LexisNexis® Legal Newsroom
Mealey's Insurance - Washington Federal Judge Denies Disability Claimant's Motion To Supplement Record

SEATTLE - A Washington federal judge on Nov. 8 denied a disability claimant's motion to supplement the administrative record with a disability benefits decision made by the Social Security Administration because the claimant failed to establish the existence of any exceptional circumstances to warrant...

Mealey's Insurance - Doctor Sentenced To 15 Years, Ordered To Pay $9.1 M For Fraud Scheme

DETROIT - A doctor was sentenced to 15 years in prison and ordered to pay $9.1 million in restitution by a federal judge in Michigan on Nov. 8 after being found guilty for his role in a $26 million health care fraud scheme that involved billing Medicare for nerve block injections that were never provided...

Mealey's Insurance - Judge: 3 Policy Exclusions Bar Coverage For Damage Caused By Marijuana Operations

DETROIT - Finding that tenants' use of an insured's commercial property units to grow marijuana was illegal or at the very least dishonest, a Michigan federal judge on Nov. 8 held that coverage for the insured's losses arising from this activity is barred by an insurance policy's illegal...

Mealey's Insurance - Federal Judge: Flood Did Not Become Excluded Peril Once Sublimits Were Exhausted

SHERMAN, Texas - A Texas federal judge on Nov. 9 granted insureds' motion for partial summary judgment in their breach of contract and bad faith lawsuit arising from storm damage, finding that the insurer remains liable for any damages caused by pure wind and the combination of wind and flood if...

Mealey's Insurance - Federal Judge: California Law Applies To Claims In Water Damage Coverage Suit

NEW BERN, N.C. - A North Carolina federal judge on Nov. 9 determined that California law should be applied to a dispute over coverage for water damages because the policy at issue was issued in California and the insured's principal place of business is in California (Certain Underwriters at Lloyd's...

Mealey's Insurance - Judge: Policy Does Not Exclude Contractors' Work As Home Builder, Not Roofer

OKLAHOMA CITY - An insurance company must provide coverage for two contractors under two commercial general liability policies because the language in the policies does not exclude coverage for their work as home builders rather than as roofers, a federal judge in Oklahoma ruled Nov. 9 in denying the...

Mealey's Insurance - Insurers Oppose Discovery Extension In Fraudulent Transfer Suit Against Reinsurer

ATLANTA - Insurers in a Nov. 9 brief oppose a request from a reinsurer and its shareholders to extend the discovery period and expert report deadlines in a dispute in a Georgia federal court over allegedly fraudulent transfers of reinsurance funds (Canal Insurance Co., et al. v. Golden Isles Reinsurance...

Mealey's Insurance - Texas Panel Vacates Discovery Order, Says Documents Not Relevant To Contract Claim

TYLER, Texas - The 12th District Texas Court of Appeals on Nov. 8 determined that a trial court erred in granting an insured's motion to compel because the documents sought by the insured are not relevant to the contract claim and will not be relevant unless and until the extracontractual claims...

Mealey's Insurance - Judge Extends Deadline On Class Certification Motion To Allow Discovery Completion

PHILADELPHIA - In a dispute over an alleged kickback insurance premium scheme involving insurers, reinsurers and lenders, a Pennsylvania federal judge on Nov. 9 granted a joint stipulation and order to extend deadlines pertaining to a class certification motion to allow homeowners to complete relevant...

Mealey's Insurance - Ohio Panel Affirms TrialCourt's Judgment In Insurer's Favor On Bad Faith Claim

TOLEDO, Ohio - A trial court did not err in granting an insurer's motion for summary judgment in a bad faith dispute over underinsured motorist coverage because the insured's voluntary dismissal of a prior bad faith claim was with prejudice and, therefore, prohibited the insured from refiling...

Mealey's Insurance - Judge Dismisses Breach Of Contract Claim In Coverage Dispute Over Mortgage Fraud

SEATTLE - A Washington federal judge on Nov. 13 dismissed a breach of contract claim brought by the Federal Deposit Insurance Corp. against fourth-level excess insurers in a coverage dispute arising from fraudulent mortgage loans, finding that third-level excess insurance has not been exhausted (Federal...

Mealey's Insurance - Federal Judge: No Employment Practices Coverage Owed For Age Discrimination Claims

DENVER - A Colorado federal judge on Nov. 14 granted an insurer's motion for summary judgment in a coverage dispute over underlying age discrimination and retaliation claims against its insured, finding that the insured failed to give timely notice of the claim (Scottsdale Indemnity Co. v. Convercent...

