Auto: OREGON HIGH COURT FINDS $20.7 MILLION PUNITIVE AWARD TOO HIGH, Goddard v. Farmers Ins. Co., 18 No. 24 Andrews Ins. Coverage Litig. Rep. 3, Andrews Insurance Coverage Litigation Reporter March 21, 2008
The Oregon Supreme Court has determined that a $20.7 million punitive damages award in an insurance bad-faith case that dates back to 1987 is excessive. The state high court said punitive awards in cases involving economic injury should be limited to four times actual damages and that this case deserved the maximum. The original award was 16 times greater than the actual damages.According to the opinion, John Munson was involved in an auto accident in 1987 while driving under the influence.
Construction: LACK OF EVIDENCE DOOMS HOMEOWNER'S CLAIM, Edmond v. Hartford Ins. Co., 18 No. 24 Andrews Ins. Coverage Litig. Rep. 4, Andrews Insurance Coverage Litigation Reporter March 21, 2008
A federal judge in Connecticut has dismissed a lawsuit filed by a woman who claimed her home was damaged by either a storm or an earthquake, finding that she submitted no evidence to support her allegations that her insurer breached the policy. According to the opinion, Amanda Edmond owned a home in Brewton, Ala., that was insured by Hartford Underwriters Insurance Co. The homeowners policy excluded coverage for "faulty, inadequate or defective ... design, specifications or workmanship" involved.
D&O Insurance: DIRECTOR'S AID IN SUIT BARRED D&O COVERAGE, Strange v. Genesis Ins. Co., 18 No. 24 Andrews Ins. Coverage Litig. Rep. 5, Andrews Insurance Coverage Litigation Reporter March 21, 2008
The "insured vs. insured" exclusion in a D&O policy excuses Genesis Insurance Co. from paying for a suit a director of New England Dental Center helped a shareholder bring against an NEDC officer, a federal judge in Boston has ruled. U.S. District Judge Reginald Lindsay of the U.S. District Court for the District of Massachusetts dismissed the coverage suit because the Genesis policy clearly did not cover any underlying litigation when there are insureds involved on both sides of the suit.
Briefs and Other Related Documents: 2007 WL 2973167, 2007 WL 4990692
Health: ARBITRATOR AWARDS $8.4M IN PUNITIVES FOR CANCELED HEALTH POLICY, Bates v. Health Net, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 6, Andrews Insurance Coverage Litigation Reporter March 21, 2008
An arbitrator has awarded a California woman $8.4 million in punitive damages on a determination that her insurer acted in bad faith by canceling her health insurance policy while she was being treated for cancer. In a strongly worded ruling private arbitrator Sam Cianchetti called Health Net Life Insurance Co.'s conduct "reprehensible." "Health Net was primarily concerned with and considered its own financial interests and gave little, if any, consideration and concern for the interests of the insured.
Briefs and Other Related Documents: 2007 WL 2973167, 2007 WL 4990692, 2008 WL 594700
Health: SUIT OVER COVERAGE FOR EATING DISORDERS FEDERALLY PREEMPTED, DeVito v. Aetna Inc., 18 No. 24 Andrews Ins. Coverage Litig. Rep. 7, Andrews Insurance Coverage Litigation Reporter March 21, 2008
A New Jersey federal judge has dismissed state law claims seeking coverage for the treatment of eating disorders, finding them federally preempted because the health plans in question are covered by the Employee Retirement Income Security Act. The judge allowed the plaintiffs' claims for breach of fiduciary duty to stand.According to the opinion, New Jersey residents Francis DeVito and Jeff Meiskin are covered by Aetna Inc. insurance policies issued through their employers.
Health: CITY WORKER'S WIDOW CAN'T CONTINUE COVERAGE, Vincent v. New Haven, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 8, Andrews Insurance Coverage Litigation Reporter March 21, 2008
The widow of a city employee is not entitled to continue health coverage under her husband's policy, the Connecticut Supreme Court has ruled. According to the opinion, Edwin Vincent, an employee of the city of New Haven, died Sept. 3, 1991, from a work-related heart injury. His widow and sole dependent, Martha, had been receiving health insurance coverage through his job and sought to continue the benefit after his death.The city contested liability for continuing health insurance coverage.
Mold Damage: INSURED CAN'T CLAIM NEGOTIATIONS VOIDED POLICY TIME LIMIT, Allstate Ins. Co. v. Sutton, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 9, Andrews Insurance Coverage Litigation Reporter March 21, 2008
Settlement negotiations cannot be used to void a policy's time limit on the right to file suit if the insurance company has explicitly reserved its rights under the policy, a Georgia appeals court has ruled. According to the opinion, Sharon Sutton and her minor daughter lived together in a home insured by Allstate.In February 2002 a plumbing leak damaged several rooms, and Sutton sought coverage from Allstate. Allstate sent a representative of contractor PJ Services the same day to set up equipment.
