The United States District Court for the Eastern District of Pennsylvania recently held that plaintiff, who first initiated arbitration against the defendant’s subsidiary but then commenced a lawsuit against its parent, must establish the subsidiary’s liability in arbitration before filing any claims that purport to pierce the subsidiary’s corporate veil. 

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Read More Court Reinforces Federal Policy Favoring Arbitration

Recently, the United States District Court for the Central District of California concluded in a matter of first impression that a reinsured cannot recover in tort for a reinsurer’s alleged breach of the implied covenant of good faith and fair dealing. …
Read More California Federal Court Concludes That Reinsurer Is Not Subject To Tort Liability For Alleged Breach Of A Reinsurance Contract Under California Law

The Tennessee Supreme Court is now considering whether to dismiss a case against an employer brought by its employee’s daughter concerning her alleged secondhand exposure to asbestos.  Plaintiff Amanda Satterfield succumbed to mesothelioma at the age of 25. …
Read More Secondhand Asbestos Exposure Lawsuit Makes Its Way to Tennessee Supreme Court

The Financial Services Authority (“FSA”) published an interim report in respect of the Retail Distribution Review (“RDR”) discussion paper it published in 2007. The RDR forms one component of the FSA’s retail strategy, which also includes the “Treating Customers Fairly” and “Financial Capability” initiatives. …
Read More UK: FSA Publishes Interim Report on Retail Distribution Review 2007

The FSA’s financial crime and intelligence sector has carried out a review of data security systems and controls in place in 39 UK companies operating across all of the different financial services sectors. The review found that many firms still under estimate the risk of data loss and fraud to their business and their customers. …
Read More UK: The Financial Services Authority (FSA) has Identified Weaknesses in the Attitude of Firms to Data Security and Threatens Sanctions

For our readers who are interested in the specific allegations contained in the recent shareholder class action complaint against Bear Stearns arising from the JPMorgan buyout, a copy is attached here.The suit, entitled Eastside Holdings, Inc. v. Bear Stearns Cos. Inc. et al., No. 08-CV-2793 (S.D.N.Y. Mar. 17,

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Read More Interested In Reading The Bear Stearns Shareholder Class Action Complaint? See Attached…

Earlier this month, shareholders filed a securities class action against Blackstone Group L.P. (“Blackstone”), its CEO and its CFO over their alleged failure to warn investors that some of the investments managed by Blackstone were performing poorly and that Blackstone was at risk of having to pay back some of its performance fees. 

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Read More Shareholders Sue Blackstone Over FGIC and Other Poorly Performing Investments

The English Court has ordered that meetings be convened on 4 July 2008 for creditors to vote on the solvent schemes of arrangement being proposed by 82 members of the E W Payne Pools. The E W Payne Pools have been in run-off for over 20 years and, it is predicted, that the run-off could last, if not for the proposed schemes, for at least another 20 years. The purpose of the schemes is to bring that run-off to an early close. …
Read More The E W Payne Pools Scheme

Scottish Coal Company and ors v. Royal and Sun Alliance Insurance plc and ors [2008] EWHC 880 (Comm) concerned a claim brought by coalmine owners against a consortium of insurance companies in respect of a roof collapse in May 2000. Liability centred on the unsuccessful attempt of the owners to mine through a roadway (or cross cut). …
Read More English High Court Finds that an Extension to a Policy was an Unequivocal Affirmation of the Contract

The Institute of Insurance Brokers (IIB) has responded to the Financial Services Authority’s (FSA) discussion paper on Transparency Disclosure and Conflicts of interest in the UK Commercial Insurance Market with major concerns (click here to view the IIB press release). 

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Read More FSA: IIB Sees Demise of Small Brokers if Commission Disclosure Becomes Mandatory