LexisNexis® Legal Newsroom
Mealey's Insurance - Credit Union's Directors Knew Of Employee Dishonesty Well Before Bond Was Issued

CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on May 18 affirmed a lower federal court's ruling that the liquidating agent of an insolvent credit union is not entitled to $5 million in employee dishonesty coverage under a fidelity bond issued to the credit union for losses arising...

Mealey's Insurance - No Coverage For Housing Discrimination Charge Against Landlord, Panel Affirms

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on May 18 affirmed a lower federal court's ruling in favor of a tenant-discrimination liability insurer in a coverage dispute arising from a housing discrimination charge brought against the residential landlord insured (GMS Management v. Evanston...

Mealey's Insurance - Kentucky Federal Judge Says Disability Insurer's Offset Was Permitted Under Policy

LOUISVILLE, Ky. - A Kentucky federal judge on May 16 granted a disability insurer's motion to dismiss after determining that the insurer did not act arbitrarily and capriciously by offsetting the claimant's benefits amount with income the claimant earned as a political consultant (Oliver H. Barber...

Mealey's Insurance - High Court Denies Disability Plan Administrators' Petition For Writ Of Certiorari

WASHINGTON, D.C. - The U.S. Supreme Court on May 22 denied a petition for writ of certiorari filed by disability plan administrators claiming that a district court and the Second Circuit U.S. Court of Appeals failed to follow prior decisions issued by the U.S. Supreme Court in disability insurance cases...

Mealey's Insurance - 7th Circuit Majority Says Reinstatement Of Disability Benefits Was Reasonable

CHICAGO - The majority of a Seventh Circuit U.S. Court of Appeals panel on May 18 affirmed a district court's judgment of more than $580,000 in past disability benefits in favor of a disability claimant after determining that the plan did not specify any type of job the claimant is capable of performing...

Mealey's Insurance - Appeals Panel Says Policy Limits Were Exhausted, No Further Duty To Defend Exists

LOS ANGELES - The Second District California Court of Appeal on May 18 reversed a trial court's judgment in favor of an insured in a silica coverage case after determining that the insured released its right to assert any bad faith claims against the insurer and after finding that the insurer has...

Mealey's Insurance - Abuse Exclusion Bars Coverage For Wrongful Death Verdict, 9th Circuit Affirms

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on May 17 rejected a doctor and his wife's argument that they were entitled to coverage for an adverse verdict in a wrongful death suit because their homeowners insurance policy's abuse exclusion was not applicable, affirming a lower...

Mealey's Insurance - Indiana Federal Judge: Remand Of Disability Claim Needed For Full, Fair Review

INDIANAPOLIS - An Indiana federal judge on May 19 granted a motion for administrative remand after determining that remand is necessary to provide a disability claimant with a full and fair review and to allow the disability insurer to review pages that were discovered to be missing from a physician's...

Mealey's Insurance - Federal Judge Says Disability Claimant's State Law Claims Are Preempted By ERISA

PHILADELPHIA - A Pennsylvania federal judge on May 19 granted a disability insurer's motion to dismiss a claimant's state law claims after determining that the state law claims related to the insurer's denial of disability benefits are completely preempted by the Employee Retirement Income...

Mealey's Insurance - Pennsylvania Federal Judge: Issue Of Fact Remains As To Cause Of Fire In Townhome

PHILADELPHIA - A Pennsylvania federal judge on May 18 denied a contractor's motion for summary judgment after determining that an insurer's proposed expert testimony on the causation of a fire presents a genuine dispute of material fact as to whether one of the contractors who worked in the home's...

Mealey's Insurance - Business Pursuits Exclusion Bars Coverage, Massachusetts Panel Affirms

BOSTON - A Massachusetts appeals panel on May 23 affirmed a lower court's ruling that a homeowners insurance policy's business pursuits exclusion bars coverage for underlying claims against a civilian employee of the city of Newtown's chief of police office (Vincent Nguyen v. Arbella Insurance...

Mealey's Insurance - No Coverage Exists For Vicarious Liability Claim Against Spa Owner, Panel Affirms

ATLANTA - The 11th Circuit U.S. Court of Appeals on May 24 affirmed a lower federal court's ruling that a professional liability insurance policy does not cover an underlying vicarious liability claim brought against the owner of a spa (Kalandra Lewis, et al. v. Evanston Insurance Co., No. 16-15109...

