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Louisiana Attempts to Shift Its Losses Under the 'Road Home Program' to the Insurance Industry
Insurers around the country are keeping a close watch on the Katrina Canal Breaches Litigation currently pending in the U.S. Court of Appeals for the Fifth Circuit. In 2007, the state of Louisiana filed this putative class action against more than 200 insurers (the “Insurers”), claiming that they failed to adequately pay or adjust homeowners' claims following Hurricanes Katrina and Rita, thereby causing the state to administer more funds under the “Road Home Program” than initially contemplated. The state of Louisiana now seeks to recover these funds by taking over the rights to approximately 150,000 claims for property damage caused by those storms.
The state claims this right by virtue of so-called “assignment agreements” executed by recipients of funds under the Road Home Program. These assignments were an express condition attached to the dispersal of funds under the Program and purported to assign to the state all of the recipient's claims and future rights to payment under any policy of casualty, property damage or flood insurance covering the damaged property. On the basis of these “assignment agreements,” the state seeks to pursue additional recoveries from the Insurers to remedy an estimated $1 billion shortfall in funding for the Program. The state will pursue these additional recoveries even where the insured is satisfied with the amount paid, has already filed a separate lawsuit, or has settled with its insurer. If successful, the state will be in a position to re-open thousands of claims that had been long since resolved, potentially exposing the Insurers to additional sums in future liabilities on top of the approximately $40 billion that has been paid out to date.
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.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
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.
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.