LexisNexis® Legal Newsroom
Mealey's Insurance - Federal Judge: Insured Failed To Plead Factual Allegations In Bad Faith Suit

SHERMAN, Texas - A federal judge in Texas on Feb. 4 granted an insurer's motion for partial summary judgment in an insurance breach of contract and bad faith lawsuit because an insured has failed to state any factual allegations to support her claims (Cathy Broxterman v. State Farm Lloyds, No. 14...

Mealey's Insurance - Federal Judge Remands Insurance Dispute Over Water Damage Claim

LOS ANGELES - A California federal judge on Feb. 2 remanded for lack of subject matter jurisdiction a breach of contract and negligent misrepresentation lawsuit against an insurer and an insurance adjuster over denied coverage for property damage sustained by a water leak (Be Wicked, Inc. v. Travelers...

Mealey's Insurance - Panel Dismisses Appeals In Fax Ad Coverage Dispute For Lack Of Jurisdiction

WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on Feb. 5 dismissed an insurer's appeal and an underlying claimant's cross-appeal in a coverage dispute over unsolicited fax ads, finding that the lower court's ruling failed to resolve all of the insurer's rights...

Mealey's Insurance - Magistrate Judge: Damages From Insured's Alleged Work Did Not Occur In Policy Period

PITTSBURGH - Damages from an insured's alleged faulty construction did not arise during an insurance policy's period and thus did not trigger the insurer's duty to defend, a Pennsylvania federal magistrate judge ruled Feb. 5, dismissing the insured's breach of contract and bad faith claims...

Mealey's Insurance - 9th Circuit: No Directors, Officers Coverage For Mortgage-Backed Securities Claims

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Feb. 8 upheld a federal court's ruling that there is no directors and officers liability coverage for underlying lawsuits alleging that the insured committed misrepresentations and omissions in the sale of approximately $120 million of...

Mealey's Insurance - Federal Judge Dismisses Suit, Says Companies Are Not Insureds Under Policies

BOSTON - A Massachusetts federal judge on Feb. 5 dismissed a lawsuit filed by the state's insurance insolvency fund seeking to recover for asbestos claims paid on behalf of two insolvent insurers after determining that the two companies are not named insureds as they did not assume the past or future...

Mealey's Insurance - 6th Circuit: Evidence Supported Woman's Conviction For Aiding And Abetting Fraud

CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on Feb. 5 affirmed an Ohio federal judge's decision to deny a woman's request for acquittal and new trial after she was found guilty of four counts of aiding and abetting health care fraud and four counts of aiding and abetting aggravated...

Mealey's Insurance - Judge: Homeowners Not Part Of Insurance Contract, Can't Sue For Bad Faith

RENO, Nev. - A federal judge in Nevada on Feb. 5 substantially granted an insurer's motion to dismiss an insurance bad faith lawsuit between homeowners and their tortfeasor's insurer, ruling that the homeowners failed to plead their bad faith claims because they were not a party to the insurance...

Mealey's Insurance - Judge: Insurer Did Not Act In Bad Faith In Handling Of Storm Damage Claim

McALLEN, Texas - A federal judge in Texas on Feb. 4 granted an insurer's motion for summary judgment in an insurance breach of contract and bad faith lawsuit, ruling that the insureds failed to show that the insurer breached its contract when it timely paid on the insureds' claim for storm damage...

Mealey's Insurance - Insured Properly Pleads Breach Of Contract, Bad Faith Claims, Judge Rules

LOS ANGELES - A federal judge in California on Feb. 4 denied an insurer's motion to dismiss an insurance breach of contract and bad faith lawsuit, ruling that an insured has properly pleaded his claims "and the legal basis for those claims" in his complaint (Nicholas Thanos, M.D. v. Unum...

Mealey's Insurance - Contribution Owed To Insurer For Defense Costs, 8th Circuit Panel Affirms

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Feb. 9 affirmed a district court's ruling that an insurer is entitled to contribution from a second insurer that is responsible for one-seventh of the defense costs spent in defending the insured in four underlying benzene-related lawsuits ...

Mealey's Insurance - Denial Was Not Supported By Substantial Evidence, Federal Judge Finds

GREENVILLE, S.C. - Because substantial evidence did not exist to support a disability insurer's denial of long-term benefits, the insurer should have conducted a complete functional capacity evaluation (FCE) or an independent medical examination (IME) of the disability claimant, a South Carolina...

Mealey's Insurance - Abatement Of Bad Faith Claim Is More Appropriate Than Dismissal, Judge Rules

TAMPA, Fla. - A federal judge in Florida on Feb. 8 denied an insurer's motion to dismiss in an insurance bad faith lawsuit, ruling that abatement of certain of an insured's claims is a more proper course of action (Tamara Ley, et al. v. State Farm Mutual Automobile Insurance Co., No. 15-2687...

