NEW ORLEANS - A Louisiana insured failed to demonstrate that he provided his federal flood insurer a sworn proof of loss for flood damage caused by Tropical Storm Lee, a Louisiana federal judge ruled July 16, granting the insurer's motion for summary judgment (Glenn J. Hughes Sr. v. American National Property & Casualty Co., No. 12-1527 SECTION "C"$(1$), E.D. La.; 2013 U.S. Dist. LEXIS 99071).
HONOLULU, Hawaii - A pollution liability insurer is obligated to reimburse $241,392.87 to a commercial general liability (CGL) insurer for costs incurred in defending underlying lawsuits arising out of damages from construction work, a Hawaii federal judge ruled July 15 (Gemini Insurance Co. v. Kukui'ula Development Company (Hawaii) LLC, et al., No. 10-00637, D. Hawaii; 2013 U.S. Dist. LEXIS 98281).
SAN FRANCISCO - An insurer has no duty to provide coverage to its insured for sexual molestation claims because the policy's sexual molestation exclusion clearly precludes coverage, the Ninth U.S. Court of Appeals said July 15 (Allstate Indemnity Co. v. Nicole Johnson Riverson et al., No. 12-35529, 9th Cir.; 2013 U.S. App. LEXIS 14279).
NEW YORK - Fact issues exist as to whether a broker qualified as an employee of an insured, a New York appeals panel ruled July 16 in a coverage dispute over the insured's alleged $141 million loss under fidelity bonds (New Hampshire Insurance Co., et al. v. MF Global Inc., Nos. 9736-9737-9738-9739-601621/09, 9740, N.Y. Sup., App. Div.; 1st Dept.; 2013 N.Y. App. Div. LEXIS 5206).
PHILADELPHIA - A federal judge in Pennsylvania confirmed an arbitration award on June 15, finding that the award was rational and that the arbitration panel did not exceed its power (Platinum Underwriters Bermuda, Ltd. v. Excalibur Reinsurance Corporation, No. 12-mc-00070, E.D. Pa.; 2013 U.S. Dist. LEXIS 98671).
LAS VEGAS - A commercial general liability insurer properly denied its duty to defend an insured in a construction defects case because the alleged property damage occurred prior to the policy period, a Nevada federal judge held July 12, also finding that the policy's "other insurance" provisions applied (Northern Insurance Company of New York v. National Fire & Marine Insurance Co., No. 11-01672, D. Nev.; 2013 U.S. Dist. LEXIS 97563).
SAN DIEGO - A federal judge in California presiding over an insurance bad faith case on July 15 refused to adopt a magistrate judge's report and recommendation to impose terminating sanctions against a plaintiff company over its delayed production of amended discovery responses, ruling that the company did not engage in bad faith and that the delayed production did not prejudice defendant Travelers Property Casualty Company of America (Fay Avenue Properties LLC, et al. v. Travelers Property Casualty Company of America, et al., No. 12-cv-02389-GPC-WVG, S.D. Calif.; 2013 U.S. Dist. LEXIS 98991).
HOUSTON - A Texas appeals panel on July 16 found that an endorsement in primary and excess directors and officers liability insurance policies precludes insurers from denying coverage for underlying lawsuits arising from a fraudulent investment scheme involving thoroughbred breeding mare leases, reversing and remanding a lower court (Gastar Exploration Ltd v. U.S. Specialty Insurance Co., et al., No. 14-12-00118-CV, Texas App., 14th Dist.; 2013 Tex. App. LEXIS 8738).
NEW HAVEN, Conn. - A federal judge in Connecticut on July 12 granted a motion to dismiss and compel arbitration, holding that a valid arbitration agreement exists between a reinsurer and a nonsignatory to a reinsurance agreement (Trenwick America Reinsurance Corporation v. Unionamerica Insurance Company Limited, No. 13-cv-00094, D. Conn.; 2013 U.S. Dist. LEXIS 97518).
MADISON, Wis. - The Wisconsin Supreme Court on July 12 affirmed and reversed in part summary judgment in a dispute involving allegedly defective concrete used to pour driveways and patios, ruling that a contractor's breach of contract claims were viable (United Concrete & Construction Inc. v. Red-D-Mix Concrete Inc., Nationwide Mutual Insurance Co. and Allied Insurance Co., No. 2011AP1566, Wis. Sup.; 2013 Wisc. LEXIS 281).
PITTSBURGH - A Pennsylvania federal judge on July 12 held that even though it was not bad faith for insurers to evenly split underlying defense costs between their insured's two applicable policies, a genuine issue of fact exists as to whether the insurers' delay in allocating might constitute bad faith (National Fire Insurance Company of Hartford, et al. v. Robinson Fans Holdings Inc., et al., No. 2:10-cv-01054, W.D. Pa.; 2013 U.S. Dist. LEXIS 97226).
BALTIMORE - A mortgage company insured's failure to identify underlying claims on an insurance application constitutes a material misrepresentation, omission or concealment that renders a professional liability insurance policy and a mortgage banker's fidelity bond void, a Maryland federal judge ruled July 15, finding that the insurer is entitled to rescission of both the policy and the bond (Prosperity Mortgage Co. v. Certain Underwriters at Lloyd's London, et al., No. GLR-12-2004, D. Md.; 2013 U.S. Dist. LEXIS 98286).
