LexisNexis® Legal Newsroom
Mealey's Insurance - Judge: Insured Cannot Bring Fiduciary Duty Claim Without Asserting Bad Faith

ALBUQUERQUE, N.M. - New Mexico does not recognize a claim for breach of fiduciary duty against an insurer independent of a bad faith claim in insurance disputes, a federal judge in New Mexico ruled Nov. 9, rejecting an insured's motion for partial summary judgment and denying her motion to certify...

Mealey's Insurance - Judge: Insurer's Actions During Negotiations Do Not Support Bad Faith Claim

PHILADELPHIA - A federal judge in Pennsylvania on Nov. 9 granted an insurer's motion for summary judgment in an insurance breach of contract and bad faith lawsuit, ruling that an insured failed to present any evidence to support her bad faith claim with regard to the insurer's handling of her...

Mealey's Insurance - Insurer's Claims In Asbestos Coverage Suit Are Not Ripe, Arizona Federal Judge Says

PHOENIX - An Arizona federal judge on Nov. 10 dismissed an insurer's claims seeking a coverage declaration for two underlying asbestos suits filed against its insured after determining that the insurer's claims are not ripe for adjudication because the policies' self-insured retentions have...

Mealey's Insurance - Panel Affirms $29,799,781 Judgment Against Insurer In Malpractice Coverage Dispute

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Nov. 14 rejected a professional liability insurer's argument that its policy's prior-knowledge exclusion bars coverage for an underlying malpractice claim against its law firm insured, affirming a $29,799,781.79 judgment against the insurer...

Mealey's Insurance - Judge Denies Petition To Vacate Arbitration Award, Grants Confirmation

NEW YORK - A federal judge in New York on Nov. 10 denied an insurer's petition to vacate a reinsurance arbitration award and granted a reinsurer's cross-petition to confirm the award, holding that the court could review only whether the arbitrators had done their job and not whether their interpretation...

Mealey's Insurance - Reinsured Asks Court To Compel Reinsurer To Arbitrate Dispute

NEW YORK - An insurer representing itself and its affiliates petitioned a federal court in New York on Nov. 14 for an order compelling a reinsurer to arbitrate a $3.8 million dispute that the insurer insists is between it and the reinsurer and does not involve a pool of other parties as the reinsurer...

Mealey's Insurance - Court Upholds Ruling Ordering Man To Pay Restitution For False Claims

SAN DIEGO - A California appeals panel on Nov. 14 upheld a trial judge's decision to require a man convicted of making false statements to physicians in connection with a workers' compensation claim to pay $30,154.02 to a risk services company, after finding that the defendant was unable to show...

Mealey's Insurance - Judge Will Not Order Lift Of Stay Enjoining Litigation Against Insolvent Insurer

AUSTIN, Texas - A Texas judge on Nov. 10 denied a creditor's motion to lift an automatic stay of litigation involving an insolvent insurer in liquidation (The State of Texas v. Millennium Closing Services LLC d/b/a Millennium Title, No. D-1-GN-16-000360, Texas, 53rd Dist., Travis Co.).

Mealey's Insurance - Appellate Panel Says New York Is Correct Place For Reinsurance Arbitration

NEW YORK - The Second Circuit U.S. Court of Appeals on Nov. 16 affirmed a lower court ruling that a reinsurance dispute should be arbitrated in New York and not London (Infrassure, Ltd. v. First Mutual Transportation Assurance Company, Inc., No. 16-306, 2nd Cir.; 2016 U.S. App. LEXIS 20529).

Mealey's Insurance - Damages From Insured's Faulty Work Are Not Covered, Arkansas Federal Judge Says

LITTLE ROCK, Ark. - Damages for defective workmanship that resulted in damages only to an insured general contractor's work product itself does not constitute property damage caused by an "occurrence" under a commercial general liability insurance policy, an Arkansas federal judge ruled...

Mealey's Insurance - Insured Did Not Comply With Policy's Consent-To-Settle Provision, Appeals Panel Says

CINCINNATI - An excess liability insurer has no duty to reimburse an insured for underlying settlements related to defective knee implants because the policy's consent-to-settle provision clearly required the insured to seek the excess insurer's consent and the insured failed to do so, the Sixth...

Mealey's Insurance - Federal Judge Dismisses Excess Insurer's Suit, Says Abstention Is Warranted

GULFPORT, Miss. - A Mississippi federal judge on Nov. 18 dismissed an excess insurer's suit against an additional insured's excess insurer after determining that the coverage question at issue in the federal suit is the same as the coverage question at issue in a pending state court case filed...

