Biography

Stephen Palley is a litigation partner and co-chair of Brown Rudnick’s Digital Commerce group. Stephen is a seasoned litigator with over 20 years of extensive courtroom experience litigating and trying complex commercial matters. He has deep technical and U.S. regulatory knowledge, particularly in the digital asset space, and assists clients working on the frontiers of technology, including on deal work for blockchain and other technology enterprises. He is also a fellow of the American College of Coverage Lawyers, and uses his insurance knowledge and experience to advise clients on insurance coverage matters related to technology and other risks. Stephen has written extensively and been quoted widely on legal issues arising from the use of Blockchain technology, with appearances in both print and television media. He is an editor of the International Journal of Blockchain Law (IJBL), a law journal launched in November 2021 to help non-legal communities better understand Blockchain applications and digital assets. Before joining Brown Rudnick, Stephen founded his prior law firm’s Technology, Media and Distributed Systems Practice Group in 2017, which he also chaired. He serves as an outside general counsel to technology and media startups and as a trusted advisor to established businesses across a range of industries, with a focus on securities and financial regulatory law.

Awards

Representation

Some of Stephen’s notable matters prior to joining Brown Rudnick include:

Technology, Media and Distributed Systems

Counsel for software developers and other digital asset market participants in connection with responses to U.S. regulatory inquiries and investigations related to DeFi and other blockchain related platforms and projects.

Counsel for a digital asset derivative exchange in connection with U.S. regulatory advice and compliance and law enforcement inquiries.

Counsel for NFT platforms, issuers, and investors in connection with regulatory compliance and dispute resolution matters.

Outside general counsel on regulatory compliance and investment decisions to major digital asset funds, family offices and investors.

Consumer arbitration and litigation on behalf of digital asset investors and holders on a wide range of disputes, including advisor agreements, wallet hacks, theft of NFTs and insurance coverage disputes.

Outside general counsel to a direct response advertising platform.

U.S. counsel for major Layer 1 and Layer II protocol developers and foundations, focusing on U.S. regulatory compliance, transactions and dispute avoidance and resolution.

Counsel for a major wallet provider in connection with Series A and Series B funding efforts.

Counsel for a major accounting and advisory firm in connection with digital asset engagements and risk management.

Representation of software developer in connection with design, development and launch of software-based direct response advertising platform, including a variety of ongoing outside general counsel services, such as pre-publication review of social media statements, negotiation of commercial agreements with employees and vendors, and review of website content and advertising material.

Representation of software developers in connection with the design, development and launch of several blockchain based and enabled platforms, including consultation regarding platform structure, compliance obligations, and content delivery.

Representation of media outlets in connection with First Amendment, pre-publication review and media liability matters.

Litigation

Litigation and arbitration for both exchanges and consumers in connection with multiple substantial digital asset losses.

Defense counsel for crypto industry participants in connection with multiple informal inquiries and investigations by state and federal regulators.

Counsel for protocol developers in connection with token allocation disputes.

Trial and litigation counsel for owner in federal court jury trial regarding coverage for decades of environmental cleanup costs under London and domestic insurance policies issued in the 1970s, leading to a unanimous eight-figure jury verdict.

Representation of Investment Advisor in connection with recovery under Management Liability policies for SEC investigation costs.

Representation of owner/developer of multiple residential developments in the New York metropolitan area in state court litigation involving reimbursement of repair costs associated with allegedly defective building components. The litigation involved more than a dozen subcontractors and their insurance companies and multiple cross-claims, as well as third and party complaints. Stephen persuaded all of the involved parties, as well as a court-appointed special master, to engage in an expedited and voluntary discovery process, which led to rapid settlement and payment of claims to his client without extended and expensive discovery or associated costs.

U.S. coverage counsel for international construction company in resolution of a number of ongoing insurance related construction claims.

Representation of policyholder in Federal Court in connection with D & O coverage litigation regarding underlying TCPA class action litigation. Successful resolution of matter following filing of complaint and minimal motion practice.

Representation of EPC contractor in connection with procurement, negotiation and placement of insurance coverage for power plants in northeastern United States.

Representation of EPC contractor in connection with insurance procurement, placement and negotiation of insurance and related contract language for construction of a proposed nuclear power plant. Representation included negotiation with a public utility, review and negotiation of OCIP requirements, contractual insurance specifications, complex waiver and indemnity provisions applying to a proposed multibillion-dollar project, as well as providing advice on insurance requirements including marine, inland marine, nuclear, and more typical construction insurance products such as CGL/excess and builders risk.

Representation of owner/developer in connection with insurance coverage denial on the eve of trial of bodily injury claim arising out of construction of landmark Manhattan high-rise. Successfully negotiated eight-figure settlement with excess carrier after filing summary judgment motion.

Representation of medical practice and physicians in connection with insurance coverage dispute with professional liability insurance company and successful resolution of the same, leading to withdrawal of late coverage denial and defense and indemnity in underlying litigation with eight-figure damages claim.

Representation of construction manager in connection with procurement, negotiation, placement and litigation of insurance coverage for professional sports venues, airports, new hospital construction and other major infrastructure projects across the United States.

Representation of medical facility in connection with procurement, negotiation and placement of insurance coverage for construction of $500 million new hospital construction.

Representation of various parties in connection with procurement, negotiation and placement of insurance coverage for Ground Zero reconstruction in lower Manhattan.

Negotiation and placement of D&O policies for financial services and investment industry clients.

Representation of policyholders in reported cases such as Stanley Martin v. Ohio Casualty Group, 2009 U.S. App. Lexis 2758 (4th Cir. 2009) (confirming that standard CGL policies provide insurance coverage for property damage resulting from allegedly defective construction); Hunt Construction Group v. Allianz Global Risk, 503 F.3d 632 (2007) (Rejecting insurance company argument that builders risk policy written for major construction project at Detroit airport should be considered a “standard fire policy” for limitations purposes).

Representation of condominium association in connection with successful $2 million settlement of construction defect claims related to defective balconies on high-end residential condominium building in Washington, D.C. This matter involved resolution of claims with insurance companies, a surety, developer and trade contractors.

Education

Washington University School of Law, J.D.
University of Delaware, M.A.
Tufts University, B.A., cum laude

Bar Admissions

District of Columbia
New York
Missouri
Illinois (inactive)
U.S. District Court for the District of Columbia
U.S. District Court for the Southern District of New York
News
Publications
Speaking Engagements
Professional Affiliations
Awards and Honors