The first shareholder action to surface in the wake of the momentous sale of Bear Sterns & Co. Inc. to J.P. Morgan Chase & Co. was filed yesterday in the U.S. District Court for the Southern District of New York.  The complaint names as defendants Bear Stearns and certain of its officers and directors, and charges them with violations of the Securities Exchange Act of 1934. 

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Read More Bear Stearns Sale Sparks First Shareholder Action

On March 7, 2008 the Internal Revenue Service (“IRS”) issued Revenue Ruling 2008-15 which clarifies the U.S. tax consequences when a foreign insurer enters into a reinsurance agreement with another foreign insurer. 

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Read More IRS Launches Voluntary Compliance FET Initiative for Certain Foreign Insurers

Brit Syndicates Ltd v Grant Thornton International UKHL 18 concerned an appeal by the insured, GTI, against a Court of Appeal decision in favour of its insurers. …
Read More The UK House of Lords has overturned a Court of Appeal decision as to whether the avoidance of a composite policy in respect of one party negates another party’s cover

As we have reported previously, the English and Scottish Law Commissions are currently undertaking a wide ranging review of insurance contract law. 

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Read More British Insurance Law Association hosts lecture on insurance contract law reform

The issue in Michael Wilson Partners Ltd v John Forster Emmott [2008] EWCA Civ 184 was whether Mr Justice Flaux, at first instance, had acted correctly in authorising the disclosure, for the purposes of proceedings in New South Wales and the British Virgin Islands, of documents generated in an English arbitration. …
Read More The English Court of Appeal considers the confidentiality of documents disclosed in an arbitration

Fitch Ratings has updated its ratings criteria for catastrophe bonds, that is to say structured financings where payments to investors are exposed to the risk of catastrophic events such as earthquakes, hurricanes and fires. 

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Read More Fitch Ratings updates its ratings criteria for Catastrophe Bonds

On 12 March, the UK Chancellor of the Exchequer, Alistair Darling, delivered the Government’s 2008 Budget Report, which acknowledged the susceptibility of the UK economy to the unfolding financial credit crisis. The Report noted that the world economy was facing a more challenging environment than was apparent in 2007, with continued disruption in global financial markets, which had caused the downgrading of the UK economy growth forecast for 2009 from 2.5 – 3% to 2.25 – 2.75%. …
Read More UK 2008 Budget Report

The Missouri Court of Appeals recently affirmed an $8 million punitive damages award against an insurer in a breach of contract, malicious prosecution, and punitive damages action arising from a denied automobile insurance claim valued at $10,300. 

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Read More Missouri Court of Appeals Upholds $8 Million Punitive Damages Award Against Insurer In Case Arising From $10,300 Auto Claim

The Claimant in Kosmar Villa Holidays plc v Trustees of Syndicate 1243 [2008] EWCA Civ 147 was a tour operator who had a public liability policy with the Defendant’s predecessor, Euclidian Direct Limited (Euclidian). …
Read More English Court of Appeal Considers the Effect of a Notice Clause in a Public Liability Policy

A Massachusetts trial court recently held that an insurer must pay the attorneys’ fees incurred by its insured in the successful defense of a duty to defend declaratory coverage action brought by the insurer. …
Read More Gamache Exception Extended: Massachusetts Trial Court Orders Insurer To Pay Insured’s Attorneys’ Fees In Unsuccessful Duty to Defend Declaratory Judgment Action