In Government of the French Community, and Walloon Government v Flemish Government Case C-212/06, ECJ (Grand Chamber), the European Court of Justice (ECJ) determined that Flemish legislation limiting eligibility to a care insurance scheme was contrary to European provisions concerning the right to freedom of movement within the European Community (EC) in so far as the care insurance scheme included a residence requirement that excluded persons who worked in the Flemish region or in the bilingual Brussels-Capital, but who resided in another part of the national territory (ie the French or German speaking region).
The English Court of Appeal Construes the Meaning of a Clause for Joint Insurance in a Construction Contract
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
In Tyco Fire & Integrated Solutions (UK) Ltd v Rolls-Royce Motor Cars Ltd [2008] EWCA Civ 286, Tyco had negligently caused damage to a Rolls-Royce plant during the course of constructing a sprinkler system. Tyco admitted negligence but claimed that it was not liable for the damage because Rolls-Royce was obliged, by virtue of a provision in the construction contract, to take out joint insurance indemnifying the parties in respect of Specified Perils, which included the said damage.
Kentucky Federal Court: Bad Faith Discovery Not Limited To Pre-Litigation Conduct
By Troutman Pepper Locke on
The Federal District Court for the Western District of Kentucky recently denied a defendant insurer’s request to limit discovery in a bad-faith case to its pre-litigation conduct and to not include conduct post-commencement of litigation.
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New Jersey Supreme Court Rules That Jury May Not Consider General Deterrence When Setting Amounts of Punitive Damages Awards
The Supreme Court of New Jersey recently held that the New Jersey Punitive Damages Act allows punitive damages to be entered for the purposes of punishing and deterring only a specific wrongdoer, not for general deterrence.
Insurance Insolvencies in the United States Reach a 10-Year Low
A recent report by Standard & Poor’s (“S&P”) noted that the number of U.S. insurers placed under regulatory supervision in 2007 was the lowest in a decade. The report attributes a decrease in insolvencies among property casualty insurers to, among other things, a mild hurricane season combined with better underwriting and an improved premium rate environment. …
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Resolution Issued by Ukrainian Court Rejects Enforcement of Arbitration Awards Under New York Convention
By Troutman Pepper Locke on
A member of the U.S.-Ukraine Business Council recently predicted that a resolution issued by the Ukrainian High Commercial Court may lead to that country’s secession from the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “Convention”).
U.S. Supreme Court Rejects Expanded Judicial Review of Arbitration Awards
By Troutman Pepper Locke on
In a much anticipated decision, the U.S. Supreme Court recently held that the Federal Arbitration Act’s (“FAA”) statutory grounds for vacating and modifying arbitration awards are “exclusive,” and thus cannot be expanded, even if expressly agreed upon by the arbitrating parties.
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Reinsurer Argues that California Law Prohibits Tort Recovery for Bad Faith in the Reinsurance Context
By Troutman Pepper Locke on
On March 17, 2008, in a case pending in the United States District Court for The Central District of California, California Joint Power Insurance Authority v. Munich Reinsurance America, Inc., Case No. CV08-00956, Munich Reinsurance America, Inc. (“Munich Re America”) filed a motion to dismiss the count of the complaint filed by plaintiff California Joint Power Insurance Authority (“CJIPA”) seeking tort and punitive damages for an alleged breach of the implied covenant of good faith and fair dealing under the reinsurance agreement entered into between the parties.
Arbitration Prevails: U.S. Supreme Court Holds that Federal Arbitration Act Supersedes State Law Vesting Another Forum with Jurisdiction Over a Dispute
By Troutman Pepper Locke on
Consistent with the strong federal policy favoring the enforcement of arbitration agreements, the United States Supreme Court recently held that when parties agree to arbitrate all questions arising under a contract, the Federal Arbitration Act (“FAA”) supersedes state laws lodging primary jurisdiction in another forum.
New York Committee Rejects Proposed Increases in Insurance Fines
By Troutman Pepper Locke on
The New York Senate Finance Committee (the “Committee”) has rejected several proposals in Former Governor Eliot Spitzer’s 2008-2009 Executive Transportation, Economic Development and Environmental Conservation Budget, which would have increased various civil penalties placed on insurance agents and brokers for violations of Insurance Law and related regulations.
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