LexisNexis® Legal Newsroom
Mealey's Insurance - Insured's Stucco Damage Barred From Coverage, Insurer Says In Federal Court

JACKSONVILLE, Fla. - A commercial general liability insurance policy excludes coverage for an insured's underlying construction defects lawsuits arising out of stucco damage, the insurer says in a Jan. 10 complaint filed in a Florida federal court (Auto-Owners Insurance Co. v. Kis Construction LLC...

Mealey's Insurance - Judge Finds Insurer Did Not Improperly Deny Coverage In Violation Of UCL

SACRAMENTO, Calif. - After finding that an insurer did not violate California's unfair competition law (UCL) when it denied coverage for injuries suffered by an insured in a vehicle accident that had already been paid under a medical plan, a California federal judge on Jan. 8 granted the insurer's...

Mealey's Insurance - 3rd Circuit Vacates Order Saying GEICO Need Not Pay $2.1M In Pending Claims

PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel on Jan. 10 reversed a federal judge in New Jersey's ruling that allowed the Government Employees Insurance Co. (GEICO) to withhold payment on $2.1 million in pending personal injury protection (PIP) claims submitted by a neurology and rehabilitation...

Mealey's Insurance - Amici Praise Pregnancy Centers' Efforts, Bemoan Abortion Disclosure Law

WASHINGTON, D.C. - Women helped by crisis pregnancy centers and 23 such centers based in Illinois sang the praises of the volunteer organizations in amicus curiae briefs filed with the U.S. Supreme Court on Jan. 11 in an effort to bolster a Jan. 8 opening brief challenging a California law requiring...

Mealey's Insurance - Claims In Bad Faith Suit Found To Be Preempted By Federal Law

SAN FRANCISCO - Insureds' claims in an insurance breach of contract and bad faith lawsuit over coverage under a homeowners insurance and a standard flood insurance policy (SFIP) are preempted by federal law, a federal judge in California ruled Jan. 10 in granting the insurer's motion to dismiss...

Mealey's Insurance - Judge Declines To Dismiss Insurer's Coverage Dispute Over Faulty Workmanship

HARRISBURG, Pa. - A Pennsylvania federal judge on Jan. 11 refused to dismiss for failure to join indispensable parties an insurer's lawsuit seeking a declaration that it has no duty to defend or indemnify an insured in a breach of contract case (Atlantic Casualty Insurance Co. v. Dover Roofing &...

Mealey's Insurance - Professional Services Exclusion Does Not Bar Coverage, Federal Judge Rules

SAN JOSE, Calif. - Ruling on dueling summary judgment motions in an insurer's lawsuit seeking equitable contribution from a second insurer, a California federal judge on Jan. 9 found that two underlying lawsuits against Narconon International and its affiliates triggered commercial general liability...

Mealey's Insurance - SEC Settles With Reinsurance Executive On $2.5 Fraudulent Scheme Against Investors

NEW HAVEN, Conn. - A reinsurance executive accused of engaging in a $2.5 million fraudulent scheme settled claims brought by the Securities and Exchange Commission on Jan. 11 after the SEC filed a complaint in Connecticut federal court (Securities and Exchange Commission v. David S. Haddad, et al., No...

Mealey's Insurance - Federal Judge Denies Motion To Strike In Contamination Coverage Dispute

TOLEDO, Ohio - An Ohio federal judge on Jan. 9 denied a motion to strike a deposition in an environmental contamination coverage dispute after determining that the insurers and the insureds agreed to extend the discovery deadline for the deposition to a time outside of the discovery deadline set by the...

Mealey's Insurance - Majority: Court Did Not Err In Using ERISA's 'Unique' Abuse Of Discretion Standard

SAN FRANCISCO - A majority of a Ninth Circuit U.S. Court of Appeals panel on Jan. 9 affirmed a lower federal court's summary judgment ruling in favor of Blue Shield of California in an Employee Retirement Income Security Act lawsuit challenging the denial of a claim for medical benefits, finding...

Mealey's Insurance - Health Insurer Says It Followed ERISA Plan Guidelines, Judgment Warranted

TAMPA, Fla. - A court can adequately manage its docket without staying proceedings while considering a motion for remand, a motion it should deny and then grant summary judgment, because an insurer's actions complied with the terms of the insured's Employee Retirement Income Security Act plan...

Mealey's Insurance - 4th Circuit Vacates Arbitral Award For Penske In Withdrawal Liability Case

RICHMOND, Va. - After determining that an arbitrator applied the wrong burden in determining whether a principle purpose of a company's sale of stock was to avoid the withdrawal liability, the Fourth Circuit U.S. Court of Appeals on Jan. 10 vacated a court's order to enforce the award (Penske...

