Selected case representations:
PepsiAmericas, Inc.Our insurance recovery lawyers obtained a favorable ruling for PepsiAmericas, Inc. in connection with the Federal-Mogul bankruptcy proceedings that will preserve our client's insurance assets that were jeopardized by a proposed reorganization plan. Federal Mogul filed for bankruptcy as a result of asbestos liabilities arising from operations in the United States and Great Britain. The proceedings, which lasted over a period of five years and involved more than $4 billion in international operations, culminated in 2007 in a confirmation hearing held before Judge Judith Fitzgerald in Pittsburgh. More than 250 lawyers were involved in the seven-day confirmation proceedings, with the Morgan Lewis team taking a lead role in cross examination of witnesses and argument to the court.
The Federal-Mogul bankruptcy involved unsettled areas of bankruptcy law arising from 11 U.S.C. § 524(g), a provision passed by Congress to assist asbestos company defendants in resolving pending and future asbestos liabilities through the bankruptcy reorganization process. PepsiAmericas challenged a proposed reorganization plan on the grounds that it would unfairly affect its contractual rights under insurance policies to which Federal-Mogul and certain non-debtor companies claimed rights. Judge Fitzgerald's decision squarely rejected the challenged reorganization plan, adopted many of the arguments and authorities advanced by PepsiAmericas, and clarified the scope of injunctions affecting non debtors in § 524(g) bankruptcies.
J.P. Morgan Chase & Co.
Morgan Lewis is pursuing substantial insurance claims from Chase’s insurers for film financing losses. An international team of Morgan Lewis attorneys is handling these cases on behalf of Chase in suits pending in state and federal courts in New York, California and Texas and proceedings in Australia and the United Kingdom. Morgan Lewis recently achieved a significant victory against insurers following a two-month trial in New York.
Federal Pacific Electric Company
Morgan Lewis is handling a multistate environmental insurance recovery case in New Jersey state court for a global electronics and electrical equipment manufacturer. This follows a series of related insurance actions throughout the country. The Federal Pacific representation is notable for diverse reasons, including cutting-edge scientific and legal analyses of the so-called "pollution exclusion".
Western MacArthur Company
For this former asbestos insulation products installer and distributor, our lawyers obtained extraordinary litigation results, recently capped by a $1.15 billion settlement with Hartford, representing only a portion of the more than $2 billion in recoveries to date for this client.
Shell Oil Company
Our insurance recovery lawyers tried the first major environmental coverage case in California, Shell Oil Company’s claim to insurance for an estimated $1 billion in environmental cleanup costs arising out of pesticides manufacture at the Rocky Mountain Arsenal. After a two-phase, six-month trial, the jury rendered a verdict against Shell. We appealed and persuaded the court of appeal to reverse. Subsequently, we prepared for and commenced retrial. Six weeks into the second trial, we reached settlements with the two major defendants, Lloyd’s and Travelers Indemnity Company, and the others shortly followed suit.
Our insurance recovery lawyers also handled a major product liability insurance coverage action for Shell. The case involved insurance coverage for actions brought against Shell throughout the country for alleged defects in polybutylene plumbing systems. Shell manufactured resin from which polybutylene pipes were manufactured. The case finally settled on the eve of trial, after a number of years of litigation against several insurers that issued CGL policies to Shell.
Brokerage Firm Fidelity Claim
Morgan Lewis lawyers successfully resolved a large fidelity bond claim, involving losses to a brokerage company arising from a scam in which the company was defrauded by third parties who opened brokerage accounts with stolen and altered United States Treasury Department tax refund checks. Accounts were opened in the names of the payees on those checks, and monies were then diverted from the accounts before it could be determined that the checks had been stolen. After an extensive period of negotiation and threatened litigation, the insurance carrier agreed to pay a large percentage of the company’s loss.
Baker Commodities
Following active litigation, Morgan Lewis lawyers were able to settle for most of the cost involved in rebuilding a rendering plant in Billerica, Massachusetts, as well as lost business income and extra expenses. Among other things, the carriers balked at paying for the increased costs of rebuilding the plant that resulted from government-mandated safety and environmental measures.
Mold Damage Claim
Morgan Lewis successfully obtained coverage of approximately $20 million for repair and remediation of substantial water and mold property damage to a 258-unit apartment complex. The recovery included loss of rental income and loss of tax credits.
The Gap
Morgan Lewis lawyers prevailed on a motion for summary adjudication regarding the duty of The Gap’s carriers to pay for the defense of purported class-action claims arising in Saipan alleging, among other things, false imprisonment and violations of the 13th Amendment.
September 11, 2001 Losses
Morgan Lewis lawyers obtained a ruling entitling American Airlines to proceed directly against the reinsurers of American’s insolvent primary insurer to recover September 11 claims estimated to be in excess of $100 million. In addition, Morgan Lewis lawyers represent several securities firms, technology companies, and media companies in their efforts to recover property damage and business interruption losses arising from the September 11, 2001 terrorist attacks at the World Trade Center.
Director’s and Officer’s Liability Coverage
We regularly are called upon to consult with our clients that are named as defendants in securities fraud and breach of fiduciary duty claims that implicate their D & O liability policies. Currently, we are involved on behalf of a client named in six separate actions brought by the client’s D & O insurance carriers seeking rescission of the policies because of alleged misrepresentations in the procurement of the policies. The carriers allege that because financial results submitted to the SEC were restated, the application included with those forms was misleading.
Products Liability Insurance Coverage
Morgan Lewis represented an industry trade association in a coverage dispute with its product liability insurers arising out of multiple class actions alleging injuries from exposure to new carpets, and obtained complete defense and indemnification for the client against those claims.