In its recent decision in Babcock & Wilcox Co. v. American Nuclear Insurers , 2015 Pa. LEXIS 1551 (Pa. July 21, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the Supreme Court of Pennsylvania, deciding a matter of first impression within the Commonwealth, had occasion to consider the question of whether an insured’s settlement of an underlying claim, without...

By Michael R. Kelley Insurance coverage counsel have been anxiously awaiting the Pennsylvania Supreme Court's decision in Babcock & Wilcox Co. v. Am. Nuclear Insurers , 2015 Pa. Lexis 1551 (July 21, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], since the high court agreed to hear the case in January 2014. The Court noted that the issue presented was one...

In the decision just released in the State of California "Stringfellow" case , the Superior Court of the State of California awarded the State of California the amount of $13,914,082.09, the full amount of mandatory pre-judgment interest and, alternatively if that is reversed through the judicial process, $10,554,082.19 as the full amount of discretionary prejudgment interest, both at the legal rate of seven...

By Kathleen A. Birrane , David D. Luce , and Peter S. Rice By a five-to-four margin, the Supreme Court of the United States has held that “disparate-impact claims are cognizable under the Fair Housing Act.” Texas Dep’t of Hous. & Cmty. Affairs v. Inclusive Cmtys. Project, Inc. , 576 U.S. ___ (2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. ...

By Michael R. Kelley A Pennsylvania appellate court, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], has affirmed a $300,000 judgment against Riversource Life Insurance Co. in a suit accusing the insurer and its agent of making fraudulent misrepresentations in the sale of a couple's policy, concluding that the evidence supported the trial judge's findings. In...

No one likes to lose a lawsuit. Unable to accept that the case they brought was not viable or their own lawyers were incompetent, the losers strike out at whoever they can strike at, usually, the lawyers for their opponents. Lawyers are required, by their oath, to vigorously act for their client and are protected, usually, by the litigation privilege from claims brought against them by the losers. BACKGROUND In...

By Robert M. Hall I. Introduction Today there are organizations that mine old premium and loss data seeking to collect additional funds using access to records clauses or audit rights. It may be difficult for the recipient of such a request to comply given changes in ownership and data processing systems, gaps in record retention, corruption of data and the death or retirement of principal players. Some would argue...

Needless to say, claims adjusters won’t be happy with the Texas federal court’s decision in Linron Properties v. Wausau Underwriters Insurance Co., No. 15-293 (N.D. Tex. June 16, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. The court held that an adjuster could be personally liable for her wrongful conduct in handling a claim. Linron Properties sued Wausau...

It has now been nine months since the American Law Institute did a switcheroo and converted its Principles of the Law of Liability Insurance to the Restatement of the Law of Liability Insurance. Just a one word change – but an impact that speaks volumes. So what’s been happening with the project during this period? To find out I checked-in with the Restatement’s Reporter – Professor Tom Baker of...

By Dennis Cusack Policyholders seeking insurance funds to settle a case often face an insurer’s demand that some amount should be allocated to uncovered claims or parties. The issue arises often under directors and officers liability (D&O) policies, when settlements resolve the liability of covered directors and the uncovered company. But general liability insurers also demand to “allocate”...

Insurance companies have the right and obligation to choose counsel to defend its insureds. Counsel retained by an insurer to defend an insured, contrary to the belief of many, is obligated solely to represent the rights, duties, obligation and defenses of the party insured. When that party is a corporation the counsel is obligated to represent the interest of the corporation even if it is contrary to the rights and obligations...

In its recent decision in E Dillon & Co. v. Travelers Cas. & Sur. Co. of America , 2015 U.S. Dist. LEXIS 76295 (W.D. Va. June 12, 2015), [ enhanced version available to lexis.com subscribers ], the United States District Court for the Western District of Virginia, applying Virginia law, had occasion to consider whether an insured’s untimely notice of claim voided its right to coverage for an underlying employment...

By Douglas M. Palais Even though issuing certificates is an important part of the service that you provide to your customers, from an E & O standpoint, they must be handled with extreme care. The following points are not comprehensive, but demonstrate a few of the specific risks and offer some tips to avoid these pitfalls. • First and foremost, never generate information on a certificate demanded by a customer...