Mealey's Insurance - Objections To Insurer's Discovery Requests Overruled In Dispute Over Employee Theft

PHILADELPHIA - A Pennsylvania federal magistrate on Nov. 14 granted an insurer's motion to overrule objections to its request for the production of documents in a coverage dispute arising from the alleged theft of an insured's employee stock ownership plan assets by a former employee (Barbie...

Mealey's Insurance - Intervenor's Request To Amend Pleadings Against Insurer Untimely, Judge Says

GREENBELT, Md. - An intervening party in an insurance company's lawsuit accusing an insured of making material misrepresentations on a policy application cannot amend its pleadings to change admissions and add counterclaims, a federal judge in Maryland ruled Nov. 13, finding that the request was...

Mealey's Insurance - Denial Of LTD Claim Supported By Evidence, Pennsylvania Federal Judge Says

PHILADELPHIA - A Pennsylvania federal judge on Nov. 13 denied a disability claimant's motion for summary judgment and granted a disability plan's motion for summary judgment after determining that the plan's denial of the claim for long-term disability benefits was not arbitrary and capricious...

Mealey's Insurance - Magistrate Judge Denies Deadline Extension In Defects Insurance Coverage Dispute

ORLANDO, Fla. - In an insurance coverage dispute over construction defects, a Florida federal magistrate judge on Nov. 13 denied a developer's request for an extension of deadline on the serving of expert disclosures (WaterMark Construction L.P. v. Southern-Owners Insurance Co., et al., No. 17-1814...

Mealey's Insurance - Court Affirms No Coverage For Student's Sexual Assault Lawsuit Against Teacher

HARRISBURG, Pa. - The Pennsylvania Superior Court on Nov. 14 affirmed a lower court's ruling that an insurer has no duty to defend or indemnify a music teacher against a student's lawsuit alleging sexual assault (Old Republic Insurance Company v. Matthew Stevens, et al., No. 1903 MDA 2016, Pa...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Denying Property Damage Claim, Panel Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 15 affirmed a district court's ruling in favor of an insurer in a property damage coverage dispute after finding that the evidence establishes that the insurer did not act in bad faith because it adequately investigated the insured's...

Mealey's Insurance - Termination Of LTD Benefits Supported By Medical Evidence, Appeals Panel Says

PHILADELPHIA - A district court did not err in finding that a disability insurer's termination of long-term disability benefits under the plan's any-occupation standard was not arbitrary and capricious because the termination is supported by substantial evidence, the Third Circuit U.S. Court...

Mealey's Insurance - 1st Circuit: Insured Not Entitled To Separate Counsel To Defend Against Suit

BOSTON - The First Circuit U.S. Court of Appeals on Nov. 15 found that the presence of an embezzlement counterclaim in a dispute between an employer insured and its former employee fails to generate a conflict of interest that entitles the insured to separate counsel to defend against an underlying wrongful...

Mealey's Insurance - Questions Of Fact Exist As To Whether Insurer Acted In Bad Faith In Handling Claim

SEATTLE - A Washington federal judge on Nov. 14 denied an insurer's motion to dismiss a bad faith claim alleged against an insurer by an insured in an auto coverage dispute suit after determining that questions of fact exists as to whether the insurer acted reasonably in handling the insured's...

Mealey's Insurance - Panel Reverses Summary Judgment On Insurer's Duty To Defend Defect Claims

SAN DIEGO - A California appeals panel on Nov. 14 reversed an entry of summary judgment to an insurer on its duty to defend construction defect claims under subcontractors' policies but affirmed summary judgment to a second insurer, finding that it has no duty to defend (McMillin Management Services...

Mealey's Insurance - Known Defects Relieve Insurer Of Duty To Pay For Repairs, Panel Finds

LOS ANGELES - A homeowner "who is aware, long before a rainstorm occurs and causes damage, of possible leakage" caused by construction defects cannot reasonably expect an insurer to pay for repairs on the theory that rainwater, and not the defects, caused the damage, a California appeals panel...

Mealey's Insurance - Insurer Did Not Act In Bad Faith By Only Paying For A Portion Of Floor Replacement

PHILADELPHIA - A Pennsylvania federal judge on Nov. 15 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds failed to prove that the insurer acted unreasonably by paying for only a portion of the insureds' kitchen floor following a flood at the insureds'...

Mealey's Insurance - California Federal Judge Transfers Disability Suit To New Jersey Federal Court

SAN FRANCISCO - A California federal judge on Nov. 16 granted a disability insurer's motion to transfer a disability claimant's suit to New Jersey federal court after determining that New Jersey is the more convenient forum for the parties and for the witnesses (Ernest Tarasovsky v. The Guardian...