Specialty Lines

  • January 24, 2024

    BofA Fell For $2.1M Check Fraud Despite Red Flags, Suit Says

    A Kansas-based insurance exchange said Wednesday that Bank of America missed several "clear and conspicuous" indicators that a $2.1 million check purportedly submitted by its customer was actually fraudulent, instead providing the money to a medical group that illegally altered the check's address and date.

  • January 24, 2024

    Pot Insurance Suit Belongs In Federal Court, Judge Says

    A federal magistrate judge in New Mexico has recommended that a proposed class action over insurance coverage for medical cannabis not be sent back to state court, finding Wednesday that the federal court has jurisdiction to hear the suit against Blue Cross and Blue Shield and other insurers.

  • January 24, 2024

    4th Circ. Rejects Adviser's Bid To Revive Coverage Suit

    An AmTrust insurance unit wasn't required to cover an investment adviser for defamation suits under a professional liability policy issued to her former employer, a Fourth Circuit panel ruled Wednesday, saying the adviser's failure to collect certain expenses under a primary policy doesn't obligate the excess insurer.

  • January 24, 2024

    Apartment, Insurers Settle Stalled Construction Coverage Row

    A Tampa, Florida, apartment complex owner and its insurers settled their dispute in federal court over coverage for delayed construction after mediation, they said Wednesday in a joint settlement notice.

  • January 24, 2024

    Kayne Anderson Loses Coverage Bid In $22M Copyright Row

    Investment adviser Kayne Anderson lost its bid for coverage for a collective $22 million in legal expenses and settlement costs after a California appeals court agreed that a copyright dispute over unauthorized copying of an energy news publication does not fall within its policies' scope.

  • January 24, 2024

    Accused Fraudster Hurting Policyholders, NC Justices Told

    Four insurers told the North Carolina Supreme Court that a former insurance mogul facing criminal fraud charges is still running his businesses, contrary to a contract and lower court order, renewing their request for clarity on what parts of an appellate court's opinion the high court will review.

  • January 24, 2024

    Insurer Can't Duck $2M Nursing Home Judgment, Family Argues

    The insurer of a now-bankrupt Georgia nursing home can't escape its obligations to cover a $2.1 million default judgment won by the family of a woman who died in the home's care, the family has told a federal judge.

  • January 23, 2024

    Oil Co. Says Power Co. Owes $11M For Injury Defense

    An oil and gas company seeking up to $11 million in coverage from a power company for an underlying electic shock injury suit told a Wyoming federal court that the power company should've made it an additional insured on its policies, per the companies' agreement.

  • January 23, 2024

    College Wants 9th Circ. Opinion In $1.5M Fraud Coverage Spat

    A for-profit college that settled with the U.S. government after being accused of stealing money meant to fund veterans' education asked the Ninth Circuit to weigh in after a California federal court said its insurer didn't have to cover nearly $1.5 million in connected investigation defense costs.

  • January 23, 2024

    Berkshire Unit Seeks Partial Win In Senior Center Liability Suit

    A Berkshire unit is seeking a partial win against a senior care center over an underlying wrongful death suit, telling an Illinois federal court that it cannot be expected to defend the center when a self-insured retention has not been satisfied.

  • January 23, 2024

    Progressive Customers Fire Back At Proposed Dismissal

    Progressive customers in a consolidated proposed class action surrounding the exposure of nearly 350,000 users' personal data to unauthorized actors urged an Ohio federal judge to reject the insurer's dismissal bid, arguing in part that the motion couldn't get around Progressive's own admission to the leak of information.

  • January 23, 2024

    Candy Maker Wants $5M Recall Coverage Suit Tossed

    A Texas-based candy company urged a New York federal court to either toss an insurer's lawsuit seeking to avoid coverage for a nearly $5 million recall over metal fragments found in certain gummy candies or transfer the case to Texas, where the company sued its insurer.

  • January 22, 2024

    Insurer Can Proceed With $1.7M Settlement Contribution Suit

    Viad Corp. can't escape an insurer's suit seeking to recover $1.7 million of a nearly $160 million settlement with the state of Montana, a Nebraska federal court ruled Monday, finding the insurer plausibly alleged that the company could be liable under a reinsurance contract.

