Gregory K. Lee

The New York Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act became effective on April 18, 2026, establishing new deadlines for third-party complaints. Under this Act, a third-party plaintiff must file their complaint within 90 days of serving the initial answer pursuant to CPLR § 1007(b).1 Any third-party complaint against a plaintiff’s employer, however, must be filed within 90 days of the later of (1) discovering the employer’s identity; or (2) determining that the plaintiff sustained a “grave injury” as defined by Section 11 of the Workers’ Compensation Law. CPLR § 1007(e).2 The Act prohibits filing a third-party complaint after the note of issue unless upon good cause shown or in the interest of justice. CPLR § 1007(c).3 A third-party action filed in violation of this subdivision shall be severed or dismissed without prejudice. CPLR § 1007(d).4 Any severed actions that are initiated as new actions cannot then be consolidated. CPLR § 1007(f).5 Regarding retroactivity: an amendment clarifies that the Act applies to all cases commenced on or after the April 18, 2026 effective date.6 Be advised that as of April 16, 2026, the New York State website has not yet integrated this amendment into the statutory text.7 Lexis captures this update in the editor’s notes,8 and Westlaw includes it within the proposed legislation section.9 ____________________________________________________________________________________ 1 https://www.nysenate.gov/legislation/laws/CVP/1007  2 https://www.nysenate.gov/legislation/laws/CVP/1007  3 https://www.nysenate.gov/legislation/laws/CVP/1007  4 https://www.nysenate.gov/legislation/laws/CVP/1007  5 https://www.nysenate.gov/legislation/laws/CVP/1007  6 https://www.nysenate.gov/legislation/bills/2025/S8809  7 https://www.nysenate.gov/legislation/laws/CVP/1007  8 2026 N.Y. ALS 79 ; 2026 N.Y. Laws 79 ; 2026 N.Y. Ch. 79 ; 2026 N.Y. SB 8809 9 https://1.next.westlaw.com/Document/NFE11DA10E4E211F0AA39CB673CF36EC6/View/FullText.html?navigationPath=Search/v1/results/navigation/i0a93b86c0000019d9c1ba0e5c3a0e723?ppcid=44f5a950322a4255ae42b3e5a5e57b22&Nav=MULTIPLECITATIONS&fragmentIdentifier=NFE11DA10E4E211F0AA39CB673CF36EC6&parentRank=0&startIndex=1&contextData=%28sc.Search%29&transitionType=UniqueDocItem&listSource=Search&listPageSource=781efccd7c647a1b5673e671cb33d842&list=MULTIPLECITATIONS&sessionScopeId=a4a94ca7e43970d7bb6b9036b5ab4e414796eb2f36e0a800dc47d1459a582deb&ppcid=44f5a950322a4255ae42b3e5a5e57b22&originationContext=NonUniqueFindSelected&transitionType=UniqueDocItem&contextData=(sc.Search)

Sarah Fink (Of Counsel-Long Island, NY) authored “Mixed Signals on the Free Flow of information Online – One Step Forward, Two Steps Back,” appearing in the April 21, 2026, posting of Westlaw Today. The article examines three recent court decisions that send mixed signals on the future of internet liability and statutory safe harbor defenses, highlighting a Supreme Court ruling that reinforces protections for online service providers and encourages the free flow of information, alongside two state court rulings (California and New Mexico) that expand potential liability for social media platforms, holding that they can be held liable for harm caused by addiction to social media. Sarah opines, “Together, these three decisions highlight the tension between First Amendment speech rights, statutory safe harbors, public safety online, and recourse for harms, such as mental health deterioration and copyright infringement.” She further explains that the cases “also demonstrate that the traditional statutory safe harbors for internet actors may be circumvented by creative pleading and litigation tactics, leading to questions about their continued relevance.”

Denise M. Motta (Of Counsel-Louisville, KY) was elected as Vice Chair of the Alternative Dispute Resolution Section of the Kentucky Bar Association with a term beginning June 31, 2026, and continuing through 2028. Denise is currently the Chair of the Alternative Dispute Resolution Committee for DRI, is a Panel Member for the American Arbitration Association (Construction and Commercial), and regularly serves as a mediator and arbitrator.

Denise Motta (Of Counsel-Louisville, KY) and Andrew-John Bokeno (Associate-Louisville, KY) obtained summary judgment and dismissal of Wilson Elser’s client, a roofing and sheet metal company, in an arbitration arising from a construction defect claim. The property owner alleged that our client negligently installed and repaired the roof of three apartment buildings, resulting in leaks and a partial collapse of the parapet wall. The owner further alleged damages exceeding $1.7 million. Denise and AJ argued that the owner's claims were barred by the 5-year statute of limitations and the economic loss doctrine. The arbitrator agreed and dismissed the owner's claims.

