ILNews

7th Circuit: Stop using specialist jargon

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals affirmed a District Court ruling in a complex reinsurance case and asked attorneys to be mindful of the language they use in these types of cases.

In Indiana Lumbermens Mutual Insurance Company v. Reinsurance Results, Inc., No. 07-1823, the federal appellate court dealt with the task of determining whether the District Court was correct in granting summary judgment in favor of Indiana Lumbermens. Reinsurance Results, Inc. - which reviews an insurance company's claims against its reinsurers to ensure the insurance company receives the benefits to which its reinsurance contracts entitle it - sought a third of $2.2 million dollars it claimed it obtained for Lumbermens as a result of a review.

Judge Richard Posner broke down the opinion into simpler terms compared to complicated industry terms the attorneys had used in their briefs. Lumbermens had changed the way it paid for its reinsurance premiums to increase the amount of surplus shown on its books. An increased surplus means Lumbermens would not have to pay its reinsurers a premium on certain policies. The accounting change affected the amount of money Lumbermens could bill its reinsurers for losses covered by policies. Lumbermens entered into a contract in 2004 with Reinsurance Results, which alerted Lumbermens that its accounting policy might be improper. Lumbermens' accounting firm advised the company to revert back to its pre-2000 ways of paying premiums.

As a result of the switch back, Reinsurance Results found Lumbermens was entitled to more than $2 million from its reinsurers. Reinsurance Results claimed according to its contract with Lumbermens, it was entitled to a third of that money.

The 7th Circuit agreed with the District Court that Reinsurance Results was not entitled to a portion of the $2.2 million because the benefit Lumbermens received as a result of Reinsurance Results discovering the accounting issue was not one that Lumbermens was contractually obligated to pay Reinsurance Results for discovering. Reinsurance Results could have tried to negotiate the contract to be broader, but under its current contract, it was seeking money in which it was not entitled.

Judge Posner also dedicated a portion of the opinion to reminding attorneys that most judges are not specialists but generalists and therefore will not understand complex jargon relating to a specific industry.

"Lawyers should understand the judges' limited knowledge of specialized fields and choose their vocabulary accordingly. Every esoteric term used by the reinsurance industry has a counterpart in ordinary English, as we hope this opinion has demonstrated," he wrote.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

ADVERTISEMENT