Mealey's Insurance - New York Federal Judge: Bad Faith, Breach Of Contract Claims Preempted By ERISA

CENTRAL ISLIP, N.Y. - A New York federal judge on Feb. 9 dismissed breach of contract, bad faith and negligence claims asserted against a disability insurer, finding that the claims are clearly preempted by the Employee Retirement Income Security Act (Marta I. Murphy a/k/a Marta L. Murphy v. First Unum...

Mealey's Insurance - Water Damage Caused By Insured's Faulty Work Is An 'Occurrence,' Judge Rules

BIRMINGHAM, Ala. - A commercial general liability insurer failed to establish that it has no duty to defend or indemnify insureds in an underlying construction defects lawsuit, an Alabama federal judge held Feb. 9, finding that alleged water damage caused by insureds' faulty workmanship was an "occurrence"...

Mealey's Insurance - Absolute Employer's Liability Provision Does Not Bar Coverage, Florida Panel Rules

MIAMI - A Florida appeals panel on Feb. 10 held that a general liability insurance policy's "separation of insureds" provision allowed an insured's claimant to pursue her claims stemming from a slip-and-fall injury against additional insureds under the policy, reversing a lower court's...

Mealey's Insurance - Maine Justice Says Umbrella Insurer Has Duty To Defend Under Some Policies

PORTLAND, Maine - An umbrella insurer has a duty to defend its insured against two environmental contamination suits under certain of its policies; however, the insured must prove that it exhausted the underlying policy limits before the remaining policies may be triggered, a Maine justice said Feb....

Mealey's Insurance - Policy's Water Exclusion Precludes Insureds' Damage, Federal Judge Concludes

PHILADELPHIA - An insurance policy's bars coverage for an insureds' water damage because "surface water" includes water from both natural and man-made causes under the exclusion, a Pennsylvania federal judge ruled Feb. 9, dismissing breach of contract and bad faith claims (Citi Gas...

Mealey's Insurance - Water Damage Exclusion Bars Coverage, 5th Circuit Affirms

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Feb. 10 affirmed a lower federal court's ruling that a commercial general liability insurance policy's water damage exclusion bars coverage for an underlying claimant's damages that arose from the intrusion of rainwater, rejecting the...

Mealey's Insurance - Judge: Subrogated Insurer's Breach Of Contract, Negligence Lawsuit Is Time-Barred

BENTON, Ill. - A four-year statute of limitations precludes a subrogated insurer's negligence and breach of contract lawsuit regarding an allegedly defective sprinkler system, an Illinois federal judge ruled Feb. 9, granting summary judgment to a contractor (Cincinnati Insurance Co., as subrogee...

Mealey's Insurance - Judge: Court Does Not Hold Specific Jurisdiction Over Reinsurer's Tort Claims

NEWARK, N.J. - A federal judge in New Jersey on Feb. 8 granted in part a foreign insurer's motion to dismiss certain tort claims brought by an alleged retrocessional reinsurer regarding a dispute over an approximately $9 million retrocessional reinsurance premium (National Indemnity Company v. Companhia...

Mealey's Insurance - Civil Rights Suit Does Not Constitute Just 1 Occurrence, New York High Court Rules

ALBANY, N.Y. - The New York Court of Appeals on Feb. 11 affirmed a lower court's finding that each jail strip search of underlying class members is a separate and distinct occurrence subject to separate deductible payments, further affirming that the underlying attorney fees were properly allocated...

Mealey's Insurance - Professional Services Exclusion Does Not Bar Coverage, Panel Rules In Reversal

WASHINGTON, D.C. - The District of Columbia Court of Appeals on Feb. 11 held that a lower court erred in finding that an insurance policy's professional services exclusion bars coverage for underlying claims against insureds stemming from mortgage-backed securities investments, reversing and remanding...

Mealey's Insurance - Federal Judge Denies Reconsideration, Says Suit Against Insurer Was Timely

TACOMA, Wash. - A Washington federal judge on Feb. 9 denied an insurer's motion for reconsideration, reiterating that a condominium association's lawsuit seeking coverage for water intrusion problems was timely because the limitation period began to run after the hidden damage was discovered...

Mealey's Insurance - Insurer Failed To Assert Design Defect, Failure-To-Warn Claims, Judge Says

SOUTH BEND, Ind. - An Indiana federal judge on Feb. 9 granted in part summary judgment to a manufacture in an insurer's subrogation lawsuit on claims for design defect and failure to adequately warn (The Cincinnati Insurance Co. a/s/o Jason and Michelle Howard v. Lennox Industries, Inc., No. 14-1731...