- Volume 23, Issue #14
- Judge: Assignee Fails To Show Professional Liability Insurer Acted In Bad Faith
PHILADELPHIA - A Pennsylvania judge on July 13 found that an insured's assignee failed to demonstrate any conduct on the part of a professional liability insurer and attorneys that even remotely indicates that they acted in bad faith or committed professional negligence in defending the insured against an underlying professional malpractice lawsuit (Anastasios Papadopoulos v. Westport Insurance Co., et al., No. 03367, Pa. Comm. Pls., Philadelphia Co.).
- Panel Affirms Rulings In Coverage Dispute Over Doctor's 30-Year Abuse Of Minors
NEW YORK- The Second Circuit U.S. Court of Appeals on July 6 refused to disturb a lower federal court's rulings in a coverage dispute arising from underlying claims of corporate negligence, breach of fiduciary or confidential relationship and breach of the special duty of care owed to children against a hospital insured, finding that the policies' general liability and hospital professional liability coverage was triggered (Pacific Employers Insurance Company v. Saint Francis Care Inc., et al., Nos. 16-2747, 16-2783 and 16-2894, 2nd Cir., 2018 U.S. App. LEXIS 18375).
- Federal Judge Stays Coverage Suit Over Claims Cell Phone Tower Damaged Building
SEATTLE - Exercising inherent authority, a Washington federal judge on July 13 paused T-Mobile Northeast LLC's lawsuit seeking coverage for alleged damage caused by a cell phone tower to allow two related lawsuits to proceed (T-Mobile Northeast LLC v. Selective Insurance Company of America, No. 17-1289, W.D. Wash., 2018 U.S. Dist. LEXIS 117694).
- Judge Finds It Is Conceivable That Negligence Claim Is Covered Under CGL Policy
SPOKANE, Wash.- A Washington federal judge on July 11 held that whether an underlying negligence claim arises solely from an insured's professional services is a question of fact, finding that a commercial general liability insurer has a duty to defend its insured (Evanston Insurance Company v. Rells Fire Protection Inc., et al., No. 17-00249, E.D. Wash., 2018 U.S. Dist. LEXIS 115779).
- Panel: Insured Failed To Comply With Errors, Omissions Policy's Notice Requirement
ATLANTA - The 11th Circuit U.S. Court of Appeals on July 11 found that an insurance brokerage company failed to comply with the notice requirement of its errors and omissions insurance policy, affirming a lower court's dismissal of the company's breach of contract, negligence and bad faith lawsuit against its insurer (Johnson & Bryan, Inc. v. Utica Mutual Insurance Company, et al., No. 17-15337, 11th Cir., 2018 U.S. App. LEXIS 18795).
- Federal Judge: Breach Of Contract Exclusion Bars Errors And Omissions Coverage
GREEN BAY, Wis. - A Wisconsin federal judge on July 5 granted an insurer's motion for summary judgment in its declaratory judgment lawsuit disputing errors and omissions coverage for an underlying breach of contract against its anaerobic digester engineer insured, finding that the policy is not illusory and any coverage provided is barred by the breach of contract exclusion (Crum & Forster Specialty Insurance Company v. GHD Inc. n/k/a DVO Inc., No. 16-1619, E.D. Wis., 2018 U.S. Dist. LEXIS 111827).
- 6th Circuit Affirms No Coverage Ruling For $212M FCA Settlement
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on July 10 affirmed a lower federal court's ruling that denied a bank insured $75 million in insurance coverage for a $212.5 million settlement of an underlying False Claims Act (FCA) investigation into its underwriting of government-backed mortgages (First Horizon National Corporation, et al. v. Houston Casualty Co., et al., Nos. 17-5767 and 5844, 6th Cir., 2018 U.S. App. LEXIS 18684).
- Federal Defamation Coverage Suit Transferred From New Jersey To Illinois Court
NEWARK, N.J. - A New Jersey federal judge on July 12 transferred a coverage dispute arising from underlying defamation claims against an insured and its officers to the U.S. District Court for the Northern District of Illinois, finding that New Jersey has little connection with the operative facts of the case (M. Nasar Qureshi, M.D., PhD v. Navigators Insurance Company, No. 18-1280, D. N.J., 2018 U.S. Dist. LEXIS 116092).
- Coverage Suit Over Claims Club Misappropriated Images On Social Media Terminated
TRENTON, N.J. - A New Jersey federal judge issued an order on July 10 administratively terminating a commercial general liability insurer's declaratory judgment lawsuit challenging coverage for underlying claims that its club owner insured misappropriated images and likenesses of alleged models and actresses without their consent for use in its advertising materials on social media after the insurer announced the underlying parties reached a settlement in principle (Capitol Specialty Insurance Corporation v. 35 Club, LLC, et al., No. 18-03399, D. N.J.).
- 2nd Circuit Affirms $5.8M Judgment In Insured's Favor In Computer Fraud Dispute
NEW YORK - The Second Circuit U.S. Court of Appeals on July 6 affirmed a lower federal court's ruling that a firm's multimillion dollar loss due to a fraudulent wire transfer scheme constituted computer fraud under the company's executive protection insurance policy (Medidata Solutions Inc v. Federal Insurance Company, No. 17-2492, 2nd Cir., 2018 U.S. App. LEXIS 18376).
- Employee's Dishonest Acts Constitute 1 'Occurrence,' New York Justice Says
ALBANY, N.Y. - A New York justice on July 2 held that numerous dishonest acts that were committed by an insured's employee over multiple insurance policy periods constitute one "occurrence" under the business insurance policy's employee dishonesty coverage (Dan Tait, Inc. v. Farm Family Casualty Insurance Company, No. 7910-17, N.Y. Sup., Albany Co., 2018 N.Y. Misc. LEXIS 2686).
- Judge: State Law Claim For Pure Bill Of Discovery Is Preempted By Federal Law
MIAMI - A Florida federal judge on June 22 dismissed a condominium unit owner's lawsuit seeking a pure bill of discovery under Florida law in a flood coverage dispute, finding that the state law claim against the federal flood insurer and an insurance agency is preempted by federal law (Peter Roth v. Wright National Flood Insurance Co., No. 18-21653, S.D. Fla., 2018 U.S. Dist. LEXIS 105810).
- Justice Dismisses Directors, Officers Liability Coverage Suit Over Securities Fraud
NEW YORK - A New York justice on July 7 dismissed a lawsuit alleging that an excess insurer and its parent company engaged in deceptive business practices and breached directors and officers liability insurance policies by failing to provide coverage for underlying securities fraud claims (Chao Jiang v. Ping An Insurance, et al., No. 652260/15, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 2885).
- Excess Insurers Seek To Dismiss Or Stay Pfizer's Delaware Coverage Suit
WILMINGTON, Del. - Two excess insurers have asked the Delaware Superior Court to dismiss with prejudice or stay Pfizer Inc.'s lawsuit seeking coverage for underlying class action claims that its directors and officers made misrepresentations and omissions as to the safety of two COX-2 inhibitor drugs, arguing that their related federal lawsuit is the more appropriate forum (Pfizer Inc. v. Arch Specialty Insurance Company and U.S. Specialty Insurance Company, N18C-01-310, Del. Super.).