Liability Insurance Posts
The Restatements of the Law have played a vital role in the rationalization of American jurisprudence for nearly a century. As Justice Anthony M. Kennedy recently remarked at the ALI annual Meeting, the Restatements and the ALI “did for the American, Anglo-American judicial process and for the law in the 1920s what Blackstone had done 150 years earlier.”
Restatement of the Law, Liability Insurance (RLLI), was approved by membership at the 2018 Annual Meeting and the Official Text is now available. The project greatly benefited from its diverse and engaged Advisers and Members Consultative Group. In this Q&A, we posed questions to two of those most involved in the project.
For the first time, the institute has spoken on the subject of liability insurance. It has published the Restatement of the Law, Liability Insurance. This Restatement has proven to be controversial, both in its drafting process and since its final approval. Yet, it was not adopted lightly.
In response to a recent story concerning opposition to The American Law Institute’s Restatement of the Law of Liability Insurance in the Texas state legislature, it appears that at least one sponsor owns an insurance agency, so I assume that some part of the insurance industry has been lobbying for this, even though the insurers and the sponsors have not even seen the final version of the Restatement.
The Supreme Court of Nevada recently issued a decision in which it cited two ALI publications: the Restatement (Second) of Contracts and the Restatement of the Law, Liability Insurance (Proposed Final Draft No. 2, approved May 2018). The court looked to these Restatements to guide its analysis of a question of liability-insurance law under the law of Nevada.
On August 9th a court issued what I believe to be the first decision addressing the ALI’s Restatement of the Law of Liability Insurance post-adoption.
On July 16, 2018, the Delaware Supreme Court held in Travelers Indemnity Company v. CNH Industrial America, LLC, No. 420, 2017 (Del. Jul. 16, 2018), that a court’s choice of law inquiry in an insurance coverage dispute should focus on the contacts most relevant to the insurance contract rather than the location of the underlying claims.
Two Restatement projects, Economic Harm Torts and Liability Insurance, were reviewed and approved for the final time by ALI membership at the 2018 Annual Meeting, marking the completion of both projects.
ALI members voted at The American Law Institute’s 2018 Annual Meeting to approve Restatement of the Law, Liability Insurance. The project Reporters are Tom Baker of the University of Pennsylvania Law School and Associate Reporter Kyle D. Logue of Michigan Law School.
The following entry contains the complete text of the Black Letter, Comments, and Reporters’ Notes from Proposed Final Draft No. 2 of Section 6. Estoppel.