  • January 22, 2024

    Insurer Says Dive Shop Not Covered For Boat Propeller Injury

    Dan Risk Retention Group Inc. has asked a Florida federal court to declare that it does not have to defend a scuba dive operator in a suit filed by a diver whose arm was injured by a boat propeller during a dive.

  • January 22, 2024

    No Coverage For Facility Under Canceled Policy, Insurer Says

    An insurer told an Oklahoma federal court that an assisted living facility is not owed coverage for a suit over a resident's fall, saying the facility's commercial multiperil policy was canceled for nonpayment days before the underlying suit was filed.

  • January 22, 2024

    Southwest's 5th Circ. Win Broadens Scope Of Cyber Coverage

    Policyholders and Southwest Airlines alike notched an important win when a Fifth Circuit panel undid a ruling barring excess cyber insurance coverage for costs stemming from the airline's 2016 computer network failure, potentially expanding the scope of cyber coverage.

  • January 22, 2024

    Oil Services Co. Seeks Refinery Pollution Coverage

    A Chapter 11 liquidating trustee for the estate of a company that stored and refined crude oil in the U.S. Virgin Islands has sued the firm's pollution liability insurers in Texas bankruptcy court, requesting millions of dollars in coverage for putative class actions accusing the debtor of causing pollution damage.

  • January 22, 2024

    Lockton Can Proceed With Poaching Suit Against Rival

    A Missouri federal court has kept alive insurance brokerage Lockton's lawsuit accusing its former higher-ups of conspiring with California-based competitor Alliant in a poaching scheme, saying the competitor cannot escape a forum-selection clause that was in the former elites' contracts.

  • January 22, 2024

    Smucker's, Insurer Want $8M For Fire Smoldering Nut Sparked

    Smucker's and its insurer are seeking to recoup $8 million for fire damages at a peanut butter factory, saying a refrigerator repair technician's mistake led to an evacuation that left no personnel there to extinguish the fire, according to a suit removed Friday to Kentucky federal court.

  • January 22, 2024

    Condo To Tell 6th Circ. Insurer Must Cover Resident Suits

    A Detroit condominium association said it will urge the Sixth Circuit to reverse a Michigan federal court's ruling that its insurer does not owe it coverage for underlying suits over damaged fences, defamation and legal fees.

  • January 19, 2024

    Law360 Names Firms Of The Year

    Eight law firms have earned spots as Law360's Firms of the Year, with 55 Practice Group of the Year awards among them, steering some of the largest deals of 2023 and securing high-profile litigation wins, including at the U.S. Supreme Court.

  • January 19, 2024

    Law360 Names Practice Groups Of The Year

    Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2023, which honor the attorney teams behind litigation wins and major deals that resonated throughout the legal industry this past year.

  • January 19, 2024

    Insurer Says Colo. Policy Spat 'Intertwined' With Atty Blunders

    The primary insurer for a Colorado climbing gear company said an excess insurer's bid to get out of liability for a climber's injuries should be heard in a Washington state malpractice suit, arguing in a motion that the policy dispute is "intertwined" with lawyer misconduct in the underlying product liability case.

  • January 19, 2024

    Club Shooting Victim Seeks Toss Of Insurer's Coverage Fight

    The victim of a 2019 shooting at a South Carolina nightclub urged a federal court Friday to toss a suit brought by the club's insurer over coverage for an $18.1 million default judgment, saying any ruling regarding the carrier's coverage obligations under the policy is moot.

  • January 19, 2024

    Insurance Mogul Fights Spending Clampdown In $524M Fight

    Embattled insurance mogul Greg Lindberg has pressed a North Carolina federal court to scrap a bid by an insurer, which won a $524 million judgment against him, to stop him from spending his money, arguing that the insurer had the same financial restriction overturned in a state court.

Expert Analysis

  • Questions Following 2 Recent Cyber Insurance Developments

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    A Minnesota federal court's recent decision in Target v. ACE and guidance from the New York State Department of Financial Services have furthered confusion surrounding how insurance policy language should be applied to the unique circumstances of cyber incidents, say Huiyi Chen and David Kroeger at Jenner & Block.

