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Insurance

Gain access to extensive insurance coverage analysis pertaining to many different types of coverage including professional, general liability, property, homeowners’ as well as directors and officers policies. 

Litigation Forum’s research reflects the contributing firms’ understanding of both the litigation climate and the unique requirements of insurance carriers, and provides you with the information you need to either avoid coverage issues, or to develop a responsive litigation plan that minimizes risks and resolves disputes quickly and successfully.

6/2/2008 - Cleaning and Restoration Article: The Leader's Circle

The March, 2008, edition of Cleaning & Restoration magazine, featured a section entitled, "The Leader’s Circle," in which industry experts were invited to write about liability in disaster recovery restoration and professions.


1/17/2008 - Pennsylvania Court Restricts Plaintiffs Ability to File Additional Suits for Asbestos-Related Conditions
On December 17, 2007, the Superior Court of Pennsylvania issued an opinion stating that in instances where a plaintiff has sued prior to 1992 for an asbestos-related injury, such as asbestosis or pleural thickening, that same plaintiff cannot now sue for contracting an asbestos-related cancer.
1/7/2008 - Pennsylvania Supreme Court Decisions Clarifies Stacking Of Underinsured And Uninsured Coverage

The Supreme Court of Pennsylvania recently issued a pair of decisions that clarify stacking of underinsured and uninsured coverage.


9/27/2007 - Pennsylvania Federal Court Dismisses A Direct Action Against Insurer
On September 5, 2007, Judge Kauffman, of the Eastern District of Pennsylvania District Court, dismissed all direct action claims by codefendant manufacturers against Cincinnati Insurance, who insured the designer of the air conditioning system that had an ammonia leak.
9/11/2007 - Supreme Court of California Upholds Lower Court's Rejection of Discovery Requests for Reinsurance Information
The Supreme Court of California concluded that a party may discover the existence and contents of an insurance policy of another party but may not seek discovery on reinsurance information regarding those insurance policies.
8/10/2007 - Product Recalls and Obama's Lead Free Toys Act of 2007 (S. 1306).

In May of this year, Senator Obama introduced his Lead Free Toys Act of 2007 (S. 1306), to tackle the issue of lead-contaminated toys reaching the U.S. marketplace. In light of the growing incidence of product recalls by the U.S. Consumer Product Safety Commission (CPSC), Senator Obama called on the Senate Commerce, Science, and Transportation Committee Chairman Daniel Inouye and Vice Chairman Ted Stevens to move his Act forward.


7/16/2007 - New Hampshire passes proposal to reduce blood lead limit.

Governor Lynch of New Hampshire recently signed a law, the aim of which is to reduce the incidence of lead paint poisoning in New Hampshire's children.

The provisions of bill SB 176 will take effect on January 1, 2008 and will reduce the current blood lead reporting limit of 20 micrograms per deciliter to 10 micrograms per deciliter. This reduced blood lead limit will trigger the doctor's report to the state and the state investigation into the possible source of the blood-lead poisoning. In addition, the Department of Health and Human Services will now be authorized to inspect all units of a multi-family dwelling, whereas previously, they could only inspect the unit in which the child resided.


7/9/2007 - Milwaukee Jury Rules in Favor of NL Industries.

A Milwaukee jury recently ruled in favor of NL Industries, Inc., finding that the company was not negligent for creating a public nuisance for allegedly producing lead-based paint after the company knew of the dangers it posed, nor for allegedly conspiring with others to create the nuisance.

The city of Milwaukee is considering an appeal.


6/29/2007 - AHRAE Publish 2007 Residential IAQ Standard

The American Society of Heating, Refrigeration and Air Conditioning Engineers recently published the first nationally recognized IAQ (air quality standard) for low-rise residential buildings. The ANSI/ASHRAE Standard 62.2-2007 provides air quality standards for spaces intended for human occupation, such as, single-family homes and multi-family residences of three stories or less, including manufactured and modular structures. It does not apply to transient accommodation.  This new standard defines the role of, and minimum requirements for, mechanical and natural ventilation systems and the building envelope in low-rise residential buildings.


6/19/2007 - NJ & MI Supreme Courts Dismiss Lead-Paint Suits.

In Re: Lead Paint Litigation (A-73-05), the New Jersey Supreme Court ruled 4-2 for the dismissal of the remaining lawsuit against former lead-paint manufacturers. The Supreme Court held that the plaintiffs were unable to state a claim on which relief could be granted, "consistent with the well-recognized parameters of the common-law tort of public nuisance. To find otherwise would be directly contrary to legislative pronouncements governing both lead paint abatement programs and products liability claims."


6/11/2007 - EPA Endorses Senator Obama's Proposal to Eliminate Lead from Child-Occupied Facilities

In January 2006, the Environmental Protection Agency proposed work practice requirements, training and certification for contractors performing renovations in most pre-1978 housing.

The EPA has now issued a supplemental proposal which would extend the existing proposal requirements to renovations to child-occupied facilities. Under the latest proposal contractors and dust sampling technicians, who undertake renovation work in child occupied facilities, such as schools, pre-schools, day care facilities etc. would first be required to undergo mandatory training and certification in lead-safe renovating and sampling practices.


