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Defense Digest

On the Pulse…Our Philadelphia, Pennsylvania, Office

Defense Digest, Vol. 28, No. 12, December 2022

December 1, 2022

by Butler Buchanan, III

As the managing attorney of the Philadelphia office of Marshall Dennehey, I am happy to have this opportunity to tell you about our corporate headquarters office.

Housing the largest contingent of lawyers in the firm, the attorneys in our Philadelphia office protect the interests of our clients in all four of the firm’s departments—Casualty, Professional Liability, Health Care Liability and Workers’ Compensation. The three members of our firm’s Executive Committee—G. Mark Thompson (CEO and President), Howard P. Dwoskin (Chairman of the Board of Directors and Treasurer) and Craig S. Hudson (Senior Vice President and Assistant Treasurer)—maintain offices in Philadelphia.

In addition to our attorneys, many of the backroom operations of the firm are handled by personnel in the Philadelphia office, and all non-lawyer administrative directors are based here including Colleen Bannon, our Chief Operating Officer. Colleen has a storied history with the firm (more than 40 years!), and before her promotion to COO, she was a practicing shareholder and also held the positions of Director of Human Resources and Director of Litigation Support. With oversight for our 19 offices across seven states, she is in frequent consultation with members of the Executive Committee and all of our office managing attorneys.

Frank Stransky, Chief Financial Officer, is housed in Philadelphia, along with Pattie Day, Director of Billing and Accounting. Between the two of them, all issues concerning billing, accounting and finance are managed firmwide.

Nané Pr’Out, Director of Information Technology, is also housed in the Philadelphia office. Nané manages a team of over 40 IT professionals who provide support for all operations of the firm. From time to time, some attorneys questioned whether we needed such a large IT department. When COVID–19 hit in March of 2020, thanks to the IT Department, we were able to have over 1,100 employees connected and working from home in less than one week. After that, those same attorneys were saying, “I am so happy that we have such a big IT Department.” Our IT team is first rate and does all that it can do to facilitate the practice of law at Marshall Dennehey.

Karen Williams is Marshall Dennehey’s Director of Human Resources. She and her team provide all manner of support in reference to a myriad of human resources issues, in addition to managing the firm’s comprehensive benefit program. They also facilitate our annual United Way giving campaign.

Joseph Goldshear and Jennifer Becker currently serve as Co-Directors of Marketing & Business Development at the firm. Joe has been in that role for 14 years and will be stepping down at year-end 2022, when Jennifer will take over the role in full. We are fortunate that Joe will remain with the firm as a Senior Advisor, to provide assistance to Jennifer as she progresses through her first full year as director. Backed by a creative and impressive group of marketing and public relations professionals, the marketing team works hard to promote the good works of our individual attorneys and the firm as a whole.

Lisa Ricchezza is our Director of Paralegal Services with oversight for our approximately 130 paralegals spread throughout our 19 offices. Lisa travels to the various offices and provides training, direction, assistance and guidance to our paralegal team. Our paralegals are an integral part of Marshall Dennehey and provide first-rate, cost-effective representation on behalf of our clients.

Christopher Hansen is the firm’s Director of E-Discovery and Litigation Support. In the cyber world, the management of documents in a litigation setting can be a massive undertaking. Getting these documents into a format in which they can be reviewed, and also arranging for relevant documents to be presented at trial, is often beyond the technical capabilities of our lawyers. Fortunately, Chris and his team provide ample guidance in that regard.

Lawrence Schempp is our Director of Professional Development. Larry arranges a number of associate training events across the firm each year that provide advice and direction on how to succeed in protecting our clients’ interests. Larry also orchestrates an in-house mock trial academy each summer where eight senior associates are selected to try a case in the mock trial courtroom of our Philadelphia office. Our summer law clerks serve as the jury, and seasoned trial lawyers at the firm serve as faculty. Participants are critiqued in the areas of opening statements, direct and cross-examination, and closing arguments. While the participants find the trial to be somewhat nerve-racking, they always express gratitude for the learning process and experience. Lastly, Larry oversees the provision of CLE credits in each of the seven states where the firm maintains offices. The content of the CLEs is wholly relevant to civil defense litigation practitioners.

Sandy Caiazzo is Marshall Dennehey’s Director of Administrative Services. Sandy manages all administrative assistants in the firm as well as their supervisors and managers. She also serves as the firm’s Lateral Integration Coordinator. Like COO Colleen Bannon, and many other employees of the firm, Sandy has never worked any place other than Marshall Dennehey. She joined the firm out of high school and has been with us for over 40 years.

Jay Rothman is General Counsel to the firm and is assisted in that role by Shane Haselbarth. Both Jay and Shane have only worked at Marshall Dennehey. Prior to being named General Counsel, Jay had a robust practice in the Professional Liability Department. Shane is an accomplished member of our firm’s Appellate Advocacy Practice Group and maintains that work while assisting Jay on the many issues that confront the firm. We are lucky to have two such astute lawyers to protect the firm.

Now that I have highlighted several firm leaders housed in the Philadelphia office, I want to highlight a few Philadelphia office attorneys.

John Hare is a member of the firm’s Board of Directors and Chair of our Appellate Advocacy and Post-Trial Practice Group. John has litigated more than 500 appeals in the state and federal appellate courts and is a Fellow of the American Academy of Appellate Lawyers. John formerly served as Chair of the Pennsylvania Supreme Court’s Civil Procedural Rules Committee. He has edited and co-authored two books on Pennsylvania appellate courts. The Supreme Court of Pennsylvania, Life and Law in the Commonwealth, 1684-2017 was published by the Pennsylvania State University Press in 2018, and Keystone of Justice: The Pennsylvania Superior Court, 1895-1995 was published by the Commonwealth of Pennsylvania in 2000.

