.

Defense Digest

On the Pulse…Other Notable Achievements

Defense Digest, Vol. 29, No. 4, December 2023

December 1, 2023

RECOGNITION

Two Marshall Dennehey Practice Group Leaders Named “Best of the Bar” by the Philadelphia Business Journal. 
We are pleased to announce that John J. “Jack” Delany, III, Chair of the firm’s Catastrophic Claims Litigation Practice Group, and John J. Hare, Chair of the firm’s Appellate Advocacy and Post-Trial Practice Group, have been named 2023 Best of the Bar honorees in the area of Business Litigation by the Philadelphia Business Journal. The annual program recognizes the region’s most impactful lawyers based on their recent achievements, including the legal significance of their successes, the scale of their results, and the business impacts of their accomplishments. 

Marshall Dennehey Named a 2024 “Best Law Firm” In Multiple Practice Areas by Best Lawyers®
We have been named a “2024 Best Law Firm” in multiple practice areas, both nationally and across numerous regions of the country, by Best Lawyers®. Nationally, the firm ranked in the practice areas of Admiralty & Maritime Law; Commercial Litigation; Insurance Law; and Mass Tort Litigation/Class Actions - Defendants. Read more here

Marshall Dennehey Announces 2023 New York Metro Super Lawyers and Rising Stars
Seven attorneys from our New York City, Westchester County, and Long Island offices have been selected to the 2023 edition of New York Metro Super Lawyers magazine. A Thomson Reuters business, Super Lawyers is a rating service of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. Read more here.

Marshall Dennehey Ranks on Law360’s “Ceiling Smashers” List
We ranked #3 on the Law360 Pulse Ceiling Smashers List for law firms with 251-600 attorneys. Firms are ranked based on the number of women attorneys in equity partnerships. According to the report, “The firms that made it onto Law360 Pulse’s Ceiling Smashers list are demonstrating that strides towards gender parity at the upper ranks are possible.” 
 

APPOINTMENTS

John Hare (Philadelphia, PA) has been appointed by the Pennsylvania Supreme Court as the co-chair of the Court’s new Historical Commission. The Commission will develop programming and publications to foster civics education about the importance of the rule of law and judicial independence. 

 

OTHER NEWS

Janice Merrill (Orlando, FL) was quoted in the article, “How to Identify and Defend Against Malicious Lawsuits,” appearing in the October issue of Healthcare Risk Management magazine. You can read the article here.

 

PUBLISHED ARTICLES

On September 15, 2023, The Legal Intelligencer published “You Diligently Protect Your Clients; What About You? Part 2 (The Middle and the End),” written by Josh J.T. Byrne and Alesia S. Sulock (Philadelphia, PA). You can read their article here.

On November 17, 2023, The Legal Intelligencer also published “Probable Cause as a Matter of Law in Dragonetti Cases,” by Josh J.T. Byrne and Alesia S. Sulock (Philadelphia, PA). You can read their article here

On November 10, 2023, the New York Law Journal published “Trend Watch: Out-of-Staters Finding the Basis for Personal Jurisdiction,” by Adam Calvert and Brian Ramkissoon (New York, NY). You can their article here.

Dana Gittleman’s (Philadelphia, PA) article “Trying the PL Case: Lessons Learned in the Courtroom,” was published on September 21, 2023, on the PLUS Blog. You can read her article here.

Brad Haas’ (Pittsburgh, PA) article “Unveiling the Power of Usage-Based Insurance in Personal Injury Discovery,” was published in the November 2nd Personal Injury Supplement of The Legal Intelligencer. You can read this article here.

Patricia Monahan (Pittsburgh, PA) authored the article, “Pa. Supreme Court Evaluates Constitutional Parameters of a Jury’s Punitive Damage Award,” appearing in the October 3, 2023, issue of Pennsylvania Law Weekly. Her article discusses the court’s decision in Bert v. Turk, 298 A.3d 44 (Pa. 2023) that addressed whether the appropriate ratio of punitive to compensatory damages in a case with multiple joint tortfeasor defendants should be calculated on a per judgment basis or a per defendant basis, and how the decision applies to statutory bad faith cases. Click here to read.