6/4/2007 - Lead Paint Lawsuits as Sherwin Holds Investors Conference.

Given, the success of Rhode Island's public nuisance claim against NL Industries Inc., Sherwin Williams Company and Millennium Holdings LLC, Milwaukee has now become the second state in the United States to bring such an action to trial in City of Milwaukee v. NL Industries.

The City of Milwaukee alleges that NL Industries created a public nuisance, conspired with others to create the nuisance, and further, that NL knew of the dangers associated with lead-based pigments since the 1930s. The defense argues this was public knowledge and, for twenty years after lead pigments were banned in Baltimore, the federal government and the City of Milwaukee mandated its use by architects for its projects. The defense asserts the real source of exposure is lead in soil, and ill maintanined properties.


4/23/2007 - Lead Exposure, IQ, and Behavior in Urban 5 to 7 Year Olds: Does Lead Affect Behavior Only by Lowering IQ?

In a recent study on the effect of lead exposure on children's behavior, Chen et al attempt to differentiate the direct effect lead has on behavior and its indirect effect through the lowering of IQ, and examines the relationship between peak and concurrent blood lead concentrations.


4/9/2007 - Indoor Air Quality (IAQ) Radio - David M. Governo tells builders and architects how to avoid construction defect claims.

In this interview, David M. Governo explains what’s behind the growth in construction defect claims, and how builders put themselves at unnecessary risk for these claims. He also explains how an inexpensive liability audit can show builders where they’re creating risk, and what preventative measures they can take to reduce that risk. The audit is a simple piece of insurance that can ultimately save a builder’s business. The interview ends with a Q&A with listeners.


4/6/2007 - Novel Legal Theory of 'Public Nuisance' A Case of Over-Reaching

"Attorney General Dann's lawsuit twists the purpose of public nuisance law and misapplies it because he can't make a case under traditional product liability law", so states Lisa A. Rickard, President of the Chamber Institute for Legal Reform. This statement follows the filing of a complaint by the Ohio State Attorney General against a total of eight former lead-paint manufacturers.

The Rhode Island 2005 ruling created "public nuisance" liability and ordered former lead-paint and pigment manufacturers to pay clean up costs for the state of Rhode Island. Despite an appeal to the State Supreme Court, contesting the legal basis for this verdict, Ohio State Attorney General Dann is similarly seeking to recover clean-up costs for contaminated buildings, for creating a public health hazard and causing the state and its residents to "incur substantial costs".


3/30/2007 - Former Lead Paint Manufacturers Appeal R.I. State Ruling.

Sherwin Williams & NL Industries have recently filed appeals to Rhode Island's Supreme Court following a denial of a request for a new trial, and a court order to draft and implement a cleanup plan. If the Rhode Island Supreme Court upholds the ruling, this will make it the only "public nuisance" theory case to go through the court system to final resolution.


3/20/2007 - David M. Governo quoted in Lawyers Weekly USA.

David M. Governo is quoted in "Can One Position Paper Stop Mold Litigation? Not if Plaintiffs' Attorneys Can Help It". This article discusses the American College of Occupational and Environmental Medicines' (ACOEM) paper which opines there is no evidence to link indoor mold as the cause of serious health effects. The authors of "Adverse Human Health Effects Associated with Molds in the Indoor Environment" now face allegations of conflict of interest since it was revealed they failed to disclose they were paid defense experts. This article appears in the February 12th 2007 edition of Lawyers Weekly USA.


3/6/2007 - Mealey’s Lead Litigation Conference April 2007

David M. Governo will be presenting Abatement and the Financial Implications of Lead Litigation at this year's Mealey's Lead Litigation Conference. This two-day conference features emerging issues, trends and a commentary on recent lead litigation case law. The conference, Discover Winning Tactics to Strengthen your Cases in Emerging Areas of Lead Litigation, will take place April 19-20, 2007, at the Intercontinental Hotel, Chicago.


2/27/2007 - No New Trial in Lead-Paint Suit, Judge Rules.

Superior Court Judge Michael Silverstein recently rejected a defense request for a new trial in the landmark Rhode Island suit against former lead paint manufacturers, stating the state's evidence supports the jury's verdict. Judge Silverstein granted the state's request for the appointment of a special master to assist in developing a plan to rid lead paint from Rhode Island homes, schools, and other public buildings. These clean up costs are estimated to range from $1 to $3 billion.

On February 22, 2006, a jury found Sherwin Williams Co., NL Industries Inc., and Millennium Holdings LLC liable for creating a "public nuisance" and were ordered to clean up the contaminated lead-paint in the state of Rhode Island.


2/2/2007 - Litigation Forum’s Founders Speaking at the 3rd Annual Environmental Toxic Torts ExecuSummit 2007 in NYC.

The founders and sponsors of Litigation Forum have teamed up to organize and present a unique educational program: The 3rd Annual Environmental Toxic Torts ExecuSummit 2007. The conference is designed to present up-to-date information on emerging issues, strategic intelligence, case studies, trends and developments in environmental claims and toxic torts. Our program is specifically designed to help Insurance Claims Professionals understand and resolve the complex claims they face in these areas.


