LexisNexis® Legal Newsroom
Mealey's Insurance - Federal Judge Remands Insurance Bad Faith Case To State Court

OKLAHOMA CITY - A federal judge in Oklahoma on April 13 remanded an insurance bad faith lawsuit to state court, ruling that no evidence exists to show that insureds cannot prove any facts that would entitle them to relief (Philip Mayer, et al. v. Horace Mann Insurance Co., et al., No. 14-1381, W.D. Okla...

Mealey's Insurance - 10th Circuit Affirms Ruling In Insurer's Favor In Dispute Over Notice-Prejudice Rule

DENVER - The 10th Circuit U.S. Court of Appeals on April 14 affirmed a lower federal court's ruling in favor of a directors and officers liability insurer after the Colorado Supreme Court, in answering two certified questions, held that the notice-prejudice rule does not apply to the date-certain...

Mealey's Insurance - Judge: Date Of Accrual Will Determine If Defendants Can Seek Punitive Damages

KNOXVILLE, Tenn. - A federal judge in Tennessee on April 14 ruled that a jury will be instructed that a couple defending against claims from their insurance company that they intentionally set a fire in September 2010 to destroy their home can obtain common-law punitive damages only on their counterclaims...

Mealey's Insurance - New York Federal Judge Orders Insurer To Pay Almost $9M In Attorney Fees

NEW YORK - A New York federal judge on April 14 adopted a federal magistrate's recommendation that an insurer pay its insureds almost $9 million for attorney fees incurred as a result of the insurer's breach of its duty to defend the insureds against underlying asbestos and silica claims (Danaher...

Mealey's Insurance - Judgment Does Not Trigger Excess Insurer's Duty To Defend, Judge Concludes

SAN JOSE, Calif. - A contractor cannot allege that its judgment against a subcontractor for faulty work exceeds $2 million, thereby triggering an excess insurer's duty to defend, a California federal judge ruled April 14, granting dismissal of breach of contract and bad faith claims against the excess...

Mealey's Insurance - Judge: Insurance Agent Not Fraudulently Joined In Insurance Bad Faith Suit

OKLAHOMA CITY - A federal judge in Oklahoma on April 14 remanded an insurance bad faith lawsuit to state court, ruling that an insurance agent was not fraudulently joined in the action (Eileen Caballero v. Safeco Insurance Company of America Inc., et al., No. 14-1336, W.D. Okla.; 2015 U.S. Dist. LEXIS...

Mealey's Insurance - Judge: Claims In Bad Faith Suit Governed By State's Division Of Insurance

LAS VEGAS - Dismissal of an insurance bad faith lawsuit is proper, a federal judge in Nevada ruled April 13, because an insured's claims are governed by the state's Division of Insurance, which has exclusive jurisdiction over the claims (Desiree DeCastro v. Progressive Northern Insurance Co....

Mealey's Insurance - Judge: Fact Issues Exist On Insurer's Defense For Faulty Work, Failure-To-Warn Claims

PHILADELPHIA - Factual questions remain as to whether an insurer had a duty to defend an additional insured against allegations of negligent construction and failure to warn, a Pennsylvania federal judge ruled April 14 (Citizens Insurance Company of America v. Selective Way Insurance Co., No. 14-6232...

Mealey's Insurance - 'Your Work' Exclusion Bars Coverage For Insured's Faulty Work, Panel Affirms

CORPUS CHRISTI, Texas - Allegations of an insured's defective work are precluded under a commercial general liability insurance policy's "your work" and subsidence exclusions, a Texas appeals panel affirmed April 16, finding no duty to defend or indemnify (Adolfo Vela d/b/a Adelco Enterprises...

Mealey's Insurance - Coverage For Insured Is Clearly Limited To $100,000, New York Appellate Panel Says

BROOKLYN, N.Y. - Because a policy clearly provides for a maximum of $100,000 in coverage for cleanup and removal of the discharge of a pollutant caused by a "peril" that occurs during a policy period, the maximum amount of coverage available to an insured seeking coverage for the release of...

Mealey's Insurance - Judge: No Coverage For Alleged Scheme Involving Medical Records Processing Fees

CHARLESTON, W.Va. - A West Virginia federal judge on April 16 found that the "common theme" of an underlying complaint against a hospital and a records-imaging and storage company is deliberate, intentional conduct that led to an expected, desired or foreseeable result and not a chance occurrence...

Mealey's Insurance - New York Federal Judge Denies Motion To Review, Says No New Evidence Presented

NEW YORK - A New York federal judge on April 15 denied an insurer's motion for reconsideration on the basis that the insurer failed to offer any new evidence or point to any changes in controlling law that would support reviewing the federal court's earlier decision in favor of a reinsurer (Global...