Mohamed Bakry is a young shareholder at Marshall Dennehey. An active member of the volunteer community, Mohamed serves as Chair of the Board of Justice for Our Neighbors of the Delaware Valley, an immigration legal service nonprofit organization. He is also the Second Vice President of Board of Directors of The Lawyers’ Club of Philadelphia, a social and educational organization working to promote comradery among members of the bench and the bar in the Philadelphia area. Mohamed is passionate about, and dedicated to, the principles of diversity and inclusion, and he currently serves on Marshall Dennehey’s Diversity, Equity & Inclusion Committee. He is also a member of the Federation of Defense & Corporate Counsel, an association of vetted and premier defense and corporate counsel and industry executives dedicated to leading the profession by advancing the principles of integrity, professionalism and civil justice.

Melanie Foreman, associate in the Casualty Department, is heavily involved in the Philadelphia legal community. She is a board member of Community Legal Services of Philadelphia (CLS) and co-chairs its Leadership Council and Board Development Committee. Melanie is the founder and Chair of Justice Rising, a young professionals’ organization associated with CLS that is dedicated to access to justice for all. She is also a member of the Board of Governors of the Philadelphia Bar Association and sits on the association’s Large Firm Associates Committee. Finally, Melanie was recently invited to join the Board of Trustees of the Philadelphia Bar Foundation, which is the charitable arm of the Philadelphia Bar Association.

We are proud of John, Mohamed and Melanie, and the many other attorneys in our Philadelphia office and elsewhere who are doing incredible things that are law-related, but also outside of the practice of law at the firm.

Lastly, the Philadelphia office, and our neighboring offices throughout the region, reached a significant milestone in 2022. For the 10th consecutive year, Marshall Dennehey was selected one of the Philadelphia region’s “Best Places to Work” by the Philadelphia Business Journal. The award recognizes the firm’s achievements in creating a positive work environment that attracts and retains employees through a combination of benefits, working conditions and company culture. We are proud of this recognition, as expressed by our President & CEO, G. Mark Thompson: “Ten years is a long time to be recognized for anything and the fact that our employees remain engaged and happy makes us think we must be doing something right. A lot has happened in the past decade, but through it all we have emerged stronger together. I could not be prouder of our firm and all of our employees, and we will continue to do whatever we can to continue to improve our working environment so that all of our employees have the opportunity to succeed.”

I hope that this overview provides you with some idea of the scope of the operation in the Philadelphia office that I am so privileged to participate in managing. I also hope that each of you reading this has a wonderful and peaceful Holiday Season and I wish you a happy and healthy 2023.

*Buck is the managing attorney of our Philadelphia, Pennsylvania, office. He can be reached at 215.575.2661 and BBBuchanan@mdwcg.com.

 

Defense Digest, Vol. 28, No. 12, December 2022, 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. © 2022 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

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.

Thought Leadership

SIU Gets a Boost: NJ Supreme Court Affirms Insurers' Right to Litigate, Not Arbitrate, Fraud Claims

In a significant win for insurers' Special Investigation Units, the New Jersey Supreme Court clarified that statutory insurance fraud and racketeering claims may proceed in court rather than through PIP arbitration. At issue was whether insurance fraud claims brought under New Jersey's Insurance Fraud Prevention Act (IFPA) and the state's Anti-Racketeering Act (NJ RICO) are subject to mandatory arbitration under the Automobile Insurance Cost Reduction Act’s (AICRA) PIP dispute-resolution framework. Allstate had sued a network of medical practices, physicians, and related corporate entities, alleging a scheme to extract more than $1.7 million in PIP benefits through fraudulent and misleading billing. The trial court dismissed Allstate's complaint and compelled arbitration, reading AICRA's arbitration clause — which covers "any dispute regarding the recovery of... benefits" under PIP coverage, N.J.S.A. 39:6A-5.1(a) — as sweeping in fraud and racketeering claims along with routine benefit disputes. The Supreme Court affirmed the Appellate Division's reversal, adopting Judge Gilson's opinion below (480 N.J. Super. 566 (App. Div. 2025)) as its own reasoning. The Court held that IFPA and RICO claims fall outside the scope of AICRA's PIP arbitration mechanism because that "streamlined and specialized" process cannot grant the relief those statutes contemplate — treble damages, injunctive relief, broad discovery, and joinder of third parties — and because arbitrators lack authority to award compensatory or treble damages to an insurer. The Court also rejected the argument that Allstate's own Decision Point Review Plans independently compel arbitration, finding those plan provisions no broader than AICRA's own arbitration clause. Notably, the Court expressly disagreed with the Third Circuit's contrary holding in GEICO v. Mt. Prospect Chiropractic Center, 98 F.4th 463 (3d Cir. 2024), concluding it is not bound by that federal interpretation of New Jersey law. Insurers retain the right to pursue IFPA and RICO claims in the Law Division, with a jury trial. For SIU units and NJ insurance carriers, this decision is a significant win: it forecloses defense clinics' primary procedural tool for shunting fraud investigations into limited-scope PIP arbitration, where treble damages, RICO relief, and meaningful discovery were never realistically available. Carriers building cases against fraudulently structured clinics, straw-owned practices, or coordinated billing networks can now proceed with confidence that a well-pleaded IFPA/RICO complaint stays in the Law Division rather than being diverted to arbitration on a motion to compel. Practically, this strengthens SIU's leverage in settlement negotiations, preserves civil discovery tools (subpoenas, depositions, joinder of related corporate entities) critical to unwinding complex ownership and referral schemes, and resolves the split with the Third Circuit in favor of NJ insurers — at least as a matter of state law. Expect increased reliance on IFPA civil actions, rather than PIP arbitration demands, as SIU's primary enforcement vehicle going forward.

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

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.