LexisNexis® Legal Newsroom
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...

Mealey's Insurance - Carrier Exception To Exclusion Applies To Allow Coverage For Stolen Wine/Liquor

NEW YORK - Rejecting an insurer's appeal, the Second Circuit U.S. Court of Appeals on Sept. 21 affirmed a lower federal court's finding that a carrier exception to an insurance policy's dishonest acts exclusion applies to allow coverage for an insured's $1,155,480 claim arising from 4...

Mealey's Insurance - Mental Illness Limitation Is Not Valid Under Montana's Mental Health Parity Law

BILLINGS, Mont. - A Montana federal judge on Sept. 20 granted a disability claimant's motion for summary judgment after determining that Montana's mental health parity law requires the plan to provide the claimant with the same benefits for her mental illness as it would if her disability were...

Mealey's Insurance - Homeowners Say Reinsurer, Mortgagors Are Not Entitled To Judgment On RESPA Claim

PITTSBURGH - In a mortgage insurance reinsurance scheme case, mortgagors and a reinsurer are not entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under Third Circuit U.S. Court of Appeals law, homeowners say in a brief filed Sept. 19 in a Pennsylvania federal court (Linda...

Mealey's Insurance - Ohio Federal Judge Denies Motion To Dismiss, Says Release Was Pollution Incident

COLUMBUS, Ohio - An Ohio federal judge on Sept. 19 denied an insurer's motion to dismiss after determining that the insured sufficiently alleged facts to support its claim that the release of hazardous waste was a pollution incident under the terms of the policy at issue (Olymbec USA LLC v. Aspen...

Mealey's Insurance - Reinsurer Asks Federal Court To Allow Amendment To Assert Statute Of Limitations Defense

PHILADELPHIA - A reinsurer argues in a Sept. 20 reply brief that a Pennsylvania federal court should allow it leave to amend its answer to an insurer's breach of contract counterclaims so that it can assert a statute of limitations defense and that it did not agree to reinsure an excess umbrella...

Mealey's Insurance - Insurer Seeks Judgment On Bank's Misrepresentation Of Reinsurance Funds Mishandling

COLUMBIA, S.C. - An insurer on Sept. 20 moved for summary judgment in a South Carolina federal court on its negligent misrepresentation claim against a bank accused of mishandling reinsurance funds and also opposes the bank's request for summary judgment "on the basis of a cherry-picked and...

Mealey's Insurance - 10th Circuit Affirms Dismissal Of Insurer's Declaratory Judgment Suit

DENVER - The 10th Circuit U.S. Court of Appeals on Sept. 20 affirmed a lower federal court's grant of an insurer's motion to dismiss its declaratory judgment lawsuit challenging coverage for a dispute over the right to control a church, rejecting the appellants' argument that the insurer...

Mealey's Insurance - Judge: Homeowners' Claims Against Insurer Are Barred By Tract Housing Exclusion

TACOMA, Wash. - A Washington federal judge on Sept. 19 granted a motion for summary judgment filed by an insurer in an insurance coverage suit brought by homeowners claiming faulty construction, finding that a tract housing exclusion applies (Maureen Hay, et al. v. American Safety Indemnity Company,...

Mealey's Insurance - Judge: Transfer Timing Doesn't Negate Health Insurance Anti-Assignment Clause

TRENTON, N.J. - The fact that an insured assigned rights after incurring medical expenses does not change the enforceability of an anti-assignment provision in an Employment Retirement Income Security Act of 1974 case, a federal judge in New Jersey held Sept. 21 (Kayal Orthopaedic Center P.C., et al...