Mealey's Insurance - 9th Circuit Affirms Injuries Arose Out Of 'Assault And Battery'; Coverage Limited

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Jan. 12 rejected appellants' argument that whether the injuries they suffered were the result of an "assault and battery" under a commercial general liability insurance policy is a question of fact for a jury, affirming a lower...

Mealey's Insurance - Appeals Court: Perjury, Workers' Compensation Fraud Sentences Were Authorized

LOS ANGELES - A California appeals court panel on Jan. 11 found that a man found guilty of workers' compensation fraud should serve three years because the sentence is allowed by the California Insurance Code and because the defendant did not object to the sentence to the trial court judge (People...

Mealey's Insurance - Magistrate Judge Denies Protection On Reinsurance Participation Agreement

SACRAMENTO, Calif. - In two putative class actions, a California federal magistrate judge ruled Jan. 12 that insurers are not entitled to a protective order regarding submission of a reinsurance participation agreement (RPA) (Shasta Linen Supply Inc. v. Applied Underwriters Inc., et al., Nos. 16-00158...

Mealey's Insurance - Professional Liability Insurer Entitled To Rescind Policy Over Misrepresentations

CHARLESTON, W.Va. - A West Virginia federal judge on Jan. 11 held that a professional liability insurer was entitled to rescind an insurance policy due to two material misrepresentations made on the application, further finding that because the policy is void ab initio it cannot be the basis of liability...

Mealey's Insurance - Judge Refuses To Dismiss Added Plan Participant's Breach Of Fiduciary Duty Claim

CHICAGO - An Illinois federal judge on Jan. 10 denied the University of Chicago's motion to dismiss a breach of fiduciary duty claim that was brought by a retirement plan participant who was added as a plaintiff in a first amended complaint alleging excessive fees (Winifred J. Daugherty, et al. v...

Mealey's Insurance - Exclusionary Language 'Undeniably Captures' Alleged Conduct, 11th Circuit Affirms

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 12 affirmed a lower federal court's ruling that a liquor liability insurance policy's assault and battery exclusion relieves the insurer of its duty to defend against an underlying lawsuit that resulted in a $3.5 million consent judgment...

Mealey's Insurance - Judge Abstains From Workers' Compensation Coverage Dispute

CHARLESTON, S.C. - A federal judge in South Carolina on Jan. 11 granted a construction company's motion to reconsider a ruling denying its motion to dismiss, finding that the South Carolina Workers' Compensation Commission (SCWCC) should determine if an insurance policy issued to the company...

Mealey's Insurance - Class, Health Insurer Reach $7M Settlement Over Mental Health Coverage

SAN JOSE, Calif. - Health insurer Blue Shield of California and a class of people who claim that the company improperly denied coverage for mental health services reached a $7 million agreement resolving the case on Jan. 15 (Charles Des Roches, et al. v. California Physicians' Service, et al., No...

Mealey's Insurance - Judge Dismisses Insurer's Dispute Over Defense Owed For Construction Defects Cases

ASHEVILLE, N.C. - Citing overlapping issues with an underlying state court declaratory judgment action, a North Carolina federal judge on Jan. 12 dismissed a coverage dispute between commercial general liability insurers with regard to a duty to defend a mutual insured and additional insureds in construction...

Mealey's Insurance - Judge Finds Indictment Sufficiently Alleges Scheme To Defraud Insurer, Government

BILLINGS, Mont. - A federal judge in Montana on Jan. 16 denied a motion to dismiss a 14-count indictment filed by a transportation company and its owner accused of concealing from their insurer that they were transporting explosives, finding that the allegations in the indictment sufficiently support...

Mealey's Insurance - Insurer Says Reinsurer Breached Contract With Regard To Asbestos Claims

BRIDGEPORT, Conn. - A reinsurer breached its contract by refusing to pay its share of losses arising out of the settlement of asbestos claims, an insurer says in a Jan. 16 complaint filed in the Connecticut federal court (Travelers Casualty and Surety Co. v. Lamorak Insurance Co., No. 18-00087, D. Conn...

Mealey's Insurance - Federal Jurisdiction Exists Over Carbon Monoxide Poisoning Coverage Suit

PHILADELPHIA - A Pennsylvania federal judge on Jan. 12 determined that exercising federal jurisdiction over an insurer's suit seeking a coverage declaration for an underlying carbon monoxide poisoning suit filed against an insured is appropriate because the insurer's suit and the underlying suit...

Mealey's Insurance - Hurricane Irene Claim For Additional Damage Is Untimely, Federal Judge Says

ELIZABETH CITY, N.C. - A North Carolina federal judge on Jan. 11 found that insureds' claim for additional damage was made well beyond the Federal Emergency Management Agency deadline for Hurricane Irene-related claims, further concluding that the subrogation provision in a Standard Flood Insurance...