Professional Liability: CLAIM OVER INSURED'S FAILURE TO COOPERATE WILL PROCEED, Med. Protective Co. v. Bubenik, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 10, Andrews Insurance Coverage Litigation Reporter March 21, 2008
The question of whether a dentist breached his professional liability policy, relieving the insurer of a duty to indemnify him in a malpractice suit, is not appropriate for summary judgment, a Missouri federal judge has ruled. A jury must resolve factual disputes about whether the dentist's failure to testify in his own defense in the underlying malpractice litigation constituted a violation of the policy's cooperation clause, U.S. District Judge E. Richard Webber said.
Professional Liability: INFO REQUEST DIDN'T TRIGGER DUTY TO DEFEND, Myers v. Interstate Fire & Cas. Co., 18 No. 24 Andrews Ins. Coverage Litig. Rep. 11, Andrews Insurance Coverage Litigation Reporter March 21, 2008
A doctor's failure to report a claim before his malpractice policy expired precluded coverage for the ensuing litigation against him, a Florida federal judge has ruled. A letter from the patient's attorney requesting insurance information, forwarded to the doctor's insurer within the policy period, was insufficient to trigger the insurer's duty to defend, Judge James S. Moody Jr. of the U.S. District Court for the Middle District of Florida ruled.
Professional Liability: DOCTOR CAN PURSUE CLAIM OVER INSURANCE COVERAGE DISPUTE, Riggs v. Lafayette Emergency Care, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 12, Andrews Insurance Coverage Litigation Reporter March 21, 2008
An Indiana appeals court has reinstated a doctor's promissory estoppel claim based on an allegation that her employer orally promised to maintain her professional liability insurance after her termination. A dispute about whether the employer in fact promised to continue the insurance and whether the doctor's reliance on the alleged promise was reasonable raised triable questions of fact that precluded summary judgment, the panel said.
Professional Liability: TEXAS APPEALS COURT UPHOLDS $500K SURCHARGE ON MED-MAL POLICY, Scheffey v. Geeslin, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 13, Andrews Insurance Coverage Litigation Reporter March 21, 2008
A joint underwriting association lawfully imposed a $538,000 surcharge to renew a malpractice policy for an orthopedic surgeon on whose behalf it recently paid $3 million in claims, a Texas appeals court has ruled. The association had the authority to impose the surcharge to account for the increased risk of insuring the surgeon because of his recent claim history, the panel said.Dr. Eric Scheffey, an orthopedic surgeon, obtained malpractice insurance through the Texas Medical Liability Insurance.
Professional Liability: STATE'S APPEAL OVER INSURANCE COVERAGE DENIED AS MOOT, State v. Med. Malpractice Joint Underwriting Ass'n, 18 No. 24 Andrews Ins. Coverage Litig. Rep. 14, Andrews Insurance Coverage Litigation Reporter March 21, 2008
Rhode Island's highest court has refused to review a dispute over whether the state was entitled to coverage under a medical malpractice policy issued to a state employee. The state's suit was rendered moot by a final judgment for all defendants in the underlying malpractice action, the court concluded.The controversy stemmed from a tort suit that included an allegation of medical negligence against a physician employed by the state.
2008 Florida Senate Bill No. 460 110th Regular Session (SUMMARY - NETSCAN) Congenital Craniofacial Anomalies/Coverage Study; Requires that the Agency for Health Care Administration, in consultation with the Office of Insurance Regulation, conduct a study evaluating the medical necessity, costs, and efficacy of mandating coverage by health insurers and HMOs for cranial- skull-molding orthotics and other therapies used in the treatment of deformational or positional plagiocephaly, etc. APPROPRIATION: $25,000. EFFECTIVE DATE: 07/01/2008. 2008 FL S.B. 460 (NS) Back to top
2008 Florida Senate Bill No. 448 110th Regular Session (SUMMARY - NETSCAN) Breast Cancer/Lymph Node Dissection Coverage; Cites this act as the "Mary B. Hooks Act." Includes lymph node dissections under the provisions prescribing the length of a hospital stay relating to a mastectomy and the outpatient postsurgical followup care that any group, blanket, or franchise accident or health insurance policies, and HMOs must cover, etc. EFFECTIVE DATE: 07/01/2008. 2008 FL S.B. 448 (NS)
Florida Insurance - Property and Casualty Florida Insurance - Property and Casualty - State Bill Tracking 2007 Florida House Bill No. 15 Third Special Session (SUMMARY - NETSCAN) Bogdanoff (Linked CS/H 0013-C, Compare CS/S 0016-C, CS/S 0040-C, CS/S 0042-C) Pub. Rec./Motor Vehicle Insurance; Creates a public records exemption for certain information regarding personal injury protection and property damage liability insurance policies held by HSMV. Authorizes conditional release of confidential and exempt information to specified persons. Provides for retroactive application of the exemption. Provides for future review and repeal of the exemption. Provides a statement of... 2007 FL H.B. 15 (NS)
Rezulin (Federal Preemption): SUPREME COURT WILL HEAR CASE OVER MICH. DRUG LIABILITY LAW, Warner-Lambert Co. v. Kent, 11 No. 5 Andrews Drug Recall Litig. Rep. 2, Andrews Drug Recall Litigation Reporter October 11, 2007 The U.S. Supreme Court will consider whether 29 Michigan plaintiffs can proceed with liability claims over the diabetes drug Rezulin under a state law lifting protections for pharmaceutical companies if the manufacturer misled federal regulators in securing the disputed drug's approval. Although Michigan law shields drug companies from product liability suits, the exemption can be lifted if a plaintiff shows that the manufacturer defrauded the Food and Drug Administration during the drug certification process.