Gregory Lee (Partner-Los Angeles, CA) has been invited to speak on the panel “Legal Issues During the Customer’s Journey” at the National Ski Areas Association (NSAA) National Convention, to be held May 4-7, 2026, at the La Costa Resort in Carlsbad, California. Alongside fellow ski area defense attorneys, Greg will address the legal issues customers may encounter in their interactions with ski resorts, from pre-arrival experiences to on-mountain visits and post-incident matters.

New York, NY — National law firm Wilson Elser today announced the recipient of the 2026–2027 Thomas W. Wilson Sr. Scholarship, named for the firm’s Chair Emeritus, a founding member of the firm.  This year’s recipient is Amaya Lester, daughter of Weinstock St Fleur, IT Regional Supervisor for the firm’s New York office. The scholarship consists of $10,000 per year for up to four years or upon graduation, whichever occurs first, at an accredited college or university. “We are pleased to continue the firm’s scholarship in honor of Thomas W. Wilson Sr. for the 2026–2027 year,” said Danial McMahon, the firm’s chairman. “Amaya truly embodies the values that the Thomas W. Wilson Sr. Scholarship was established to honor. We are delighted to recognize her exceptional achievements and commitment to making a positive impact in her community. It is my pleasure to congratulate Weinstock, Amaya, and their family.” Amaya is a senior at Mercer County Technical Schools Health Sciences Academy in Trenton, New Jersey. She is a member of the National Honor Society and the National Technical Honor Society and has dedicated four years to her school's swim team while remaining actively involved in various school clubs. Deeply committed to community service, Amaya volunteers through her school's Red Cross Chapter and serves as a Student Ambassador at Mercer County Technical Schools. She is also a member of Glamour Girls, a group that visits nursing homes to build meaningful connections with elderly individuals, and she regularly volunteers at her church. Demonstrating both initiative and leadership, Amaya founded the Green Paws: Veterinary and Environmental Club at her school, inspiring her peers to make a meaningful impact on animal welfare and environmental stewardship. This initiative reflects her passion for these causes – interests she will continue to pursue as she begins her studies in Veterinary Science at Rowan University this fall. About the Thomas W. Wilson Sr. Scholarship Program In 2010, the firm's partnership established the Thomas W. Wilson Sr. Scholarship Program to support the college education of selected award recipients who are children of current, full-time Wilson Elser employees. The scholarship consists of $10,000 per year for up to four years or graduation, whichever occurs first, at an accredited college or university.

Christopher Peticca (Associate-White Plains, NY) and Alan Friedberg (Senior Counsel-White Plains, NY) obtained summary judgment in New York State Supreme Court, Bronx County, securing dismissal of a medical malpractice action against Wilson Elser’s clients, an orthopedic surgeon and his practice. The plaintiff, who sustained a workplace injury years earlier, underwent more than six years of treatment under workers’ compensation coverage before undergoing a total knee replacement performed by our clients. She alleged that the surgery was negligently performed, claiming the components were oversized and improperly aligned. In moving for summary judgment, Chris and Alan argued that the surgery was performed in accordance with the standard of care and that recovery was barred under Workers’ Compensation Law § 11, as the plaintiff had already been compensated for the same injuries. In opposition, the plaintiff submitted an expert affirmation challenging the size and alignment of the knee replacement components, as well as case law in support of her position that her workers’ compensation claims did not bar the malpractice action because the subject knee replacement surgery caused her additional harm. On reply, Chris and Alan prevailed on both arguments, demonstrating that subsequent treatment records and radiological films confirmed the components were properly aligned and installed, and that the plaintiff’s expert ignored material evidence in rendering an opinion to the contrary. They further relied on findings from multiple non-party medical providers within the workers’ compensation records to establish that the clients’ treatment did not cause any additional harm to the plaintiff. Accordingly, the Court held that summary judgment was warranted on two distinct grounds and dismissed the plaintiff’s complaint. 

Jim Kiser (Of Counsel-Dallas, TX) will lead a CLE panel presentation titled “The Butterfly Effect: Tips for Weathering a Litigation Storm” at the Aviation Insurance Association’s Annual Conference, held May 4-7, 2026, in Dallas, Texas. Jim, joined by fellow aviation attorneys and an aviation claims adjuster, will discuss how seemingly insignificant decisions at the beginning of aviation litigation can dramatically impact the case’s course. The panel members will provide suggestions to minimize or eliminate the negative impacts of turbulence and help ensure a smoother, more direct litigation journey with positive results.

