Coverage & Claims

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On September 28, 2007, a jury in an action venued in the United States District Court, Southern District of Mississippi, found that certain damage to the home of Kevin and Sherrye Webster was caused by wind, wind-blown debris and/or wind-driven rain, which were all covered perils under the Websters’ homeowners’ policy. 

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Read More Wind Loss Liability Verdict Leads To Settlement Of Katrina Suit Before Damages Phase

A California appellate court recently ruled that propulsion manufacturer Aerojet’s payment of approximately $175 million to settle regulatory enforcement actions over liability for groundwater contamination cannot be recovered under certain excess policies absent a final adjudication of liability. 

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Read More Under Certain Policy Language, Settlement Payments Not Recoverable Absent Adjudication in California

The United States District Court for the Southern District of New York recently broadly applied a so-called “prior and pending litigation” exclusion to limit coverage for the settlement of a lawsuit, finding that many of the lawsuit’s allegations overlapped with allegations made in a lawsuit filed prior to the inception of the policy. 

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Read More SDNY Applies “Prior And Pending Litigation” Exclusion To Limit Coverage Under D&O Policy

Recently, the United States District Court for the District of Nevada vacated an arbitration panel’s award that consisted of, among other things, punitive damages, finding that the award was in manifest disregard of the law and outside the scope of the panel’s jurisdiction. 

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Read More Nevada Court Vacates Arbitrator’s Award of Punitive, Other Damages

The United States Supreme Court heard oral argument yesterday in a case that presents the Court with the opportunity to broaden the class of potential defendants in private securities class actions, which would substantially increase litigation exposure for corporate America.  The questions and comments of the Justices suggest that the majority of the Court is not prepared to alter the current securities class action landscape. 

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Read More Stoneridge v. Scientific-Atlanta: Supreme Court Indicates It Will Not Broaden Secondary Actor Liability In Securities Class Actions

Massachusetts Attorney General Martha Coakley announced on Friday that her office has filed a lawsuit against one of the nation’s largest subprime lenders, Fremont Investment and Loan (“Fremont”).  The suit accuses Fremont of predatory lending practices under Massachusetts’ 2004 Predatory Home Practices Act. 

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Read More Massachusetts Attorney General Files Suit Against National Mortgage Lender Over Subprime Mortgages

Judge Stanwood R. Duval, Jr. of the United States district court of Lousisa federal district court sitting in Louisiana recently held that two homeowners could jointly file an amended complaint and proceed with their proposed class action lawsuit against State Farm Fire and Casualty Company and software company Xactware. 

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Read More Potential Class Action against State Farm and Its Claims Adjusting Software Company

The Fall 2007 Edition of the EAP&D Corporate Law and Litigation Bulletin has recently been released and is available here.  The Bulletin contains discussion of the following developments: 

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Read More EAP&D Corporate Law And Litigation Bulletin Addresses Recent Statutory And Caselaw Developments In Delaware Corporate Law

In a decision dated, September 27, 2007, the Hon. Bernard J. Fried, Commercial Division Justice of the New York Supreme Court for the County of New York, granted in part and denied in part Akin Gump Strauss Hauer & Feld LLP’s motion to dismiss a lawsuit filed by the Veras hedge fund families (“Veras Hedge Funds”) in the case captioned Veras Investment Partners, LLC, et al.  v. Akin Gump Strauss Hauer & Feld LLP, Index No. 600340/2007. 

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Read More New York Supreme Court Commercial Division Allows Fraud Claim Against Law Firm That Advised Hedge Fund On Market Timing Trading Which Resulted In Regulatory Investigation

The United States Court of Appeals for the First Circuit recently held that, where a design is beyond the common experience or knowledge of the average layperson, a defective or negligent design case cannot succeed unless the plaintiff presents evidence “as to the relevant standard of care for the design and the way(s) in which the defendant’s design fell below that standard.” 

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Read More First Circuit: Under Puerto Rico Law, A Plaintiff Must Ordinarily Introduce Expert Testimony Concerning Standard Of Care To Prevail On Defective Or Negligent Design Claim