Mealey's Insurance - Home Health Care Company Owner Sentenced To 10 Years For Fraud

CHICAGO - The U.S. Attorney's Office for the Northern District of Illinois announced that a federal judge in Illinois on April 17 sentenced the owner of two home health care companies who pleaded guilty to submitting more than $20 million in fraudulent bills to Medicare to 10 years in prison and...

Mealey's Insurance - Insureds Failed To State Claim For Relief In Bad Faith Suit, Judge Rules

PHILADELPHIA - A federal judge in Pennsylvania on April 17 dismissed a number of claims in an insurance bad faith lawsuit, ruling that insureds have failed to state a claim for relief (Joan Groth, et al. v. State Farm Fire & Casualty Co., et al., No. 14-7033, E.D. Pa.; 2015 U.S. Dist. LEXIS 51031...

Mealey's Insurance - La. Federal Judge Enters Final Judgment For Excess Insurers In BP Oil Spill Suit

NEW ORLEANS - A Louisiana federal judge on April 16 dismissed two interpleader actions in the Deepwater Horizon oil spill multidistrict litigation after determining that the excess insurers satisfied their coverage obligations pursuant to a settlement agreement (In re: Oil Spill by the Oil Rig "Deepwater...

Mealey's Insurance - Georgia High Court: Insured Cannot Pursue Bad Faith Action Against Excess Insurer

ATLANTA - The Georgia Supreme Court on April 20 found that a real estate investment trust insured cannot pursue a bad faith action against an excess insurer because the excess insurer did not consent to a $4.9 million securities class action settlement and the insured failed to satisfy the contractually...

Mealey's Insurance - 5th Circuit Finds Judge Did Not Err When Recalculating Restitution

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on April 21 ruled that a federal judge in Texas did not err when ordering a physician couple to pay $37 million in restitution as part of their guilty plea to a 10-year-long insurance fraud scheme, holding that the judge correctly applied the...

Mealey's Insurance - No Coverage For $1.75M Legal Malpractice Judgment, D.C. Panel Affirms

WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on April 21 affirmed a lower federal court's ruling that a professional liability insurer has no duty to cover the costs of a $1.75 million legal malpractice action filed against a law firm insured and two of its attorneys...

Mealey's Insurance - 5th Circuit: Judge Erred When Using Intended Loss To Sentence Fraud Defendant

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on April 21 affirmed the conviction of a man found guilty of obtaining stranger-obtained life insurance (STOLI) policies for unqualified applicants, but ordered a federal judge in Texas to recalculate the man's sentence and restitution amount...

Mealey's Insurance - Advertising Injury Coverage Not Triggered, Maryland Majority Says In Reversal

ANNAPOLIS, Md. - A majority of the Maryland Court of Appeals held April 21 that underlying claims against a light designer and manufacturer insured did not trigger the "advertising injury" coverage under two commercial general liability insurance policies because there was no causation between...

Mealey's Insurance - District Court Applied Incorrect Standard Of Review, 9th Circuit Panel Says

SAN FRANCISCO - A District Court erred in applying an abuse-of-discretion standard of review to a benefits denial suit because the summary plan description (SPD) does not constitute the plan document as the insurer argued, the Ninth Circuit U.S. Court of Appeals said April 21 in vacating and remanding...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Partially Denying Coverage, Judge Rules

OKLAHOMA CITY - A federal judge in Oklahoma on April 20 granted in part and denied in part an insurer's motion for summary judgment in an insurance bad faith lawsuit, ruling that an insured failed to show that the insurer acted in bad faith in partially denying coverage to the insured under a homeowners...

Mealey's Insurance - No Coverage Owed For Oil Spill On Insured's Property, Maine Federal Judge Says

PORTLAND, Maine - A Maine federal judge on April 22 denied an insured's motion for summary judgment after determining that no coverage exists for an oil spill because a tanker trailer used to store the oil on the insured's property is not an auto covered for pollution expenses but rather a piece...

Mealey's Insurance - BP Seeks Rehearing Of Texas High Court's Opinion In Gulf Oil Spill Coverage Suit

AUSTIN, Texas - BP Exploration & Production and its affiliates on April 22 filed a motion for rehearing in the Texas Supreme Court, arguing that the court incorrectly limited the additional insured status of BP by incorporating restrictions included in BP's drilling contract with the owner of...

Mealey's Insurance - 9th Circuit Affirms Ruling In Favor Of Claimant; Correct Standard Of Review Applied

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on April 22 determined that a district court correctly applied an abuse of discretion standard of review in a disability benefits suit and correctly determined that the claimant is owed benefits under the policy (R. Jeffrey Evans v. Sun Life &...