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Mealey's Insurance - Intervenor's Request To Amend Pleadings Against Insurer Untimely, Judge Says

GREENBELT, Md. - An intervening party in an insurance company's lawsuit accusing an insured of making material misrepresentations on a policy application cannot amend its pleadings to change admissions and add counterclaims, a federal judge in Maryland ruled Nov. 13, finding that the request was...

Mealey's Insurance - Denial Of LTD Claim Supported By Evidence, Pennsylvania Federal Judge Says

PHILADELPHIA - A Pennsylvania federal judge on Nov. 13 denied a disability claimant's motion for summary judgment and granted a disability plan's motion for summary judgment after determining that the plan's denial of the claim for long-term disability benefits was not arbitrary and capricious...

Mealey's Insurance - Magistrate Judge Denies Deadline Extension In Defects Insurance Coverage Dispute

ORLANDO, Fla. - In an insurance coverage dispute over construction defects, a Florida federal magistrate judge on Nov. 13 denied a developer's request for an extension of deadline on the serving of expert disclosures (WaterMark Construction L.P. v. Southern-Owners Insurance Co., et al., No. 17-1814...

Mealey's Insurance - Court Affirms No Coverage For Student's Sexual Assault Lawsuit Against Teacher

HARRISBURG, Pa. - The Pennsylvania Superior Court on Nov. 14 affirmed a lower court's ruling that an insurer has no duty to defend or indemnify a music teacher against a student's lawsuit alleging sexual assault (Old Republic Insurance Company v. Matthew Stevens, et al., No. 1903 MDA 2016, Pa...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Denying Property Damage Claim, Panel Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 15 affirmed a district court's ruling in favor of an insurer in a property damage coverage dispute after finding that the evidence establishes that the insurer did not act in bad faith because it adequately investigated the insured's...

Mealey's Insurance - Termination Of LTD Benefits Supported By Medical Evidence, Appeals Panel Says

PHILADELPHIA - A district court did not err in finding that a disability insurer's termination of long-term disability benefits under the plan's any-occupation standard was not arbitrary and capricious because the termination is supported by substantial evidence, the Third Circuit U.S. Court...

Mealey's Insurance - 1st Circuit: Insured Not Entitled To Separate Counsel To Defend Against Suit

BOSTON - The First Circuit U.S. Court of Appeals on Nov. 15 found that the presence of an embezzlement counterclaim in a dispute between an employer insured and its former employee fails to generate a conflict of interest that entitles the insured to separate counsel to defend against an underlying wrongful...

Mealey's Insurance - Questions Of Fact Exist As To Whether Insurer Acted In Bad Faith In Handling Claim

SEATTLE - A Washington federal judge on Nov. 14 denied an insurer's motion to dismiss a bad faith claim alleged against an insurer by an insured in an auto coverage dispute suit after determining that questions of fact exists as to whether the insurer acted reasonably in handling the insured's...

Mealey's Insurance - Panel Reverses Summary Judgment On Insurer's Duty To Defend Defect Claims

SAN DIEGO - A California appeals panel on Nov. 14 reversed an entry of summary judgment to an insurer on its duty to defend construction defect claims under subcontractors' policies but affirmed summary judgment to a second insurer, finding that it has no duty to defend (McMillin Management Services...

Mealey's Insurance - Known Defects Relieve Insurer Of Duty To Pay For Repairs, Panel Finds

LOS ANGELES - A homeowner "who is aware, long before a rainstorm occurs and causes damage, of possible leakage" caused by construction defects cannot reasonably expect an insurer to pay for repairs on the theory that rainwater, and not the defects, caused the damage, a California appeals panel...

Mealey's Insurance - Insurer Did Not Act In Bad Faith By Only Paying For A Portion Of Floor Replacement

PHILADELPHIA - A Pennsylvania federal judge on Nov. 15 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds failed to prove that the insurer acted unreasonably by paying for only a portion of the insureds' kitchen floor following a flood at the insureds'...

Mealey's Insurance - California Federal Judge Transfers Disability Suit To New Jersey Federal Court

SAN FRANCISCO - A California federal judge on Nov. 16 granted a disability insurer's motion to transfer a disability claimant's suit to New Jersey federal court after determining that New Jersey is the more convenient forum for the parties and for the witnesses (Ernest Tarasovsky v. The Guardian...

Mealey's Insurance - Pa. High Court Denies Review Of Ruling On $1M Claim Against Insurance Guarantor

HARRISBURG, Pa. - The Pennsylvania Supreme Court on Nov. 16 declined to review a lower court's vacating of a trial court finding that a $1 million default judgment claim against the state's insurance guarantor was time-barred (James Green v. Pennsylvania Property and Casualty Insurance Guaranty...

