Q: I was appointed receiver over a manufacturing facility. I operated it for a short time and then obtained court authority to sell it. I netted $1.4 million from the sale....more
6/3/2024
/ Barton Doctrine ,
Commercial Real Estate Contracts ,
Court-Appointed Receivers ,
Federal Priority Act ,
Immunity ,
IRS ,
Lien Priority ,
Personal Liability ,
Rent ,
Rental Property ,
Residential Property Owners ,
Tax Liens
The facts are frequently the same. A company that has retained the services of a vendor receives an authentic-looking email from the vendor’s CFO which advises that the vendor has changed its bank account or method of...more
For parties facing class action lawsuits, where the class seeks to recover for economic losses, there may still be opportunities for insurance coverage. Thus, where economic losses arise out of the purchase of products that...more
Civil Code section 2860 authorizes the retention of independent counsel in the event a conflict of interest arises between the insurer and its insured. Under the statute a conflict of interest is deemed to arise “when an...more
Companies reporting liability insurance claims need to be aware that the pertinent rules vary depending on whether a policy is “claims made and reported” or “occurrence”.
Most, if not all, Directors and Officers and Errors...more
Over the last several years several companies, including Marriott, Yahoo and Volkswagen, have been victimized by hackers breaking into a company’s computer network. In some cases, they have put confidential information on the...more
7/19/2023
/ Audits ,
Commercial General Liability Policies ,
Confidential Information ,
Contract Terms ,
Cyber Attacks ,
Cyber Crimes ,
Cyber Insurance ,
Cybersecurity ,
Data Breach ,
Hackers ,
Ransomware ,
Risk Mitigation ,
Service Contracts ,
Third-Party Service Provider ,
Vendors
A genuine looking email is sent to a company’s accounts payable department with instructions from its president to pay money to a certain account. The “To” and “From” headers and the signature block look identical to hundreds...more
Where companies are victimized by ransomware or email scams, their losses arise from payments made by an officer or employee of the company.
In the case of ransomware, a company’s files are held hostage pending payment...more
4/5/2023
/ Business Losses ,
Computer Fraud Insurance ,
Cyber Attacks ,
Denial of Insurance Coverage ,
Fraud ,
Hackers ,
Insurance Claims ,
Insurance Litigation ,
Phishing Scams ,
Policy Exclusions ,
Ransomware ,
Reimbursements ,
Scams
Losses arising from email scams are usually covered, if at all, under a company’s crime policy. But a recent decision from The District Court in Minnesota suggests that recourse may also be found under an insured’s cyber or...more
1/27/2023
/ Business Interruption ,
But For Causation ,
Commercial Insurance Policies ,
Cyber Attacks ,
Cybersecurity ,
Data Breach ,
Denial of Insurance Coverage ,
Email ,
Phishing Scams ,
Policy Terms ,
Popular ,
Scams
Where a liability carrier has assumed its insured’s defense under a reservation of rights, a variety of conflicts between those parties may arise when there are settlement discussions to resolve the underlying litigation....more
Whether consumer protection or false advertising claims are covered by insurance depends on the kind of insurance policies in play. For example, coverage for such claims under a CGL policy is unlikely because an...more
10/7/2022
/ Commercial Insurance Policies ,
Corporate Management ,
D&O Insurance ,
False Advertising ,
Insurance Claims ,
Labeling ,
Liability Insurance ,
Negligence ,
Policy Exclusions ,
Policy Terms ,
Settlement Agreements ,
Unfair or Deceptive Trade Practices ,
Wrongful Acts
On September 15, 2022, the Federal Trade Commission (“FTC”) issued a Policy Statement on Enforcement Related to Gig Work (the “Policy Statement”).
The agency’s press release states: “American workers deserve fair,...more
As the use of biometric information for verification purposes becomes widespread, employers and others should be aware of statutes which regulate the collection, storage and dissemination of this data. In this regard,...more
In Medidata Solutions, Inc. v. Federal Insurance Company, 268 F. Supp. 3d 471 (S. D. N. Y. 2017), aff’d, 729 Fed. Appx. 117 (2nd Circuit 2018), the Court found that there was insurance coverage where a company had been...more
Where multiple liability policies are triggered, does one of the insurers get to insist that its deductible be satisfied before the insured can be provided with a defense? Relatedly, can the insured choose which insurer...more
Liability insurance written on a claims made basis is designed to protect an insured against claims asserted following the policy’s inception even if the acts giving rise to the claim took place prior to policy inception. But...more
Your CFO or accounts payable clerk receives a legitimate-looking email supposedly from the company’s president authorizing a wire transfer to a vendor or business partner. In reliance on that email, the company’s bank is...more
Consider the following two scenarios resulting in identical losses, but potentially two entirely different insurance coverage outcomes.
In the first instance, a thief hacks, or gains unauthorized entry, into an insured’s...more
The concept of “presence” for jurisdictional purposes has evolved with the widespread use of websites, social media and other digital platforms. A company or individual may have no physical presence in a forum, but may...more
12/16/2021
/ Digital Platforms ,
Forum ,
General Jurisdiction ,
Marketing ,
Motion to Dismiss ,
Non-Residents ,
Personal Jurisdiction ,
Remand ,
Reversal ,
Social Networks ,
Trademark Infringement ,
Trademarks ,
Websites
As part of the larger trend of invasion of privacy claims asserted by employees or consumers against businesses, several states have recently passed legislation that sets forth requirements for the collection, storing and...more
Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...more
10/13/2021
/ Attorney's Fees ,
Commercial General Liability Policies ,
Construction Contracts ,
Construction Defects ,
Construction Industry ,
Construction Project ,
Damages ,
General Contractors ,
Negligence ,
Occurrence ,
Property Damage
Data breaches by large companies have been in the news for some time. Over the last several years several companies, including Marriott, Yahoo and Volkswagon, have been victimized by hackers who have broken into a company’s...more
9/22/2021
/ Confidential Information ,
Corporate Liability ,
Cybersecurity ,
Data Breach ,
Personal Information ,
Popular ,
Risk Management ,
Risk Mitigation ,
Sensitive Personal Information ,
Third-Party Service Provider ,
Vendors
A recent case from the 5th U.S. Circuit Court of Appeals breaks new ground on the question of whether a commercial general liability policy provides coverage for damages arising from a data breach caused by a third-party...more
In some circumstances an insurer’s duty to settle may arise even in the absence of a demand by the claimant within policy. The recent case of Planet Bingo, LLC v. The Burlington Insurance Company, 2021 DJDAR 2510 (March 18,...more
The “notice-prejudice rule,” often applied in the context of occurrence-type policies, requires an insurer to prove that the insured’s late notice of a claim has substantially prejudiced its ability to investigate the...more