LexisNexis® Legal Newsroom
Responding to Independent Counsel Arguments Based on R.G. Wegman Construction Co. v. Admiral Insurance Co.

By William T. Barker, Partner, SNR Denton Counsel for insureds are likely to use the Seventh Circuit’s opinion in R.G. Wegman Construction Co. v. Admiral Insurance Co., 2011 U.S. App. LEXIS 679 (Jan. 14, 2011), as a basis to argue for broader rights of independent counsel than formerly recognized...

SNR Denton on Haley v. Allstate Insurance Co.: Does an Insurer's Duty of Good Faith Require It to Assist the Insured in Uninsured Motorist Litigation?

By Jennifer Yu Sacro and William T. Barker, Attorneys, SNR Denton In Haley v. Allstate Insurance Co. , a Washington federal court held that an insurer may incur bad faith liability in the course of defending an uninsured motorist action filed by its insured if the insurer fails to present at trial...

SNR Denton on Reasonableness of Insurer’s Delay in Offering Policy Limits Is Question of Fact: Allstate Insurance Co. v. Herron

By Ronald D. Kent, Partner, SNR Denton In Allstate Insurance Co. v. Herron, [1] Allstate had offered its policy limits, but not until after expiration of a time-limit demand. A jury found that Allstate had acted reasonably, and the Ninth Circuit affirmed in pertinent part. It found no abuse of discretion...

Reed Smith LLP on Avoiding Disproportionate Forfeiture of Insurance Coverage Through Doctrines of Waiver, Estoppel, Mend the Hold, Prejudice, and Good Faith and Fair Dealing

By Timothy P. Law and Lisa A. Szymanski, Attorneys, Reed Smith LLP This article discusses various doctrines applied by courts to avoid the technical forfeiture of insurance coverage. These doctrines include waiver, estoppel, "mend the hold," the requirement of prejudice, and the duty of...

The Texas Supreme Court Grants Rehearing in Ruttiger

By Nicholas Canaday, III, Shareholder, Downs Stanford, P.C. Re: Texas Mutual Insurance Co. v. Ruttiger , 265 S.W.3d 651 (Tex.App.-Houston [1 st Dist.] Jul 31, 2008) (NO. 01-06-00897-CV), review granted (Mar 12, 2010); Judgment Reversed, in part; Rehearing Granted (Feb. 17, 2012). Synopsis: ...

McCarter & English on Dealing with Conflicts of Interest Inherent in Retrospective Premium Policies

By Steven H. Weisman and Anne Matthews, Attorneys, McCarter & English, LLP There is an inherent conflict of interest created by retrospective premium policies not present in the more typical, guaranteed cost policy. In a guaranteed cost policy, the parties' interests are generally aligned...

California: Zombie Liens and Statute of Limitations

FREE ENEWSLETTER; SIGN UP TODAY HERE Here's a sneak peek of a recent noteworthy panel decision that will be added soon to the LexisNexis services: Liens; Medical; Statute of Limitations. WCAB affirmed WCJ’s order disallowing balance of lien claimant’s lien filed on 2/3/2011...

What Does "Good Faith" Mean for the EEOC?

The District of Hawaii is the latest federal court to address the obligations of the EEOC during conciliation before it files suit. In EEOC v. La Rana Hawaii, LLC, the court determined that the Ninth Circuit's decision in EEOC v. Pierce Packing required a "genuine investigation, reasonable cause...

Chancery Defines Good Faith for Purposes of Contract Law

Policemen's Annuity and Benefit Fund of Chicago v. DV Realty Advisors LLC , C.A. No. 7204-VCN (Del. Ch. Aug. 16, 2012). Issue Addressed: How to define "good faith" for purposes of a limited partnership agreement that required a good faith determination for removal of a general partner...

Duties of Reinsurers – New Appleman on Insurance Law Library Edition, Chapter 74

By Daniel W. Gerber, Jeffrey L. Kingsley, and Clayton D. Waterman Chapter 74 provides a comprehensive analysis of the duties, obligations and limits of reinsurers in reinsurance transactions. Section 74.01 begins by examining the duty of utmost good faith. Section 74.01[1] discusses the cedent's...

OCAHO Cuts I-9 Fine in Half: Siam Thai Sushi Restaurant

"ICE’s memorandum states that the baseline penalty was set at $935 for each I-9 because the violations involved 100% of Siam Thai’s workforce. ICE said it then mitigated the penalties by 5% each because of the small size of the employer and the absence of any unauthorized workers, but...

Is It the Defendant's Burden to Prove Good Faith As a Defense to Willfulness?