Michele Punturi (Philadelphia, PA) co-authored, with clients, the article, “Reflecting the Talent You Want to Recruit: Building and Achieving a Diverse Team and a Better Business,” appearing in the September 2023 issue of CLM Magazine. The article discusses DEI&B (diversity, equity, inclusion and belonging) and its role in building an inclusive culture within an organization. You can read her article here.  

Estelle McGrath (Pittsburgh, PA) authored the article, “EEOC Mediation: Five Things to Consider Before Participating,” appearing in The Legal Intelligencer’s Employment Law Supplement. The article points to five things to discuss with your client ahead of time so they can make an informed decision about whether or not to participate in an EEOC mediation. You can read the article here.

Tony Natale (King of Prussia, PA) authored the article, “Beware of the Language Used in Your Settlement Agreements: Medicare is Watching,” appearing in The Legal Intelligencer’s October 10, 2023, Workers’ Compensation Supplement. The article discusses the pivotal role of settlement agreements in workers’ compensation litigation, and the importance of including the appropriate language in such agreements when the claimant is a Medicare beneficiary. You can read his article here.  

 

SPEAKING ENGAGEMENTS

Mohamed Bakry (Philadelphia, PA) joined a panel at the Federation of Defense & Corporate Counsel Corporate Counsel Symposium in Philadelphia to discuss “Lessons from the Varsity Blues Scandal.” This panel discussed why every corporate counsel must be prepared to defend the enterprise against claims of civil and potentially criminal liability arising from honest services fraud, bribery, conspiracy, and other claims, due to the actions of rogue employees. 

Josh J.T. Byrne and Alesia S. Sulock (Philadelphia, PA) were featured speakers at the Professional Liability Defense Federation (PLDF) annual meeting in Denver. They were part of a panel titled “Defending and Avoiding Disciplinary Complaints.”

Josh J.T. Byrne (Philadelphia, PA) joined a Pennsylvania Bar Institute panel to present a CLE on ethical use of social media for attorneys.

James Cole (Philadelphia, PA) presented “Risky Business: New Trends in Insurance Fraud,” at CLM’s Fraud Focus Conference in New York City.

Christopher Conrad (Harrisburg, OA) co-presented “Extended School Year – It’s Not Summer School,” at the Pennsylvania Bar Institute’s Exceptional Children Conference. The presentation addressed the scope of available Extended School Year services for special needs students, determining eligibility, and the appropriateness of services. The presentation also included a discussion of relevant and recent case law and hearing officer decisions, as well as tips for how to litigate expedited Extended School Year due process hearings.

Angela DeMary (Mount Laurel, NJ) presented “Assessing the Injury and Case,” at the National Business Institute’s New Jersey Workers’ Compensation Fundamentals webinar.

Michael Detweiler (King of Prussia, PA) participated was a webinar panelist for “Travel Advisors E&O Insurance: Lessons in Liability,” hosted by Travel Professional News. The webinar discussed what E&O insurance actually safeguards you against and why most organizations and host agencies require or strongly suggest travel advisors carry coverage. The program also walked through insurance policy language and coverage terms related to E&O insurance and the importance of protecting yourself or your agency. Real-life case studies illustrated the common allegations made against travel professionals and what you can do to help safeguard yourself against client demands and lawsuits. 

Melisa Dziak (Scranton, PA) joined a “Claims Hot Topics Roundtable” on September 21st at the Medical Professional Liability Association’s Claims and Risk Management/Patient Safety Workshop. With more than 10 years of medical malpractice defense and health care liability experience, Melissa provided critical information for claims, risk, and clinical professionals involved in managing medical professional liability claims. 