The Department of Justice (DOJ) issued an order on April 23, 2026, rescheduling state-licensed medical marijuana and Food & Drug Administration (FDA)-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). The order is also expected to jumpstart the stalled Drug Enforcement Administration (DEA) rescheduling process for adult-use marijuana, which currently remains in Schedule I. The order, therefore, narrows but does not eliminate federal prohibitions. Historical Insurer Treatment of Marijuana For years, federal illegality and Schedule I status fueled blanket exclusions, limited capacity, and encouraged a reliance on the excess and surplus (E&S) market, where bespoke forms and higher premiums filled coverage gaps. Large commercial insurers consistently cited federal illegality and related banking/Anti-Money Laundering (AML) concerns as the principal reasons to stay out, with reputational risk present but fading over time. Federal AML rules under the Bank Secrecy Act (BSA) added compliance friction for “financial institutions,” a term that includes insurers, keeping many programs E&S-only. Reinsurance treaties often include Schedule I barriers, limiting underwriting capacity and appetite. The result has been a fragmented market with tight limits, uneven forms and reinsurance constraints, while admitted options remained scarce.  Emerging Insurance Opportunities Under Schedule III Rescheduling removes a top financial headwind for state‑licensed medical operators by removing Internal Revenue Code Section 280E, enabling ordinary business deductions and improving margins and balance sheets that are essential for better insurance terms and capacity. As profitability and transparency improve, carriers are likely to expand property and business interruption limits for medical cannabis insureds and lean back into reinsurance partnerships that were hard to place under Schedule I. Directors and Officers (D&O) towers should also deepen if valuations, listings, and deal flow revive, though board risk will get more complex. On the casualty side, product liability and recall remain core needs across the supply chain, and demand should rise as operators scale and SKUs proliferate. Underwriting and Risk Assessment The expectation should not be for underwriting to get “easy” just because the schedule number has changed. Transitional risk is real as a result of new products, larger facilities, evolving QA systems, and changing oversight, all of which add execution risk that underwriters will price and condition.  Reclassification may also spark short‑term turbulence if unregulated products spike or enforcement lines blur, amplifying exposures around labeling, warnings, and adverse event tracking. Carriers must continue to scrutinize controls around testing, traceability, facility security protections, and product compliance.  Regulatory and Compliance Implications for Insurers Banking access should improve as perceived AML risk recedes, and Treasury’s Financial Crimes Enforcement (FinCEN) is widely expected to refresh guidance, which would materially reduce compliance concerns for insurers. That said, federal law still treats marijuana as a controlled substance, and FDA/DEA frameworks do not harmonize with adult‑use state markets. The federal prescription drug system mandates FDA‑approved products, doctor prescriptions, pharmacy dispensing and uniform labeling. The FDA has not approved “marijuana” itself for any condition, even though it has approved a CBD‑derived drug (Epidiolex) and several THC‑related drugs (Marinol, Syndros, Cesamet).  Schedule III drugs, by definition, require valid prescriptions. The new order recognizes state‑licensed medical marijuana within Schedule III, but it does not create FDA standards for those state‑program products.  The history of federal attention over CBD should be a cautionary tale for what may come next. Years after hemp was removed from the CSA, the FDA tried to police the quickly expanding consumer hemp product market but eventually gave up and punted the question to Congress in 2023. The regulatory status of CBD in consumer products remains unclear to this day. The move to Schedule III makes a similar pattern likely for medical marijuana products, while leaving intact the prohibition on interstate commerce for unapproved drugs. With no FDA playbook governing state medical cannabis, insurers still face gray zones on product safety, compliance warranties, and how to price recall and product‑liability risk across a patchwork of state standards. To date, the DOJ has largely sidestepped how federal rules will interact with state markets, and even now, FDA officials have signaled limited appetite and capacity to police the state industry. This uncertain compliance environment keeps the market in “proceed with caution” mode.  Broader Insurance Market Outlook Even with the new Schedule III order and an expected acceleration of rulemaking for adult-use cannabis products, most industry experts still forecast incremental, measured expansion rather than a flood of cheap capacity. Specialty E&S markets will maintain their early lead, scaling capacity where controls are strong and data quality is high. Established carriers may test targeted segments, which may include well-capitalized and vertically integrated operators with robust governance. Reinsurers, meanwhile, should selectively increase their presence as banking and financial reporting normalize. Admitted options may emerge first for lower hazard risks, but E&S will dominate complex risks until federal/state alignment is clearer and product safety litigation trends stabilize.  Where We Are Going Rescheduling is the green light many insurers have been waiting for, but the light is still flashing. Most importantly, the timing of rescheduling and rulemaking for adult-use cannabis products remains uncertain. Taxes and banking are set to improve immediately for medical marijuana operators. In this environment, new insurance entrants will follow the underwriting experts who already know the terrain. The winners will be carriers and insureds who treat this as a disciplined pivot‒ lock in compliance, invest in quality systems, and build programs that can scale as federal guidance catches up.  The next 12 to 24 months should see steady capacity gains and a gradual transition from “can we insure it?” to “how well is it run?” Meanwhile, E&S is still calling the plays while the admitted market warms up on the sidelines.  This article was published in the April 28, 2026, posting of Insurance Journal.

