance Company (UHCIC) has attempted to remove to federal court the receivership proceedings commenced in Florida state court by the Florida Department of Financial Services (DFS). The DFS has moved to remand the matter to state court, briefs have been filed, and the matter awaits a ruling from the court.
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Mississippi Attorney General Sues State Farm Again
By Troutman Pepper Locke on
On June 11, Mississippi Attorney General Jim Hood filed a civil action again State Farm Fire and Casualty Co. in the Circuit Court of Hinds County, Mississippi, alleging breach of contract, bad faith breach of contract, and breach of duty of good faith and fair dealing. The suit arises out of State Farm’s alleged failure to honor an agreement for a mass settlement of claims arising out of damage caused by Hurricane Katrina.
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Pending Legislation May Change New York Law of No-Prejudice
Both houses of the New York State legislature passed a bill proposing to reverse the longstanding New York rule that an insurer need not establish prejudice in order to disclaim coverage based upon late notice.
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Allstate Settles Post-Trial Legal Dispute In First Louisiana Wind vs. Water Dispute Trial
By Troutman Pepper Locke on
On June 21, Allstate Insurance announced that it settled a post-trial legal dispute with its insured, Robert Weiss, in a significant Hurricane Katrina-related damages case.
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New Cover Blurs the Distinction Between War and Terrorism
By Troutman Pepper Locke on
Posted in Industry Developments, United States
In the United States, a hotly debated industry issue is the future of the Terrorism Risk Insurance Program . We have recently seen a proposal in a House Bill to extend and expand TRIA.
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Florida Legislature Creates Task Force on Citizens Property Insurance Claims Handling
By Troutman Pepper Locke on
The Florida Legislature created the Task Force on Citizens Property Insurance Claims Handling and Resolution during a special session in 2007. Citizens Property Insurance Company, Florida’s state sponsored insurer, experienced significant difficulties in handling the deluge of claims from the 2004 and 2005 hurricane seasons.
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Service of Suit Clause Not an Exclusive Forum Selection Clause Under New Jersey Law
By Troutman Pepper Locke on
On June 20, 2007, the Superior Court of New Jersey, Appellate Division reaffirmed that New Jersey Courts do not consider a Service of Suit Clause in an insurance policy to constitute an exclusive forum selection clause in favor of the insured.
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Does an SEC Settlement Constitute Uninsurable Disgorgement?
By Troutman Pepper Locke on
An intermediate New York State appellate court held late last year that there was a question of fact whether a component of an SEC settlement that was specifically labeled “disgorgement” actually constituted the kind of disgorgement that courts deem uninsurable as a matter of public policy.
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