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Insurance
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June 24, 2025
Reinsurer Gets Short Prison Stint In Ecuadorian Bribery Case
A Florida federal judge sentenced a reinsurance manager to 10 months of time served in prison for his role in a $3 million Ecuadorian bribery scheme following a hearing in Miami court on Tuesday, potentially allowing him to leave the country to reunite with his family in South America.
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June 24, 2025
1st Circ. Undoes Inflated Biz Interruption Award For Drink Co.
A Puerto Rico federal court wrongly maintained an award against an insurer that exceeded a beverage manufacturer's actual business income and extra expenses losses and was not supported by evidence at trial, the First Circuit held, reducing the total award from $1 million to approximately $686,000.
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June 24, 2025
No Coverage For Oil Co. Accused Of Pipe Scheme, Court Told
Everest Indemnity Insurance Co. is asking a southern Texas federal court to rule that it is not required to indemnify a Houston energy equipment company accused of defrauding an oil and gas operator through faulty pipes.
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June 24, 2025
D&O Insurer Must Cover Investor In Merger Dispute
A directors and officers liability insurer had a duty to defend and indemnify a venture capital investor in a now-resolved lawsuit over the sale of a company immediately after a merger, a California federal court ruled, finding a dilution-of-shares exception in an exclusion applicable.
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June 24, 2025
Gaming Co. Asks 11th Circ. To Uphold Malpractice Coverage
A gaming company and a law firm asked the Eleventh Circuit to reject an insurer's bid to avoid representing the firm in a malpractice case, arguing that if at least one claim in an underlying complaint was covered, the insurer couldn't apply a misappropriation exclusion.
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June 24, 2025
Pollution Exclusion Applies Without Exception, AIG Unit Says
An AIG unit urged the Illinois Supreme Court to find that a permit or regulation allowing a company to discharge toxins into the environment has no bearing on the application of a pollution exclusion, saying "pollution is pollution" regardless of government authorization.
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June 24, 2025
Lewis Brisbois Opens Insurance Practice With Atty From WTW
Lewis Brisbois Bisgaard & Smith LLP has launched a practice catering to the legal needs of insurance underwriters, product leaders and managing general underwriters and agents, hiring a former executive vice president at insurance broker Willis Towers Watson PLC to co-chair it.
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June 23, 2025
Calif. Property Co. Denied Early Win In Defect Coverage Suit
A California federal court refused to hand a partial win to the owner of a Brentwood retirement community seeking excess coverage for an underlying settlement stemming from homeowners' construction defect claims, saying genuine issues of fact exist as to whether the claims constitute "suits" under the policy.
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June 23, 2025
Imerys Ditches Italian Talc Unit In Updated Ch. 11 Plan
Bankrupt talc producer Imerys Talc America has filed an updated Chapter 11 plan that contemplates the dismissal of its Italian affiliate from the case, noting that skepticism from a Delaware bankruptcy judge about the unit's ability to survive a challenge to its bankruptcy filing led to the decision.
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June 23, 2025
Aflac Hit With Data Breach Class Action In Ga.
Aflac Inc. was sued Saturday in Georgia federal court over allegations that it failed to safeguard the personally identifiable information and protected health information of its customers during a recent data breach.
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June 23, 2025
Mayer Brown Brings On Ex-Athene Atty For Insurance Team
Mayer Brown said Monday that it added a former counsel for retirement services company Athene to its Chicago office, where he will serve as a partner in the firm's corporate and securities practice and global insurance industry group.
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June 23, 2025
Justices Skip Pa. Med Mal Fund's Bid To Shield $300M Surplus
The U.S. Supreme Court said Monday it won't decide if Pennsylvania's medical malpractice insurance fund is a government entity for the purpose of determining if the state is authorized to dip into the money pool's $300 million budget surplus.Â
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June 20, 2025
Judge Awards $29.5M Counsel Fee For $147.5M Class Deal
A Connecticut federal judge has given final approval to a $147.5 million settlement for an insurance fee class while awarding $29.5 million in attorney fees spread across three firms, marking a 5% reduction to the cut of the settlement counsel sought.
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June 20, 2025
9th Circ. Says NY Claims Against Hyundai Raise 'Novel' Issue
A split panel of the Ninth Circuit Friday refused to toss negligence claims from cities in Ohio and Wisconsin in consolidated litigation alleging Hyundai and Kia, of which Hyundai is a major shareholder, sold vehicles with design flaws that enabled car thefts nationwide, but said negligence claims under New York law "raise a novel issue" of state law.