Jonathan Meer (Partner-New York, NY), Stephanie Reda (Partner-White Plains, NY), and Martin Ween (Senior Counsel-New York, NY) will present the Wilson Elser Forum webinar “Words Matter: How and Why Insurers Face Issues with Policy and Application Language on May 5, 2026. This presentation will focus on the importance of carefully drafting insurance policies, endorsements, and applications to avoid legal disputes regarding meaning and interpretation. The session will highlight key themes of coverage disputes over policy interpretation and ambiguous words and phrases. The presenters will share caselaw examples and address how counsel can assist in limiting the risks of coverage disputes.

Denise M. Motta (Of Counsel-Louisville, KY) was elected as Vice Chair of the Alternative Dispute Resolution Section of the Kentucky Bar Association with a term beginning June 31, 2026, and continuing through 2028. Denise is currently the Chair of the Alternative Dispute Resolution Committee for DRI, is a Panel Member for the American Arbitration Association (Construction and Commercial), and regularly serves as a mediator and arbitrator.

Sarah Fink (Of Counsel-Long Island, NY) authored “Mixed Signals on the Free Flow of information Online – One Step Forward, Two Steps Back,” appearing in the April 21, 2026, posting of Westlaw Today. The article examines three recent court decisions that send mixed signals on the future of internet liability and statutory safe harbor defenses, highlighting a Supreme Court ruling that reinforces protections for online service providers and encourages the free flow of information, alongside two state court rulings (California and New Mexico) that expand potential liability for social media platforms, holding that they can be held liable for harm caused by addiction to social media. Sarah opines, “Together, these three decisions highlight the tension between First Amendment speech rights, statutory safe harbors, public safety online, and recourse for harms, such as mental health deterioration and copyright infringement.” She further explains that the cases “also demonstrate that the traditional statutory safe harbors for internet actors may be circumvented by creative pleading and litigation tactics, leading to questions about their continued relevance.”

The New York Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act became effective on April 18, 2026, establishing new deadlines for third-party complaints. Under this Act, a third-party plaintiff must file their complaint within 90 days of serving the initial answer pursuant to CPLR § 1007(b).1 Any third-party complaint against a plaintiff’s employer, however, must be filed within 90 days of the later of (1) discovering the employer’s identity; or (2) determining that the plaintiff sustained a “grave injury” as defined by Section 11 of the Workers’ Compensation Law. CPLR § 1007(e).2 The Act prohibits filing a third-party complaint after the note of issue unless upon good cause shown or in the interest of justice. CPLR § 1007(c).3 A third-party action filed in violation of this subdivision shall be severed or dismissed without prejudice. CPLR § 1007(d).4 Any severed actions that are initiated as new actions cannot then be consolidated. CPLR § 1007(f).5 Regarding retroactivity: an amendment clarifies that the Act applies to all cases commenced on or after the April 18, 2026 effective date.6 Be advised that as of April 16, 2026, the New York State website has not yet integrated this amendment into the statutory text.7 Lexis captures this update in the editor’s notes,8 and Westlaw includes it within the proposed legislation section.9 ____________________________________________________________________________________ 1 https://www.nysenate.gov/legislation/laws/CVP/1007  2 https://www.nysenate.gov/legislation/laws/CVP/1007  3 https://www.nysenate.gov/legislation/laws/CVP/1007  4 https://www.nysenate.gov/legislation/laws/CVP/1007  5 https://www.nysenate.gov/legislation/laws/CVP/1007  6 https://www.nysenate.gov/legislation/bills/2025/S8809  7 https://www.nysenate.gov/legislation/laws/CVP/1007  8 2026 N.Y. ALS 79 ; 2026 N.Y. Laws 79 ; 2026 N.Y. Ch. 79 ; 2026 N.Y. SB 8809 9 https://1.next.westlaw.com/Document/NFE11DA10E4E211F0AA39CB673CF36EC6/View/FullText.html?navigationPath=Search/v1/results/navigation/i0a93b86c0000019d9c1ba0e5c3a0e723?ppcid=44f5a950322a4255ae42b3e5a5e57b22&Nav=MULTIPLECITATIONS&fragmentIdentifier=NFE11DA10E4E211F0AA39CB673CF36EC6&parentRank=0&startIndex=1&contextData=%28sc.Search%29&transitionType=UniqueDocItem&listSource=Search&listPageSource=781efccd7c647a1b5673e671cb33d842&list=MULTIPLECITATIONS&sessionScopeId=a4a94ca7e43970d7bb6b9036b5ab4e414796eb2f36e0a800dc47d1459a582deb&ppcid=44f5a950322a4255ae42b3e5a5e57b22&originationContext=NonUniqueFindSelected&transitionType=UniqueDocItem&contextData=(sc.Search)

