LexisNexis® Legal Newsroom
Mealey's Insurance - Appeals Panel Addresses Defamation Claims Against Former N.Y. Attorney General

NEW YORK - American International Group Inc.'s (AIG) former chief executive officer sufficiently alleged a defamation claim based on several public statements made by New York's former attorney general, a New York appeals panel affirmed Sept. 13 (Maurice R. Greenberg v. Eliot L. Spitzer, No....

Mealey's Insurance - No Professional Liability Coverage Owed For Harassment, Discrimination Claims

NEWARK, N.J. - A New Jersey federal magistrate on Sept. 14 found that professional liability insurance coverage was not triggered because underlying sexual harassment and discrimination claims do not arise out of the insured's performance of ambulance services, granting the insurer's motion for...

Mealey's Insurance - Federal Judge Refuses To Dismiss Diminished Value Suit Arising From Hail/Wind Damage

MACON, Ga. - A Georgia federal judge on Sept. 15 denied a homeowners insurer's motion to dismiss a lawsuit alleging that it committed breach of contract by refusing to assess and pay for the diminished value of the insureds' home caused by wind and/or hail damage (Tonya Long v. State Farm Fire...

Mealey's Insurance - Insurer Is Responsible For 25 Percent Of Lead-Paint Judgment, Federal Judge Says

BALTIMORE - A Maryland federal judge on Sept. 14 said an insurer is responsible for paying for 25 percent of a judgment entered against its insured in an underlying lead-paint injury case after determining that the allocation must be calculated based on the time period during which the tenant lived in...

Mealey's Insurance - Company Awarded Judgment After Expert For Insurer Seeking Subrogation Excluded

GREENBELT, Md. - A Maryland federal judge on Sept. 15 awarded summary judgment to a utility contractor on an insurance company's claim that the contractor's negligence caused a house fire, after excluding the insurer's expert from testifying about the standard of care for the work at issue...

Mealey's Insurance - 1st Circuit Allows Negligence Claims Against U.S. In Oil Spill Coverage Dispute

BOSTON - The First Circuit U.S. Court of Appeals on Sept. 15 reversed a district court's dismissal of admiralty and maritime negligence claims filed against the United States in an oil spill dispute after determining that the negligence claims are viable under the Suits in Admiralty Act (Ironshore...

Mealey's Insurance - Pediatric Firm Can Pursue Federal, State False Claims Act Allegations, Judge Says

NEWARK, N.J. - A firm of pediatric doctors can pursue allegations that a skilled nursing and rehabilitation facility violated the False Claims Act, the New Jersey False Claims Act (NJFCA) and the New York False Claims Act (NYFCA) for unlawfully billing Medicare and Medicaid as primary payers rather than...

Mealey's Insurance - Award Of Attorney Fees Warranted As Disability Claimant Achieved Some Success

SAN FRANCISCO - A California federal judge on Sept. 14 awarded a disability claimant more than $100,000 in attorney fees after determining that the award was warranted because the claimant achieved "some degree" of success on the merits (Robert Bosley v. Metropolitan Life Insurance Co., No...

Mealey's Insurance - Ohio Couple Sentenced, Ordered To Turn Over Home For Insurance Fraud

COLUMBUS, Ohio - A federal judge in Ohio on Sept. 18 sentenced a couple who owned a home health care company for their roles in an insurance fraud scheme that involved submitting falsified training sheets for nurses and aides and required them to turn over the $1 million home they built with the proceeds...

Mealey's Insurance - Judge: No Directors, Officers Liability Coverage Owed For Overtime Pay Dispute

SHERMAN, Texas - A Texas federal judge on Sept. 18 adopted a magistrate's report that recommended granting an insurer's motion for summary judgment in a dispute over directors and officers liability coverage for underlying claims that the insured failed to pay overtime and improperly categorized...

Mealey's Insurance - Illinois Federal Judge Says Disability Insurer Reasonably Terminated Benefits

CHICAGO - A disability insurer did not breach its contract or act unreasonably by terminating a claimant's total disability benefits because the evidence shows that the claimant was able to undertake a number of mentally and physically demanding activities, an Illinois federal judge said Sept. 14...

Mealey's Insurance - Nevada Federal Judge Says Bad Faith Claim, Unfair Practices Claim Can Stand

LAS VEGAS - A Nevada federal judge on Sept. 19 denied an insurer's motion for summary judgment as it pertained to a plaintiff's claims for unfair settlement practices and bad faith because the plaintiff provided sufficient evidence to support the claims (Melinda Booth Dogra et al., v. Liberty...

Mealey's Insurance - Judge Adjourns Fraud Trial So Defendant Can Review Recorded Sales Calls

NASHVILLE, Tenn. - A federal judge in Tennessee on Sept. 19 granted a motion filed by a man accused of orchestrating a telemarketing scheme to sell insurance products that were not major medical health insurance, finding that he should be allowed to review recordings of approximately 100,000 sales calls...

