Hunton Insurance Recovery Blog

On March 30, 2016, Florida’s Second Judicial Circuit (Leon County) declared that the personal and commercial residential policy data and report submitted by State Farm Florida Insurance Company (“State Farm”) to Florida’s Office of Insurance Regulation (“OIR”) constitute trade secrets under Florida law and are thus immune from public disclosure under Florida’s Public Records Act. Beginning in the first quarter of 2014, State Farm began filing its Quarterly and Supplemental Reporting System (“QUASR”) reports with “trade secret” designation. On May 15, 2014, State Farm filed a declaratory action in Florida’s Second Judicial Circuit in and for Leon County, requesting that the Court declare: (1) State Farm’s QUASR data and report are trade secretes under 812.081 and 688.022, Fla. Stat.; and (2) that State Farm’s QUASR data and report are exempt from public disclosure under Florida’s Public Records Act because they are trade secret.

Last week, Chubb announced that it would begin offering personal lines coverage in four states for costs related to cyberbullying. The coverage would reportedly insure costs for “psychiatric services, rest and recuperation expenses, lost salary, temporary relocation services, education expenses, professional public relations services, and cyber security consultants.”

The cyberbullying protection would cover expenses up to $60,000. Chubb will offer the coverage to its homeowners insurance policyholders who purchase a Family Protection policy, which Chubb says ...

Yesterday, a federal judge in the District of Columbia rescinded a regulatory order designating MetLife as a systemically important financial institution (“SIFI”). In December 2014, MetLife joined AIG and Prudential as the only insurance companies designated as SIFIs – a designation that subjected the insurers to additional regulation by the Federal Reserve and additional capital requirements. Unlike AIG and Prudential, MetLife took its challenge to the federal courts. And yesterday the court rewarded MetLife’s persistence.

The court released only a two-page ...

Earlier this week, Eustis Insurance Co. (Eustis) filed a third-party complaint against wholesale insurance broker, R-T Specialty, Inc. (R-T Specialty), after the broker allegedly failed to properly advise New Hotel Monteleone, Inc. (Hotel Monteleone) about its cybersecurity exposures and coverage that R-T Specialty was tasked to procure. The case represents another example of the exposure that might result from a failure to engage brokers and coverage counsel experienced in the risks to be insured. This potential is especially significant when it comes to cyber exposures, which are vastly different from the legacy exposures that brokers and insurers are accustomed to handling.

Last week, two blind customers sued Sweetgreen, a D.C.-based salad chain, alleging violations of Title III of the Americans with Disabilities Act of 1990 (ADA) and sections of New York’s Human Rights statute. In the Complaint, the customers claim that Sweetgreen’s online ordering system “prevents blind customers from customizing and placing their orders in the same way as sighted customers can.” Title III prohibits discrimination on the basis of disability at “places of public accommodations,” like restaurants, movie theaters, schools, and recreation facilities. Courts are split about whether “places of public accommodation” are limited to actual physical structures or include websites that are part of an integrated merchandising effort. The tide is pressing toward the broader reading of the statute, emboldened in part by the Department of Justice’s long-awaited website accessibility regulations (now set to be published in fiscal year 2018).

On March 18, 2016, a Florida jury awarded Hulk Hogan (real name Terry Bollea) $115 million in damages in his lawsuit against Gawker.com. Mr. Bollea sued Gawker in Florida state court after it published portions of a video showing him having sex with the wife of a former friend, Todd Clem (a DJ better known as Bubba the Love Sponge). Mr. Bollea claimed he did not know he was being filmed and sought $100 million. He claimed, among other things, that his “goodwill, commercial value, and brand [were] substantially harmed” and that he suffered emotional distress by the posting. Following trial, the jury deliberated for six hours and awarded more than the amount sought: $55 million for economic harm and $60 million for emotional distress. On March 21, 2016, the jury awarded an additional $25 million in punitive damages.

As the New York Times recently reported, Bill Cosby joins the ranks of celebrity homeowners who have tapped defense coverage under their ordinary homeowner’s insurance. Others who paved the way include Roger Clemens, O.J. Simpson, and Bill Clinton. Each had “enhanced personal injury clauses” buried in the fine print of their policies that can provide a defense against lawsuits.¹ Bill Cosby has such a policy, and a federal court in California recently denied American International Group’s (“A.I.G.”) request to allow A.I.G. to immediately appeal an earlier decision which held that a “sexual misconduct” exclusion in Mr. Cosby’s homeowner’s policy did not limit this coverage and that A.I.G., therefore, owed a duty to defend Mr. Cosby against a lawsuit brought in California state court by Janice Dickinson (“Dickinson action”).² In denying A.I.G.’s request for an interim appeal, the court determined that it would be more efficient for the Ninth Circuit to “analyze all exclusions of the policy at the same time.”³

On Monday, a Tennessee jury awarded $55 million to FOX sportscaster Erin Andrews in her suit against Michael Barrett, her stalker, and the Marriott hotel where they both stayed. In 2008, Mr. Barrett secretly videotaped Ms. Andrews through a peephole as she changed clothes in her hotel room. Hotel staff had revealed that she was staying at the hotel and, upon Mr. Barrett’s request, gave him a room next to hers. Mr. Barrett’s surreptitious video of Ms. Andrews was later made public. Ms. Andrews sued Mr. Barrett, West End Hotel Partners, LLC (the owner/franchisee of the hotel) and Windsor Capital Group, Inc. (the operator of the hotel) for negligence, invasion of privacy, and infliction of emotional distress causing embarrassment. The jury found the hotel’s owner and operator 49% at fault, comprising approximately $27 million of the total verdict.

With nearly 2000 locations, the recent outbreaks linked to Chipotle restaurants involving three strains of E. coli, norovirus and Salmonella, have had a substantial impact on the fast-food chain’s supply chain.  In a recent article appearing in Risk Management Magazine, The Chipotle Outbreaks Highlight the Risks of Supply Chain Failures, Syed comments on the insurance issues that are likely to arise, and the ways those issues might be affected by the post-event conduct of affected companies.

A New York trial court has ruled that TransCanada Energy USA Inc. (TransCanada) is entitled to recover $58 million from its property insurers for loss caused by a cracked generator turbine rotor.  The recovery encompasses approximately $7 million in property damage to the cracked turbine and more than $50 million in lost profits.