LexisNexis® Legal Newsroom
    Mealey's Insurance - Panel: Damage To Dental Office Caused in Part By Surface Water; No Coverage

    BOSTON - A Massachusetts appeals panel on April 18 affirmed a lower court's finding that there is no genuine dispute of material fact that damage to an insured's dental office was caused in part by surface water and was not covered by an insurance policy (Deborah A. Himelhoch vs. Hartford Casualty Insurance Co., No. 13-P-793, Mass. App.; 2014 Mass. App. Unpub. LEXIS 525).

    Mealey's Insurance - Judge Dismisses Insurer's Coverage Lawsuit Over Construction Defects Claims

    LAS VEGAS - An excess insurer's declaratory judgment action against a primary insurer and their mutual insureds is not ripe, a Nevada federal judge held April 17, dismissing the case (Insurance Company of the State of Pennsylvania v. Gemini Insurance Co., et al., No. 13-02211, D. Nev.; 2014 U.S. Dist. LEXIS 53392).

    Mealey's Insurance - Judge Orders Signatory To Indemnify Surety, Finding No Bad Faith

    FLINT, Mich. - A signatory to an indemnity agreement is obligated to indemnify a surety for amounts it paid under a series of bonds, a Michigan federal judge ruled April 16, finding no merit to the defendant's arguments that he was not a proper party to the agreement or that the surety paid the amounts in bad faith (Lexon Insurance Co. v. Aziz Naser, No. 4:12-cv-13218, E.D. Mich.; 2014 U.S. Dist. LEXIS 52490).

    Mealey's Insurance - S.D. High Court: Insurer's Exclusion For Unknown Continuous Injury Is Not Void

    PIERRE, S.D. - A commercial general liability insurance policy's exclusion for an unknown progressive or continuous injury or damage that occurred before the inception date is not void by public policy, the South Dakota Supreme Court held April 16, affirming summary judgment to an insurer regarding claims for shared defense costs of a mutual insured in an underlying construction defect case (AMCO Insurance Co. v. Employers Mutual Casualty Co. d/b/a EMC Insurance Cos., No. 26797, S.D. Sup.; 2014 S.D. LEXIS 23).

    Mealey's Insurance - North Carolina Federal Judge Says Stay Of Coverage Suit Is Warranted

    WINSTON-SALEM, N.C. - A North Carolina federal judge on April 16 stayed an insurer's suit after determining that the insured justified that a stay is warranted until the underlying personal injury suit is resolved (Pennsylvania Manufacturers Indemnity Co. v. Air Power Inc., et al., No. 13-217, M.D. N.C.; 2014 U.S. Dist. LEXIS 52343).

    Mealey's Insurance - Coverage Owed For Claims Related To Contaminated Seeds, Federal Judge Says

    PORTLAND, Maine - An insured is entitled to a defense for an underlying suit alleging damages caused by contaminated seeds sold by the insured because none of the policy exclusions in the policies at issue bars coverage, a Maine federal judge ruled April 17 (OneBeacon America Insurance Co., et al. v. Johnny's Selected Seeds Inc., No. 12-375, D. Maine; 2014 U.S. Dist. LEXIS 53098).

    Mealey's Insurance - Inconclusive Evidence Prevents Summary Judgment On Bad Faith Claim, Judge Says

    NEW ORLEANS - Although an insurer's compliance with an appraisal award defeated a breach of contract claim against it in a dispute over hurricane damages, a Louisiana federal judge on April 16 declined to grant the insurer summary judgment on an accompanying bad faith claim, holding that further discovery on the insurer's pre-lawsuit actions was necessary to make such a determination (Martin Radosta v. Lexington Insurance Co., No. 2:13-cv-04441, E.D. La.; 2014 U.S. Dist. LEXIS 52644).

    Mealey's Insurance - New York Panel: No Coverage For $3.2M Judgment Against Sports Equipment Company

    ALBANY, N.Y. - A New York appeals panel on April 17 affirmed a lower court's ruling that two insurers have no duty to defend or indemnify a sports equipment company against an underlying $3.2 million judgment stemming from claims that the company tortiously interfered with contract and business relations, conducted unfair and deceptive trade practices and misappropriated trade secrets (Sportsfield Specialties Inc. v. Twin City Fire Insurance Co., et al., No. 516900, N.Y. Sup., App. Div., 3rd Dept.; 2014 N.Y. App. Div. LEXIS 2567).

