http://www.reedsmith.com/ en-us © Copyright 2013 Reed Smith LLP. All rights reserved. Wed, 19 Jun 2013 02:03:02 GMT Wed, 19 Jun 2013 02:03:02 GMT Join world class legal industry and insurance professionals from Reed Smith and Arthur J. Gallagher & Co. for an informative and interactive discussion on mitigating corporate risk exposures including:  Data Privacy/Security Liability, Investigations, Ethics & Compliance, Crisis Management, Regulation and Cyber Liability/Network Disruption/Cyber Extortion. http://www.reedsmith.com/events/detail.aspx?firmEvent=3534 Event http://www.reedsmith.com/events/detail.aspx?firmEvent=3534 Tue, 25 Jun 2013 21:00:00 GMT 6/25/2013 3:00:00 PM Policyholders received a boost of support from a New York Court of Appeals on Tuesday when the court held that an insurer is precluded from using policy exclusions as a means to escape its duty to indemnify a claim if it previously breached its duty to defend its policyholder by improperly denying coverage. The Court of Appeals handed down this ruling in K2 Investment Group, LLC v. American Guarantee & Liability Ins. Co., Case No. 106, affirming summary judgment in the plaintiff’s favor on its breach of contract claims. The defendant insurer in K2 Investment refused to provide its attorney policyholder a defense or indemnification in connection with an underlying legal malpractice lawsuit brought against him. Following the insurer’s refusal to provide coverage, the plaintiffs in the underlying action obtained a default judgment against the policyholder which was in excess of the insurance policy limits. The policyholder then assigned his rights against his insurer to the underlying plaintiffs who then brought an action against the insurer for breach of contract and bad faith failure to settle the underlying action. When the insurer attempted to escape its indemnification obligation by pointing to various policy exclusions, the Supreme Court held, and Appellate Division affirmed, that the insurer breached its duty to defend in the underlying action and was, therefore, bound to pay the full policy limits. http://www.reedsmith.com/publications/detail.aspx?publication=12543 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12543 Mon, 17 Jun 2013 00:00:00 GMT Captive insurance companies may now be domiciled in Texas under a law signed by Gov. Rick Perry on Monday. Texas joins more than 30 other states that permit the formation and operation of various types of captive insurance companies. The law provides a straightforward means for companies with significant operations in Texas to form their own captive insurance companies, or to re-domesticate existing captive insurers that were formed out of state. The law permits a captive insurance company holding a Texas Certificate of Authority to collect premiums and write insurance for its parent and its other subsidiaries and affiliates, as well as unaffiliated controlled businesses. The bill allows captives to underwrite various types of insurance for these affiliated and unaffiliated controlled companies, and then seek reinsurance to offset a portion of these risks. Licensure requirements include, among other things, “significant operations” in Texas, an annual board meeting, and payment of a premium tax with an annual floor of $7,500 and cap of $200,000. Although regulations remain to be written, the cap on the premium tax makes Texas a potentially attractive location for captive formation. The law also provides a means for Texas companies to ease their administrative burdens by re-domesticating the captive insurance companies they set up outside of Texas. http://www.reedsmith.com/publications/detail.aspx?publication=12498 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12498 Fri, 07 Jun 2013 00:00:00 GMT The Legal 500 United States 2013 has named Reed Smith a leading law firm in 21 practices, with two practices ranking among the publication’s “Top Tier.” The annual guide also recommended 70 of the firm’s attorneys, singling six of them out for recognition as “Leading Lawyers” in their industry sectors. The firm was named a “Top Tier” firm in Litigation – Product liability and mass tort defense: Pharmaceuticals and medical devices; and Media, technology and telecoms – Marketing and advertising. http://www.reedsmith.com/knowledge/detail.aspx?news=1937 News http://www.reedsmith.com/knowledge/detail.aspx?news=1937 Thu, 06 Jun 2013 00:00:00 GMT Companies defending claims in Illinois that they violated the Telephone Consumer Protection Act (TCPA) can breathe a sigh of relief: damages under the Act are insurable, according to the Illinois Supreme Court. Interpreting Congress’ intent in enacting the TCPA—which bans automated marketing phone calls and faxes, among other communications, without prior consent—the court held last week, on May 23, in Standard Mut. Ins. Co. v. Lay, 2013 IL 114617, that the $500 award for each violation of the Act is remedial, and not punitive, and thus is insurable under Illinois law. The court’s ruling is a significant victory for policyholders, as courts in Illinois had issued varied decisions on the issue over the past two decades, and Illinois companies remain frequent targets of class action suits alleging violation of the TCPA. http://www.reedsmith.com/publications/detail.aspx?publication=12430 Publication http://www.reedsmith.com/publications/detail.aspx?publication=12430 Tue, 28 May 2013 00:00:00 GMT May 24, 2013 – Reed Smith LLP today announced the 2013 rankings of its practices and lawyers in the United States by Chambers and Partners. The firm earned four nationwide practice group rankings and 21 statewide practice group rankings, including three statewide practices ranked in Band 1 – Pennsylvania Banking & Finance, Pennsylvania Bankruptcy/Restructuring and Illinois Insurance: Dispute Resolution. Seventy-two Reed Smith lawyers collectively earned 82 Chambers rankings for the year, including 13 Band 1 ranks. Lawyers named in Band 1 for 2013 include four recognized for their nationwide practices: Douglas J. Wood, Advertising: Transactional & Regulatory; Elizabeth Carder-Thompson, Healthcare: Regulatory & Litigation; John S. Vishneski, Insurance: Dispute Resolution: Policyholder; and Michael K. Brown, Product Liability & Mass Torts. Others lawyers at the firm ranked in Band 1 for 2013, their practice group and the states in which they practice included: Margaret Grignon, Litigation: Appellate, California; Kurt F. Gwynne, Bankruptcy/Restructuring, Delaware; John S. Vishneski, Insurance: Dispute Resolution and John Shugrue, Insurance: Dispute Resolution, both in Illinois; Murray J. Klein, Healthcare, New Jersey; and Claudia Z. Springer, Bankruptcy/Restructuring; Leonard A. Bernstein, Banking & Finance: Mainly Regulatory; Lisa D. Kabnick, Banking & Finance; Michael E. Bleier, Banking & Finance: Mainly Regulatory; and, Paul Singer, Bankruptcy/Restructuring, all five in Pennsylvania. Reed Smith’s lawyers singled out by the publication are members of 28 practices across the United States A complete list of the U.S. lawyers and practices ranked by Chambers in 2013 is available online at http://www.chambersandpartners.com/USA/Search/Firm/Reed-Smith. http://www.reedsmith.com/knowledge/detail.aspx?news=1929 News http://www.reedsmith.com/knowledge/detail.aspx?news=1929 Fri, 24 May 2013 00:00:00 GMT