Business Lawyers Philadelphia: Insurance Bad Faith Claims

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Insurance Bad Faith Claims May Survive Even Where No Coverage is Due

In Citi Gas Convenience v. Utica Mutual Insurance Co., the Eastern District of Pennsylvania ruled that a party can bring a bad faith claim even where a court may find no coverage is due if “bad faith is asserted as to conduct beyond a denial of coverage, the bad faith claim is actionable as to the conduct regardless of whether the contract claim survives.”

For example, an insurer may conduct bad faith in its investigation practices, even if ultimately the Court rules that a party is not entitled to coverage. However, the Plaintiff in Citi Gas Conveniencefailed to adequately plead such a claim, and it was dismissed without prejudice.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Business Lawyers: Conflict of Interest / Self-Dealing Transactions

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Courts will closely scrutinize conflict of interest and self-dealing transactions (i.e., having an individual and/or corporation on both sides of the same transaction). Traditionally, these types of transactions are subjected to the “entire fairness review”. In order to survive this standard review, the price and the dealing must be fair. Globe Woolen Co. v. Utica Gas & Elec. Co., 224 N.Y. 483 (fundamental business organization case holding that there is a breach of fiduciary duty of loyalty despite a director, who served on two boards of two companies, did not vote on a transaction because neither fair price nor fair dealing was present). Fair price is typically the equivalency of value between what the corporation gave up and what the corporation received. Fair dealing has several factors (none dispositive) of candor and disclosure:

1)      Not only abstaining vote, but excusing yourself to not exert pressure on the deal;

2)      Imbalance between the corporations at negotiation;

3)      Involvement of disinterested advisors; and

4)      Candor – director should not stand in silence when he or she is aware that the agreement is detrimental to one side.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Employment Lawyers: Male Employee Sues Yahoo for Sexism

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A former editor at Yahoo has filed a lawsuit alleging that female managers discriminated against male employees in both their hiring and termination practices. According to the plaintiff, the tech-giant’s quarterly performance review (QPR) system was arbitrary, and it was used as a screen to accommodate management’s subjective biases and personal opinions to the detriment of male employees. Although there are many stories about gender bias in the California tech industry, they usually involve discrimination against women, making this case unique.

The plaintiff was laid off in 2014 after receiving unfavorable QPR ratings along with around 600 other Yahoo employees. At the time he was laid off, he was on a leave of absence to attend the Knight-Wallace Journalism Fellowship program at the University of Michigan. He was attending as a journalist representing Yahoo.

The ex-employee claims that he was fired after an unsuccessful review through Yahoo’s QPR system. The system allegedly uses a numeric ranking system to evaluate employee performance. Employees who receive the lowest scores are often fired. The lawsuit also alleges that female managers manipulated the QPR program to accommodate their own biases. The lawsuit claims that when male and female employees received equally low scores, only men would be fired—female employees would be permitted to appeal. The suit also asserts that men were systematically denied management positions.

The lawsuit sets forth the premise that there was no transparency in the QPR process—employees did not know who made the final decisions, what numbers were being assigned along the way, or why numbers were being changed. In short, the purportedly objective system was being manipulated.

Male complaints about sex discrimination and harassment have been on the rise in recent years. According to Title VII of the Civil Rights Act of 1964 and California’s Fair Employment and Housing Act (FEHA), discrimination against men in the workplace is unlawful.

This lawsuit alleges more than just gender discrimination: it also claims wrongful termination and asserts that Yahoo fired employees without just cause, and failed to give the legally required notice periods prior to termination.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green Represent Victims of Gender Discrimination

No one should face discrimination because of his or her gender. If you suspect that you may have been terminated or suffered adverse employment consequences solely because of your gender, we will fight to uphold your civil rights. To discuss your case with a knowledgeable employment lawyer in Philadelphia at Sidkoff, Pincus & Green, call us at 215-574-0600 or contact us online today.

