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E & O in the New Corporate Environment
Errors and Omissions (E&O) coverage protects policyholders in various professional occupations ' such as the legal, medical, architectural, engineering, insurance, and accounting fields ' against professional liability claims. This form of insurance, sometimes referred to as professional liability or malpractice insurance, covers economic damages resulting from an error, omission, or negligent act related to the rendering of professional services.
The importance of E&O coverage has never been more evident than in today's business environment. In the much-watched case of Newby v. Enron, 2002 WL 31854963 (S.D. Tex. Dec. 19, 2002), plaintiffs leveled claims against not only Enron's directors and officers, but also targeted lawyers, auditors, and even investment banks for their respective roles in Enron's collapse. Newby paved the way for other disappointed shareholders to expand their litigation targets beyond the directors and officers.
In addition, regulatory changes sparked by Enron-type abuses are increasing the types of claims facing corporate decision-makers. The Sarbanes-Oxley Act (the Act) includes rules governing the standard of conduct for third parties such as auditors and lawyers who routinely assist corporations with their financial compliance. For example, Section 204 of the Act now requires outside auditors to report specified information to auditing committees, including “critical accounting policies and practices” and “alternative accounting treatments.” The critical accounting practices would include an assessment of management's disclosures and any proposed modifications by the accountants that are not included in the disclosures. Section 802 of the Act, likely inspired by Arthur Anderson's conduct, now requires accounting firms to retain audit work papers and other documents that form the basis for the audit for seven years. Section 307 of the Act establishes minimum standards of professional conduct for attorneys who appear or practice before the SEC, including requirements that attorneys report evidence of any “material violations” up the corporate chain.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?