LexisNexis® Legal Newsroom
Mealey's Insurance - Disability Claimant Capable Of Performing Sedentary Work, Judge Determines

OAKLAND, Calif. - A California federal judge on May 11 determined that a disability insurer properly denied a claimant long-term disability benefits under a plan's any-occupation standard because the evidence supports the insurer's finding that the claimant was capable of performing sedentary...

Mealey's Insurance - Insureds Were Prejudiced By Insurer's Refusal To Provide Independent Counsel, Panel Says

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on May 14 reversed a district court's ruling that an insurer owes no coverage to its insureds for a gasoline leak that contaminated a nearby pond because the insurer is estopped from denying coverage as the insureds were clearly prejudiced by...

Mealey's Insurance - Third-Party Bad Faith Claims Barred By Statute Of Limitations, Panel Says

SEATTLE - The Ninth Circuit U.S. Court of Appeals on May 11 affirmed a district court's ruling that statutory and common-law third-party bad faith claims alleged against an auto insurer are barred by the statute of limitations because the claimant did not file suit against the insurer until more...

Mealey's Insurance - State Farm's Fraud Suit Not Subject To Abstention, Preemption, Judge Rules

FLINT, Mich. - State Farm Mutual Automobile Insurance Co.'s lawsuit accusing defendants of engaging in a scheme to submit fraudulent bills under its insureds' no-fault insurance benefits coverage is not subject to abstention or preemption, a federal judge in Michigan ruled May 14 in denying the...

Mealey's Insurance - Auto Insurer Did Not Act In Bad Faith In Handling Underinsured Motorist Claim

SCRANTON, Pa. - A Pennsylvania federal judge on May 11 granted an insurer's motion for summary judgment on a bad faith claim after determining that the insured failed to provide clear and convincing evidence that the insurer acted in bad faith in its handling of the insured's claim for underinsured...

Mealey's Insurance - Criminal Acts Exclusion Bars Coverage For College Student's Death, Panel Affirms

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 affirmed a lower federal court's finding that the insurer of homeowners and excess coverage policies issued to the parents of a college student convicted of killing another student has no duty to defend or indemnify against a wrongful...

Mealey's Insurance - U.S. Government Says Challenge To Church Plan Exemption Must Be Rejected

ORLANDO, Fla. - A district court should reject a plaintiff's challenge to the constitutionality of the Employee Retirement Income Security Act's church plan exemption because the exemption meets the requirements of the establishment clause of the First Amendment to the U.S. Constitution, the...

Mealey's Insurance - Florida Panel Again Reverses Ruling In Hurricane Wilma Coverage Dispute

MIAMI - A Florida appeals panel on May 16 reversed a lower court's final judgment against an insurer in a dispute over coverage for insureds' $59,719.25 supplemental Hurricane Wilma claim, finding that the insured's failure to comply with their post-loss obligations under the policy relieved...

Mealey's Insurance - 4th Circuit Affirms Ruling In Life Insurer's Favor In Supplemental Coverage Suit

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 held that no reasonable jury could find that a life insurer had a fiduciary duty under the Employee Retirement Income Security Act to solicit supporting materials for coverage beyond the guaranteed issue amount or notify new employees...

Mealey's Insurance - Pollution Exclusion Bars Coverage For Noxious Fumes, Odors, Judge Says

COLUMBUS, Ga. - An insurer has no duty to defend its insured against an underlying suit alleging damages as a result of odors emanating from an insured's holding pond because the policy's pollution exclusion clearly bars coverage for the underlying suit, a Georgia federal judge said May 16 (Recyc...

Mealey's Insurance - New York Panel Reinstates Claims Against Insurer, Oil Remediation Company

BROOKLYN, N.Y. - The Second Department New York Supreme Court Appellate Division on May 16 reinstated claims of gross negligence and punitive damages against an insurer and a remediation company after determining that the insureds sufficiently stated facts to support the claims (Richard Bennett, et al...

Mealey's Insurance - Policies Must Be Construed As Primary Policies In Asbestos Exposure Coverage Suit

ELGIN, Ill. - The First District Illinois Appellate Court on May 15 affirmed a trial court's finding that insurance policies issued between 1977 and 1985 to an insured who is seeking coverage for an asbestos exposure claim are primary policies with self-insured retentions and cannot be considered...

Mealey's Insurance - Breach Of Contract Claim, Unsupported Bad Faith Claim Dismissed

MOBILE, Ala. - In granting a motion to strike and dismiss, a federal judge in Alabama on May 16 ruled that two claims in an insurance breach of contract and bad faith lawsuit are nearly identical, and an insured's bad faith claim lacks any factual allegations to support it (Carlos Todd v. State Farm...

