http://www.lexisnexis.com/mealeys/news.aspx Headline Insurance Bad Faith Legal News from LexisNexis® en-us http://www.lexisnexis.com/mealeys/images/lexismealeyslogo.gif 130 29 http://www.lexisnexis.com/mealeys/news.aspx Copyright 2013 http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%201%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BATON ROUGE, La. - Determining that an insured's umbrella policy did not provide for exemplary damages for uninsured motorist (UM) benefits based on the limitations of an underlying auto insurance policy, a Louisiana First Circuit Court of Appeal panel on April 26 reversed a lower court's granting of such damages while affirming its awards for lost wages, medical expenses and general damages (Byard Edwards Jr. v. Louisiana Farm Bureau Mutual Insurance Co., No. 2012 CA 1495, La. App., 1st Cir.; 2013 La. App. Unpub. LEXIS 266). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%202%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PHILADELPHIA - A Pennsylvania federal judge on April 30 found an insured's common-law bad faith claim against her insurer could not stand as an independent cause of action and was subsumed by an existing breach of contract claim, granting the insurer's motion to dismiss (Kelly E. Tubman v. USAA Casualty Insurance Co., No. 2:12-cv-07121, E.D. Pa.; 2013 U.S. Dist. LEXIS 61022). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%203%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SACRAMENTO, Calif. - Noting the existence of a standing scheduling discovery deadline order and an insurer's failure to previously file an objection to it, a California federal magistrate judge on April 25 denied the insurer's motion for a protective order related to materials sought by policyholders related to breach of contract and bad faith claims against it (Scott Dunton, et al. v. Allstate Insurance Co., No. 2:12-cv-00303, E.D. Calif.; 2013 U.S. Dist. LEXIS 59625). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%204%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BILLINGS, Mont. - A Montana federal judge on April 26 ruled that a professional liability insurer did not neglect to attempt settlement of an underlying debt collection dispute in good faith in violation of Montana's Unfair Trade Practices and Consumer Protection Act (UTPA), granting in part the insurer's motion for summary judgment (Timothy McCollough v. Minnesota Lawyers Mutual Insurance Co., et al., No. 1:09-cv-00095, D. Mont.; 2013 U.S. Dist. LEXIS 60183). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%205%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' ST. LOUIS - A Missouri appeals panel on April 23 affirmed a lower court's finding that a 2009 insurance policy did not apply to the causes of action in an underlying legal malpractice action, further affirming that the insurer did not act in bad faith in refusing to settle the suit (The Bar Plan Mutual Insurance Co. v. Chesterfield Management Associates, et al., No. ED98826, Mo. App., Eastern Dist., Div. 1; 2013 Mo. App. LEXIS 485). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%206%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' KANSAS CITY, Mo. - If an excess insurer can establish that a nurse's primary insurer breached its duties to her in an underlying wrongful death case, it may be able to succeed in its equitable subrogation claim, a Missouri appeals panel found April 30, reversing an entry of summary judgment in the primary insurer's favor (Missouri Public Entity Risk Management Fund v. American Casualty Company of Reading, Pa., No. WD75446, Mo. App., West. Div.; 2013 Mo. App. LEXIS 527). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%207%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' AKRON, Ohio - A trial court prematurely disposed of a policyholder's breach of contract claim against his homeowners insurance provider, a panel of the Ninth District Ohio Court of Appeals found May 6, reversing in part the lower court's judgment (Robert Baker v. Nationwide Mutual Insurance Co., et al., No. 12CA010236, Ohio App., 9th Dist.; 2013 Ohio 1856; 2013 Ohio App. LEXIS 1742). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%208%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PIKEVILLE, Ky. - Because a decedent's life insurance policy had been canceled prior to her death, a Kentucky federal judge on April 30 held that the policy beneficiaries' claims brought under the Employee Retirement Income Security Act (ERISA) failed (Sandra Morris, et al. v. Appalachian Regional Healthcare Inc., et al., No. 7:12-cv-00101, E.D. Ky.; 2013 U.S. Dist. LEXIS 61196). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%209%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' HARTFORD, Conn. - A title insurer acted within the provisions of its policy when it sought documentation and examinations under oath from its insured in its quest to resolve a tax lien issue, the Connecticut Appellate Court ruled May 7 (Chicago Title Insurance Co. v. Bristol Heights Associates LLC, et al., No. AC 34040, Conn. App.; 2013 Conn. App. LEXIS 236). