 Ludwig & Robinson represents major insurers as regional, national and international counsel in cases across the United States and abroad.
The firm concentrates on insurance coverage and subrogation advice and litigation, with a focus on disputes involving financial institution bonds, fidelity bonds, miscellaneous surety bonds, auditor liability, directors and officers liability, property and casualty, and product liability, as more fully described below.
We routinely provide guidance and coverage opinions to clients, prosecute or defend declaratory judgment and subrogation actions, and defend their interests through mediation, trial and appeal. We also regularly provide in-house client seminars and training, publish newsletters and articles, and speak to industry groups on related topics.
Financial Institution Bonds
The firm investigates and defends coverage claims arising out of loan fraud, employee dishonesty, and other financial losses brought under financial institution bonds. L&R’s practice in counseling or defending our insurance clients has included:
- United Bankshares, Inc., et al. v. St. Paul Mercury Ins. Co., et al. (S.D. W.Va. 2010) and St. Paul Mercury Ins. Co. v. United Bank (E.D. Va. 2010): represented Travelers in complex $18 million loan loss investigations and coverage defense of multidistrict declaratory judgment actions
- Investigating and evaluating loan loss, check fraud, check kiting, fraudulent electronic funds transfers (wire transfers and ACH), and other losses brought under various financial institution bond policies, including under Clauses A, B, D, and E
- Investigating and advising on employee dishonesty claims
- Counseling insurers on underlying bank liability for claims involving check and electronic payment fraud, malware, and unauthorized wire transfers and ACH transactions
- Advised insurer on claim by Georgia bank arising from counterfeit checks where warranty rights against depositaries were implicated
- Counseled insurer of Michigan credit union on coverage issues, including good faith, in claims upon counterfeit/altered checks
- Defended coverage claim and underlying claims against South Dakota bank/credit card issuer
Fidelity & Surety Bonds
The firm advises and defends coverage claims under fidelity bonds and commercial crime policies, and litigates subrogation claims against banks, accounting firms and other third parties, across the country and abroad. L&R has extensive experience in investigating and defending claims involving employee dishonesty, check and electronic payment fraud, check kiting, computer and cyber crime, and other schemes. L&R also handles surety claims under financial guarantee and miscellaneous bonds, including court and customs bonds.
Coverage: The firm has advised or successfully defended our insurance clients in fidelity bond coverage claims and suits, domestic and foreign, and prosecuted an unusual counterclaim for insurance fraud. Representative cases include:
- Counseled insurer on denying claims of fidelity and false pretense coverage under prior acts exclusion
- Represented insurer in investigating and defending $2 million coverage claim for business losses, withdrawn upon proof of prior employee dishonesty at German subsidiary
- Genmar Holdings v. National Union Fire Ins. Co. (Minn. 2002): represented AIG in coverage action concerning subrogation against bank, brokerage and Big-8 accounting firm arising from $13 million counterfeit check loss
- DMCD, Inc. v. Travelers Ins. Co. (D. Md. 2001): defended Travelers in $1.5 million coverage suit by distributor alleging employee theft
- Hartz & Co., Inc. v. Travelers Property Casualty Ins. Co. (D. Md. 2001): defended Travelers in $1.3 million coverage suit by clothing manufacturer for claimed embezzlement by corporate officer, and counterclaim to recover amounts paid to insured
- Maxima Corp. v. Hartford Fire Ins. Co. (Md. 1995): represented Hartford in defending consolidated coverage actions alleging embezzlement by officers of California subsidiary and Nigerian investors, and in counterclaim for insurance fraud
- Society of American Foresters v. Hartford Acc. and Indem. Co. (Md. 1993): obtained dismissal of fidelity coverage suit against Hartford
The firm also has represented clients in successfully defending or establishing coverage in miscellaneous surety and other insurance matters, including:
- Carle v. General American Life Ins. Co., 1999 U.S. App. LEXIS 29328 (4th Cir. 1999): obtained dismissal of coverage suit by professional jockey under disability policy, upheld on appeal
- St. Johnsbury Trucking Co. v. Hartford Cas. Ins. Co. (S.D.N.Y. 1998): defended Hartford to obtain release of customs surety bond
- Airlines Reporting Corp. v. Int’l Fidelity Ins. Co. (D.D.C. 1996): represented ARC in establishing surety bond coverage, and in counterclaim for wrongful dishonor of bond claims
- Airlines Reporting Corp. v. Massachusetts Bay Ins. Co. (D.C. 1994): represented ARC in establishing surety bond coverage, upholding travel agent bond program
Subrogation: The firm has obtained favorable verdicts and settlements as national counsel for insurers in numerous subrogation cases across the country, both locally in Washington, D.C., Maryland and Virginia, as well as in California, Colorado, Connecticut, Delaware, Georgia, Louisiana, Nebraska, New Jersey, New York, Pennsylvania, Ohio, Illinois, Michigan, Minnesota, Missouri, South Carolina, Texas, and elsewhere against banks in substantial Uniform Commercial Code (UCC) check and wire frauds, against accounting firms for related auditor liability.