Mealey's Insurance - Amount In Controversy In Bad Faith Suit Doesn't Exceed $75,000, Judge Rules

LOS ANGELES - On his own motion, a federal judge in California on Nov. 17 remanded an insurance breach of contract and bad faith lawsuit to state court, ruling that an insurer failed to show that the amount in controversy exceeded the statutory requirement (Maria L. Monroy, et al. v. Infinity Insurance...

Mealey's Insurance - Judge: Fraud Claim Against Insured Is Not An 'Occurrence' Due To Intentional Conduct

LITTLE ROCK, Ark. - Property owners' fraud claim is not a covered "occurrence" under a commercial general liability insurance policy because they allege intentional intent by an insured contractor, an Arkansas federal judge ruled Nov. 18, also upholding a previous decision that the insurer...

Mealey's Insurance - Liquidator Asks Court To Approve Settlement Of Asbestos Claims

CONCORD, N.H. - The liquidator of an insolvent insurer asked a New Hampshire court on Nov. 21 to approve a $13.8 million settlement agreement with a bankrupt company's asbestos personal injury trust (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack...

Mealey's Insurance - Judge: State Law Bars Insurers From Indemnifying For Punitive Damages Awards

FRESNO, Calif. - An insurer is entitled to summary judgment in an insurance breach of contract and bad faith lawsuit, a federal judge in California ruled Nov. 18, because California law bars insurers from indemnifying their insureds for punitive damages awards (Paul Evert's RV Country Inc., et al...

Mealey's Insurance - Judge: Insurer Breached Insurance Policy, But Reading Of Policy Was Reasonable

SEATTLE - A federal judge in Washington on Nov. 18 granted in part and denied in part competing motions for summary judgment in an insurance breach of contract and bad faith lawsuit, ruling that although an insurer breached its contract with its insureds under a homeowners insurance policy, its reading...

Mealey's Insurance - Judge Allows Insured To Add Wife As Indispensable Party In Bad Faith Suit

PHILADELPHIA - A federal judge in Pennsylvania on Nov. 21 rejected an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit for failure to join an indispensable party, allowing an insured to amend his complaint to add his wife as a plaintiff (William Koepke v. Allstate...

Mealey's Insurance - Insured Timely Notified Insurer Of Only 1 Pending Suit, Federal Judge Says

NEW YORK - A New York federal judge on Nov. 21 amended a prior ruling entered in favor of an insured to clarify that the insured timely notified the insurer of only one underlying suit pending against it and not two suits pending against it (Olin Corp. v. Insurance Company of North America, et al., No...

Mealey's Insurance - Insureds' Liability Must Be Resolved Before Coverage Issues, New Jersey Panel Says

TRENTON, N.J. - Insurers' coverage obligations in a mold damages suit can be adjudicated only after the insureds' liability for the damages caused by the mold contamination is resolved, the Appellate Division of the New Jersey Superior Court determined Nov. 21 (Larry Chenault v. Victory Highlands...

Mealey's Insurance - Panel Reverses Ruling In Insurer's Favor In Errors, Omissions Liability Dispute

HARTFORD, Conn. - A Connecticut appeals court found that an insurer's duty to defend was not barred by a public entity errors and omission liability insurance policy's contract exclusion because an underlying complaint left open the possibility that a negligent misrepresentation claim against...

Mealey's Insurance - Louisiana Federal Judge Says Exclusions For Pollution, Silica Do Not Bar Coverage

NEW ORLEANS - A Louisiana federal judge on Nov. 23 denied an insurer's motions for summary judgment on the duty to defend and indemnify an insured and an additional insured against two underlying suits filed by neighboring residents of an insured shipyard after determining that the insurer failed...

Mealey's Insurance - Illinois Federal Judge Says Discovery Needed Before Duty To Defend Can Be Decided

CHICAGO - An Illinois federal judge on Nov. 23 granted an insurer's motion seeking discovery in an asbestos coverage dispute after finding that the effect of an underlying settlement agreement on the insurer's duty to defend must first be determined before a decision can be made on the insurer's...

Mealey's Insurance - Panel Denies Rehearing, Says Refinery Owner Not Covered Under Policy

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Nov. 29 denied a petition for rehearing after determining that a refinery owner seeking help with environmental cleanup costs under its parent company's insurance policy should have and could have discovered that it was not named as an insured...

Mealey's Insurance - Property Owner Unable To Show Insurer's Suit Is Untimely, Judge Rules

BALTIMORE - A federal judge in Maryland on Nov. 23 overruled a property owner's argument that an insurance company's lawsuit seeking rescission of a general liability policy due to alleged misrepresentations about lead paint violations on the policy application is untimely, ruling that the owner...