No Coverage for Shareholder Suits Due to Relation-Back Clause The Eighth Circuit Court of Appeals, applying Minnesota law, affirmed the district court’s finding that a prior acts exclusion in a directors and officers liability policy barred coverage for shareholder suits stemming from an insured’s failure to disclose related-party transactions to the SEC before going public. Tile Shop Holdings, Inc. (“Tile Shop”),... Read More
N.D. IL / COVID-19: Closure due to Governor’s Orders Not “Direct Physical Loss”. Read More » Tenn. Sup. Ct. / Asbestos: Manufacturers Not Liable for Failure to Warn About the Dangers of Post-Sale Asbestos-Containing Materials. Read More » IL 1st Dist. / Notice: Report to Police 11 Days after Accident is “as Soon as Practicable”. Read More » 9th Cir. / Strict Liability: Amazon Not a Seller When Third-Party... Read More
Chicago: Illinois Governor Pritzker announced today that Rob Muriel, who has served as the Director of the Illinois Department of Insurance since early in his administration, will be leaving public service on December 11, 2020. “Director Muriel’s legal background and knowledge of insurance laws has been an asset to Illinois’ effective regulation of the insurance industry. He was at... Read More
Issues Facing Senior Care Policyholders Long-term care providers may be facing a “Perfect Storm” of tort and insurance risk. First, it was the ongoing assault on profit margins by regulation, “social inflation” in jury awards, and plaintiffs’ attorneys who have targeted the industry. And now, these risks are about to merge into the coronavirus crisis, creating virtually overnight existential risk... Read More
Attorney Client Privilege Not Automatically Waived by Contesting Bad Faith Claim The South Carolina Supreme Court, on certification from the Fourth Circuit, held that denying liability and/or asserting good faith in an answer does not, standing alone, waive attorney-client privilege. The South Carolina Supreme Court adopted the middle ground, which involves a fact intensive approach to determining whether attorney-client privilege is waived in bad... Read More
Insurers Must Pay Defense Costs Whether or Not Asbestos Claims Result in Indemnity Payments The Court of Appeals of California, applying California law, rejected the insurers’ “covered claims” argument and held the insurers must pay defense costs in all asbestos claims – both those successfully defended and those resulting in an indemnity payment. Deere & Company (“Deere”) has been sued by numerous individuals claiming personal injury... Read More
CHICAGO: Hoke LLC represents the policyholder plaintiff in the lead case listed by prominent legal website Insurance Law 360 as Insurance Cases to Watch in 2019 in the United States. See Link. On behalf of Vanderbilt Minerals, LLC, Hoke LLC prevailed both at trial and on appeal on the major legal issues impacting the insurer defendants’ coverage obligations. The... Read More
No Coverage for Refinery Fire and EPA Violations Indemnification Claim A district court in Arkansas, applying Arkansas law, granted Liberty Mutual Fire Insurance Co.’s (“Liberty Mutual”) motion for summary judgment finding that all of the claims at issue for indemnification against its insured, Murphy Oil Corporation (“Murphy”), fell squarely within its policy exclusion for liability because of “assumption of liability in a contract or agreement.” The... Read More
Fact Question Regarding Malpractice Insurer’s Failure to Settle Within Limits The Seventh Circuit, applying Indiana law, reversed the district court and held that a question of fact existed as to whether the plaintiff malpractice insurance company committed a “Wrongful Act” by rejecting two settlement offers for policy limits in an underlying case. The underlying case stemmed from the death of Vicki Bramlett from complications following a... Read More
Allegedly Damaged Goodwill Does Not Trigger EPL Coverage The Seventh Circuit, applying Indiana law, affirmed the district court’s ruling and found no coverage for the underlying lawsuit which alleged the plaintiff used DirecTV’s satellite television programming for its businesses without paying a higher commercial subscription rate. The Seventh Circuit disagreed that the underlying lawsuit, which included allegations for damaged goodwill, involved “slander, invasion of privacy, defamation or humiliation.” ... Read More
