In the appeal of the last of three separate lawsuits related to contribution for defense costs and indemnity costs, in Truck Ins. Exch. v. Federal Ins. Co., 111 Cal. App. 5th 62 (May 12, 2025) depublished, 2025 Cal. LEXIS 4735 (July 23, 2025), the California Second District Court of Appeal reversed the trial court’s decision finding that Truck Insurance Exchange (“Truck”) was not entitled to reimbursement from Federal Insurance Company (“Federal”) in connection with the defense of 30,000 underlying lawsuits against Moldex-Metric, Inc (“Moldex”) related to the manufacture of defective air respirators and masks that failed to protect plaintiffs from inhaling silica, asbestos, and mixed dust leading to bodily injury (the “lawsuits”) based on the argument that Federal had concealed it decision to voluntarily pay defense costs in connection with the lawsuits

In 11640 Woodbridge Condominium Homeowners Association (HOA) v. Farmers Insurance Exchange, 110 Cal.App.5th 211 (March 28, 2025) rev. granted by California Supreme Court, 2025 Cal LEXIS 4791 (Cal. July 30, 2025), the California Second District Court of Appeal reversed the trial court’s entry of summary judgment in favor of Farmers Insurance Exchange (“Farmers”) with respect to a breach of contract and bad faith lawsuit filed by the HOA for property loss sustained by a condominium complex.  The parties’ dispute arose out of damage sustained by the complex due to two rain events while the roof on the complex  was being replaced.  

In Farmers Direct Property and Cas. Ins. Co. v. Montez, et al. 130 F.4th 748 (9th Cir. March 6, 2025), the Ninth Circuit Court of Appeals reversed the District Court’s dismissal of Farmers Direct Property and Casualty Company’s (“Farmers”) declaratory relief action based on lack of subject matter jurisdiction. The District Court agreed with intervening parties, Victor Montez and Lisa Montez (“Montezes”), because Farmers requested a declaration which did not satisfy the jurisdictional limit of $75,000 required in diversity actions filed in federal court. As such, the District Court vacated its order holding that Farmers had no duty to defend and indemnify its insured, Dennis Perez, based on his failure to cooperate, and dismissed the Farmers action.

In a case that has significant ramifications for transportation litigation in New York, the U.S. Court of Appeals for the Second Circuit  held that the plaintiff’s injuries, which included shoulder tears with arthroscopic surgery and lumbar spine herniations with injections following a rear-end collision accident, could not be considered “serious injuries” as defined by New York Insurance Law §5102(d) (the “threshold law”).

Texas’ 89th Legislative Session is off to a fiery start this year. On March 13, 2025, Lt. Gov. Dan Patrick announced his second round of priority bills including, among others, Senate Bill 39 (“SB 39”), which is aimed at protecting Texas trucking. The text of the bill is short, but it aims to build upon the traction gained with the passage of House Bill 19, also known as the trucking bill, during the 87th Legislative Session in 2021. SB 39, which was passed by the Texas Senate on April 24 and is now under consideration by the state House of Representatives, amends Section 72 of the Texas Civil Practice & Remedies Code in two keys ways.

As spring breaks in the Northern United States and Canada, drivers are relieved to move past the hazards created by ice and snowfall. However, with an increase in sunshine comes spring’s own unique transportation challenges. Below are some potential issues to consider for drivers and their employers as we move toward summer.

With the U.S. Supreme Court denying certiorari a third time in Gauthier v. Total Quality Logistics, LLC, No. 24-592, 2025 WL 76497 (U.S. Jan. 13, 2025), it appears unlikely the high court will weigh in (at least during the current term) on whether the Federal Aviation Administration Authorization Act (FAAAA) preempts negligent-hiring, negligent-selection, or negligent-brokering claims arising out of a freight broker’s selection of a motor carrier.

On April 11, 2025, the U.S. Department of Transportation’s (USDOT) Federal Motor Carrier Safety Administration (FMCSA) announced its decision to issue Notices of Proposed Removal from the National Registry of Medical Examiners (National Registry) for failure to adequately perform USDOT physical qualification examinations of interstate commercial motor vehicle operators in accordance with the Federal Motor Carrier Safety Regulations.