In Continental Casualty Co. v. Law Offices of Melbourne Mills, Jr., PLLC, the Sixth Circuit has just ruled that a lawyer’s failure to disclose an ongoing state bar association investigation against him constituted a material representation justifying the rescission of his malpractice insurance.
The defendant was one of three attorneys who represented a class of Kentucky…
Here’s a fairly frequent scenario in the insurance world. The carrier takes a “no- pay” position on a liability claim. The policyholder settles the case and then seeks reimbursement from the carrier in a coverage suit. What exactly does the policyholder have to prove in order to get paid?
In Fireman’s Fund v. Security Ins.
In State Automobile Mutual Ins. Co. v. Flexdar, the Indiana Supreme Court has just held that the so-called “absolute” pollution exclusion contained in general liability insurance policies from 1986 forward is ambiguous and unenforceable. The Court basically found that the exclusion does not define “pollutant” with sufficient specificity, and that, read literally, the exclusion…
Spring is a time of rebirth and hope, especially for baseball fans. No matter how badly your team played last year, when March rolls around, you’re tied for first! That is, unless (like me) you’re a fan of the woeful New York Mets. After just a few weeks of spring training, their third baseman already…
Every once in awhile, we come across a case that calls to mind the formal legal term: “Eeeeww.” Here’s one that’s now before the New Jersey Supremes, and that (if you can get past the ghoulishness) involves two important questions:
(1) When does an “occurrence” take place under a liability policy?
(2) Can a court…
In ethics or metaphysics, the “law of unintended consequences” states that, for any willed action, there are consequences that occur which are not intended. The concept has long existed, but was named and popularized in the 20th century by American sociologist Robert K. Merton.
Merton would have been fascinated by laws that were intended…
Good stuff over at Amy Stewart’s blog on the issue of who gets to pick counsel – the policyholder or the carrier. Naturally, this depends on the policy language…unless the carrier reserves its rights, in which case the interests of the policyholder and carrier may be in conflict. The flip-side, of course, is if the…
I’m getting ready to participate in a panel discussion at the New Jersey Institute for Continuing Legal Education with some of my friends from both sides of the bar (policyholder and carrier). I’ll be discussing the rules of construction in insurance policies, particularly as they relate to ambiguity, so I’m re-reading some of the more…
In no particular order, the three areas of liability claim that seem to make carriers the most unhappy (or suspicious) are (1) employment claims; (2) environmental claims; and (3) “Coverage B”-type claims (intellectual property, false advertising, etc.). The Great Pomegranate Wars fall into category (3). (I should note for accuracy that “Coverage B” is a…
In my experience, there are three main reasons why companies delay in giving notice to their carriers of potentially covered claims. First, the underlying suit is an “oddball,” such as an intellectual property claim, that the risk manager thinks isn’t covered. Second, the company is worried that its premiums will rise. Third, the person responsible…