Hotel Operator's Negligent Failure to Prevent Sex Trafficking Precludes it from Liability Coverage >
June 14, 2018
A recent opinion of the U.S. District Court of the Eastern District of Pennsylvania illustrates how operators will have to weigh the sometimes competing business and legal interests of protecting consumer/customer privacy, while also helping to combat trafficking and assault in the industry.
Pennsylvania Supreme Court: Unfair Trade Practices and Consumer Protection Law Applies to Out-of-State Residents >
February 27, 2018
In Danganan v. Guardian Protection Services, the Pennsylvania Supreme Court decided that the Commonwealth's Unfair Trade Practices and Consumer Protection Law applies to purchasers who do not reside here. The impact of this decision will be far-reaching, extending not only to insurance companies but also to all businesses headquartered in and operating out of Pennsylvania.
Rancosky v. Washington National Insurance Co.: Pennsylvania Supreme Court Finally Rules on Test for Insurance Bad Faith; Holds That Proof of an Insurer's Motive of Self-Interest or Ill Will Is Not Required
October 6, 2017
In Rancosky v. Washington Nat'l Ins. Co. the Pennsylvania Supreme Court at long last ruled squarely on what must be proven to establish bad faith under 42 Pa. C.S.A. §8371, Pennsylvania's "bad faith statute," and, in doing so, held that proof of a motive of self-interest or ill will on the part of the insurer is not required.
Is an Insurer's Reliance on Unsettled Case Law Enough to Defend Against a Bad Faith Claim? >
July 6, 2017
Insurers are often faced with making coverage decisions where the case law is unsettled. Does reliance on that case law supporting the insurer's decision insulate an insurer from a claim of bad faith? A recent case from the Eastern District of Pennsylvania suggests that the existence of case law to support its position may not alone be enough.
Bifurcation/Severance of Bad Faith Claims in the Pennsylvania Federal District Courts >
March 24, 2017
The decision in Insurance Federation of Pennsylvania v. Koken, 889 A.2d 550 (Pa. 2005), radically changed the landscape of UM/UIM litigation. Since then, attorneys and courts have struggled with the practicality of litigating cases that include both UM/UIM claims as well as bad faith claims. One of the major issues that has yet to be conclusively resolved is whether a count for entitlement to UM/UIM benefits can proceed simultaneously with a bad faith count. Relatedly, courts continue to consider the implications for the litigation process where bifurcation or severance and stay are denied.
Changes to New Jersey Rules Governing Civil Practice Affect Litigation of UM/UIM and Bad Faith Claims >
February 13, 2017
New Jersey's Civil Practice Committee has made two significant changes to the Rules Governing the Civil Practice - regarding the entire controversy doctrine and the offer of judgment rules - following the New Jersey Supreme Court's invitation to do so.
PA Superior Court Parts with Eleventh Circuit on Annuity Payments Under the LHWCA; Issues Unanimous Memorandum in Favor of National Indemnity >
January 30, 2017
In a unanimous memorandum opinion, the Superior Court of Pennsylvania parted ways with the Eleventh Circuit on January 27, 2017, holding that the Longshore Harbor Workers' Compensation Act (“LHWCA”) unequivocally bars any transfer or assignment of periodic payments from a structured settlement entered into under the Act. The opinion brings Pennsylvania in line with numerous other state trial courts on the question of whether the anti-assignment provisions of the LHWCA bar the sale of payments which originate under the Act.
Third Circuit Moves Pennsylvania Courts Closer to Viewing TCPA Violations as Uncovered Acts Under BOP and CGL Policies >
September 15, 2016
In Auto-Owners Ins. Co. v. Stevens & Ricci, Inc., the Third Circuit predicted that the Supreme Court of Pennsylvania, if given the opportunity, would find that Telephone Consumer Protection Act (TCPA) violations are not covered under Businessowners (BOP) or CGL policies as a TCPA violation is not an "occurrence," and does not cause an "advertising injury."
Rancosky v. Washington National Insurance Co.: Pennsylvania Supreme Court to Rule on Long-Standing Test for Insurance Bad Faith >
September 7, 2016
In granting allocatur in Rancosky v. Washington National Insurance Co., the Pennsylvania Supreme Court has at long last placed squarely in front of it whether to put its imprimatur on the test developed by the Superior Court in insurance bad faith cases.
Westport Ins. Co. v. Mylonas: Pennsylvania Court Fashions New Test for Legal Malpractice Claims Under E&O Policies >
August 31, 2016
In Westport Insurance Company v. Mylonas, Judge Slomsky of the United States District Court for the Eastern District of Pennsylvania granted summary judgment in favor of Westport in a declaratory judgment action, declaring that under an errors and omissions (E&O) policy, multiple related acts of negligence amount to a single claim under a legal malpractice policy.