Andy Keeney presented "Current Litigation Risks" at a MACUMA conference on January 9, 2017.

1. Current Litigation Risks
MACUMA
January 9, 2017
E. Andrew Keeney, Esq.
Kaufman & Canoles, P.C.

2. 2
E. Andrew Keeney, Esq.
Kaufman & Canoles, P.C.
150 West Main Street, Suite 2100
Norfolk, VA 23510
(757) 624-3153
eakeeney@kaufcan.com
http://www.kaufmanandcanoles.com/movies/credit-unions.html

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Overview and Agenda
• Trends and Traps
• Class Action Litigation
• Bond
• Indemnification
• Methods or Means to Reduce Litigation Risks
• Best Practices and Takeaways

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Trends and Traps
• Repossessions
• ADA
• FMLA
• FCRA
• Courtesy Pay
• MLA

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Management & Professional
Liability: Trend Losses
Point of Emphasis: Always consider both frequency and severity
Source: 2011-2015 CUNA Mutual Group internal claims data

6. 6
Management Liability (D&O)
Coverage Drill Down
90% 10%
Percentage Of CUs That Include The Entity Option
As An Insured Person In The D&O Coverage
Entity (Credit
Union) Included
Entity (Credit
Union) Not Included
The above charts references natural person credit unions only (No Corporate Credit Unions)

7. 7
Management Liability (D&O)
Losses Drill Down
99%
1%
Percentage of Entity vs Individual Suits
Within The D&O Coverage
Entity (Credit
Union) Only Named
D&O Suits
Individual Named
D&O Suits
The above charts references natural person credit unions only (No Corporate Credit Unions)

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Class Action Litigation
Class Action Fairness Act of 2005
“Class actions can be a way of leveling the
playing field for poor or economically less
powerful individuals.”

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Class Action Litigation
• Numerosity
• Commality
• Typicality
• Adequacy of representation

10. 10
Methods or Means to Reduce
Class Action Litigation Risks
• Promptly investigate all of the facts
• Fix any mistakes – immediately
• Class action counsel
• Consider arbitration
• Pleadings – Motion to Dismiss
• Settlement

11. 11
Bond
• Who is covered?
• What is covered?
• What are the coverage limits and the
deductible?

12. 12
Indemnification
• Credit union bylaws
• State laws
• Board resolution

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Courtesy Pay

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Best Practices and Takeaways
• Documentation
• Credit union policies
• Litigation hold
• Bond coverage
• Reports and monitoring
• Fight or settle?

19. 19
E. Andrew Keeney, Esq.
Kaufman & Canoles, P.C.
150 West Main Street, Suite 2100
Norfolk, VA 23510
(757) 624-3153
eakeeney@kaufcan.com
http://www.kaufmanandcanoles.com/movies/credit-unions.html

20. Current Litigation Risks
MACUMA
January 9, 2017
E. Andrew Keeney, Esq.
Kaufman & Canoles, P.C.