A New Compliance Target and a New Risk: NLRB Takes Aim at Employee E-Mail Use
By Philip R. Voluck, Esq. and Anna M. Darpino, Esq. of Kaufman Dolowich & Voluck, LLP
As if the National Labor Relations Board's (the "NLRB") still recent intrusion into companies' social media policies were not enough of a new exposure, the NLRB is now focusing on regulating, i.e., expanding, employee use of their employer's e-mail system to engage in "free speech" as protected by Section 7 of the National Labor Relations Act (the "NLRA").More specifically, in Purple Communications, JD-75-13 (Bogas, ALJ, Oct. 24, 2013) the NLRB is seeking to overturn the Administrative Law Judge's ("ALJ") decision (which follows NLRB precedent) upholding an employer's right to prohibit employees from using company e-mail for anything other than legitimate business-related purposes.
New Jersey School Districts Defending Bullying Case Can Possibly Seek Contribution from Student Accused of Bullying and Parents
By David S. Sheiffer, Esq. and Jonathan E. Meer, Esq. of Wilson Elser Moskowitz Edelman & Dicker LLP
In New Jersey, can school districts defending a bullying case seek contribution from the students accused of bullying and their parents? Yes, said a recent New Jersey Superior court decision in V.B. a Minor by his Parent and Guardian v. Flemington-Raritan Regional Board of Ed, et al., Docket No. HNT-L-95-13 (NJ Superior Court, Hunterdon County, March 12, 2014).
D&O Insurance Carrier Barred from Seeking Declaratory Judgment on Coverage
By Donald A. O'Brien, Esq. of Hinshaw & Culbertson LLP
OneBeacon Midwest Insurance Co. v. Federal Deposit Ins. Corp., et al., No. 12-0106 (N.D. Ga., March 5, 2014)
Insurance Company issued a claims-made D&O policy to the bank that was not a duty to defend policy, but rather placed the duty on the insurer to advance covered defense costs. The Bank went into receivership and the FDIC served claims on former directors and officers (the D&O defendants) for alleged breach of duties to properly manage the affairs of the bank which led to $38 million in losses. Insurance Company did not receive notice of the FDIC claim until after the end of the extended reporting period in the policy.
California Court of Appeals Holds Insureds Not Entitled to Additional Payments Under the FAIR Plan
By Marc Zimet, Esq. of Jampol Zimet LLC
The Court of Appeals recently ruled that an insured is not entitled to additional payments in excess of its policy limits. The case, St. Cyr et al. v. California Fair Plan Association (2014) - - Cal.App.4th - - , was decided January 31, 2014 and confirms the general rule that a court should not rewrite an insurance policy and permit an insured to receive more than it had paid for.
By Jackson Lewis P.C.
The IRS has issued Notice 2014-19 and a set of Answers to Frequently Asked Questions ("FAQs"), providing new guidance to sponsors and administrators of qualified retirement plans on the treatment of same-sex couples following the Supreme Court's decision in United States v. Windsor, No. 12-307 (June 26, 2013). (For details on Windsor, please see U.S. Supreme Court Rules Legally-Married Same-Sex Spouses Entitled to Federal Recognition and Lifts California Ban on Same-Sex Marriages.)
NBA Makes a Strong Statement Banning Clippers Owner Sterling For Life
By Joseph M. Hanna, Esq. of Goldberg Segalla LLP
NBA Commissioner Adam Silver issued severe sanctions against Los Angeles Clippers' owner Donald Sterling, banning him from the sport for life and fining him $2.5 million for the racist remarks Sterling admitted he uttered to his girlfriend. In a statement to the press Silver noted, "As part of the lifetime ban, Mr. Sterling may not attend any NBA games or practices, be present at any Clippers office or facility, or participate in any business or player personnel decisions involving the team. He will also be barred from attending NBA Board of Governors meetings and participating in any other league activity." Silver also noted that the proceeds from the $2.5 million fine would be donated to anti-discrimination groups.
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