The California Supreme Court has five civil cases scheduled for its April calendar, each addressing important questions of labor and insurance law. Independent Contractors or Employees – Class Actions: In Ayala v. Antelope Valley Newspapers, Inc., S206874, the court will address the determination of whether and when common issues dominate in a class action in … Continue Reading
Adding its voice to a continuing national debate, the California Supreme Court has adopted the minority rule and held that tort damages for past medical expenses are limited to those amounts actually paid and accepted as full payment for the services provided, when such amounts are determined by an existing agreement with the plaintiff’s … Continue Reading
On January 18, 2011, the Eleventh Circuit Court of Appeals in Essex Insurance Co. v. Zota (.pdf) brought an end to seven years of litigation and four appellate proceedings, when it affirmed a final declaratory judgment entered in favor of a surplus lines insurer, Essex Insurance Company, following a jury trial. Although the Eleventh Circuit’s … Continue Reading
Insurance – In Century-National Ins. Co. v. Jesus Garcia, the court held that a fire insurance policy could not exclude coverage for innocent insureds because of the intentional acts of another insured; in this case the intentional act of the son setting fire to his parents house. The policy excluded coverage based on the intentional … Continue Reading
An insurance policy required that the insured "immediately record the specifics of the claim" and "see to it that we receive written notice of the claim . . . as soon as practicable." The insured waited 27 months before giving its insurer written notice of a defamation suit. The Appellate Court held that the insured … Continue Reading
At long last, the Ninth Circuit Court of Appeals issued its opinion in the Uhm v. Humana, Inc. (.pdf), matter, finding the Medicare Act’s exhaustion requirements and preemption provision barred all of the plaintiffs’ common law claims. (– F.3d — (9th Cir. 2010).) Originally, the court issued an opinion two years ago, but vacated the … Continue Reading
On May 28, 2010, the Texas Supreme Court granted petitions for review in the following cases: Anglo-Dutch Petroleum Int’l v. Greenberg Peden P.C.—This case concerns the construction of a contingency fee agreement and the circumstances under which a court can conclude that an agreement is ambiguous. Hyde Park Baptist Church v. Turner—This case concerns the … Continue Reading
The Florida Supreme Court recently decided, in a case of first impression, that a cause of action for third-party bad faith against an indemnity insurer cannot be maintained when the insurer’s actions were not a cause of the damages to the insured or when the insurer’s actions never resulted in exposure to liability in excess … Continue Reading
The 87th Annual Meeting of the American Law Institute was called to order this morning by President Roberta Cooper Ramo. After the traditional opening remarks by the President of the American Bar Association, Carolyn B. Lamm, ALI Director Lance Liebman announced two new projects on which the ALI will soon begin work, on Election Law and … Continue Reading
The California Supreme Court has scheduled oral argument in seven civil cases, five at the end of May and two in Los Angeles at the beginning of June. These hearings should address a wide variety of issues, including: Do employees have a private right of action against employers who take some of the tips? See … Continue Reading
Appellate Strategist has posted several times in the last week about names being discussed as possible nominees to replace retiring Justice John Paul Stevens. But a list of names, however important, says little about the nominees. We therefore begin our series of short profiles of those whose names top the list. We begin with Carlos Moreno, an Associate Justice … Continue Reading
On April 9, the Texas Supreme Court granted petitions for review in the following cases: Offshore Specialty Fabricators v. Wellington Underwriting Associates. The case addresses whether an all-risk insurance policy covers weather stand-by charges incurred by the insured. XTO Energy Inc. v. Smith Production Inc. The case will determine whether joint operating agreements for oil … Continue Reading
Add yet another appellate opinion to the growing list of California courts that have cut punitive damage awards on constitutional excessiveness grounds. In this one, Amerigraphics, the jury awarded $3 million in punitive damages in an insurance bad faith case. The trial court cut that number to $1.7 million, but according to the California Court … Continue Reading
With a recent employment decision, the California Supreme Court has handed insurance companies a compelling new argument, potentially limiting their exposure to punitive damages in bad faith cases. The question is: when is an insurance company subject to punitive damages for the acts of an employee/ adjuster in connection with the handling of a single … Continue Reading
The problem of coverage for the so-called "innocent insured" is a recurring one. The issue arises when there is more than one insured on the policy and one commits an act that would bar coverage. Does that act bar coverage for all, or only for the intentional actor? In California, this problem has reared its head … Continue Reading
Insurance brokers in Florida can now be liable to insurance companies which suffer a loss as a result of the broker’s own fraud or negligence in providing information in an application material to the issuance of a policy. An appellate court in Florida has issued an opinion applying section 552 of the Restatement (Second) of … Continue Reading
The California Court of Appeal has issued an opinion which, if allowed to stand, threatens to eat away at the once-settled body of law that prohibits third-party claimants who were injured by an insured from suing the insured’s insurance company for unfair claims settlement practices under California Insurance Code § 790.03. Over 20 years ago, the … Continue Reading
Can a California trial court reduce a personal injury plaintiff’s recovery for medical expenses to reflect the amount actually paid by his health insurer? That question matters a lot to attorneys, parties and insurers, trying to value claims and where appropriate, seek settlements in thousands of cases every day. For twenty years, the answer under California … Continue Reading
[UPDATED THROUGH APRIL 1, 2010] Assumption of Liability Exclusion. Where the insured is immune from tort liability as a government contractor and the alleged contractual liability mirrors tort liability, does the insurance policy’s assumption of contractual liability exclusion apply? Did insurer waive its coverage defenses by associating in the defense of the insured? Gilbert Texas Construction … Continue Reading
