In Clydesdale Financial Services Ltd and others v Robert Smailes and others [2009] EWHC 3190 (Ch), the principal issues before the Court were whether the third claimant, Focus Insurance Company Ltd (Focus), had a real prospect of success in its claims to be, first, a creditor (under the Insolvency Act 1986) of the fifth defendant, Alexander Samuel LLP (LLP) in respect of unpaid premiums and, second, a “victim” under ss.423-425 of the Insolvency Act 1986 of the sale of LLP’s business to Jiva Solicitors LLP (Jiva) effected around the same time as it went into administration.
UK: Trustees’ Duties in Employee Life Assurance Schemes
By Troutman Pepper Locke on
Posted in Life Insurance & Annuities, United Kingdom
In Ms Jacqueline Power v (1) The Trustees of the Open Text (UK) Limited Group Life Assurance Scheme (2) Open Text (UK) Limited [2009] EWHC 3064 (Ch), the High Court considered whether either the trustee of an employee life assurance scheme or the employer that issued the scheme was under a duty to consider the level of cover provided under the scheme and whether the trustee was under a duty to consider whether the cover was appropriate.
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Army Corps of Engineers Held Liable in the “MRGO” Katrina-Related Litigation
By Troutman Pepper Locke on
Recently, Judge Stanwood Duval, Jr. of the U.S. District Court of the Eastern District of Louisiana, found the U.S. Army Corps of Engineers liable for damages resulting from Hurricane Katrina-related flooding that occurred in certain areas outside of New Orleans.
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Connecticut Superior Court Holds Business Risk Exclusion Bars Coverage for Damage to Entire Home When it Toppled After Being Raised by Contractor
By Troutman Pepper Locke on
In Barber v. Berthiaume, No. NNH-CV-05-4009532-S (Oct. 19, 2009), a contractor was hired to expand and repair plaintiff’s home. As part of that work, the contractor was required to raise the home in order to construct new piers. During that process, the house toppled, causing damage in the amount of $26,000.
A Connecticut Superior Court Denies Insurer’s Motion to Strike Counts Alleging Bad Faith and Violations of CUTPA
In Vincoli v. Hartford Underwriters Ins. Co., FST-CV-09-5009591-S (Conn.Super. Sept. 24, 2009), a Connecticut Superior Court recently denied an Insurer’s motion to strike counts alleging bad faith and violations of CUTPA from a complaint. The Insured was seriously injured when his car struck a tree after he was forced to take evasive action to avoid colliding with a phantom motorist. …
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Third Circuit Holds That Professional Services Exclusion in General Liability Policy Applies To All Allegations Arising Out of Architect’s Work and Insurers Had No Duty To Defend
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Court of Appeals for the Third Circuit, applying New Jersey law, recently held that all claims against an insured architectural firm arising out of the firm’s architectural work on a parking garage that later collapsed are not covered under its general liability policies due to professional services exclusions. …
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Georgia Supreme Court Holds Insurer Not Entitled to Safe Harbor Jury Instruction Where it Conditioned Tender of Policy Limits
By Troutman Pepper Locke on
The Georgia Supreme Court recently remanded a case alleging an insurer’s bad-faith failure to settle based upon the fact that the trial court improperly instructed the jury that where a claimant’s demand is conditioned upon the response of another insurance company, the insurer’s offer of its policy limits fulfills its duty to its insured. …
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Oklahoma Federal Court Holds Claim For Misrepresentations in Home Sale Not Covered By Homeowners’ Liability Policy
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The United States District Court for Oklahoma recently ruled that homeowners’ liability policies (primary and excess) did not cover a homebuyer’s lawsuit against the insured sellers for misrepresenting the condition of the home’s fireplaces. …
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Have You Taken Steps to Comply with GINA Yet?
By Troutman Pepper Locke on
On November 21, 2009, the Genetic Information Nondiscrimination Act (GINA), which prohibits genetic information discrimination in health coverage and employment, took effect.
U.S. Securities and Exchange Commission Brings Civil Action Against Former New Century Executives
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On December 7, 2009, the SEC charged three former executives of New Century Financial Corporation with securities fraud. See Securities and Exchange Commission v. Morrice et al., Civ. No. 09cv1426 (C.D. Cal. Dec. 7, 2009). A copy of the SEC’s complaint is available here. Until its bankruptcy in April 2007, New Century was one of the largest subprime lenders in the United States.