Mealey's Insurance - Iowa High Court Reverses $25M Punitive Damages Verdict In Bad Faith Suit

DES MOINES, Iowa - The Iowa Supreme Court on May 19 reversed a jury's $25 million punitive damages award entered in favor of an insured after determining that a trial court erred in ruling on motions for summary judgment that a workers' compensation insurer acted in bad faith by contesting the...

Mealey's Insurance - Federal Judge Allows Fraud Claim Over Failure To Set Up Reinsurance Company

CHICAGO - A car dealership and its owners sufficiently allege a claim for promissory fraud under Illinois law by alleging that warranty-related service providers never intended to keep a promise to set up an offshore reinsurance company for the dealership's benefit, an Illinois federal judge ruled...

Mealey's Insurance - Federal Judge Dismisses Insurer's Counterclaims In Construction Defects Dispute

LAS VEGAS - A Nevada federal judge on May 19 dismissed an insurer's breach of contract and declaratory relief counterclaims after determining that the insurer failed to allege facts in support of its assertion that an additional insured's failure to cooperate with the insurer prejudiced the insurer's...

Mealey's Insurance - 9th Circuit Affirms Ruling That Disability Claimant Waived Right To Contest Denial

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on May 22 affirmed a district court's finding that a disability claimant waived his rights to contest the termination of his disability benefits because the claimant signed a waiver of all rights, including his rights to contest the termination...

Mealey's Insurance - Production Company Owed No Further Defense For Suits Over Fatal Train Accident

LOS ANGELES - A California federal judge on May 23 granted an insurer's motion for summary judgment on the remaining claims in a production company insured's lawsuit seeking coverage for damages caused by a train accident that killed a camera technician and injured the film's director and...

Mealey's Insurance - Judge Finds Professional Liability Exclusion Applies To Construction Inspector

GREENVILLE, S.C. - A federal judge in South Carolina on May 24 awarded summary judgment to State Farm Fire and Casualty Insurance Co., ruling that the professional liability exclusion does not require the insurer to provide coverage to a construction inspection company accused of negligence (State Farm...

Mealey's Insurance - Reinsurer: Insurer Is Not Entitled To Judgment On Reimbursement, Allocation

SYRACUSE, N.Y. - In a breach of contract dispute over asbestos coverage, a reinsurer opposes in separate briefs filed on May 24 an insurer's request to a New York federal court for summary judgment on reimbursement and allocation issues (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc...

Mealey's Insurance - Judge Trims Claims In Renters Insurance Dispute Over Fire Losses

ST. LOUIS - A federal judge in Missouri partially dismissed claims in an insurance dispute over coverage for a renters insurance policy on May 22, ruling that insureds failed show that they could bring a state law claim for breach of fiduciary duty of good faith and fair dealing against their insurer...

Mealey's Insurance - Policy Limits Flood Coverage To $1M, Majority Says In Superstorm Sandy Dispute

TRENTON, N.J. - A majority of the Supreme Court of New Jersey on May 25 reversed an appeals court's ruling that held that an insured is owed $207,961.28 for debris removal in addition to $1 million in flood coverage under a surplus lines insurance policy, reinstating a lower court's partial summary...

Mealey's Insurance - Notice Of Lawsuit Over Sales Commissions Was Untimely, 8th Circuit Affirms

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on May 25 affirmed a lower federal court's ruling that a food marketing and distribution company insured's notice of an underlying lawsuit brought by its former employee was untimely (Food Market Merchandising Inc. v. Scottsdale Indemnity Co...

Mealey's Insurance - California Federal Judge Says Evidence Supports Finding That Claimant Is Disabled

SAN FRANCISCO - A California federal judge on May 24 granted a disability claimant's motion for judgment on the administrative record after determining that the evidence does not support the disability insurer's termination of benefits after paying the claimant benefits for almost eight years...

Mealey's Insurance - Judge: Issues Must Be Resolved In Bad Faith Suit Before Judgment Can Be Issued

OXFORD, Miss. - Summary judgment in an insurance breach of contract and bad faith lawsuit is not proper because an insured has stated material issues of genuine fact that must be determined before any judgment may be issued in the action, a federal judge in Mississippi ruled on May 23 in denying an insurer's...

Mealey's Insurance - Judge Refuses To Dismiss Insurer's Receiver's Negligence Suit Against Actuary Company

OKLAHOMA CITY - Although a California-based actuary company lacks the more-traditional contacts with a forum state, an Oklahoma federal judge on May 25 denied the company's motion to dismiss a professional negligence suit brought by an insolvent insurer's receiver because one court from "this...