The US Court of Appeals for the Ninth Circuit has upheld the federal Liability Risk Retention Act (LRRA) preemption status, in Attorneys Liability Protection Society (ALPS) v Ingaldson Fitzgerald.
The National Risk Retention Association (NRRA) had previously filed its amicus curiae brief in the case before the Ninth Circuit.
In the appeal, the Ninth Circuit held that Alaska Statute 21.96.100(d)’s prohibition on reimbursements of fees and costs incurred by an insurer defending a non-covered claim was preempted by the LRRA.
The Ninth Circuit decided that the Alaska statute placed a restriction on Alaska contracts that was not contemplated by the LRRA, and that was not precluded by all other states. The Ninth Circuit further determined that no exception applied to save the Alaska law from preemption.
An en banc rehearing request is being considered. NRRA executive director Joe Deems commented: "This will be a major victory if the Ninth Circuit upholds its own opinion.”