Denise Motta (Of Counsel-Louisville, KY) and Andrew-John Bokeno (Associate-Louisville, KY) obtained summary judgment and dismissal of Wilson Elser’s client, a roofing and sheet metal company, in an arbitration arising from a construction defect claim. The property owner alleged that our client negligently installed and repaired the roof of three apartment buildings, resulting in leaks and a partial collapse of the parapet wall. The owner further alleged damages exceeding $1.7 million. Denise and AJ argued that the owner's claims were barred by the 5-year statute of limitations and the economic loss doctrine. The arbitrator agreed and dismissed the owner's claims.

Gregory Lee (Partner-Los Angeles, CA) has been invited to speak on the panel “Legal Issues During the Customer’s Journey” at the National Ski Areas Association (NSAA) National Convention, to be held May 4-7, 2026, at the La Costa Resort in Carlsbad, California. Alongside fellow ski area defense attorneys, Greg will address the legal issues customers may encounter in their interactions with ski resorts, from pre-arrival experiences to on-mountain visits and post-incident matters.

New York, NY — National law firm Wilson Elser today announced the recipient of the 2026–2027 Thomas W. Wilson Sr. Scholarship, named for the firm’s Chair Emeritus, a founding member of the firm.  This year’s recipient is Amaya Lester, daughter of Weinstock St Fleur, IT Regional Supervisor for the firm’s New York office. The scholarship consists of $10,000 per year for up to four years or upon graduation, whichever occurs first, at an accredited college or university. “We are pleased to continue the firm’s scholarship in honor of Thomas W. Wilson Sr. for the 2026–2027 year,” said Danial McMahon, the firm’s chairman. “Amaya truly embodies the values that the Thomas W. Wilson Sr. Scholarship was established to honor. We are delighted to recognize her exceptional achievements and commitment to making a positive impact in her community. It is my pleasure to congratulate Weinstock, Amaya, and their family.” Amaya is a senior at Mercer County Technical Schools Health Sciences Academy in Trenton, New Jersey. She is a member of the National Honor Society and the National Technical Honor Society and has dedicated four years to her school's swim team while remaining actively involved in various school clubs. Deeply committed to community service, Amaya volunteers through her school's Red Cross Chapter and serves as a Student Ambassador at Mercer County Technical Schools. She is also a member of Glamour Girls, a group that visits nursing homes to build meaningful connections with elderly individuals, and she regularly volunteers at her church. Demonstrating both initiative and leadership, Amaya founded the Green Paws: Veterinary and Environmental Club at her school, inspiring her peers to make a meaningful impact on animal welfare and environmental stewardship. This initiative reflects her passion for these causes – interests she will continue to pursue as she begins her studies in Veterinary Science at Rowan University this fall. About the Thomas W. Wilson Sr. Scholarship Program In 2010, the firm's partnership established the Thomas W. Wilson Sr. Scholarship Program to support the college education of selected award recipients who are children of current, full-time Wilson Elser employees. The scholarship consists of $10,000 per year for up to four years or graduation, whichever occurs first, at an accredited college or university.

Christopher Peticca (Associate-White Plains, NY) and Alan Friedberg (Senior Counsel-White Plains, NY) obtained summary judgment in New York State Supreme Court, Bronx County, securing dismissal of a medical malpractice action against Wilson Elser’s clients, an orthopedic surgeon and his practice. The plaintiff, who sustained a workplace injury years earlier, underwent more than six years of treatment under workers’ compensation coverage before undergoing a total knee replacement performed by our clients. She alleged that the surgery was negligently performed, claiming the components were oversized and improperly aligned. In moving for summary judgment, Chris and Alan argued that the surgery was performed in accordance with the standard of care and that recovery was barred under Workers’ Compensation Law § 11, as the plaintiff had already been compensated for the same injuries. In opposition, the plaintiff submitted an expert affirmation challenging the size and alignment of the knee replacement components, as well as case law in support of her position that her workers’ compensation claims did not bar the malpractice action because the subject knee replacement surgery caused her additional harm. On reply, Chris and Alan prevailed on both arguments, demonstrating that subsequent treatment records and radiological films confirmed the components were properly aligned and installed, and that the plaintiff’s expert ignored material evidence in rendering an opinion to the contrary. They further relied on findings from multiple non-party medical providers within the workers’ compensation records to establish that the clients’ treatment did not cause any additional harm to the plaintiff. Accordingly, the Court held that summary judgment was warranted on two distinct grounds and dismissed the plaintiff’s complaint. 

