Editorial: Insurance and Reinsurance in California

01 August 2007

Our research into the Californian insurance and reinsurance market uncovers 36 individuals from 23 firms.

This select group of lawyers boasts a wide variety of expertise, in the representation of insurance underwriters, reinsurers, intermediaries and corporate insureds on contentious, contractual, regulatory and, in some cases, general corporate matters.

Consequently, regulatory and legislative experts rub shoulders with lawyers that exclusively deal with policyholders. Individuals that focus on insurance dispute resolution feature, as do those who act for industry clients on a wide array of matters. 

Barger & Wolen LLP fields four “outstanding regulatory lawyers” on the following pages. Prior to founding the firm in 1976 Richards Barger served as insurance commissioner for the then governor of California, Ronald Reagan. Barger brings his experience to bear in private practice and was recommended to researchers as “extremely knowledgeable on all aspects of insurance law”. Particular areas of specialisation include the formation, and merger and acquisition activities, of insurance companies. Kent Keller currently serves as managing partner of the firm and is “one of the best trial lawyers I know”, according to a rival. This is further highlighted by his position as a Fellow of the prestigious American College of Trial Lawyers. Keller’s “superb regulatory practice” was noted on a number of occasions and he emerges from our findings with nothing but praise. Steven Weinstein is a “fabulous lawyer and well regarded”. He is highly recommended for his work on insurance regulation on behalf of property casualty, workers, compensation and life insurance companies. A “go-to guy”, Weinstein is said to be the “dean of the firm’s practice”. Royal Oakes is similarly well regarded and is recommended as an “outstanding litigator” with a particular strength defending class actions. Oakes recently won a bench trial relating to a $1.5 million life insurance claim submitted by the heirs of a murder victim. He completes the highly rated contingent from Barger & Wolen.

Duane Morris LLP is well known for representing insurers and in the figure of Barry Bunshoft it boasts “one of the deans” of the practice area. Before joining the firm Bunshoft served as deputy attorney general for California and he was recommended to researchers as a “top-flight litigator”. Philip Matthews is another trial lawyer of consummate skill and a “leader of the bar” according to one prominent source. Praised as a “significant player”, he is said to be “capable of leading massive teams on complex cases”. Representative matters include the trial and appeal of Shell Oil Co v Accident and Casualty Co of Winterthur, a landmark environmental insurance case. Partner Richard Seabolt is a “leader of the bar” according to one of his peers and, like the previous two inclusions, is “strong on the insurance side”. From 2005 to 2006 Seabolt chaired the litigation section of the State Bar of California and he also serves on the board of governors of the Association of Business Trial Lawyers. Seabolt boasts a great deal of experience in the insurance coverage arena having gained a defence jury verdict in FMC v London Market Insurers relating to FMC’s $20 million claim for environmental clean-up at its Mourat site. The firm’s deep bench led one respondent to remark, “on the insurer side of the aisle, I most admire Duane Morris for their depth and the quality of the lawyers throughout their ranks.” 

David Goodwin is one of the founders, and former co-chairs, of the insurance recovery group at Heller Ehrman LLP. Goodwin is widely regarded as the “smartest and best policyholder lawyer in the state” and in the past 18 months has served as lead attorney on a number of high profile cases such as Zurich American Insurance Co v Aztar Corporation. This case involved a nine-figure damage claim under a builders’ risk insurance policy following the collapse of a parking garage that was under construction at a casino in Atlantic City, New Jersey. The case was settled favourably for his client Aztar in April 2007. He also served as lead counsel in PMI v American International Specialty Lines Insurance Co, in which PMI sought insurance coverage for the costs of defending and setting a nationwide class action that alleged the company had violated federal law. Goodwin obtained a judgment for his client that stated the insurer must pay its entire policy limits plus pre-judgment interest for PMI’s defence and settlement expenses. Not only did one source praise him as the “most civil and decorous lawyer you’ll ever come across”, another noted, “he’s got encyclopedic knowledge and I was impressed by his demeanour and approach.” Barry Levin also fared particularly well in our findings, one rival noting he’s “a force to be reckoned with”. Like Goodwin, he’s a “pre-eminent policyholder lawyer” and among other matters he served as trial counsel for Johns-Manville Corporation in its coverage litigation involving asbestos-related bodily injury claims. His success in the field led one admirer to conclude, “if I were a policyholder I’d go to him, he’s a truly outstanding trial lawyer.” Lawrence Hobel further bolsters Heller Ehrman’s reputation on the policyholder side, representing corporate insureds on coverage disputes relating to extraordinary losses and claims. An example of his work includes representing a mining company regarding an open pit mine loss in Indonesia. This resulted in a nine-figure settlement with the insurers. 

