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The Discoverability and Admissibility of Reserve Information
Insureds and insurance carriers typically dispute the discoverability and admissibility of evidence of a carrier's reserves. In Lipton v. Superior Court, 48 Cal. App. 4th 1599, 56 Cal. Rptr. 2d 341 (1996), the California Court of Appeal defined reserves, stating that they represent the amount anticipated to be sufficient to pay all obligations for which the insurance company may be responsible under the policy with respect to a particular claim. That amount necessarily includes expenses that are likely to be incurred in connection with the settlement or adjustment of the claim, as well as the legal fees and other costs required to defend the insured. Id. at 1613.
The Lipton court also stated that '[t]he main purpose of a loss reserve is to comply with statutory requirements and to reflect, as accurately as possible, the insured's potential liability.' Id. See also Cal. Ins. Code '923.5 ('reserves' are the amounts 'estimated in the aggregate to provide for the payment of all losses and claims for which the insurer may be liable and to provide for the expense of adjustment or settlement of losses and claims'); Treas. Reg. '1.832-4(b) (for federal tax purposes, insurance carrier reserves 'must be stated in amounts which, based upon the facts in each case and the company's experience with similar cases, represents a fair and reasonable estimate of the amount the company would be required to pay'); MacGregor Yacht Corp. v. State Comp. Ins. Fund, 63 Cal. App. 4th 448, 457, 74 Cal. Rptr. 2d 473 (1998) (an insurance carrier's standard for reserves that was based on a 'realistic evaluation of all information in the file which reflects the reasonably anticipated final costs' satisfies the carrier's duties under Insurance Code).
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
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.
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.
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.
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.