Jim Kiser (Of Counsel-Dallas, TX) will lead a CLE panel presentation titled “The Butterfly Effect: Tips for Weathering a Litigation Storm” at the Aviation Insurance Association’s Annual Conference, held May 4-7, 2026, in Dallas, Texas. Jim, joined by fellow aviation attorneys and an aviation claims adjuster, will discuss how seemingly insignificant decisions at the beginning of aviation litigation can dramatically impact the case’s course. The panel members will provide suggestions to minimize or eliminate the negative impacts of turbulence and help ensure a smoother, more direct litigation journey with positive results.

The Department of Justice (DOJ) issued an order on April 23, 2026, rescheduling state-licensed medical marijuana and Food & Drug Administration (FDA)-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). The order is also expected to jumpstart the stalled Drug Enforcement Administration (DEA) rescheduling process for adult-use marijuana, which currently remains in Schedule I. The order, therefore, narrows but does not eliminate federal prohibitions. Historical Insurer Treatment of Marijuana For years, federal illegality and Schedule I status fueled blanket exclusions, limited capacity, and encouraged a reliance on the excess and surplus (E&S) market, where bespoke forms and higher premiums filled coverage gaps. Large commercial insurers consistently cited federal illegality and related banking/Anti-Money Laundering (AML) concerns as the principal reasons to stay out, with reputational risk present but fading over time. Federal AML rules under the Bank Secrecy Act (BSA) added compliance friction for “financial institutions,” a term that includes insurers, keeping many programs E&S-only. Reinsurance treaties often include Schedule I barriers, limiting underwriting capacity and appetite. The result has been a fragmented market with tight limits, uneven forms and reinsurance constraints, while admitted options remained scarce.  Emerging Insurance Opportunities Under Schedule III Rescheduling removes a top financial headwind for state‑licensed medical operators by removing Internal Revenue Code Section 280E, enabling ordinary business deductions and improving margins and balance sheets that are essential for better insurance terms and capacity. As profitability and transparency improve, carriers are likely to expand property and business interruption limits for medical cannabis insureds and lean back into reinsurance partnerships that were hard to place under Schedule I. Directors and Officers (D&O) towers should also deepen if valuations, listings, and deal flow revive, though board risk will get more complex. On the casualty side, product liability and recall remain core needs across the supply chain, and demand should rise as operators scale and SKUs proliferate. Underwriting and Risk Assessment The expectation should not be for underwriting to get “easy” just because the schedule number has changed. Transitional risk is real as a result of new products, larger facilities, evolving QA systems, and changing oversight, all of which add execution risk that underwriters will price and condition.  Reclassification may also spark short‑term turbulence if unregulated products spike or enforcement lines blur, amplifying exposures around labeling, warnings, and adverse event tracking. Carriers must continue to scrutinize controls around testing, traceability, facility security protections, and product compliance.  Regulatory and Compliance Implications for Insurers Banking access should improve as perceived AML risk recedes, and Treasury’s Financial Crimes Enforcement (FinCEN) is widely expected to refresh guidance, which would materially reduce compliance concerns for insurers. That said, federal law still treats marijuana as a controlled substance, and FDA/DEA frameworks do not harmonize with adult‑use state markets. The federal prescription drug system mandates FDA‑approved products, doctor prescriptions, pharmacy dispensing and uniform labeling. The FDA has not approved “marijuana” itself for any condition, even though it has approved a CBD‑derived drug (Epidiolex) and several THC‑related drugs (Marinol, Syndros, Cesamet).  Schedule III drugs, by definition, require valid prescriptions. The new order recognizes state‑licensed medical marijuana within Schedule III, but it does not create FDA standards for those state‑program products.  The history of federal attention over CBD should be a cautionary tale for what may come next. Years after hemp was removed from the CSA, the FDA tried to police the quickly expanding consumer hemp product market but eventually gave up and punted the question to Congress in 2023. The regulatory status of CBD in consumer products remains unclear to this day. The move to Schedule III makes a similar pattern likely for medical marijuana products, while leaving intact the prohibition on interstate commerce for unapproved drugs. With no FDA playbook governing state medical cannabis, insurers still face gray zones on product safety, compliance warranties, and how to price recall and product‑liability risk across a patchwork of state standards. To date, the DOJ has largely sidestepped how federal rules will interact with state markets, and even now, FDA officials have signaled limited appetite and capacity to police the state industry. This uncertain compliance environment keeps the market in “proceed with caution” mode.  Broader Insurance Market Outlook Even with the new Schedule III order and an expected acceleration of rulemaking for adult-use cannabis products, most industry experts still forecast incremental, measured expansion rather than a flood of cheap capacity. Specialty E&S markets will maintain their early lead, scaling capacity where controls are strong and data quality is high. Established carriers may test targeted segments, which may include well-capitalized and vertically integrated operators with robust governance. Reinsurers, meanwhile, should selectively increase their presence as banking and financial reporting normalize. Admitted options may emerge first for lower hazard risks, but E&S will dominate complex risks until federal/state alignment is clearer and product safety litigation trends stabilize.  Where We Are Going Rescheduling is the green light many insurers have been waiting for, but the light is still flashing. Most importantly, the timing of rescheduling and rulemaking for adult-use cannabis products remains uncertain. Taxes and banking are set to improve immediately for medical marijuana operators. In this environment, new insurance entrants will follow the underwriting experts who already know the terrain. The winners will be carriers and insureds who treat this as a disciplined pivot‒ lock in compliance, invest in quality systems, and build programs that can scale as federal guidance catches up.  The next 12 to 24 months should see steady capacity gains and a gradual transition from “can we insure it?” to “how well is it run?” Meanwhile, E&S is still calling the plays while the admitted market warms up on the sidelines.  This article was published in the April 28, 2026, posting of Insurance Journal.

