Goldberg Segalla, Author at The Insurance & Reinsurance Report

August 27, 2018 General

“Made Whole” Doctrine Prevents Equitable Subrogation Where Insureds with Tortfeasors

In re September 11 Litigation,

World Trade Center Properties LLC et al. v. Certain Underwriters at Lloyd’s, London et al. (S.D.N.Y., August 2, 2018)

Judge Alvin K. Hellerstein of the Federal District Court in the Southern District of New York has, for years since the September 11th attacks, been assigned the countless actions dealing with the massive property damage resulting from the tragedy. This is the last such case, which involves insureds making a claim against their insurer’s recovery from a subrogation settlement.

The insureds …

August 22, 2018 Other Insurance

Just the Fax: New Jersey Rules that Actual Property Damage is Required for Violation of the Telephone Consumer Protection Act

Proof of a violation of the Telephone Consumer Protection Act (TCPA), without corresponding evidence of either “physical injury to tangible property” or “loss of use of tangible property,” is not enough for an insured to establish that the claims against it alleged “property damage” under a CGL policy, according to the New Jersey Appellate Division’s recent decision in Penn National Insurance Company v. Group C Communications, Inc., 2018 WL 3625424 (N.J. App. Div. July 31, 2018). In Group C Communications, the Appellate Division …

August 15, 2018 Emerging Issues

Illinois Appellate Court Reaffirms Trigger Date for Malicious Prosecution Offense Under Coverage B

In First Mercury Insurance Company v. Ciolino, the Illinois Appellate Court, First District waded into the sea-change concerning the trigger of coverage for malicious prosecution offenses under a liability policy. The First District joined the other districts to consider the issue, departed from the Seventh Circuit’s Erie prediction, and reasoned that the trigger date for malicious prosecution coverage will be similar under law enforcement liability and commercial general liability policies.

The facts giving rise to the coverage dispute stem from a lawsuit filed by …

August 14, 2018 Industry News

Compliance Deadline Approaching for NY Cybersecurity Regulation

A key compliance date for the NY Cybersecurity Regulation is quickly approaching. September 4, 2018 will serve as the third key implementation date for individuals and companies (Covered Entities) governed by New York’s Cybersecurity Requirements for Financial Services Companies (23 NYCRR Part 500). Unless the Covered Entity qualifies for one of the exemptions under 23 NYCRR 500.19, by September 4, all Covered Entities must have completed the following*:

create and maintain systems that can reconstruct material financial transactions to support and maintain the obligations of

July 26, 2018 Policy Conditions, Considerations, Construction, and Formation

Pennsylvania Courts Continue To Bar To Coverage For Defective Workmanship Claims

Insurance coverage disputes regarding faulty workmanship construction defects are common throughout the United States. In Pennsylvania, under the Supreme Court’s 2006 decision in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., property damage claims arising out of poor workmanship are not covered under typical CGL policies.

Recently, the court of Appeals for the 3rd Circuit followed Kvaerner, and ruled that a subcontractor’s defective workmanship claim was not covered. In Lenick Constr., Inc. v. Selective Way Ins. Co., No. …

July 18, 2018 Fraud / Industry News

Sixth Circuit Uses Every Tool in the Box To Build Case for Coverage for Defrauded Policyholder

July 12, 2018, we reported on the Medidata decision handed down by the Second Circuit in which the court found coverage for a claim resulting from social engineering fraud. We suggested the ruling in Medidata lacks persuasive power due to its unusual factual circumstances and atypical policy language. The Sixth Circuit’s decision in American Tooling Center, Inc. v. Travelers Casualty & Surety Co. of America, No. 17-2014, 2018 WL 3404708 (6th Cir. July 13, 2018), will have more persuasive power, but due to …

July 12, 2018 Fraud / Industry News

Second Circuit’s Decision Upholding Social Engineering Fraud Coverage Likely a Paper Tiger

In a case closely monitored by the insurance industry, the Second Circuit upheld in a non-precedential summary order a New York federal district court’s summary judgment finding coverage under the computer fraud coverage of a commercial crime policy. Medidata Solutions, Inc. v. Fed. Ins. Co., No. 17-2492, 2018 WL 3339245 (2d Cir. 2018). Although the policyholders are apt to tout the decision as a seismic victory, the atypical policy language and factual circumstances should greatly limit its persuasive value.

As background, the insured, Medidata …

July 6, 2018 Uncategorized

Streaming Insight: Q&A With Jonathan L. Schwartz

Goldberg Segalla marked spring 2018 with the launch of Timely Notice, our podcast that addresses in an engaging and easily digestible way many of the critical and cutting-edge issues facing insurance industry professionals as well as in-house and outside legal counsel.

We sat down with Jonathan L. Schwartz, partner in Goldberg Segalla’s Global Insurance Services Practice Group, to discuss what inspired him to create the podcast, what listeners will learn, and what the future holds.

What sparked the idea for Timely Notice, …

June 8, 2018 Policy Conditions, Considerations, Construction, and Formation

A Subpoena May Be a Claim if the Insured says It Is

Whether or not there is coverage under a D&O Policy to pay for expenses incurred responding to a governmental subpoena is a recurring question that nets an inconsistent answer from courts around the country. While the question is often fact specific, an Illinois Federal Court held that a D&O policy provided coverage for expenses incurred responding to a subpoena, and in fact, looked outside of the subpoena itself to make that finding. In Astellas US Holding, Inc. v. Starr Indem. & Liab. Co., Judge …

May 29, 2018 Uncategorized

Landers and Restoring Time for Appraisals

Troy Beecher, an experienced insurance coverage attorney in Goldberg Segalla’s Orlando office, scrutinizes a recent decision from a Florida District Court of Appeal, Landers v. State Farm Florida Insurance Company, which liberalizes and encourages insurance bad faith litigation in Florida. Troy delves into the decision and why it undermines the purpose behind civil remedy notices. Troy otherwise discusses how the court neutered safeguards to a flood of bad faith action litigation stemming from property coverage disputes. Troy also shares his predictions on how the …