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From the Courts
September 1, 2015 | Appeals | Insurance Coverage

Oral Complaints to Employer Alleging FLSA Violations Could Serve as Basis for Retaliation Claim, Court Rules

For more than 15 years, the plaintiff in this case worked as a truck driver for William C. Wernicki Trucking Co., a Connecticut company owned by Ena Wernicki that provides mail-hauling services pursuant to several contracts with the U.S.

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Protection Against Fraud Must Be Specific
August 31, 2015

Alan Rutkin, a partner in the Firm’s Insurance Coverage & Litigation Practice Group, has published an article entitled, “Protection Against Fraud Must Be Specific,” in the September 2015 issue of Best’s Review.

Click here to read the article.

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The New York Attorney General and Dietary Supplements: Six Months Later
August 31, 2015

With his February 3, 2015, announcement that four national retail chains were selling herbal supplements without any herbs in them, New York Attorney General Eric Schneiderman opened the door on an unprecedented wave of negative publicity for the dietary supplement industry. In the days following the disclosure of the AG’s investigation into this alleged fraud,

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FDA Looks to Undermine DSHEA – Again
August 31, 2015

Signed into law by President Clinton on October 25, 1994 after being adopted by unanimous consent by a Congress that received in excess of 2.5 million letters urging its passage, the Dietary Supplement Health and Education Act of 1994 (DSHEA) expressly provides that dietary supplements and the ingredients therein that were on the market as

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Insurer May Seek Reimbursement of Overbilled Amounts Directly from Cumis Counsel, California Supreme Court Rules
August 31, 2015

The California Supreme Court has ruled that an insurance company may seek reimbursement of overbilled amounts directly from Cumis counsel.

Background

In California, if any claims in a complaint against an insured under a commercial general liability (“CGL”) insurance policy are potentially covered by the policy, the insurer must provide its insured with a defense to all

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California Supreme Court Overrules Henkel and Decides that Statute Bars “Consent to Assignment” Clauses
August 31, 2015

The California Supreme Court has overruled its 2003 decision in Henkel Corp. v. Hartford Accident & Indemnity Co. and ruled that a state law tracing back to 1872 had changed its determination regarding the enforceability of “consent to assignment” clauses in insurance policies.

Background

Henkel concerned an insured’s assignment of rights under a liability policy. The

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Absent Assignment of Rights from Insured, Plaintiffs Could Not Assert Bad Faith Claim against Insurer, New Jersey Supreme Court Rules
August 31, 2015

The New Jersey Supreme Court has ruled that, absent an assignment of rights from the insured, plaintiffs could not assert a bad faith claim against insurers that provided homeowners’ insurance coverage to the insured.

The Case

John and Pamela Ross alleged that their residence was damaged by the migration of home heating oil from a

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Claim Was Made Against Insured Before Policy’s Effective Date, Eighth Circuit Decides
August 31, 2015

The U.S. Court of Appeals for the Eighth Circuit has ruled that a claim had been made against the insured under a commercial general liability (“CGL”) insurance policy before the policy’s effective date.

The Case

No later than early 2008, Burlington Graphics Systems reported to Ritrama, Inc., that recreational vehicle (“RV”) owners were experiencing issues with

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Excess Insurer Did Not Have Duty to Initiate Settlement Negotiations with Third Party Claimant, Tenth Circuit Holds
August 31, 2015

The U.S. Court of Appeals for the Tenth Circuit has ruled that an excess liability insurer had no duty to initiate settlement negotiations with a third party claimant.

Background

Under Oklahoma law, a primary insurer owes its insured a duty to initiate settlement negotiations with a third party claimant if the insured’s liability to the

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Maryland Appeals Court Rules that CGL Policy Did Not Provide Liability Coverage for Mis-Delivered Home Heating Oil
August 31, 2015

An appellate court in Maryland has ruled that a commercial general liability (“CGL”) insurance policy issued to a company in the home heating oil business did not provide liability coverage for a claim for property damage resulting from a mis-delivery of home heating oil by a fuel truck driver.

The Case

The insured sought coverage

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“Occurrence” Took Place When Wrongfully Convicted Defendant First Had Been Charged, Indiana Court Decides
August 31, 2015

A federal district court in Indiana, in a case in which a city sought insurance coverage for claims brought by a person who had been wrongfully convicted of a crime, has ruled that the “occurrence” had taken place when the wrongfully convicted defendant first had been charged.

The Case

In November 1996, Christopher Parish was

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Dissenting Opinions Highlight Split Among Exiting Judges
August 24, 2015

The Court of Appeals issued seven principal insurance law decisions this past term.1 Four decisions affirmed the rulings below, two reversed, and one modified. Five were in favor of insurance companies and two in favor of policyholders. Two of the seven were unanimous, one was decided by a vote of four-to-one, and four had at

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Circuit Clarifies Time Limit for Computer Hacking Suits
August 18, 2015

Computer hacking historically has been seen as the province of lowlife criminals existing in the darkened recesses of some faraway place looking to make a dishonest buck. However, as individuals increase their online presence and, thereby, their digital vulnerability, unauthorized access to a person’s computers and to email and social media accounts is increasingly being

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Insurer Did Not Violate Connecticut Unfair Trade Practices Act by Requiring Auto Body Shops to Use Agreed-Upon Labor Rates
August 18, 2015

A unanimous Connecticut Supreme Court has ruled that an automobile insurance company did not violate the Connecticut Unfair Trade Practices Act (“CUTPA”) by requiring its appraisers to use low labor rates when estimating the cost of auto body repairs for the company’s insureds.

The Case

Artie’s Auto Body, Inc., A & R Body Specialty, Skrip’s Auto

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Insurer Need Not Demonstrate Prejudice from Late Notice, Texas Appeals Court Decides
August 18, 2015

An appellate court in Texas, affirming a trial court’s decision, has ruled that an insurance company that had issued a claims-made pollution liability and environmental damage policy to a the owner and operator of a gas station did not have to prove that it had been prejudiced by the insured’s late notice of a claim

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