1/24/2007 - Spectroscopy Technology Used To Identify NL Industries As Manufacturer Of Lead Pigment Contained In Lead Paint In Plaintiffs’ Apartment

On December 18, 2006, tenants in the New York case, Edwin Jimenez v. Romo Associates, et al., amended their lead poisoning lawsuit against their landlords to add a specific paint company, NL Industries, as a defendant. Media reports indicate that the plaintiffs analyzed the paint in the subject property using spectroscopy, a scientific technology that analyzes the chemical composition of paint chips, and have determined that the paint from the plaintiffs’ apartment contained a pigment that was manufactured by NL Industries.


1/11/2007 - Court Action to Determine If Ohio State Bill Limiting Lead-Paint Manufacturers' Liability Has Been Vetoed

In February 2006, Rhode Island successfully sued three former lead-paint manufacturers for creating a public nuisance. A claim for punitive damages was denied, however, the defendants face an estimated $4 billion in costs to clean up or cover lead-based paint. Following this decision, a number of cities including Chicago, Milwaukee, Los Angeles and Cincinnati have initiated lawsuits.


1/3/2007 - Georgia High Court Strikes Down Asbestos Tort-Reform Law

Georgia's new asbestos litigation reform law Ga. Code Ann. §51-14-1 et seq., which according to the High Court requires plaintiffs with a claim pending on April 12th, 2005 to show evidence that asbestos was "a substantial contributing factor to their medical condition" or face dismissal, was held by the Georgia Supreme Court to be unconstitutional in that plaintiffs had to establish a new element to prove their claim.


12/20/2006 - Lead Paint Removal Made Safer

Existing methods of paint removal can lead to large amounts of toxic lead dust becoming airborne. A new paint removal method reduces this risk by using high-intensity flashes of light to burn layers of paint. The residue paint is then immediately vacuumed and sent through a filtering system.


12/5/2006 - Georgia Supreme Court Overturns Retroactive Application Of Georgia Asbestos Bill

The Georgia Supreme Court has unanimously struck down the retroactive application of a Georgia Bill which required Georgia plaintiffs to establish that asbestos was the "substantial contributing factor" to their illness. According to Justice Carol Hunstien, this new bill added "a new element to their claim, one that did not exist when the original cause of action accrued . . . the law "cannot retroactively be applied to their claims."


11/8/2006 - 3rd Circuit Revives a Proposed Class Action Suit Against Lawyers for failure to disclose fee arrangements.

A group of Southern lawyers are accused of failing to disclose fee arrangements that left plaintiffs from Northern states with substantially less settlement money than their Southern counterparts to a class action.

Approximately 2,600 former clients are said to be cheated out of their fair share of $400 million in asbestos personal injury settlements in the Mississippi state courts. The defense lawyers argue that geographic origin is an appropriate factor in deciding settlement values since jury verdicts in northern states are traditionally lower, and that southern jury verdicts for northern plaintiffs are typically lower than for southerners in their home state.


11/3/2006 - Fifth Circuit U.S. Court of Appeals Affirms Insurer Owes No Duty to Defend Because of Automobile Exclusion
On October 24, 2006 the Fifth Circuit U.S. Court of Appeals affirmed that a commercial general liability insurer does not owe a duty to defend its insured in regard to negligence claims given the policy's automobile exclusion.
11/2/2006 - ASHRAE – Receives EPA Grant to provide Advanced IAQ Guidance

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has been awarded a grant of $510,000 from the U.S. Environmental Protection Agency (EPA) to provide guidance for the designing and building of greener buildings with improved indoor air quality.


10/20/2006 - FDA Broadens Access to Lead Care II Blood Lead Test System - Waiver Allows Community-Based Testing.

The U.S. Food and Drug Administration (FDA) have granted the Lead Care II blood lead test system "waived" status under the Clinical Laboratory Improvement Amendment (CLIA). Simply put, this allows for 115,000 physician’s offices, community health centers, mobile health units, health fairs, work sites, home visits and schools nationwide, to test for lead poisoning using the Lead Care II portable blood lead analyzer without special training or advanced certification. It is hoped this will encourage a wider community based testing program with immediate ‘face to face’ results and more immediate treatment as required.


10/19/2006 - Washington Federal Court Holds Property Damage Caused by Contractor Breach Cannot be "Occurrence" or "Accident" Under General Liability Policy
On October 12, 2006 a Washington federal judge ruled in Mid-Continent Casualty Co. v. Williamsburg Condominium Assoc No. 05-01240 W.D. Wash. The court held that property damage to condominiums caused by a contractor’s breach of contract and/or breach of warranties cannot be regarded as an “occurrence” or “accident” under a general liability policy.
10/19/2006 - Specialized Forms of Insurance Small Businesses Should Consider to Protect Against Disaster
A September 13, 2006 Pittsburgh Post-Gazette article discussed the specialized forms of insurance small businesses should consider to protect themselves from disasters.
10/16/2006 - Federal Judge Upholds Bankruptcy Judge’s Denial of a Motion for Limited Modification of the Stay in an Insurance Coverage Adversary Proceeding
On April 16, 2000, Pittsburgh Corning Corp. (“PCC”) filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code for asbestos-related liabilities.
10/13/2006 - Proposed Legislation to get Lead Out of Child Care Facilities

Since almost 12 million children under the age of 5 spend 40 hours per week in child care, all non-home-based child care facilities, to include Head Start and kindergarten programs, must be certified lead-safe in five years, under proposed legislation.


