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BatesCarey LLP Successfully Argues that FELA Does Not Apply to Rail Switching Company and Parent Company

October 2012 | Category: Recent Successes

Smith v. Rail Link (District Court of Wyoming 2011) (February 2011), aff’d (10th Cir. 2012)

The plaintiff injured her ankle while on the job and obtained workers' compensation benefits. She attempted to increase her recovery by filing a FELA claim against both her employer, a rail switching company, and a parent company. BatesCarey LLP successfully moved for summary judgment on the grounds that FELA did not apply to the rail switching company and that FELA did not apply to the parent company because it was not the claimant's employer. A Wyoming federal court agreed with BatesCarey LLP's positions and granted summary judgment in favor of BatesCarey LLP's client. The Tenth Circuit affirmed the trial court's decision and issued its first published decision addressing these issues.

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Insured Sanctioned for Seeking Umbrella Coverage Before Exhausting Primary Coverage

February 2012 | Category: Recent Successes

Lenex Steel Co. v. Rockhill Ins. Co. (Ill. Cir. Ct. 2012) 

The insured was obligated to pay a $1.2 million settlement of an underlying bodily injury claim. The insured and one of its primary insurers argued that "additional insured" coverage applied under the client's umbrella policy, and that the client was therefore obligated to contribute to the settlement. Adopting BatesCarey LLP's reasoning, an Illinois state court held that the client umbrella insurer had no obligation to contribute to the settlement because all primary coverage, including the insured's own primary coverage, was not exhausted. The court not only granted summary judgment, but at BatesCarey LLP's request it also sanctioned the insured and its counsel for pursuing a frivolous lawsuit by awarding the client its reasonable attorneys' fees and costs.

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Court Agrees that Bankruptcy Trustee’s Action is “Non-Core” in IndyMac Bancorp Case

November 2011 | Category: Recent Successes

Alfred Siegel v. Certain Underwriters at Lloyds (C.D. Cal. 2011)

A California federal court agreed with BatesCarey LLP's arguments that a declaratory judgment action filed by IndyMac Bancorp's bankruptcy trustee was "non-core" to the bankruptcy. Therefore the court found that judicial efficiency supported withdrawing the reference to the bankruptcy court. After the reference was withdrawn, the trustee voluntarily dismissed the action.

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Court Says Umbrella Insurer Has No Duty to Settle When Primary Insurer Controls Defense

August 2011 | Category: Recent Successes

Kevin Fox v. Will County State’s Atty. (N.D. Ill. 2011)

BatesCarey LLP's client issued an excess policy to an insured county, which was sued, along with two sheriff deputies, for civil rights violations by a man falsely accused of murder. The primary insurer paid for the county's and deputies' defense, which resulted in an uncovered multi-million dollar punitive damage award. The insured's assignee argued that the excess insurer had failed in bad faith to accept a settlement offer and was required to pay the punitive damage award. BatesCarey LLP argued that the excess insurer did not control the defense and thus could not have breached any duty to settle. An Illinois federal court adopted BatesCarey LLP's reasoning on summary judgment and held that the excess insurer was not obligated to pay the punitive damage award.

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Court Agrees that “Follow the Fortunes” Does Not Require Payment of Additional Expenses

May 2011 | Category: Recent Successes

Pacific Emp. Ins. Co. v. GLOBAL Reinsurance Corp. (E.D. Pa. 2011)

BatesCarey LLP obtained judgment for its reinsurer client by convincing a federal court that the "follow the fortunes" doctrine did not require the reinsurer to pay expenses in addition to the limits of liability on a facultative certificate. By moving for judgment on the pleadings, BatesCarey LLP foreclosed the cedent from taking any discovery and obtained victory immediately after the cedent filed its responsive pleading.

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Court Agrees that “Follow the Fortunes” Does Not Expand Coverage of Reins Contract

October 2010 | Category: Recent Successes

Arrowood Surplus Liurancenes Ins. Co. v. Westport (D. Conn. 2010) (January 2010), aff’d (2d Cir. 2010)

The cedent sought reinsurance for $6.7 million for claims that arose from occurences taking place after the termination of the reinsurance contract. The cedent argued that the "follow the fortunes" doctrine bound the reinsurer to pay any claims under a reinsurance policy, regardless of the reinsurance contract limitations. The district and appellate courts, however, fully agreed with BatesCarey LLP's argument that the client reinsurer had only agreed to cover risks insured by the cedent during the time limits of the reinsurance contract.

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