Mealey's Insurance - Insurer's Refusal To Settle Does Not Constitute Bad Faith, Judge Rules

LAS VEGAS - An insurer did not act in bad faith by failing to accept a settlement offer within the limits of an insured's bodily injury provision for her automobile insurance policy for another driver injured in an auto accident, a federal judge in Nevada ruled Aug. 19, granting summary judgment...

Mealey's Insurance - Summary Judgment Not Proper In Insurance Bad Faith Suit, Judge Rules

PHOENIX - Partial summary judgment in an insurance bad faith lawsuit is not warranted because an insurer failed to show that it was prejudiced and because a jury "could reasonably find that [the insurer] acted unreasonably and knew it," a federal judge in Nevada ruled in an opinion made available...

Mealey's Insurance - Judge Dismisses Insurance Company's Unjust Enrichment Claim In Fraud Suit

PHILADELPHIA - A federal judge in Pennsylvania on Aug. 19 dismissed with prejudice an insurance company's unjust enrichment claim against a physician-owned surgical facility and its management companies after finding that it failed to state a claim upon which relief could be granted, but also allowed...

Mealey's Insurance - Florida Panel Affirms Ruling In Insurer's Favor In Hurricane Wilma Coverage Dispute

WEST PALM BEACH, Fla. - A Florida appeals panel on Aug. 20 held that insureds failed to present any evidence rebutting the presumed prejudice their insurer suffered as a result of their untimely proof of loss of their Hurricane Wilma damage, affirming a lower court's ruling in favor of the insurer...

Mealey's Insurance - Calif. Federal Judge Denies Motion To Dismiss, Finds Evidence Supports Claims

SAN FRANCISCO - A California federal judge on Aug. 19 denied a disability insurer's motion to dismiss a claimant's suit on the basis that the claimant adequately pleaded facts in support of her claims against the insurer (Karen Alberts v. Liberty Life Assurance Company of Boston, No. 14-01587...

Mealey's Insurance - Denial Of Benefits Was Not Arbitrary Or Capricious, Michigan Federal Judge Says

DETROIT - A disability insurer's denial of long-term disability benefits was not arbitrary or capricious because the insurer properly relied on the available medical evidence in reaching its decision, a Michigan federal judge said Aug. 18 (Mae-Lyn DeBoard v. Liberty Life Assurance Company of Boston...

Mealey's Insurance - None Of Court's Reasons For Granting New Trial Was Proper, Panel Says In Reversal

HOUSTON - A Texas appeals panel on Aug. 21 demanded that a lower court vacate its order granting insureds' motion for new trial in a Hurricane Ike coverage dispute and enter judgment on a jury's verdict awarding $400,000 in damages to the insureds (In Re United Services Automobile Association...

Mealey's Insurance - Judge: No Directors, Officers Liability Coverage For Bank's Lawsuit Alleging Scheme

ALEXANDRIA, Va. - A directors and officers liability insurer owes no coverage for a bank's underlying lawsuit alleging that an insured engaged in a fraudulent conveyance to avoid paying debts to a bank after defaulting on loans, a Virginia federal judge ruled Aug. 19, granting the insurer's motion...

Mealey's Insurance - Insureds' Faulty Work That Led To Water Damage Is Not Covered, 7th Circuit Affirms

CHICAGO - A developer's shoddy workmanship that led to water damage to a condominium complex is not covered by the developer's commercial lines insurance policies, the Seventh Circuit U.S. Court of Appeals affirmed Aug. 21, also finding that the alleged damage to residents' personal property...

Mealey's Insurance - 'Prior Work' Exclusion Bars Insurance Coverage For Defects Suit, Panel Says

SANTA ANA, Calif. - A "prior work" exclusion precludes coverage under a subcontractor's commercial general liability insurance policy for an underlying construction defects action, a California appeals panel affirmed Aug. 22 (Bann-Shiang Liza Yu v. Landmark American Insurance Co., No. G048182...

Mealey's Insurance - Judge: Employee's Refusal To Testify Does Not Doom Company's Lawsuit

KALAMAZOO, Mich. - A federal judge in Michigan on Aug. 22 denied an insurance company's motion for summary judgment in a coverage dispute lawsuit after finding that the refusal of a plaintiff company employee to testify during her deposition could not be justifiably imputed against the plaintiff...

Mealey's Insurance - Majority Refuses To Rehear Forum-Selection Dispute Arising From Hurricane Claim

NEW ORLEANS - A Louisiana Supreme Court majority on Aug. 25 refused to reconsider its ruling that forum-selection clauses are not violative of Louisiana public policy, standing by its reversal of a lower court's finding that overruled an exception of improper venue in a dispute over a consulting...

Mealey's Insurance - Insured Urges Texas High Court To Find EPA Action Constitutes A Suit

AUSTIN, Texas - The Texas Supreme Court should follow majority rule and find that an administrative action initiated by the U.S. Environmental Protection Agency constitutes a lawsuit as that term is defined under the insurance policies at issue, an insured argues in an Aug. 22 brief (McGinnes Industrial...

