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A Cautionary Tale: Reinsurer's Bad Faith Disavowal of Agreement Leads to Multiple Damages, Attorneys' Fees
On May 23, 2011, Judge Nancy Gertner of the U.S. District Court for the District of Massachusetts entered a judgment against a reinsurer, its controlling officer and the reinsurer's intermediary in the amount of $4.1 million for breach of contract, $4.1 million for double damages, $2.6 million for attorneys' fees and $1.6 million for prejudgment interest. The punitive elements of the judgment were awarded pursuant to the Massachusetts Unfair and Deceptive Trade Practices Act (“Chapter 93A”) due to the defendants' bad-faith disavowal of a reinsurance agreement. See Trenwick Am. Reins. Corp. v. IRC, Inc., __ F. Supp. 2d __, 2011 WL 570016, *24-28 (D. Mass. Feb. 16, 2011).
Trenwick reaffirms Judge Gertner's prior holding in Commercial Union Ins. Co. v. Seven Provinces Ins. Co., Ltd., 9 F.Supp.2d 49 (D.Mass. 1998), aff'd 217 F.3d 33 (1st Cir. 2000) that, where a “moving target” strategy is employed to coerce a favorable compromise of reinsurance obligations, the reinsurer's conduct may constitute a violation of Chapter 93A. Trenwick warns reinsurers and their officers not to turn what should be “a routine claim ' into a tortuous marathon.” Trenwick, 2011 WL 570016, at *3.
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.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.