Jonathan Meer (Partner-New York, NY), Stephanie Reda (Partner-White Plains, NY), and Martin Ween (Senior Counsel-New York, NY) will present the Wilson Elser Forum webinar “Words Matter: How and Why Insurers Face Issues with Policy and Application Language on May 5, 2026. This presentation will focus on the importance of carefully drafting insurance policies, endorsements, and applications to avoid legal disputes regarding meaning and interpretation. The session will highlight key themes of coverage disputes over policy interpretation and ambiguous words and phrases. The presenters will share caselaw examples and address how counsel can assist in limiting the risks of coverage disputes.

Denise M. Motta (Of Counsel-Louisville, KY) was elected as Vice Chair of the Alternative Dispute Resolution Section of the Kentucky Bar Association with a term beginning June 31, 2026, and continuing through 2028. Denise is currently the Chair of the Alternative Dispute Resolution Committee for DRI, is a Panel Member for the American Arbitration Association (Construction and Commercial), and regularly serves as a mediator and arbitrator.

Sarah Fink (Of Counsel-Long Island, NY) authored “Mixed Signals on the Free Flow of information Online – One Step Forward, Two Steps Back,” appearing in the April 21, 2026, posting of Westlaw Today. The article examines three recent court decisions that send mixed signals on the future of internet liability and statutory safe harbor defenses, highlighting a Supreme Court ruling that reinforces protections for online service providers and encourages the free flow of information, alongside two state court rulings (California and New Mexico) that expand potential liability for social media platforms, holding that they can be held liable for harm caused by addiction to social media. Sarah opines, “Together, these three decisions highlight the tension between First Amendment speech rights, statutory safe harbors, public safety online, and recourse for harms, such as mental health deterioration and copyright infringement.” She further explains that the cases “also demonstrate that the traditional statutory safe harbors for internet actors may be circumvented by creative pleading and litigation tactics, leading to questions about their continued relevance.”

