Features

Highlights of the latest insurance cases from around the country.

Coverage litigation in the case of <i>Congoleum Corp. v. ACE American Ins. Co.</i> (<i>'Congoleum'</i>), Dkt. No. MID-L-8908-01 (N.J. Super. Ct. May 18, 2007), provides a cautionary tale for insureds tempted to attempt a strategy to foist financial responsibility for asbestos or other mass tort liabilities upon their insurers.

On Aug. 29, 2005, at approximately 6:00 a.m., Hurricane Katrina struck New Orleans. Only two hours later, the levees in New Orleans gave way. As the third-strongest hurricane to make landfall in the United States, Hurricane Katrina was responsible for taking more than 1836 lives and causing more than $81.2 billion in damages ' making it the most expensive natural disaster in U.S. history. The hurricane displaced 500,000 families and destroyed 275,000 homes. James A. Knox, Jr., <i>Causation, The Flood Exclusion, and Katrina,</i> 41 Tort Trial &amp; Ins. Prac. L.J. 901, 902 (2006). The insurance industry has paid more than $40 billion in connection with Hurricane Katrina claims. David Dankwa, <i>New Orleans Port Trumpets Insurance Dispute at RIMS</i>, A.M. Best: BestWire, May 2, 2007. The Insurance Services Office estimates 1.6 million claims will be made ' including residential property, commercial property, vehicle, and vessel claims. <i>See</i> Knox, <i>Causation</i>, at 905.

This article continues the theme of an article I wrote in late 2004 concerning <i>U.S. v. Martignon</i>, 346 F. Supp. 2d 413 (S.D.N.Y. 2004), in which the district court for the Southern District of New York found that 18 U.S.C. &sect;2319A (the 'anti-bootleg statute') was unconstitutional on the ground that Congress had exceeded its delegated power to legislate copyright law when it enacted the statute. My previous article observed that <i>Martignon</i> implicated several important and fundamental public policies in reaching its decision, among which are the protection of intellectual property, constitutional limits on congressional power to enact laws, freedom of expression as protected by the First Amendment, and the necessity of laws threatening a citizen's liberty to be definite and within a legitimate ambit of congressional authority to act.

Features

Ethical prohibitions impact the common practice of almost every active trademark lawyer regarding his or her use of private investigators to collect information from third parties. However, the scope of permissible conduct is not always clearly defined. For instance, when a search report reveals one possible bar to your client's adoption of the mark, such as a nine-year-old federal registration by an individual who does not appear to have a Web site, can you or your investigator contact this person and devise some plausible explanation for the reason that you want to know if the mark is still in use? Or if you discover that a company appears to be infringing your client's trademark, can you send someone pretending to be a customer, but who asks all sorts of questions relevant to proving infringement that the ordinary consumer is highly unlikely to raise? Does it matter if the person you or your investigator makes contact with is a low-level sales clerk or the owner of the company?

'The No. 1 thing that helps us manage our outside counsel costs is longstanding relationships,' says James H. Miller III, senior vice president and general counsel for Georgia Power, the largest operating unit of Southern Co. 'Our principal law firm, Troutman Sanders, has been our law firm for a long time. They know as much or more about our company as some of our own executives do because they've been there longer. In a sense, they are our institutional memory.'

Features

There was a time when electronic services were supposed to replace books and lower costs. They've done neither. Instead, fees continue to rise each year &mdash; well beyond the rate of inflation, say law firm librarians (licensing fees are typically covered by confidentiality agreements). Surveyed librarians expressed dissatisfaction on pricing issues especially with the big-two online providers, Reed Elsevier Plc's LexisNexis and Thomson Corp.'s Westlaw.

Features

Just as corruption saps the entire GDP of many countries, it can destroy the profitability of a firm's overseas (or, for that matter, overall) business. My 'Confronting Corrupt Practices' article in <i>A&amp;FP</i>'s June 2007 edition surveyed some aspects of anticorruption training that law firms should consider.