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Mealey's Insurance - Mold Exclusion Does Not Preclude Coverage, Tennessee Federal Judge Determines

JACKSON, Tenn. - An insurer has a duty to defend its insured in an underlying suit alleging bodily injuries as a result of mold in a rented home because an exception to the mold exclusion provides that the exclusion does not apply to fungi contained in a good or product intended for human consumption...

Mealey's Insurance - 11th Circuit: No Coverage For Data-Theft Suit Under Employment Practices Policy

ATLANTA - Because no employment relationship existed between a health insurance provider and a security firm, an 11th Circuit U.S. Court of Appeals panel on Aug. 17 found that the security firm's employment practices liability (EPL) policy did not provide coverage for the settlement of an underlying...

Mealey's Insurance - Judge Says Arbitration Panel Should Decide How To Deal With Reinsurance Dispute

NEW HAVEN, Conn. - A federal judge in Connecticut on Aug. 18 held that it is up to an arbitration panel to determine which of two arbitration clauses in a reinsurance contract applies to a dispute over, among other things, a commutation value (American United Life Insurance Company v. Travelers Indemnity...

Mealey's Insurance - Federal Judge Awards $1,029,814 In Attorney Fees Against Insurer

MEDFORD, Ore. - An Oregon federal judge on Aug. 20 awarded $1,029,814 in attorney fees against an insurer in an executive and organization liability insurance coverage dispute (Daryl J. Kollman, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 04-3106, D. Ore.; 2015 U.S. Dist. LEXIS...

Mealey's Insurance - Panel: Insurer Had Duty To Defend General Contractor Against Defects Claims

PORTLAND, Ore. - Allegations of an insured subcontractor's construction defects triggered an insurer's duty to defend a general contractor as an additional insured, an Oregon appeals panel affirmed Aug. 19, finding that the insurer breached its duty to defend (West Hills Development Co. v. Chartis...

Mealey's Insurance - Judge Dismisses Coverage Suit In Light Of Parallel One Over Negligent Work Claims

PHILADELPHIA - A Pennsylvania federal judge on Aug. 19 dismissed an insurer's coverage lawsuit because there is an underlying parallel lawsuit involving the same parties and issues with regard to an insured's alleged negligent construction work that caused water damage in an apartment complex...

Mealey's Insurance - Federal Judge Allows Breach Of Contract, Bad Faith Claims To Proceed

LOS ANGELES - A California federal judge on Aug. 18 denied in part an insurer's motion for summary judgment in coverage dispute arising from claims that an insured participated in an alleged scheme to acquire the trade secrets and a confidential marketing "system" developed by a home health...

Mealey's Insurance - Judge Dismisses Copyright Infringement Coverage Dispute Because Of Improper Venue

SAN FRANCISCO - A California federal judge on Aug. 17 dismissed an insurer's declaratory judgment lawsuit disputing coverage for underlying counterclaims against its enterprise software services provider insured, finding that venue is not proper (Charter Oak Fire Insurance Co., et al. v. Rimini Street...

Mealey's Insurance - Illinois Judge Orders Liquidation Of Insolvent Insurer

CHICAGO - An Illinois judge on Aug. 19 ordered an insolvent insurer out of rehabilitation and into liquidation and named the state's acting director of insurance as liquidator (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Interstate Bankers...

Mealey's Insurance - Judge To Hear Argument For 2 Suits On W.R. Grace Insurer Liability At Same Time

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 19 consolidated for oral argument motions to dismiss and for summary judgment in two adversary cases that ask the same question: whether the protective injunction in W.R. Grace & Co.'s Chapter 11 case bars asbestos personal injury...

Mealey's Insurance - Judge Remands Insurance Bad Faith Lawsuit To State Court

EL DORADO, Ark. - Remand of an insurance bad faith lawsuit to state court is proper because an insured has shown that the amount in controversy is less than $75,000, a federal judge in Arkansas ruled Aug. 21 (Tina L. Boone v. State Farm Mutual Automobile Insurance Co., No. 15-1047, W.D. Ark.; 2015 U...