“Highly respected policyholder firm” Shernoff Bidart & Darras also fields three respected individuals on the following pages, all of whom are engaged in the representation of individuals as well as corporate insureds. In 1979 William Shernoff set the legal precedent that established bad faith law with victory in Egan v Mutual of Omaha and since then the firm has grown into one of the United States’ leading insurance ‘bad faith’ practices. Shernoff serves as senior managing partner and has been involved in numerous high-profile cases including a settlement of insurance claims for the MGM Grand Hotel arising from a fire at the resort. Michael Bidart is another of the state’s leading lights and “strong policyholder lawyer”. Bidart’s health insurance practice was recommended to researchers and in 1999 he secured the largest jury verdict ever rendered against an HMO in Goodrich v Aetna. This totalled $125 million and concerned Aetna’s refusal to pay for care that had been recommended by the health plan’s own physicians. Frank Darras is rated by sources as “an outstanding plaintiff lawyer”. Over the years has represented clients from the entertainment industry, sports, business, and the legal and medical professions. 

Dean Hansell practises in the Los Angeles office of Dewey & LeBoeuf LLP and is “very good, solid and smart”. Hansell has a background as a civil federal and state prosecutor – one rival noted his reputation as a “very sound litigator”. He’s worked on a wide array of insurance cases covering insolvency, reinsurance, errors and omissions, fraud, coverage disputes, class actions and asbestos-related litigation, among others. James Woods co-chairs the firm’s insurance practice and serves as managing partner of the San Francisco office. Woods was recommended to researchers on multiple occasions and currently serves as general counsel to The Surplus Line Association of California. Morgan Lewis & Bockius LLP is also well regarded within the Californian market and contributes two lawyers to the chapter – David Halbreich and Michael Yves Horton. Halbreich is a “fabulous policyholder lawyer” and has represented clients from industries such as oil and gas, financial services, and construction to name but a few. Horton is similarly well regarded on the policyholder side and comes recommended as a “very creative attorney”. Representative clients include Wal-Mart Stores, ConocoPhillips, El Paso, and The Tribune Company. 

Sonnenschein Nath & Rosenthal is a leading name in the insurance market and a large portion of the firm’s practice is dedicated to the area. Partner Gary Hernandez previously served as California’s deputy insurance commissioner; he brings a great deal of regulatory experience to bear in his private practice. He also comes recommended for his work on insurance insolvency matters. Paul Glad is “very well thought of and deservedly so”, particularly for his litigation credentials. Glad works on catastrophic loss for insurance carriers following events such as earthquakes, fires, floods and hurricanes. Like Hernandez, Glad also works on the regulatory side of the industry where he deals with merger clearance work. Recent highlights include Plant Insulation v Fireman’s Fund Insurance Company, where he represented OneBeacon in a lawsuit involving insolvency issues and billions of dollars in asbestos claims. Glad also represented Evanston in ChemNutra v Evanston with regard to coverage for ChemNutra’s sale of Chinese wheat gluten that was contaminated with melamine. Glad’s is reportedly “as good as it gets for litigation”. 

Berkes Crane Robinson & Seal is the last firm providing more than one representative on our list. According to one prominent source, the firm “fills that classic niche of insurance coverage lawyers”. Aside from its insurance practice Berkes Crane is also known in the fields of product liability, entertainment and commercial law. Founded in 2001 by veterans of the asbestos litigation it has grown into a firm of 15 lawyers. The firm is still busy on the asbestos front and its lawyers work on both the plaintiff and defence side of the industry. Robert Berkes is “really very good”, with one rival stating: “I have a very high opinion of his skills.” Steven Crane is a “very impressive, smart and hard-working trial lawyer” and, like Berkes, he has a strong asbestos-related practice. His work on insurance and liability disputes in the environmental arena was also noted. Locke Lord Bissell & Liddell LLP is one of the United States’ leading insurance and reinsurance firms. It is represented on the following pages by Jonathan Bank, “a big name in the industry” and “one of the premier reinsurance guys in California”. Bank has strong industry credentials having served as senior vice president of Tawa Associates. He received more recommendations in our research than any other featured lawyer. Bank worked on the acquisition of Bristol-West insurance by Farmers and is currently working on the purchase of Employer Direct Insurance Company by Alleghany. Bank is also involved in a number of arbitrations relating to the insurance industry. Donald Brown represents Covington & Burling LLP on the following pages and is well known for his work on behalf of policyholders – “I would give very high marks for his work on the policyholder side,” remarked one source. “Clearly one of the best”, Brown’s courtroom and writing skills were brought to the attention of researchers. Representative matters include acting as lead trial lawyer for ExxonMobil in its lawsuit against over 100 insurers over in excess of $2 billion of coverage relating to environmental clean-up liabilities at some 5,000 sites. He’s also represented companies such as Fibreboard, Morgan Stanley, Adelphia and Vulcan Materials, among others. One source noted, “on the policyholder side, I most respect Covington & Burling for their commitment to problem solving.” 

