As we recently reported, Dickie Scruggs, along with his son and other colleagues, were recently indicted on charges in a judicial bribery case. Despite some media reports of Scruggs’ initial reluctance to withdraw from the representation of hundreds of policyholder clients in pending Katrina-related coverage lawsuits, Scruggs and his law firm have withdrawn their representation in these suits.
California Federal Court: Second Insurer With Interest In Outcome Of Coverage Litigation Has Right To Intervene
By Troutman Pepper Locke on
The U.S. District Court for the Northern District of California recently granted an insurer’s motion to intervene in an indemnity dispute between another insurer and an asbestos product supplier. …
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New York To Create New Workers’ Compensation Medical Treatment Regulations
By Troutman Pepper Locke on
New York Superintendent of Insurance Eric R. Dinallo has asked the State’s Workers’ Compensation Board to create new regulations for workers’ compensation medical treatment using recently issued evidence-based guidelines. The goal is to establish a system in New York, like in some other states, whereby individuals with the same condition receive the same form of treatment.
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Second Brocade Executive Convicted in Backdating Prosecution
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On December 5, 2007, following a 5 1/2 day trial in the U.S. District Court for the Northern District of California, a jury convicted Brocade’s former head of human resources, Stephanie Jensen, of falsifying corporate records and conspiracy.
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New York Trial Court Dismisses Coverage Claim As Time-Barred By Policy
By Troutman Pepper Locke on
A New York state trial court recently held that an insured’s breach of contract action was time-barred because he failed to commence suit within two years of the dates of loss, as required by the policy.
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Spitzer, NYLB Announce Proposed Resolution of Projected Shortfall in Executive Life Insurance Company of New York Rehabilitation
Executive Life Insurance Company of New York (ELNY) was placed into rehabilitation in 1991 after affiliated companies became insolvent and concerns about its future solvency arose. The rehabilitation plan adopted in 1992 involved the transfer of much of ELNY’s business to another carrier; however, ELNY in rehabilitation retained substantial assets and continued payment on certain annuities, with the bulk of the payout going to structured settlement annuitants that had received long-term and/or lifetime annuities as settlements in personal injury lawsuits.
Update: Supreme Court Hears Arguments in FDA Preemption Case
By Troutman Pepper Locke on
Posted in Product Liability, United States
On Tuesday, December 4, the U.S. Supreme Court heard oral arguments in Riegel v. Medtronic, Inc. The case is an appeal of the Second Circuit’s decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices pre-empts state law causes of action for injuries allegedly caused by those devices. The Circuit Courts are currently split on the question.
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New York Lawmakers Request Inclusion of “Reset” Provision in any TRIA Extension
With Congress scrambling to pass legislation extending the Federal Terrorism Risk Insurance Program before its expiration at the end of the month, New York lawmakers requested yesterday that any final extension act include a “reset” provision. Such a provision would lower the trigger levels for federal reimbursements under the TRIA program in areas already hit by a terrorist attack. …
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Illinois Medical Malpractice Cap Ruled Unconstitutional
By Troutman Pepper Locke on
An Illinois judge recently struck down the two-year-old state law that capped medical malpractice awards, ruling that the law violates the Illinois constitution’s “separation of powers” clause by depriving judges and juries of their right to determine fair compensation. …
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Texas Supreme Court: Pro Rata “Other Insurance” Clauses Preclude Equal Contribution Among Co-Primary Insurers
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
On a question certified by the Fifth Circuit Court of Appeals, the Texas Supreme Court recently ruled that “[t]here is no direct duty of reimbursement between co-primary insurers.” …
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