10/3/2006 - The US Supreme Court Refuses To Hear Two Asbestos Insurance Coverage Cases
The US Supreme Court announced that it would not review appeals from California in the Fuller-Austin case and from a US Circuit Court case between US Steel and Liberty Mutual.
9/27/2006 - Home Inspections and Questions to Ask your Home Inspector.

Ensure that the home inspector is properly qualified, ask about their relevant training, number of years of home inspection experience, their continuing education and most importantly, ask to see their inspector’s license or ASHI or other reputable home inspectors’ organization ID card.


9/12/2006 - The Worst Cases of Tax Fraud in US History -- Who Built Your House?

Americas Watchdog, an advocacy group focused on corporate responsibility & fair play, reports on the practice of hiring undocumented and often untrained, unqualified and unlicensed construction workers to build the nations residential housing. A two year investigation reveals the possibility of massive tax fraud, illegal working conditions and defective new home construction and has led M. Thomas Martin, founder of Americas Watchdog to say, "our nation’s homebuilders now face what could become the largest tax fraud cases and/or Fair Labor Standards Act lawsuits in U.S. History". To view the full story please click http://www.prweb.com/releases/2006/9/prweb434863.htm.

 


9/7/2006 - USGS Report Identifies Asbestos Localities in Central U.S.

The U.S. Geological Survey (USGS) has published a report containing a database and regional map consisting of 36 locations of reported natural asbestos and fibrous amphibole occurrences in the Central United States. Although the report does not identify new occurrences of asbestos, it differs from previous reports by differentiating between the different types of asbestos. Since potential exposure to these natural asbestos deposits may occur where the surrounding area is disturbed, either by natural erosion or human activity, it has now become the focus of attention and concern of the public health community. The report does not, however, distinguish between those which may or may not be harmful to human health. The report entitled "Reported Historic Asbestos Prospects and Natural Asbestos Occurrences in the Central United States" USGS Open File Report 2006-1211 and may be viewed at http://pubs.usgs.gov/of/2006/1211/. The 2005 Eastern U.S. report may be viewed at http://pubs.usgs.gov/of/2005/1189/.

 


8/30/2006 - EPA Issues Draft Guidance to Reduce Auto Mechanic Exposure to Asbestos

The EPA issued a draft guidance which aims to reduce auto mechanic exposure to asbestos during brake and clutch repair work. Although many new vehicles no longer use brake or clutches which contain asbestos, exposure may still occur when older vehicles undergo repair.

The draft guidance, Current Best Practices for Preventing Asbestos Exposure Among Brake and Clutch Repair Workers, when finalized, will replace the existing guidance, Guidance for Preventing Asbestos Disease Among Auto Mechanics. The draft guidance also provides a summary of OSHA’s existing regulatory requirements for professional automotive mechanics. To access this information please view

http://www.epa.gov/asbestos/pubs/goldbooktext.html

http://www.osha.gov/dts/shib/shib072606.html

 


8/21/2006 - Lead Paint – Federal Jury Defense Verdict

NL Industries, Inc. wins a federal jury defense verdict in a lead poisoning suit brought by five Mississippi families. The families alleged their 13 children were exposed to lead paint, and as a result of which became sick and exhibited cognitive deficits. NL Industries successfully argued the genetics defense, that these children’s mental problems were inherited rather than due to lead paint exposure.


8/15/2006 - The First System for Monitoring Lead Poisoning in Living Cells

Christopher J. Chang, and his research team, has developed a new laboratory test.  The LeadFluor-1 (FL1) provides critical information on the amount of biologically available lead present in living cells over time, which causes lead poisoning. FL1 differs from previous tests, as it responds to visible light and monitors lead level changes in living cells. It can detect an increase or decrease in lead levels.  FL1 fluoresces in response to visible light and turns on in the presence of lead with intensities that reflect the amount of lead present in the living cells.


8/7/2006 - The Influence of Exterior Dust and Soil Lead on Interior Dust Lead Levels in Housing that Had Undergone Lead-Based Paint Hazard Control.

A study, undertaken as part of the HUD Lead-Based Paint Hazard Control Grant Program, examined 541 dwelling units comprising of housing from 12 state and local governments. Professor Paul Menrath of the University of Cincinnati led the research team, their objective was to identify whether exterior dust and soil lead levels are useful in identifying the effectiveness of lead hazard control measures as measured against post-intervention interior dust lead levels on floors, windowsills, and window troughs. Secondly, to identify the relationship between the exterior and interior lead dust levels and housing variables.


7/28/2006 - Ensuring Indoor Air Quality

Practical tips for ensuring indoor air quality in the home, as outlined in the ASHRAE Standard 62. 2-2003, Ventilation and Acceptable Indoor Air Quality in Low-Rise Residential Buildings, and 2001 ASHRAE Handbook . . . include ventilation of bathrooms, kitchens, laundry and utility rooms directly outdoors using energy efficient fans.


