LexisNexis® Legal Newsroom
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...

Mealey's Insurance - Court Erred In Rejecting Concurring Cause Doctrine, Majority Says, Quashes Order

TALLAHASSEE, Fla. - A majority of the Florida Supreme Court on Dec. 1 held that an appeals court erred in reversing an $8 million judgment against a homeowners insurer in a coverage dispute over alleged property damage caused by construction defects, rain and wind, quashing the lower court's opinion...

Mealey's Insurance - Judge: Missouri Does Not Recognize Bad Faith Refusal To Pay Claim

ST. LOUIS - Dismissal of a bad faith claim in an insurance dispute is proper because the state does not recognize a claim for bad faith refusal to pay benefits, but an insured has properly stated his claim for breach of contract against the insurer, a federal judge in Missouri ruled Nov. 29 in granting...

Mealey's Insurance - Evidence Shows Claimant Is Not Disabled From Any Occupation, Panel Affirms

CINCINNATI - Because six medical experts unanimously agreed that a disability claimant was not disabled from performing any occupation, the disability insurer did not act arbitrarily and capriciously in terminating the claimant's long-term disability (LTD) benefits, the Sixth Circuit U.S. Court of...

Mealey's Insurance - Judge: Cardiologist's Lack Of Holistic Training Does Not Bar Testimony

ALBUQUERQUE, N.M. - A cardiologist's proposed testimony about the appropriateness of diagnoses and treatment by a doctor accused of health care fraud is reliable and relevant under Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579, 597 [1993]), a federal judge in New Mexico ruled Dec. 1...

Mealey's Insurance - Actual Cost Value Applies To Insured's Loss From Damage To Dock, Magistrate Judge Says

TACOMA, Wash. - An insured's dock is not a "building" as that term is used in an insurance policy and, thus, coverage for only actual cost value (ACV) applies, a Washington federal magistrate judge ruled Nov. 30, also finding that the insured failed to show that the insurer improperly calculated...

Mealey's Insurance - South Dakota High Court: Fact Issues Exist On Insurer's 'Your Work' Exclusion

PIERRE, S.D. - Genuine issues of material fact remain to preclude summary judgment on the application of "your work" and "professional services" exclusions in a dispute between an insurer and its insured over coverage for damage to grain bins, the South Dakota Supreme Court held Nov...

Mealey's Insurance - Texas High Court Refuses To Rehear Stowers Action Arising From Wrongful Death

AUSTIN, Texas - The Texas Supreme Court has denied a motion to rehear a lawsuit alleging that insurers failed to act in good faith to settle a liability claim stemming from a wrongful death, according to its orders pronounced Dec. 2 (Roy Seger, et al. v. Yorkshire Insurance Co. Ltd., et al., No. 13-0673...

Mealey's Insurance - Coverage Owed For Vitamin E Supplement Claims, Texas Federal Judge Determines

WICHITA FALLS, Texas - Because an excess liability policy provides coverage for the negligent conduct of an insured arising from the manufacture and distribution of a vitamin E supplement, class plaintiffs are entitled to access $15 million held in the court's registry, a Texas federal judge said...

Mealey's Insurance - Judge: Amount In Controversy Standard In Bad Faith Suit Not Met

LOS ANGELES - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper, a federal judge in California ruled Dec. 1, because an insurer failed to show that the amount in controversy meets the statutory requirements for removal (Jules Kraut, et al. v. Bankers Life and Casualty...

Mealey's Insurance - Illinois Panel: Appeal Seeking Coverage For $8.4M Junk Fax Ads Award Is Untimely

CHICAGO - An Illinois appeals panel held Dec. 5 that it lacks jurisdiction to hear a claimant's appeal in a dispute over insurance coverage for an underlying $8,414,374.50 judgment arising from unsolicited fax advertisements in violation of the Telephone Consumer Protection Act (TCPA), rejecting...

Mealey's Insurance - Panel: Nurse Employed By Agency Qualifies As 'Employee' Of Hospital Under Policy

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Dec. 6 held that a nurse who was employed by a staffing agency and assigned to work at a hospital qualifies as a hospital "employee" under its insurance policy, vacating and remanding an equitable contribution lawsuit arising from...

Mealey's Insurance - Court Properly Disregarded Portions Of Expert Witness' Affidavit, 9th Circuit Says

PORTLAND, Ore. - The Ninth Circuit U.S. Court of Appeals on Dec. 5 held that a lower federal court did not err in disregarding the heat-related portions of an affidavit from an expert witness in a dispute over coverage for a building collapse (Tarleton LLC v. State Farm Fire and Casualty Co., No. 14...

Mealey's Insurance - Judge: Insurer's Revision Of Estimate In Insurance Dispute Not In Bad Faith

SCRANTON, Pa. - A federal judge in Pennsylvania on Dec. 5 granted an insurer's motion for summary judgment on an insured's claim for insurance bad faith in a homeowners insurance dispute, ruling that the insured failed to show that the insurer's actions during the investigation and subsequent...

Mealey's Insurance - Trust Did Not Have The Authority To Make Claims Decisions, Kentucky Panel Says

FRANKFORT, Ky. - The Kentucky Court of Appeals on Dec. 2 affirmed the dismissal of two disability claimants' amended complaints after finding that the claimants could not assert their claims against the trust that administered their employer's disability plan because the trust did not possess...

Mealey's Insurance - Judge Rejects Insureds' Breach Of Contract Arguments In Bad Faith Suit

LOS ANGELES - Summary judgment is warranted against insureds in an insurance breach of contract and bad faith lawsuit because the insureds have failed to show that their insurer breached its contract in failing to pay their claims for benefits or denied their requests for a defense or indemnification...

Mealey's Insurance - Insured's Bad Faith Claim Lacks Factual Support, Judge Rules

OKLAHOMA CITY - An insured's insurance bad faith counterclaim was dismissed Dec. 5 after a federal judge in Oklahoma ruled that the insured failed to plead its counterclaim with any facts to support it (Employers Mutual Casualty Co. v. W-W Trailer Manufacturers, d/b/a W.W. Trailer Manufacturing,...

Mealey's Insurance - Lack Of Factual Allegations Dooms Bad Faith Claim, Federal Judge Rules

PHILADELPHIA - Dismissal an insured's bad faith claim against his insurer for failure to pay uninsured motorist benefits pursuant to an automobile insurance policy is proper because the insured failed to state any factual allegations to support his bad faith claim, a federal judge in Pennsylvania...

Mealey's Insurance - Judge: Firms' Contingency Fees Were Reasonable, Orders Woman To Pay Restitution

ALBUQUERQUE, N.M. - A federal judge in New Mexico on Dec. 6 ordered a woman who pleaded guilty to disability insurance fraud and wire fraud to pay two beneficiaries of an estate more than $100,000 in restitution, finding that the contingency fees charged by a research firm and a law firm they hired to...

Mealey's Insurance - 1st Circuit Affirms Homeowners Insurer Has No Duty To Defend

BOSTON - The First Circuit U.S. Court of Appeals on Dec. 7 found that a homeowners insurance policy draws a clear distinction between an insurer's duty to defend that applies to suits alone and the insurer's right to investigate that applies to both suits and claims, affirming a lower federal...