The authors, Robert Chesler, Dennis Artese, and Jamie O'Neill of Anderson Kill examine recent court decisions and ongoing cases that have brought to the forefront the critical issue of the reach of pollution exclusions in insurance policies.
Studies have shown that “underground climate change” is affecting ground soil conditions, causing structural strains on buildings and exacerbating cracks and defects in walls and foundations. The authors, Dennis Artese, Ethan Middlebrooks, and Thomas Dupont analyze permutations of policy language and state law that may affect coverage for damage caused by underground climate change, including how state law treats anti-concurrent causation clauses, whether “human-caused” exceptions to earth movement exclusions may apply to underground climate change, and whether “abrupt collapse” exceptions to exclusions for building collapse may apply when undetected structural damage triggered by underground climate change triggers collapse. As the authors note, "there are numerous arguments in favor of coverage under all-risk property insurance policies for losses related to underground climate change".
The Cannabis Employment Law Patchwork with Keya Denner Maryland and Missouri are the latest states to legalize recreational cannabis for people 21 and older. Voters came out in favor of legalization in the November 2022 midterms, bringing the total recreational jurisdictions to 22 states and the District of Columbia. Voters in North Dakota, South Dakota, and Arkansas, however, decided against recreational marijuana. It remains legal for medical reasons in all five states. In the employment context, both recreational and medicinal uses raise questions about protections for employees who use the drug legally. Which states are enacting those protections? What do multi-state employers need to do? What about drug testing? As a requirement to get a job and as a requirement to keep your job? What about this: who is going to say whether a worker is impaired? Will there really be hall monitors trained in spotting your high? For answers to these questions and more, listen to my interview with Keya Denner, a partner at Constangy, Brooks, Smith & Prophete LLP. Keya is an experienced litigator who has been practicing labor and employment law for almost 20 years. Few attorneys nationwide match Keya’s expertise in the area of legal cannabis and its impact on the workplace. He has counseled Fortune 500 companies in the retail, hospitality, and global logistics spaces [...]
The Authors Robert D. Chesler (rchesler@andersonkill.com) is a shareholder in Anderson Kill's Newark office. Bob represents policyholders in a broad variety of coverage claims against their insurers and advises companies with respect to their insurance programs. Bob is also a member of Anderson Kill's Cyber Insurance Recovery group. Bob has served as the attorney of record in more than 30 reported insurance decisions, representing clients including General Electric, Ingersoll-Rand, Westinghouse, Schering, Chrysler, and Unilever, as well as many small businesses including gas stations and dry cleaners. He has received numerous professional accolades, including a top-tier ranking for Insurance Litigation: New Jersey in Chambers USA: American's Leading Lawyers for Business, which dubs him a "dominant force in coverage disputes" and cites a client who calls him "a dean of the insurance Bar; one of the brightest in writing about and analyzing insurance coverage." Amy Weiss (aweiss@andersonkill.com) is a law clerk pending admission in Anderson Kill’s New York office. She focuses her practice on insurance recovery, exclusively on behalf of policyholders. While attending the Benjamin N. Cardozo School of Law, Amy worked as a Summer Associate at Anderson Kill and a Judicial Intern for the Honorable Nicholas G. Garaufis at the United States District Court for the Eastern District of New York. She served as Senior Articles Editor for the Cardozo [...]
According to the online Covid Coverage Litigation Tracker (CCLT) run by Penn Law there have been more than 2,300 insurance coverage cases filed over denial of claims relating to Covid-19. Restaurants and bars were hardest hit by the pandemic and so led the way in seeking – and being denied – coverage, too. They are also leading the way in suing their insurers. The top five insurers in the defense position are Chubb Limited at #5, then #4 Lloyds of London, #3 Cincinnati Financial, and #2 Zurich. And in the #1 position facing the most coverage suits is Hartford. The insurance industry started off strong when this litigation began, winning the vast majority of the coverage suits. And they continue to do well, scoring with the argument that many of the claims do not involve actual property damage. Government closures don’t cause property damage, they argue. Courts have largely been siding with the carriers – but not all. Policyholders, a tenacious bunch, appear to be chipping away at the body of law in this suddenly expanding category. A recent case involving a New Orleans restaurant against Lloyd’s was penciled into the win column for carriers by a trial court , but an appeals court erased it and wrote the policyholder a narrow 3-2 victory. The appeals court said the language [...]
