Treesdale and Its Impact on Number-Of-Occurrences Analysis
November 30, 2006
The Third Circuit's <i>Treesdale</i> decision last year understandably drew considerable attention in coverage circles: It was apparently the first reported appellate decision holding that a years-long course of manufacturing asbestos products, resulting in numerous bodily injury claims, constituted a single occurrence. <i>Liberty Mutual Ins. Co. v. Treesdale, Inc.</i>, 418 F.3d 330 (3d Cir. 2005). The court's single-occurrence ruling was significant because it meant, in combination with other policy provisions, that the insurer was obligated to pay only a single per-occurrence limit under 10 consecutive policies in respect of its policyholder's entire asbestos liability. <i>Treesdale</i> has potentially broad application in a variety of long-tail liability contexts where per-occurrence limits may be the most important or even sole effective limit of liability. Add the fact that <i>Treesdale</i> was decided as a matter of law, and <i>Treesdale</i> qualifies as a landmark decision in the notoriously results-driven world of number-of-occurrences litigation.
Extrinsic Evidence: Examining California's Rules
November 30, 2006
Most insurance coverage litigation starts with a fundamental dispute over what an insurance policy means. Unfortunately, while California appellate courts have addressed the subject for decades, and while the California Supreme Court attempted to restate the basic principles, there still is considerable debate among litigants and courts as to how insurance policies are to be interpreted. Insurance carriers often contend that California is not as 'pro-insured' as it once was regarded. They often argue that insurance policies should be interpreted simply based on policy language, without reference to any external information, and that if the insured is 'sophisticated,' any ambiguity should be resolved against coverage. However, neither of these arguments is in accord with California law.
Flood of Litigation: The Water Damage Exclusion
November 30, 2006
On Aug. 29, 2006, Hurricane Katrina, one of the deadliest and costliest natural disasters ever to strike the United States, hit New Orleans and Mississippi. With winds recorded at over 135 mph, the hurricane caused severe damage to much of New Orleans and the surrounding areas. The worst was yet to come, however. Following the storm, the levees built to protect the city, which is mostly below sea level, failed to retain the water. This resulted in more than 80% of the city being flooded. This catastrophic flooding caused billions in damages and sparked the current storm of insurance coverage litigation.
Court Watch
November 30, 2006
Highlights of the latest franchising cases from around the country.
District Court Interprets Kentucky Franchise Covenants Not-to-Compete
November 30, 2006
In <i>Papa John's International, Inc. v. Rezko et al.</i>, 2006 WL 1697134 (N.D. Ill.), the U.S. District Court for the Northern District of Illinois was called upon to determine whether a post-term covenant not-to-compete was reasonable in scope. The defendant alleged that the covenant would bar him from the restaurant business nearly everywhere in the country. In the limited procedural posture of the case (a motion to dismiss), the court allowed the claim of unreasonableness to go forward.
Policy and Regulatory Outlook: 2007 ' Franchise Industry Eyes New Congress
November 30, 2006
With the recent Congressional elections returning leadership of the U.S. Senate and House to Democrats for the first time in more than a decade, the business community is keenly interested in the priorities of the new Congress. While it is apparent that Congress will initially focus on issues outside the direct domain of franchising (Iraq, Congressional ethics, etc.), numerous matters of importance to franchisors and franchisees are on the table, too.
In the Marketplace
November 30, 2006
Highlights of the latest equipment leasing news from around the country.
The Credit Agency Reform Act: What Leasing Companies Need to Know
November 30, 2006
Any equipment leasing or finance company desiring to access the debt capital markets must quickly become adept at dealing with a unique feature of that world: the credit rating and its gatekeeper, the credit rating agency. Entering this realm can be a jolt for finance officers used to the relationship-friendly, competitive environment of commercial banks. Dominated by two monoliths, Standard & Poor's and Moody's, the rating agency process is steeped in the clinical analytics of credit modeling. Rating agencies are viewed by many as academic in perspective and, to some, remote and obscure in their approach.