Scott Eberle (Pittsburgh, PA) presented “Avoiding Legal Malpractice,” to members of the Beaver County Bar Association. Scott also presented “Ethics Issues in Auto Law,” at the Pennsylvania Bar Institute’s Auto Law Update webinar.

Elizabeth Ferguson (Jacksonville, FL) participated in AMBest’s webinar “How Insurers Are Controlling Expert Costs in Construction Defect Claims.” In this one-hour webinar, claims professionals examined best practices for engaging expert testimony, with a special focus on how that process works in handling and litigating construction defect claims. You can watch here.

John Hare (Philadelphia, PA) was a keynote speaker at an event honoring new Pennsylvania Supreme Court Chief Justice Debra Todd, the first woman to serve in that role. All Supreme Court justices and members of Pennsylvania’s other two appellate courts were in attendance. John also presented a 90-minute CLE for the Pennsylvania Coalition for Civil Justice Reform, a consortium of insurers, corporations, and other defense-oriented groups. The title of the CLE was “The Transformation of Pennsylvania Law: 2016-2023,” and focused on the expansion of civil liability in Pennsylvania in recent years. Finally, John spoke at a symposium honoring the 125th anniversary of the Pennsylvania Superior Court. The symposium focused on different aspects of the Court’s work. John focused on civil litigation. The event was broadcast on Pennsylvania Cable Network. 

Elias Hassinger (Philadelphia, PA) presented at the Philadelphia Bar Association’s 2023 Bench-Bar & Annual Conference in Atlantic City. In the session “Proper Identification of Pain Generators in Work Injuries/Personal Injuries and Novel Treatment Options,” Eli joined a panel discussion on the proper identification of pain generators focused on identifying disc herniations and radiculopathy; discogenic pain and annular tears; vertebrogenic pain; injured joints in the spine; and using platelet rich plasma for tendon/ligament injuries. The panelists also addressed novel treatment options and how they may affect a workers’ compensation claim.

Jahlee Hatchett (Philadelphia, PA) moderated “Productivity Architects: Unlocking Potential and Redefining Success in the Hybrid Era,” at the Philadelphia Bar Association’s 2023 Bench-Bar & Annual Conference.

Ryan Hauck (Pittsburgh, PA) spoke at the Pennsylvania Bar Association’s Workers’ Compensation Fall Section Meeting in Hershey, Pennsylvania. He was a panelist on the topic of “Specific Loss/Disfigurement.”

Matthew Keris (Scranton, PA) spoke at the Forum on Obstetric Malpractice Claims in Philadelphia. Matt joined a panel to discuss “Evaluating the Use of AI in Obstetric Diagnostics: Understanding Enhanced Capability and Inherent Risks.”

Mark Kozlowski (Scranton, PA) presented “Employment Law Basics - 2023 Year in Review: What’s New, What’s Changed, and What Do I Need to Know?” to the Society for Human Resource Management (SHRM), NEPA Chapter.

A.C. Nash and Ryan Burns (Fort Lauderdale, FL) presented “Legislative Update: New Florida Tort Reform Changes Under HB 837” at the RIMS Tampa Bay Chapter meeting in St. Petersburg. 

Michele Punturi (Philadelphia, PA) and Jeffrey Rapattoni (Mount Laurel, NJ) co-presented “Getting Caught with Your Hand in the Proverbial Cookie Jar,” at this year’s ClaimsXChange in Philadelphia. In this presentation, the panel discussed the best strategies for investigating, uncovering, and deterring fraudulent acts while exploring methods to recover monies paid out to fraudulent actors. They also examined how fraud impacts the claim value and how to counteract its debilitating effects. 

Victoria Scanlon and Melissa Dziak (Scranton, PA) presented to the Physician Assistant Program at Marywood University on “Mitigating Physician Assistant Legal Liability.”

Kacey Wiedt (Harrisburg, PA) and Daniel Deitrick (Pittsburgh, PA) presented “How the Lorino and Neves Decisions Have Impacted the Defense of Workers’ Compensation Cases,” at the CCAP Defense Counsel Meeting.

