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Insurer Permitted to Recoup Defense Costs Under Quantum Meruit Theory
Predicting what the Texas Supreme Court would do, the U.S. District Court for the District of Minnesota has allowed an insurer to recover defense costs expended in defending its insured in a liability action. Extrapolating from, and expanding on, a Court of Appeals of Texas opinion, the Minnesota court used a quantum meruit theory to allow the insurer to recoup its defense costs.
St. Paul Fire & Marine Insurance Co. v. Compaq Computer Corp., 2005 WL 1648684 (D.Minn.), was an action by St. Paul to recoup all expenses incurred in defending Compaq in a class action filed in Texas. The underlying class action was filed on Oct. 31, 1999 in federal court in the Eastern District of Texas alleging, among other things, that Compaq had sold computers with defective floppy disk controllers. At the time, Compaq was covered under a St. Paul technology policy, and Compaq tendered its defense to St Paul. By letter dated Nov. 24, 1999, St. Paul accepted the tender and acknowledged its duty to defend, subject to a complete reservation of all of its rights. On Jan. 31, 2000, St. Paul issued a second reservation of rights that stated:
St. Paul reserves the right to withdraw from Compaq's defense upon written notice to you and seek recovery of all fees and expenses incurred in defense of this matter, if it is later determined there is no coverage or duty to defend Compaq in this matter.
St. Paul then indemnified Compaq for more than $668,000 in defense costs and Compaq accepted each check. St. Paul eventually withdrew from the defense.
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.
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.
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.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."