Dewey & LeBoeuf Executives: $19.5M Deal With Insurer Lacks 'Supportable Basis'

NEW YORK - Two former executives with bankrupt law firm Dewey & LeBoeuf on May 2 filed a brief objecting to the more than $19.5 million settlement reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis, on grounds that the liquidating trustee has failed...

Judge Partly Rules In Insurer's Favor In Suit Over $2.5M Bankruptcy Judgment

SCRANTON, Pa. - A federal judge in Pennsylvania on May 28 entered summary judgment in part in favor of an errors and omissions insurer in a declaratory judgment action arising from a $2.5 million bankruptcy judgment against its insured, finding that the policy does not cover claims arising under the...

Judge: Tennessee Doesn't Recognize A Cause For Common-Law Bad Faith

NASHVILLE, Tenn. - Saying that Tennessee does not recognize a common-law cause of action against an insurer for bad faith, a federal judge there dismissed an insured's counterclaims for coverage of a leaky hotel roof on May 29 (Westfield Insurance Company v. RLP Partners LLC, et al., No. 3:13-cv...

Judge: Mortgage Company's Failure To Identify Claims Renders Policy, Bond Void

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...

Judge: Insured's Attempt To Implicate Advertising Injury 'Is Simply Too Strained'

SAN FRANCISCO - An insured has failed to demonstrate that the claims made against it in an underlying multidistrict litigation trigger its commercial general liability insurance policy's "advertising injury" provisions, a California federal judge ruled July 19, granting the insurer's...

Calif. High Court Says Unfair Competition Law Can Include Insurance Claims

SAN FRANCISCO - The California Supreme Court said Aug. 1 that an insurance policyholder can bring bad faith and false advertising claims against her insurance company under the state's unfair competition law (UCL; Business and Professions Code Section 17200, et seq.) and that those claims are not...

Insurer Not Required To Cover Bank's Overdraft Settlement, Judge Rules

ATLANTA - Chartis Specialty Insurance Co. does not need to cover Fidelity Southern Corp.'s $1 million settlement of an overdraft fees putative class action, a federal judge in Georgia ruled Aug. 7, finding that the settlement was uninsurable because it is restitution (Fidelity Southern Corp. v. Chartis...

Federal Judge Finds For Insurer In Suit Seeking Mortgage Recording Coverage

MINNEAPOLIS - A federal judge in Minnesota on Aug. 12 entered judgment in favor of an insurer in a credit union's suit seeking coverage for two delinquent loans three days after finding that it is unambiguous that no other entity gained a superior security interest as a result of the credit union's...

Exclusion Bars Coverage Of Suit Against Bank Executives, Federal Judge Says

GAINESVILLE, Ga. - The St. Paul Mercury Insurance Co. is under no duty to cover a suit the Federal Deposit Insurance Corp. brought against former executives of the failed Community Bank & Trust (CB&T) due to the bank's directors and officers policy's insured vs. insured exclusion, a federal...

Ill. Federal Judge Dismisses Antitrust Claims Against Health Insurer, Hospital

EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 26 dismissed antitrust claims brought by an outpatient surgery center against a health insurance company and a corporation owning multiple hospitals in Illinois, holding that the plaintiff failed to properly show a relevant market (Marion Healthcare...

Judge: Legal Basis For Insurer's Competition Law Claims Lacking

SAN FRANCISCO - Rules governing bar members' conduct cannot form the basis of California unfair competition law (UCL) claims for unlawful conduct, and an insurer fails to tether the challenged conduct to any constitutional, statutory or regulatory provision for its unfair-prong claim, a federal judge...

California Top Court Remands Competition Law-Insurance Code Grant-And-Hold Cases

LOS ANGELES - The California Supreme Court on Sept. 11 dismissed and remanded two California unfair competition law (UCL)-insurance code interplay cases, according to its docket. The court originally issued both cases grant-and-hold status pending the outcome of Zhang v. Superior Court (No. S178542)...

Insurer: U.S. High Court Must Vacate; Bankruptcy Courts Lack Judicial Power

WASHINGTON, D.C. - In a brief made available on Sept. 16, the Executive Benefits Insurance Agency (EBIA) argues that the U.S. Supreme Court should vacate a ruling by the Ninth Circuit U.S. Court of Appeals because Article III of the U.S. Constitution does not permit the exercise of the judicial power...

