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Litigation Insights & Analysis

Insurance Coverage Survives Sex Trafficking Allegations Against Hotels: Pennsylvania Supreme Court Clarifies Public Policy Limits

On July 21, 2026, the Pennsylvania Supreme Court addressed a significant coverage question for hotels and their insurers: whether public policy bars coverage when a hotel is accused of enabling or profiting from sex trafficking. In Samsung Fire and Marine Insurance Co. v. RI Settlement Trust, the Court held that allegations of trafficking related misconduct do not automatically eliminate an insurer's duty to defend or indemnify under a liability policy.

When Does an Occurrence Occur? Determining Coverage in Cases of Latent Property Damage

Comprehensive general liability policies commonly provide coverage for property damage which “occurs during the policy period.” In those cases where the insured’s alleged negligence leads to immediate property damage, it is easy to determine whether such damage occurred during a particular policy period. Coverage questions frequently arise, however, where negligent conduct causes damages which are not immediately manifest.

U.S. Supreme Court Expands Broker Exposure in Trucking Cases

A catastrophic trucking accident resulted in severe injuries, including amputation, after a motor carrier struck a stopped tractor trailer. The plaintiff alleged negligent hiring against a transportation broker that selected the carrier despite an alleged poor safety history. The United States Supreme Court resolved a long-standing split among federal courts and held that negligent hiring claims against brokers are not preempted by the Federal Aviation Administration Authorization Act (FAAAA).

EEOC Rescinds 2024 Harassment Guidance – What Employers Need To Know

On January 22, 2026, in a 2-1 vote, the Equal Employment Opportunity Commission (“EEOC”) voted to rescind its 2024 Guidance on Harassment (the “Guidance”), marking a shift in the Agency’s enforcement priorities. More specifically, the Guidance was the first comprehensive articulation of what harassment looked like in the modern workplace, providing extensive examples of what harassment based on sex (including sexual orientation and gender identity), as well as race, religion, disability, age, and more looked like. With the recission, the Agency has left no guidance in its place for purposes of illustrating to employers, and employees alike, what is considered unlawful harassment under Title VII of the Civil Rights Act of 1964 (“Title VII”).

New Jersey Supreme Court Clarifies When Attorneys Owe Duties to Non‑Client Third Parties

Last week’s New Jersey Supreme Court’s decision in Christakos v. Boyadjis provides meaningful guidance for legal malpractice practitioners by clarifying and narrowing the circumstances in which attorneys may owe duties of care to non‑clients. Although the underlying dispute involved an estate planning matter, the Court’s formal adoption of Restatement (Third) of the Law Governing Lawyers sections 51(2) and 51(3) establishes a standardized, two‑path framework that will impact legal malpractice exposure across multiple practice areas, including insurance coverage, corporate, real estate, and finance.

Berk v. Choy: A Procedural Turning Point for Medical Malpractice and Professional Liability Claims

In a rare foray into medical malpractice procedure, the United States Supreme Court issued a unanimous decision in Berk v. Choy that materially alters how state law malpractice claims proceed when filed in federal court. The ruling narrows the reach of state affidavit of merit statutes in diversity actions and is expected to influence forum selection strategies across medical malpractice and other professional liability cases.

2026 Increase in the Pennsylvania Average Weekly Wage

The Pennsylvania Bureau of Workers’ Compensation has announced that for injuries sustained on or after January 1, 2026, the Statewide Average Weekly Wage – which is the maximum compensation rate - is $1,394. For purposes of calculating the update to payments for medical treatment rendered on and after January 1, 2026, the percentage increase in the Statewide Average Weekly Wage is 3.5%.

Pennsylvania Enacts the CROWN Act: Key Takeaways for Employers

On November 25, 2025, Pennsylvania Governor Josh Shapiro signed House Bill 439, known as the Creating a Respectful and Open World for Natural Hair (CROWN) Act, into law during a ceremony at a hair salon in West Philadelphia. This landmark legislation, which amends the Pennsylvania Human Relations Act (PHRA) of 1955, takes effect on January 24, 2026—60 days after signing—and is poised to significantly influence employment litigation across the state by explicitly prohibiting discrimination based on hair type, texture, and protective hairstyles associated with race.

Public Employee & Free Speech Rights: Third Circuit’s Recent Analysis of Retaliation Claims

On September 8, 2025, the Third Circuit issued a precedential opinion in Jorjani v. New Jersey Inst. of Tech., addressing First Amendment retaliation claims brought by public employees. The court analyzed the extent to which an employer may justify adverse employment actions by citing the need to promote the efficiency of public services, particularly when the employee’s speech, made in their capacity as a private citizen, touches on matters of public concern.
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