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2010%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BEAUFORT, S.C. - A health insurance provider properly reimbursed its insured for the actual amount paid to a medical provider after adjustments were made by Medicare, a South Carolina federal judge ruled April 24, granting summary judgment to the insurer on bad faith and breach of contract claims against it (Dennis Barker v. Washington National Insurance Co., No. 9:12-cv-01901, D. S.C.; 2013 U.S. Dist. LEXIS 58437). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2011%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' LOS ANGELES - A California appeals panel found May 1 that an insurer cannot avoid its contractual duty to defend a medical director insured against federal criminal charges by relying on California Insurance Code Section 533.5, subdivision (b), reversing a lower court's summary judgment ruling in favor of the insurer (Mt. Hawley Insurance Co. v. Richard R. Lopez Jr., No. B234082, Calif. App., 2nd Dist.; Div. 7.; 2013 Cal. App. LEXIS 346). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2012%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' DALLAS - An insured "is attempting to transform its D&O $(directors and officers$) liability policy into a first-party policy to provide coverage for its own loss," a Texas federal judge ruled April 29, granting an insurer's motion to dismiss breach of contract and bad faith claims against it (American Construction Benefits Group LLC v. Zurich American Insurance Co., No. 3:12-cv-02726, N.D. Texas; 2013 U.S. Dist. LEXIS 60308). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2013%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' TACOMA, Wash. - A contractor demonstrated that it suffered harm to its business relationship due to a commercial general liability (CGL) insurer's bad faith failure to defend it in an underlying lawsuit, a Washington federal judge found April 25, ruling that the contractor would be permitted to seek compensation accordingly (Tim Ryan Construction Inc. v. Burlington Insurance Co., No. 3:12-cv-05770, W.D. Wash.; 2013 U.S. Dist. LEXIS 59560; See 1/31/13, Page 10). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2014%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' NEW ORLEANS - The Housing Authority of New Orleans (HANO) breached a 2009 settlement agreement with its commercial liability insurer by seeking to reassert claims for defense costs and bad faith penalties in an underlying case after compromising its right to make any such claims, a Louisiana federal judge ruled May 2 (Republic Insurance Co. v. Housing Authority of New Orleans, No. 2:08-cv-04748, E.D. La.; 2013 U.S. Dist. LEXIS 64386). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2015%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PHILADELPHIA - Citing a language barrier, among other things, a Pennsylvania federal magistrate judge on April 24 found that sufficient issues exist as to whether a homeowner made intentional misrepresentations in seeking coverage for a house fire, leading her to deny an insurer's motion for judgment on a breach of contract claim against it (Ribhi Hasan, et al. v. Allstate Insurance Co., No. 2:11-cv-05109, E.D. Pa.; 2013 U.S. Dist. LEXIS 58981). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2016%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on April 26 reversed and remanded an errors and omissions liability insurance coverage suit for reconsideration of the insured's breach of contract claim against the insurer and the proper interpretation of a policy exclusion (Ticketmaster LLC v. Illinois Union Insurance Co., No. 11-56285, 9th Cir.; 2013 U.S. App. LEXIS 8554). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2017%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' CINCINATTI - The Sixth Circuit U.S. Court of Appeals on April 24 found that a lower federal court's reasoning behind its dismissal of an insured's breach of contract claim against an insurer is inadequate to allow a meaningful appellate review, remanding to the lower court for further development of the breach of contract claim (MPDS Memphis Ltd., et al. v. State Farm Fire and Casualty Co., No. 11-4416, 6th Cir.; 2013 U.S. App. LEXIS 8501). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2018%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' INDIANAPOLIS - An Indiana federal judge on April 29 denied motions for summary judgment regarding coverage under a policy's provision for freezing pipes because an issue of fact exists as to whether the insured took reasonable care to prevent a home's pipes from freezing (Robert Short v. North Pointe Insurance Co., et al., No. 11-545, S.D. Ind.; 2013 U.S. Dist. LEXIS 61368). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2019%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' CINCINNATI - Because material issues of fact exist in a coverage dispute arising out of an insured's recall of its products potentially contaminated with salmonella, an Ohio federal judge on May 1 denied both the insured's and insurer's motions for summary judgment (The Wornick Co. v. Houston Casualty Co., No. 11-00391, S.D. Ohio; 2013 U.S. Dist. LEXIS 62465). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=27-1%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2020%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' CAMDEN, N.J. - A New Jersey federal judge on April 22 denied an insurer's motion to dismiss a breach of contract claim in an insured's lawsuit seeking coverage for an underlying gender discrimination lawsuit brought by a former employee but granted the insurer's motion to dismiss the insured's claim for declaratory judgment (Regal-Pinnacle Integrations Industries Inc. v. PIIC, No. 12-5465, D. N.J.; 2013 U.S. Dist. LEXIS 56941). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%201%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' CHICAGO - Even though an insurer retained an attorney to defend its insured in personal injury cases, an Illinois appeals panel on April 17 held that, in light of the attorney's subsequent failure to actually take sufficient actions on the insured's behalf, the insurer failed to fulfill its duty to defend (Bonifacio Delatorre Jr. v. Safeway Insurance Co., No. 1-12-0852, Ill. App., 1st Dist., 3rd Div.; 2013 IL App (1st) 120852; 2013 Ill. App. LEXIS 240). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%202%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BOISE, Idaho - A commercial general liability (CGL) insurer had no duty to indemnify a construction company for damages awarded in connection with a claim that sounded in contract, an Idaho Supreme Court majority found April 19, affirming a lower court's ruling (Employers Mutual Casualty Co. v. David Donnelly, et al., No. 38623, 2013 Opinion No. 51, Idaho Sup.; 2013 Ida. LEXIS 125). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%203%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SEATTLE - Having previously held that an insurer properly denied coverage for a claim related to sexual abuse of a minor, a Washington federal judge on April 11 granted the insurer's subsequent motion for summary judgment on bad faith, negligence and other state law claims against it (Sitlalit Ramirez-Yanez v. Allstate Insurance Co., No. 2:12-cv-00732, W.D. Wash.; 2013 U.S. Dist. LEXIS 52563; See 11/8/12, Page 9). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%204%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' INDIANAPOLIS - Even though an insurer and its insured are now adverse parties in an insurance bad faith dispute, an Indiana federal judge on April 22 held that the insurer could not invoke the attorney-client privilege or the work product doctrine to prevent disclosure of documents from its privilege log to its insured, who was the party for whom those documents were originally created (Randall L. Woodruff v. American Family Mutual Insurance Co., No. 1:12-cv-00859, S.D. Ind.; 2013 U.S. Dist. LEXIS 56883). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%205%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BIRMINGHAM, Ala. - An Alabama couple did not establish that they were entitled to disputed coverage and did not present "sufficient evidence of dishonest purpose" by their insurer, an Alabama federal judge ruled April 18, finding that the insurer was not liable for either normal or extraordinary bad faith in a dispute over purported tornado damage (Gene Peoples, et al. v. Property & Casualty Insurance Company of Hartford, et al., No. 2:11-cv-03788, N.D. Ala.; 2013 U.S. Dist. LEXIS 55299). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%206%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' COLORADO SPRINGS, Colo. - Homeowners allege in a complaint filed March 21 in a Colorado state court that their insurer and its insurance agent left them underinsured for fire damage (Velma Rose and Ken Rose v. State Farm Fire and Casualty Co. and William Beadles, No. 2013CV1485, Colo. Dist., El Paso Co., 4th Jud.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%207%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' KNOXVILLE, Tenn. - Although a Tennessee federal judge on April 11 found that a policyholder's breach of contract claim survived his insurer's dismissal motion, the judge disposed of an accompanying bad faith claim, finding "legitimate grounds" for the insurer's denial of benefits under a total disability policy (Stephen Bowery v. Berkshire Life Insurance Company of America, No. 3:11-cv-00003, E.D. Tenn.; 2013 U.S. Dist. LEXIS 52234). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%208%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SEATTLE - Because a policyholder could have brought contractual and state law claims against her insurer in a previous lawsuit in which coverage matters were determined, a Washington federal judge on April 11 concluded that the present lawsuit is barred under the doctrine of res judicata (Valerie M. Smith v. State Farm Mutual Automobile Insurance Co., No. 2:12-cv-01505, W.D. Wash.; 2013 U.S. Dist. LEXIS 52564). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%209%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' DALLAS - Finding that an insurer failed to establish that its adjuster was improperly joined in a coverage dispute lawsuit, a Texas federal judge on April 23 found that the parties were not completely diverse and remanded the case to state court (Ursula Landor v. State Farm Lloyds, et al., No. 3:12-cv-04268, N.D. Texas; 2013 U.S. Dist. LEXIS 57586). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2010%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SAN FRANCISCO - For the second time, a California federal judge on April 16 dismissed insureds' third-party claims against an insurer in a dispute over coverage for environmental contamination claims, finding that an amended third-party complaint (TPC) failed to establish supplemental jurisdiction over the insurer (Great American Insurance Co., et al. v. Michael Chang, et al., No. 3:12-cv-00833, N.D. Calif.; 2013 U.S. Dist. LEXIS 54013). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2011%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' GRETNA, La. - A Louisiana appeals panel on April 10 affirmed a lower court's ruling granting a homeowners insurer's exception of prescription but remanded the case to permit the insureds to amend their petitions to show that their Hurricane Katrina property damage claims have not prescribed (Lionel Williams v. Louisiana Citizens Property Insurance Co., No. 12-CA-603 c/w 12-CA-604 and 12-CA-605, La. App., 5th Cir.; 2013 La. App. LEXIS 704). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2012%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SEATTLE - A Washington federal judge on April 12 granted in part and denied in part an insured's motion to compel discovery from its insurer in a dispute over coverage for claims that the insured violated the False Claims Act by wrongfully discharging its chief financial officer and retaliating against him for blowing the whistle (Carolina Casualty Insurance Co. v. Omeros Corporation, et al., No. C12-287RAJ, W.D. Wash.; 2013 U.S. Dist. LEXIS 53225). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2013%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' OAKLAND, Calif. - Underlying complaints against an attorney insured do not create the potential for coverage under a lawyers' professional liability insurance policy because they are not based on providing legal services, a California federal judge ruled April 3, granting the insurer's motion for summary judgment in a coverage dispute arising from allegations that the insured misrepresented the amount of attorney fees and costs that he was permitted to charge (Colony Insurance Co. v. Douglas Fladseth, et al., No. C 12-1157 CW, N.D. Calif.; 2013 U.S. Dist. LEXIS 48552). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2014%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on April 15 held that Section 554 of the California Insurance Code does not bar a professional liability insurer from enforcing its policy's no-voluntary payments provision, affirming a lower court's ruling in favor of the insurer in a breach of contract lawsuit brought by an independent public adjuster insured (Dietz International Public Adjusters of California Inc. v. Evanston Insurance Co., No. 11-56267, 9th Cir.; 2013 U.S. App. LEXIS 7491; See 7/28/11, Page 17). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2015%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' ATLANTA - The 11th Circuit U.S. Court of Appeals on April 15 certified three questions to the Florida Supreme Court in a third party's lawsuit seeking employers liability coverage for an underlying $9.5 million wrongful death judgment against an insured (Leticia Morales v. Zenith Insurance Co., No. 12-11755, 11th Cir.; 2013 U.S. App. LEXIS 7469). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2016%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' ATLANTA - The 11th Circuit U.S. Court of Appeals on April 16 vacated a grant of summary judgment in favor of an insurance broker on an insured's claims for negligence and breach of fiduciary duty and remanded for reconsideration in light of the Florida Supreme Court's ruling on the application of the economic loss doctrine (Tiara Condominium Association Inc. v. Marsh & McLennan Companies Inc., et al., No. 09-11718, 11th Cir.; 2013 U.S. App. LEXIS 7583; See 6/10/10, Page 14). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2017%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' HONOLULU - A Hawaiian appeals court on April 15 affirmed trial court decisions that found that an insurer had no duty to indemnify a building company and another insurer under various policies for a settlement they paid to a hotel owner in relation to mold infestation (Group Builders Inc., et al. v. Admiral Insurance Company, No. 29729, Inter. Hawaii App.; 2013 Haw. App. LEXIS 207). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2018%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' NEW YORK - A New York justice on April 15 granted an insured's motion that its insurer produce documents related to post-suit conduct in an environmental contamination coverage dispute after determining that the insurer failed to prove that the documents are protected by work product privilege (Estee Lauder Inc. v. OneBeacon Insurance Group LLC, et al., No. 602379/05, N.Y. Sup., New York Co.; See 3/8/12, Page 22). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2019%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BIRMINGHAM, Ala. - An insurer established that it properly inspected property to determine that a loss was not covered and properly relied on a water damage exclusion to deny coverage, an Alabama federal judge ruled April 12, granting summary judgment to the insurer on breach of contract and bad faith claims (Maxine Ware and Elbert Ware v. Nationwide Insurance Co., et al., No. 11-4272, N.D. Ala.; 2013 U.S. Dist. LEXIS 52641). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-24%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2020%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' By David A. Mercer Introduction Over the last 25 years, courts have wrestled with the issue of whether to apply an absolute privilege to preclude bad-faith lawsuits based on an insurance company's conduct during the litigation of an underlying first-party or third-party claim. Some courts still refuse to recognize a bad-faith claim against an insurance company based upon its post-litigation conduct.1 However, the prevailing trend seems to suggest that courts will find that some of the insurer's conduct remains relevant and admissible, while the conduct of the insurer's attorneys in defending the claim remains privileged.2 http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%201%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' ELGIN, Ill. - An insurer was obligated to credit a policyholder's excess balance to an amount due rather than canceling the policy for nonpayment, an Illinois appeals panel found March 29, upholding a lower court's ruling that the insurer breached its contract by not defending the insured in an underlying lawsuit (Auto-Owners Insurance Co. v. Merle Yocum, et al., No. 2-11-1267 and 2-12-0092, Ill. App., 2nd Dist.; 2013 IL App (2d) 111267; 2013 Ill. App. LEXIS 180). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%202%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on March 26 affirmed an arbitration award of more than $500,000 to a woman injured in a trip-and-fall incident while finding that the property owners' insurer did not act in bad faith or in breach of contract (Allstate Insurance Co. v. Richard Thacher, et al., No. 11-56208 and 11-56321, 9th Cir.; 2013 U.S. App. LEXIS 6034). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%203%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SAN FRANCISCO - A car owner failed to show that an insurer's valuation and payment of his theft and damage claim, while lower than that ultimately determined by an umpire, was made in bad faith, a California appeals panel ruled April 8 (Konstantin Kupfer v. Mid-Century Insurance Co., No. A134732, Calif. App., 1st Dist.; 2013 Cal. App. Unpub. LEXIS 2470). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%204%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' PHOENIX - An Arizona city's liability policy provided coverage for a discrimination lawsuit by a tenant at a city-owned airport, an Arizona federal magistrate judge concluded March 29, holding that the city's insurers had a duty to defend in the underlying lawsuit (City of Glendale v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 2:12-cv-00380, D. Ariz.; 2013 U.S. Dist. LEXIS 45468). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%205%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' DENVER - Bad faith claims against two insurers in an underinsured motorist (UIM) coverage dispute were partially dismissed April 5, with a Colorado federal judge determining that the insured's filing of the lawsuit suspended the insurers' duty to negotiate or advance payment of claims pending resolution of the matter (Robert Baker v. Allied Property and Casualty Insurance Co., et al., No. 1:12-cv-00010, D. Colo.; 2013 U.S. Dist. LEXIS 49538). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%206%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' OKLAHOMA CITY - Finding it unclear when an insurer made its decision on its insured's underinsured motorist (UIM) claim, an Oklahoma federal judge on March 29 found it inappropriate to grant summary judgment on a bad faith claim based on the statute of limitations (Stephen Haley, et al. v. American Farmers and Ranchers Mutual Insurance Co., No. 5:11-cv-01207, W.D. Okla.; 2013 U.S. Dist. LEXIS 45433). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%207%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' DENVER - Finding that certain of an insurer's claim file documents pertained to claims investigation, rather than legal counsel, a Colorado federal magistrate judge on April 2 held that the documents were not protected from discovery under the attorney-client privilege, granting in part a policyholder's motion to compel in an insurance bad faith dispute (Colorado Mills LLC v. Philadelphia Indemnity Insurance Co., No. 1:12-cv-01830, D. Colo.; 2013 U.S. Dist. LEXIS 47601). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%208%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' TAMPA, Fla. - An insurer's motion to reconsider a denial of summary judgment regarding coverage matters and bad faith surrounding repair of a sinkhole is merely an attempt "to refute the basis for the Court's earlier decision," a Florida federal judge ruled April 4, denying the motion (Elieser Lumpuy v. Scottsdale Insurance Co., No. 8:11-cv-02455, M.D. Fla.; 2013 U.S. Dist. LEXIS 49016; See 2/14/13, Page 10). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%209%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' NASHVILLE, Tenn. - A Tennessee federal magistrate judge on March 29 granted a life insurance provider's motion to dismiss breach of contract and bad faith claims against it, holding that the trustees' dispute over a policy's tier of coverage was based on the policy's name rather than the actual risk classification they had sought when applying for the original policy (Richard A. Johnson, et al. v. Prudential Insurance Company of America, No. 3:11-cv-00866, M.D. Tenn.; 2013 U.S. Dist. LEXIS 45204). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2010%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' JACKSON, Miss. - A Mississippi appeals court on March 26 affirmed a jury's $1.17 million award in favor of a hardware store insured in a Hurricane Katrina wind coverage dispute, further affirming a directed verdict in favor of the insurer on the insured's bad faith claim (Coastal Hardware and Rental Co. v. Certain Underwriters At Lloyds, London, No. 2011-CA-00765-COA, Miss. App.; 2013 Miss. App. LEXIS 136). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2011%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' CLEVELAND - An Ohio federal judge on April 8 refused to dismiss a law firm insured's declaratory judgment and breach of contract claims against its legal malpractice insurer in a coverage dispute arising from an alleged phishing scam but granted the insurer's motion to dismiss the bad faith claim (Stark & Knoll Co. L.P.A. v. ProAssurance Casualty Co., No. 12 CV 2669, N.D. Ohio, Eastern Div.; 2013 U.S. Dist. LEXIS 50326). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2012%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' LOS ANGELES - An insurer owes no coverage for water and mold damages caused by a plumbing leak because the cause of the loss was wear and tear in the plumbing pipes and not sudden and accidental as required by the policy, the Second District California Court of Appeal said April 2 (Leroy Brown, et al. v. Mid-Century Insurance Co., No. B238357, Calif. App., 2nd Dist., Div. 7; 2013 Cal. App. Unpub. LEXIS 2389). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2013%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' BATON ROUGE, La. - A Louisiana federal judge on March 28 found that fact issues preclude summary judgment on whether a commercial general liability insurer breached its duty to defend insureds against an underlying class action lawsuit, further finding that there are fact issues regarding whether the insurer acted in bad faith in disputing coverage (RPM Pizza LLC, d/b/a Domino's Pizza v. Argonaut Great Central Insurance Co., No. 10-684-BAJ-SCR,C/W No. 12-147, M.D. La.; 2013 U.S. Dist. LEXIS 44994). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2014%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' SAN FRANCISCO - An underlying complaint against an insured for copyright and trademark infringement fails to allege facts that created a potential liability for an advertising injury, a California federal judge ruled March 19, dismissing a breach of contract and bad faith suit against the insurer (Purplus Inc. v. Hartford Casualty Ins., No. C 12-03689 JSW, N.D. Calif.; 2013 U.S. Dist. LEXIS 38367). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2015%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' LAS VEGAS - A Nevada state court jury on April 4 ordered two health insurers to pay $24 million in compensatory damages to three plaintiffs who claim that the defendants' actions contributed to them or a spouse becoming infected with hepatitis C during colonoscopies (Helen Meyer v. Health Plan of Nevada, et al., No. 09-A583799, Bonnie Brunson, et al. v. Health Care Plan of Nevada, No. A-10-608344C, Nev. Dist., Clark Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2016%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' NEW YORK - A New York federal judge on April 1 denied a motion for reconsideration by an insurer involved in an environmental contamination coverage suit after determining that the insurer failed to present sufficient information to refute its duty to defend the insured (The Narragansett Electric Co. v. American Home Assurance Co., et al., No. 11-8299, S.D. N.Y.; 2013 U.S. Dist. LEXIS 47319). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=26-23%20Mealey%27s%20Litig.%20Rep.%20Ins.%20Bad%20Faith%2017%20(2013)&view=full&ORIGINATION_CODE=00144 target='_blank' FRESNO, Calif. - A federal judge in California on March 26 dismissed the reformation and punitive damages claims from a suit in which the former directors of the failed County Bank sued Bancinsure Inc. after it denied them coverage of a Federal Deposit Insurance Corp. suit (Thomas T. Hawker, et al. v. BancInsurance Inc., et al., No. 12-1261, E.D. Calif.; 2013 U.S. Dist. LEXIS 42946).