Coverage & Claims

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In Versloot Dredging v HDI [2013] EWHC 1666, Popplewell J has criticised the Privy Council decision in Stemson v AMP [2006] UKPC 30 and the Court of Appeal decision in Agapitos v Agnew [2003] QB 556 concerning the circumstances in which the Court should reject a policyholder’s claim that is supported by a fraudulent device.
Read More UK: Approach to Fraudulent Devices Criticised

In Certain Underwriters at Lloyd’s London v. Southern National Gas Co. (Ala. June 18, 2013), the Alabama Supreme Court upheld a jury verdict finding that the leaking of PCB from 8 different locations was one “occurrence.” Sonat (short for Southern National Gas Co.) had 38 air compressers to push natural gas through Sonat’s 14,000 miles of pipeline spanning seven southeastern states. …
Read More The Alabama Supreme Court Affirms Aggregating Toxic Spills into One Occurrence, As They Were the Policyholder’s Routine Practice for Fifteen Years

On June 26, 2013, the Appeals Court of Massachusetts determined that an automobile exclusion in a commercial general liability insurance policy precludes coverage for claims against an insured for alleged negligent supervision of an intoxicated employee, even where the policy at issue contains a “severability of interests” clause. …
Read More Massachusetts Appeals Court: Automobile Exclusion in CGL Policy Precludes Coverage for Negligent Supervision Claims

In mid-June, eight former fund directors of Morgan Keenan & Co. settled allegations with the Securities and Exchange Commission that they had failed to exercise proper oversight with respect to mutual funds that had overvalued mortgage-backed securities during the 2007-08 housing market collapse. The settlement comes two years after Morgan Keenan agreed to pay $200 million to settle similar SEC claims against the firm itself and two employees who managed the funds. …
Read More Morgan Keenan Settlement Shows Risk to Mutual Fund Directors When Valuing Mortgage-Backed Securities

There has been a sharp uptick in the frequency of merger objection lawsuits in the past several years. These suits are now brought after virtually every major deal is announced. …
Read More COMPLIMENTARY WEBINAR – Fundamentals Of, and Insurance Coverage For, Merger Objection Suits: The Basics – July 17, 2013

The Supreme Court’s 5-4 ruling in Mutual Pharmaceutical Co. v. Bartlett, ___ U.S. ____ (June 24, 2013), offers welcome clarity to generic drug manufacturers: reaffirming that state tort claims against those manufacturers are preempted by the Hatch-Waxman Amendments to the Food, Drug and Cosmetic Act (“FDCA”), and by the Court’s landmark decision in Pliva v. Mensing, 113 S.Ct. 2567 (2011). …
Read More Mutual Pharmaceutical v. Bartlett: The Supreme Court Reaffirms Preemption of State-Law Claims Against Generic Drug Manufacturers

The Second Circuit recently affirmed a lower court decision holding that an insurance policy exclusion barred coverage for claims against a construction company relating to a March 2008 crane collapse in Manhattan. A copy of the decision can be found here. …
Read More Second Circuit Affirms Application of Policy Exclusion in Crane Collapse Coverage Case

In an opinion adjudicating the insurability of claims brought under the federal Telephone Consumer Protection Act (“TCPA”), the Illinois Supreme Court recently ruled that public policy did not prohibit coverage of these claims. The decision is Standard Mutual Insurance Co. v. Lay, No. 114616 (Ill. May 23, 2013), and a copy of it is available here. …
Read More The Illinois Supreme Court Rules that the Telephone Consumer Protection Act’s Statutory Damages Are Not Punitive