May 3, 2010
Partner Christie L. Grymes was interviewed in the GC Agenda section of the May Practical Law The Journal regarding product safety audits. Ms. Grymes recommended that companies should review their product safety compliance programs in light of a new Consumer Products Safety Commission (CPSC) final rule interpreting the factors to be considered when seeking civil penalties for knowing violations of CPSC laws. The final rule, which is a requirement of the Consumer Products Safety Improvement Act of 2008, identifies and provides guidance on the factors the CPSC may consider in determining penalty amounts for violations of the Consumer Product Safety Act, Federal Hazardous Substances Act and Flammable Fabrics Act. Ms. Grymes identified the non-exhaustive list of factors the CPSC may consider in addition to factors already specified in the relevant statutes.Partner Richard D. Milone was also interviewed regarding litigation insurance coverage. He encouraged companies to seek recovery of litigation-related costs under existing policies. He warned against insurance companies, facing economic pressures, resisting payment of defense costs and trying to limit the amounts of costs covered. The article provided the following insurance recovery tips: (1) Avoid accepting conventional wisdom on what types of liability are covered; (2) Explore options under all types of existing coverage; (3) Negotiate the insurer's first offer of payment; and (4) Understand the law. Most jurisdictions require an insurer to defend an entire lawsuit, if the suit contains one potentially covered cause of action.