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June 20, 2025
2nd Circ. Backs Chubb's Win In $49M Sandy Coverage Fight
The Second Circuit on Friday cemented a Chubb unit's win in a decade-long dispute over a chocolatier's bid for an additional $49 million in coverage for Superstorm Sandy losses, affirming a decision denying the chocolatier's requests to set aside a jury verdict or hold a new trial.
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June 20, 2025
Hartford Claims Co. Accused Of Shortchanging Auto Payouts
Hartford Fire Insurance Co. was hit with proposed class claims in Connecticut federal court that it failed to pay full value for totaled cars under individual policies, after it used third-party data to whittle hundreds of dollars from vehicle prices as uniform claims administrator for 20 other insurers under The Hartford banner.
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June 20, 2025
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen Pogust Goodhead face legal action from mining giant BHP Group, Trainline bring a procurement claim against the Department for Transport, Sworders auction house sue Conservative peer Patricia Rawlings, and Nokia hit with a patents claim by Hisense. Here, Law360 looks at these and other new claims in the U.K.
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June 20, 2025
Liberty Mutual Off Hook For Tow Charge After Fatal Crash
Liberty Mutual is not responsible for $118,290 a Massachusetts towing company tried to collect in storage charges for a vehicle that was evidence in a fatal car accident, the state's highest court concluded Friday.
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June 20, 2025
Golf Course Biz Says Insurer Shirking $3M In Helene Damages
The owner of three North Carolina golf courses is suing Cincinnati Insurance for breach of contract after the company failed to fully cover property damage caused by Hurricane Helene, arguing its substantial premium clearly covers the destruction left by the 2024 storm.
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June 20, 2025
Norton Rose Adds Holland & Knight Tax Partner In DC
Norton Rose Fulbright has expanded its tax insurance underwriting offerings in the nation's capital with the addition of a partner from Holland & Knight LLP.
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June 20, 2025
Aflac Hacked In 'Campaign' Against Insurance Industry
Aflac is the latest target of an ongoing "cybercrime campaign against the insurance industry," the company said Friday, reporting that a breach has potentially exposed claims and health data, Social Security numbers and other personal information.
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June 18, 2025
State Farm Likely To Face 200K Calif. Homeowner Class
A California federal judge indicated Wednesday that he'll likely certify a class of nearly 200,000 homeowners in litigation alleging that State Farm underpays property insurance claims by depreciating sales tax when calculating replacement costs, saying a common issue predominates and noting he'd sided with plaintiffs in a similar 2017 case.
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June 18, 2025
Pollution Insurer Says Cos. Not Covered In Groundwater Row
A pollution liability insurer for an oilfield services company told a Texas federal court it owes no coverage for two lawsuits accusing the company and a former subsidiary of groundwater contamination, arguing the company breached its claim reporting requirements and knew of the alleged contamination before purchasing coverage.
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June 18, 2025
Colo. Judge Trims REIT's Antitrust MDL Coverage Dispute
A Colorado federal court trimmed a real estate investment trust's suit seeking coverage for antitrust multidistrict litigation, saying the trust's statutory bad faith claim under Colorado law could not proceed because of a New York choice-of-law provision in its primary policy.
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June 18, 2025
Wash. Panel Sides With Insurer In Café Fire Damage Suit
A couple's commercial property insurer has no duty to cover damage from a kitchen fire at their café, a Washington state appeals court affirmed, finding the couple lacked certain protective safeguards that were required as part of their fire suppression system.
Expert Analysis
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Del. Dispatch: General Partner Discretion In Valuing Incentives
In Walker v. FRP Investors, the Delaware Court of Chancery recently held that the general partner of a limited partnership breached its obligations when determining the threshold value of newly issued incentive units, highlighting the court's willingness to reconstruct what a reasonable determination of value by a general partner should have been, say attorneys at Fried Frank.
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Move Beyond Surface-Level Edits To Master Legal Writing
Recent instances in which attorneys filed briefs containing artificial intelligence hallucinations offer a stark reminder that effective revision isn’t just about superficial details like grammar — it requires attorneys to critically engage with their writing and analyze their rhetorical choices, says Ivy Grey at WordRake.