Linda Dakin-Grimm divides her time between the Los Angeles and New York offices of Milbank Tweed Hadley & McCloy LLP and she is recommended for her work on insurance and reinsurance disputes. Rated as “a very impressive lawyer” she’s said to be “very effective and knows her stuff ”. “Clients love her work,” according to one prominent rival. In one high-profile case Dakin-Grimm received a favourable ruling from the US Supreme Court for eight US insurers and their European parent companies in a dispute with the California Department of Insurance over the Department’s supposed regulation of European life insurers. David Steuber at Howrey LLP is another “first-rate” policyholder’s lawyer who has “been one of the leaders for a very long time”. Praised as “very competent and knowledgeable” Steuber co-chairs the firm’s insurance recovery practice. Praised to researchers as an “excellent trial lawyer”, Steuber has worked on issues relating to medical devices, Superfund, asbestos, environmental contamination, D&O insurance and first party property to name but a few. 

Cary Lerman concentrates on policyholder representation work from the Los Angeles office of Munger Tolles & Olson LLP. Lerman’s practice in this area is grounded in the Asbestos Coverage Litigation and since then he’s represented well-known companies on insurance coverage matters. Lerman boasts an “excellent reputation” in the field and is “the finest lawyer I’ve ever met” according to one source. Dickstein Shapiro LLP appears thanks to the inclusion of “smart and knowledgeable” Kirk Pasich. Pasich offers litigation and coverage advice to policyholders and has also acted as an arbitrator in the field. Clients come from a variety of industries with a significant portion in the entertainment sector. 

David Campagne opened Sinnott Dito Moura & Puebla PC’s San Francisco office in May 1995 and is well known for his work on complex insurance coverage disputes. “An excellent insurance company lawyer,” he has represented AIG extensively and has worked on several coverage actions brought by the company’s insureds relating to bodily injury complaints from several generations of Beverly Hills High School students who claim to suffer from oncological conditions resulting from exposure to an oil and gas production operation next to the school’s campus. Sources were particularly complimentary regarding his experience on environmental coverage issues. A great deal of Martin Checov’s time is taken up by his work as general counsel at O’Melveny & Myers LLP. However, his experience and continued work for insurance companies sees sources “recommend [him] without reservation”. He has particular expertise on asbestos-related claims and environmental pollution under legislation such as Superfund. 

David Babbe is the sole inclusion from Morrison & Foerster LLP and was variously described as “excellent”, “brilliant” and “first rate”. Babbe was also described to us as an “excellent litigator” and his practice encompasses environmental coverage as well as D&O and accountants’ liability. Winston & Strawn LLP's Scott DeVries is “very well thought of ” in the industry and also does a great deal of work for policyholders on environment-related coverage litigation. DeVries’s practice is national in scope and representative clients include Aerojet-General, GenCorp, Nucor, Precision CastParts and Monsanto, to name but a few. The past 18 months have been particularly busy for DeVries, during which time he’s acted as lead counsel for the policyholder in Nucor v Wausau et al in which he obtained a jury verdict obliging Wausau to indemnify Nucor for environmental losses. He also argued the appeal in Tosoh SET v Hartford Accident and Indemnity Co where he obtained a decision that indirect disparagement was covered under advertising coverage. Julia Molander is a “solid defence attorney” according to one source and she represents Sedgwick Detert Moran & Arnold LLP in the chapter. The “excellent” Christopher Byers practises in the San Francisco office of Latham & Watkins LLP. He represents clients on a wide variety of insurance and reinsurance matters. His experience includes representing a reinsured in a number of arbitrations to recover reinsurance losses related to the terrorist attacks of 11 September 2001. 

Gibson Dunn & Crutcher LLP appears thanks to Dean Kitchens’ profile in the market. Kitchens was recommended as “very sharp and very good” and his broad litigation practice encompasses representing insurers. Cathcart & Collins LLP is a respected Los Angeles litigation boutique. Founding partner Patrick Cathcart is recommended for multi-party insurance coverage litigation and was described by one prominent source as “a great lawyer who also arbitrates”. William Friedrich completes our breakdown of California’s leading players. Friedrich is based in the San Francisco office of Farella Braun + Martel LLP and he was recommended as “very capable and creative”. His litigation- focused practice has an emphasis on insurance coverage and bad faith cases and he works on both first and third party liability claims. Representative clients include Albertsons, Applied Materials and Pacific Telesis to name but a few.