Mealey's Insurance - Psychiatrist Sentenced To 86 Months, Ordered To Pay $43.5M For Health Care Fraud

BATON ROUGE, La. - A federal judge in Louisiana sentenced a psychiatrist to 86 months in prison and ordered him to pay $43.5 million in restitution for his role in a $258.5 million health care fraud scheme, the U.S. Department of Justice announced Aug. 25 (United States of America v. Zahid Imran, M.D...

Mealey's Insurance - Federal Judge Trims Claims In Insurance Bad Faith Lawsuit

SCRANTON, Pa. - A federal judge in Pennsylvania dismissed certain claims in an insurance bad faith lawsuit on Aug. 25, ruling that Pennsylvania law does not allow for a plaintiff's contractual bad faith claim to stand alone (Kurt Zeglen v. Northwestern Mutual Life Insurance Co., No. 14-0173, M.D...

Mealey's Insurance - Judge Finds For Insured On Insurer's Counterclaims In Medical Malpractice Dispute

CHARLESTON, W.Va. - A West Virginia federal judge on Aug. 25 ruled in favor of a doctor insured on an insurer's counterclaims in a medical malpractice coverage dispute (Emmanuel O. Soyoola v. Oceanus Insurance Co., No. 2:13-cv-08907, S.D. W.Va.; 2014 U.S. Dist. LEXIS 117834).

Mealey's Insurance - Insured's Insurance Bad Faith Claim Is Time-Barred, Federal Judge Rules

SACRAMENTO, Calif. - A federal judge in California on Aug. 22 dismissed an insured's insurance bad faith lawsuit against her automobile insurer, ruling that the insured's claims are time-barred by the statute of limitations on such claims (Jenice Burkitt v. Metlife Auto & Home Metropolitan...

Mealey's Insurance - Third Party Cannot Bring Bad Faith Claim Against Insurer, Judge Rules

DALLAS - A federal judge in Texas on Aug. 26 partially dismissed a third-party counterclaimant's claims for violation of the Texas Insurance Code and for insurance bad faith, ruling that dismissal is proper because the counterclaimant lacks standing to bring the claims as a third party (Companion...

Mealey's Insurance - Judge: Business Enterprise Exclusion Bars Coverage For Fraud, Malpractice Suit

GRAND RAPIDS, Mich. - A lawyers professional liability insurance policy's business enterprise exclusion precludes coverage for an underlying lawsuit alleging fraud, breach of fiduciary duty, conversion, legal malpractice and vicarious liability against an attorney insured, a Michigan federal judge...

Mealey's Insurance - California Panel` Allows Warrantless Searches As Part Of Probation For Fraud

SACRAMENTO, Calif. - A California appeals panel on Aug. 26 affirmed a trial court's ruling requiring a woman who pleaded no contest to falsifying paperwork to receive unemployment insurance benefits to be subject to warrantless searches and seizures as part of her probation, ruling that the searches...

Mealey's Insurance - 2nd Circuit Affirms That New York Law Governs Reinsurance Case

NEW YORK - A Second Circuit U.S. Court of Appeals panel in an unpublished Aug. 27 opinion affirmed a lower court decision that Illinois law applies to a late notice reinsurance billing dispute and, therefore, that the reinsurer did not have to show prejudice to refuse payment (AIU Insurance Co. v. TIG...

Mealey's Insurance - Insurer Had Reasonable Basis To Deny Coverage, Judge Says, Rejects Bad Faith Claim

RENO, Nev. - A Nevada federal judge on Aug. 26 granted an insurer's motion for summary judgment on an insured's claim for tortious breach of the implied covenant of good faith and fair dealing, leaving only the breach of contract claims to survive in a coverage dispute over an underlying Employee...

Mealey's Insurance - Panel: Dispute As To Propriety Of Policy Cancellation Does Not Involve Insurer

INDIANAPOLIS - An Indiana appellate panel on Aug. 27 rejected a nurse practitioner insured's contention that her insurer was legally responsible for the alleged improper cancellation of her professional liability policy, reversing and remanding with instructions to grant the insurer's motion...

Mealey's Insurance - Judge Significantly Trims Claims In Insurance Bad Faith Suit

ATLANTA - A federal judge in Georgia on Aug. 26 granted summary judgment on a number of claims brought by insureds who alleged that their insurer, among other things, breached its contract and acted in bad faith in failing to provide coverage for damage sustained to their home due to a kitchen fire ...

Mealey's Insurance - No Coverage For Exonerated Criminal Defendant's Suit Disputing Doctor's Testimony

JACKSON, Miss. - A lawsuit brought by an exonerated criminal defendant over testimony that a doctor insured gave as an expert witness is not covered under the doctor's medical malpractice insurance policy, the Mississippi Supreme Court affirmed Aug. 28 (Dr. Steven Hayne v. The Doctors Company, et...