Introduction

Revolutionary technology can carry significant consequences. Artificial Intelligence (AI) is no exception.

Before AI, fraudsters needed sophisticated technical skills to execute their schemes. It was common to see photoshopped receipts, doctored videos, and other manipulated “evidence” used to support a deceptive claim. Now, swindlers no longer need sophisticated technical skills. With a few keystrokes in a generative AI system, fraudsters can generate professional-quality fake receipts, videos, photographs, or audio recordings.

The Rise in Insurance Fraud

Property and casualty insurance fraud costs an estimated $45 billion annually (including home, auto, and business insurance). In addition, between 10% and 20% of…
Continue Reading Artificial Intelligence: An Unlikely Culprit in Insurance Fraud

Two Factors Driving the Concerns

Nuclear Verdicts. The industry is clearly concerned about the increase in nuclear verdicts against trucking industry defendants—and for good reason. As the report notes, in recent years, some verdicts against trucking industry defendants have exceeded $100 million. And “thermonuclear” verdicts (exceeding $100 million) against corporate defendants are on the rise.[ii]

Third-Party Litigation Funding. Another factor driving the need for lawsuit abuse reform is the increase in third-party litigation funding (TPLF). This form of financing allows plaintiffs to cover litigation costs through a third party in exchange for a right to recover part of the lawsuit’s…
Continue Reading Why the Trucking Industry Is More Concerned Than Ever About Lawsuit Abuse—and Why That Concern Is Justified

by George Kiser
Recently, I was talking with colleagues about overly broad discovery orders entered against defendants and the options for appealing those orders. Wouldn’t it be nice to be able to appeal these orders before the case is over, to prevent a costly search of a client’s records? However, a party is generally not able to appeal a trial court order issued in the middle of a case, before final verdict is entered. Generally, a party can appeal from a final judgement in a case, but not before it. The trial court can grant permission to appeal a decision, but…
Continue Reading Can a Discovery Dispute Lead to Extraordinary Intervention by the Illinois Supreme Court? Usually Not; That’s Why it is Extraordinary

This post was written by HeplerBroom Summer Associate Sarah Jolley. A supervising partner also contributed to the post.
In Abo-Saif v. Bd. of Trustees of Univ. of Illinois, 2022 IL App (1st) 211091, the Illinois Court of Appeals, First District affirmed the Circuit Court of Cook County’s holding that sovereign immunity extends to contract disputes involving formerly private institutions that have since been purchased by the State.
Case Background
Plaintiff Bishoy Abo-Saif, a disabled student at John Marshall Law School (“JMLS”) was dismissed from his juris doctor program on academic grounds. Abo-Saif v. Bd. of Trustees of Univ. of Illinois,…
Continue Reading Sovereign Immunity Extends to Formerly Private Entities Now Owned by the State

by Kathleen Hamilton
After a more than twelve-year court battle and three separate appeals, the Missouri Court of Appeals-Eastern District has ruled that the plain language of Missouri Statute Section 34.057 (the Prompt Pay Act) calls for a penalty of simple interest computed solely on the principal. (The Prompt Pay Act allows courts to impose late payment interest of 1.5% per month on top of payments found to have been withheld from a contractor in bad faith.) The Court of Appeals held that Missouri’s Prompt Pay Act did not provide for compound interest and that the trial court erred in…
Continue Reading Missouri’s Prompt Pay Act Provides for Simple Interest as Penalty for Failure to Pay

by Emilee M. Bramstedt
It is longstanding law in Illinois that a possessor of land does not owe a duty of care to an adult trespasser on his land except to refrain from willfully and wantonly injuring that trespasser.[1] For example, a railroad operator is not expected to keep a lookout for persons on a railroad track that’s away from populated areas and public crossings, where persons are not expected or anticipated to be.[2] Similarly, it has long been held that a possessor of land is not required to foresee an injury caused by an open and obvious…
Continue Reading Quiroz v. Chicago Transit Authority: An Illinois Supreme Court Analysis Regarding the Duty of Care

by Charles Insler
The Biometric Information Privacy Act (BIPA or Act) is the litigation gift that keeps on giving. Hundreds, if not thousands, of BIPA lawsuits have been filed across the state and federal courts of Illinois. Some BIPA lawsuits have even made their way out-of-state,[i] with some settling for enormous sums.[ii] With so many BIPA lawsuits being filed, across all industries, an important question emerges: Is there insurance coverage for these BIPA lawsuits?
 
WHAT IS BIPA?
BIPA establishes safeguards and procedures relating to the retention, collection, disclosure, and destruction of biometric data.[iii] Passed in October…
Continue Reading Insurance Providers & BIPA Litigation: Are Insurers Obligated to Defend Their Insureds in BIPA Litigation?

by Katie A. Fulara Vinge
On May 28, 2021, Illinois Governor J.B. Pritzker signed an amendment to 735 ILCS 5/2-103 allowing for prejudgment interest of 6% for personal injury cases. Since that time, Illinois attorneys have pondered how best to navigate these new waters and how exactly this amendment will impact their clients going forward. In response to the amendment, many legal defense committees drafted a variety of motions and other pleadings that attacked the constitutionality of the amendment. Every county in Illinois has approached these issues differently. Depending on the county, some judges have entered and continued motions until…
Continue Reading The Illinois Prejudgment Interest Statute: Is It Unconstitutional?

This blog post was written by HeplerBroom Summer Associate Caitlin Jarman. Partner Elizabeth Dyer Kellett also contributed to the post.
The Takeaway
The Seventh Circuit’s decision on the distinction between “treatment” and “diagnosis” determined its application of the Illinois Tort Immunity Act.
Case Background
Glen Lash presented to Sparta Community Hospital District (“Sparta hospital”) with complaints of shortness of breath and chest discomfort. Lash v. Sparta Cmty. Hosp. Dist., 38 F.4th 540, 541 (7th Cir. 2022). Upon arrival, Lash’s vital signs were taken and were determined to be “abnormal.” Lash, 38 F.4th at 541. An EKG, blood work, and chest…
Continue Reading To Err is Human: Seventh Circuit Holds that Hospital is Immune from Liability Related to Misdiagnosis

by Isaac R. Melton
Most home and auto insurance policies contain one or more clauses implicating the coverage afforded based on the residency of a named insured or someone seeking coverage under the insurance policy. Although determining one’s place of residence may seem like a straightforward issue, it can require a very fact-intensive analysis under a variety of circumstances. Such an analysis is one of the main focuses in a 2022 Supreme Court Rule 23 Order from the Fifth District Appellate Court. In addition, through the Order, the Fifth District Appellate Court discusses issues involved with the presentation of claims…
Continue Reading How and When to Present Residency Evidence Can Be Key to Trial Success

by Eric Rosser
Our product liability clients are seeing an uptick in plaintiffs’ requests to depose their corporate representatives. More and more, these requests are directed to clients who rarely, if ever, have had to put a corporate representative up for deposition.
Whom should your client select? It’s a big decision. This individual will be the “face of the franchise,” so to speak; his or her testimony will become binding on the company and potentially be used in litigation for years to come. For best results, consider these key factors:
Key 1. Choose a corporate representative now.
Key 2. Choose…
Continue Reading 3 Keys to Preparing for Corporate Representative Depositions