LexisNexis® Legal Newsroom
Mealey's Insurance - Judge: Insureds Fail To Prove Insurer's Bad Faith In Denial Of Repair Costs

COLUMBIA, S.C. - Insureds fail to show that an insurer acted in bad faith when it denied coverage for additional replacement costs from a house fire, a South Carolina federal judge ruled May 19, dismissing the claim but allowing the insureds' breach of contract claim to proceed (Franklin Dash and...

Mealey's Insurance - Federal Judge: Insurer Has To Defend But Not Indemnify Public Accounting Firm

PHILADELPHIA - Finding that there is a disputed issue of fact as to whether a public accounting firm's employee had reason to know, before an accountant's professional liability insurance policy became effective, that a claim could be reasonably anticipated, a Pennsylvania federal judge on May...

Mealey's Insurance - Judge Severs, Stays Bad Faith Claim Pending Outcome Of Declaratory Relief Claim

FRESNO, Calif. - A federal judge in California on May 18 ordered parties in an insurance bad faith lawsuit to meet and confer and file a stipulation to stay arbitration pending the outcome of an insured's declaratory relief claim and severed and stayed the insured's breach of the implied covenant...

Mealey's Insurance - Judge: Coverage Barred By Unpaid Compensation, Breach Of Contract Exclusions

CHICAGO - An Illinois federal judge on May 18 found that an insurer has no duty to defend its interstate motor carrier insured against an underlying suit brought by one of its independent truck drivers because the directors and officers and company coverage is barred by the policy's unpaid compensation...

Mealey's Insurance - Insurer Opposes Reinsurer's Request For Leave To Amend Answer

BOSTON - An insurer told a federal court in Massachusetts on May 15 that its reinsurer's motion to amend its answer should not be allowed because certain court-mandated deadlines have passed and will not allow the insurer to seek discovery of information related to the proposed amended answer (OneBeacon...

Mealey's Insurance - 7th Circuit Rejects Preliminary Injunction In ACA Opt-Out Challenge

CHICAGO - Notre Dame is not entitled to a preliminary injunction while it challenges the opt-out provision of the Patient Protection and Affordable Care Act (ACA)'s contraceptive mandate, a divided Seventh Circuit U.S. Court of Appeals held May 19 (University of Notre Dame v. Kathleen Sebelius, et...

A Rare Narrowing Of The Consumer Fraud Act's Scope: Medical Malpractice Insurance Not Covered

By Peter J. Gallagher ( @pjsgallagher ) It is not every day that a New Jersey court limits the scope of the New Jersey Consumer Fraud Act (“CFA”), [ enhanced version available to lexis.com subscribers ], so when one does, it is worth writing about. Anyone who litigates in New Jersey...

Mealey's Insurance - Jury Finds Title Insurer Breached Policy, Awards $4.45 Million To Developer

PALM BEACH, Fla. - A title insurer breached its policy by failing to catch title defects that ended land sales, a Florida state jury found May 19, awarding $4.45 million to a hotel developer in the Bahamas for damages it suffered by the breach (Governor's Harbour Resort and Marina Ltd. v. First American...

Mealey's Insurance - 6th Circuit Reverses Ruling Against Insurer In Dispute Over Thailand Flood Coverage

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on May 18 reversed and remanded a lower federal court's ruling in favor of a supplier of automotive products, services and solutions in an insurance coverage dispute over its alleged $88 million in losses caused by the 2011 Thailand flood (Federal...

Mealey's Insurance - Florida Panel Reverses 'Prompt' Notice, Prejudice Issues In Wilma Coverage Suit

MIAMI - A Florida appeals panel on May 20 reversed and remanded the issues of whether an insured failed to provide "prompt" notice of her Hurricane Wilma claim and whether the insurer was prejudiced by the purported late notice in a breach of contract dispute (Edie Laquer v. Citizens Property...

Mealey's Insurance - Insurer Not Required To Turn Over Recordings In Bad Faith Suit, Judge Rules

ATLANTA - A federal judge in Georgia on May 20 denied an insurer's motion for summary judgment in an insurance bad faith lawsuit, ruling that counsel for an insured was not required under the terms of a homeowners insurance policy to turn over audio recordings of conversations with the insurer's...

Mealey's Insurance - BP, Halliburton Agree To Settle Claims Against Each Other Over Oil Spill

HOUSTON - Halliburton announced May 20 that it has reached a settlement with BP Exploration and Production Inc. to resolve any remaining claims the companies have against each other stemming from the explosion of the Deepwater Horizon oil rig and resulting oil spill in the Gulf of Mexico in April 2010...