Courtney Schulnick (Philadelphia, PA) was part of a panel for the Philadelphia Law Department’s annual CLE program held at the Pennsylvania Convention Center. During this two-hour CLE, Courtney was joined by Alison Lintal, Esq, visiting Assistant Professor of Law and Director of the Externship Program at Penn State University Dickinson Law School and Dena Lefkowitz, Esq., author, business, and career coach for lawyers. The panel discussed Emotional Intelligence (EI) and how it can help attorneys to handle interpersonal relations judiciously and empathetically. Courtney focused on mindfulness practices that can help us step out of reactivity and choose how to most skillfully respond, whether it’s trying a case in court, dealing with a difficult adversary, serving the needs of our clients, working together with colleagues, or caring for a loved one.

David Shannon (Philadelphia, PA) hosted the third episode of his PLUS podcast, “Managing Cybersecurity Threats in 2023.” David was joined by Brendan McGann of Arete to discuss mid-year data breach trends. From increased ransom demands and paying for data deletion, to an uptick in breaches within the professional services industry, David and Brendan analyzed what’s happened so far in 2023 – and trends they anticipate will lead us into 2024. Click here to listen. 

Jack Slimm (Mount Laurel, NJ) presented with Frank Ciuffani P.J.Chancery (ret.) at the New Jersey State Bar Association’s NJICLE 2023 Business Litigation Seminar on November 1. Their topic, “NJ Business Rule and Its Application to Lost Profits,” explored the new rule and whether a new business can ever prove lost profits damages with reasonable certainty.

Jack Slimm and Jeremy Zacharias (Mount Laurel, NJ) presented a webinar entitled “Strategic Approaches to Handling Lost Profit Claims Under New Jersey’s New Business Rule.” Jack and Jeremy presented on the current New Jersey law on the New Business Rule after the Supreme Court’s decision in Schwartz v. Menas, a case Jack and Jeremy have been handling on behalf of their clients, a well-known law firm in New Jersey handling real estate and land use matters. Jack and Jeremy went through certain jurisdictional approaches to the New Business Rule, as well as New Jersey’s current rule after the Supreme Court decision in Schwartz v. Menas, 279 A.3d 436 (N.J. 2022). This presentation was attended by various claims professionals and underwriters, and crosses multi-dimensional practices between professional liability and casualty.

Jeremy Zacharias (Mount Laurel, NJ) presented at the New Jersey ICLE’s “Commercial Real Estate: From Handshake to Closing Seminar.” Jeremy’s topic pertained to ethical considerations in handling commercial real estate transactions. He discussed the implications of the Rules of Professional Conduct on certain real estate transactions, including multiple representations, dealing with unrepresented parties, and practical pointers when facing a motion to disqualify when an attorney handles multiple representations in a commercial real estate deal. This presentation was well attended by members of the Bar, and and Jeremy discussed the importance of assessing the Rules of Professional Conduct in everyday practice.


 

Defense Digest, Vol. 29, No. 4, December 2023, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2023 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

New Jersey Appellate Division Affirms Exclusion of Legal Malpractice Expert as Impermissible Net Opinion