Mealey's Insurance - Bifurcation Of Bad Faith Claim Is Not Warranted, Pennsylvania Federal Judge Says

WILLIAMSPORT, Pa. - A Pennsylvania federal judge on Sept. 18 denied an automobile insurer's motion to sever and stay its insureds' bad faith claim after determining that bifurcation would not promote judicial economy and that the insurer would not be prejudiced if the claims are tried together...

Mealey's Insurance - Breach Of Fiduciary Duty Claim Dismissed In Dispute Over Sham Reinsurer Scheme

NEW YORK - In a dispute over two alleged schemes involving a "sham reinsurance company" and a "sham medical billing company," a New York justice on Sept. 15 dismissed claims by an investment fund for breach of fiduciary duty and aiding and abetting breach of fiduciary duty and unjust...

Mealey's Insurance - Judge: Bank Has Right To Reimbursement From Insurer For Post-Merger Defense Costs

NEWARK, N.J. - A New Jersey federal judge on Sept. 18 found that a bank involved in a corporate merger has a right to reimbursement under a directors and officers liability insurance policy for its post-merger defense costs vis-a-vis the independent directors involved in a shareholder class action (BCB...

Mealey's Insurance - Federal Judge Schedules Jury Trial In Reinsurance Suit Over Asbestos Claims

SYRACUSE, N.Y. - In a reinsurance dispute over coverage for underlying asbestos injury claims, an insurer writes in a letter filed in a New York federal court on Sept. 19 that it rejects a reinsurer's suggestion that it dismiss the case without prejudice because the case presents a justiciable controversy...

Mealey's Insurance - Judge Bifurcates Pipe Company's Counterclaims Against Insurers, Denies Stay

SEATTLE - A federal judge in Washington on Sept. 20 agreed to bifurcate the proceedings in a declaratory judgment suit brought by two insurers against a pipe company, finding that the defendant company's extracontractual counterclaims against the insurance companies can proceed to trial and that...

Mealey's Insurance - Insurance Fraud Defendants' Emailed Defenses Were Improper, Judge Rules

TRENTON, N.J. - A federal judge in New Jersey on Sept. 19 struck defenses submitted via email by three defendants accused by Government Insurance Co., GEICO Indemnity Co., GEICO General Insurance Co. and GEICO Casualty Co. (collectively GEICO) of submitting approximately $3.3 million in false insurance...

Mealey's Insurance - Tennessee Federal Judge Says Bifurcation Appropriate For Trial Of Bad Faith Claim

MEMPHIS, Tenn. - Bifurcation of a bad faith claim for trial in a coverage dispute over damaged computer hard drives is appropriate because judicial economy will be promoted and prejudice against the insurer will be avoided, a Tennessee federal judge said Sept. 18 in granting the insurer's motion...

Mealey's Insurance - No Coverage Owed For Damages Caused By Collapsed Liquid Propane Tanks

WILLIAMSPORT, Pa. - No coverage is afforded for damages to an insured's property caused by the collapse of liquid propane tanks into a sinkhole because the sinkhole was caused by excess rainfall, which is clearly precluded under the policy's flood exclusion, a Pennsylvania federal judge said...

Mealey's Insurance - Federal Judge Denies Limiting Discovery In Workers' Comp Suit With Insolvent Insurer

ATLANTA - In a dispute over whether workers' compensation policies insured certain staffing companies for claims also tendered to an insolvent insurer, a Georgia federal judge on Sept. 20 denied a proposed case management approach for limited discovery (Georgia Insurers Insolvency Pool v. Sussex...

Mealey's Insurance - Insured Offered Sufficient Evidence In Support Of Breach Of Contract, Bad Faith Claims

SCRANTON, Pa. - A Pennsylvania federal judge on Sept. 19 denied an insurer's motion to dismiss as it pertained to the insured's claims for breach of contract and bad faith because the insured presented sufficient evidence that she sustained damages as a result of the insurer's conduct in...

Mealey's Insurance - Subcontractor's Insurer To Pay $2M In Defense Costs To Contractor And Its Insurer

CHARLOTTE, N.C. - A North Carolina federal judge on Sept. 18 ordered a subcontractor's insurer to pay $1,586,473.43 plus prejudgment interest to a contractor's insurer and $450,113.47 plus prejudgment interest to the contractor as reimbursement for the defense costs they incurred in an underlying...

Mealey's Insurance - Insurer Files Answer, Wants Immediate Review Of ACA Lactation Coverage Ruling

SAN FRANCISCO - In a motion seeking interlocutory review, an insurer argues that whether the Patient Protection and Affordable Care Act (ACA) requires an insurer to provide access to lactation services or merely forbids financial barriers to obtaining such services is exactly the type of question the...