Insurer Must Show Why Former Bank Execs Shouldn't Be Dismissed From Suit

PHOENIX - In a show-cause order, a federal judge in Arizona on Sept. 13 gave Progressive Casualty Insurance Co. two weeks to show why former Community Bank of Arizona (CBA) directors and officers should not be dismissed from the insurer's declaratory suit contesting the insurer's coverage of...

High Court Hears Oral Argument In Stanford Ponzi Scheme-Related Cases

WASHINGTON, D.C. - Attorneys for Latin American investors in Stanford International Bank (SIB) and SIB's insurance brokers and lawyers asked the U.S. Supreme Court on Oct. 7 to determine whether the Securities Litigation Uniform Standards Act (SLUSA) and the Securities Exchange Act of 1934 preclude...

Judge Dismisses Couple's Federal Claims Over Force-Placed Flood Insurance

MONTGOMERY, Ala. - A federal judge in Alabama on Oct. 17 dismissed a couple's claims that a bank and a loan servicer violated the Real Estate Settlement Procedures Act (RESPA) and Fair Debt Collection Practices Act (FDCPA) when obtaining force-placed flood insurance for their property after finding...

Judge Dismisses Class Action Alleging Scheme Involving Forced-Placed Insurance

MADISON, Wis. - A Wisconsin federal judge on Oct. 25 dismissed a class action lawsuit alleging that mortgage lenders and insurers fraudulently force-placed hazard insurance policies (Colleen Decambaliza v. QBE Holdings Inc., et al., No. 13-cv-286-bbc, W.D. Wis.; 2013 U.S. Dist. LEXIS 153392).

Panel: Professional Services Exclusion Bars Coverage For Claims Against Broker

NEW YORK - The Second Circuit U.S. Court of Appeals on Nov. 21 affirmed a lower federal court's ruling that underlying claims against a securities broker-dealer insured and its president are precluded from coverage by a professional services exclusion in a directors and officers and private company...

Judge Refuses To Certify Class Over Force-Placed Hazard, Flood Insurance

SACRAMENTO, Calif. - A federal judge in California on Dec. 11 refused to certify a class for nationwide borrowers and subclasses for California and New York consumers over SunTrust Mortgage Inc.'s purchase of force-placed hazard and flood insurance policies, finding that calculating the replacement...

California Federal Judge Remands Reimbursement Suit, Finds No Preemption Exists

SAN JOSE, Calif. - A California federal judge on Dec. 16 remanded a reimbursement dispute to state court, holding that the Employee Retirement Income Security Act did not preempt the state law claims (Bay Area Surgical Management v. United Healthcare Insurance Co., et al., No. 13-2512, N.D. Calif.; 2013...

Federal Judge Sends Question On Bank's Policy To State Court

SIOUX FALLS, S.D. - A federal judge in South Dakota on Dec. 30 certified to the South Dakota Supreme Court a question of whether a bank's financial institution bond with an insurer is a "surety contract" (First Dakota National Bank v. BancInsure Inc., No. 12-4061, D. S.D.; 2013 U.S. Dist...

11th Circuit Rejects Cross-Appeal In Bank Insurance Coverage Case

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 7 dismissed St. Paul Mercury Insurance Co.'s cross-appeal in a dispute regarding whether it has to cover suits brought by the Federal Deposit Insurance Corp. against a failed bank's directors and officers, determining that St. Paul does...

Bank's Loss From Investment Scheme Covered Under Bond, Federal Judge Rules

ST. PAUL, Minn. - A bank insured's losses arising from its employees' involvement in an e-mail-based investment scam are covered under a financial institution bond, a Minnesota federal judge ruled Jan. 10 (Avon State Bank, Plaintiff, v. BancInsure Inc., No. 12-2557 $(RHK/LIB$), D. Minn.; 2014...

Creditor Of Solar Energy Company: Trustee's Deal With Insurer Should Be Denied

WILMINGTON, Del. - A creditor of bankrupt alternative energy company Abound Solar Manufacturing LLC on Jan. 22 moved in the U.S. Bankruptcy Court for the District of Delaware to oppose the trustee's motion to approve a settlement with the company's insurer for $2.2 million that would resolve...

Panel Rules Trustee Cannot Bring Claims Against Title Insurer Individually

LOS ANGLES - A California appeals panel on Jan. 21 ruled that because a trustee was not a party to a title insurance policy in his individual capacity, he was able to bring claims against the insurer only in his capacity as a trustee, not individually (Bruce T. Mulhearn, et al. v. Lawyers Title Insurance...