Jaffe, citing the terms of Jaffe’s malpractice insurance policy. The
policy describes the insured risk as ―psychiatrist’s professional
liability in respect of insured’s practice of psychiatry.‖ Another clause
of the policy states that Cranford ―agrees to pay such damages as may
be awarded in respect of professional services rendered by Jaffe, or
which should have been rendered by him, resulting from any claims
or suits based solely upon malpractice, error, or mistake.‖ After
Cranford refused to defend him, Jaffe hired his own criminal defense
lawyer. The case went to trial, and Jaffe was found innocent of all
charges. After his acquittal, Jaffe demanded that Cranford reimburse
him for the expenses incurred during trial. When Cranford refused
this request, Jaffe sued. Who wins? Jaffe v. Cranford Insurance
Company, 168 Cal.App.3d 930, 214 Cal.Rptr. 567, Web 1985
Cal.App. Lexis 2153 (Court of Appeal of California)
45.2 Clean Air Act Pilot Petroleum Associates, Inc., and various
affiliated companies distributed gasoline to retail gasoline stations in
the state of New York. Pilot owned some of these stations and leased
them to individual operators who were under contract to purchase
gasoline from Pilot. The EPA took samples of gasoline from five
different service stations to which Pilot had sold unleaded gasoline.
These samples showed that Pilot had delivered ―unleaded gasoline
that contained amounts of lead in excess of that permitted by the
Clean Air Act and EPA regulations.‖ The United States brought
criminal charges against Pilot for violating the act and EPA
regulations and sought fines from Pilot. Who wins? United States v.
Pilot Petroleum Associates, Inc., 712 F.Supp. 1077, Web 1989 U.S.
Dist. Lexis 6119 (United States District Court for the Eastern District
of New York)
45.5 Hazardous Waste Douglas Hoflin was the director of the Public
Works Department for Ocea n Shores, Washington. During a period of
seven years, the department purchased 3,500 gallons of paint for road
maintenance. As painting jobs were finished, the 55-gallon drums that
had contained the paint were returned to the department’s yard. Paint
contains hazardous substances such as lead. When fourteen of the
drums were discovered to still contain unused paint, Hoflin instructed
employees to haul the paint drums to the city’s sewage treatment plant