Mealey's Insurance - Federal Judge: Broker Liable For $23M In Suit Arising From Superstorm Sandy Damage

NEW YORK - An insurance broker is liable for $20 million plus $3,205,479.45 in prejudgment interest in a Superstorm Sandy coverage dispute, a New York federal judge said Oct. 1 in entering final judgment that dismissed the claims against the insurer (Cammeby's Management Co., et al. v- Affiliated...

Mealey's Insurance - No Coverage For Claims That Insured Stole Motorola's Trade Secrets, Judge Rules

CHICAGO - Insurers have no duty to defend their cellular technology company insured against Motorola Inc.'s claims that it misappropriated proprietary trade secrets and confidential information, an Illinois federal judge ruled Sept. 30, further finding that the insurers did not act in bad faith ...

Mealey's Insurance - Judge Finds Policy Void Based On Inflated Purchase Price Of Boat

GALVESTON, Texas - A federal appeals court judge sitting by designation over an insurance dispute in the U.S. District Court for the Western District of Texas on Oct. 6 ruled that a man's misrepresentation on an insurance policy application about the purchase price of a boat that was destroyed by...

Mealey's Insurance - Insureds' Loss Caused By 'Earth Movement,' Subject To Limit, Magistrate Judge Says

CHICAGO - Insureds' loss resulted from naturally occurring "earth movement" within the meaning of a builders risk insurance policy and, thus, are subject to the $2.5 million limit, an Illinois federal magistrate judge ruled Oct. 6 (One Place Condominium LLC, et al. v. Travelers Property...

Mealey's Insurance - Professional Liability Insurance Policy Is Not Void Ab Initio, Federal Judge Says

COLUMBIA, S.C. - A professional liability insurance policy is not void ab initio in a coverage dispute over malpractice and negligence claims arising from an alleged doctor imposter, a South Carolina federal judge ruled Oct. 2 (Evanston Insurance Co. v. Vickie Watts, as personal representative of the...

Mealey's Insurance - Pennsylvania Judge Grants Insolvent Insurer's $7M Commutation With Reinsurer

HARRISBURG, Pa. - A Pennsylvania judge on Oct. 2 approved the liquidator of an insolvent insurer's application to terminate and commute a reinsurer's obligations to the insolvent insurer (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Insurance - Florida Federal Judge Denies Summary Judgment In Bad Faith Lawsuit

ORLANDO, Fla. - A federal judge in Florida on Oct. 6 denied an insured's motion for summary judgment in an insurance bad faith lawsuit, ruling that bad faith is a question for a jury to decide (Catherine S. Cadle v. GEICO General Insurance Co., No. 13-1591, M.D. Fla.; 2014 U.S. Dist. LEXIS 141815...

Mealey's Insurance - Panel: Alleged Sexual Assault Was Not Within Scope Of Masseur's Employment

LOS ANGELES - A California appeals panel on Oct. 6 affirmed a lower court's ruling that an insurer has no duty to defend a massage therapist because the intentional sexual assault alleged against him was not within the scope of his employment nor did it occur while he was performing duties related...

Mealey's Insurance - Judge Dismisses Insurers' Equitable Reimbursement Claim In Defects Dispute

RIVERSIDE, Calif. - A California federal judge on Oct. 7 dismissed an equitable reimbursement claim filed by insurers because their duty to defend is ongoing in an underlying construction action for an additional insured (St. Paul Fire and Marine Insurance Co., et al. v. Centex Homes, et al., No. 14...

Mealey's Insurance - Insured Failed To Plead Bad Faith, Punitive Damages Claims, Judge Rules

OKLAHOMA CITY - A federal judge in Oklahoma on Oct. 7 granted summary judgment in an insurance bad faith lawsuit, ruling that an insured failed to provide sufficient evidence of material fact showing that his insurer acted in bad faith in denying his claim under a homeowners insurance policy (Tyler Cole...

Mealey's Insurance - N.J. Panel Remands To Resolve Whether Discrimination Claim Was Properly Denied

TRENTON, N.J. - A New Jersey appeals panel on Oct. 9 reversed a lower court's ruling in favor of a community college in an educators' liability coverage dispute, remanding to determine whether the insurer properly denied coverage for an underlying employment discrimination claim (Bergen Community...

Mealey's Insurance - Panel Affirms Ruling In Insurer's Favor In Suit Arising From Fraudulent Conduct

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Oct. 10 held that a professional liability insurer has no further duty to defend or indemnify its accounting firm insured against an underlying lawsuit seeking damages stemming from the fraudulent conduct of the insured's employee, further...

Mealey's Insurance - Insurer Seeks Reconsideration Of Ruling In Dispute Over $1.2M Employee Theft

ALBANY, N.Y. - An insurer on Oct. 14 asked a New York federal court to reconsider its summary judgment ruling last month in a coverage dispute over a $1.2 million theft by the insured's former manager of accounting (Dataflow Inc., et al. Peerless Insurance Co., No. 3:11-CV-1127 [LEK/DEP], N.D. N...

