- Volume 23, Issue #8
- Federal Judge Orders Insurer To Pay $996,840 To Satisfy Medical Malpractice Judgment
GREENBELT, Md.- A Maryland federal judge on April 17 declared that a professional liability insurer is obligated to pay $996,840.50 plus post-judgment interest for an outstanding underlying judgment arising from a medical malpractice/wrongful death lawsuit against its insureds (Claudia M. Mora, et al. v. Lancet Indemnity Risk Retention Group, Inc., No. 16-960, D. Md., 2018 U.S. Dist. LEXIS 64136).
- Colorado Panel: Excess Insurer's Equitable Subrogation Claim Not Legally Viable
DENVER - A Colorado appeals panel on April 5 held that without an assertion that a primary insurer acted in bad faith in refusing to accept a $1 million settlement offer in an underlying malpractice suit, the excess insurer's equitable subrogation claim is not legally viable, reversing a lower court (Preferred Professional Insurance Co. v. The Doctors Company, No. 17-0405, Colo. App., Div. 4, 2018 Colo. App. LEXIS 507).
- Security Services Were Professional In Nature, No Coverage Owed For Break-In
OAKLAND, Calif. - A California federal judge on April 10 held that a commercial general liability insurance policy's professional services exclusion bars coverage for underlying breach of contract and negligence claims against a security company insured arising from a break-in at a car dealership, finding that the security services the insured provided were professional in nature (The Burlington Insurance Company v. Bay One Security, Inc., et al., No. 17-04734, N.D. Calif., 2018 U.S. Dist. LEXIS 61700).
- Judge: Insurer Owes No Defense, Indemnity For Sexual Abuse Claims Against Teacher
BIG STONE GAP, Va.- A Virginia federal judge on April 10 granted an insurer's motion for summary judgment in its lawsuit disputing educators employment liability insurance coverage for underlying claims that a fourth-grade teacher sexually abused a student in 1984 and 1985 (Horace Mann Insurance Company v. Judy Walton Barney, et al., No. 17-00016, W.D. Va., 2018 U.S. Dist. LEXIS 60318).
- USA Gymnastics Sues Insurers In Indiana Court, Seeking Coverage For Nassar Suits
MARION, Ind. - On April 6, USA Gymnastics (USAG) sued seven of its insurers in Indiana court for breach of contract, seeking a declaration as to comprehensive general liability and directors and officers (D&O) coverage for underlying negligence lawsuits arising from the sexual abuse committed by the former doctor of the American gymnastics team Lawrence "Larry" Gerard Nassar (USA Gymnastics v. Ace American Insurance Co., et al., No. 49D011804PL013423, Ind. Super.).
- Harvey Weinstein Seeks To Remove Insurers' Coverage Suit To Federal Court
NEW YORK - Harvey Weinstein on March 21 sought to remove to a federal court insurers' New York lawsuit seeking a declaration that they owe no coverage for 11 underlying lawsuits alleging that he committed intentional, egregious sexual predatory behavior that spanned at least 30 years (Federal Insurance Company, et al. v. Harvey Weinstein, No. 18-02526, S.D. N.Y.).
- Insurer Appeals $945,265 Breach Of Contract Judgment, Discovery Ruling In 2nd Circuit
NEW YORK - An insurer recently asked the Second Circuit U.S. Court of Appeals to reverse a lower federal court's $945,265.11 breach of contract judgment against it and an earlier discovery ruling in a dispute over coverage stemming from underlying sexual misconduct cases brought against its diocese insured (The Hartford Roman Catholic Diocesan Corp. v. Interstate Fire & Casualty Company, Nos. 16-2999 and 17-2484, 2nd Cir.).
- 2nd Circuit Reverses Ruling In Coverage Dispute Over Fatal Construction Site Injury
NEW YORK - The Second Circuit U.S. Court of Appeals on April 4 reversed a lower court's ruling in favor of two business auto liability insurers in a dispute over coverage for an underlying fatal injury that occurred at a construction site, ruling that the court erred in finding that the mechanical device and employers liability exclusions relieved the insurers of their coverage obligations (Employers Insurance Company of Wausau v. Harleysville Preferred Insurance Co., et al., 16-906, 2nd Cir., 2018 U.S. App. LEXIS 8499).
- No Coverage Afforded For Losses Incurred As A Result Of Madoff Ponzi Scheme
NEW HAVEN, Conn. - A Connecticut federal judge on April 10 dismissed an insured's claims for breach of contract and bad faith after determining that no coverage exists for the insured's losses arising out of the Bernard Madoff Ponzi scheme because Madoff's "wrongful entry" into the insured's investment account is not the type of "wrongful entry" covered under the homeowners policies at issue (Susan Kostin v. Pacific Indemnity Co., et al., No. 17-1320, D. Conn., 2018 U.S. Dist. LEXIS 60846).
