Mealey's Insurance - Panel: Settlement Is Not An 'Occurrence' Under CGL Insurance Policy

LINCOLN, Neb. - A settlement of construction defects complaints and the subsequent repairs did not arise out of an "occurrence" under a commercial general liability insurance policy, a Nebraska appeals panel held Sept. 9, reversing and remanding the entry of summary judgment in favor of the...

Mealey's Insurance - No Coverage For Defective Part Sold To Orthopedic Implant Manufacturer, Panel Says

TRENTON, N.J. - A party's liability to others for its own faulty work is a matter of warranty and not of insurance coverage, the Appellate Division of the New Jersey Superior Court said Sept. 10 in affirming that an insurer owes no coverage to its insured for a defective part sold to another company...

Mealey's Insurance - Claimant Failed To Timely File Benefits Appeal, Arkansas Federal Judge Determines

LITTLE ROCK, Ark. - Because no genuine issue of material fact exists as to the reasonableness of an insurer's determination that a disability claimant failed to exhaust timely his administrative remedies and that the time for doing so has passed, an Arkansas federal judge on Sept. 9 dismissed the...

Mealey's Insurance - State Law Claims Are Preempted By ERISA, Mississippi Federal Judge Says

GULFPORT, Miss. - A Mississippi federal judge on Sept. 10 dismissed a disability claimant's suit against an insurer after determining that the state law claims alleged in the complaint are preempted by the Employee Retirement Income Security Act (Sheila Smith Foto v. Standard Insurance Co. et al...

Mealey's Insurance - Panel Will Not Vacate Arbitration Award In Professional Liability Coverage Dispute

LOS ANGELES - A California appeals panel on Sept. 12 rejected a law firm insured's appeal to vacate an arbitration award that limited its professional liability insurer's coverage obligation of an underlying malpractice lawsuit to $250,000 (Lawyers' Mutual Insurance Co. v. Law Offices of...

Mealey's Insurance - No Disparagement Alleged; No Business Liability Coverage, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Sept. 10 held that an insured has failed to establish that an underlying complaint alleges disparagement on its face or by reasonable implication, affirming a lower court's ruling that an insurer has no duty to defend its insured against...

Mealey's Insurance - Insurer Is Entitled To Collect More Than $80,000 For Defense Costs, Federal Judge Says

MINNEAPOLIS - An insurer is entitled to collect more than $80,000 from a second insurer that is responsible for one-seventh of the defense costs spent in defending the insured in four underlying benzene-related lawsuits, a Minnesota federal judge said Sept. 12 (Continental Casualty Co. v. National Union...

Mealey's Insurance - Panel Agrees With Referee That Liquidator Properly Calls Policy Reinsurance

HARRISBURG, Pa. - A Pennsylvania Commonwealth Court panel on Sept. 12 found that an insolvent insurer's liquidator correctly determined that a certain policy was reinsurance (Alabama Insurance Guaranty Association v. Reliance Insurance Company in Liquidation, No. 6 REL 2012, Pa. Cmwlth.).

Mealey's Insurance - Corporate Successor Is Liable For Portion Of Cleanup Costs, Panel Says

NEW YORK - A corporate successor to a claimant's former parent company is liable under a veil-piercing theory for a portion of costs incurred in cleaning up coal tar contamination at manufactured gas plant sites in upstate New York, and the claimant's recovery should be reduced to account for...

Mealey's Insurance - Judge: No Coverage For 5 Suits Brought By Purchasers Of Mortgage-Backed Securities

NEW YORK - There is no directors and officers liability coverage for five underlying lawsuits arising out of the securitizations of residential mortgage-backed securities, a New York federal judge ruled Sept. 11 (Nomura Holding America Inc. v. Federal Insurance Co., No. 13-5913, S.D. N.Y.; 2014 U.S....

Mealey's Insurance - Insured's Faulty Work Is Not An 'Occurrence,' Federal Judge Concludes

BIRMINGHAM, Ala. - An insured's faulty workmanship does not constitute an "occurrence" under a commercial general liability insurance policy, an Alabama federal judge ruled Sept. 15, finding that the insurer has no duty to indemnify an underlying settlement (FCCI Insurance Co. v. Capstone...

Mealey's Insurance - Texas High Court To Hear Arguments On BP's Status As Additional Insured

DALLAS - The Texas Supreme Court is scheduled to hear oral arguments on Sept. 16 regarding whether BP Exploration & Production and its affiliates are covered as additional insureds for damages arising out of the Deepwater Horizon drilling rig explosion (In re: Deepwater Horizon, No. 13-0670, Texas...

