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Mealey's Insurance - Florida Panel Conditionally Grants Appellate Attorney Fees In Sinkhole Dispute

LAKELAND, Fla. - The Second District Florida Court of Appeal on Aug. 17 vacated a June 10 order that denied insureds' amended motion for appellate attorney fees in a sinkhole coverage dispute and entered an order that grants their motion for appellate attorney fees conditioned upon their prevailing...

Mealey's Insurance - 'Your Work' Exclusion Bars Water Damage Caused By Insured's Work, Judge Says

HAMMOND, Ind.- A "your work" exclusion in a commercial general liability insurance policy precludes coverage for claims for real property structural damage and diminished value arising out of an insured's alleged faulty work that led to water intrusion in homes, an Indiana federal judge...

Mealey's Insurance - Insured's Defective Work Is Not An 'Occurrence,' Ohio Federal Judge Finds

TOLEDO, Ohio - An insured's alleged faulty workmanship does not constitute an "occurrence," an Ohio federal judge ruled Aug. 16, also finding that a "total pollution" exclusion relieves a commercial general liability insurer of its duty to defend and indemnify allegations that...

Mealey's Insurance - Judge: No Coverage For Claims Arising From Purchase Of Fuel With Invalid ID Numbers

EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 18 entered judgment in favor of an insurer after finding that it has no duty to defend or indemnify against claims arising from the insured's purchase of biodiesel fuel with invalidated renewable identification numbers (RINs) (Superior Fuels...

Mealey's Insurance - Assigned Claims Were` Released By Assignors, Judge Says In Fiduciary Liability Suit

JACKSON, Miss. - A Mississippi federal judge held Aug. 16 that assigned claims against a fiduciary liability insurer were released by the assignors in a confidential settlement agreement and release, granting the insurer's motion to dismiss a breach of contract and bad faith lawsuit (Vincent Sealey...

Mealey's Insurance - Federal Judge: Fact Issues Exist As To Breach Of Contract, Bad Faith Claims

OKLAHOMA CITY - An Oklahoma federal judge on Aug. 16 found that a genuine dispute of material fact precludes summary judgment in favor of a homeowners insurer on insureds' claims for breach of contract and bad faith in a dispute over coverage for tornado damage, denying the insurer's motion for...

Mealey's Insurance - Contamination Caused By Defective Plastic Bag Is An Occurrence, 8th Circuit Says

ST. LOUIS - The contamination of landscaping materials with plastic from defective storage bags is an occurrence under the terms of an insurance policy, the Eighth Circuit U.S. Court of Appeals said Aug. 19 in reversing a district court's judgment in favor of the insurer (Decker Plastics Inc. v....

Mealey's Insurance - Judge: Adjuster Properly Joined In Bad Faith Lawsuit

DALLAS - An insurance adjuster was properly joined in an insurance bad faith and breach of contract lawsuit because an insured has pleaded a claim against the adjuster for violation of the Texas Insurance Code, destroying diversity jurisdiction, a federal judge in Texas ruled Aug. 22 in remanding the...

Mealey's Insurance - Federal Judge Dismisses Claims Against Third-Party Defendant Insurers

FORT WAYNE, Ind. - An Indiana federal judge on Aug. 19 dismissed an insured's third-party complaint in an environmental contamination coverage dispute against a number of third-party defendant insurers after determining that the insured failed to identify any policies that were allegedly breached...

Mealey's Insurance - Appeals Court Grants Dismissal Of Asbestos-Related Reinsurer Arbitration Row

NEW YORK - The Second Circuit U.S. Court of Appeals on Aug. 19 granted the stipulation of dismissal of an appeal between parties to an asbestos personal injury related reinsurance arbitration dispute (Arrowood Indemnity Co. v. Equitas Insurance Limited, et al., No. 15-2756, 2nd Cir.).

Mealey's Insurance - Only 3 Documents Sought By Insured Must Be Produced, Illinois Federal Judge Says

CHICAGO - An Illinois federal judge on Aug. 18 determined that three of 21 documents sought by an insured in an environmental contamination and chemical exposure coverage lawsuit are not privileged materials and must be produced by the insurer (Velsicol Chemical LLC v. Westchester Fire Insurance Co....

Mealey's Insurance - Denial Of Claim Was Proper; Lawsuit Was Untimely Filed, 8th Circuit Panel Determines

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Aug. 22 affirmed a disability insurer's denial of a long-term disability (LTD) claim on the basis that the claimant's lawsuit was not filed within the plan's contractual limitations period (Jeff Schmitz v. Sun Life Assurance Company...

