As you may know, many of the major bond insurance firms in the municipal bond market have either seen their ratings down-graded or placed on negative credit watch or outlook by the leading municipal credit rating services (Moody’s Investors Service, Inc., Standard & Poor’s and Fitch Ratings). These changes have stemmed largely from the insurers’ exposure to investment vehicles tied to subprime mortgage loans.
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Current Issues in D&O and E&O Coverage Investigations: S.D.N.Y. Holds that Credit Suisse Waived Work Product Privilege by Disclosing Internal Investigation Memoranda to the Government
By Troutman Pepper Locke on
If outside counsel for a company drafts factual memoranda concerning an internal investigation conducted in response to alleged wrongdoing, and then voluntarily shares the memoranda at the company’s direction with government investigators, has the company waived the work product privilege? According to a recent decision from a federal district court in New York, the answer is yes.
NY Court of Appeals Introduces Derivative Liability Exposure to LLC Managers
By Troutman Pepper Locke on
On February 14, 2008, a divided New York Court of Appeals held that a member of a New York limited liability corporation (often referred to simply as a “LLC”) could bring a derivative lawsuit on behalf of the LLC against the entity’s managers. …
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Proposed Captive Tax Deduction Rule Withdrawn by IRS
By Troutman Pepper Locke on
The Internal Revenue Service announced on February 20, 2008 that it is withdrawing the proposed IRS Regulation §1.1502-13(e)(2)(ii)(C). The withdrawn regulation would have disallowed as a current deduction for federal income tax purposes any premium payments to an affiliate captive insurer if the captive received as little as 5% of its total premiums from affiliates on the same consolidated tax return. …
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UK High Court Dismisses Application to Set Aside Order in Favour of Monegasque Reinsurer Enforcing New York Convention Arbitration Award
By Troutman Pepper Locke on
In Gater Assets Ltd v Nak Naftogaz Ukrainiy [2008] EWHC 237 (Comm), the applicant company, Nak Naftogaz Ukrainiy (NNU), applied to set aside an order permitting Gater Assets Ltd (Gater) to enforce as a judgment a New York Convention arbitration award issued by the International Commercial Arbitration Court of Moscow.
Update: Supreme Court Rules That FDA Pre-Market Approval Preempts State Law Torts
By Troutman Pepper Locke on
Posted in Product Liability, United States
Last week, the Supreme Court upheld a Second Circuit decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices preempts state law causes of action for injuries allegedly caused by those devices. …
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Second Circuit Rules Bankruptcy Court Cannot Enjoin All Claims Against Insurer
By Troutman Pepper Locke on
In an important recent decision of the United States Court of Appeals for the Second Circuit, testing the outer reaches of a bankruptcy court’s jurisdiction, In re Johns Manville Corp., 06-2099 (2d Cir. Feb. 15, 2008), the court considered whether claims that are not derivative of a debtor’s liability, but rather seek to recover directly from an insurer for its own alleged misconduct, can be enjoined by the “channeling” mechanism developed by the bankruptcy court.
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EU: CEIOPS Releases Two Solvency II Consultation Papers
By Troutman Pepper Locke on
As reported here – CEIOPS Meeting Discusses Draft Advice to European Commission on Key Solvency II Issues], the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has now released it’s Consultation Papers of Draft Advice on Aspects of the Framework Directive Proposal related to Proportionality and on Insurance Groups. …
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NAIC Producer Licensing Assessment
By Troutman Pepper Locke on
Posted in Regulatory, United States
The National Association of Insurance Commissioners (NAIC) issued a press release last week announcing completion of its membership-wide producer licensing assessment. This assessment, conducted by a group of volunteer regulators, examined and verified compliance with the NAIC’s 2002 reciprocity standards, state adoption of the Producer Licensing Model Act, and adoption of the Uniform Resident Licensing Standards.
Federal Court Denies Reinsurer’s Motion to Enforce Confidentiality Order, Vacate Arbitration Award
By Troutman Pepper Locke on
Recently, in Nationwide Mutual Ins. Co. v. Randall & Quilter Reinsurance Co., No. C2-07-120 (S.D. Ohio, Jan. 24, 2008), the U.S. District Court for the Southern District of Ohio examined the scope of a court’s authority to confirm arbitration awards and orders under Section 9 of the Federal Arbitration Act (“FAA”).