- Volume 32, Issue #38
- Bad Faith, Punitive Damages Claims Survive Dismissal In Contamination Coverage Suit
FRESNO, Calif. - Claims for bad faith and punitive damages alleged against an insurer in an environmental contamination coverage suit can move forward, a California federal judge said Aug. 1 after determining that the insured has sufficiently alleged facts in support of the claims (City of Fresno v. Tokio Marine Specialty Insurance Co., No. 18-504, E.D. Calif., 2018 U.S. Dist. LEXIS 129224).
- Judge: Estate Can Pursue Claims Against Johns-Manville Insurance Broker
NEW YORK - The representative for future asbestos claimants in Johns-Manville Corp.'s landmark Chapter 11 case did not adequately represent a holder of nonderivative claims against the debtor's insurance broker, so an asbestos claimant's estate can proceed with its state court action against the broker, a New York federal judge held July 27 in reversing a bankruptcy court ruling (The Bogdan Law Firm v. Marsh USA, Inc., No. 1:18-cv-01228, S.D. N.Y., 2018 U.S. Dist. LEXIS 126962).
- Insurer Seeks Conference Before Filing Motion To Arbitrate Reinsurers' Claims
NEW YORK - An insurer in a letter to a New York federal court on July 19 asks for a pre-motion conference ahead of its motion to stay and compel arbitration of a declaratory judgment lawsuit brought by two reinsurers regarding claims asserted under facultative reinsurance contracts for losses of $2.5 million (Continental Insurance Company of New Jersey, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 18-4715, S.D. N.Y.).
- No Coverage Owed For Water Damage, D.C. Circuit Panel Says In Affirming
WASHINGTON, D.C. - An insurer has no duty to cover water and mold damages in an insureds' beach house because the insureds left the home for more than 72 hours and failed to turn off the water supply to the home as required by the policy, the District of Columbia U.S. Circuit Court of Appeals said July 31 in affirming a district court's ruling (Vasilli Katopothis, et al. v. Windsor-Mount Joy Mutual Insurance Co., et. al., No. 16-7132, D.C. Cir., 2018 U.S. App. LEXIS 21108).
- Judge Grants In Part Dismissal Of Breach Of Contract Suit Against Insurer
FORT MYERS, Fla. - A Florida federal judge on Aug. 6 granted in part an insurer's motion to dismiss an insured's breach of contract case but allowed an insured leave to amend (Marram Corp. v. Scottsdale Insurance Co., No. 18-204, M.D. Fla., 2018 U.S. Dist. LEXIS 131532).
- No Coverage Owed For Deteriorating Foundation Walls, Federal Judge Says
NEW HAVEN, Conn. - No coverage is owed to insureds seeking coverage for damages to their home's foundation walls caused by a chemical reaction in the concrete used in the foundation because the insureds failed to prove that a collapse of the foundation will occur in the foreseeable future, a Connecticut federal judge said July 31 (Christopher D. Lester, et al. v. Liberty Mutual Fire Insurance Co., No. 16-909, D. Conn., 2018 U.S. Dist. LEXIS 127711).
- Judge Dismisses 64 Out Of Insurer's 86 Claims Over Defective Clothes Dryers
ALLENTOWN, Pa. - In a dispute over allegedly defectively manufactured clothes dryers, a Pennsylvania federal judge on Aug. 3 severed each of an insurer's 86 claims and dismissed 64 claims over which the court lacks subject matter jurisdiction (Allstate Insurance Co. v. Electrolux Home Products, No. 18-00699, E.D. Pa., 2018 U.S. Dist. LEXIS 130241).