The Authors Scott P. DeVries (sdevries@huntonak.com) is a special counsel in the Hunton Andrews Kurth LLP’s Insurance Coverage group in the firm’s San Francisco office where he exclusively represents policyholder clients. An experienced trial and appellate lawyer who has served as lead counsel in landmark appeals in the field of insurance coverage in the California Supreme Court, the Ninth Circuit, and the California Court of Appeal, as well as high-value jury trials, Scott routinely represents clients throughout the country seeking recovery from their insurers on a wide range of insurance issues arising under first-party property policies, comprehensive general liability policies, directors and officers policies, EPLI policies, crime policies, crypto and digital asset policies, and cyber policies. Yosef Itkin is an associate in Hunton Andrews Kurth LLP’s Insurance Coverage group in the firm’s Los Angeles office. His practice focuses on representing and advising corporate policyholders in complex insurance coverage matters. Interviews with leading attorneys and other subject matter experts on new twists in the law and how the law is responding to new twists in the world. Wildfire Claims and Coverage "The wildfires are causing enormous losses for innumerable businesses on the West Coast. Often, you should be able to work with your adjuster to reach a satisfactory resolution. But where needed, you [...]
The Authors * Cort T. Malone (cmalone@andersonkill.com) is a shareholder in the New York and Stamford offices of Anderson Kill and practices in the Insurance Recovery and the Corporate and Commercial Litigation Departments. He represents policyholders in insurance coverage litigation and dispute resolution, with an emphasis on commercia general liability insurance, directors and officers insurance, employment practices liability insurance, advertising injury insurance, and property insurance issues. Jade W. Sobh (jsobh@andersonkill.com) is an attorney in Anderson Kill’s New York office. Jade focuses his practice on insurance recovery, exclusively on behalf of policyholders, as well as regulatory and complex commercial litigation matters. Interviews with leading attorneys and other subject matter experts on new twists in the law and how the law is responding to new twists in the world. Biometric Privacy Laws: Companies Will Need Insurance as Protection From New and Expanding Liability "Businesses may look to various types of insurance policies for protection from the sudden and ever-increasing liability under present and soon to pass biometric data privacy laws, including commercial general liability insurance, employment practices liability insurance, cyber insurance, and directors & officers (D&O) insurance." Abstract: As more states follow Illinois in enacting biometric privacy laws, the risk that companies will be hit with lawsuits and extensive damages awards [...]
The Author William G. Passannante is co-chair of Anderson Kill’s Insurance Recovery Group and is a nationally recognized authority on policyholder insurance recovery in D&O, E&O, asbestos, environmental, property, food-borne illness, and other insurance disputes, with an emphasis on insurance recovery for corporate policyholders and educational and governmental institutions. Interviews with leading attorneys and other subject matter experts on new twists in the law and how the law is responding to new twists in the world. Asymmetrical Combat: Bad Faith Liability in Insurance Recovery Cases "Insurance policies are a unique product that requires the policyholder perform first—by paying insurance premiums—while the insurance company’s performance—the payment of the claim amount—is delayed until the insurance company determines to do so." Abstract: Policyholder counsel see claims that an insurer violated its duty of good faith and fair dealing is an essential tool in leveling the playing field in policyholder–insurer disputes, especially in high-stakes litigation. Insurance companies write the policies, employ lobbyists, exchange information with each other, and, of course, have more experience handling claims. So, the author writes, bad faith allegations bring more balance to the relationship and provide a disincentive to “the profitable breach of the insurance promise.” He discusses above-policy limits risks for insurers, as well as attorneys’ fees, interest on unpaid [...]
Strategies for Maximizing Insurance Recovery for Climate Change–Related Loss and Damage Abstract Losses from natural catastrophes are costing many tens of billions as year, from hurricanes and tornadoes to record-breaking rainfall and floods. Whether the insurance industry will or can provide coverage for all of the devastating effects of climate change (or, as some might put it, a new and calamitous phase in our earth’s existence) only time will tell. In the meantime, policyholders must cross their Ts if they expect coverage. In this article the author shares insights on the complex but essential task of documenting and valuing post-storm losses. Author Dennis J. Artese (dartese@andersonkill.com) is a shareholder in the New York office of Anderson Kill P.C. His practice concentrates on insurance recovery litigation, with an emphasis on securing insurance coverage for first-party property losses, construction accidents, and third-party liability claims. About The Journal on Emerging Issues in Litigation is a co-production of HB, Fastcase, and Law Street Media. You can also hear the complementary (and complimentary) Emerging Litigation Podcast wherever podcasts appear. For questions, contact Tom Hagy, Editor in Chief, at Editor@LitigationConferences.com.