The New York Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act became effective on April 18, 2026, establishing new deadlines for third-party complaints. Under this Act, a third-party plaintiff must file their complaint within 90 days of serving the initial answer pursuant to CPLR § 1007(b).1 Any third-party complaint against a plaintiff’s employer, however, must be filed within 90 days of the later of (1) discovering the employer’s identity; or (2) determining that the plaintiff sustained a “grave injury” as defined by Section 11 of the Workers’ Compensation Law. CPLR § 1007(e).2 The Act prohibits filing a third-party complaint after the note of issue unless upon good cause shown or in the interest of justice. CPLR § 1007(c).3 A third-party action filed in violation of this subdivision shall be severed or dismissed without prejudice. CPLR § 1007(d).4 Any severed actions that are initiated as new actions cannot then be consolidated. CPLR § 1007(f).5 Regarding retroactivity: an amendment clarifies that the Act applies to all cases commenced on or after the April 18, 2026 effective date.6 Be advised that as of April 16, 2026, the New York State website has not yet integrated this amendment into the statutory text.7 Lexis captures this update in the editor’s notes,8 and Westlaw includes it within the proposed legislation section.9 ____________________________________________________________________________________ 1 https://www.nysenate.gov/legislation/laws/CVP/1007  2 https://www.nysenate.gov/legislation/laws/CVP/1007  3 https://www.nysenate.gov/legislation/laws/CVP/1007  4 https://www.nysenate.gov/legislation/laws/CVP/1007  5 https://www.nysenate.gov/legislation/laws/CVP/1007  6 https://www.nysenate.gov/legislation/bills/2025/S8809  7 https://www.nysenate.gov/legislation/laws/CVP/1007  8 2026 N.Y. ALS 79 ; 2026 N.Y. Laws 79 ; 2026 N.Y. Ch. 79 ; 2026 N.Y. SB 8809 9 https://1.next.westlaw.com/Document/NFE11DA10E4E211F0AA39CB673CF36EC6/View/FullText.html?navigationPath=Search/v1/results/navigation/i0a93b86c0000019d9c1ba0e5c3a0e723?ppcid=44f5a950322a4255ae42b3e5a5e57b22&Nav=MULTIPLECITATIONS&fragmentIdentifier=NFE11DA10E4E211F0AA39CB673CF36EC6&parentRank=0&startIndex=1&contextData=%28sc.Search%29&transitionType=UniqueDocItem&listSource=Search&listPageSource=781efccd7c647a1b5673e671cb33d842&list=MULTIPLECITATIONS&sessionScopeId=a4a94ca7e43970d7bb6b9036b5ab4e414796eb2f36e0a800dc47d1459a582deb&ppcid=44f5a950322a4255ae42b3e5a5e57b22&originationContext=NonUniqueFindSelected&transitionType=UniqueDocItem&contextData=(sc.Search)

Denise Motta (Of Counsel-Louisville, KY) and Andrew-John Bokeno (Associate-Louisville, KY) obtained summary judgment and dismissal of Wilson Elser’s client, a roofing and sheet metal company, in an arbitration arising from a construction defect claim. The property owner alleged that our client negligently installed and repaired the roof of three apartment buildings, resulting in leaks and a partial collapse of the parapet wall. The owner further alleged damages exceeding $1.7 million. Denise and AJ argued that the owner's claims were barred by the 5-year statute of limitations and the economic loss doctrine. The arbitrator agreed and dismissed the owner's claims.

Gregory Lee (Partner-Los Angeles, CA) has been invited to speak on the panel “Legal Issues During the Customer’s Journey” at the National Ski Areas Association (NSAA) National Convention, to be held May 4-7, 2026, at the La Costa Resort in Carlsbad, California. Alongside fellow ski area defense attorneys, Greg will address the legal issues customers may encounter in their interactions with ski resorts, from pre-arrival experiences to on-mountain visits and post-incident matters.

New York, NY — National law firm Wilson Elser today announced the recipient of the 2026–2027 Thomas W. Wilson Sr. Scholarship, named for the firm’s Chair Emeritus, a founding member of the firm.  This year’s recipient is Amaya Lester, daughter of Weinstock St Fleur, IT Regional Supervisor for the firm’s New York office. The scholarship consists of $10,000 per year for up to four years or upon graduation, whichever occurs first, at an accredited college or university. “We are pleased to continue the firm’s scholarship in honor of Thomas W. Wilson Sr. for the 2026–2027 year,” said Danial McMahon, the firm’s chairman. “Amaya truly embodies the values that the Thomas W. Wilson Sr. Scholarship was established to honor. We are delighted to recognize her exceptional achievements and commitment to making a positive impact in her community. It is my pleasure to congratulate Weinstock, Amaya, and their family.” Amaya is a senior at Mercer County Technical Schools Health Sciences Academy in Trenton, New Jersey. She is a member of the National Honor Society and the National Technical Honor Society and has dedicated four years to her school's swim team while remaining actively involved in various school clubs. Deeply committed to community service, Amaya volunteers through her school's Red Cross Chapter and serves as a Student Ambassador at Mercer County Technical Schools. She is also a member of Glamour Girls, a group that visits nursing homes to build meaningful connections with elderly individuals, and she regularly volunteers at her church. Demonstrating both initiative and leadership, Amaya founded the Green Paws: Veterinary and Environmental Club at her school, inspiring her peers to make a meaningful impact on animal welfare and environmental stewardship. This initiative reflects her passion for these causes – interests she will continue to pursue as she begins her studies in Veterinary Science at Rowan University this fall. About the Thomas W. Wilson Sr. Scholarship Program In 2010, the firm's partnership established the Thomas W. Wilson Sr. Scholarship Program to support the college education of selected award recipients who are children of current, full-time Wilson Elser employees. The scholarship consists of $10,000 per year for up to four years or graduation, whichever occurs first, at an accredited college or university.