    Mealey's Insurance - In Restaurant Fire Claim Dispute, Judge Dismisses Bad Faith Claim As Duplicative

    RALEIGH, N.C. - A North Carolina federal judge on April 14 dismissed all of the extracontractual claims in an insurance dispute, finding no evidence of a bad faith failure to settle or unfair and deceptive acts by an insurer (City Grill Hospitality Group Inc. v. Nationwide Mutual Insurance Co., No. 5:12-CV-00610, E.D. N.C.; 2014 U.S. Dist. LEXIS 51215).

    Mealey's Insurance - Insurer Challenges Coverage For 2 Concussion Class Actions Against NHL

    NEW YORK - An insurer filed a lawsuit in New York court on April 15, seeking a declaration as to its duty to defend and indemnify the National Hockey League (NHL) and its Board of Governors against two underlying class actions lawsuits seeking liability for players' concussions (TIG Insurance Co., f/k/a, Transamerica Insurance Co. v. National Hockey League, et al., No. 651162/2014, N.Y. Sup., New York Co.).

    Mealey's Insurance - Federal Judge Lets Building Damages Claim Proceed In Hurricane Isaac Coverage Suit

    NEW ORLEANS - Insureds' proof-of-loss forms coupled with a public adjuster's estimate of their building damage caused by Hurricane Isaac constitute a complete proof of loss that complies with their federal flood insurance policy, a Louisiana federal judge ruled April 15, denying the insurer's motion for summary judgment in part (Alice Young, et al. v. Imperial Fire & Casualty Insurance Co., No. 13-5246 SECTION: "S" $(5$), E.D. La.; 2014 U.S. Dist. LEXIS 51863).

    Mealey's Insurance - 'Formulaic Recitation' Of Bad Faith Elements Is Insufficient, Judge Rules

    LAS VEGAS - A plaintiff in an underinsured motorist (UIM) benefits dispute failed to plead sufficient facts to support his extracontractual claims against his insurer, a Nevada federal judge found April 14, granting the insurer's motion for partial dismissal (Henry Tomkiel v. Hartford Casualty Insurance Co., No. 2:13-cv-01888, D. Nev.; 2014 U.S. Dist. LEXIS 51199).

    Mealey's Insurance - Kodak To Pay MetLife $3.91M To Settle Unpaid Insurance Premium Claims

    NEW YORK - Bankrupt Eastman Kodak Co. on April 15 entered into a stipulation with Metropolitan Life Insurance Co. in the U.S. Bankruptcy Court for the Southern District of New York under which Kodak would pay the insurer $3,917,710.62 for unpaid insurance premium balances (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Insurance - Physician Sues Insurer In Federal Court For Underpaying Claims

    SAN DIEGO - A California physician on April 15 sued his health care provider in federal court for allegedly under-reimbursing his neurosurgeon for two surgeries he underwent for back and leg pain (Michael Keller v. Aetna Health and Life Insurance Co., No. 14-895, S.D. Calif.).

    Mealey's Insurance - Federal Judge Dismisses Subrogated Insurer's Breach Of Warranty Claim

    BOSTON - A subrogated insurer failed to assert a breach of warranty claim against a manufacturer regarding a design defect in a water heater's cold-water connection, a Massachusetts federal judge ruled April 15, dismissing the claim (Fireman's Fund Insurance Co. v. Bradford-White Corp., No. 12-10509, D. Mass.; 2014 U.S. Dist. LEXIS 51833).

    Mealey's Insurance - Coverage For Suit Against Law Firm Barred By 3 Policy Exclusions, Federal Judge Says

    LAS VEGAS - Three policy exclusions in a lawyers professional liability insurance policy preclude coverage for an underlying lawsuit alleging that an attorney, his law firm and his family trust committed malpractice and fraud, breached professional ethics and breached a fiduciary duty, a Nevada federal judge ruled April 14 (Thomas Christensen, et al. v. Darwin National Assurance Co., et al., No. 2:13-cv-00956-APG-VCF, D. Nev.; 2014 U.S. Dist. LEXIS 52069).

    Mealey's Insurance - Insured Must Repay Insurer For Fire Loss Claim, Michigan Federal Judge Determines

    DETROIT - A Michigan federal judge on April 15 ruled that an insured must repay an insurer for payments made on her behalf because the fire loss claim is excluded from coverage and the insured failed to prove that repaying the amount owed to the insurer would be inequitable (Nationwide Mutual Fire Insurance Co. v. Kasey McDermott, No. 12-11863, E.D. Mich.; 2014 U.S. Dist. LEXIS 51548).

