Recent Publications


New York Insurance Coverage Update
May 1, 2014 | Insurance Coverage

Appellate Court Affirms Order Requiring Insurers To Produce Investigation Documents Created Before They Denied Coverage

After a steam turbine power generator at Ravenswood Generating Station in Queens, New York, shook violently and was shut down, the operator notified its insurers of the loss. The insurers hired insurance adjusters and attorneys to assist in the investigation and

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Deducting Balances Due on Company-Guaranteed Credit Cards from Employees’ Final Paychecks Did Not Violate FLSA, Circuit Court Rules
April 30, 2014 | Labor & Employment | Insurance Coverage | Appeals

The plaintiffs in this case sued their former employer, Costco Wholesale Corporation, under the federal Fair Labor Standards Act (FLSA) and the California Labor Code, alleging that Costco improperly had withheld wages from their final paychecks to repay the undisputed outstanding balances due on their company-guaranteed credit cards.

After a bench trial in which the

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Hacking Discovered, Losses Not Covered
April 30, 2014 | Insurance Coverage

Please click the link below to view “Hacking Discovered, Losses Not Covered.” Adobe Reader is required to view the bulletin. If Adobe Reader is not installed on your PC, click here to download and install.

Hacking Discovered, Losses Not Covered

Copyright © 2014 by A.M. Best Company, Inc.  Reprinted with permission.  All rights reserved.

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South Dakota Supreme Court Upholds Enforceability of Continuing Injury Exclusion
April 30, 2014 | Insurance Coverage

The South Dakota Supreme Court has upheld the enforceability of an exclusion in a commercial general liability (“CGL”) insurance policy barring coverage for an unknown progressive or continuous injury or damage that occurred before the inception date of a successor insurance policy.

The Case

Steven Thomas & Sons, LLC, was hired in 2002 by Swift

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Cost-Advancement Order Issued in DJ Action Is Appealable, First Circuit Holds
April 30, 2014 | Insurance Coverage

The U.S. Court of Appeals for the First Circuit has ruled that an insurance carrier may appeal an order issued in a declaratory judgment action requiring that it advance defense costs to its insureds.

The Case

After Westernbank of Puerto Rico was closed and the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver, the FDIC

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Four Siblings’ Claims Against One Financial Advisor Were “Interrelated,” Circuit Finds
April 30, 2014 | Insurance Coverage

The U.S. Court of Appeals for the Eighth Circuit has ruled that claims brought by four siblings against a single financial advisor were “interrelated wrongful acts” and not separate claims for purposes of the advisor’s professional liability insurance policy.

The Case

After each of four siblings – all members of the Shakopee Mdewakanton Sioux Community

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Eleventh Circuit: Exclusion Bars Coverage for Junk Fax Suit
April 30, 2014 | Insurance Coverage

The U.S. Court of Appeals for the Eleventh Circuit has ruled that an exclusion in a commercial general liability insurance policy for violations of any statute that addresses transmitting any material or information (the “Exclusion”) barred coverage of a “junk fax” lawsuit against the insured for allegedly violating the federal Telephone Consumer Protection Act (the

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Class Action Relates Back to Earlier-Filed Suit, Florida Appeals Court Decides
April 30, 2014 | Insurance Coverage

A Florida appellate court has ruled that a class action filed against an insured mortgage broker after the expiration of its claims-made professional liability insurance policy related back to a claim filed during the policy period. Therefore, the appellate court ruled, the class action claim was covered by the policy. 

The Case

In October 2007,

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Insured Has Burden of Demonstrating that Settlements of Asbestos-Related Claims Were Reasonable
April 30, 2014 | Insurance Coverage

A federal district court in Maryland has ruled that an insured had the burden of demonstrating that settlements of asbestos-related claims were reasonable.

The Case

After thousands of asbestos-related claims were filed against Porter Hayden Company, it entered bankruptcy. The bankruptcy court confirmed Porter Hayden’s plan of reorganization, which established the Porter Hayden Bodily Injury

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First Amendment Protects Search Engine Results
April 15, 2014 | Intellectual Property | Complex Torts & Product Liability | Professional Liability

In an ironic twist, China’s largest search engine, Baidu, has successfully argued that it was entitled to First Amendment protection in regard to its search engine results in the United States, which excluded statements by the plaintiffs, a group of New York residents who “advocated” for “the Democracy movement in China.”   In a question of

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New York Insurance Coverage Update
April 1, 2014 | Insurance Coverage

Court Finds No Duty To Defend Based Upon “Auto Business” Exclusion After Looking At Judicial Admissions Outside Underlying Complaint

Sam’s Tires & Automotive, Inc., sent Clarence Riffle to deliver tires in a truck owned by its president, Jerry Rosato. Riffle struck a motorcycle operated by Kyle Wagner, who sued. Rosato’s personal auto insurer, Travelers, defended

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New York City Earned Sick Time Act Commences April 1, 2014
March 31, 2014 | Labor & Employment

The New York City Earned Sick Time Act (the “Act”), as recently amended, goes into effect on April 1, 2014.  The amendment has set forth significant changes to the original New York City Earned Sick Time Act, adopted into law on June 26, 2013 (the “Original Act”).  Key provisions of the Act are discussed herein. 

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Anatomy of a Late Claim
March 31, 2014 | Insurance Coverage | Appeals

A recent decision by the U.S. Court of Appeals for the Sixth Circuit, affirming a federal district court ruling, highlights the importance for both employers and employees of the language in a health care plan and summary plan description (SPD), including the limitations periods for commencing litigation.

The case involved the health care plan for

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The assertion of a breach of contract claim against an attorney for excessive billing does not result in the waiver of the attorney-client privilege..
March 31, 2014 | Insurance Coverage | Complex Torts & Product Liability | Professional Liability

The assertion of a breach of contract claim against an attorney for excessive billing does not result in the waiver of the attorney-client privilege as to successor counsel

Waiver of the attorney-client privilege often arises in attorney-client disputes, where “the defendant asserts a claim that in fairness requires examination of protected communications… [t]he key to

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Alabama Supreme Court Finds Coverage for Construction Defect Claims Even Though the Insured’s Own Work Allegedly Was Defective
March 31, 2014 | Insurance Coverage

The Alabama Supreme Court, withdrawing an earlier opinion, has found coverage for construction defect claims even though the insured’s own work allegedly was defective.

The Case

Thomas and Pat Johnson contracted with Jim Carr Homebuilder, LLC (“JCH”), a licensed homebuilder, for the construction of a new house on Lay Lake in Wilsonville, Alabama. After they took

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