Mealey's Insurance - 6th Circuit Majority Says Remand To Plan Administrator Was Not Violation Of Mandate

CINCINNATI - The majority of a Sixth Circuit U.S. Court of Appeals panel on Aug. 19 determined that remanding a disability retirement claim to the plan administrator was not an abuse of discretion because the remand remained within the purview of an earlier mandate issued by the Sixth Circuit (Kyle D...

Mealey's Insurance - Judge Trims Third-Party Claims In Insurance Bad Faith Lawsuit

RENO, Nev. - A federal judge in Nevada on Aug. 22 substantially denied an insurer's motion to dismiss third-party claims in an insurance bad faith lawsuit but held that dismissal of the third parties' statutory bad faith claim is proper because such claims may not be brought by third parties...

Mealey's Insurance - Judge Refuses To Stay Woman's Sentence For Fraud Pending Appeal

ABINGDON, Va. - A federal judge in Virginia on Aug. 22 denied a motion to stay filed by a doctor who was found guilty of health care fraud, finding that her sentence should not be suspended pending her appeal because it does not raise substantial issues of law (United States of America v. Beth Palin...

Mealey's Insurance - Magistrate Judge: California Law Allows Insurer To Rescind Policy

FRESNO, Calif. - An insurance company's motion for default judgment in a suit where it seeks to rescind a commercial insurance property policy issued to a man who claims that a warehouse he owned was robbed should be granted, a federal magistrate judge in California recommended Aug. 22, noting that...

Mealey's Insurance - Insurer: Prospective Intervenor Should Not Be Allowed Into Arbitration Suit

NEW YORK - An insurer filed its opposition to a motion to intervene in a reinsurance arbitration dispute in a federal court in New York on Aug. 23, arguing that granting the intervention would undermine the purpose of arbitrating instead of litigating the underlying claims (Certain Underwriting Members...

Mealey's Insurance - Insurer: Nonparty Should Not Be Allowed To Intervene In Reinsurance Case

SYRACUSE, N.Y. - An insurer told a federal court in New York on Aug. 19 that another insurer has no right to intervene in a reinsurance dispute with the intention of challenging a motion to seal certain discovery documents (Utica Mutual Insurance Company v. Munich Reinsurance America, Inc., No. 12-cv...

Mealey's Insurance - 11th Circuit: Jury Adequately Instructed On Different Conspiracy Charges

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on Aug. 23 affirmed a woman's conviction on counts of conspiracy to defraud the United States and conspiracy to commit health care fraud, holding that instructions provided to the jury were not confusing (United States of America v. Carmen Gonzalez...

Mealey's Insurance - Illinois Court Properly Found Contamination Suit Should Be Resolved In New Jersey

CHICAGO - The First District Illinois Appellate Court on Aug. 22 determined that a trial court did not err in dismissing an environmental contamination coverage suit filed by excess insurers because New Jersey, where a similar suit is pending, is the more appropriate venue to resolve the dispute (American...

Mealey's Insurance - Reliance Liquidator Recommends Allowance Of $8 Million In Claims

HARRISBURG, Pa. - The liquidator of Reliance Insurance Co. asked a Pennsylvania court on Aug. 23 to approve a report and recommendation regarding more than $8 million of claims (In re: Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Insurance - London Market Reinsurers Ask Court To Deny Motion To Intervene

NEW YORK - A group of London market reinsurers on Aug. 23 told a federal court in New York that it should not allow the alleged owner of a reinsured to intervene in a reinsurance arbitration dispute because the motion to intervene is untimely (Certain Underwriting Members at Lloyd's, London v. Insurance...

Mealey's Insurance - Panel: Insurers Are Not Jointly, Severally Liable For $2.4M Defects Arbitration Award

DALLAS - Although two commercial general liability insurers have a duty to indemnify insureds for an underlying construction defects arbitration award, a Texas appeals panel ruled Aug. 25 that a trial court erred in finding that the insurers are jointly and severally liable for the $2.4 million award...

Mealey's Insurance - Nationwide Says There Is No Reason To Vacate Reinsurance Arbitration Award

NEW YORK - Nationwide Insurance Co., a party to a reinsurance agreement, told a federal court in New York on Aug. 25 that an arbitration panel umpire was not biased and there is no basis for vacating an arbitration award (Yosemite Insurance Company v. Nationwide Insurance Company, No. 16-cv-05290, S...

Mealey's Insurance - Judge: Insurer Has No Duty To Defend Window Maker In Defects Suit

MADISON, Wis. - A federal judge in Wisconsin on Aug. 25 ruled that an insurance company has no duty to defend a manufacturer accused of making allegedly defective windows, finding that the Wisconsin Supreme Court's ruling in Wisconsin Pharmacal Co. LLC v. Nebraska Cultures of California Inc. (2016...