Author: Thomas F. Segalla

Uncategorized

The Devil’s In the Details: Practical Consequences Of Medical Malpractice Reform

It is likely that most readers would agree that the Obama Administration’s efforts to enact health care reform remains the most prominent domestic issue debated among elected officials and indeed, their constituents.  Regardless of one’s position regarding the necessity and/or wisdom of this proposed change, there is no escaping the existence of the debate. Certainly, there is no shortage of pundants, editorials, and white papers weighing in on the issue. As the debate rages, it seems that any conversation regarding health care reform inevitably …

Continue Reading
Arbitration

Confidentiality Agreement Executed as Part of Arbitration Not Subject to Arbitration

Trustmark Insurance Company v. John Hancock Life Insurance Company
(N.D.Ill. January 21, 2010)
 
The parties to a reinsurance contract disagreed regarding whether certain retrocessional business was part of the reinsurance contracts.  As a result, they entered into arbitration.  As part of the arbitration, the parties entered into a Confidentiality Agreement under which documents and the ultimate findings were subject to confidentiality.  The arbitrators also signed the Confidentiality Agreement.
 

After that arbitration, another dispute arose and the parties again turned to arbitration.  One of
… Continue Reading
Arbitration

Second Circuit Remands $34M Jury Verdict Against AIG

AXA Versicherung AG v. New Hampshire Ins. Co.

(S.D.N.Y. Oct. 6, 2009)

 

A federal judge remanded a $34 million jury verdict against AIG and its subsidiaries for fraudulent inducement involving reinsurance facilities. On appeal, AIG argued that the verdict could not stand because the plaintiff’s claims should have been arbitrated or, alternatively, that they should have been tried by the bench, not a jury. The plaintiff countered that AIG waived its right to arbitration. It also argued that a jury trial was appropriate because …

Continue Reading
Uncategorized

CaseWatch: Insurance Cases for October 9, 2009 Issue

Download Accufleet, Inc. v. Hartford Fire Ins. Co.

Download Altimari v. Sun Life Assurance Co. of Canada

Download American Soc’y for Tech.-Israel Inst. of Tech. v. First Reliance Standard Life Ins. Co.

Download Baggett v. Automobile Association of America 

Download Black v. Long Term Disability Insurance 

Download Blue Cross and Blue Shield of Montana v. Montana State Auditor and Commissioner of Insurance 

Download Boggs v. Great Northern Ins. Co. 

Download Celina Ins. Group. v. Yoder & Frey, Inc. 

Download Empire …

Continue Reading
Disclaimers and Reservations of Rights

Insurer Must Defend Insured In Alleged Organ-Harvesting Scheme

Nationwide Mutual Ins. Co. v. Garzone

(E.D. Penn, September 17, 2009)

 

In this declaratory judgment action, the insurer sought to have the court render a decision on whether or not it has a duty to defend and/or indemnify its policyholders, providers of crematory services, for underlying claims involving the policyholder’s selling of body parts for cash.  The underlying claims alleged that the policyholders either intentionally or by their negligence participated in a scheme to harvest organs of deceased individuals without the consent of …

Continue Reading
Directors and Officers

District Court Blocks Stanford International Bank from Obtaining Defense Funds in Alleged Ponzi Scheme

SEC v. Stanford Int'l Bank

(U.S. Dist. Ct., N. Dist. of Texas, September 28, 2009)

 

Robert Allen, the alleged architect of the Stanford Ponzi scheme, sought to secure up to $90 Million in insurance funds to pay defense costs. Stanford had made an emergency application to an English court seeking the policy proceeds.

 

The court, claiming jurisdiction over the policies at issue entered an order enjoining “Allen Stanford and anyone acting in concert with him, including his attorneys, from taking further steps to …

Continue Reading
Bad Faith and Extra-Contractual Liability

Insurer Seeks to Stay Discovery on “Secondary” Coverage Claims for Bad Faith and Breach of Contract.

Intel Corp. v. American Guarantee & Liability Insurance Co.
(N.D. California, October 1, 2009) 
 
Insurer seeks to stay discovery in anti-trust dispute regarding insured's bad faith and breach of contract claims,  arguing they are secondary to the primary coverage dispute.  Over eight years, the insurer issued excess and umbrella insurance policies totaling $300 million in coverage.  The coverage action stems from what has been called by the insured's counsel as the "largest anti-trust case that has been filed in the United States."  The underlying action
… Continue Reading