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Insurance
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March 28, 2025
NC Biz Court Bulletin: TikTok Duel Heats Up, NIL Suit Plays On
In March, the North Carolina Business Court readied for trial in an insurance coverage dispute involving Smithfield Foods, heard why TikTok is subject to the state's jurisdiction, and allowed the Cardiac Pack's NIL suit against the NCAA to proceed while a parallel case plays out.
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March 27, 2025
Diopsys Inks $14M Deal Resolving Vision Testing FCA Claims
Medical device maker Diopsys Inc. has agreed to pay up to $14.25 million to put to rest allegations it violated the False Claims Act by submitting false Medicare and Medicaid claims for certain vision testing services, according to a U.S. Department of Justice announcement Thursday.
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March 27, 2025
Ga. Firm Sues Allstate Over Wrecked Car Fee Coverage
A Georgia law firm hit Allstate Insurance Co. with a proposed class action over allegations that it fails to pay title transfer fees and license registration fees to insureds who incur total loss claims.
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March 27, 2025
Insurer Can't Escape Auto Co.'s $50M COVID Coverage Suit
An insurer can't escape an auto parts manufacturer's suit seeking $50 million in coverage for COVID-19-related losses, a North Carolina federal court ruled, saying the manufacturer sufficiently alleged that its losses are covered under the policy's communicable disease endorsement.
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March 27, 2025
Coverage Row Over OpenText Merger Now Moot, Judge Says
A Michigan federal court tossed on Thursday an insurer's lawsuit seeking a declaration that it had no duty to indemnify a shareholder class action stemming from Covisint's 2017 merger with software company OpenText, finding the dispute is now moot because the insurer's coverage limit has already been exhausted.
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March 27, 2025
NC Biz Court Limits Testimony In Smithfield Coverage Trial
A North Carolina business court judge refused to exclude expert witnesses from either side of an insurance coverage dispute between Smithfield Foods Inc. and a Chubb subsidiary, but did limit their testimony for the firms' upcoming April trial on how much the insurer owes for breaching its duty to defend.
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March 27, 2025
Elevance Fails To Pay Wages At Termination, Worker Says
Elevance Health failed to pay workers their final wages on the business day following their terminations in violation of Connecticut law, and now owes them twice the amount of those wages, according to a proposed class action filed in state court.
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March 27, 2025
Panera Franchisee Blames Insurer For Slip-And-Fall Payout
A Massachusetts Panera franchisee said Travelers and its counsel botched a minor slip-and-fall claim, eventually leaving it on the hook for its full $250,000 deductible to cover an "inflated" settlement and legal fees in the case.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
Ill. Justices Hold WestRock Unit To $5M Superfund Coverage
The Illinois Supreme Court won't hear a WestRock Co. subsidiary's petition for review of an appeals decision affirming that one of its insurers had no duty to cover environmental cleanup costs at a now-shuttered paper mill while another insurer already paid its applicable coverage limit.
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March 26, 2025
Honigman Gains New Insurance Recovery Partner In Chicago
Business law firm Honigman LLP announced Wednesday the addition of a policyholder-side insurance and reinsurance recovery litigation partner, who left Reed Smith to join its Chicago office.
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March 26, 2025
Insurers Must Cover $29M Axle Defect Costs, Co. Says
A successor company to an auto parts manufacturer told a Michigan federal court Wednesday its commercial general liability insurers must help cover nearly $29 million a German company said it lost from faulty axle shafts it purchased and were ultimately installed in certain Dodge Ram pickup trucks.
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March 26, 2025
Mich. Supreme Court To Review Pair Of Auto Law Appeals
The Michigan Supreme Court agreed Wednesday to take up two car insurance appeals that will see the justices examining the standard for taking a vehicle "unlawfully" and whether a nonresident's tort claims are barred because he should have been carrying Michigan car insurance.
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March 26, 2025
Illinois Supreme Court Denies Co.'s BIPA Coverage Appeal
The Illinois Supreme Court left intact an intermediate appellate panel's decision relieving two Liberty Mutual units of covering a home decor company in its underlying dispute with employees who said its timekeeping practices are in violation of the state's biometric data privacy law.
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March 26, 2025
Insurance Rep Gets 41 Months For $6M Bank Fraud
A Georgia federal judge sentenced an insurance broker to 41 months in prison after he pled guilty to defrauding a credit union out of $6 million through loans to commercial borrowers for insurance premiums.
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March 25, 2025
Baltimore Bridge Collapse: One Year Later
Federal accident investigators' recent determination that Maryland could've done more to protect Baltimore's Francis Scott Key Bridge from a devastating collapse may complicate the sprawling legal battle over liability and damages in the year since a cargo ship struck the bridge and crippled a major East Coast transportation hub.
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March 25, 2025
Insurers Claim 4th Circ. Must Revisit Ruling For Aluminum Co.