Mealey's Insurance - Judge Declines To Join Insurers' Receiver To Breach Of Fiduciary Suit

ST. LOUIS - A Missouri federal judge on May 16 denied a request to join a special deputy receiver for three insolvent insurers to a breach of fiduciary lawsuit against a trustee for its role on pre-need funeral contracts because the trustee does not state in what capacity it would like to join the receiver...

Mealey's Insurance - N.Y. State Justice Dismisses Insureds' Suit Seeking Coverage For Garage Collapse

MINEOLA, N.Y. - A New York state justice on May 16 dismissed a suit filed by insureds in a dispute over coverage for the collapse of their garage after determining that the insureds failed to prove that the insurer breached its contract, acted in bad faith or committed fraud in its handling of the claim...

Mealey's Insurance - Panel Upholds Class Action Status In Dispute Over Illegal Insurance Transactions

BATON ROUGE, La. - A Louisiana appeals panel on May 16 affirmed certification of a class in a case against state agencies and insurers over illegal transactions made to protect the Louisiana Insurance Guaranty Association (Donald W. Abshire v. The State of Louisiana, et al., No. 2017CA0689 c/w 2017CA0690...

Mealey's Insurance - Class Suit Fails To Allege Covered Disparagement Claim, California Panel Affirms

SAN FRANCISCO - A California appeals court on May 21 affirmed a lower court's ruling that an underlying consumer class action alleging that a shampoo manufacturer insured falsely advertised its hair products as "organic" does not trigger a covered disparagement claim under its insurance...

Mealey's Insurance - Insurer Found To Have Not Delayed In Paying On Homeowners Insurance Claim

AUSTIN, Texas - Granting a motion for partial summary judgment in an insurance breach of contract and bad faith lawsuit, a federal judge in Texas on May 17 ruled that an insurer did not intentionally delay paying on a claim for coverage under a homeowners insurance policy and that insureds failed to...

Mealey's Insurance - Stockholder Sues GE Over Losses Sustained For Insurance Reinsurance Business

NEW YORK - A stockholder sued General Electric Co. (GE) and its officers and directors in a New York federal court on May 17, alleging that their actions concerning their insurance and reinsurance business resulted in billions of dollars in damages to the company (Edward Tansey v. Jeffrey R. Immelt,...

Mealey's Insurance - Homeowner Alleges Illegal Kickback Scheme Involving Reinsurance Payments

LOS ANGELES - A homeowner filed a class action complaint on May 17 against a mortgage loan company and financial services company for engaging in an illegal kickback scheme involving reinsurance payments arising out of force-placed hazard insurance policies (Kathleen Angel Eisenberg v. Ocwen Loan Servicing...

Mealey's Insurance - Billing Practices Are Not Professional Services Under Policy, 10th Circuit Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on May 22 affirmed a lower federal court's finding that an insurer had no duty to defend against an underlying class action or the Colorado attorney general's investigation of a law firm insured because the underlying claims arose from billing practices...

Mealey's Insurance - Panel Reverses No Coverage Ruling For False Claims Act Suit Against Office Depot

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on May 21 found that a lower federal court erred in holding that an insurer has no duty to defend or indemnify Office Depot Inc. in an underlying qui tam lawsuit, reversing and remanding (Office Depot Inc. v. AIG Specialty Insurance Company,...

Mealey's Insurance - 2nd Circuit Upholds Sentence For 'Brazen' Employment Insurance Fraud Scheme

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 21 upheld a federal judge in New York's decision to sentence a man who pleaded guilty to fraudulently procuring $13,961 in unemployment insurance benefits from the New York Department of Labor while working as a correctional officer to...

Mealey's Insurance - Insurer's Denial Of Coverage Under Exclusion Was Not In Bad Faith, Judge Rules

SCRANTON, Pa. - A water exclusion in a homeowners insurance policy is unambiguous and precluded coverage for damages caused when sewage backed up into an insured's basement; as a result, an insurer did not act in bad faith in denying coverage, a federal judge in Pennsylvania ruled May 21 in granting...

Mealey's Insurance - Judge Limits Liberty Mutual's Defenses Against Window Maker's Bad Faith Suit

TAMPA, Fla. - A federal judge in Florida on May 18 granted in part motions for partial summary judgment filed by a window and door manufacturer seeking recovery of $3 million it paid to resolve five defects lawsuits in Alabama state court, finding that its insurer, Liberty Mutual Fire Insurance Co.,...