Philadelphia Employment Lawyers: EEOC’s New Broad Interpretation of Title VII

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The EEOC’s 2013-2016 Strategic Enforcement Plan addresses the emerging issue of the coverage of lesbian, gay and transgender individuals under Title VII’s sex discrimination provisions. Earlier this month the EEOC has taken steps to further its Strategic Enforcement Plan by filing two federal lawsuits alleging discriminatory employment practices by employers based on sexual orientation.

Since Title VII does not explicitly prohibit discrimination on the basis of sexual orientation, the EEOC is restricted to arguing that employers discriminated based on the employee’s sex and the employer’s notions of traditional sexual stereotypes.

The EEOC has turned to rely on Supreme Court Rulings that state that same-sex harassment is an actionable form of sex discrimination. In the first case, EEOC v. Scott Medical Health Center, P.C., the EEOC alleges that Scott Medical harassed its employee Dale Baxely because of his sexual orientation and because he did not conform to Scott Medical’s gender-based expectations, preferences, or stereotypes.

The EEOC hopes to use this case to help expand the protection of Title VII to include lesbian, gay and transgender individuals.

For more information, call Philadelphia employment lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

 

Philadelphia Business Lawyers: Public Accommodation Requirements

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Title III of the ADA

Title III of the Americans with Disabilities Act regulates the accessibility requirements that businesses must follow to be in compliance with Title III. They address both outside of businesses such as sidewalks or ramps, as well as indoor business structure such as bathroom accessibility and corners. All new construction or alterations must adhere to this title. Entities also have an on-going obligation to remove non-complaint architectural barriers in existing facilities is it is readily available. This determination is dependent on the size and the resources of the business. This applies to, but is not limited to, commercial facilities such as factories, office buildings or warehouses, private entities that offer examinations or related to educational purposes, and most notably public entities.

Any individual with a disability who is denied access to a place of public accommodation due to a non-compliant architectural barrier may sue under Title III for an injunction requiring the business to become ADA-compliant and reasonable attorney’s fees, costs, and expenses. According to a recent study, nearly twice as many Title III suits were filed in Pennsylvania’s federal courts between July 1, 2012 and January 1, 2015 than during the preceding thirty-month period. These suits—most of which were filed by a few individuals represented by a small number of plaintiff’s attorneys—frequently settle before trial, resulting in businesses paying the plaintiff’s attorney’s fees as well as the cost of remediating non-compliant facilities.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Employment Lawyers: Class-Action Settlement for Wage Underpayment

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On February 11, 2016 the Middle District of Pennsylvania approved a $320,000 class action settlement against meat packer, Vantage Foods Inc. Workers at the meat packaging plant brought suit against their employer for not paying workers for all of the tasks they performed. More Precisely, the complaint alleged that employees were not paid for time spent preparing for their shifts nor for time spent after their shifts when they were required to clean off, remove their gear, and place it in storage. The suit was brought under the Fair Labor and Standards Act (FLSA), which regulates employment standards, including minimum wages and overtime pay.

Vantage alleged that employees were being sufficiently compensated for any time it took to do those tasks, even though the company eventually agreed to settle. In settling the case, Vantage denied committing any employment law violations or wrongdoing with the class-action suit. The workers will receive additional pay calculated in minutes, over a period of almost 2 years.

For more information, call Philadelphia employment lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Business Lawyer in Philadelphia: Ex-Employee Alleges Wrongful Conduct in Counterclaim

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Lawing Financial has accused a former employee of conspiring with a co-worker to steal trade secrets, then opening up a competing business. According to Lawing Financial’s lawsuit, the defendant initially helped the company establish its business. Then, he and his co-worker allegedly conspired to steal trade secrets, including client lists, from the firm before resigning without notice to immediately open a competing business. He had been employed by the company for seven years before resigning.

The defendant has denied all accusations of wrongdoing and filed a counterclaim, alleging that he left the company because, among other things, he was not paid compensation he was entitled to. He is also suing Lawing Financial for defamation of character, libel, slander and tortious interference of contracts.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green Pursue Compensation for Those Victimized by Wrongful Acts and Business Torts

If you are in need of a business lawyer in Philadelphia, the team at Sidkoff, Pincus & Green has extensive experience in business tort litigation, including copyright or trademark infringement, fraud, breach of fiduciary duty, unfair competition and misappropriation of confidential information. To schedule a consultation, call us at 215-574-0600 or fill out our online contact form today. With offices conveniently located in Philadelphia, we represent businesses throughout Pennsylvania and South Jersey.