Insurers in a coverage cap dispute with an aluminum company have asked the Fourth Circuit to reconsider an opinion holding that an ambiguous policy provision must be construed in the company's favor, calling it contrary to South Carolina law.
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March 25, 2025
Insurance Mogul Seeks To Overturn $122M Contempt Order
A convicted billionaire embroiled in lawsuits over the demise of his insurance empire wants out of a nine-figure contempt order, telling the North Carolina Court of Appeals that neither he nor his company has the ability to pay more than $122 million to purge the contempt.
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March 25, 2025
Md. Bank Disputes IRS Denial Of Captive Tax Perk
A Maryland community bank is contesting in the U.S. Tax Court the Internal Revenue Service's decision to scrap two years' worth of tax deductions tied to a reinsurance captive, disputing the agency's findings that the arrangement had no economic purpose other than tax avoidance.
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March 25, 2025
A Look At 6 States Tussling Over Tort Reform Legislation
There are six state legislatures, mostly in the South, that are debating whether to install business-friendly tort reform legislation or dismantle medical malpractice guardrails. The bills run the gamut from potential game-changing legislation in Georgia, to efforts in Texas to cap certain types of personal injury damages.
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March 24, 2025
Justices Won't Hear Insurance Dispute Over Claim Timeliness
The U.S. Supreme Court on Monday rejected a California woman's bid to certify questions to Massachusetts' top court about when exactly an insurer must show it was prejudiced by an insured's late claim notice, letting stand a First Circuit decision that also refused to certify such questions.
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March 24, 2025
Feds Seek About 5 Years For Insurance Rep's $6M Bank Fraud
Georgia federal prosecutors recommended that a Florida insurance broker who pled guilty to defrauding a credit union out of $6 million through loans to commercial borrowers for insurance premiums be sentenced to between 51 and 63 months in prison.
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March 24, 2025
Final OK Sought For $3M In Bail Bond Antitrust Deals
A proposed class alleging they overpaid for bail bonds thanks to a price-fixing conspiracy is asking a California federal court to approve $3 million in settlements inked with two of the entities.
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March 24, 2025
Prudential Settles Trauma Surgeon's Disability Benefits Suit
Prudential agreed to end a surgeon's lawsuit claiming the insurer unlawfully cut off her disability benefits after erroneously determining that she could return to work in a different capacity, according to a filing Monday in Texas federal court.
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March 24, 2025
Skechers Says Insurer Shirked Defense Of Nonslip Shoe Suit
Skechers' insurer wrongfully refused to defend the shoe giant in a putative class action over slip-resistance problems with some of its shoes, Skechers told a California state court in seeking at least $750,000.
Expert Analysis
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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Opinion
To Shrink Jury Awards, Address Preventable Medical Errors
While some health industry leaders complain about large malpractice awards — like the recent $45 million verdict in Hernandez v. Temple University Hospital — these payouts are only a symptom of the underlying problem: an epidemic of preventable medical errors, says Eric Weitz at The Weitz Firm.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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Defining All-Risk: Despite $30M Loss, Loose Bolt Not 'Damage'
A Massachusetts federal court’s recent ruling in AMAG Pharmaceuticals v. American Guarantee and Liability Insurance Co., denying coverage for $30 million in damages claimed when a loose bolt caused an air leak, highlights an ongoing debate over the definition of “direct physical loss or damage,” say Josh Tumen and Paul Ferland at Cozen O'Connor.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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Sublimit And Policy Interpretation Lessons From Amtrak Case
The recently settled dispute between Amtrak and its insurers over sublimit coverage illustrates that parties with unclear manuscript policies may wish to avoid litigation in favor of settlement — as the New York federal court declined to decide the case by applying prior term interpretations, says Laura Maletta at Chartwell Law.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Mental Health Parity Rules: Tips For Plans And Issuers
Following federal agencies' release of final mental health parity rules, plan sponsors and health insurance issuers should develop protocols for preparing compliant nonquantitative treatment limitation comparative analyses, say attorneys at Ropes & Gray.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Climate Among Many Factors Driving Up RE Insurance Costs
A proactive approach to risk management may determine the viability of the U.S. commercial real estate sector as weather crises and other factors drive insurance costs higher, says Ulrick Matsunaga at Crosbie Gliner.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Fla. Insurer-Breach Cases Split On Unrepaired Property Issue
A Florida appellate court's recent decision in Universal v. Qureshi is directly at odds with a 2020 decision from another Florida appellate court, and raises important questions for policyholders and insurers about the proper measure of damages in breach claims involving unrepaired property, say Andrea DeField and Yaniel Abreu at Hunton.
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Series
NY Banking Brief: All The Notable Legal Updates In Q3
In a relatively light few months for banking legal updates in New York, the state Department of Financial Services previewed its views on banking sector artificial intelligence use via insurer guidance, and an anti-money laundering enforcement action underscored the importance of international monitoring processes, say Eric McLaughlin and Dana Bayersdorfer at Davis Polk.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.