Within the space of just a few days, two federal appellate courts – the Fifth and Sixth Circuits – issued separate opinions consider D&O insurers’ obligations to advance defense expenses. The Fifth Circuit entered its March 15, 2010 decision in the high-profile Stanford Financial insurance coverage dispute. The Sixth Circuit’s March 11, 2010 opinion was
Data Privacy and Security: The “Stealth Issue” of 2010?
Data security and privacy could be the "stealth issue of 2010," according to a recent report. Despite the intense focus on financial and related issues during the current economic crisis, a variety of legislative and regulatory initiatives suggest that data privacy and security issues necessarily will become a top corporate priority. These developments have important
Guest Post: More About D&O Insurance Coverage for Special Litigation Committee Expenses
In recent posts (here and here), I have discussed the issues surrounding coverage under D&O insurance policies for investigative costs and special litigation committee expenses. In response to these posts, readers Jeff Kiburtz and Cindy Forman of the Santa Monica law firm of Shapiro Rodarte & Forman have submitted the following guest blog post.
Can Insurers Really Just Cancel Bank D&O Insurance?
The problems facing many banks in the current economic environment are well-documented. For troubled banks’ directors and officers, the banks’ D&O insurance may represent a last line of protection. But what if the insurers could just cancel the policies? Surprisingly, many bank D&O insurers have that right under their policies, and while cancellation is rare
Court Orders Stanford Financial D&O Insurers to Advance Defense Expenses
The individual defendants in the various Stanford Financial-related SEC enforcement and criminal proceedings have been engaged in a long-running and procedurally complicated battle over whether the firm’s D&O insurers must advance the individuals defense expenses. In a sweeping January 26, 2010 opinion (here), Southern District of Texas Judge David Hittner rejected the grounds
EPL Insurance: A “Surprise” Coverage Decision
Every now and then, I read a court opinion on a coverage issue, and though I can understand how the court reached its decision, I still find the outcome surprising and troubling. A January 19, 2010 per curiam opinion from the Connecticut Supreme Court (here) involving a coverage dispute under an Employment Practices
Insurance Coverage for Special Litigation Committee Expenses and Other Web Notes
In an earlier post (here), I wrote about a December 30, 2009 ruling in the MBIA coverage litigation that special litigation committee investigation expense are covered under a D&O liability insurance policy. As I anticipated, the decision has proven to be controversial.
Two law firms that traditionally act as coverage counsel for D&O
Insurance Coverage for Special Litigation Committee Expenses and Other Web Notes and Updates
In an earlier post (here), I wrote about a December 30, 2009 ruling in the MBIA coverage litigation that special litigation committee investigation expenses were covered under a D&O liability insurance policy. As I anticipated, the decision has proven to be controversial.
Two law firms that traditionally act as coverage counsel for D&O
EEOC Discrimination Complaints Near Record Highs in 2009
According to its January 6, 2010 press release (here), the U.S. Equal Employment Commission announced that near record numbers of workplace discrimination charges were filed with the agency in the fiscal year ending September 30, 2009. As reflected in the agency’s statistical presentation, there were 93,277 charges filed in FY 2009, which
Insurer Must Defend Broker Sued in Connection with Stanford Group Fraud
In a January 4, 2010 order (here), Southern District of Texas Judge Nancy Atlas held that an insurance broker’s Professional Liability Insurance insurer must defend the broker and one of its employees in connection with claims arising out of the Stanford Group fraud.
Background
The Bowen Miclette & Britt insurance brokerage and