ST. LOUIS - The Federal Emergency Management Agency validly withheld disclosure of flood claim information under an exemption to disclosure under the Freedom of Information Act (FOIA), a Missouri federal judge ruled July 15 (Steve Ehlmann v. United States Department Of Homeland Security, No. 4:12 CV 1392 RWS, E.D. Mo., Eastern Div.; 2013 U.S. Dist. LEXIS 98203).
ORLANDO, Fla. - An auto insurer saw its motion to dismiss third-party claims against it partially denied on July 12 when a Florida federal judge found that disputed issues of material fact made dismissal of a bad faith claim inappropriate (Lorinda Tanaka v. GEICO General Insurance Co., No. 6:11-cv-02002, M.D. Fla.; 2013 U.S. Dist. LEXIS 97628).
ATLANTA - An "occurrence," as the term is used in a standard commercial general liability insurance policy, does not require damage to the property or work of someone other than the insured, the Georgia Supreme Court ruled July 12 (Taylor Morrison Services Inc. v. HDI-Gerling America Insurance Co., No. S13Q0462, Ga. Sup.; 2013 Ga. LEXIS 619).
SAN FRANCISCO - An insurer has no duty to defend its insured against counterclaims as they are currently pleaded in an underlying patent infringement lawsuit, a California federal judge ruled July 12 (Travelers Property Casualty Company of America v. KFx Medical Corporation, No. C 13-00710 JSW, N.D. Calif.; 2013 U.S. Dist. LEXIS 97777).
ST. LOUIS - A Missouri federal judge on July 10 granted an insurer's motion to dismiss a counterclaim filed by a third-party defendant because the defendant has no standing to pursue the claims against the insurer (Evanston Insurance Co. v. Harris Medical Associates LLC, et al., No. 12-1646, E.D. Mo.; 2013 U.S. Dist. LEXIS 96031).
HARTFORD, Conn. - An insurer has no duty to defend its insured against an underlying negligent misrepresentation claim because negligent misrepresentation is not an occurrence under the policy, and the insurer owes no coverage for a first-party mold claim filed by the insured because the policy's limited fungi endorsement does not apply to first-party claims, a Connecticut federal judge said July 12 (Homestead Country Properties LLC v. American Modern Home Insurance Co., No.12-1003, D. Conn.; 2013 U.S. Dist. LEXIS 97919).
SALT LAKE CITY - A Utah federal judge on July 12 denied a professional liability insurer's motion to dismiss a fruit juice distributor insured's counterclaims in the insurer's lawsuit disputing coverage for an underlying putative class action against the insured (Allied World National Assurance Co. v. Mona Vie Inc., et al., No. 2:12cv393DAK, D. Utah, Central Div.; 2013 U.S. Dist. LEXIS 97720).
LAKE CHARLES, La. - Construing the language of an umbrella insurance policy as unambiguously barring recovery of response costs and legal expenses, a U.S. District Court for the Western District of Louisiana judge granted summary judgment July 8 to an insurer sued by the owner of a natural gas well that experienced a blowout that cost $14 million to contain and remediate (Pioneer Exploration v. Steadfast Insurance Co., No. 09-308, W.D. La.; 2013 U.S. Dist. LEXIS 97687).
INDIANAPOLIS - An Indiana federal magistrate judge on July 9 granted an insured's motion to remand an environmental coverage suit after determining that the insurers failed to prove that claims against a nondiverse party could not be sustained (Fore Investments LLC v. The Travelers Indemnity Company of America et al., No. 12-1702, S.D. Ind.; 2013 U.S. Dist. LEXIS 95890).
LYNCHBURG, Va. - An executor of a decedent's estate is not permitted leave to amend her complaint because the equitable remedies of reformation and surcharge are not available against the defendants, who were not fiduciaries under the Employee Retirement Income Security Act, a federal judge in Virginia ruled July 9 on remand (Judy L. Moon, et al. v. BWX Technologies, Inc., et al., No. 6:09-cv-00064, W.D. Va.; 2013 U.S. Dist. LEXIS 95626).
SAN JOSE, Calif. - Insureds failed to allege that an insurer breached its contract or breached its implied covenant of good faith and fair dealing in appointing counsel not allegedly independent for the defense of an underlying construction defect case, a California federal judge ruled July 10 (Park Townsend LLC and GKB Development Co. LLC v. Clarendon America Insurance Co. and DOES 1-500, No. 12-04412, N.D. Calif.; 2013 U.S. Dist. LEXIS 96412).
MIAMI - A Florida appeals panel on July 10 found that a lower court improperly applied the Florida Arbitration Code to "confirm" a $1,058,122.52 appraisal award against an insurer stemming from a Hurricane Wilma claim, reversing and remanding the lower court's ruling against the insurer (Citizens Property Insurance Corporation, etc. v. Mango Hill #6 Condominium Association Inc., No. 3D10-2630, Fla. App., 3rd Dist.; 2013 Fla. App. LEXIS 10974).
NEW YORK - A New York federal judge on July 9 found that the extrinsic evidence does not conclusively eliminate the potential for excess insurance coverage for an underlying copyright infringement lawsuit related to the insured's sale and distribution of "Bratz" dolls and associated merchandise (Lexington Insurance Co., et al. v. MGA Entertainment Inc., No. 12-3677, S.D. N.Y.; 2013 U.S. Dist. LEXIS 96395).