On 7 January 2008 the European Commission made public a report it had commissioned on Insurance Guarantee Schemes (IGS) in the European Union. IGSs provide last-resort protection for policyholders in situations where insurers are unable to provide cover, usually due to their insolvency. They are commonly financed from levies on the insurance industry.
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UK: Companies Act 2006: ICSA Guidance on Directors’ Duties
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Companies Act 2006 (2006 Act) codifies into statute the general duties owed by directors to the company (although not to the exclusion of the previous common law duties and equitable principles). There are both civil consequences for directors who act in breach of the duties and criminal sanctions for breaching the duty to declare an interest in existing transactions or arrangements.
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The English and Scottish Law Commissions Have Published Their Latest Paper on Insurance Contract Law Reform
By Troutman Pepper Locke on
The English and Scottish Law Commissions are currently engaged in a wide ranging review of insurance contract law. Since September 2006 they have published a series of Issues Papers and one formal Consultation Paper setting out their proposals for reform to the law of misrepresentation, non-disclosure, warranties and agency in the context of pre-contract information. …
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Illinois Issues a Consumer Alert Regarding Stranger/ Investor Originated Life Insurance
By Troutman Pepper Locke on
On January 10, 2008, the Illinois Division of Insurance (“DOI”) issued a consumer alert advising caution with respect to “Stranger/ Investor Originated Life Insurance” (“STOLI”) arrangements. …
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Aggressive New Proposed Regulation for the Security of Personal Information
With potential implications for anyone doing business with a Massachusetts resident, the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) held a public hearing today concerning the proposed regulation 201 Mass. Code Regs. 17.00, the new Standards for the Protection of Personal Information of Residents of the Commonwealth.
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Brocade Stock Options Backdating Criminal Trial: Reyes’ Motion For New Trial Denied
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On January 9, 2008, U.S. District Judge Charles Breyer denied ex-Brocade CEO Greg Reyes’ motion for a hearing or a new trial based on the allegedly false testimony of a witness at trial. As previously reported (see here), Reyes was convicted of securities fraud on August 7, 2007 for failing to properly account for backdated stock options.
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Ex-Waste Management CFO Ordered to Pay $4 Million in Connection with Accounting Fraud
By Troutman Pepper Locke on
On January 3, 2008, the U.S. District Court for the Northern District of Illinois ordered Waste Management Inc.’s former CFO to pay more than $4 million to the Securities and Exchange Commission (“SEC”) in civil penalties and disgorgement.
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Ohio’s Highest Court Upholds Constitutionality of Statutory Cap on Pain and Suffering Damages
By Troutman Pepper Locke on
Posted in Product Liability, United States
On December 27, 2007, the Ohio Supreme Court voted 5 to 2 to uphold the constitutionality of the state’s statutory cap on pain and suffering damages in personal injury lawsuits.
Louisiana Federal Court Orders State Farm to Pay Its Insureds’ Legal Fees in Bad Faith Katrina-Related Coverage Litigation
By Troutman Pepper Locke on
While there have been several pre-trial rulings from Louisiana federal courts on Katrina-related insurance coverage issues, the first such trial in Louisiana federal court took place recently. On November 7, 2007, a jury in the Eastern District of Louisiana awarded $365,000 to Michael and Judy Kodrin from their homeowners’ insurer, State Farm Fire Insurance Company.
Ohio Court of Appeals: Consideration of Extrinsic Evidence is Proper in Determining Meaning of Policy Wording As to Aggregate Limits Where Portions of the Policy at Issue are Missing
By Troutman Pepper Locke on
The Ohio state Court of Appeals recently determined that where portions of insurance policies at the center of a dispute were missing, the lower court’s consideration of extrinsic evidence in determining the meaning behind ambiguous policy wording was proper.