Remediating, Insuring, and Litigating PFAS Claims Abstract PFAS are a group of chemicals found in a variety of products (e.g., Teflon®) and have been used widely in industrial and environmental processes (e.g., oil recovery, firefighting). They do not break down, and over time can accumulate in the body and the environment. While largely no longer used in the United States, they continue to be used internationally. Studies have shown they have adverse health effects on humans and animals. In this article the authors discuss the history and impact of PFAS, insurance coverage for claims relating to PFAS contamination, the practice of “insurance archaeology,” maximizing insurance coverage, and, finally, existing and anticipated litigation arising from environmental damage and bodily harm from PFAS. Authors Dr. Jaana Pietari, PhD, MBA, PE (jpietari@ramboll.com), Senior Managing Consultant with Ramboll Group, has more than twenty years of professional and academic experience in the fate and transport of contaminants, the reconstruction of environmental releases to groundwater and sediments, and environmental forensics. Jim Fenstermacher, PE (jim.fenstermacher@ramboll.com), is a Subject Matter Expert on PFAS environmental fate, transport, and regularly interfaces with academia, provides branding, and supports business development efforts regarding PFAS issues. Dr. Michael Bock, PhD, MS (mbock@intell-group.com), Managing Director at The Intelligence Group, has more than twenty-five years of experience in environmental consulting with a specialization in [...]
Surfside Condo Collapse: A 360-Degree Insurance Coverage Analysis Abstract The horrific and fatal collapse of Champlain Towers South in the summer of 2021 not only shook the ground in Surfside, Florida, but it brought into question the integrity of structures everywhere. If professionals in the construction, real estate, and building management industries were relaxed about signs of structural decay before, they are not anymore. The insurance industry also has reasons to worry, as potentially responsible players turn to their policies to defend or indemnify them for claims for accidents causing losses including from property damage, personal injury, or death. In this article the authors evaluate the factors that are addressed when coverage determinations are made, as well as the various types of policies that come into play. Authors Allen R. Wolff (awolff@andersonkill.com) is a shareholder in Anderson Kill’s New York office, where he concentrates on the intersection of construction litigation and insurance recovery. Allen is co-chair of the firm’s Construction Industry Practice group and Corporate and Commercial Litigation Practice group. He advises and represents policyholders—building owners, developers, contractors, retailers, municipalities, financial institutions, hospitality businesses, condominium associations, and tenants’ associations—in a range of insurance coverage disputes. Allen’s colleagues, Ethan W. Middlebrooks (emiddlebrooks@andersonkill.com) and Jason Kosek (jkosek@andersonkill.com), are also attorneys in Anderson Kill’s New York office. They also concentrate on insurance [...]
To Pay or Not to Pay: Does Your Insurance Policy Cover Ransomware Losses? Abstract Ransomware attacks are a rapidly growing threat against organizations. Paying ransom demands is a risky proposition and may even lead to sanctions against the targeted company. Either way, the damage to a company’s operation and integrity can be cripplingly severe. Should a company suffer losses from cyber extortion, its insurance company will be one of the resources it turns to for relief. But with cyber coverage increasingly out of reach for some, policyholders may find coverage in more traditional coverages. In this article, the author evaluates the potential for coverage under several policy types, and underscores the importance of understanding policy language, the relevant law, and the potential regulatory ramifications of meeting ransom demands. Author Pamela D. Hans (phans@andersonkill.com) is the managing shareholder of Anderson Kill’s Philadelphia office. Her practice concentrates on insurance coverage exclusively on behalf of policyholders. Pam is also a member of the firm’s COVID Task Group and Cyber Recovery Group. About The Journal on Emerging Issues in Litigation is a co-production of HB, Fastcase, and Law Street Media. You can also hear the complementary (and complimentary) Emerging Litigation Podcast wherever podcasts appear. For questions, contact Tom Hagy, Editor in Chief, at Editor@LitigationConferences.com.
