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Can the Innocent Survive Rescission? The Innocent-Insured Exception to the Wrongful-Acts Exclusion
Professional liability policies typically exclude coverage for claims arising out of an insured's knowing, wrongful acts, but, in recognition of the fact that a single policy may extend coverage to multiple insureds working together in association, insurance companies sell the policies with language reinstating coverage for innocent insureds, those of the insureds who had no knowledge of the allegedly wrongful acts of their colleagues. Recently, this innocent-insured coverage has received scrutiny. In two decisions involving professional liability policies, courts have granted an insurer summary judgment, finding that the material misrepresentation regarding prior conduct of a member of an insured firm was grounds for rescinding the coverage of all of the insureds, including those who were innocent and unaware of the wrongdoing. TIG Ins. Co. v. Robertson, Cecil, King & Pruitt, No. 1:01CV00143, 2003 WL 253167 (W.D. Va. Jan. 31, 2003); First American Title Ins. Co. v. Lawson, 798 A.2d 661 (N.J. Super. Ct. App. Div.), appeal granted, 807 A.2d 191 (N.J. 2002). These decisions stand in marked contrast to recent decisions on similar issues by courts in Massachusetts and New York, confirming that innocent insureds are entitled to coverage following the exposure of a co-worker's covert wrongdoing. See In re Perrone, 284 B.R. 315, 320 (Bankr. D. Mass. 2002); Fuchsberg & Fuchsberg v. Chicago Ins. Co., No. 00 Civ. 3118 DLC, 2001 WL 484013, at * 7 (S.D.N.Y May 7, 2001), aff'd sub nom. Fuchsberg & Fuchsberg v. Galizia, 300 F.3d 105 (2d Cir. 2002); Holloway v. Sacks & Sacks, Esqs., 713 N.Y.S.2d 162, 164 (N.Y. App. Div. 2000).
Covert Wrongdoing By a Co-Worker
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.