Jack Slimm and Jeremy Zacharias obtained a favorable decision on behalf of their client in a case centering on the admissibility of expert testimony in legal malpractice actions. In Martin v. Loury, the New Jersey Appellate Division affirmed the exclusion of a plaintiff's legal malpractice expert, holding that the expert's opinions on causation and damages were too speculative to support the malpractice claim. The legal malpractice action arose from an underlying employment dispute involving claims for damages stemming from the breach of an employment agreement. The plaintiff alleged that defense counsel committed malpractice during a second trial by failing to recall the plaintiff as a rebuttal witness after the employer's CEO testified. According to the plaintiff's expert, additional rebuttal testimony would have bolstered the plaintiff's damages claims and led to a more favorable result. Both the trial court and the Appellate Division rejected that theory. The courts found that the expert could not explain how the proposed rebuttal testimony would have altered the outcome of the underlying case or resulted in any additional recoverable damages. Notably, the trial judge in the underlying employment matter had already rejected the CEO's testimony as not credible and had accepted the damages analysis advanced by the plaintiff. The court had also determined that the amount of damages was not genuinely disputed. As a result, the expert's opinion that additional rebuttal testimony would have produced a better outcome was unsupported by the record and based on speculation rather than evidence. The Appellate Division agreed that neither the plaintiff nor the expert could identify any actual damages attributable to the alleged malpractice or demonstrate the required element of proximate causation. The court further upheld the trial court's application of New Jersey's net opinion doctrine, finding that the expert failed to provide the necessary "why and wherefore" supporting his conclusion that the attorney's conduct caused a compensable loss. Because the opinions rested on unquantified possibilities rather than demonstrable facts, they were inadmissible. Key Takeaway for Legal Malpractice Defendants For attorneys and firms defending legal malpractice claims, Martin v. Loury underscores the importance of closely scrutinizing an opponent's expert report on the critical elements of proximate causation and damages. The decision demonstrates that a malpractice claim cannot survive where an expert merely speculates that different litigation tactics might have produced a better result. Instead, the plaintiff must present admissible expert testimony grounded in the record that explains how the alleged attorney error probably changed the outcome of the underlying matter and resulted in measurable damages.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

Supreme Court of Pennsylvania Holds That Public Policy Does Not Prevent Insurance Coverage for Sex Trafficking Claims

