A Louisiana court recently denied an excess insurer’s bid for summary judgment, finding that the insurer’s interpretation of a pollution exclusion would lead to “absurd results.”

Continue Reading Louisiana Court Holds That Application of Pollution Exclusion Would Lead to Absurd Results

Equifax Inc. recently announced that it has agreed to pay up to $700 million to settle numerous government investigations and consumer claims arising out of a 2017 breach that exposed Social Security numbers, addresses and other personal data belonging to over 148 million individuals. Following the breach, Equifax faced investigations from the Federal Trade Commission, the Consumer Financial Protection Bureau, all 50 state attorneys general and consumers prosecuting nationwide multidistrict litigation. As part of the deal, Equifax will contribute approximately $300 million to compensate consumers, with the potential to increase to $425 million depending on the number of claims filed. Equifax also agreed to pay $175 million to state governments, plus another $100 million in civil penalties to the CFPB.
Continue Reading Equifax’s Hefty $700M Bill is a Powerful Reminder to Close Cyber & D&O Coverage Gaps

The United States District Court for the Southern District of Texas recently rejected a claim by a group of insurance companies (“Underwriters”) against American Global Maritime Inc. for more than $500 million that the Underwriters paid the named insured under an Off-Shore Construction Risk insurance policy for losses resulting from the an alleged off-shore oil rig failure.

Continue Reading Waiver of Subrogation Enforced, Denying Insurers Recovery Against Additional Insured in $500 Million Off-Shore Oil Rig Loss

A state-appointed panel advised last week that California should change the standard for determining whether utilities are liable for wildfires.  Under the current system, California’s Public Utilities Code § 2106 provides a private right of action by any person or entity that has suffered loss, damages, or injury caused by prohibited or unlawful acts of a public utility.  Relying on this statute, property owners have asserted wildfire-related claims directly against allegedly culpable electric utility companies.  Public utilities in California also face inverse condemnation claims arising out of wildfires.  Under inverse condemnation, where private property is taken for public use and later damaged by the state or its agency, the state or agency is strictly liable to the property owner.

Continue Reading California Commission Recommends Switching To Fault-Based Wildfire Liability Standard for Public Utilities

The Delaware Superior Court ruled that insurers could not rely on Written Consent and Cooperation clauses in directors and officers liability insurance policies to avoid coverage for settlements by Dole Food Company, Inc. (“Dole”) in shareholder disputes involving fraud in a go-private transaction.

Continue Reading Court Rejects Insurers’ Argument that Insureds Breached D&O Insurance Policies by Failing to Cooperate and Settling Lawsuits for $222 Million Without Consent

The cancellation of the first day of music mogul Pharrell Williams’s inaugural Something In the Water Music Festival (SITW) in Virginia Beach, Virginia due to stormy weather is a recent reminder of the importance of securing event cancellation and business interruption insurance to mitigate the significant economic risks posed by outdoor events.[1]

Continue Reading Hoping Pharrell Is “Happy” That He Obtained Event Cancellation Insurance For Something In the Water Festival

Upper Deck Co. has sued its general liability insurer, Liberty Mutual Fire Insurance Co., in California federal court last week, alleging that Liberty Mutual failed to satisfy its defense obligations in an antitrust lawsuit brought against Upper Deck by rival trading card maker Leaf Trading Cards LLC. According to the complaint, Liberty Mutual agreed that the allegations in Leaf’s suit triggered coverage under Upper Deck’s policy and acknowledged its duty to defend and Upper Deck’s right to independent counsel. However, Liberty Mutual stopped paying the defense fees of one of the firms Upper Deck hired, and also failed to pay the fees of a different firm.

Continue Reading Another Liability Insurer Is Sued For Failure To Pay Defense Costs After Acknowledging Its Duty To Defend

Insurance partner Michael Levine is teaming up with Hunton’s Michael Perry and Adam Solomon and Jones Day’s Lisa Ropple to discuss cybersecurity litigation and insurance coverage presentation for the Massachusetts Bar Association. The presentation, sponsored by the MBA’s Complex Commercial Litigation Section, will take place on Wednesday, March 20th at 4:30 pm at the MBA’s office in Boston. Topics will include:

  • General litigation claims arising from cybersecurity incidents and defenses available to companies facing these claims.
  • Safeguards to prevent cyberattacks from outside sources.
  • Insurance coverage issues arising out of cybersecurity incidents.


Continue Reading Hunton Insurance Partner Michael Levine to Present on Cybersecurity Litigation to the Massachusetts Bar Association

In an article appearing in CyberInsecurity News, Hunton insurance recovery partner, Michael Levine, comments on Zurich American Insurance Company’s attempt to invoke a so-called “war exclusion” as a basis for not paying business income losses suffered by snack food giant Mondelez International.  As Levine expains, so-called “war exclusions” have rarely been invoked and

Summary

Reversing a Texas Court of Appeals decision that allowed Anadarko’s Lloyd’s of London excess insurers to escape coverage for more than $100 million in defense costs incurred in connection with claims from the Deepwater Horizon well blowout, the Supreme Court of Texas held that the insurers’ obligations to pay defense costs under an “energy package” liability policy are not capped by a joint venture coverage limit for “liability” insured.  Anadarko Petroleum Corp. et al. v. Houston Casualty Co. et al., No. 16-1013 (Tex. Jan. 25, 2019).


Continue Reading Texas Supreme Court Holds Anadarko’s $100M Deepwater Horizon Defense Costs Are Not Subject To Joint Venture Liability Limits