<b>BREAKING NEWS</b> Supreme Court Hopeful Leaves Bench
May 10, 2006
Appeals Judge J. Michael Luttig, a Supreme Court contender and longtime fixture of the conservative legal landscape, made a sudden announcement on May 10 that he was leaving the U.S. Court of Appeals for the 4th Circuit immediately for the job of senior vice president and general counsel of the Boeing Co.
privacy update
May 09, 2006
FTC Sues Five Companies for Selling Cell Phone Records On May 3, the Federal Trade Commission ('FTC') sued five companies for obtaining cell phone records without permission from cell phone users and then reselling that information to third parties. The Commission's lawsuits are aimed at stopping sales of the cell phone records, and the FTC also is seeking to recover from the companies the revenue they earned from selling the phone logs. …
Case Briefs
April 28, 2006
Highlights of the latest insurance cases from around the country.
Availability of Attorneys' Fees in Coverage Litigation
April 28, 2006
As insurance coverage disputes, like all disputes, become increasingly expensive, cost continues to be an important factor in deciding whether to commence a lawsuit or arbitration in order to pursue insurance. While most states apply the 'American Rule,' which precludes recovery of attorneys' fees in litigation-coverage disputes, some jurisdictions have exceptions for prevailing insureds. This article highlights the major types of exceptions. In considering the possibility that fees may be available, practitioners should recognize that individual jurisdictions may apply exceptions that look similar but operate rather differently, and that important rights of recovery may be found in procedural rules or case law beyond the confines of insurance law. Careful analysis of conflicts of law may also be important since the right to collect fees in a case filed in a particular state or federal court may turn on its choice of law principles and whether a particular right to recovery is deemed substantive or procedural.
Fettering the Insurer's Privilege to Control the Defense It Is Duty-Bound to Provide
April 28, 2006
For more than 50 years, policyholders and their insurers have been struggling over the insurer's promise to defend and the insurer's control of the defense. Policyholders properly have been concerned that an insurance company that controls the defense of an action potentially covered by the carrier's duty to indemnify will use that control to avoid that very same indemnity obligation. In egregious cases where a lawyer hired by the carrier has abused his or her relationship with the insured ' the client ' so as to favor the lawyer's source of income ' the insurance company ' the courts have responded to protect the insured's interests. But most courts have ruled that such after-the-fact remedies are insufficient: They do not adequately compensate for the injury; meritorious claims are not pursued (in part because insureds may not discover the abuse); and the potential for this abuse alone undermines the dominant purpose of the insurance relationship ' to afford protection and peace of mind for the insured.
Evaluating Valued Policy Law After Katrina
April 28, 2006
Since first enacted in 1874 in Wisconsin, Valued Policy Law ('VPL') has become an important regulatory fixture in the insurance law of many states. At least 19 states have enacted some version of a traditional VPL. In its original formulation, VPL obliges an insurer that collected premiums for an insurable interest based on an assigned value to pay that predetermined value to the insured in the event of a total loss. That statutorily imposed obligation prevents insurers from collecting premiums on artificially inflated property values on the front end while paying insureds less than that amount after a total loss, based on actual values. VPL thus encourages insurers to investigate the actual value of the insurable interest and to collect premiums on that amount, thereby avoiding the hazards of over-insurance. Furthermore, by encouraging insurers to minimize variance between assigned values and actual values, VPL theoretically reduces insurance fraud by policyholders.
Case Notes
April 28, 2006
Recent rulings of interest to you and your practice.
Jury Hits Merck with $9M in Punitives
April 28, 2006
On April 11, a jury in Atlantic City, NJ, ordered Merck & Co. to pay $9 million in punitive damages to a user of Vioxx, finding the drug maker knowingly withheld data from federal regulators about the painkiller's cardiovascular risks. Merck withdrew Vioxx from the market in 2004 when a study showed it doubled heart attack risk after 18 months of use. The Atlantic City trial was the first involving plaintiffs who had used Vioxx longer than that period of time.
PA Court Declines to Apply 'Heeding Presumption' to Pharmaceutical Failure-to-Warn Cases
April 28, 2006
<b><i>Part One of a Two-Part Series.</i></b> Last December, the Pennsylvania Superior Court handed a sharp blow to pharmaceutical liability plaintiffs' lawyers in the state who have consistently argued that a 'heeding presumption' should apply to their failure-to-warn claims and, in effect, relieve them of the burden of proving causation. A unanimous three-member panel upheld the decision of the trial court awarding summary judgment to the defendant because the plaintiff 'presented no evidence that a different warning would have changed [the prescribing physician's] decision to prescribe [the drug at issue] for Appellant.' <i>Lineberger v. Wyeth</i>, 2006 PA Super. 35, at *24 (Pa. Super. Ct., Feb. 23, 2006).
Practice Tip
April 28, 2006
The Bush administration has adopted a new tactic in its ongoing efforts to create liability shields on behalf of various industries, including the pharmaceutical industry. Despite a number of failed legislative attempts at tort reform, on Jan. 18, the administration quietly enacted its own liability-shield agenda under the guise of federal pre-emption. A new U.S. Food and Drug Administration ('FDA') rule titled <i>'Final Rule: Requirements on Content and Format of Labeling for Human Prescription Drug and Biological Products'</i> (21 C.F.R. 201, 314 and 601), which goes into effect on June 30, 2006, extensively modifies the format of prescription drug information, commonly referred to as the 'package insert' and published in the Physician's Desk Reference', and will come with an attempt at broad federal pre-emption.