Mealey's Insurance - Florida Panel Reverses Ruling In Insurer's Favor In Dispute Over Defense Costs

WEST PALM BEACH, Fla. - A Florida appeals panel on Oct. 15 reversed and remanded a lower court's dismissal of a veterinarian insured's complaint against his insurer for breach of contract and a defense cost determination under Florida Statutes Section 627.426 (Dr. Scott J. Swerdlin v. Florida...

Mealey's Insurance - 2nd Circuit: Policy Requires Insurer To Pay No More Than $50,000 Already Tendered

NEW YORK - Because an insured's flood-damaged generator was located in a building's basement and not on a covered floor, an insurer is not required to pay more than the $50,000 it has already tendered in a Superstorm Sandy coverage dispute, the Second Circuit U.S. Court of Appeals affirmed Oct...

Mealey's Insurance - Owners Of 2 Diagnostic Centers To Pay $2.6M To Resolve False Claims Suit

HOUSTON - The owners of two diagnostic centers in Texas on Oct. 16 agreed to pay a combined $2.6 million to resolve claims from three whistle-blowers alleging that the owners violated the False Claims Act and Stark statute, according to filings in Texas federal court (United States, ex rel. Maribeth...

Mealey's Insurance - Judge Finds Disclosure Of Audit Results Not Fatal To Suit

RENO, Nev. - A federal judge in Nevada on Oct. 16 denied a health care company's motion to dismiss a False Claims Act suit against it, ruling that the dissemination of audit results concerning its billing practices to doctors employed by the company did not constitute a public disclosure (United...

Mealey's Insurance - Panel: Insurer Did Not Act In Bad Faith In Denying Coverage Under Policy

NEW YORK - A federal district court did not err in granting summary judgment in an insurance bad faith lawsuit because an insurer was not required to provide coverage for an insured's losses in the basement of the property because the basement was not a "covered location" under the terms...

Mealey's Insurance - Panel Conditionally Grants Writ Of Mandamus In Forum-Selection Clause Dispute

CORPUS CHRISTI, Texas - A Texas appeals panel on Oct. 16 held that an insurer has satisfied its burden to obtain mandamus relief in a lawsuit challenging its insurance practices, directing a lower court to grant the insurer's motion to dismiss based on the policy's forum-selection clause (In...

Mealey's Insurance - Judge: Defendants Failed To Show Claims Adjuster Was Improperly Joined

CORPUS CHRISTI, Texas - A federal judge in Texas on Oct. 17 remanded an insurance breach of contract and bad faith lawsuit to state court, ruling that defendants in the action have failed to show that a claims adjuster was improperly joined in the action (Gilbert Saenz v. IDS Property Casualty Insurance...

Mealey's Insurance - Panel Affirms Lower Court Order, Says Reinsurance Trigger Point Not Met

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Oct. 16 affirmed a lower court decision in a summary order, finding that an insurer's losses did not reach a reinsurance agreement's trigger point and, therefore, a reinsurer is not liable for amounts the insurer said it is owed (Seneca...

Mealey's Insurance - New York Cardiologist Sentenced To 3 Years In Prison, Pay $2M In Restitution

WHITE PLAINS, N.Y. - A federal judge in New York on Oct. 16 sentenced a cardiologist to three years in prison and ordered him to pay $2 million in forfeiture and restitution for fraudulently billing Medicare and other insurance providers for services that were not medically necessary from 2007 until...

Mealey's Insurance - Texas Judge Enters Take- Nothing Judgment In Hurricane Ike Coverage Dispute

GALVESTON, Texas - A Texas judge on Oct. 16 entered a final judgment in favor of an insurer in a Hurricane Ike coverage dispute, ordering the insured to take nothing against the insurer and taxing $39,901.95 in court costs against the insured (League City v. TWIA, No. 12-0053, Texas Dist., 10th Jud....

Mealey's Insurance - Jury Finds Hospital President, 3 Others Guilty In Medicare Fraud Scheme

HOUSTON - A jury in U.S. District Court for the Southern District of Texas on Oct. 20 found that the president of the Riverside General Hospital, his son and two other individuals were guilty of being involved in a $158 million Medicare fraud scheme (United States of America v. Earnest Gibson III, et...

Mealey's Insurance - Illinois Dermatologist Found Guilty Of Defrauding Medicare Of More Than $2.6M

CHICAGO - A jury in federal court in Illinois found a dermatologist guilty of submitting false claims for more than 800 patients resulting in $2.6 million in unnecessary payments from Medicare and other private health insurers (United States of America v. Robert Kolbusz, No. 12-cr-00782, N.D. Ill.).