Connecticut Business Litigation Blog : Connecticut Business Lawyer & Attorney : N. Kane Bennett : Raymond & Bennett Law Firm : Hartford, Middletown, Glastonbury

Some noteworthy Connecticut lawsuits, and of course, continuing coverage of Hulk Hogan....

• The Bysiewicz for Connecticut Attorney General saga continues.  Is she qualified or not?  Is the statute that seems to preclude her from running unconstitutional?  Will voters elect an Attorney General with essentially no significant experience representing regular clients?  Common sense says "no", but the polls suggest otherwise and she fights on.  Only time will tell as the legal community awaits the ruling of Judge Michael Sheldon.  Several bloggers and columnists have been regularly covering this issue, including the original story breaker,Ryan McKeen at A Connecticut Law Blog.   For the Republican take, check out Chris Healy on the Everyday Republican.  The Hartford Courant's coverage is here.  Christine Stuart at CT News Junkie regularly posts on the Bysiewicz case.
• Richard Blumenthal, although running for Senate, continues to make headlines as our current Attorney General.  His office is now suing Westport National Bank and an investment manager seeking to recover $16.2 million in losses for up to 240 investors.  As of Friday, the lawsuit was served but not yet returned to Court.  Blumenthal issued a statement saying the Bank collected $2.4 million in fees...but actually did little..."   The Bank President, Richard Cummings, fired back stating that Blumenthal's comments were "inflammatory" and contained "numerous inaccuracies."
• ctwatchdog reported on the CT Department of Consumer Protection charging Wal-Mart Stores in two locations with pricing violations.  A hearing will take place in May to determine fines against Wal-Mart for allegations of unit price violations with consumer products. 
• Doug Malan of the CT Law Tribune, who also has his own company on professional writing, covers the unfortunate story of a father and son lawsuit involving control and break up of the Simko law firm.  Although the lawsuit relates to a law firm dispute, the legal issues are the same for any family business where sometimes the formality of reducing agreements to writing are overlooked.  According to Malan's story, the case is headed for trial in May and Connecticut Statutes on limited liability companies may govern the outcome by default because there was no written operating agreement.  Family disputes over closely held businesses are always painful, but a clearly drafted operated agreement can mitigate the dispute especially if the agreement includes provisions for succession, disability, buy-outs and arbitration.
• A while back, I posted about Hulk Hogan's lawsuit against his attorney's for failing to advise him he had insurance coverage for an auto accident claim.  The Hulkster is back at it.  This time he is suing his insurance company for not giving him enough coverage.  You might see this kind of a lawsuit in Connecticut but typically only against an agent, not the insurance company itself.  In fact, many times lawsuits are filed in Connecticut against insurance agents for professional malpractice or breach of fiduciary duty for failing to obtain the proper coverages for clients. It seems the Hulk had 30 million in assets but only a $250,000 auto policy. 

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Former Professional Wrestler Hulk Hogan has filed a lawsuit against his own attorneys for failing to advise him of the potential for insurance coverage for defense costs in an auto accident case.  The case was reported on by Curtis Krueger of the St. Petersburg Times as well as several wrestling sites including  tblwreslting.com and Shawn Moniz of wrestlingnewsarena.com.   

According to the reports, Hulk Hogan's son, Nick Bollea, was in a car crash in 2007 that caused serious injuries to his friend, John Graziano.  Hulk Hogan was sued along with his son for the damages.  It appears that Hulk Hogan privately retained and paid his for private lawyers to defend him in the case.

Hulk Hogan's suit alleges that he could have received a qualified defense attorney for free because his insurance company would have paid the bill.  As with most automobile insurance policies, unless there was some valid reason to deny Hulk Hogan a defense, his insurance company would have been obligated to provide a lawyer to be paid by the insurance company. 

If you are faced with a claim that is covered by an insurance policy, you must submit the claim to the insurance company if you want to get coverage or a defense.  Once you submit the claim to your insurance company, the company would then either deny coverage, provide limited coverage, or provide a defense attorney and coverage.  In insurance circles, it is called providing an insured with "defense and indemnity."  This means, not only providing a lawyer at no cost, but the insurance company will pay the damages up to the policy limits if there is a settlement or judgment.

It is unclear how Hulk Hogan's suit is going to turn out, and only his allegations are known at this point.  The lawyers he sued have adamantly denyied any wrong doing.  Only time will tell what the real story is behind the decision to forgo an attorney appointed by his insurance company.

Nevertheless, the lesson from Hulk Hogan's lawsuit is clear.  Whether you are an individual or business owner, if you are faced with a lawsuit of any kind you should:

• Contact your insurance agent as soon as possible
• Determine if you have any available insurance coverage
• Provide notice of the claim to the insurance company
• Consult with an attorney about the availability of insurance coverage

Many times, I consult with business clients who are not aware of what types of claims might be covered by an insurance policy.  Determining the availability of insurance coverage is an important first step when faced with any loss or lawsuit.  Many times, determining whether coverage exists can be complicated and consulting an attorney may be necessary.  Additionally, early notice to the insurance company is important.  If you delay notifying the insurance company, the company may seek to deny coverage based on lack of timely notice of the claim prejudicing the insurance company. 

Hulk Hogan's case also serves as a reminder for individuals and businesses to review what insurances they have and determine if the coverages are adequate for both personal and business operations.  There are many types of insurance products on the market that business owners are not aware of or sometimes believe are too expensive.  You also need to make sure that the policies you purchase will protect the likely losses or damages claims you might face. 

Working with an insurance agent or a business attorney can help you determine potential insurance policies that might protect your company.  There are many types of insurances available for businesses, including policies that cover first and third party claims. 

TYPICAL INSURANCE AVAILABLE FOR CONNECTICUT BUSINESS:

• Commercial General Liability
• Workers' Compensation
• Director's and Officer's Liability
• Employer's Practices Liability
• Products and Completed Operations
• Umbrella and Excess Liability
• Cyber Liability and Technology Errors
• Property Insurance
• Business Interruption and Indirect Loss Coverage
• Environmental Risk
• Intellectual Property Liability
• Ocean Marine

Once a decision to purchase insurance is made, you should have an insurance management plan in place.  At its simplest form, this amounts to having all your insurance polices, and proof of premiums paid, organized and cataloged in one place.  Your insurance portfolio should be reviewed periodically, or at least annually, to make sure there are no gaps in coverage.  It also is a good idea to have an annual review with an insurance agent or attorney to make sure you have the most updated coverages.  

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