ST. LOUIS - A Missouri federal judge on Feb. 27 denied defendants' motion to dismiss a dispute over prescription drug rebates but granted a motion to transfer the case to another federal court (Express Scripts Inc. v. Jefferson Health System Inc., et al., No. 13-379, E.D. Mo.; 2014 U.S. Dist. LEXIS 25057).
KANSAS CITY, Kan. - BancInsure Inc. does not have to cover a suit the Federal Deposit Insurance Corp. filed against former directors of Columbian Bank and Trust Co. because coverage of the FDIC's underlying claims is excluded from the bank's policy, a federal judge in Kansas ruled Feb. 27 (BancInsure Inc. v. Carl L. McCaffree, et al., No. 12-2110, D. Kan.; 2014 U.S. Dist. LEXIS 24941).
SANTA ANA, Calif. - No construction defect claim was reported timely under a claims-made-and-reported insurance policy, a California appeals panel ruled Feb. 27, affirming the entry of summary judgment in favor of an insurer on an assignee's insurance bad faith claim (Bann-Shiang Liza Yu v. Century Surety Co., No. G048427, Calif. App., 4th Dist., Div. 3; 2014 Cal. App. Unpub. LEXIS 1411).
ABINGDON, Va. - A Virginia federal judge on Feb. 26 refused to reconsider an order that in part stayed an insurer's coverage action with regard to whether there is a duty to indemnify an insured's alleged faulty work that caused damage to other property (Nautilus Insurance Co. v. Strongwell Corp., No. 12-00038, W.D. Va.; 2014 U.S. Dist. LEXIS 24608).
LOUISVILLE, Ky. - An insured failed to assert claims against an insurance agent for breach of contract, negligence, bad faith, and violation of the Kentucky Unfair Claims Settlement Practices Act, Kentucky Revised Statutes Section 304.12-230 (UCSPA), a Kentucky federal judge ruled Feb. 27 (Chicago Motors LLC d/b/a Speed Auto Sales v. Apex Insurance Agency International Inc. and State National Insurance Company Inc., No. 13-00356, W.D. Ky.; 2014 U.S. Dist. LEXIS 25441).
TRENTON, N.J. - A federal judge in New York found Feb. 27 that a party to a retrocession reinsurance agreement is entitled to payment of claims that were properly and timely brought to its retrocessional reinsurer (Munich Reinsurance America, Inc. v. American National Insurance Company, No. 09-cv-06435, D. N.J.; 2014 U.S. Dist. LEXIS 25078).
ANNAPOLIS, Md. - The Court of Special Appeals of Maryland on Feb. 28 found that underlying claims against a light designer and manufacturer insured triggered the "advertising injury" coverage under two of its commercial general liability insurance policies, reversing and remanding a lower court's ruling in favor of the insurers (Blackstone International LTD., et al. v. Maryland Casualty Co., et al., No. 2302, September Term, 2012, Md. App.; 2014 Md. App. LEXIS 17).
CLEVELAND - Because a plaintiff was not a named insured on the property coverages section of a policy covering an apartment building, he was not entitled to coverage for damage related to a roof collapse, an Ohio appellate panel determined Feb. 27, affirming a lower court's grant of summary judgment to the insurer (Michael A. Priore v. State Farm Fire & Casualty Co., et al., No. 99692, Ohio App., 8th Dist.; 2014 Ohio App. LEXIS 681).
NEW YORK - A reinsurer argued against confirmation of an arbitration award in a federal court in New York on Feb. 27, saying it had already complied with the award (American Home Assurance Company v. Employers Insurance Company of Wausau, No. 13-cv-05169, S.D. N.Y.).
OMAHA, Neb. - The Eighth Circuit U.S. Court of Appeals on Feb. 28 concluded that a student cheerleader was injured during a "practice session" under the terms of a university's insurance policy, affirming a lower federal court's ruling that coverage was owed for the injury (Wesley Patterson v. Mutual of Omaha Insurance Co., a Nebraska Corporation, No. 12-3838, 8th Cir.; 2014 U.S. App. LEXIS 3813).
NEW ORLEANS - Relying on answers provided by the Texas Supreme Court, the Fifth Circuit U.S. Court of Appeals on Feb. 26 vacated an entry of summary judgment to an insurer regarding denial of coverage based upon a contractual liability exclusion and remanded the case for further proceedings, reserving to the parties any claims, defenses and arguments other than those related to the contractual liability exclusion (Ewing Construction Company Inc. v. Amerisure Insurance Co., No. 11-40512, 5th Cir.; 2014 U.S. App. LEXIS 3688).
NEW ORLEANS - A federal judge in Louisiana on Feb. 27 granted a motion to dismiss filed by the Federal Deposit Insurance Corp., as the receiver for a failed bank (FDIC-R), in a suit alleging that the FDIC and others caused a consumer to lose $84,000 by allowing funds to be fraudulently transferred from his account (Joseph Grubaugh v. Central Progressive Bank, et al., No. 13-3045, E.D. La.; 2014 U.S. Dist. LEXIS 25158).
CHARLESTON, W.Va. - Per a lease agreement, a railway was an additional insured on its lessee's commercial umbrella policy, a West Virginia federal judge found Feb. 26, ruling that the railway was entitled to coverage under the policy for lawsuits related to a derailment (Norfolk Southern Railway Co. v. National Union Fire Insurance of Pittsburgh, Pa., et al., No. 2:12-cv-05183, S.D. W.Va.; 2014 U.S. Dist. LEXIS 24092).