Mealey's Insurance - Federal Judge Awards Pre- And Post-Judgment Interest To Insured For Mold Suits

MINNEAPOLIS - A Minnesota federal judge on Aug. 20 awarded a mattress maker more than $1.5 million after calculating pre- and post-judgment interest and attorney fees owed on a jury's $400,000 award for coverage owed to the insured for an underlying action in which consumers alleged that mattresses...

Mealey's Insurance - Illinois Panel Affirms Summary Judgment In Insurance Bad Faith Suit

CHICAGO - A state trial court did not err in granting an insurer's motion to dismiss in a breach of contract and insurance bad faith lawsuit because an insured failed to show that any breach of a homeowners insurance policy existed, an Illinois appellate panel ruled Aug. 21 (Robert Lytle v. Country...

Mealey's Insurance - Judge: Insured In Bad Faith Suit Failed To Make Proper Challenge To Removal

BALTIMORE - A federal judge in Maryland on Aug. 20 denied an insured's motion to remand an insurance bad faith lawsuit, ruling that remand is not proper because the insured has "failed to articulate a proper challenge to removal" (Joe Gladney v. American Western Home Insurance Co., No....

Mealey's Insurance - Judge Refuses To Dismiss Hospital From Suit Over Alleged Insurance Fraud

NEW ALBANY, Ind. - A federal judge in Indiana on Aug. 24 denied a hospital's motion to dismiss it from a former emergency room doctor's False Claims Act (FCA) lawsuit, after finding that the plaintiff's allegation that he was subject to retaliatory termination as a result of his complaints...

Mealey's Insurance - Massachusetts Federal Judge: Intellectual Property Exclusion Applies

BOSTON - A plaintiff was denied judgment on the pleadings Aug. 21 by a Massachusetts federal judge, who instead agreed with an insurer that a "broad" intellectual property (IP) exclusion in a general liability insurance policy precludes coverage in an underlying copyright lawsuit (PTC Inc....

Mealey's Insurance - Remand Of Disability Suit Is Not A Final, Appealable Order, 3rd Circuit Panel Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Aug. 24 dismissed a disability insurer's appeal for lack of jurisdiction after determining that a district court's remand of the disability suit to the plan administrator was not a final appealable order (Joseph Stevens v. Santander Holdings...

Mealey's Insurance - Panel: Third Party Failed To Bring Bad Faith Claim Within Statute Of Limitations

NEW ORLEANS - A federal district court did not err in dismissing a third party's insurance bad faith claim against an insurer because the third party's bad faith claim was not brought within the one-year statute of limitations, a Fifth Circuit U.S. Court of Appeals panel ruled Aug. 21 (Michael...

Mealey's Insurance - Judge: Misrepresentations On Application Submitted By Agent Not Voidable

BATON ROUGE, La. - A federal judge in Louisiana on Aug. 24 denied an insurance company's motion for summary judgment in a suit in which it seeks an order declaring a general commercial policy void ab initio, after finding that an insurance agent's completion of an application containing alleged...

Mealey's Insurance - Delaware Judge Finds Insurer Has A Duty To Defend Asbestos Suits

WILMINGTON, Del. - A Delaware state judge on Aug. 21 determined that an insurer has a duty to defend its insured against underlying asbestos suits, but deferred ruling on whether the insured provided timely notice of the underlying claims (CNH Industrial America LLC v. American Casualty Company of Pennsylvania...

Mealey's Insurance - Washington Panel: Policy Exclusion Bars Coverage For Carbon Monoxide Poisoning

SEATTLE - A trial court correctly determined that an insurer had no duty to defend underlying claims arising out of carbon monoxide poisoning because the policy's pollution exclusion clearly precluded coverage; however, issues of genuine fact exist regarding whether the insurer violated Washington's...