LexisNexis® Legal Newsroom
Mealey's Insurance - DOJ: Michigan Doctor Sentenced To 19 Years For Fraud, Distributing Drugs

DETROIT - A federal judge in Michigan on May 18 sentenced a doctor to 19 years in prison after the doctor was found guilty of conspiracy to distribute prescription drugs and conspiracy to commit health care fraud, the U.S. Department of Justice announced (United States of America v. Damon Mason, et al...

Mealey's Insurance - Judge Orders Reinsurer To Raise Objection To Stay Pending Arbitration Of $1.3M Lawsuit

MONTGOMERY, Ala. - An Alabama federal judge on May 18 ordered a reinsurer to show cause as to why he should not grant a nonprofit public insurer's motion to stay a $1.3 million lawsuit against the reinsurer pending arbitration of the matter (Alabama Municipal Insurance Corp. v. Munich Reinsurance...

Mealey's Insurance - Defendants Oppose Request For Discovery Of Tax Returns, Bank Records As To Reinsurer

ATLANTA - In a case over fraudulent transfers of reinsurance funds, various individual defendants in a May 18 brief oppose a request by insurers for a Georgia federal court to compel them to provide tax returns and bank account records pertaining to a reinsurer because the motion is premature (Canal...

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 - Psychiatrist Found Guilty Of 5 Counts Of Health Care Fraud For $158M Scheme

HOUSTON - A psychiatrist in Texas was found guilty by a federal jury on May 23 of five counts of health care fraud and one count of conspiracy to commit health care fraud for his role in a $158 million fraud scheme that involved submitting fraudulent claims for partial hospitalization program (PHP) services...

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...

Mealey's Insurance - Disability Claimant's Suit Stayed To Allow Claimant To Attempt To Enforce Subpoena

LEXINGTON, Ky. - A Kentucky federal judge on May 23 granted a disability claimant's motion to stay to allow the claimant additional time to enforce a subpoena in Massachusetts federal court against a Massachusetts-based company whose services were used by a disability insurer during the handling...

Mealey's Insurance - Parties Hold Settlement Conference In New York Federal Reinsurance Case

UTICA, N.Y. - Fireman's Fund Insurance Co. (FFIC) and Utica Mutual Insurance Co. on May 23 held a settlement conference in their reinsurance dispute concerning an underlying $325 million settlement of asbestos claims asserted against an insured (Utica Mutual Insurance Company v. Fireman's Fund...

Mealey's Insurance - Magistrate Judge Allows In Part Documents On Asbestos Losses In Reinsurance Dispute

BOSTON - Granting in part a reinsurer's request for documents relating to an insurer's allocation of an insured's asbestos losses to its reinsurers, a Massachusetts federal magistrate judge on May 26 ordered the insurer to produce facultative certificates for a few similarly situated reinsurers...

Mealey's Insurance - Judge: Contractor's Misrepresentations Warrant Voiding Policy

CENTRAL ISLIP, N.Y. - A federal judge in New York on May 24 entered summary judgment in favor of Scottsdale Insurance Co., finding that misrepresentations made by a carpentry contractor on its policy application were material (Scottsdale Insurance Company v. Pine Construction Corp., No. 15-cv-4764, E...

Mealey's Insurance - District Court Correctly Found Sewage Is Not A Pollutant, Appellee Tells 11th Circuit

ATLANTA - An Alabama federal judge correctly determined that a policy's total pollution exclusion cannot be asserted as a bar to coverage for two underlying lawsuits alleging injuries from sewage exposure because the interpretation is consistent with Alabama law, an appellee argues in a May 25 brief...

Mealey's Insurance - Judge Refuses To Dismiss Insurers' Class Claims For Damages After Subrogation

LOS ANGELES - A California federal judge on May 24 denied a motion filed by the makers of a defective dehumidifier that caused fires to dismiss class action claims for violation of California's unfair competition law (UCL) and negligence and other claims and ordered them to show cause as to why they...

Mealey's Insurance - Woman Loses Bid For Habeas Relief Based On Fire Expert's Arson Finding

DETROIT - A Michigan federal judge on May 25 upheld the conviction of a woman for setting fire to her house to collect insurance money after rejecting her challenge to an expert's opinion that the fire was caused by arson (Audrey Pruitt v. Anthony Stewart, No. 2:15-cv-10812, E.D. Mich., 2017 U.S...