Philadelphia Business Lawyers: Insurance Claims

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Pennsylvania Federal Court Rules Insurance Claims Files are Discoverable and Not Subject to the Work-Product Doctrine

In Smith v Progressive Specialty Insurance Company, the Western District of Pennsylvania ruled that an insurer’s claims file can be discoverable in a bad faith case, as information in that file on the insurer’s decision to deny the claim is “relevant or could lead to potentially relevant information.” The Court ordered Progressive to produce all relevant documents from its claim file prepared before it could be reasonably anticipated that the claim would be litigated, finding that the work-product doctrine did not apply.

The Court acknowledged that not everything “prepared by or for the agents of an insurer” is protected by the work product doctrine, and that the doctrine only protects documents prepared in anticipation of litigation. Here, the insurer argued that litigation was anticipated as soon as the insured asserted an underinsured motorist claim. The
Court disagreed, and found that the insurer could not have reasonably anticipated litigation until the insurer’s position and the insured’s position as to the extent of the insured’s damages and lost wages came to “loggerheads.” Accordingly, documents prepared before that time fell outside the scope of the work product

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Wrongful Termination Lawyers: Doctor’s Case May Proceed

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On February 24, 2016 the Eastern District of Pennsylvania ruled to allow Plaintiff, Dr. Muhamad Aly Rifai, to move forward on his claims for breach of contract and wrongful termination under the Americans with Disabilities Act. In Rifai v. CMS Medical Care Corporation, et al., Plaintiff alleges that Defendant CMS hired him in May 2011 for a three-year term of employment, which was subsequently renewed a year later. The employment contract provided that either Plaintiff or CMS could terminate the agreement by giving the other party at least 120 days’ notice of the intent to terminate, or CMS could terminate immediately for cause.

Plaintiff alleges that on January 2, 2013, Plaintiff was given 120 days’ notice that he would be terminated on May 7, 2013. However, Plaintiff alleged that only five days later he was terminated for cause, effective May 7, 2013. Plaintiff thereafter filed suit, claiming Defendants fired him due to his Syrian ethnic background, Islamic religious beliefs, and the perception that he was mentally disabled. The Eastern District ruled that Plaintiff plead sufficient facts to allege breach of contract and a claim under the ADA.

The Court ruled that it found “that plaintiff sets forth sufficient facts to demonstrate that defendants regarded him as having an impairment,” specifically noting how Rifai’s complaint explained that at the time of his termination, defendants told various employees Rifai suffered from a mental impairment and was mentally unstable, unable to safely perform his medical duties.

For more information, call Philadelphia wrongful termination lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Business Lawyers: Statue of Limitations for Bad Faith Claim

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Statute of Limitations for Bad Faith Claim Triggers After Failure to Investigate Same Claim After Denial, When Insurer is Provided With New Information

In Rancosky v. Washington National Insurance Company, the Superior Court addressed the issue of whether the statute of limitations for bad faith claims restarts after an insurance company fails to investigate a claim after receiving new information. In Rancosky, the Court ruled that the insured’s bad faith claim fell within the two-year statute of limitations based upon poor investigative practices. .

The trial court effectively ruled that a bad faith plaintiff must establish the insurer had a motive of self-interest or ill will. While the trial court had ruled that self-interest or ill will were considered in weighing the first element, absence of a reasonable basis, the Superior Court found this was merely a back door ruling that self-interest or ill will were required elements to establish the claim. The Superior Court observed that “there is an important distinction between an initial act of alleged bad faith conduct and later independent and separate acts of such conduct.”  It ruled that: “When a plaintiff alleges a subsequent and separately actionable instance of bad faith, distinct from and unrelated to the initial denial of coverage, a new limitations period begins to run from the later act of bad faith.” Thus, “[a]n inadequate investigation is a separate and independent injury to the insured.”

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.