Everyone loves a good courtroom drama. So just imagine this pitch: henchmen of an evil dictator hack their way into a movie studio computer system. Once inside, they steal the most sensitive personal information of the studio’s stars, executives and employees. Their most intimate secrets, spilled over the Internet. Who can help these poor souls? Why, the brave and hard working class action lawyers, that’s who. Through grit, pluck and lawyerly derring-do, our intrepid heroes soon bring the evil wrongdoers to justice. Think “The Manchurian Candidate” meets “Erin Brockovitch.”But real life is rarely like the movies, even when it involves the movies. Yes, Sony Pictures Entertainment (“SPE”) did suffer a cyberattack that disclosed employees’ personally identifiable information (“PII”). The data breach was allegedly perpetrated by North Korean hackers in retaliation for … [Read more...] about It’s A Wrap! Sony Pictures Data Breach Case Settles Without A Hollywood Ending For The Plaintiff Class
Settling with insurance company without a lawyer
Twenty-seven disciplinary proceedings brought by the CME Group – touching upon EFRPs, transfer trades, money passes, position limits, block trades and disruptive practices – provided an abrupt reminder that a failure to comply with relatively technical rules can result in fines as well as corporate distraction while employees address regulatory inquiries and actions. Moreover, the book on the fate of customers, secured creditors and unsecured creditors of MF Global, Inc., the defunct FCM that went belly-up in 2011, appears to be finally closing with a relatively good outcome under the circumstances. As a result, the following matters are covered in this week’s edition of Bridging the Week: FC Stone Companies and Goldman Sachs Receive Largest Fines in CME Group’s 27 Disciplinary Actions Cascade (includes Compliance Weeds);Defunct FCM MF Global to Pay Unsecured Creditors up to 95% of Their Allowed Claims (includes My View);Florida Lawyer Settles CFTC … [Read more...] about Bridging the Week: July 20 – 24 and 27, 2015 (27 Enforcement Actions; More MF Global; Lawyer Settles with CFTC; Dodd-Frank Five Years Later)
What is a “White waiver?”In 1986, the California Supreme Court held that an insurance company’s low-ball offer of settlement to a policyholder made during litigation over an unpaid claim was admissible to prove the carrier’s bad faith in the same litigation, notwithstanding the settlement privilege. Insurance companies dislike this ruling because it prevents them from shrouding unreasonable settlement positions in the cloak of the settlement and litigation privileges. Insurance companies also, and not infrequently, require what is known among insurance lawyers in California as “a White waiver” before discussing settlement with an insured during a bad faith action.Should the policyholder comply with this request? Does White really unwind the settlement and litigation privileges for bad faith settlement communications by an insurance company? Questions to consider in response to a request for a “White waiver”Whether to give a White waiver … [Read more...] about Insurer Asks for a White Waiver as a Condition to Talking Settlement. Should You Do It?
In general, if a lawsuit is covered or potentially covered by a commercial general liability (CGL) insurance policy, the insurer has a duty to defend that claim. If the insurer provides that defense without reserving its rights to deny coverage, the insurer is entitled to select defense counsel and control the defense. But when the insurer defends under a reservation of rights, that reservation may create a conflict of interest between the insurer and the insured.The leading Illinois Supreme Court case on this subject is Maryland Casualty v. Peppers, decided in 1976. According to Peppers, when an insurer defends an insured, but reserves the right to deny coverage based on an exclusion in the insurance policy (the applicability of which could be established during the course of defending the insured), there is a conflict of interest that gives the insured the right to select independent counsel to defend it at the insurer's expense. But the Illinois Supreme Court did not say … [Read more...] about Don’t Gamble with My Money: When a Lawsuit Seeks Damages in Excess of Policy Limits, What Are the Insured’s Rights in Illinois?
For the middle-market businessperson, there are few things more exasperating than responding to threatened lawsuits or defending against lawsuits, not to mention the related expense. Good business practices, consistent internal controls and prudent loss-control protocols can help reduce the risk that your business will be sued. But in the real world, it is impossible to eliminate accidents, mistakes, misunderstandings or any of the other uncontrollable events that often result in lawsuits. No matter how meritless or trivial a lawsuit might be, you have to spend money to defend against it. That's where having the necessary insurance coverage—and understanding your right to a defense—can make all the difference.One of the most important components of commercial liability insurance is the coverage provided for the defense of claims (including lawsuits) against the insured. A key element of liability insurance policies (which cover liabilities owed to third parties), defense … [Read more...] about Policyholders and the Right to a Defense: Don’t Be Left Holding the Bag