Boeing Company has announced in its recent 10-K filing (9 February 2009) that it has prevailed in an arbitration brought by insurers in respect of a defective model 702 satellite. Insurers of Thuraya Satellite Telecommunications (Thuraya) commenced arbitration in 2004 alleging that Boeing Satellite Systems International, Inc. (BSSI) breached its contract with Thuraya for the sale of a satellite that experienced power loss issues.
Coverage & Claims
U.S. Court of Appeals for the Second Circuit Finds that Insured Cannot Assert a Direct Action Against its Reinsurer
By Troutman Pepper Locke on
Plaintiff Jurupa Valley Spectrum, LLC (“Jurupa”) is a beneficiary of certain surety bonds issued by Frontier Insurance Company, which were reinsured by National Indemnity Company (“NICO”). See Jurupa Valley Spectrum, LLC v. National Indemnity Co. and National Liability & Fire Ins. Co., No. 07-cv-3211 (2d Cir. Feb. 4, 2009).
UK: When can a claimant receive security for its costs?
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
In the case of Nicholas G Jones v (1) Environcom Limited and (2) Environcom England Limited [2009] EWHC 16 the Commercial Court was asked to determine, as a preliminary issue, whether a claimant insurer could be granted an application for security of its costs.
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New York Court Rules That Intentional Acts Exclusion Does Not Bar Coverage Under Homeowner’s Policy For Insured’s Liability Arising From “Bear Hug”
By Troutman Pepper Locke on
In Clayburn v. Nationwide Mut. Fire Ins. Co., 10 A.D.3d 778 (N.Y. App. Div. 3d Dept Jan. 15, 2009), a New York appellate court affirmed summary judgment in favor of the insured finding that the intentional acts exclusions in its homeowner’s policy did not bar coverage for personal injuries resulting from the insured’s bear hug of another person. In that case, the insured engaged the underlying claimant in a bear hug after the claimant had pushed the insured’s brother to the ground. …
Read More New York Court Rules That Intentional Acts Exclusion Does Not Bar Coverage Under Homeowner’s Policy For Insured’s Liability Arising From “Bear Hug”
Bratz Doll Maker Sues CGL Insurer Demanding Coverage for Defense of Lawsuit By Mattel Based on Trade Disparagement Claim
By Troutman Pepper Locke on
The maker of the Bratz line of dolls and toys recently filed suit against its commercial general liability insurer in the Central District of California alleging wrongful refusal to defend it in a lawsuit by Mattel.
UK: Best Practice Guide for Claims Handling Launched
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
On 29 January 2009, after two years of market consultation, the Association of Insurance and Risk Managers (AIRMIC) published a long-awaited best practice guide for claims handling. Arguing that good service within the claims handling process is crucial for the reputation of the insurer, this guide seeks to be both a tool for insurance buyers and also a reference point for insurers through the claims handling process. …
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UK: Court of Appeal Signals Cooperation with SEC to Combat Investment Fraud
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
The English Court of Appeal has shown its readiness to cooperate with foreign regulators – in this case, the US Securities and Exchange Commission – by agreeing to freeze allegedly suspect assets. …
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Merck Reports Dispute With Insurers Over Coverage of Vioxx Claims
By Troutman Pepper Locke on
According to its recent Form 10-Q SEC filing, Merck’s insurance coverage will not suffice to fully cover the November 2007 settlement reached in connection with the federal Vioxx class action litigation, reported to be for an “aggregate amount of $4.85 billion” for qualifying domestic claims (a figure that does not include legal defense costs). …
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Third Circuit Vastly Reduces Punitive Damages Award Against Insurer, Applies 1:1 Ratio
By Troutman Pepper Locke on
Recently the Third Circuit Court of Appeals reduced an award of punitive damages by over two-thirds, holding that a 1:1 ratio between punitives and compensatory damages is the appropriate limit where the harm is purely economic and the compensatory damages award is substantial. Jurinko v. Medical Protective Co., Nos. 06-3519 & 06-3666 (3rd Cir., December 24, 2008). The court reduced the award from $6.25 million to just under $2 million. …
Read More Third Circuit Vastly Reduces Punitive Damages Award Against Insurer, Applies 1:1 Ratio
UK: High Court Suggests That a Retrospective Success Fee in a Retrospective Conditional Fee Agreement May Not be Contrary to Public Policy
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
Birmingham City Council v Rose Forde [2009] EWHC 12 (QB) concerned an appeal arising from the judgment of a Costs Judge regarding two conditional fee agreements used to fund litigation between Birmingham City Council (the Council) and Rose Forde, a Council tenant.