  • When Mergers Create D&O Insurance Complications

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    A Delaware state court's recent decision in Northrop Grumman v. Zurich illustrates some of the pitfalls and disputes that commonly arise when companies with competing directors and officers insurance policies merge, says Sam Ballingrud at Sherman & Howard.

  • How Biden's Administration Will Affect The Insurance Industry

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    President Joe Biden's administration has signaled interest in a range of key issues — consumer protections, regulation of the cannabis industry and health care reform — that will have outsize influence on the private insurance market, say Adrian Azer and Wes Dutton at Haynes and Boone.

  • An OFAC Compliance Checklist For Ransomware Payments

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    As the U.S. government heightens its scrutiny of ransomware payments, victims that pay extortion demands can follow 12 steps to help establish the requisite mitigation and due diligence to avoid penalties from the U.S. Department of the Treasury's Office of Foreign Assets Control, says cybersecurity consultant John Reed Stark.

  • Cybersecurity Event-Driven Securities Litigation Has Arrived

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    A recent shareholder lawsuit against First American Title Insurance Co. highlights that securities litigation prompted by regulatory actions may become increasingly prevalent in the cybersecurity context, say attorneys at Pasich.

  • Limiting The Severity Of Deficient Securities Fraud Claims

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    The U.S. Supreme Court's evidentiary requirements of price impact at the class certification stage — established in its Halliburton II decision in 2014 — provide an effective solution to disqualify securities fraud claims with price impact deficiencies, say Nessim Mezrahi and Stephen Sigrist at SAR.

  • The Most-Read Securities Law360 Guests Of 2020

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    The most-read securities articles written by Law360 guest experts in 2020 centered around market volatility triggered by COVID-19; remote testimony considerations as courtroom proceedings moved online; and risk and compliance issues related to the Coronavirus Aid, Relief and Economic Security Act.

  • A Look At Contrasting Rules For Excess Insurance Policies

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    Though the Delaware Superior Court held in Pfizer v. U.S. Specialty Insurance that claims settlements exceeding primary policy limits trigger excess insurance, policyholders should continue to pay close attention to exhaustion clause language due to competing court rules nationwide, say Brian Scarbrough and Deepthika Appuhamy at Jenner & Block.

  • Del. Solera D&O Decision May Have Limited Impact

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    While the Delaware Supreme Court's recent decision in Solera is a blow for companies in the state seeking protection for certain key appraisal proceedings, the ruling hinges on the insurers' narrow definition of a violation that will trigger directors and officers coverage for securities-related claims, making it unlikely that other jurisdictions will follow suit, say attorneys at Hunton.

  • Treasury Stance On Ransomware Payment Could Hurt Targets

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    Recent statements from two U.S. Department of the Treasury offices indicate that paying off ransomware with cryptocurrency may trigger certain registration requirements and U.S. sanctions scrutiny, placing a significant regulatory burden on cybervictims and their incident response consultants, say attorneys at McDermott.

  • OFAC Cyber Ransom Guidance Has Insurance Implications

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    A new advisory from the U.S. Department of the Treasury's Office of Foreign Assets Control will likely cause delay in insurance coverage determinations for ransom payments, but there are steps policyholders can take to secure coverage for restoration costs when a ransom is not paid, say attorneys at Hunton.

  • How To Navigate A Hardening D&O Insurance Market

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    The directors and officers liability insurance market's shift toward favoring sellers, coupled with the potential surge of lawsuits against companies as a result of COVID-19's economic impact, increases the importance of mitigating risks by reexamining existing D&O coverage, say attorneys at Jenner & Block.

  • When Do Insureds' Legal Fees Constitute Defense Expenses?

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    An Oklahoma federal court's surprising decision in Turner v. XL Specialty Insurance — now on appeal before the Tenth Circuit — found that a named defendant's legal costs did not qualify as defense expenses, highlighting ambiguities in how "defense" is defined for insurance purposes, say David Kroeger and Catherine Doyle at Jenner & Block.