    Mealey's Insurance - No Coverage Owed For Sending Of Junk Fax Ads, 11th Circuit Panel Affirms

    ATLANTA - An insurer does not owe coverage to an insured for an underlying suit alleging that the insured sent unwanted fax ads because the policies' exclusion for "sending of materials" is not ambiguous or in violation of Florida law, the 11th Circuit U.S. Court of Appeals said April 15 (Interline Brands Inc., et al. v. Chartis Specialty Insurance Co., f/k/a American International Specialty Lines Insurance Co., No. 13-10025, 11th Cir.; 2014 U.S. App. LEXIS 6945).

    Mealey's Insurance - Firing Of Employee Is Intentional Act; No Coverage Owed, 9th Circuit Affirms

    SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on April 15 held that there is no directors and officers (D&O) liability coverage for underlying allegations that an insured violated California Military and Veterans Code Section 394 and the Uniformed Services Employment and Reemployment Rights Act when it fired an employee (Forest Meadows Owners Assoc. v. State Farm General Insurance Co., No. 12-16073, 9th Cir.; 2014 U.S. App. LEXIS 6993).

    Mealey's Insurance - New Jersey Federal Judge Declines Class Certification In Reimbursement Dispute

    NEWARK, N.J. - A New Jersey federal judge on April 14 denied a renewed motion to certify two classes in a reimbursement lawsuit filed against a health care insurer, a database company and the database's parent company (Darlery Franco v. Connecticut General Life Insurance Co., et al., No. 07-6039, D. N.J.; 2014 U.S. Dist. LEXIS 51138).

    Mealey's Insurance - 1st Circuit Remands; Lender Entitled To Post-Petition Interest From Debtor's Sale

    BOSTON - A panel of the First Circuit U.S. Court of Appeals on April 11 vacated a remand order issued by a bankruptcy appellate panel and ruled that an insurance company that served as a lender for a hotel construction project was entitled to post-petition interest from the date the debtor sold the hotel at a rate of 14.5 percent (The Prudential Insurance of America v. SW Boston Hotel Venture LLC, et al. $(In Re: SW Boston Hotel Venture LLC$), No. 12-9008, Chapter 11, 1st Cir.; 2014 U.S. App. LEXIS 6768).

    Mealey's Insurance - Federal Judge: Fact Issue As To 4th Proof Of Loss Precludes Summary Judgment Ruling

    NEW ORLEANS - There are factual disputes as to the existence, transmission, receipt and sufficiency of a fourth proof of loss seeking additional coverage for Hurricane Isaac damage, a Louisiana federal judge ruled April 14, denying a motion for summary judgment filed by the Federal Emergency Management Agency (FEMA) in an insured's breach of contract lawsuit (Ivory Burks v. State Farm Fire and Casualty Co., et al., No. 13-6490 SECTION "E", E.D. La.; 2014 U.S. Dist. LEXIS 51220).

    Mealey's Insurance - Federal Judge Remands Negligence Case Against Insurer, Insurance Agents

    PHILADELPHIA - A passenger in a vehicle collision did not fraudulently join individual insurance agents for an insurance company in an unfair trade practices and negligence lawsuit involving coverage for the passenger's underlying judgment, a Pennsylvania federal judge held April 14, remanding the case to state court (Patrick Hennessy v. Allstate Insurance Co., et al., No. 13-6594, E.D. Pa.; 2014 U.S. Dist. LEXIS 51066).

    Mealey's Insurance - No Coverage Owed For Cleanup Of Decomposing Body, 3rd Circuit Says

    PHILADELPHIA - An insurer owes no coverage to an insured for the cleanup of a decomposing body in one of its apartment buildings because the policy's seepage and microorganism exclusions clearly preclude coverage, the Third Circuit U.S. Court of Appeal said April 14 (Certain Underwriters at Lloyds of London v. William Creagh et al., No. 13-3541, 3rd Cir.; 2014 U.S. App. LEXIS 6853).

    Mealey's Insurance - Insurer Says Reinsurer's Objection To Judge's Order Brings No New Arguments

    NEW HAVEN, Conn. - An insurer told in a federal court in Connecticut on April 14 that its reinsurer's objection to being ordered to post prepleading security is without merit (Travelers Indemnity Company v. Excalibur Reinsurance Corporation, No. 12-cv-01793, D. Conn.).