New York CM Report of Recent Decisions (2008v3)
2008 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
Excess Insurers Breached Duty Of Good Faith And Their Bad Faith Cross-Claims Dismissed
Failure To Supervise Local Counsel Is Legal Malpractice
The Appellate Division reversed the trial court’s denial of Plaintiff’s summary judgment motion which sought to establish that Defendant law firm committed legal malpractice as a matter of law. Plaintiff alleged that Defendant law firm was vicariously liable for the negligence of local counsel retained by Defendant law firm and negligent in failing to supervise local counsel.
New York’s Highest Court, The New York Court of Appeals, recently held that where facts alleged in a complaint allow for a “reasonable inference” that corporate officers knew of a fraudulent scheme, the heightened pleading requirements for fraud under CPLR 3016(b) are satisfied.
Texas Court Reduces Plaintiff's Damages
The Texas Court of Appeals reduced a consequential damages award by $40,000.00 in order to comply with a provision of the Texas Insurance Code prohibiting awards in excess of three times the amount of actual damages. The underlying action was brought by the owners of a thoroughbred race horse against Insurance Corporation of Hannover, for a claim related to the death of the horse.
University Hospital Settles Medicare Fraudulent Billing Claims For $88.9 Million
On September 10, 2008, Staten Island University Hospital agreed to pay federal and state authorities $88.9 million to settle claims that it over billed or improperly charged Medicaid, Medicare and TRICARE, the military’s health insurance program. This settlement is among the largest for a healthcare fraud case against a single hospital in U.S. history.
