LexisNexis® Legal Newsroom
Is There Coverage for Assaulting Your Employee? Business Dispute Not Covered by Homeowners

A Homeowners policy provides worldwide liability insurance coverage to the homeowners subject to various exclusions and limitations. In Perry v. Hartford Underwriters Insurance Company , Not Reported in A.3d, 2015 Del. Super. LEXIS 267 (Del.Super., 6/3/2015), [ enhanced version available to lexis.com...

Pennsylvania Court Holds Disputed Allegations In Complaint Do Not Negate Duty to Defend

In its recent decision in Navigators Ins. Co. v. Amsterdam , 2015 U.S. Dist. LEXIS 64385 (E.D. Pa. May 18, 2015), [ enhanced version available to lexis.com subscribers ], the United States District Court for the Eastern District of Pennsylvania had occasion to consider whether an insurer can rely on...

Come On. Who Doesn’t Love A Good “Use Of An Auto” Case

Cases involving whether injury arises out of the “use of an auto” – for purposes of triggering an Auto or UM/UIM policy or the applicability of a CGL or homeowner’s policy’s auto exclusion -- have a way of involving strange facts. See Roque v. Allstate Ins. Co., Colorado...

Insured vs. Insured Exclusion – One Insured Can’t Get a Defense When Sued by Another Insured

Robert D. Redmond sued ACE American Insurance Company (“ACE”) after it refused to provide insurance coverage in connection with a civil suit Redmond’s former employer brought against him. The District Court dismissed Redmond’s complaint because the language of the insurance policy...

Texas Supreme Court Blows Away Coverage For Hurricanes

Tapas: Small Dishes of Insurance Coverage News & Notes Texas Supreme Court Blows Away Coverage For Hurricanes Coverage for hurricanes was all the talk in the few years following Katrina. Much of the action focused on Louisiana and Mississippi law. The topic has been relatively quiet over the...

California Court Considers Intentional Acts Exclusion in Homeowners Policy

In Albert v. Mid-Century Insurance Company , 2015 Cal. App. LEXIS 431 (April 28, 2015, status changed from published to unpublished May 20, 2015), [ enhanced version available to lexis.com subscribers ], the California Court of Appeal had occasion to consider whether the over-pruning of trees across...

Ninth Circuit Holds Property Damage Directly Caused By Fire

In Stankova v. Metropolitan Property & Casualty Insurance Company , 2015 U.S. App. LEXIS 8935 (9th Cir. May 29, 2015), [ enhanced version available to lexis.com subscribers ], the Ninth Circuit Court of Appeals, applying Arizona law, had the opportunity to address the concept of “direct causation”...

Vicarious Liability & Additional Insured Endorsement – Duty To Defend Based on Extrinsic Evidence

Capital City Real Estate, LLC (“Capital City”) initiated a declaratory judgment action in the District of Maryland, seeking a declaration that Certain Underwriters at Lloyd’s London (“Underwriters”) were obligated to defend and indemnify Capital City against a negligence...

Did This Supreme Court Just Change The Bad Faith Landscape? Is The Decision Poised To Have A National Impact?

It is unquestionably one of the most challenging issues to confront an insurer – the demand to settle a claim within the insured’s limits of liability. We all know the drill. An insurer has been defending its insured for a while. The case is coming down to the end and trial is on the horizon...

Florida Court Addresses Products-Completed Operations Hazard

In its recent decision in Atlantic Cas. Ins. Co. v. LTA Distributor, LLC , 2015 U.S. Dist. LEXIS 70462 (S.D. Fla. June 1, 2015), [ enhanced version available to lexis.com subscribers ], the United States District Court for the Southern District of Florida had occasion to consider the application of a...

Appraisal Award Binding – Payment of Appraisal Award Satisfies Policy Promise to Indemnify

In an opinion expressing the brevity required of a decision on an issue of insurance law that is patently obvious, the Missouri Court of Appeal decided in James-Miller v. American Family Mutual Insurance , — S.W.3d —-, 2015 Mo. App. LEXIS 609 (Mo.App. E.D., 6/9/2015), [ enhanced version available...