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Court Rulings Warn Against Oversharing With Experts
Recent decisions, including in bad faith insurance cases, demonstrate that when settlement information documents are inadvertently shared with testifying experts, courts may see no recourse but to strike the entire report or disqualify the expert, says Richard Mason at MasonADR.
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7th Circ. Insurance Ruling Resolves Major Jurisdictional Issue
The Seventh Circuit recently confirmed in StarStone Insurance v. Chicago that attorney fees and costs paid as part of a settlement are covered — while unexpectedly raising and answering a question of first impression about federal jurisdiction over foreign entities, says Lara Langeneckert at Barnes & Thornburg.
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9th Circ. Has Muddied Waters Of Article III Pleading Standard
District courts in the Ninth Circuit continue to apply a defunct and especially forgiving pleading standard to questions of Article III standing, and the circuit court itself has only perpetuated this confusion — making it an attractive forum for disputes that have no rightful place in federal court, say attorneys at Gibson Dunn.
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What Calif. Appeals Split Means For Litigating PAGA Claims
After two recent California state appeals court rulings diverged on whether a former employee with untimely individual claims under the Private Attorneys General Act can maintain a representative action, practitioners' strategic agility will be key to managing risk and achieving favorable outcomes in PAGA litigation, say attorneys at Buchalter.
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Series
Competing In Modern Pentathlon Makes Me A Better Lawyer
Opening myself up to new experiences through competing in modern Olympic pentathlon has shrunk the appearance of my daily work annoyances and helps me improve my patience, manage crises better and remember that acquiring new skills requires working through your early mistakes, says attorney Mary Zoldak.
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When Rule 12 Motions Against Class Allegations Succeed
Companies facing class actions often attempt early motions to strike class allegations, and while some district courts have been reluctant to decide certification issues at the pleading stage, several recent decisions have shown that Rule 12 motions to dismiss or strike class allegations can be effective, say attorneys at Womble Bond.
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Series
Law School's Missed Lessons: Teaching Yourself Legal Tech
New graduates often enter practice unfamiliar with even basic professional software, but budding lawyers can use on-the-job opportunities to both catch up on technological skills and explore the advanced legal and artificial intelligence tools that will open doors, says Alyssa Sones at Sheppard Mullin.
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State Farm Rate Hike Portends Intensifying Insurance Crisis
The California Department of Insurance's unprecedented emergency approval of a 17% rate increase for State Farm General Insurance, the first interim rate relief granted before completing full actuarial justification, represents a regulatory watershed and establishes precedent that could fundamentally reshape insurers' response to climate-driven market instability, says Daniel Veroff at Merlin Law Group.
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How AI May Reshape The Future Of Adjudication
As discussed at a recent panel at Texas A&M, artificial intelligence will not erase the human element of adjudication in the next 10 to 20 years, but it will drive efficiencies that spur private arbiters to experiment, lead public courts to evolve and force attorneys to adapt, says Christopher Seck at Squire Patton.
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5 Insurance Claims That Could Emerge After NCAA Settlement
Following the recent NCAA class action settlement that will allow revenue sharing with college athletes, there may be potential management liability for universities, their executive leadership and boards that could expose insurers to tax, regulatory, breach of contract and other claims, says Sarah Abrams at Baleen Specialty.
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When Legal Advocacy Crosses The Line Into Incivility
As judges issue sanctions for courtroom incivility, and state bars advance formal discipline rules, trial lawyers must understand that the difference between zealous advocacy and unprofessionalism is not just a matter of tone; it's a marker of skill, credibility and potentially disciplinary exposure, says Nate Sabri at Perkins Coie.
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3 Corporate Deposition Prep Tips To Counter 'Reptile' Tactics
With plaintiffs counsel’s rising use of reptile strategies that seek to activate jurors' survival instincts, corporate deponents face an increased risk of being lulled into providing testimony that undercuts a key defense or sets up the plaintiff's case strategy at trial, making it important to consider factors like cross-examination and timing, say attorneys at Dentons.
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Indemnity Lessons From Mass. Construction Defect Ruling
The Massachusetts high court's decision in Trustees of Boston University v. CHA, holding that a bespoke contractual indemnity provision means that a construction defect claim is not subject to Massachusetts' statute of repose, should spur design and construction professionals to negotiate limited provisions, says Christopher Sweeney at Conn Kavanaugh.