From Dave Stern of West Coast Casualty we learned that the Allstate Insurance Corporation agreed to pay as much as $120 million to settle a class-action lawsuit pending in Los Angeles County Superior Court, brought by its California claims adjusters, who sought back overtime pay, and compensation for meal and rest break violations. The settlement affects Allstate claims adjusters who worked in California from November 27, 1996 to December 31, 2004.

Approximately 2,000 adjusters are eligible to receive payments from $1,000 to $95,000, depending on their length of service and workload. Read More

The California Court Appeal recently opined that injuries caused by a bus driver’s after-hours attack on a bus passenger do not arise out of the use of the bus for insurance coverage purposes.
In this case, the insured owned and operated a shuttle bus service. When the shuttle bus driver encountered a run-away girl, he offered her a ride to his apartment (on the bus) where he suggested that she stay the night – and promised to drive her to the nearest shelter the next day. Read More

If you have not already received a notification, you may soon receive correspondence from California’s Air Resources Board requesting proof of compliance with its “Lo NOx Reflash Program.” This program, instituted as a result of “Heavy-Duty Diesel Engine Software Upgrade (Chip Reflash)” regulations which went into effect on March 21, 2005, requires owners of certain heavy-duty diesel trucks, school, transit and tour buses and motor homes operating in California, regardless of their state of registration, to upgrade computer software to better control NOx, smog producing emissions. Read More

In this case, Transportation Insurance Company moved for partial summary judgment on the grounds that it had no duty to defend Regency in a case between it and an individual homeowner (Rhoads).  Rhoads sued Regency for damages for mold injuries arising out of faulty installation of the roof, which caused leakage and flooding problems. Transportation had been providing Regency with a defense in the action since its commencement in January 2002, based on the existence of three primary insurance policies and three umbrella policies, spanning from May 2000 to May 2002. Read More

A Motion for Summary Judgment in the patent infringement case of Teleflex v. KSR was originally granted, then reversed, and then reviewed by the Supreme Court.  The following are thoughts on the Supreme Court’s ruling as presented by Firm Partner Robert M. Freedman:

The issue reviewed by the Supreme Court in this case was whether a patent can be granted, and then infringed upon, if the invention was one that would be an obvious solution for a problem in the marketplace, or known to the design community; and the inventor of the patent used skill and knowledge ordinary to someone skilled in the art, combined with inter-related teachings of prior patents and art. Read More