NEW YORK - No coverage is owed to an insured seeking coverage for underlying environmental pollution claims related to one of the insured's facilities in New York because the policies' pollution exclusions bar coverage, a New York federal judge said Feb. 27 (Travelers Indemnity Co., et al. v. Northrop Grumman Corp., et al., No. 12-3040, S.D. N.Y.; 2014 U.S. Dist. LEXIS 25194).
KANSAS CITY, Kan. - A directors and officers insurance policy's "insured v. insured" exclusion unambiguously precludes coverage for the Federal Deposit Insurance Corp.'s (FDIC-R) gross mismanagement claims against a bank's former directors, a Kansas federal judge ruled Feb. 27 (BancInsure Inc. v. Carl L. McCaffree, et al., No. 12-2110-KHV, D. Kan.; 2014 U.S. Dist. LEXIS 24941).
BOSTON - A First Circuit U.S. Court of Appeals panel affirmed a lower court decision on Feb. 26 and said that the preclusive effect of a prior arbitration is for the arbitrators to determine, not the court (Employers Insurance Company of Wausau, et al. v. OneBeacon American Insurance Company, et al., No. 13-1913, 1st Cir.; 2014 U.S. App. LEXIS 3613).
BOSTON - A Massachusetts appeals panel on Feb. 24 affirmed a lower court's ruling that an insurance policy's prior acts exclusion precludes coverage for an underlying legal malpractice lawsuit against an attorney insured (Joyce Hurley v. Elizabeth Comproni, et al., No. 13-P-974, Mass. App.; 2014 Mass. App. Unpub. LEXIS 216).
TRENTON, N.J. - A New Jersey federal judge on Feb. 25 determined that genuine issues of material fact exist regarding whether an environmental insurance policy was intended to cover one of the parties included in a settlement agreement or whether the entity was only a third-party beneficiary to the policy (Indian Harbor Insurance Co. v. NL Environmental Management Services Inc. et al., No. 13-1889, D. N.J.; 2014 U.S. Dist. LEXIS 23240).
MADISON, Wis. - A reinsurer told a federal court in Wisconsin on Feb. 26 that a dispute does not revolve around the follow-the-fortunes principle but rather around the way a reinsured has calculated the amounts it is allegedly owed (Employers Insurance Company of Wausau v. R&Q Reinsurance Company, No. 13-cv-00709, W.D. Wis.).
TRENTON, N.J. - A New Jersey federal judge on Feb. 26 denied an insurer's motion to dismiss a declaratory judgment and breach of contract lawsuit seeking coverage for damage caused by Hurricane Sandy, finding that the insured has offered evidence that could potentially establish that the insurer's application of the policy's Named Storm deductible was improper (AFP 104 Corp. v. Columbia Casualty Co., No.: 13-4077 [PGS][LHG], D. N.J.; 2014 U.S. Dist. LEXIS 24215).
RICHMOND, Va. - While acknowledging that "a different fact-finder may have come to a contrary conclusion" than a district court judge who found that the vice president of a "scareware" software maker was individually liable for deceptive advertising under the Federal Trade Commission Act (FTCA), a Fourth Circuit U.S. Court of Appeals panel on Feb. 25 found no clear error in the lower court's judgment (Federal Trade Commission v. Kristy Ross, individually and as an officer of Innovative Marketing Inc., No. 12-2340, 4th Cir.; 2014 U.S. App. LEXIS 3476).
RICHMOND, Va. - A Fourth Circuit U.S. Court of Appeals panel on Feb. 21 held that a relator who sued his former employer for allegedly filing false Medicare and Medicaid claims failed to allege that the defendants made a false statement or that they acted with the necessary scienter. The appeals court also affirmed that the lower court did not abuse its discretion in denying the relator's request to file a third amended complaint (United States ex rel. Barry Rostholder v. Omnicare Inc., et al., No. 12-2431, 4th Cir.; 2015 U.S. App. LEXIS 3269).
GALVESTON, Texas - Texas insureds' foundation damages are not covered under a standard flood insurance policy (SFIP), a Texas federal judge ruled Feb. 25, granting the insurer's motion for summary judgment in a dispute arising from Hurricane Ike damage (Mike Armstrong, et al. v. Fidelity National Property and Casualty Insurance Co., No. G-10-202, S.D. Texas; 2014 U.S. Dist. LEXIS 23508).
TRENTON, N.J. - An insured whose home was damaged by Superstorm Sandy has failed to make sufficient allegations that his insurer breached its duty to act in good faith, a New Jersey federal judge ruled Feb. 21, finding that general allegations that the insurer acted unreasonably did not support his claim (Edmund Beekman v. Excelsior Insurance Co., et al., No. 3:14-CV-00363, D. N.J.; 2014 U.S. Dist. LEXIS 21864).
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Feb. 24 affirmed a lower federal court's finding that an insurer breached its contract when it failed to pay an insured's claim seeking coverage for the theft of $354,000 in video game consoles (W.W. Rowland Trucking Co. Inc. v. Max America Insurance Co., No. 13-20341, 5th Cir.; 2014 U.S. App. LEXIS 3378).