District Court Upholds Insurance Carrier’s Position on Property Damage Claim Arising from Hurricane Katrina

Dairy America, Inc. v. New York Marine and General Ins. Co. (E.D. Cal. June 11, 2009) Plaintiff secured an ocean cargo policy from the insurer which included a clause stating that insurance “attaches to all shipments commencing on or after August 11, 2005 and prior to October 1, 2006, both days at 12:01 A.M. local standard time at place of insurance.”  The binder, however, lacked such an attachment clause.    Plaintiff assembled several dozen loads of milk powder for shipment to Havana, Cuba.  On
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Policyholder Direct Actions Against Reinsurers On the Rise? – Reexamining The Relationship With The Original Insured

In light of the growing volatility in the insurance industry, it should come as no surprise that there is an increase in the number of reinsurance lawsuits involving the original policyholder (or insured) and the reinsurer.  Traditionally, the original policyholder was rarely aware of the existence of the reinsurance agreement between its insurer and reinsurer.  Now, with the number of direct action lawsuits between the original policyholder and reinsurer growing, reinsurers must be aware of these recent decisions.  Attached please find our article
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Emerging Issue – Developing Coverage for Americans With Disabilities Acts Claims

Last week, California's highest court held that a restaurant is liable for an unintentional ADA violation. (Click here for more information on this decision). The decision again raises the issue of insurance coverage for ADA and similar claims. For an article addressing these issues in detail, click here. By Daniel W. Gerber and Carrie P. Appler http://www.goldbergsegalla.com/attorneys/Gerber.html http://www.goldbergsegalla.com/attorneys/Appler.html
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Vermont Passes “Historic” Legislation Regulating The Stranger-Originated Life Insurance (STOLI) Market

Vermont became the latest state to regulate and provide firm disclosure guidelines regarding the selling and marketing of stranger-originated life insurance policies.  This legislation is aimed at curbing the esclating schemes directed at seniors to part with their life insurance policies.  Often times, seniors are not given the necessary information to make an informed decision regarding the positives and negatives in selling their life insurance policy.  Florida and other states have already passed similar legislation.  Click here to Download Vermont.Stoli.Legislation  by Daniel W. Gerber and Kimberly E.
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50 State Comprehensive Toxic Tort Trigger-of-Coverage Report

With the dramatic increase in silica-related claims, it is essential that insurance carriers and insureds re-visit coverage issues unique to toxic tort actions.  It has been reported “at least 1.7 million U.S. workers are exposed to respirable crystalline silica in a variety of industries and occupations, including construction, sandblasting and mining.”  Below please find a comprehensive 50 state report detailing the current status of the trigger of cover rules in various jurisdictions throughout the United States.  Download Trigger.of.Coverage   by Thomas F.
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Courts are getting up to speed quickly on Electronically Stored Information (ESI) maintained by insurance companies

R & R Sails Inc. d/b/a Hobie Cat Co. v. Insurance Company of Pennsylvania, 251 F.R.D. 520 (S.D. Cal. 2008)     A fire destroyed the plaintiff’s manufacturing plant in Australia. The manufacturer sought in discovery “electronic or handwritten daily activity records/logs which are generally kept with an adjuster’s notes and telephone call records.” At a discovery hearing, the insurer's counsel maintained that “no daily logs or telephone records had been produced to Plaintiff because no daily logs or telephone records were maintained by Defendant’s insurance adjusters.” In response, “[t]he
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Court Imposes Constructive Loan Receipt Obligation in Bad Faith Case

Cargill Inc. v. Ace Am. Ins.   (Court of Appeals of Minnesota, May 26, 2009)     The state of Oklahoma sued Cargill for losses arising out of Cargill’s waste disposal practices. Cargill sought defense and indemnity from 50 insurers covering the time frame the disposal occurred. An insurer providing the defense sought a neutral loan receipt agreement with the policyholder. The policyholder refused. The court held that if an insured in bad faith refuses to enter into a neutral loan receipt agreement,
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Lloyd’s enforcement board publishes Notice of censure for Ark Syndicate Management (ASM) employees

A  recent Lloyd's Market Bulletin explains the facts surrounding censure of three person who, while moving to the employment of a competitor, breached of their obligations to their previous employer. Click here for the report. By Daniel W. Gerber and Jeffrey L. Kingsley http://www.goldbergsegalla.com/attorneys/Gerber.html http://www.goldbergsegalla.com/attorneys/Kingsley.html
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District Court Rejects Reinsurers’ Request to Change Venue

TIG Insurance Co. v. Century Indemnity Co. et al (Southern District of New York, June 4, 2009)   Philadelphia-based reinsurers submitted a motion to change the venue of a reinsurance dispute from the Southern District of New York to the Eastern District of Pennsylvania.  The reinsurers argued that pursuant to 28 U.S.C. §1404(a) Philadelphia would be a more convenient forum for themselves and for party and non-party witnesses.  Moreover, they argued that the locus of operative facts is in Philadelphia
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District Court Determined That Product Defects Attributed to Manufacturer Were Not “Occurrences” Under Excess Policies

National Union Fire Insurance Co. of Pittsburgh PA.v. Gerling America Ins. Co.et. al. (United States District Court, Middle District of North Carolina, June 2, 2009) This declaratory judgment action involved a declaration of the insurance obligation of various insurers in connection with underlying lawsuits alleging defects in impact-resistant window resins that the policyholder produced for various window and door manufacturers.  Specifically, National Union filed this action seeking a determination that it did not owe coverage under its umbrella policies on
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