Avandia: POPULAR DIABETES DRUGS GET 'BLACK BOX' WARNING, 11 No. 4 Andrews Drug Recall Litig. Rep. 4, Andrews Drug Recall Litigation Reporter September 10, 2007 The labels of five popular diabetes treatments, including Avandia, will be revised to include "black box" warnings on their increased risk of causing heart failure, the Food and Drug Administration has announced. The agency says the revised warnings -- the strongest the FDA requires -- will be applied to the labels of Avandia, Avandaryl, Avandamet, Duact and Actos. The labels urge prescribing physicians to observe patients carefully for signs and symptoms.
Drug Regulation: DYING PATIENTS HAVE NO RIGHT OF ACCESS TO EXPERIMENTAL DRUGS, Abigail Alliance for Better Access to Developmental Drugs v. Von Eschenbach, 10 No. 7 Andrews Nursing Home Litig. Rep. 9, Andrews Nursing Home Litigation Reporter September 28, 2007 Terminally ill patients do not have the right to obtain experimental drugs that have not been approved by the Food and Drug Administration, a federal appeals court has ruled. In an 8-2 ruling the U.S. Court of Appeals for the District of Columbia overturned a decision a smaller panel of the same court reached last year.The majority of the full court ruled that dying people do not have a constitutional right to override the "collective judgment of the scientific and medical communities.
Vioxx: NJ HIGH COURT REJECTS NATIONAL VIOXX CLASS ACTION, Int'l Union of Operating Eng'rs Local No. 68 Welfare Fund v. Merck & Co., 11 No. 5 Andrews Drug Recall Litig. Rep. 3, Andrews Drug Recall Litigation Reporter October 11, 2007 The New Jersey Supreme Court has declined to certify a national class of insurers and employee benefit funds seeking to recover money they spent on Merck & Co.'s recalled pain drug Vioxx. Reversing two lower court decisions approving a class led by a New Jersey labor union's employee trust fund, the unanimous high court said it may be difficult to apply the state's consumer-fraud laws to similar cases nationwide.
Vioxx (Discovery): VIOXX JUDGE ORDERS DOC PRODUCTION BASED ON E-DISCOVERY REPORT, In re Vioxx Prods. Liab. Litig., 11 No. 5 Andrews Drug Recall Litig. Rep. 4, Andrews Drug Recall Litigation Reporter October 11, 2007 A Louisiana federal judge has ordered Merck & Co. to produce discovery documents sought by the plaintiffs' counsel in the Vioxx multidistrict litigation proceeding based on electronic discovery guidelines recently set by a court-appointed special master. On Sept. 4 U.S. District Judge Eldon E. Fallon revised an order originally entered in August that adopted the recommendations of American University professor Paul R. Rice on how to sort discovery requests for thousands of pages of electronic d.
Hormone Replacement Therapy: PA. JUDGE DISMISSES HORMONE THERAPY SUIT AS UNTIMELY, Coleman v. Wyeth Inc., 11 No. 5 Andrews Drug Recall Litig. Rep. 5, Andrews Drug Recall Litigation Reporter October 11, 2007 A Pennsylvania state court judge has dismissed a breast cancer victim's lawsuit against the makers of a hormone replacement therapy, saying the woman could not justify why she waited nearly four years after being diagnosed to file a claim. Judge Allan L. Tereshko of the Philadelphia County Court of Common Pleas rejected plaintiff Elizabeth Coleman's claim that Pennsylvania's two-year limitations period did not apply because she did not connect her 2000 breast cancer diagnosis with the hormone.