New York Developments

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In a recent decision by the United States District Court for the Southern District of New York, the court held that, despite the confidential nature of arbitration proceedings, a party seeking to confirm an arbitration award in court must establish some justifiable reason as to why the award and any documents filed in conjunction with the petition to confirm should remain confidential in order to overcome the strong presumption against sealing judicial records and prevent public access. 

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Read More New York Federal Court Finds That Arbitration Awards Should Not Be Sealed

The legislation listed below is under consideration for inclusion on a future Assembly Insurance Committee agenda. In order to gather input on these bills, all interested parties are invited to offer comments in support or opposition to the bills listed below. Suggestions for proposed language changes are also welcome at this time. 

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Read More Requests for Comments on Proposed Legislation from New York State Assembly Committee on Insurance

In a March 3, 2008 decision, the U.S. District Court for the Southern District of New York granted a motion to dismiss for improper venue.  See Aguas Lenders Recovery Group, LLC v. Suez S.A., Sociedad General De Aguas De Barcelona, S.A., and Agua y Saneamientos Argentinos S.A., Case No. 06 Civ. 7873 (RLC).    The Court noted that the plaintiff could not hold defendant liable for forum waivers, where defendant was not a party to the relevant agreements and did not even exist when the agreements were created. …
Read More Non-Signatory To Agreement Containing Forum Waiver Clause Cannot Be Held Liable For Forum Waiver

For our readers who are interested in the specific allegations contained in the recent shareholder class action complaint against Bear Stearns arising from the JPMorgan buyout, a copy is attached here.The suit, entitled Eastside Holdings, Inc. v. Bear Stearns Cos. Inc. et al., No. 08-CV-2793 (S.D.N.Y. Mar. 17,

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Read More Interested In Reading The Bear Stearns Shareholder Class Action Complaint? See Attached…

Earlier this month, shareholders filed a securities class action against Blackstone Group L.P. (“Blackstone”), its CEO and its CFO over their alleged failure to warn investors that some of the investments managed by Blackstone were performing poorly and that Blackstone was at risk of having to pay back some of its performance fees. 

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Read More Shareholders Sue Blackstone Over FGIC and Other Poorly Performing Investments

The New York State Insurance Department has issued a legal opinion in response to an anonymous inquiry regarding whether automobile collision repair facilities are permitted to pay part or all of an insured’s deductible.  The opinion states that such a payment does not constitute a rebate, which the N.Y. Ins. Law § 2324 prohibits, and therefore is permissible. …
Read More New York Auto Repair Shops Permitted To Fix More Than Just Autos

In the latest development arising from recent concerns regarding auction rate securities, the New York Attorney General has reportedly launched a wide-ranging criminal investigation by serving subpoenas on 18 firms, including UBS AG, Citigroup, Inc., Merrill Lynch & Co., J.P. Morgan Chase & Co. and Goldman Sachs Group, Inc. …
Read More Auction Rate Securities Update: New York Attorney General Issues Subpoenas To 18 Firms

New York Superintendent of Insurance, Eric Dinallo, recently revealed that the New York State Insurance Department is working “avidly” to alleviate the capital crisis at bond insurer FGIC.  FGIC was the subject of ratings downgrades by both Fitch Ratings and S&P earlier this year. …
Read More Dinallo: NY is Working “Avidly” to Solve the Crisis at FGIC