On July 21, 2026, the Supreme Court of Pennsylvania issued an opinion emphasizing the limited circumstances in which courts may invoke public policy to bar insurance coverage, holding in Samsung Fire & Marine Insurance Co., Ltd. (U.S. Branch) v. RI Settlement Trust that Pennsylvania public policy does not preclude coverage for claims alleging that insureds enabled or profited from human sex trafficking. The decision rejects a line of federal district court decisions predicting otherwise and reinforces that Pennsylvania courts will invoke the public policy doctrine only in the clearest of circumstances. RI Settlement is particularly significant because it arose on certified questions from the United States Court of Appeals for the Third Circuit, giving the Supreme Court the opportunity to resolve an issue on which federal courts had predicted Pennsylvania law differently. RI Settlement arose out of four separate civil complaints in which the underlying plaintiffs alleged that, as minors, they were the victims of human sex trafficking at various hotels in Philadelphia. The plaintiffs claimed that the hotel owners were negligent in failing to stop the sex trafficking from happening at their hotels. After the filing of the lawsuits, the hotel owners sought coverage under their Commercial General Liability policies. The insurers initially defended the hotels under Reservation of Rights letters, though the carriers later filed Declaratory Judgment actions seeking declarations that they did not owe a duty to defend or indemnify. In short, the insurers argued in the alternative that they did not owe any obligation to provide coverage based upon Pennsylvania public policy (because the claims violated the Human Trafficking Law – 18 Pa.C.S. § 3011) and the terms and conditions of the policy. On motions for judgment on the pleadings, the District Court found for the insurers on the basis of public policy: There is no duty to defend or indemnify against actions arising out of an insured's criminal conduct related to the sex trafficking of minors. The Court appreciates that it may make public policy the basis of a judicial decision only in “the clearest of cases.” See Minnesota Fire & Cas. Co. v. Greenfield, 589 A.2d 854, 868 (Pa. 2004) (quoting Hall v. Amica Mut. Ins. Co., 648 A.2d 755, 760 (Pa. 1994)). Yet, the Court strains to imagine a clearer case than the one presented here in which the facts alleged indicate that Policyholders engaged in criminal conduct in violation of Pennsylvania's Human Trafficking Law. The hotel owners appealed the matter to the Third Circuit, which petitioned the Supreme Court of Pennsylvania to grant review of two certified questions of law: (1) whether Pennsylvania law had an “overriding public policy” against sex trafficking, such that an insurer’s duty to defend and/or indemnify is abrogated when an insured is alleged to have enabled or profited from such trafficking; and (2) if yes, is that duty abrogated whenever the insured’s alleged conduct would constitute a violation of the Pennsylvania Human Trafficking statute. Importantly, the certified questions did not ask the Supreme Court to determine whether the policies afforded coverage under their terms. Rather, the court was asked only whether Pennsylvania public policy independently barred coverage. As a result, the court assumed for purposes of answering the certified questions that the insurers otherwise owed a duty to defend and addressed only the public policy issue, leaving all policy-based coverage defenses for further proceedings. Because the court concluded that the answer to the first certified question was “no”, it did not reach the second issue. In reaching its determination that Pennsylvania public policy does not prohibit insurance coverage for sex trafficking claims, the court limited the impact of its decision in Minnesota Fire & Cas. Co. v. Greenfield, 855 A. 2d 854, 855 (Pa. 2004), which the RI Settlement opinion emphasized as having been an “Opinion Announcing Judgment of the Court” – or a plurality opinion. In Greenfield, the insured homeowner was sued by the estate of his houseguest who overdosed from heroin that he sold to her. The matter wound its way to the Supreme Court, which determined that the insurer did not owe a duty to defend or indemnify based upon Pennsylvania public policy, which criminalized the sale and use of heroin as a Schedule I narcotic. In RI Settlement, the court “decline[d] the invitation” to extend the rationale of the three-justice plurality in Greenfield beyond cases involving Schedule I controlled substances. In so holding, the justices in RI Settlement refused to “divine an overriding public policy pronouncement by the General Assembly by virtue of its enactment of the Human Trafficking Law.” The opinion further states that it is not “within the purview of this Court to rank the magnitude of the public policy underlying the various crimes defined in the Crimes Code. It is sufficient for the work of the courts to know that the General Assembly has identified conduct it deems harmful and dangerous to the maintenance of an orderly society and criminalized it.” While the court declined to declare that Pennsylvania public policy prohibits coverage for sex trafficking claims, the opinion in RI Settlement expressly states that insurers are free to include appropriate exclusionary language for such causes of actions in their policies if they desire to do so. It will certainly be interesting to see whether the insurance industry accepts the court’s invitation, or perhaps whether the Pennsylvania legislature steps in to clarify that sex trafficking claims are indeed of the type or magnitude that they should not be covered by insurance. In any event, we will, of course, continue to monitor this and other insurance coverage issues that arise before courts in Pennsylvania, New Jersey and throughout our firm’s geographic footprint and around the country.

Thought Leadership

Court Allows Recklessness and Punitive Damages Claims to Proceed After Work‑Zone Crash

In a case where a defendant filed preliminary objections against allegations of recklessness and punitive damages, the Susquehanna County Court of Common Pleas denied these preliminary objections. This case stems from a motor vehicle accident, where the defendants car struck the plaintiffs car after the defendant allegedly fell asleep at the wheel, going at a high rate of speed, through a construction work zone. Defendant first objected to the general allegations throughout the plaintiff’s complaint pertaining to “reckless” conduct contending that there were insufficient factual allegations to support the claim of reckless conduct. Defendant next objected to the plaintiffs claim for punitive damages, as punitive damages may only be assessed against a motorist for falling asleep while driving if there is further evidence to prove driver was aware of their drowsiness and risk of falling asleep. Lastly, defendant objected to plaintiffs complaint, claiming it lacked specificity. The court here found that the plaintiff had included in the complaint specific allegations related to the defendant’s alleged recklessness, including allegations regarding speeding in a work zone, almost striking the flagger, falling asleep at the wheel, and striking the plaintiffs vehicle which was stopped. Additionally, the court noted that falling asleep does not come without warning. The court found that these allegations were sufficient to support an allegation of recklessness at the pleadings stage.