On April 24, 2020, the First Circuit affirmed the District of Massachusetts’ dismissal of a case against General Electric on forum non conveniens grounds.

In 2011, an earthquake-induced tsunami struck the Fukushima Daiichi Nuclear Power Plant in Japan. Individuals and businesses who suffered property damage and/or economic harm from the disaster filed a class action lawsuit against General Electric, which designed the power plant’s nuclear reactors and safety mechanisms, in the District Court for the District of Massachusetts. The district court held Japan provided an adequate alternative forum and dismissal was in both the private and public interest.

Liability insurers charge premiums in exchange for an agreement to cover certain claims against their policyholders. When settling a tort claim against a policyholder, the insurance company can pay a lump-sum of cash or, in some cases, will enter into a “structured settlement” with the claimant. Here, the insurance company purchases an annuity (or a stream of payments over a set period of time) from, for example, a life insurance company, under which the beneficiary/claimant will receive these payments to settle the claim. However, the process of buying an annuity generates certain transaction costs in the form of a broker’s commission payable by the liability insurer to the life insurance agent. If the liability insurer were to purchase a stream of payments for the amount owed to the claimant but the claimant received less than the insurer paid, what should we call the missing funds: fraud or the price of doing business?