7/20/2006 - American Risk Management Resources List Top 10 States' Relative Hazard Mold Rankings - Western States Face Mold Danger Despite Dry Climate

"Mention mold right now, and the Gulf Coast comes to mind first, but the contamination on real estate hit by hurricanes was generally less significant overall than mold growth caused by inferior building materials or poor construction," said Carl Smith, CEO/Executive Director of GEI, a non-profit organization working with lenders and developers on mold risk mitigation techniques.


7/18/2006 - Asbestos By The Yard

Science News Magazine reports on the EPA’s recent studies which establish that near surface deposits of naturally occurring asbestos occur in at least 20 states. These natural deposits could make substantial asbestos fibers airborne by such activities as playing ball, or performing other outdoor pursuits such as gardening in the vicinity of a deposit.


7/10/2006 - Record rainfall favors mold, health officials warn.

Recent record rainfall prompts Massachusetts health officials to warn that July and August are expected to be among the heaviest mold months in recent history, and urge homeowners to take action.

 


7/6/2006 - Palm and fern families work to purify home and office of toxins and specific chemicals.

Houseplants can be just like a breath of fresh air. They are shown to improve indoor air quality by breaking apart the chemicals most commonly released by plastics, paints, synthetic carpets and cleaning supplies.


7/6/2006 - Governo instrumental in Cleaning and Restoration's Apex Award of Excellence.

Cleaning & Restoration Magazine has been awarded an Apex Award of Excellence for Magazine and Journal Writing for their March 2005 publication. View David M. Governo’s significant contribution to this award winning issue


7/3/2006 - DuPont Co. named in R.I. ethics complaint

The R.I. state attorney general. Patrick Lynch, who handled a landmark lawsuit against former lead-paint makers is alleged to have accepted campaign contributions from the chief negotiator of a company that Rhode Island allowed to drop out of the case.


6/28/2006 - Supreme Court to Hear Arguments on Lead Paint Law

The Rhode Island Superior Court has already declared the Lead Hazard Mitigation Act of 2005 to be unconstitutional, now the Supreme Court will hear arguments on whether the state's lead paint law is constitutional.


6/27/2006 - 6/9/06: CDC Issues Report on Mold Prevention and Health Effects after Hurricanes

In June of 2006, the Centers for Disease Control (CDC) issued a statement entitled "Mold Prevention Strategies and Possible Health Effects in the Aftermath of Hurricanes and Major Floods." The report discusses how to limit mold exposure and how to identify and prevent mold related health effects.


6/21/2006 - Airborne Mold Spores Increase Kids' Risk For Multiple Allergies

A University of Cincinnati (UC) research study shows that exposure to a certain group of fungal spores, abundant in the air that we breathe every day, can make young children more susceptible to developing multiple allergies later in life, while others could help reduce them.


 


6/14/2006 - Companies Seek Dismissal of Thousands of Asbestos Cases

In a motion filed before U.S. District Judge James T. Giles, forty-seven companies have joined forces to petition the dismissal of tens of thousands of pending asbestos cases. The defense lawyers assert the majority are based on flawed or fraudulent medical diagnoses.


5/18/2006 - Preventing Mold-Related Problems in the Indoor Workplace – A Guide for Buildings Owners, Managers and Occupants

OSHA 3304-04N 2006 provides an overview in the prevention of mold-related problems in the workplace. Topics covered include preventive maintenance, building evaluation and mold control and remediation   .   .   .


5/18/2006 - ASTM Releases New Baseline Mold Survey Standard for Commercial Buildings

Monday May 15, 10:30 am ET

Source: WHITE PLAINS, N.Y., May 15 /PRNewswire/ --

In March 2006, the ASTM released the new E2418-06 Standard Guide for Readily Observable Mold and Conditions Conducive to Mold in Commercial Buildings: Baseline Survey Process. The standard was developed by the ASTM's Real Estate Assessment & Management Mold Task Group, and was co-chaired by Robert Barone, R.A, President of Moisture & IAQ Solutions, Inc.

David M. Governo, Principal of Governo Law Firm, Boston, was a member of the committee that approved the new standard   .   .   .


5/10/2006 - CDC Issues Report on Hurricane-Related Mold Exposure

In October of 2005, the Louisiana Department of Health and Hospitals invited the CDC to assist in documenting the extent of potential exposures to mold and other contaminants associated with water damaged homes after hurricanes Katrina and Rita. The report summarizes the results of the investigation and concludes that residents and remediation work did not consistently use appropriate respiratory protection. The full report can be found at http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5502a6.htm


3/8/2006 - Federal Judge Rules that Reserve Information is Protected and Not Discoverable; However Reinsurance Information May Not Have the Same Protection
A Sixth Circuit Magistrate Judge reasoned that where the reserves have been established based upon legal input, the results and supporting papers most likely will be work-product and may also reflect attorney-client privilege communications. Therefore, the aggregate reserve figures may give some insight into the mental processes of the lawyers in setting specific case reserves. It is important to note, that the Judge held, that under FRCP 26(b) (3) that the “other representative of a party concerning the litigation includes, any consultant, surety, indemnitor, insurer, agent, or even the party itself.”  The only question is whether the mental impressions were documented, by either a lawyer or non-lawyer in anticipation of litigation.  The court concluded that reinsurance information may be proprietary information; however this is not sufficient to establish that the information is privileged. Bondex International Inc. et al. v. Hartford Accident and Indemnity Co. et al., No. 03-1322, N.D. Ohio (2006).

