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Occurrence Limits Under Multi-Year Policies: NJ Courts Are Changing Their Approach
In complex coverage cases involving 'long-tail' claims (such as asbestos bodily injury claims or property damage claims related to environmental pollution), decades of insurance policies can be put at issue. In many states, the policyholder's losses will be spread across the years in which the injury or property damage occurred on a proportionate basis, typically referred to as 'time on the risk' or pro rata allocation. E.g., Security Ins. Co. of Hartford v. Lumbermens Mut. Cas. Co., 826 A.2d 107, 116 (Conn. 2003); Sharon Steel Corp. v. Aetna Cas. & Sur. Co., 931 P.2d 127, 141 (Utah 1997); Insurance Co. of N. Am. v. Forty-Eight Insulations, Inc., 633 F.2d 1212, 1224-25 (6th Cir. 1980).
In New Jersey, a continuous trigger and a modified pro rata allocation apply to cases involving progressive injury or damage over multiple years. E.g., Carter-Wallace, Inc. v. Admiral Ins. Co., 712 A.2d 1116, 1123-24 (N.J. 1998); Owens-Illinois, Inc. v. United Insurance Co., 650 A.2d 974, 995 (N.J. 1994). In Carter-Wallace, the New Jersey Supreme Court explained that the policyholder's total loss would be apportioned across years based on the 'degree of the risks transferred or retained' during each year in which injury or damage took place. Id. at 1121-22 (quoting Owens-Illinois). Thus, if a policyholder purchased more coverage in a particular year, a greater proportion of the loss may be allocated to that year than to years in which the policyholder purchased less coverage. While this approach seems straightforward, complications can arise if the policyholder did not only purchase policies with 'one-year' terms, but also purchased multi-year policies (ie, single policies providing coverage for more than 1 year and often over multiple annual periods). If the policyholder purchased multi-year policies, is the policyholder entitled to a single occurrence limit for the entire policy period, or can it claim a separate occurrence limit for each annual period that the policy was in effect?
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Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.