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Assignees of Bad Faith Claims May Recover Attorneys' Fees
In Essex Insurance Company v. Five Star Dye House, Inc., Docket No. S131992 (July 6, 2006), the California Supreme Court addressed whether the assignee of an insured's bad faith claim may recover its attorneys' fees in coverage litigation with the assignor's insurer. The court concluded that such an assignee may recover the amounts expended to pursue a claim for wrongfully withheld policy benefits.
In Essex, the underlying insured, Sanchez, was sued by Five Star Dye House, Inc. and sought coverage for the litigation from its insurer, Essex Insurance Company. Essex denied the claim. Five Star prevailed in the litigation and obtained a judgment for $1.35 million against Sanchez. In exchange for Five Star's agreement to delay enforcement of the judgment, Sanchez assigned to Five Star all of his claims against Essex. Essex then filed a declaratory relief action against both Sanchez and Five Star regarding its duty to defend Sanchez in the underlying action. Five Star cross-complained for, among other things, bad faith, and in addition to other damages, sought to recover its attorneys' fees expended in the coverage litigation.
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.
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.
As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
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.