2/23/2006 - Babcock & Wilcox Emerges From Bankruptcy

On February 22, 2006 Babcock & Wilcox announced that it had emerged from bankruptcy, exactly 6 years after filing under Chapter 11 in 2000.  Babcock & Wilcox paid $350 Million and assigned rights to insurance polices with a face value of $1.15 Billion to a trust fund created for asbestos claimants.


1/30/2006 - USG Corp. Announces that it has Resolved all Present and Future Asbestos Claims for $3.95 Billion

On January 30, 2006 USG Corp. reached a $3.95 Billion settlement for all of their pending and future asbestos-related claims.


1/25/2006 - Fuller-Austin Decision is Reversed By California Appellate Court
On January 19, 2006, the California appeals court for the Second Appellate District reversed a lower court's ruling that the confirmation of Fuller-Austin Insulation Co.'s prepackaged bankruptcy plan triggered the excess insurers' indemnity for present and future asbestos-related claims.
12/14/2005 - Minnesota Jury Awards $52.5 Million for an Insurer's Failure to Defend Asbestos Law Suits
A Minnesota Jury awarded $52.5 Million to API, Inc., a Minnesota based construction company, resulting from OneBeacon America Company's denial of coverage for asbestos suits filed against API.

 


12/2/2005 - Insurers Have No Duty to Defend When Insured's Predecessor is Not Named in Underlying Suit
The Eastern District of Pennsylvania ruled on November 1, 2005 that insurers have no duty to defend a company seeking coverage related to asbestos personal injury litigation if its predecessor is not named in the underlying suit.
11/18/2005 - California - High School Lawsuit Settled for $11 Million

A four-year legal fight over the flawed construction of California’s Scotts Valley High School ended earlier this month with a settlement, awarding $11.2 million to the school district.  District Superintendent Susan Silver said, “We’re happy to have this settled.  This money is going to allow us to fix the most critical areas, but it is far less than we actually need.”

 

The $42 million high school in Scotts Valley opened in 1999 to many problems, including drainage problems that lead to buildings being shuttered due to mold.  In March 2001, the district filed a $30 million suit against 30 contractors and designers involved in the construction.    

 

The buildings infested with mold were quarantined and many of the classes had to be moved to portable classrooms.  The district will continue to lease portable classrooms until the permanent structures are complete, which is estimated to be by the beginning of the 2006-2007 school year. 

 

According to the attorney for the school district, some of the contractors involved in the lawsuit have gone out of business, filed for bankruptcy or were under insured, which contributed to the length of the lawsuit.

 

This is the largest settlement regarding fault school construction or design in the county’s history. 


10/12/2005 - Upcoming ASCR Schools

David M. Governo will be speaking at ASCR Foundation's Water Loss Specialist School, November 7-12, 2005, in Salt Lake City, Utah.

 

The purpose of the Water Loss Specialist Program is to advance and help assure a high level of professional service in the field, with the following three specific goals:

·          To improve the professional practice in the Water Loss Mitigation field through the establishment of professional development goals

·          To identify a body of knowledge and skills necessary to the practice of the water loss mitigation profession

·          To recognize those individuals who have demonstrated a level of distinction in the practice of this profession.

 

 

For more information and to register please follow the link below:

Water Loss Specialist School, November 7 – 12, 2005, in Salt Lake City, Utah


10/12/2005 - National Institute of Building Sciences’ Whole Building Design Guide

The Whole Building Design Guide (WBDG), organized and managed by the National Institute of Building Sciences (NIBS), is a comprehensive, Internet-based portal to a wide range of federal and private sector, building-related guidance, criteria, and technology.  By creatively linking information across disciplines and traditional professional boundaries, the WBDG encourages integrated thinking and a "whole building" performance prospective.

 

Check out the WBDG!


10/11/2005 - PA Supreme Court Rules MVFRL Bars the Owner from Recovering First-Party Benefits In Certain Situations
On September 29, 2005, the Pennsylvania Supreme Court ruled that the Motor Vehicle Financial Responsibility Law (“MVFRL”) bars the owner of a registered, but uninsured vehicle, ineligible to recover first-party benefits when such an owner is injured in an accident, which does not involve the owner’s uninsured vehicle.  In front of the Pennsylvania Supreme Court was an appeal from a Superior Court order reversing the trial court’s entry of partial summary judgment in favor of the Appellants (Pennland Insurance Company).
10/4/2005 - Pennsylvania Supreme Court Finds Full Tort Coverage For Children of Uninsured Motorists
On September 28, 2005 the Pennsylvania Supreme Court upheld a Superior Court’s decision to extend full tort coverage to children of uninsured motorists in Holland v. Marcy, 2005 Pa.LEXIS 2137.
9/19/2005 - Mississippi Sues Insurance Companies Seeking to Invalidate Flood Damage Exclusions
On September 15, 2005, Mississippi's Attorney General filed suit against a number of insurers who have the largest market share of the homeowner's policies in Mississippi.  The complaint alleges that the policies that exclude flood water damage are "unconscionable and "against public policy."
9/1/2005 - Advances in Environmental Mold Issues