Mealey's Insurance - Transocean Announces Settlements With BP, Plaintiffs Over Gulf Oil Spill

ZUG, Switzerland - Transocean Ltd. on May 20 announced that it has reached settlements with BP Exploration and Production Inc. and plaintiffs who allegedly suffered economic losses as a result of the explosion of the Deepwater Horizon and ensuing oil spill in the Gulf of Mexico in April 2010, which would...

Mealey's Insurance - Judge: Amount In Controversy In Bad Faith Suit Doesn't Exceed Statutory Limit

WHEELING, W.Va. - A federal judge in West Virginia on May 20 granted an insured's motion to remand an insurance bad faith lawsuit to state court, ruling that an insurer has failed to properly show that the amount in controversy exceeds the statutory limit (John Antal v. State Farm Mutual Automobile...

Mealey's Insurance - Judge Allows Insurer's Coverage Suit Over Faulty Work Claims To Proceed

PHILADELPHIA - An insurer's lawsuit regarding coverage for underlying faulty workmanship claims successfully alleges the $75,000 requirement for federal jurisdiction, a Pennsylvania federal judge ruled May 20 (Frederick Mutual Insurance Co. v. KP Construction d/b/a Mark Katona Roofing, et al., No...

Mealey's Insurance - 5th Circuit Reverses, Remands Ruling In Federal Flood Policy Cancellation Dispute

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on May 22 found that a lower federal court's denial of an insurer's motion for summary judgment was erroneous in part, remanding a coverage dispute arising from the insurer's cancellation of a federal flood insurance policy following Hurricane...

Mealey's Insurance - Insured's Motion Premature; Discovery Needs To Be Conducted, N.Y. Panel Affirms

NEW YORK - A New York appeals panel on May 21 found that an insured has failed to establish that an insurer breached a lawyers professional liability insurance policy or that counterclaims in an underlying dispute do not fall under two policy exclusions, affirming a lower court's ruling that the...

Mealey's Insurance - California High Court Denies Review In Contaminated Beef Coverage Suit

SAN FRANCISCO - The California Supreme Court on May 20 denied an insured's petition for review in a suit seeking coverage for costs associated with the recall of contaminated ground beef used in an insured's product (Windsor Food Quality Co. Ltd. v. The Underwriters of Lloyds of London, No. S225719...

Mealey's Insurance - West Virginia High Court Says Faulty Work Precedent Applies Retroactively

CHARLESTON, W.Va. - A precedential holding that liability policies may cover defective construction can be applied retroactively in a case over coverage under a commercial general liability insurance policy for losses stemming from the collapse of an access road, the West Virginia Supreme Court of Appeals...

Mealey's Insurance - Insured's Independent Counsel Claims In Defects Suit Are Unripe, Panel Says

RIVERSIDE, Calif. - An additional insured's claims that it is entitled to independent counsel from an insurer's appointed counsel in an underlying construction defect suit are premature, a California appeals panel affirmed May 22 (Centex Homes v. St. Paul Fire and Marine Insurance Co., et al...

Mealey's Insurance - Judge Dismisses Ruling In Defects Dispute Based On Insurers' Settlement

LAS VEGAS - A Nevada federal judge on May 21 dismissed an earlier coverage ruling with regard to reimbursement in a dispute with another insurer regarding an underlying construction defect action against a mutual insured as a result of a global settlement agreement among the insurers (United National...

Mealey's Insurance - Federal Jury Awards Insurer $1.62M In Compensatory, $2.75M In Punitive Damages

NEW YORK - A New York federal jury on May 26 awarded an insurer $1,625,431.75 in compensatory damages and $2.75 million in punitive damages after finding that a third-party claims administrator breached a claims services agreement and its fiduciary duty and committed conversion against the insurer, further...

Mealey's Insurance - Expert's Opinions On Insurance Coverage Not Helpful, Magistrate Says

TULSA, Okla. - An Oklahoma federal magistrate judge on May 26 excluded the testimony of an expert for a man seeking to determine if an insurance policy covers his claims in an underlying state court action, finding that the expert's opinions and proposed testimony will not be helpful to the court...

Mealey's Insurance - High Court Won't Review ERISA Preemption Ruling Involving Policy Cancellation

WASHINGTON, D.C. - The U.S. Supreme Court on May 26 declined to review the Eighth Circuit U.S. Court of Appeals ruling that a shareholder-owner's state law claims related to improper cancellation of her health care coverage were preempted by the Employee Retirement Income Security Act (CeCelia Catherine...

Mealey's Insurance - Reinsurer Asks Court To Order Other Reinsurer To Post $1M Pre-Pleading Security

NEW HAVEN, Conn. - A reinsurer on May 26 asked a federal court in Connecticut to order another reinsurer to post pre-pleading security in a dispute over a reinsurance billing of more than $1 million because the other reinsurer does not have a license to offer reinsurance in Connecticut (Select Insurance...