Westport Ins. Corp. v. N. Cal. Relief , 2014 U.S. Dist. LEXIS 173676 (N.D. Cal. Dec. 16, 2014), [ enhanced version available to lexis.com subscribers ]. In Westport, the Northern District of California held that the allegations of the underlying complaints were sufficient to potentially trigger the non-participating insurer’s coverage obligation despite the fact that underlying sexual abuse allegations occurred...

St. Paul Fire & Marine Ins. Co. v. Centex Homes , 2014 U.S. Dist. LEXIS 145882 (C.D. Cal. Oct. 7, 2014), [ enhanced version available to lexis.com subscribers ]. In St. Paul Fire , the Central District of California held that it lacked subject matter jurisdiction to adjudicate the insurers’ claims for declaratory relief and breach of contract based on the insureds’ alleged breach of the cooperation...

Regular readers of Coverage Opinions know that a favorite topic of mine is lawsuits that involve professional sports that contain a fan component. Lawsuits surrounding numerous aspects of professional sports are abundant. They often involve business issues. But every once in a while a suit comes along that involves the fans in some way, such as fan being hit by a foul ball or injured by a furry mascot. These are great...

By Ashley Moss Professional liability insurance carriers require their insureds to report claims timely as a condition to coverage. This is especially important at the time for renewal of insurance coverage, when the carrier will ask about knowledge of any claims or potential claims. Professionals typically fear that notifying the insurer of a potential claim will result in higher premiums or even rejection of an...

Ecolite Concrete USA, Inc. v. G.S. Levine Ins. Services, Inc ., 2014 Cal. App. Unpub. LEXIS 9271 (Cal. App. Dec. 31, 2014), [ enhanced version available to lexis.com subscribers ]. In Ecolite Concrete , the California Court of Appeal affirmed the trial court’s ruling that an insurance broker was not liable for failing to timely tender an insured’s claim because coverage for the underlying lawsuit would...

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 knows about the CFA and, depending on whether you are on the plaintiff’s side or the defendant’s side, either...

Debt cancellation insurance, such as GAP Insurance for car loans, is considered insurance in West Virginia when issued by an entity other than the lender. Only if a lender offers a debt cancellation contract directly to a product’s purchaser is that contract not considered insurance. When the debt cancellation contract is offered by a third-party, the contract and its issuer are subject to the insurance laws of...

This article describes the new online arbitration case evaluation tool, CaseXplorer® Arbitration™. It covers the value of a mock arbitration process and the cost and time savings that this new, online process brings to lawyers and their clients. CaseXplorer® Arbitration™ is a collaboration between the American Arbitration Association (AAA) and DecisionQuest. CaseXplorer® Arbitration™ is an...

It is one of the toughest issues of them all for insurers. The insurer is defending its insured under a reservation of rights. There are strong coverage defenses. The underlying case is getting close to trial. There is a demand to settle within limits. It is a settlement that should be accepted based on liability and damages considerations. But the insurer does not believe that coverage is owed. So it is not pleased at...

By: Alec Christie , Alexander Gregg, Carmen Elder , Codie Gippel, David Leggatt , Emma Baker , Emma Cameron , Jacques Jacobs , James Baird , James Berg , James Morse , Jason Morris, John Goulios , John Sheehy, Julian Conti, Kieran O'Brien , Mark Baker-Jones , Mark Williams , Michael Gill , Paul Baxter , Richard Edwards , Samantha O'Brien , Samantha Kelly , Sarah-Jane Dobson, Sophie Devitt , Trevor Ho , Veronica...

Most insurance fraud perpetrators know crime but have no knowledge of insurance. It is difficult to prove fraud in the presentation of a claim. It is relatively easy, on the other hand, to rescind a policy if the fraudster lies to get the insurance in the first place. Rescission Rescission is an equitable remedy as ancient as the common law of Britain. ( Carter v. Boehm, S.C. 1 Bl.593, 3 Burr 1906, British House...

Subrogation lawsuits seek recovery from a tortfeasor who caused damage to property, the risk of loss of which was insured, and allows the insurer to step into the shoes of its insured to recover from the tortfeasor what the insured could have recovered had the insured not been insured. In Certain Underwriters at Lloyd’s London v. North Shore Signature Homes, Inc. — N.Y.S.2d —-, 2015 N.Y. App. Div. LEXIS...