Recent Decision Raises Many Questions About Privilege Of Internal Investigations
Posted on Jan 26, 2015
Before your company launches its next internal investigation, it would be wise to consider a recent opinion from a federal magistrate judge in the U.S. District Court for the Eastern District of Louisiana, which if stands, elevates the bar for making sure that the documents created in an internal investigation can be protected from discovery in litigation. The court, applying federal common law of privilege in a maritime action, ordered the production of most documents prepared in an oil and gas company’s internal investigation of an incident over the company’s assertions of...
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State’s Workers’ Compensation Law Contains Conflicting Provisions For Protecting Subcontractors
Posted on Jan 24, 2015
The Court of Appeals of Texas recently considered whether the Texas Workers’ Compensation Act (TWCA) bars suit against an independent subcontractor whose employees were covered by the general contractor’s workers’ compensation insurance policy. The court, after determining that two provisions of the TWCA are in conflict, failed to answer the question and instead affirmed the lower court’s denial of summary judgment as a matter of law. The question, therefore, remains an open one. In the case, an injured worker employed by a contractor sued a subcontractor for...
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Ordinance or Law Coverage Endorsement Found Not Applicable Following Ammonia Leak In Piping System
Posted on Jan 21, 2015
An ammonia leak occurred following an incident at a California ice plant when a heavy basket containing water fell that led to a rupture in the plant’s piping. The owner of the plant made an insurance claim on its general commercial liability insurance policy and the insurer and the owner disputed the amount of available coverage. Specifically, the insurer contended that the policy covered the direct physical damage to the ammonia piping but that it did not cover damage caused by the corrosion and deterioration of the plant’s 40-year old piping system (which was discovered when...
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Court Orders Production Of Safety Manuals And Procedures On Attorneys’ Eyes-Only Basis
Posted on Jan 20, 2015
In a discovery dispute arising in a worker injury case, a Louisiana federal court had to resolve a motion for a protective order seeking to prevent discovery of certain types of information. Among the categories of documents sought included the company’s safety manuals and procedures. The objection specifically said that this “Subpoena Request seeks information or documents that contain or constitute trade secrets, proprietary information, or other confidential business information. [Party] has expended a considerable amount of time creating and updating its safety manual and...
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Understand Privilege Issues Before Relying On “Advice Of Counsel” Defense
Posted on Jan 19, 2015
An insurance company hired a claims adjuster to investigate an insured’s claim and the adjuster estimated the net claim to be only $1,081. The insurance company paid that amount, but after the insured later learned that its damages could be closer to $1 million, the insured brought suit against the insurance company and the adjuster, including for claims of extra-contractual and punitive damages. The insurance company eventually settled the case for $1 million and then sued the adjuster for equitable indemnity and negligence. In discovery, the insurance company disclosed a claim...
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Time To Review Any Independent Contractor Relationships In New Jersey
Posted on Jan 16, 2015
On Wednesday, the Supreme Court of New Jersey articulated the test to be used in determining whether a worker is an independent contractor or employee for purposes of the state’s Wage Payment Law and Wage and Hour Law. Any company that contracts with independent contractors in New Jersey should take note of the decision, which found that the test for resolving wage payment and wage and hour claims should be the same as the challenging “ABC” test used in New Jersey unemployment proceedings. New Jersey’s highest court issued the decision in response to a certified question from the U.S. Court...
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Proximity Detection Systems Now Required For Continuous Mining Machines
Posted on Jan 15, 2015
Earlier today, the Mine Safety and Health Administration (MSHA) published a final rule that is effective March 16 requiring underground coal mine operators to equip continuous mining machines (except full-face machines) with proximity detection systems. Any new machines manufactured after the effective date must be compliant with the rule’s requirements by November 16. Some mining companies already rely on these systems to promote safer workplaces, and those machines with a proximity detection system must be compliant with the rule’s requirements by September 16, 2016. For any...
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