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Archive for May, 2010

Supreme Court of Georgia: Absence of a Reservation of Rights Waives Coverage Defenses Without a Showing of Prejudice

Posted on: May 6th, 2010

By Philip W. Savrin

The Supreme Court of Georgia has answered a lingering question as to whether an insurer can assert coverage defenses when it has defended its insured without a reservation of rights absent a showing of prejudice to the insured.  InWorld Harvest Church, Inc. v. GuideOne Mutual Insurance Company, Case No. S10Q0341 (Ga. May 3, 2010), the insurer assumed the defense of its insured while telling its insured that coverage was doubtful but would be evaluated.  The insurer continued to defend for almost a year before informing the insured that it would be withdrawing from the defense because there was no coverage.  After the insured retained its own attorneys, the case proceeded to judgment in excess of $1 million.  The insured then sued the insurer in federal court for coverage. (more…)

NLRA Provides Protections Even to Non-Union Employees

Posted on: May 1st, 2010

By Ben Mathis and Jonathan Kandel

Ben MathisJonathan KandelA recent case out of the Fourth Circuit Court of Appeals – which covers South Carolina, North Carolina, West Virginia, and Virginia – highlights how a non-union employer can violate the National Labor Relations Act (“NLRA”). In Alton H. Piester LLC v. NLRB, the court found that the non-union employer violated the NLRA by threatening its employees and subsequently terminating one after several complained about a change in pay. 591 F.3d 332 (4th Cir. 2010).

Background of the NLRA (more…)

Sex, Lies, Academic Studies – Fulton County Adult Entertainment Ordinance Upheld

Posted on: May 1st, 2010

By Dana Maine and William J. Linkous, III

William J Linkous, IIIDane MaineIn a very recent decision, the Eleventh Circuit Court of Appeals in Flanigan’s Enterprises, Inc. of Georgia v. Fulton County, Georgia, No. 08-17035, 2010 WL 520542 (11th Cir. 2010), issued a decision providing guidance on the evidentiary support necessary for enacting an adult entertainment ordinance. The decision confirms the appropriateness of reliance on studies and empirical evidence of negative secondary effects, and makes it more difficult for adult entertainment establishments to attack such ordinances with competing evidence. (more…)

Creditors Can Turn Back Time: Potential Recovery from Insolvent Debtors

Posted on: May 1st, 2010

By Bart Gary and Will Tate

Bart GaryWill TateThe Georgia Uniform Fraudulent Transfer Act allows a creditor to reverse, receive value for or attach certain transfers of a debtor. The Act protects creditors from a debtor’s transfers in two situations.

Imagine that you are a widget producer. A new customer comes in with a huge order. You do some due diligence. You check references and call the customer’s bank to confirm lines of credit. You call other suppliers. You also find out that the customer owns a large manufacturing plant in Florida where it will utilize your widgets. Everything seems on the up and up. You deliver your widgets along with your invoice. (more…)