- Volume 32, Issue #14
- Federal Judge Denies Motion To Dismiss As It Pertains To Clause In Settlement Agreement
NEW YORK - A New York federal judge on Feb. 6 denied an insured's motion to dismiss as it pertained to the enforcement of a judgment reduction clause in a settlement agreement regarding a number of environmentally contaminated sites because it pertains to the claims at issue in the contribution suit, which has been pending in the New York federal court since 1984 (Olin Corp. v. Lamorak Insurance Co., et al., No. 84-1968, S.D. N.Y., 2018 U.S. Dist. LEXIS 20424).
- Quarry Dust Exposure Coverage Suit Dismissed In Deference To Parallel State Suit
BIRMINGHAM, Ala. - An insurer's suit seeking a declaration that no coverage is owed for underlying claims arising out of exposure to lime quarry dust must be dismissed in deference to the additional insured's suit filed in Alabama state court against the insurer and others because Alabama has a substantial interest in litigating claims in state court, an Alabama federal judge said Feb. 9 (The Charter Oak Fire Insurance Co. v. G&R Mineral Services Inc., et al., No. 17-752, N.D. Ala., 2018 U.S. Dist. LEXIS 21533).
- Justice Allows Tortious Interference Claim Against Insurer's Claims Handler
NEW YORK - In a dispute over an alleged profit arrangement between insurers and reinsurers, an estate's executor established sufficient allegations to move forward with his tortious interference claim against a claims handler for its denial of payment of an underlying $7.1 million asbestos judgment, a New York justice ruled Jan. 24 (Ruby Konstantin v. Certain Underwriters at Lloyd's London, et al., No. 652897/2013, N.Y. Sup., New York Co.).
- Claims Against Insurer Fail; Plaintiffs Failed To Show They Are Third-Party Beneficiaries
OKLAHOMA CITY - The daughter and daughter-in-law of a named insured cannot assert claims for breach of contract and bad faith against an insurer in connection with a coverage claim for water and mold damages within an insured home because the daughter and daughter-in-law failed to prove that they are third-party beneficiaries under the policy at issue, an Oklahoma federal judge said Feb. 6 in granting an insurer's motion to dismiss (Karen Annette Foster-Blackwood, et al. v. Liberty Insurance Corp., No. 17-1146, W.D. Okla., 2018 U.S. Dist. LEXIS 19275).
- Water Leakage, Seepage Excluded Under Homeowners Insurance Policy, Judge Says
MISSOULA, Mont. - The efficient proximate cause of homeowners' loss was repeated seepage or leakage of water over an extended period of time, which is an excluded peril under a homeowners insurance policy, a Montana federal judge ruled Feb. 5 (Tafford and LaRayne Oltz v. Safeco Insurance Company of America, No. 16-124, D. Mont., 2018 U.S. Dist. LEXIS 18743).
- Insureds' Complaint Seeking Coverage For Foundation Damages Dismissed
BRIDGEPORT, Conn. - A Connecticut federal judge on Feb. 8 granted an insurer's motion to dismiss its insureds' amended complaint seeking damages as a result of defective concrete used in their home's foundation after determining that the insureds failed to carry their burden of proving that coverage is afforded under the policy and that the insurer acted in bad faith when it denied their claim (Joseph Mazzarella, et al. v. Amica Mutual Insurance Co., No. 17-598, D. Conn., 2018 U.S. Dist. LEXIS 20737).
- Insurer Required To Cover Damages From 'Collapse,' Magistrate Judge Finds
MIAMI - Finding that "collapse" is not defined in an "all-risk" insurance policy, a Florida federal magistrate judge on Feb. 5 held that an insurer is obligated to cover sagging and falling down ceilings at a condominium complex (Key Biscayne Ambassador Condominium Association Inc. v. Aspen Specialty Insurance Co., No. 16-24564, S.D. Fla., 2018 U.S. Dist. LEXIS 19440).