Attorney Cynthia J. Stephens will be speaking at two of Lorman Education Services' seminars on Advances in Environmental Mold Issues in Massachusetts and Rhode Island

On November 2, 2005, Attorney Stephens will be speaking about Emerging Trends in Mold Claims at Lorman's Advances In Environmental Mold Issues in Rhode Island seminar in Providence, Rhode Island.  The following week, on November 9, she will be speaking at Lorman's Advances in Environmental Mold Issues in Massachusetts, in Braintree, Massachusetts.

Both seminars are one-day and are designed for attorneys, project managers, contractors, subcontractors, presidents, vice presidents, property owners and managers, principals, architects, engineers, facilities and maintenance managers, consultants, insurance professionals and real estate agents.

For more information and to register please follow the appropriate link:


5/17/2005 - Stay Ordered in Coltec Industries, Inc. Coverage Case.
Federal Court Stays Coltec Industries, Inc.’s Declaratory Judgment Action Pending the Resolution of a Competing Action in New York State Court.
Related Attorneys
4/19/2007 - Asbestos Liability in the Cleaning and Restoration Industry

David M. Governo warns of the potential trap for the unwary cleaning and restoration contractor in the clean up and renovation of asbestos-containing products and materials. "A contractor's failure to recognize the problems associated with dealing with asbestos can result in millions of dollars in fines and even imprisonment".

"Asbestos Liability in the Cleaning and Restoration Industry" identifies some of the products in which asbestos might be found, discusses the more prominent federal and some state laws that address asbestos renovation or demolition settings, and provides some practical advice on how to ensure that your company is in compliance with laws governing asbestos.


4/6/2007 - Avoiding Legal Liability in the Disaster Remediation.

"While the opportunity to develop a profitable and successful company exists, one uninsured claim is all it takes to put an otherwise "healthy" company into bankruptcy". So counsels David M. Governo and David Rhein, i"Avoiding Legal Liability in Disaster Remediation", an article published in Restoration and Remediation Magazine, Spring 2007 edition.

 

 


3/16/2007 - Air Cleaner Cases Speak to Truth in Advertising

David M. Governo published in Indoor Environment Connections warns of the perils of over-promising and under-delivering, as highlighted by the recent settlements concerning the marketing of air purifiers from Brookstone and Sharper Image.

David Governo states, "these settlements serve as a warning to other manufacturers of air purifiers that may be at risk for litigation due to claims they make. False or deceptive advertising can cost a company millions of dollars, it is imperative for companies to analyze their potential for liability and to use careful, precise and accurate language in advertising."


11/1/2006 - Rethinking Arbitration
By Michael Katz and James Young.  Published by Claims Magazine.  Insurers and reinsurers who believe that the current system of reinsurance arbitration represents a more efficient way of resolving reinsurance claims find themselves at a disadvantage because of inequities and ambiguities in the U.S. system.  As a result, many questions are arising about the current practices in arbitration when instead there should be a greater emphasis on neutral, impartial arbitrators and more meaningful documentation of opinions.

8/14/2006 - Business Interrupted: Preventing Coverage Disputes

By James Young.  Published in National Underwriter.  As recent disasters – both natural and manmade – have dramatically increased the number of business interruption claims, coverage challenges have become a more important issue to corporate insurance buyers.


7/6/2006 - Genuine Mold

David Governo quoted in "Genuine Mold", an article in which Charles Wardell outlines the route to successful mold remediation. This article appears in the May/June 2006 edition of Coastal Contractor . . .


6/23/2006 - A Look at Environmental Laws and Regulations

It is impossible to know every environmental law and regulation that impacts the cleaning and restoration industry, since it is very diverse and the rules change so quickly. Yet, to avoid liability and penalties, it is crucial for contractors to comply with the current regulations associated with a particular project. Which essential cleaning and restoration issues require governance?


11/3/2005 - Courts Cracking Down on Establishments Serving Intoxicated Patrons

Written by Kevin Ward and James Young.  The Observer, published by the Pennsylvania Tavern Association.  Establishments that serve alcohol are under increasing scrutiny given Pennsylvania’s and other states’ efforts to curb drunk driving and its effects.  The establishments that serve alcoholic beverages, as opposed to the intoxicated driver, are the targets of civil lawsuits as they are perceived to be able to pay large judgments.


9/26/2005 - Professional Liability Insurance: Why Industrial Hygienists Need It

Whether you are an independent contractor or an employee, insurance for your potential liability is an essential aspect of a solid financial foundation.  This article discusses the importance of professional liability insurance to industrial hygienists.  In particular, it highlights the liability that industrial hygiene professionals without such coverage may face. 