Mealey's Insurance - Insured's Interpretation Of Her Disability Policy Is 'Unreasonable,' Judge Rules

OMAHA, Neb. - Ruling that an insured's reading of her disability insurance policy is "unreasonable," a federal judge in Nebraska on Sept. 12 granted the insurer's motion for summary judgment with regard to the insured's claims for breach of contract and breach of the implied covenant...

Mealey's Insurance - Texas Panel: Insurer Was Prejudiced By Late Notice Of Wrongful Termination Claim

CORPUS CHRISTI, Texas - A Texas appeals panel on Sept. 11 affirmed a lower court's ruling that an excess insurer was prejudiced by an insured's late notice of an arbitration claim arising from the alleged wrongful termination of a former employee (C.L. Thomas Inc. and Thomas Fuels Lubricants...

Mealey's Insurance - Judge: Bad Faith Claim In Tropical Storm Lee Dispute Is Preempted By Federal Law

ALBANY, N.Y. - A New York federal judge on Sept. 16 dismissed an insured's allegation that its federal flood insurer failed to bargain a Tropical Storm Lee flood claim in good faith, finding that the extracontractual count is preempted by federal law (Southbridge 21 LLC v. The Standard Fire Insurance...

Mealey's Insurance - Federal Judge Dismisses Insurance Bad Faith Claims Against Insurer

ST. LOUIS - A federal judge in Missouri on Sept. 16 dismissed insureds' breach of the covenant of good faith and fair dealing and insurance bad faith claims against their insurer for denial of coverage under their policy because both claims are based solely on the denial of coverage and are, thus...

Mealey's Insurance - Missouri Federal Judge Denies Judgment On Personal Property Claims

ST. LOUIS - A Missouri federal judge on Sept. 16 granted an insurer's motion for summary judgment on an insured's claims pertaining to water damage, mold damage and living expenses but denied the motion on the insured's claims pertaining to reimbursement for water damage to personal property...

Mealey's Insurance - Panel: Court's Bad Faith Ruling Was Within 'Essential Requirements Of Law'

WEST PALM BEACH, Fla. - A Florida state court's decision to abate an insurance bad faith claim against an insurer instead of dismissing it may have caused the insurer "material irreparable harm" by not allowing it to remove the claim to federal court, but it was still proper because the...

Mealey's Insurance - Jury's Determination Of Damages Binding In Bad Faith Lawsuit, Panel Rules

WEST PALM BEACH, Fla. - A Florida court did not err in allowing a jury's determination of damages in a first trial in an ongoing insurance coverage case because the determination was binding on an insurer in an ensuing insurance bad faith trial, a Fourth District Florida Court of Appeals panel ruled...

Mealey's Insurance - Judge Refuses To Reconsider Ruling Sending Malpractice Coverage Issue To Jury

HOUSTON - A Texas federal judge on Sept. 17 refused to reconsider a June 24 ruling that whether a malpractice claim against a law firm insured was foreseeable is a question of fact appropriate for a jury, denying a professional liability insurer's motion for reconsideration (OneBeacon Insurance Company...

Mealey's Insurance - Indiana Panel Affirms Denial Of Insurer's Motion For Relief From $14.5M Judgment

INDIANAPOLIS - An Indiana appeals panel on Sept. 16 affirmed a lower court's denial of an insurer's motion for relief from a $14.5 million judgment, letting stand what the panel called the largest defamation verdict in state history (State Farm Fire & Casualty Co. v. Joseph Martin Radcliff...

Mealey's Insurance - Insureds Failed To State Insurance Bad Faith Claim, Federal Judge Rules

LAS VEGAS - A federal judge in Nevada on Sept. 17 granted an insurer's motion to dismiss an insurance bad faith claim against it for failure to provide coverage under an uninsured/ underinsured motorist policy because the insureds failed to properly state a claim for relief (Timothy Korhonen, et...

Mealey's Insurance - Fact Issue Exists As To Handicapped Student's Bodily Injury, Majority Says

NEW ORLEANS - A majority of the Fifth Circuit U.S. Court of Appeals on Sept. 17 found that a federal district court erred in concluding that a commercial general liability insurer was entitled to summary judgment based on the absence of evidence as to the bodily injury of a handicapped student, reversing...

Mealey's Insurance - 3rd Circuit: Court Did Not Abuse Its Discretion In Suit Arising From Roof Damage

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 18 concluded that a federal court acted well within its discretion when it denied Pennsylvania insureds' motions to join, amend and dismiss in a coverage dispute arising from hail and windstorm damage (Dana Hayden and Dan Hayden v. Westfield...

Mealey's Insurance - Statute Of Limitations Did Not Bar Coverage, California Appeals Panel Determines

SAN FRANCISCO - A trial court erred in finding that the three-year statute of limitations in an asbestos coverage dispute involving an insolvent insurer barred recovery because the statute of limitations did not begin to run until the insurance guarantee association, acting on behalf of the insolvent...