Parties to business transactions frequently seek to protect themselves against specific financing, litigation and transactional risks through insurance. The types of insurance to protect business’s interests and risks in M&A is growing: Insurance for breaches of contractual representations and warranties have become increasingly common, both for buyers and sellers. Standard-form policies may provide coverage for … Continue Reading
Texas lawmakers are now on the fast track to restrict policyholders’ rights when their insurance companies fail to pay property insurance claims arising out of weather events, such as storms involving heavy winds and hail. Now that the Texas Senate has approved House Bill 1774, Governor Abbott is almost sure to sign it. Unfortunately, this … Continue Reading
What does it mean to call a fire “hostile”? This question has become increasingly important for insurance policyholders, such as those seeking coverage for fires and explosions following crude-by-rail or chemical-by-rail accidents. When an explosion or fire event results in death, personal injuries or property damage, insurance companies may rely on a pollution exclusion. These exclusions may contain … Continue Reading
Whistleblower lawsuits under the False Claims Act, also known as qui tam actions, have become more common in recent years. This is particularly so in heavily regulated industries and those in which the government routinely pays or reimburses costs, such as health care, pharmaceuticals, finance, construction and defense. Companies defending themselves against government investigations and … Continue Reading
This week, in a 5-1 decision resolving a certified question from the U.S. Court of Appeals for the Third Circuit, the Pennsylvania Supreme Court adopted the positions advanced by Reed Smith LLP on behalf of United Policyholders, concluding that policyholders are permitted to settle claims against them by assigning to plaintiffs and other claimants their rights to both statutory and common law-based bad faith claims against their insurance companies.… Continue Reading
On August 13, 2009, the City of Sterling Heights, Michigan received a check from United National Insurance Company for over $15.4 million, satisfying a judgment awarded by the federal district court for the Eastern District of Michigan and upheld on appeal by the Court of Appeals for the Sixth Circuit. Apart from this payment, United National … Continue Reading