Virginia Federal Court Sustains Late Notice Disclaimer

In its recent decision in E Dillon & Co. v. Travelers Cas. & Sur. Co. of America , 2015 U.S. Dist. LEXIS 76295 (W.D. Va. June 12, 2015), [ enhanced version available to lexis.com subscribers ], the United States District Court for the Western District of Virginia, applying Virginia law, had occasion...

Insurer Appointed Lawyer’s Duty is to Client It Was Retained to Defend – Conflict of Interest Required To Remove Counsel

Insurance companies have the right and obligation to choose counsel to defend its insureds. Counsel retained by an insurer to defend an insured, contrary to the belief of many, is obligated solely to represent the rights, duties, obligation and defenses of the party insured. When that party is a corporation...

California’s “Independent” Cumis Counsel Regime Faces A Novel Challenge

By Tyler Gerking On May 5, the California Supreme Court heard argument, [ briefs available to lexis.com subscribers ], in a case that has the potential to profoundly change the relationship between the insurer, its insured and the insured’s independent defense counsel under Civil Code section...

Policyholders Should Resist Insurer Demands to Allocate Settlements

By Dennis Cusack Policyholders seeking insurance funds to settle a case often face an insurer’s demand that some amount should be allocated to uncovered claims or parties. The issue arises often under directors and officers liability (D&O) policies, when settlements resolve the liability...

Insurance May Cover Call Recording Class Actions

By John Green Companies often monitor or record conversations between their employees and customers for training or quality control purposes. California law prohibits monitoring or recording unless both parties consent. Class actions have been brought against a number of companies alleging that...

New Case Highlights Deep Hole in Cyber Insurance Policies

By Dennis Cusack Insurance policies covering data breach liability began appearing roughly ten years ago. We noted then a troublesome provision in some forms that seemed to exclude coverage for the insured’s failure to maintain data security – in other words, the very risk the insured...

Randy Spencer’s Open Mic – Barry Manilow And Cyber Coverage: Court Writes The Songs For Policyholders

Not a day goes by it seems without news of a cyber attack resulting in the release of 4 trillion people’s personal information. It has gotten to the point where one’s identity could seemingly be stolen several times a month. Perhaps the solution for identify theft is to simply wait for your...

Update: ALI’s Restatement Of The Law Of Liability Insurance

It has now been nine months since the American Law Institute did a switcheroo and converted its Principles of the Law of Liability Insurance to the Restatement of the Law of Liability Insurance. Just a one word change – but an impact that speaks volumes. So what’s been happening with the...

Three Sheets To The Win: Policyholder Rewarded For Being Drunk

The court in IDS Property Casualty Ins. Co. v. Schonewolf, No. 13-6039, 2015 U.S. Dist. LEXIS 67542 (E.D. Pa. May 26, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], gave away the ending right at the get-go: “Although I am mindful that courts should...

The Most Important Coverage Case Of 2015; Jeff Waltz Checks In With An Analysis From The Bayou

In the last issue of Coverage Opinions I discussed the Louisiana Supreme Court’s recent decision in Kelly v. State Farm Fire & Casualty Co., No. 2014-CQ-1921 (May 5, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. In general, the Louisiana...

Top 10 Case of 2015: Court Addresses Impact Of Punitive Damages On Bad Faith Failure To Settle

The Third Circuit’s decision in Wolfe v. Allstate Property & Casualty Company, No. 12-4450 (3d Cir. June 12, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], addresses a very interesting and important coverage issue and one where the existing...

Court Rejects 10,000 Page Pollution Exclusion

When it comes to how insurers have fared in Indiana, in their attempts to enforce the pollution exclusion, they are the mouse inside the boa tank at the pet store. Ironically, it could be the exact opposite. All insurers have to do is draft the pollution exclusion using the simple instructions that the...

A Really Curious Coverage Case

Regular readers of CO know that I constantly discuss how challenging “what is an accident” cases can be. The question whether an event qualifies as an “accident,” to trigger liability coverage, is the oldest and one of the most contentious in the book. It is also one of the most...

There’s Been No “Tender” – Does Insurer Still Need To Respond?

We’ve all seen this issue. You are handling a claim for a certain insured, and in the course of doing so, you obtain information that another involved person or entity is also an insured and may have rights under the policy. But here’s the rub – this other person or entity has never...