8/1/2005 - Cut to the Check: Direct Pay Authorizations and Contracts (Originally published in "Cleaning & Restoration")

In all types of industries, business owners are constantly establishing policies and implementing methods to ensure payment for work performed.  Unlike manufacturers that collect receivables with some reliability, companies in the service sector have to work vigorously to receive what they are due.  Contractors in the cleaning and restoration industry are no different when it comes to the age-old problem of guaranteeing that they will be paid.

 

However, unlike many other industries, restoration contractors are typically paid by someone other than the client.  This article discusses how contractors can utilize their serve contracts and another document, commonly known as a “Direct Pay Authorization,” to facilitate payment for their work directly from insurance companies. 


8/1/2004 - Liability Insurance: What is it and Do I Have Enough of it? (Originally Published in "Cleaning and Restoration")
If you think taking care of your company’s insurance needs means merely contacting your local insurance agent, purchasing a commercial general liability policy package and feeling confident that you have properly safeguarded your company, you may be in for a surprise.  In this extraordinarily litigious society where people tend to sue for just about any type of accident, buying a run-of-the-mill insurance policy and hoping for the best is not an effective way to protect your business.  Nevertheless, the head-in-the-sand approach is common practice for many, including those in the cleaning and restoration industry.  One factor that perpetuates this problem is a fundamental lack of education about insurance and the various options available in today’s marketplace.  Insurance is complex and cannot be addressed thoroughly in just a few pages.  With that said, this article will provide an explanation of some fundamental insurance intricacies and issues to consider before purchasing or renewing insurance.
3/1/2004 - Protecting Yourself from Liability (Originally published in "Cleaning & Restoration")
For cleaning and restoration companies, understanding the legal process and incorporating it into your business practice enables you to reduce the risk of liability and increase your competitive edge.  This article identifies a number of basic steps that you can take to protect yourself from legal liability in the cleaning and restoration work you perform. These steps fall into two categories: (1) avoiding lawsuits and (2) protecting yourself from liability in the event you are sued.
10/29/2003 - Directors’ & Officers’ Liability Insurance – The Fundamentals (Originally presented to Sterling Education Services)

Directors’ and officers’ (D&O) liability insurance policies provide coverage for claims brought against the directors and officers of a corporation, not against the corporation itself.   Since their introduction in the 1930’s, the expansion of federal securities laws and the enactment of a myriad of other federal statutes have resulted in dramatically increased liability for directors and officers.

 

This article describes the types of liability directors and officers face.  It then examines common provisions and exclusions in D&O policies, including the insurer’s obligation to defend.  The final section of this article explains how variations of definitions of three terms; “loss,” “wrongful act,” and “claims,” impact the scope of protection provided under D&O policies. 


2/1/2003 - Bad Faith Insurance Claims in Mold Litigation (Originally published by Lorman Education Services)
For the better part of a decade, indoor air quality issues have been a focus of the technical, scientific and medical communities. Until recently, however, indoor air quality complaints have not been a major factor in toxic tort litigation. Mold has changed this dramatically. Panic over the presence and potential effects of mold has erupted into a mad scramble of activity on many fronts: sampling, testing, analysis, remediation, potential health effects and responsibility. From within this maze, insurance claims arise. Insurers, caught up in the flurry of mold panic, have been accused of handling these claims in “bad faith.” This article explores some of the challenges mold claims have presented to insurers faced with the daunting task of handling these claims and describes how insurers can minimize the potential for adverse rulings.
Related Presentations
9/16/2005 - Legal Risk Management: Weather the Day-To-Day Storms

David M. Governo’s presentation at ASCR’s Weathering the Storm: Winning Solutions for Turbulent Times, which was held in St. Louis, Missouri September 14-17th, illustrated how the legal system can operate as an ally to provide both legal protection and competitive advantage, by imposing a consistent structure that results in efficiencies and profits.

10/29/2004 - Directors’ & Officers’ Liability Insurance – The Fundamentals (Presented to Sterling Education Services)

Directors’ and officers’ (D&O) liability insurance policies provide coverage for claims brought against the directors and officers of a corporation, not against the corporation itself.  

 

This presentation compliments the article of the same name, outlining the types of liability directors and officers face, examining common provisions and exclusions in D&O policies, and discussing how varying interpretations of three terms, “loss,” “wrongful act,” and “claims,” impact the scope of protection provided under D&O policies. 

2/11/2004 - Bad Faith Insurance Claims In Mold Litigation (Presented to Lorman Education Services)
Complimenting the article of the same name, this presentation outlines some of the challenges mold claims have presented to insurers faced with the daunting task of handling them and proposes suggestions to minimize the potential for adverse rulings.

 

     
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  1/20/2010 
Study Identifies Parking Lot Sealer as Cancer Risk

Scientists with the U.S. Geological Survey have found a high rate of cancer-causing substances in house dust, a finding which they have linked to coal tar sealant used in parking lots and driveways to protect the pavement.


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  11/12/2008 
Consumer Product Safety Improvement Act of 2008

The Consumer Product Safety Improvement Act of 2008 (CPSA), signed into law in August of 2008, effects how nearly all manufacturers, sellers, distributors and retailers do business.


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