Labels, Shmabels: Recent Decisions Confirm No “Restitution / Disgorgement” Exclusion in Management Liability Policies

Ever since the Seventh Circuit’s 2001 decision in Level 3 Communications, Inc. v. Federal Insurance Co., 272 F.3d 908 (7th Cir. 2001), insurance companies have argued that settlements constituting restitution or disgorgement are uninsurable on grounds of public policy. While numerous decisions since 2001 have undercut this defense, two recent decisions out of the New … Continue Reading

End to long-running dispute over uninsurability under D&O insurance

By Christopher Kuleba and Matthew B. Weaver on 6 December 2021 Posted in D&O, E&O, Professional Liability, Financial Insurance Coverage, Insurance Coverage

Putting an end to a 12-year-old dispute between J.P. Morgan Securities’ predecessor, Bear Stearns & Co., and several of its insurers, on November 23, 2021, New York’s high court held that J.P. Morgan’s $140 million payment to the Securities and Exchange Commission (SEC) did not constitute an uninsurable “penalty” under J.P. Morgan’s excess directors & … Continue Reading

‘Sorry, But You Have Nothing in Common’: The New York Court of Appeals’ Recent Rejection of the ‘Common Interest Doctrine’ Outside the Context of Litigation

By Jay M. Levin, Ann Kramer, Andy Moss, Anthony B. Crawford, Patrick T. Rowe and Ryan A. Green on 22 June 2016 Posted in Commercial General Liability, Corporate and Transactional Insurance Coverage, Cyberliability, D&O, E&O, Professional Liability, Insurance General, Insurance News of Note

The New York Court of Appeals, the state’s highest court, recently rejected an attempt to apply the “common interest doctrine,” an exception to the general rule that communicating privileged information to a third party waives the attorney-client privilege, to situations where separately represented parties communicate attorney-client privileged information in connection with transactions or other circumstances … Continue Reading