AIG Domestic Claims, Inc. - LEGAL INSIGHTS: A Publication of Claims Resources and Solutions - Issue Management
Fall 2008
Inside This Issue
Topics
Regions

AIG Commercial Insurance

Introduction to Legal Insights

Welcome to the Fall 2008 edition of Legal Insights, a quarterly publication produced by the Issue Management Group of AIG Claims Resources and Solutions. Legal Insights is a compendium of updates and analysis of recent court decisions that potentially have more...
Northeast
Construction

A Win for General Contractors and Construction Managers

Pelletier v. Sordoni/Skanska Construction Company

A recent decision by the Connecticut Supreme Court represents an important victory for general contractors and construction managers in Connecticut. more...
Northeast
New York Labor Law

Lack of knowledge insufficient to insulate owner from liability under labor law §240

Sanatass v. Consolidated Investing

The New York Court of Appeals has recently held that a landlord is strictly liable under New York Labor Law § 240(1) for injuries to a worker, even though the injury- producing work was conducted without the landlord’s knowledge or consent, and in violation of the lease. more...
Northeast
Product Liability

New Jersey Supreme Court Sounds The Death Knell For Consumer Fraud Claims In Personal Injury Product Cases and Severely Limits Medical Monitoring Damages; Appellate Division Follows Suit, Limiting Availability of Punitive Damages.

McDarby v. Merck & Co., Inc.

In a huge win for manufacturers of pharmaceuticals, medical devices, and other consumer products, the New Jersey Supreme Court held on June 4, 2008, in Phyllis Sinclair v. Merck & Co., Inc.,1 that: 1) personal injury Consumer Fraud Act (“CFA”) claims are entirely subsumed by the New Jersey Products Liability Act (“PLA”); and 2) plaintiffs who do not allege a present physical injury may not sue for medical monitoring. more...

Northeast
Public Nuisance

Rhode Island Supreme Court Rejects Use of Public Nuisance Theories For Allegedly Defective Products

State of Rhode Island v. Lead Industries Association, Inc.

In this case, the Attorney General on behalf of the State of Rhode Island filed suit against various former lead pigment manufacturers and the Lead Industries Association, a national trade association of lead producers formed in 1928, for the use of lead paint in buildings throughout Rhode Island, which has resulted in high rates of lead poisoning in Rhode Island children. Id. at 1 (slip op.). more...
South
Toxic Tort

Mississippi Affirms Reversal of Multimillion-Dollar Benzene Suit Based on the Absence of Any Causation Evidence

Watts. v. Radiator Specialty, Co.

In a recent decision that provided a thoughtful Daubert analysis on admitting expert opinion testimony, the Mississippi Supreme Court recently affirmed the reversal of a multimillion-dollar benzene case based on the absence of any causation evidence. more...
Midwest
Product Liability

Similar Incident Evidence May Be Admissible To Prove Design Defects

Croskey v. BMW of North America

Applying Michigan law, the Sixth Circuit Court of Appeals has recently held that similar incident evidence may be admissible to prove design defects in a product liability action, Croskey v BMW of North America, et al. more...
Midwest
Premises Liability

Court Ruling May Significantly Limit Premises Liability Claims Against Landlords

Allison v. A.E.W. Capital Management

Anyone who has the potential to handle a premises liability case in Michigan against a landlord has been waiting for Michigan’s Supreme Court to issue an opinion in the Allison v A.E.W. more...
Pacific
Contractual Indemnification

California Supreme Court Upholds Contractual Duty to Defend; Despite Jury Finding Subcontractor Work Not Negligent

Crawford v. Weather Shield Manufacturing

J.M. Peters Co. (J.M. Peters) entered into a contract with Weather Shield Manufacturing Co. ("Weather Shield") whereby Weather Shield agreed "to indemnify and save [J.M. Peters] harmless against all claims for damages . . . loss, . . . and/or theft . . . growing out of the execution of [Weather Shield's] work," and "at [its] own expense to defend any suit or action brought against [J.M. Peters] founded upon the claim of such damage[,] . . . loss or theft." more...
Pacific
Negligence

Torts - Peculiar Risk - General Contractor Not Liable For Failing To Place Protective Railing on Patio.

Madden v. Summit View, Inc.

We periodically report on cases interpreting Privette v. Superior Court (1993) 5 Cal. 4th 689. more...
Federal
Securities Litigation

Second Circuit holds that a plaintiff may plead corporate scienter in securities fraud suit without pleading scienter of any specific individual defendant

Teamsters Local 445 Freight Division Pension Fund v. Dynex Capital, Inc.

In June, the United States Court of Appeals for the Second Circuit released its long-awaited opinion addressing the standard for pleading scienter of a corporate defendant in securities fraud actions. more...
Southwest
Dram Shop

Texas Supreme Court Interprets Dram Shop Act

20801, Inc. v. Parker

The Texas Supreme Court recently interpreted the Texas Dram Shop Act in an opinion that will affect lawsuits against sellers of alcoholic beverages brought by persons who claim their injuries resulted from alcohol having been served to an obviously intoxicated person. more...

Legal Insights is produced by the Issue Management Group of AIG Claims Resources and Solutions. Issue Management coordinates and expands upon a variety of technical claim initiatives, including legislative and tort reform efforts; tracking emerging claims-related issues; coordination of appellate issues, amicus briefs and appellate counsel; resource for technical bankruptcy claims issues; and liaison to underwriting units.

For questions or further information, please contact Bruce Margolin at (212) 770-1735, bruce.margolin@aig.com; or Steve Lessick at (212) 770-1381, steven.lessick@aig.com.

This document is presented for informational purposes only. The information contained herein highlights several developments in the areas of tort and insurance law and is not intended to represent these developments in their entirety or the entirety of developments in these areas. Neither the document nor the information contained herein is intended to be construed as legal advice and should not be considered legal advice. Readers should refer to the full text of the legislation for additional information and consult with their legal professional(s) regarding the applicability of these laws to their business operations. This report may not be reproduced, distributed, or copied without the prior written consent of the AIG companies.

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