Monitoring Counsel Services

The LGWM Insurance Coverage Practice Group often is called upon by carrier clients to serve as monitoring counsel in complex cases. Those services may be required where the policy involves no duty to defend, or where the insured has a high retention and choice of counsel. Those services also may be required where the carrier maintains an excess position.

As monitoring counsel, our team provides analysis and evaluation of the claim exposure, monitors the progress and cost of the defense, and assists in negotiating the carrier’s settlement contribution. If the need arises, we help carriers identify potential coverage issues that may exist, and navigate the claim to resolution, while ensuring the carrier’s coverage obligations are fulfilled. Often, our monitoring counsel services are requested in order to represent carriers at mediations, and to monitor trials.

Cases of Note

• Represented excess insurer in response to the reporting of potential claims against an insured investment management firm arising out of the Madoff Ponzi scheme. Analyzed coverage for claims subsequently made against the insured for alleged wrongful acts in failing to notify investors of the risks of investing in Madoff and various feeder funds.
• Advised insurer on coverage for insurance claims reported by insured international manufacturing company in response to SEC investigation of financial reporting practices and subsequent class actions filed against the insured in the U.S. and Canada. Representation involved analysis of the U.S. Securities Exchange Act and its Canadian counterpart, the Ontario Securities Act.
• Represented DO insurer in connection with claims resulting from the collapse of a failed casino project. Provided coverage advice to insurer under directors and officers liability and run off insurance policies following insured’s bankruptcy. Successfully negotiated a global settlement with the bankruptcy trustee.
• Monitored shareholder derivative suit involving allegations that an investment company acting as an investment adviser for various funds violated section 36(b) of the Investment Company Act of 1940 by charging excessive fees.
• Monitored SEC investigation involving alleged FCPA non-compliance by a manufacturing company involved in negotiations with a foreign competitor. Monitored subsequent indictment of manufacturing company and analyzed related coverage issues.
• Monitored lawsuit involving a financial institution accused of making unauthorized withdrawals from customer accounts of current and former athletes. Analyzed relevant coverage issues.
• Monitored trial for insurer of major pharmaceutical company and negotiated during trial a high low that capped the verdict within insured’s large self-insured retention.
• Monitored related class actions involving allegations that malpractice insurers conspired with their reinsurer to misrepresent the financial health of the reinsurer.
• Monitored class actions involving allegations that several mortgage loan companies violated the Truth in Lending Act and other statutes by misrepresenting loan terms. Represented the mortgage loan companies’ professional liability insurer and negotiated a favorable coverage settlement during mediation.
• Monitored class action appeal to Ninth Circuit involving the alleged negligent and criminal investments of approximately $34 million by an insured mutual fund in an illegal gambling business.
• Monitored class action and appeal to the Ninth Circuit involving an alleged $175 million Ponzi Scheme affecting foreign investors and allegedly facilitated by an insured certified public accountant.