For representative cases that L&R has brought on behalf of our insurance clients under the UCC, we invite you to review those listed under in the Banking and Finance practice page of this website. Representative cases involving auditor liability are listed below.
L&R similarly has represented insurers in foreign subrogation claims abroad, including against U.S., British, French, Luxembourg and German banks arising out of forged, altered and stolen check schemes, representative cases of which are listed in the International practice page of this website.
The firm also represents insurers in subrogation to enforce financial guarantee and miscellaneous surety bonds, including:
- Insurance Co. of the State of Penn. v. PHLO Corp. (D.C. 2012): representing Chartis in pending actions to collect over $1 million in judgments upon appeal bonds against sports beverage company and its principals
Auditor Liability
The firm represents insurers in claims against accounting firms and professionals for failure to exercise due professional care in the performance of audits and related professional services. Representative cases where we have effectively represented our insurance clients include:
- Vigilant Ins. Co. v. PricewaterhouseCoopers, LLP (Conn. 2011) and Vigilant Ins. Co. v. Deloitte & Touche, LLP (Conn. 2010): represented insurer in subrogation against Big-4 accounting firms for malpractice in broker-dealer/asset management firm audits
- Travelers Cas. & Surety Co. v. Bertz & Co., et al. (E.D. Pa. 2001): represented Travelers in audit malpractice suit, obtaining complete jury verdict against primary audit firm, and settlements with other auditors
- Lumbermens Mutual Casualty Co. v. Loeb & Troper, et al. (S.D.N.Y. 2002): represented Kemper in suit against audit firm and bank, obtained settlement
- Travelers Cas. & Surety Co. v. PriceWaterhouseCoopers, LLP, et al. (Md. 2001): represented Travelers in $1.2 million suit against auditors and bank
- Federal Ins. Co., et al. v. Nemphos, Weber, Bryant & Co., et al. (Md. 2001): represented Chubb in suit against regional auditors and bank to recover check fraud loss, obtained settlement
- Central Atlantic Conf., United Church of Christ v. King, King & Assocs., et al. (Md. 1999): represented Reliance in suit against regional audit firm and bank, obtained settlement
Directors & Officers Liability
Ludwig & Robinson handles claims involving directors and officers liability, including fiduciary liability, business judgment, bankers professional liability, and corporate opportunity issues. Representative cases include:
- Airlines Reporting Corp. v. Int’l Tvl Corp. (D.C. 2001): obtained jury award including punitive damages for directors’ and officers’ fraud and breach of fiduciary duty
- Airlines Reporting Corp. v. Cisne Corp. (E.D. Va. 2000, aff’d, 4th Cir. 2001): obtained summary judgment against Florida D&O’s and shareholders, upholding long-arm jurisdiction in Virginia and liability for conversion and breach of fiduciary duty despite fiduciary-shield doctrine
Property & Casualty
The firm’s lawyers have substantial experience in litigating claims involving property and casualty losses, including coverage and subrogation. Representative cases include:
- Regularly assisting insurers on various property and casualty claims
- Griffith Consumers Co. V. M. Pierre Equip. Co., Inc., 831 A.2d 1036 (D.C. 2003): represented AIG in action to recover for publicized oil spill, obtaining complete jury verdict upheld on appeal
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