Willulness is the express statutory requirement for most tax crimes. (Some alternative formulation approaching if not equaling willfulness is required for the tax related crimes, such as tax obstruction or conspiracy; but I focus here on a crime that does have an express requirement of willfulness.)...

The Willfulness Element of Most Tax Crimes Not Present in All Tax Crimes

Practitioners and students of tax crimes know that most of the commonly charged tax crimes have an element of willfulness which the Supreme Court interpreted in Cheek to mean a voluntary intentional violation of a known legal duty. In other words, conviction requires that the Government prove that the...

California Court Holds § 998 Offer Exceeding Policy Limits Made In Good Faith

In its recent decision in Aguilar v. Gostischef , 2013 Cal.App. LEXIS 816 (Cal. App. 2d Dist. Oct. 11, 2013) [ enhanced version available to lexis.com subscribers ], a California appellate court had occasion to consider whether a claimant’s statutory settlement offer under California Code of Civil...

The Eastern District of California Holds That A Carrier May Have An Affirmative Duty To Attempt to Settle A Claim Against The Insured When It Is Presented With A Reasonable Settlement Opportunity

Travelers Indem. of Conn. v. Arch Specialty Ins. Co. , 2013 U.S. Dist. LEXIS 169453 (E.D. Cal. Nov. 26, 2013) [ enhanced version available to lexis.com subscribers ] In Travelers , the district court concluded that the carrier must act in good faith in response to reasonable opportunities to settle...

Good Opinion on Error in Not Giving Requested Good Faith Belief Instructions

Tax practitioners and students cannot be reminded too often on the importance of Cheek 's definition of willfulness - voluntary intentional violation of a known legal duty -- and Cheek 's holding that a sincerely held even if objectively unreasonable belief that the conduct is lawful requires...

Sellers Hit With $500,000 Judgment For Torpedoing Closing

Attorney’s Obnoxious Conduct At Closing Factor in Large Award Every now and then I have a contentious deal where I should be wearing a black and white referee’s shirt instead of a shirt and tie. I’m usually successful in getting everyone to calm down and close the transaction...

California Fair Claims And SIU Regulations Require Annual Training

You Must Comply With California Regulations by September 1 Fair Claims Settlement Practices Regulations All insurers doing business in California must comply with the requirements of California Fair Claims Settlement Practices Regulations (the “Regulations”) or face the ire of, and...

Court of Appeals Rejects Arguments that Instructions on Willfulness and Good Faith Were Reversible Error

In United States v. Basile , 2014 U.S. App. 12388 (3d Cir. 2014), here , the defendants, husband and wife, chiropractors, engaged an asset protection firm who put them into offshore entities and bank accounts to avoid tax. The defendants took other actions to obscure their income and avoid tax. The defendants...

When The Federal Govt Acts Badly, But Not Badly Enough To Show Bad Faith – What’s A Contractor To Do?

By: Robert K. Cox In the prior issue of this newsletter, we included an article on the high standard of proof and the practical considerations for a federal government contractor claiming that the federal government acted in bad faith in its contract dealings. You responded with the question, suppose...

California: Physical Injury That Is a Result of Work Related Stress

The ongoing confusion under McCoy of whether causation thresholds and affirmative defenses provided for in Labor Code § 3208.3 (lawful, good-faith, nondiscriminatory personnel action) apply to a physical injury that is the manifestation of work related stress In Stolp v. California Department...

California: Top 25 Noteworthy Panel Decisions (July–December 2015)

LexisNexis has picked the top “noteworthy” panel decisions issued by the California Workers’ Compensation Appeals Board during the period July through December 2015. The list features a number of decisions addressing the assignment and reporting of panel qualified medical evaluators...

New York: Court Affirms Board’s Finding that Claimant’s Stress Was Greater than That of Other Workers

A New York court affirmed an award to a charity’s caseworker that contended she sustained a mental injury based upon stress on her job. The court acknowledged that N.Y. Work. Comp. Law § 2(7) precluded claims for mental injuries based upon work-related stress resulting from a lawful personnel...

California: WCAB Panel Finds Defense Counsel’s Failure to Provide RFA to Claims Administrator Was Unreasonable

Sometimes common sense trumps strict application of UR rules In Czech v. Bank of America , 2016 Cal. Wrk. Comp. P.D. LEXIS --, the WCAB panel affirmed the WCJ’s finding that the defendant failed to timely complete utilization review (UR) pursuant to Labor Code § 4610 [ LC 4610 ] and...

California: Top 25 Noteworthy Panel Decisions (January-June 2016)

LexisNexis has picked the top “noteworthy” panel decisions issued by the California Workers’ Compensation Appeals Board during the period January through June 2016. The list features a number of decisions addressing utilization review time deadlines and reporting requirements, several...