LexisNexis® Legal Newsroom
Mealey's Insurance - Professional Liability Insurer Owes Defense To 2 Of 3 Au Pair Placement Agencies

DENVER - A Colorado federal judge on May 17 found that a professional liability insurer has a duty to defend two out of three insureds against underlying claims that they operated as a cartel and colluded to fix standard au pair wages (Colony Insurance Co. v. Expert Group International Inc., et al.,...

Mealey's Insurance - Connecticut Federal Judge Says Questions Of Fact Exist In Water, Ice Damage Suit

BRIDGEPORT, Conn. - A Connecticut federal judge on May 17 partially denied an insurer's motion for summary judgment after determining that questions of fact remain regarding whether damage to a freezer floor is barred by the policy's earth movement exclusion (Thurston Foods Inc. v. Wausau Business...

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 - 4 Sentenced For Roles In Fraudulently Billing Medicare For Services Not Provided

CLEVELAND - Four individuals were sentenced by a federal judge in Ohio on May 19 for their roles in an $8 million Medicare fraud scheme that involved forging documents and billing the insurer for medical services that were not provided (United States of America v. Delores L. Knight, et al., No. 15-cr...

Mealey's Insurance - Insolvent Insurer's Insured Solely Liable For Collision, Appeals Panel Concludes

SHREVEPORT, La. - In a lawsuit against a propane gas truck driver and his insolvent insurer, a Louisiana appeals panel on May 17 affirmed partial summary judgment to a postal worker on the issue of liability because the truck driver was 100 percent at fault for a collision with the postal worker, who...

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 - 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...