Coverage & Claims

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The Ninth Circuit Court of Appeals has ruled that two separate class-action lawsuits, filed during different policy periods by different plaintiffs in different forums (as well as under two different legal theories), are Interrelated Wrongful Acts and subject to one policy limit. 

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Read More Ninth Circuit Finds Two Class-Actions Are Interrelated Wrongful Acts

In a recent decision, Florida’s First District Court of Appeal enforced an express New York choice of law/forum selection provision in an environmental liability policy insuring a gas station located in Florida. …
Read More Environmental Claims – Florida Appellate Court Enforces New York Forum Selection Clause in Petroleum Discharge Case

Although there has been a recent slowdown in D&O claims, it appears that D&O insurers may soon be hit with a new wave of claims arising out of the subprime lending crisis.  To date, twelve securities class actions have been filed against mortgage lenders. 

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Read More Subprime Lending Crisis Could Impact D&O Insurers

Last week, Bear Stearns & Co. announced that it has hired a law firm to investigate losses incurred by two of its hedge funds.  The hedge funds were forced into bankruptcy after losing significant amounts of money from investments in the subprime mortgage market.  The stock market is currently reeling over credit problems stemming from the collapse of the sub-prime mortgage industry. 

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Read More Bear Stearns Hires Law Firm To Investigate Ailing Hedge Fund Investments While Goldman Sachs Hedge Fund Receives $3 Billion Bailout

A Massachusetts trial court recently ruled on a number of issues concerning an insurer’s duties where it agrees to defend an insured under a reservation of rights, including:  (1) an insurer’s duty to defend an affiliated company that owns all of the insured’s shares when only the affiliated company and not the insured is named as a defendant in the lawsuit; (2) an insurer’s duty to pay defense costs for legal work that benefits both the insured and non-insured entities working together as part of a joint defense agreement; (3) an insurer’s duty to pay defense costs for both national and local counsel retained by an insured; and (4) the reasonableness of legal fees incurred when the defense is provided under a reservation of rights. 

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Read More Massachusetts Court Weighs In On Duty To Defend Issues

In a recent decision, a Florida appellate court found that an insured was not entitled to statutory legal fees against its insurer where the insurer defended the insured under a reservation of rights before bringing a declaratory judgment action concerning coverage. 

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Read More Statutory Attorneys Fees Under Florida’s Insurance Code

The Federal District Court for the Eastern District of Louisiana recently held that state failure-to-warn claims are not preempted by the labeling requirements of the Food and Drug Administration. 

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Read More Federal District Court Rules That FDA Regulations Do Not Preempt State Law Claims, Allows State Failure To Warn Claims Against Pharmaceutical Company To Proceed