Mealey's Insurance - Fact Issues Exist On Cause Of Claimant's Disability, 11th Circuit Panel Says

ATLANTA - The 11th Circuit U.S. Court of Appeals on Nov. 17 remanded a disability claimant's suit after determining that a district court erred in granting summary judgment in favor of the insurer because genuine issues of material fact exist regarding the cause of the claimant's disability and...

Mealey's Insurance - Washington Federal Judge Says Questions Of Fact Exist In Water Damages Suit

SEATTLE - A Washington federal judge on Nov. 16 determined that questions of material fact exist regarding the application of an insurer's exclusions for deterioration and rot to an insured condominium association's claim for water intrusion damages that occurred over time to the exterior cladding...

Mealey's Insurance - Insurer Must Cover Damage By Wind, Not Construction Defects, Appeals Panel Says

DETROIT - An insurer is responsible to cover damage from wind-driven rain to condominium units but is not responsible for damage caused by construction defects, a Michigan appeals panel held Nov. 16, reversing summary disposition to the insurer (Walters Beach Condominium Association v. Home-Owners Insurance...

Mealey's Insurance - No Additional Coverage Owed For Mold Damage, New Jersey Panel Says

TRENTON, N.J. - An insurer owes no additional coverage to its insureds for mold damages caused by a leaking water pipe in the wall of a shower because the policy at issue clearly limited coverage for mold damage to $10,000 under a mold rider, the Appellate Division of the New Jersey Superior Court said...

Mealey's Insurance - Offset Was Not Abuse Of Discretion, 9th Circuit Panel Says In Affirming

SAN FRANCISCO - A disability plan administrator did not abuse its discretion in offsetting a claimant's long-term disability (LTD) benefits to account for Social Security disability income (SSDI) benefits that she receives for her dependents, the Ninth Circuit U.S. Court of Appeals said Nov. 17 in...

Mealey's Insurance - No Coverage Owed For Underlying Suit Arising Out Of Cleanup Of Lead Paint Dust

ST. LOUIS - No coverage is afforded for an underlying suit alleging claims related to the cleanup of lead dust after the removal of lead paint from a high school because the policy's pollution endorsement applies only in limited circumstances and the policy's lead exclusion clearly bars coverage...

Mealey's Insurance - Judge Resolves Motions To Exclude Testimony, Evidence In Reinsurer, Insurer Dispute

UTICA, N.Y. - In a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 16 addressed a number of motions filed by an insurer and a reinsurer to preclude expert testimony and certain arguments from trial (Utica Mutual Insurance Co. v. Fireman's Fund Insurance...

Mealey's Insurance - New York High Court Reverses Barring Of Derivative Claims By Reinsurer's Shareholder

NEW YORK - The New York Court of Appeals determined Nov. 20 that a lower court erred in its application of a rule under Cayman law barring a reinsurer's shareholder from bringing derivative claims against the reinsurer, its directors and its affiliates (Paul Davis v. Scottish Re Group Ltd., et al...

Mealey's Insurance - 3rd Circuit Affirms Ruling In Favor Of Insurer In Superstorm Sandy Dispute

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 17 affirmed a district court's summary judgment ruling in favor of an insurer in a Superstorm Sandy coverage dispute after determining that the insurer fulfilled the requirements of accord and satisfaction when it sent its insureds a...

Mealey's Insurance - Faulty Work Claims Against Insured Are Not Covered, Georgia Federal Judge Says

ATLANTA - A homeowner's negligence claims arising out of an insured contractor's faulty workmanship are not covered under a commercial general liability insurance policy, a Georgia federal judge ruled Nov. 17, granting summary judgment to an insurer (Allstate Insurance Co. v. Adrianna Luu, et...

Mealey's Insurance - No Coverage Owed For Underlying Suits Alleging Statutory Violations

CHARLOTTE, N.C. - An insurer has no duty to defend its insured in two underlying class actions alleging violations of the federal Driver's Privacy Protection Act (DPPA) because the business liability policy's statutory violation exclusion clearly bars coverage, a North Carolina federal judge...

Mealey's Insurance - Judge Strikes Third-Party Witness Testimony In Insurer, Reinsurer's Coverage Dispute

UTICA, N.Y. - Before trial in a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 21 granted an insurer's request to strike a reinsurer's submission of deposition testimony in another case by a third-party witness as inadmissible hearsay (Utica Mutual...