A federal district court in Minnesota recently held that an insurer does not need to defend its insured under either a general liability policy or errors and omissions policy for claims related to spyware that the insured allegedly installed and monitored on a claimant’s computer. 

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Read More Court Holds that Spyware Claims are Not Covered by GL or E & O Policy

In Kenney, Becker LLP, et al. v. Kenney, 2008 U.S. Dist. LEXIS 1995 (S.D.N.Y. 2008), the United States District Court for the Southern District of New York held that a party that issued a nonparty subpoena in an arbitration arising under the Federal Arbitration Act (“FAA”) in bad faith and without the panel’s approval was subject to sanctions under both Rule 45 of the Federal Rules of Civil Procedure and the court’s inherent authority to impose attorneys’ fees. 

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Read More New York Federal Court Sanctions Party for Issuing Improper Nonparty Subpoena in Arbitration

On October 7, 2008, the United States District Court for the District of Delaware granted the defendants’ motion to dismiss in In re Countrywide Financial Corporation Derivative Litigation, a consolidated shareholder derivative action alleging breach of fiduciary duty against certain of Countrywide’s directors and officers arising out of Countrywide’s involvement in the subprime lending crisis. 

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Read More Countrywide Derivative Action Dismissed on Standing Grounds

In a prior post (please click here), we advised that the U.S. Supreme Court unanimously held that individual participants in 401(k) retirement plans can sue plan fiduciaries to recover losses resulting from mishandling of their individual retirement accounts. …
Read More Individual Plan Participant Suits: Despite Victory in U.S. Supreme Court, LaRue Voluntarily Dismisses ERISA Action

The European Commission (the Commission) continues to examine whether the insurance industry’s Block Exemption Regulation (BER) should continue after 2010. Please see the previous blog for further information on the block exemption by clicking here. …
Read More EU: Disappointing Response to the European Commission’s Consultation Paper on the Insurance Block Exemption Regulation

With piracy attacks on the rise, especially in the Gulf of Aden off the East coast of Somalia, the insurance industry is seeing an increase in requests for specialist kidnap and ransom insurance.  These attacks are also becoming more violent, and resolutions are taking longer to negotiate, all of which increase the costs involved.  Unfortunately, many ship owners have no choice but to move their cargo through these dangerous areas. …
Read More Kidnap & Ransom Coverage Requests Increasing Due to Piracy

Recently, the New York Court of Appeals affirmed a decision from a New York appellate court, holding that an insured’s notice under one policy does not constitute notice under a second policy issued by the same insurance carrier. …
Read More New York’s Highest Court Confirms that Notice Under One Policy Does Not Constitute Notice Under a Second Policy Issued by the Same Carrier

On November 3, 2008, the U.S. Supreme Court heard oral arguments in Wyeth v. Levine.  This case involves the question whether the Food and Drug Administration’s (“FDA”) regulation of prescription drug labeling pursuant to Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq. (“FDCA”) preempts state common law tort claims. 

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Read More Supreme Court Hears Arguments in Wyeth v. Levine Drug Labeling Preemption Case

The Court of Appeal in Nigerian National Petroleum Corporation v IPCO (Nigeria) Ltd has reinforced the need for quick and effective enforcement of awards within the international arbitration system. 

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Read More UK: Court of Appeal Decision Supports Expeditious Enforcement of International Arbitration Awards

In an earlier consultation paper, CP08/8, it was proposed by the FSA that the current tariff measure for insurance providers be altered so that it was no longer based solely on annual net premium, but also took into account the level of technical liabilities/reserves. …
Read More UK: Tariff Changes to Insurers’ Financial Services Compensation Scheme (FSCS) Contributions Announced in FSA Consultation Paper 08/11