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By Kevin M. Mattessich, Esq. and Todd D. Kremin, Esq. of Kaufman Dolowich & Voluck, LLP
Earlier today, in a highly anticipated decision, the New York Court of Appeals reversed its prior holding in K2 Investment Group, LLC v. American Guarantee & Liability Insurance Company. Today's ruling lays to rest the argument that a professional liability insurer "waives" the right to raise policy exclusions in a subsequent coverage dispute where it is alleged the insurer breached a duty to defend the underlying lawsuit. The original K2 decision emboldened policyholder lawyers to argue an insurer's purported failure to defend an insured without first obtaining a declaratory judgment ruling or awaiting a final determination of the underlying litigation somehow stripped an insurer of all rights under a policy. By vacating the June 11, 2013 decision in K2, the Court of Appeals makes clear that this argument has no merit.
Job Interview Problems & Solutions
By Michael Mercer, Ph.D. of Mercer Systems, Inc.
TWO TYPES OF JOB INTERVIEW QUESTIONS
Job interviews need to assess job applicants in two arenas: (1) Technical Knowledge & Skills and (2) Job-Related Personality Traits.
A recent article in "eFinancialCareer News" by Beecher Tuttle lists 12 questions financial asset managers asked business school students applying for finance jobs. Of the 12 questions, nine delved into Technical Knowledge & Skills (e.g., "How do you currently keep up with the markets?"). Only three questions aimed to uncover job applicants' on Personality Traits (e.g., "What is your biggest professional failure?").
New Chicago Ordinance Bans Smoking of E-Cigarettes Indoors
By Jody Wilner Moran, Esq. of Jackson Lewis P.C.
Effective April 29, 2014, a new Chicago ordinance will prohibit smoking of electronic cigarettes (or e-cigarettes) in enclosed public places and enclosed places of employment in the city. Chicago joins New York City and a handful of other jurisdictions (including the states of Arkansas, North Dakota, and Utah) to have included e-cigarettes in their indoor smoking regulations.
Where an Underlying Assigned Claim Against Third-Party Defendant is Dismissed, a Third-Party Complaint is Rendered Moot Because Damages are Not Recoverable from the Third-Party Defendant
By Thomas Paschos, Esq, of Thomas Paschos & Associates, P.C.
In Feingold v. Goddard, 2014 U.S. Dist. LEXIS 5975 (E.D. Pa. January 16, 2014), Plaintiff, an attorney, sued his former client, defendant Phillip Goddard, to recover allegedly outstanding fees for legal services and seeking partial assignment of Goddard's claim against State Farm Mutual Insurance Company. Plaintiff claims that he provided legal service to defendant Goddard for many years and that Goddard became indebted to him for expenses in excess of $75,000. Plaintiff alleges Goddard offered to assign plaintiff a portion of his interest in his tort claim against State Farm in order to pay the debt. Plaintiff provided that he "agreed to accept such assignment from [Goddard] with the proviso that if the assignment were ever invalidated by a court, defendant would remain liable to plaintiff for the full amount . . ."
Insurance Coverage Tip
Matthew Heilmann of Martin & Company
Cyber Liability Coverage
Reports by the FBI, Department of Homeland Security, and National Counterterrorism Center indicate that cyber attacks are going to become the most likely form of terrorism against the United States in years to come. Many are experiencing attacks on things such as computers, laptops and tablets. Information is being accessed and data is being lost, even in some cases businesses information is being encrypted and held at ransom. Sure this sounds terrible, but what if it were your business? Are all of your files backed up properly, do you know where they are being stored, and are they in a safe location? D&O Suits Reach Historic High: Economy to Blame? By Lila M. McKinley, Esq. and Elizabeth M Cristofaro, Esq. of Goldberg Segalla LLP The fallout from the 2007-2010 economic downturn is behind us, right? Nope; not so for the professional malpractice community in light of the many lawsuits arising from the recent market collapse. In fact, lawsuits relating to 2007-10 bank collapses in particular have increased dramatically and the primary targets are executives. According to a February 13, 2014 report which is available here, litigation against directors and officers of failed banks reached an all-time high in 2013. To make matters worse, many of those directors were forced to reach into their own pockets to absorb the costs.
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