Linda D. Kornfeld

Kornfeld is vice chair of Blank Rome LLP’s insurance recovery practice. She continues to work for client Pennsylvania State University in its efforts to compel underwriters to repay the $100 million school officials spent compensating victims of retired football coach Jerry Sandusky, who was convicted of 45 counts of child sexual abuse.

The case has been ongoing for years. Sandusky was convicted in 2012 of sexually abusing 10 boys he came to know through his Second Mile youth charity. He is serving a minimum 30-year state prison sentence.

“The first litigation was with the primary insurer,” Kornfeld said. That dispute yielded only part of what the school sought. “Then you turn to your first level excess insurer.” That part of the case involves Penn State’s claims against United Educators Insurance.

About $50 million in underlying victim settlement amounts is in dispute. An arbitration hearing is set for July in New York. “We’ve been in depositions weekly since January,” Kornfeld said. “We have a significant difference of opinion over how a policy exclusion for intentional conduct applies in this case.” United Educators Insurance v. The Pennsylvania State University, 1:17-cv-03553 (S.D. N.Y., filed May 12, 2017).

In a case watched closely by purchasers of data breach insurance policies, Kornfield represents Cottage Health System Inc., a Central California hospital network, in the first lawsuit filed nationwide regarding coverage for a data breach event. The issues involved include unique procedural and substantive questions concerning the interpretation of insurance policies sold expressly to cover data breaches.

“The insurer is taking the position that information provided during the application process was inadequate,” Kornfeld said. “How the court rules could be relevant to other policyholders. I feel confident we’ll prevail.”

The amount in dispute is around $4 million. Trial is set for August. Cottage Health Systems Inc. v. Columbia Casualty Co., 16CV02310 (Santa Barbara Super. Ct., filed May 31, 2016).

Kornfeld represents Hudson Holdings, a national commercial real estate developer, in a $50 million dispute over insurance coverage for a construction accident that flooded three floors of an historic building in downtown St. Louis, Missouri. Insurer Affiliated FM denied coverage for Hudson’s loss. Kornfeld sued for breach of contract and multiplied damages; the suit settled favorably to her client, she said. “Now we’re teaming up with the city and state to go after the contractors.”

She remains a member of Blank Rome’s Severe Weather Emergency Recovery Team, which provides resources and guidance to entities and individuals impacted by natural disasters.

“Given the increase in wildfires that we’re seeing, we recommend increasing coverage beyond what you had three years ago,” she said.

— John Roemer