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

The Court of Appeal has held, in dismissing an appeal from summary judgment given in the Commercial Court, that lease agreements for aircraft can fall within the Unfair Contract Terms Act 1977’s (“UCTA”) exemption for ‘international supply contracts’, even if the contract does not specifically provide for the aircraft to be transported to another country. …
Read More UK: UCTA’S EXEMPTION TAKES FLIGHT – Trident Turboprop (Dublin) Ltd v First Flight Couriers Ltd [2009] EWCA Civ 290

The largest reported claim in Chilean history appears to have been conclusively settled recently with Mapfre’s reported agreement to contribute an additional US$43.7 million to resolution of the Collahuasi claim. …
Read More Chile: Collahuasi Claim Reportedly Settles for US$161.5 million

Edwards Angell Palmer & Dodge attorney Machua Millett will participate in the Brickell Avenue Business Interruption and Energy Conference in Miami from Wednesday June 10, 2009 to Friday June 12, 2009.  The conference will include 12 seminars on various aspects of business interruption risk management and claims handling in the energy context, including the role of outside counsel, forensic accountants, expert consultants, loss adjusters and metallurgists. 

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Read More Brickell Avenue Business Interruption and Energy Conference

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

As reported here, here, and here, Florida legislators and insurance regulators actively are seeking to shed some of the state’s hurricane risk and to strengthen the financial condition of the Florida Hurricane Catastrophe Fund (the “Fund”).  As reported here, the Fund, which was established after Hurricane Andrew, provides reinsurance coverage for residential property insurers in Florida in the event of major windstorm events. 

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Read More Florida Hurricane Catastrophe Fund Reforms May Impact Demand for Private Reinsurance Coverage

Defendant New York Merchants Protective Co. Inc. (“NYMP”) is engaged in the business of installing and/or maintaining alarm systems.  See Custom Metal Inc. v. New York Merchants Protective Co. Inc., 21343/08 (Nassau County, Sup. Ct., Apr. 6, 2009).  Plaintiff Custom Metal Inc. (“Custom Metal”) was a customer of NYMP and entered into a contract in 2003 by which NYMP was responsible for installing and maintaining a security system at Custom Metal’s principal place of business. 

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Read More New York State Court Orders Parties to Arbitrate Dispute, even where Plaintiff Alleges that Contract Containing Arbitration Clause Was Induced by Fraud

In IMT Shipping & Chartering GMBH v Chansung Shipping Co Ltd, owners of Zenovia [2009] EWHC 739 (Comm), the appellant time charterer appealed against the decision of arbitrators concerning the status and effect of a notice of approximate redelivery date given by the charterer to the respondent ship owners. …
Read More UK: Notice of Approximate Redelivery Date by Time Charterer Does Not Give Rise to Promissory Estoppel and Prevent Subsequent Change

The FSA has published Policy Statement 09/7 (the PS) in connection with its review of the limits under the Financial Services Compensation Scheme (FSCS). The PS addresses changes to FSCS limits in connection with insurance, insurance mediation, investments and home finance mediation and home finance lending and administration which will come into effect on 1 January 2010. …
Read More FSA to Simplify FSCS Compensation Rules

Region: The International Development Bank, World Bank Group, Andean Development Corporation, Caribbean Development Bank and the Central American Bank for Economic Integration recently announced their pledge to lend US$90 billion to Latin America and the Caribbean in the next two years. …
Read More Latin America Update: World Bank and Others Pledge US$90 Billion in Loans to Latin America and Caribbean over Next Two Years; Total Premiums Grow in Peru and Venezuela; Brazilian Regulator Approves Two More Occasional Foreign Reinsurers