Ommid C. Farashahi has been appointed as a General Committee Vice-Chair of the ABA Tort Trial and Insurance Practice Section Professionals' Officers' and Directors' Liability Committee for the 2014-2015 fiscal year. The one-year term appointment comes with many responsibilities and obligations. The Committee meets several times a year, and is open to all 25,000 TIPS members. Further information regarding the ABA's Tort Trial and insurance Practice Section can be found here: http://www.americanbar.org/groups/tort_trial_insurance_practice.html. Congratulations to Ommid!

On May 28, 2014, the Delaware Supreme Court held that a "demand letter" could not be the basis of a D&O insurance claim because it was unripe. XL Specialty Ins. Co. v. WMI Liquidating Trust, Case No. N12C-10-087 (Del. S. Ct May 28, 2014). By way of background, Washington Mutual, Inc.'s ("WMI") Liquidating Trust sent a demand letter to WMI's former directors and officers (D&Os) seeking damages from them for downstreaming $500 million from WMI to its banking subsidiary Washington Mutual Bank, even though, according to the Trust, WMI was insolvent at the time of the downstream. WMI purchased two consecutive D&O insurance policy towers covering the D&Os. The insurers in the first tower accepted coverage for the downstreaming claim and are advancing defense costs. The insurers in the second tower (including AXIS) assert coverage is unavailable because, among other things, the downstreaming claim relates back to claims made in the first tower. The Trust wants the insurers in the second tower to cover the downstreaming claim because the first tower is almost exhausted. The Trust has not yet sued the D&Os. Instead, the Trust sued the second tower insurers so that it can determine whether suing the D&Os would be a worthwhile endeavor. The Trust filed its first lawsuit against the second tower insurers in March 2012 in Delaware bankruptcy court. The bankruptcy court dismissed the Trust's complaint on jurisdictional grounds in October 2012. The Trust then re-filed its complaint in Delaware state court a few days later, asserting causes of action against the second tower insurers for breach of contract, bad faith, and declaratory judgment. The second tower insurers moved to dismiss the Trust's complaint, arguing that the Trust did not have standing to sue the insurers and that the Trust's lawsuit against the insurers was not ripe. The trial court denied the motion to dismiss but certified the ruling for interlocutory appeal to the Delaware Supreme Court, which accepted the appeal.

On May 15, 2014, the Superior Court for the District of Columbia granted a motion to dismiss filed by several D&O and E&O insurers, holding that a professional services exclusion relating to one of the insured's affiliated companies barred coverage entirely for the various underlying matters. Carlyle Inv. Mgmt., L.L.C. v. ACE Am. Ins. Co., Case No. 2013 CA 003190 B (D.C....

On May 23, 2014, the U.S. District Court for the Western District of Washington held that, where a "Claim" was first made during the first of two consecutive claims-made-and-reported polices, but not reported until the second policy, no coverage was available under either policy. Great Am. Ins. Co. v. Sea Shepherd Conservation Soc'y, Case No. 13-CV-1017 (W.D. Wash. May 23, 2014)....

John A. Husmann published an analysis of noteworthy decisions concerning insurance coverage for construction defect claims handed down in the first quarter of 2014. These cases have dealt with, among other things, the "occurrence" requirement, contractual liability exclusion and "other insurance" clauses. A copy of the article can be found here.

Adam H. Fleischer published an article in the London publication, Insurance Day, entitled, "US brain injury litigation threatens future of American football." In the article, Mr. Fleischer analyzes the recent spate of litigation arising from chronic traumatic encephalpathy (CTE) experienced in athletes suffering blows to the head - an issue front and center in the NCAA, NFL and high school football programs across the nation. Insurers can expect claims and costs to rise as CTE becomes more easily diagnosable, and the resulting litigation continues to grow. The article is attached here.

On March 6, 2014, David M. Alt spoke at the Claims Litigation Management Conference on "Reservation of Rights and the Insured's Right to Independent Counsel." The conference was part of CLM's ongoing training seminars for insurance professionals. The presentation spanned several topics concerning Independent Counsel, including the proper protocol for acknowledging a claim, assessment of the insurer's duty to defend, the insured's right to independent counsel, state-specific statutory requirements for reservation of rights letters, waiver and estoppel, and bad faith issues. David M. Alt speaks regularly at litigation and insurance conferences, as well as in-house for a number of our insurer clients.

Maria G. Enriquez has been selected as a Top Rated Lawyer in Chicago by the rating service, ALM. ALM rates top lawyers around the nation to be included in a magazine that is distributed with the Wall Street Journal, the American Lawyer, and the National Law Journal, among others. An online version of the magazine will also be available at www.law.com and www.chicagotribune.com. Congratulations Maria!

Savers Prop. & Cas. Ins. Co. v. Indus. Safety & Env’t. Servs. Inc. (N.D. Ind. 2014)

On March 25, 2014, the U.S. District Court for the Northern District of Indiana granted summary judgment in favor of our client on a retractive coverage date issue. 

Maria G. Enriquez teaches a section on "Liability Insurance – Defense and Settlement" in a course on Insurance & Regulation at Wake Forest University School of Law. Ms. Enriquez taught for three days concerning defense and settlement issues in connection with insurance issues. She also spoke at a Lunch & Learn at Wake Forest concerning recent developments and topics in insurance law.