Insurance Recovery — Representative Matters

• Property Damage, Business Interruption
• Fidelity, Crime, Surety and Other First Party Insurance
• Third Party, Commercial and Comprehensive General Liability Insurance
• Director & Officer, Fiduciary And Errors & Omissions Insurance

First-Party Claims

We have obtained substantial recoveries for companies who have suffered a wide array of business interruption, property damage and other first party losses raising complex legal and factual issues. Lawyers in Orrick’s Insurance Recovery group:

Property Damage and Business Interruption

• Won a verdict on behalf of Pacific Gas and Electric Company after a two-month jury trial in Sonoma County, California, in a US$40 million insurance coverage dispute with AIG/National Union.
• Represented Hewlett-Packard Corporation in a major first-party property and business interruption claim arising out of a loss in the market for high end Unix servers.
• Represented Paxson Communications Corporation in multi-state litigation regarding its property damage, business interruption and extra expense losses incurred as a result of the September 11, 2001, terrorist attacks.
• Represented New York and Washington, D.C., Hard Rock Café restaurants in international litigation regarding business interruption claims resulting from the September 11, 2001, terrorist attacks.
• On behalf of Niagara Mohawk Power Corporation, successfully arbitrated property damage claim resulting from storm-downed power lines.
• Represented RAG American Coal Holding, Inc. in two major property damage, extra expense and business interruption claims following a mine fire and an explosion.
• Obtained a judgment in excess of US$10 million for our client, Roskam Baking Company, in a two-week trial regarding insurance coverage for property damage and business interruption claims resulting from a catastrophic fire.
• Currently represent Fremont Group regarding coverage for property damage caused by a hurricane to a Florida real estate development.

We also represent our clients in confidential settlement negotiations outside of litigation, including:

• A financial services company in a claim for losses resulting from the September 11, 2001, attacks on the World Trade Center.
• An oil company in a claim against its insurer for business interruption due to a major refinery fire.
• A major steel manufacturer in a claim involving first-party and business interruption losses resulting from an explosion at one of the steel manufacturer’s facilities.
• A cable television provider in negotiations to settle claims for first-party loss, business interruption and bad faith, arising from typhoon damage.

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Fidelity, Crime, Surety and Other Specialized First Party Insurance

• Represented Fujitsu regarding claims under its union ERISA plans.
• Recovered, on behalf of National Pacific Mortgage, under a banker's bond virtually all losses arising from mortgage defaults by unqualified buyers whose loans were improperly approved by a dishonest company executive in violation of federal insurance regulations.
• Represented and counseled various financial services and other companies in connection with claims for coverage under corporate crime and fidelity policies.

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Third-Party Claims

We have represented policyholders in many of the largest and most complex cases involving third-party liability insurance, successfully obtaining recoveries for our clients through negotiations or, when necessary, litigation. Lawyers in Orrick’s Insurance Recovery group:

Commercial and Comprehensive General Liability Insurance

• Served as one of Fibreboard Corporation's trial counsel in In re Asbestos Insurance Coverage Cases, a trial that spanned five years and was described by the Washington Post as the largest case ever tried. By winning all major issues in this seminal insurance coverage case regarding asbestos-related personal injuries, Fibreboard was able to obtain several billion dollars from its insurers in a global settlement.
• Represented Johns-Manville Corporation as trial counsel in the Coordinated Asbestos Insurance Coverage Actions, involving Johns-Manville's claims for insurance coverage arising out of its asbestos-related liabilities, ultimately securing almost US$1 billion on behalf of the client.
• Represented Bank of America, N.T. & S.A. in parallel actions in both California and Hawaii involving claims for "advertising insurance" coverage.
• Represented American Home Products Corporation in a complex declaratory judgment action to determine the company’s right to insurance coverage for liability imposed against the company as a result of environmental contamination at dozens of sites located across the United States. We also represented AHP in a complicated and unique arbitration, conducted under Bermudan law, regarding personal injury claims allegedly caused by implantable, long-term birth control devices.
• Tried a 12-week pollution coverage case on behalf of Shell Oil Company arising from decades-old pollution at the Rocky Mountain Arsenal in Colorado. This was a retrial of a case originally tried 10 years earlier by prior counsel with disastrous results for the client. The original adverse judgment was reversed on appeal. Two weeks before going to the jury, the defendants agreed to an extremely satisfactory settlement.
• Represented LensCrafters, Inc. in matters in California and New York seeking insurance coverage for class action lawsuits alleging privacy torts; won summary judgment establishing the duty to defend.
• Represented Weyerhaeuser in obtaining insurance coverage under liability policies for class action lawsuits alleging defective roofing products.
• Represent Teck Cominco Metals Ltd., a major Canadian mining and smelting company, in multinational litigation involving insurance coverage of cross-border environmental exposures under CERCLA arising from smelting operations in Canada. The case is currently pending before the Supreme Court of Canada.
• Represented Texaco Inc. in an action pending in California in connection with environmental coverage claims arising out of former Texaco operations throughout Canada.
• Represented Sony Electronics on several insurance issues and on product claims related to consumer products and marketing issues.
• Represented Avondale Industries, Inc., a shipbuilder, in Avondale Indus., Inc v. Travelers Indem. Co., a landmark victory for policyholders in insurance law in the United States Court of Appeals for the Second Circuit.
• Served as lead trial counsel for Syntex Corporation in a three-month court trial followed by a five-month jury trial to obtain insurance coverage for claims arising out of dioxin contamination in Times Beach, Missouri. The claims involved actions both in Missouri and California.
• Represented SI Corporation, a manufacturer of building products, in a series of lawsuits claiming product defects in the client's flagship product; the lead case was tried for five weeks to a jury in Los Angeles County Superior Court, resulting in a complete defense verdict in favor of client.
• Represented McCormick & Baxter Creosoting Co. in a major insurance coverage action which resulted in a landmark opinion by the Oregon Supreme Court (McCormick & Baxter Creosoting Co. v. St. Paul Fire & Marine Insurance Company).
• Successfully litigated claims against Mentor Corporation's insurers in California and Minnesota for liabilities arising from its breast implant devices, and negotiated the funding by those insurance companies of Mentor’s nationwide mandatory class settlement of all breast implant claims, which was the first such settlement in the implant litigation. We also counseled Mentor in its pursuit of coverage for claims arising from other medical devices.
• Represented Odwalla in litigation involving the AIG Insurance Group, successfully negotiating the defense and indemnification by Odwalla’s insurers of claims alleging that the E.coli contamination of the company’s apple juice had caused death and other bodily injuries, and also assisted with Odwalla's defense against the food contamination claims.
• Served as lead trial counsel for Kelly-Moore Paint Company in a successful jury trial in San Francisco County Superior Court, seeking insurance coverage for asbestos-related liabilities. The ultimate recovery is confidential.
• Represented Adolph Coors Co. in Adolph Coors Co. v. American Ins. Co., in which a Colorado federal court sanctioned Liberty Mutual for its “hardball litigation,” and ordered Liberty to defend Coors’ environmental claims and subsequently ordered Liberty to pay Coors’ insurance coverage attorney fees.
• Represented Wisconsin Electric Power Company, a major regional utility company, in litigation to recover insurance for environmental claims arising from historical operation of manufactured gas plants and ash landfills.
• Represented Michigan Consolidated Gas Company, a major gas utility, in litigation and settlement of environmental claims arising from historical operation of manufactured gas plants.
• Represented the Cities of Littleton & Englewood in Compass Ins. Co., et al v. City of Littleton & City of Englewood, a landmark victory for municipalities and policyholders in insurance law, in which the Colorado Supreme Court ordered insurance companies to defend the cities against environmental claims at the Lowry Landfill.
• Successfully argued before the United States Court of Appeals for the Second Circuit on behalf of Connell Limited Partnership in Connell Limited Partnership v. Dayton Industries, Inc., a case involving coverage for product liability claims.
• Represented First Nationwide Bank and its successor Granite Management in a series of matters seeking insurance coverage for over 20 underlying construction defect lawsuits; was lead counsel in a federal court trial against Travelers that resulted in a verdict in favor of client on insurance coverage and bad faith claims; also handled an arbitration before the Judicial Arbitration and Mediation Service (JAMS) concerning claims for defense costs under CGL insurance policies.
• Represented Amorim America in insurance coverage disputes arising from claims of cork-caused damage to products.
• Represented Central Garden & Pet Company, a garden and pet supplies company, in an insurance coverage dispute involving third-party injuries arising from an industrial accident.
• Served as trial counsel for Ecko Housewares Company in a multiparty CERCLA cost-recovery action raising novel issues of successor liability and compliance with the National Contingency Plan.
• Represented Heat & Control, Inc., a leading manufacturer of food processing and packaging equipment, in a coverage dispute arising from an industrial accident.
• Represented PortoCork America, a packaging supplier, in insurance coverage disputes and litigation arising from claims of cork taint and product damage claims.
• Obtained an order from a Florida federal court that Tokio Marine & Fire Insurance Company defend our client, Weitz/Citadel, against construction liability claims.
• Represented Univar Corporation and Van Waters and Rogers in an environmental insurance coverage action pending in King County, Washington.

We also have obtained substantial recoveries for our clients in confidential settlement negotiations outside of litigation, including:

• Represented seven top-tier oil companies in global settlement of claims against insurers for environmental, toxic tort and product liabilities.
• Represented dozens of major regional electric and gas utility companies in negotiations to settle coverage of environmental claims arising from historical operation of manufactured gas plants.
• Represented a mining and smelting company in settlement negotiations and mediation to resolve global environmental claims.
• Represented various manufacturing companies and regional gas and electric utilities in proceedings and negotiations to recover proceeds from insolvent insurers under state insurance rehabilitation laws and in schemes of arrangement under U.K. law.
• Obtained a favorable arbitration award for a real estate developer in a one-week arbitration trial before the Judicial Arbitration and Mediation Service involving claims for defense costs under CGL insurance policies.
• Counseled a major construction materials company in claims against insurers for coverage for silica-related liabilities.
• Currently advise a futures representative in the bankruptcy of a major manufacturing firm in connection with debtor’s settlements with liability insurers regarding asbestos claims.

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Director & Officer, Fiduciary And Errors & Omissions Insurance

• Regularly represent Big Four accounting firms in coverage disputes related to professional liability and malpractice claims.
• Represented a health care company in a claim against its insurer for coverage for physician malpractice liability.
• Represented a venture capital firm in a claim against its fiduciary liability carrier.
• Represented a construction company in negotiations to secure coverage for alleged errors in building construction.

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