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The “Texas Two-Step” Bankruptcy Strategy

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Panelists John Cruciani and Scott Davis, both Partners with Husch Blackwell gave an insightful presentation on the Texas Two-Step Bankruptcy, explaining how it works and providing an overview of the Texas corporate statutes from which the maneuver flows. They also discussed the high profile case of Johnson & Johnson (“J&J”), as well as an update on other ongoing cases, … [Read more...] about The “Texas Two-Step” Bankruptcy Strategy

Litigation Funding and Social Inflation: An Increasing Concern for Insurers

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On a sweltering day in NYC, AIRROC opened its Summer Membership Education Day with a panel of experts that described our own industry climate change: the social inflation that is driving nuclear verdicts and run-away inflation in losses.  Just as climate change increases the intensity of storms, the social climate surrounding litigation has increased the potential for more … [Read more...] about Litigation Funding and Social Inflation: An Increasing Concern for Insurers

The End of ‘Bellefonte’: ‘Global Re’ and the Proper Reading of Facultative Reinsurance Contracts

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In late December 2021, the U.S. Court  of Appeals for the Second Circuit issued a blockbuster decision grappling with the Erie doctrine, stare  decisis, and overturning a decades-old precedent. It was the fourth appellate decision in a lengthy litigation reminiscent of Dickens’ Bleak House. This was not litigation about constitutional rights or environmental justice, but a case … [Read more...] about The End of ‘Bellefonte’: ‘Global Re’ and the Proper Reading of Facultative Reinsurance Contracts

Florida and Punitive Damages

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Have you noticed an influx of hearings in Florida to add punitive damages to complaints lately? Here's why: Asserting a punitive damages claim is a strategy often utilized by plaintiffs to obtain financial discovery from commercial defendants to which they would otherwise not be entitled. The Florida Supreme Court amended Florida Rule of Appellate Procedure 9.130 regarding … [Read more...] about Florida and Punitive Damages

Drop Anchor or Anchors Aweigh? Making the First Offer In Negotiations

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Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 3 Years ago, my wife and I took a trip to Mexico. The worker in me was ready to kick back and put down a tequila or two. But my inner negotiator was anxious to test his skills at a Mexican mercado (market). Who would win the test of wills between the novice American buyer and savvy … [Read more...] about Drop Anchor or Anchors Aweigh? Making the First Offer In Negotiations

Challenges of Reserving Federal Black Lung Liabilities

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Christine M. Fleming and Alex M. York, of Milliman provided a compelling presentation on the complexities of federal black lung claims at the AIRROC Spring Membership meeting.  As coal continues to decline - the number of jobs nationwide fell to about 40,000 last year from 175,000 in the mid 1980s - you would anticipate that the number of claims for black lung occupational … [Read more...] about Challenges of Reserving Federal Black Lung Liabilities

2 High Court Cases That Can Alter Arbitration Playing Field

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Each year, the U.S. Supreme Court faces a large number of certiorari petitions seeking review of a wide variety of civil disputes. The court in recent years has consistently found room on its docket to address disputes regarding the Federal Arbitration Act, which sets out the statutory scheme for the judicial facilitation of dispute resolution through arbitration. Two … [Read more...] about 2 High Court Cases That Can Alter Arbitration Playing Field

Buying English Law When You Place London Market Reinsurance?

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Cedents based in the United States should be aware that they may be buying (or, indeed, have already bought years ago) English law to govern interpretation of their reinsurance contracts placed in the London market. In a US court presiding over a lawsuit involving reinsurance placed in London, English law can apply despite the American forum. In any given case, whether the … [Read more...] about Buying English Law When You Place London Market Reinsurance?

Prepare, Prepare, and Also, Prepare.

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Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 2 We all know the scenario: You’ve been chasing your counterparty for weeks, trying to get either payment, a meeting, or a substantive response.  On your end, you reviewed the file and calculated how much you want and, perhaps, how much you might settle for, based upon YOUR analysis … [Read more...] about Prepare, Prepare, and Also, Prepare.

Getting to Yes: Where It All Began

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Series: Negotiation Strategies: Tips for Establishing Connection and Optimizing Results We all do it every day: with our spouses and significant others, with our children, co-workers and counterparties, with people getting on and off of an elevator, and even while jockeying with other cars in traffic.  The “it” is negotiation: exchanging verbal or non-verbal messages with a … [Read more...] about Getting to Yes: Where It All Began

Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance

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The selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust … [Read more...] about Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance

Reinsurance Agreements and Initial Disclosures

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A recent decision by a North Carolina federal court adds to a list of cases requiring insurance company defendants in coverage actions to produce reinsurance agreements as part of their initial disclosures under Federal Rule of Civil Procedure 26. Although the list may be growing, many of these decisions adopt an overly simplistic, one-size-fits-all approach that fails to … [Read more...] about Reinsurance Agreements and Initial Disclosures

California Supreme Court clarifies the special relationship

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On April 1, 2021, the California Supreme Court entered an opinion in Brown v. USA Taekwondo, which involves sexual abuse-related claims against USA Taekwondo (“USAT”) and the United States Olympic Committee (“USOC”). Lowers Courts’ Decisions From 2007 to 2013, then-minors Yazmin Brown, Kendra Gatt and Brianna Bordon (collectively, “Plaintiffs”) were sexually abused by their … [Read more...] about California Supreme Court clarifies the special relationship

Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process

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Umpire selection is one of the most important aspects of a reinsurance (or any other) arbitration because it can have a significant impact on the outcome of your case. Traditionally, parties have utilized the “strike and flip” method of umpire selection where the parties nominate a specified number of candidates, strike all but one of the other side’s candidates and then select … [Read more...] about Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process

The latest challenge to Ohio’s allocation law

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Nearly two decades ago, the Supreme Court of Ohio adopted an “all sums” approach to allocate insurance coverage for progressive injuries among multiple triggered policies. In Goodyear Tire & Rubber Co. v. Aetna Cas. & Sur. Co., the Court held that “when a continuous occurrence of environmental pollution triggers claims under multiple primary insurance policies, the … [Read more...] about The latest challenge to Ohio’s allocation law

Mind On His Money and His Money On His Mind: New York District Court Judge Affirms Arbitral Award Arising Out of Dispute Over Royalties Owed to Rapper Snoop Dogg

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Perhaps Snoop Dogg should stick to gin n’ juice, as the rapper’s foray into promoting cognac and brandy products caused him to become the subject of a decade-long arbitral dispute, which was finally resolved last month. On January 25, 2021, a New York district court judge affirmed a nearly $2 million arbitration award against French cognac distiller Cognac Ferrand SAS … [Read more...] about Mind On His Money and His Money On His Mind: New York District Court Judge Affirms Arbitral Award Arising Out of Dispute Over Royalties Owed to Rapper Snoop Dogg

What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes

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Photo by Pixabay on Pexels.com You remember the Covered Agreements entered into between the US and the UK and the US and the EU to deal with Brexit and Solvency II and international financial standards, right? Well, the New York Department of Financial Services has noticed a proposed regulation implementing the new credit for reinsurance rules required under the Covered … [Read more...] about What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes

Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

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Letter agreements are usually confidential.  As a result, there is a dearth of practical guidance on when, and how, to use them. Porter Wright Morris & Arthur LLP helps fill that gap.  Your settlement negotiation checklist should include this entry:  “whether, and how, to use a letter agreement.”  A letter agreement—if well-drafted—can … [Read more...] about Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

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