CM Report of Recent Decisions
2007 Volume 3
A summary of significant recent developments in the law focusing on substantive issues of litigation and featuring analysis and commentary on special points of interest.
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Articles in this report
Appellate Court Rejects Request To Reform Contract To Create Additional Insured Status In Connection With 69 West Washington Fire
A deadly fire occurred in the Cook County Administration Building at 69 West Washington in Chicago. The County, and the company that managed the county-owned building, sought coverage for the underlying lawsuits as additional insureds under the CGL policy issued to a security services subcontractor. The trial court found coverage but the appellate court reversed in Clarendon America Ins. Co. v. 69 West Washington Management LLC, 870 N.E.2d 978 (Ill. App. 2007)
E-Discovery Alert! Protect Against Court Sanctions
Under the new federal rules, companies must preserve e-mails and other electronic data when litigation is anticipated. At some point early in litigation, you also may receive a “litigation hold” letter, from an attorney who is representing a former employee. “Litigation hold” letters put you and your company under the responsibility to warn employees to preserve electronic data immediately.
Fifth Circuit Rejects Finding Of Coverage For Hurricane Katrina Losses Where Flooding Was Allegedly Caused By Negligence
The United States Court of Appeals for the Fifth Circuit holds that flood exclusions in property insurance policies preclude coverage for flood damage occurring after allegedly negligently designed/constructed/maintained levees in New Orleans ruptured in the wake of Hurricane Katrina, allowing floodwaters to inundate the city.
Fourth Circuit Holds Ocean Carrier's Post-Settlement Status As Cargo Owner Does Not Affect Its Ability To Seek Indemnity Under Stevedoring Agreement
In American Roll-On Roll-Off Carrier, Inc. v. P & O Ports Baltimore, Inc., 479 F.3d 288 (4th Cir. 2007), the Fourth Circuit held that an ocean carrier's ability to seek indemnity from a stevedoring company under the stevedoring agreement was not affected by its status as a post-settlement cargo owner.
Landmark OSHA Ruling Curtails General Contractor Risk
For most of this time, OSHA has been able to cite general contractors for subcontractors' safety violations, regardless of the general contractor's level of control over the subcontractor. A recent ruling by the Occupational Safety and Health Review Commission (OSHRC) in Secretary of Labor v. Summit Contractors, Inc. may significantly curtail this power, however, and dramatically change the landscape of OSHA regulation.
Louisiana Appellate Court Holds Valued Policy Law Requires Payment for Face Value of Insurance Policy When Efficient Proximate Cause Is A Covered Peril
Reversing the trial court's entry of summary judgment in favor of the insureds and remanding for further proceedings, the appellate court stated that for the insurer ("Citizens") to prevail, it bears the "clear burden" to show that flood, an excluded peril, was the efficient or proximate cause of the total loss to the insureds' home.