- 5th Circuit Certifies Questions About Voluntary Payment To Mississippi High Court
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on April 16 certified two questions to the Mississippi Supreme Court regarding whether Mississippi's voluntary payment doctrine bars an insurer from recovering a settlement payment made on behalf of an additional insured when the insurer disputes that the additional insured was actually covered for the settlement under the applicable policy (Colony Insurance Co. v. First Specialty Insurance Corp., No. 17-60094, 5th Cir., 2018 U.S. App. LEXIS 9444).
- Mobile Home Damage Was Not 'Sudden,' No Coverage Owed, 9th Circuit Affirms
SEATTLE - The Ninth Circuit U.S. Court of Appeals on April 11 held that the undisputed evidence demonstrates that the damage to an insured's mobile home developed over a period of up to a year or longer and was readily detectable, affirming a lower federal court's ruling that the damage was not "sudden" and is not covered under a comprehensive insurance policy (Benito Cervantes v. Foremost Insurance Company, 16-35315, 9th Cir., 2018 U.S. App. LEXIS 9059).
- Insurer Has No Duty To Defend False Advertising Suit, 11th Circuit Affirms
ATLANTA - The 11th Circuit U.S. Court of Appeals on April 3 affirmed a lower court's finding that an insurer had no duty to defend or indemnify its insured in a false advertising lawsuit because coverage is barred by a policy exclusion and the insured failed to provide timely notice of the underlying action (Scott, Blane and Darren Recovery, LLC, et al. v. Auto-Owners Insurance Company, No. 17-12945, 11th Cir., 2018 U.S. App. LEXIS 8630).
- Insurer Has No Duty To Defend FMU Against Negligence Suit Brought By Student Dancer
MIAMI - A Florida federal judge on April 9 entered judgment in favor of an insurer three days after finding that the "Sponsorship Exclusion" in an insurance policy endorsement bars coverage for all claims brought against Florida Memorial University (FMU) by a student and member of its dance team (Philadelphia Indemnity Insurance Company v. Florida Memorial University, et al., No. 17-21133, S.D. Fla., 2018 U.S. Dist. LEXIS 61528).
- Justice Again Refuses To Dismiss Insurer's Suit Seeking $1M For Personal Injury Claim
NEW YORK - A New York justice on April 9 adhered to a prior decision that denied one insurer's motion to dismiss another insurer's lawsuit seeking recovery of the $1 million it paid to settle an underlying personal injury action (Old Republic Insurance Company, directly and as Subrogee of STS Steel, Inc., v. United National Insurance Co., No. 155995/2012, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 1338).
- Judge: Insurer Is Not Barred From Litigating Applicability Of Knowledge Exclusion
LOUISVILLE, Ky. - A Kentucky federal judge on March 29 held that an insurer is not barred from seeking an independent determination as to whether its insured knowingly infringed on a competitor's trademarks but is precluded from seeking reimbursement of underlying defense costs (National Trust Insurance Company v. Heaven Hill Distilleries, Inc., No. 14-394, W.D. Ky., 2018 U.S. Dist. LEXIS 52569).
- Insurer Appeals Denial Of Appeal Fees In Copyright Settlement Dispute
ATLANTA - An insurer recently appealed to the 11th Circuit U.S. Court of Appeals the denial of appellate fees in a dispute with its insured (Highland Holdings, Inc., v. Mid-Continent Casualty Company, No. 17-14455-AA, 11th Cir.).
- Parties Dispute Whether Foreign Insurer Received Proper Notice Of Complaint
HELENA, Mont. - A reservation operations center and an insurer and brokers recently submitted arguments before the Montana Supreme Court, disputing whether the foreign insurer was properly served with a complaint and jury demand filed by the center in relation to a coverage dispute and whether a default ruling entered against the insurer should be vacated (Reservation Operations Center v. Scottsdale Insurance Company, et al., No. 17-0580, Mont. Sup.).
- Insured Asks 6th Circuit To Find Policy Covers $306,808 Postjudgment Interest
CINCINNATI - An insured recently asked the Sixth Circuit U.S. Court of Appeals to a reverse a lower federal court's grant of summary judgment in favor of a commercial excess insurer in its breach of contract lawsuit seeking to recover $306,808.46 in post-judgment interest that was awarded against it in an underlying product liability dispute (Key Safety Systems Inc. v. AIG Specialty Insurance Co., 17-1934, 6th Cir.).