LexisNexis® Legal Newsroom
Mealey’s Insurance — Jury Awards $4.5 Million To Homeowners’ Class For Insurer’s Bad Faith (Trial Videos Available)

RENO, Nev. — (Mealey’s) A jury in the Washoe County, Nevada, Second Judicial District Court on Feb. 13 awarded $4.5 million in compensatory damages for a commercial general liability insurer’s breach of its duty of good faith and fair dealing in declining a defense and indemnity for...

Perkins Coie LLP on Notable Insurance Coverage Decisions from the Second Half of 2014 and Early 2015

By Nishant Kumar The second half of 2014 and early 2015 brought noteworthy insurance coverage cases in contemporary areas of interest -- for instance, coverage for media providers and for privacy breaches -- as well as significant new developments in jurisprudence regarding oft-disputed aspects of...

Don Ho-ly Cow: Designated Premises Endorsement: Insurers Need To Consider A Change [Top 10 Case Of The Year Candidate]

I have never been one of those people who believes that, anytime an insurer is told by a court that it must provide coverage, that it didn’t believe was owed, the insurer needs to amend its policy language. That is simply not feasible or sensible. There are myriad reasons why an insurer may lose...

Bar’s Policy That Excludes Assault & Battery Is Not Illusory

Tapas: Small Dishes of Insurance Coverage News & Notes It is not surprising that a bar owner, who did not pay a lot of attention to the ins and outs of his insurance, would be surprised to learn that his commercial general liability policy contained an Assault & Battery exclusion, as many...

How To Maintain A 'Sterling' Reputation With Your Clients: What You Need To Know About CGL Coverage For Unauthorized Recording Claims

By Colin B. Willmott and Jonathan L. Schwartz One of the most remarkable and memorable scandals of 2014 involved Donald Sterling, the longtime owner of the Los Angeles Clippers, who received a lifetime ban from the National Basketball Association. What triggered this scandal? A bigotry-laced audio...

Insurance May Cover Call Recording Class Actions

By John Green Companies often monitor or record conversations between their employees and customers for training or quality control purposes. California law prohibits monitoring or recording unless both parties consent. Class actions have been brought against a number of companies alleging that...

Randy Spencer’s Open Mic – Barry Manilow And Cyber Coverage: Court Writes The Songs For Policyholders

Not a day goes by it seems without news of a cyber attack resulting in the release of 4 trillion people’s personal information. It has gotten to the point where one’s identity could seemingly be stolen several times a month. Perhaps the solution for identify theft is to simply wait for your...

Ninth Circuit Holds Known Loss Language Inapplicable

In Kaady v. Mid-Continent Casualty Company , 2015 U.S. App. LEXIS 10754 (9th Cir. June 25, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the United States Court of Appeals for the Ninth Circuit, applying Oregon law, had opportunity to consider the meaning...

To Be or Not to Be – an Insured Contract: Coverage for Breach of Warranty Claims

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In Bituminous Casualty Corporation v. Plano Molding Company , 2015 IL App (2d) 140292, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ],the Illinois Appellate Court tackled one of the most misunderstood...

How the Pennsylvania Supreme Court's Decision in Mutual Benefit Will Affect Your Business Insurance Coverage

By Michael R. Kelley On May 26, 2015, the Pennsylvania Supreme Court handed down its much anticipated decision in Mutual Benefit Ins. Co. v. Christos Politsopoulos [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ]. The decision is good news for policyholders...

WVSCA Clarifies Retroactive Application of Cherrington to Pending Cases

On May 20, 2015, the West Virginia Supreme Court of Appeals concluded in BPI, Inc. v. Nationwide Mutual Insurance Company , [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], that its prior decision in Cherrington v. Erie Insurance Property & Casualty Co . should...

Why Failure To Read Policy Hurts Both Insured and Insurer – Per Claim Deductible Defeats Cover for Bad Faith Suit

It sees to me that no one reads an insurance policy until a claim is made. Even insurers fail to read or apply the terms and conditions of the policy to the facts of a loss. In Western Heritage Ins. Co. v. Asphalt Wizards , — F.3d —-, 2015 U.S. App. LEXIS 13263 (C.A.8 (Mo.) 7/30/2015), [subscribers...

Appeals Court Pushes Back On Insurer’s Effort To Limit Construction Site Bodily Injury Claims

Insurers have long been writing endorsements to reduce their exposure for property damage caused by construction defects. These efforts have been taking place with First Manifestation, Loss in Progress and similarly named endorsements. Of course, insurers also face enormous exposure for bodily injury...

CGL Policy Did Not Afford Coverage for an Underlying Construction Defect Action because the Alleged Property Damage Was Discovered after the Policy Period and the Total Residential Construction Exclusion Was Implicated

In Atain Speciality , [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the Northern District of California entered a default judgment in favor of the insurer because the damages alleged in an underlying construction defect action were not discovered until after...

Insurer Did Not Breach any Duty by Settling Claims without Insured’s Consent and Prior to Appointing Counsel

In American Western Door , the Central District of California granted a CGL carrier’s motion to dismiss an insured’s complaint and held that a carrier has the right to settle covered claims without the participation of the insured. American Western Door involved a putative class action...

Counterclaim Asserted Against Insured in Underlying Environmental Cleanup Action Triggered Duty to Defend

In Haskins , [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the Northern District of California held that the insurer’s duty to defend under a CGL policy was triggered by a counterclaim asserted against the insureds in an underlying action brought by the...

The Great Barry Manilow Coincidence

Tapas: Small Dishes of Insurance Coverage News & Notes The Open Mic column in the last issue of CO – July 15th -- was titled “Barry Manilow And Cyber Coverage: Court Writes The Songs For Policyholders.” It addressed an Oregon case concerning cyber/data breach coverage under...

Claims for Defective Solar Panels Are Covered by CGL Insurance

Several solar panel manufacturers and their distributors have been sued in class actions alleging the panels are defective and need to be replaced. As will be explained below, these kinds of claims are covered by general liability insurance (CGL), the type of policy purchased by virtually any business...

D&O Policies: A Possibility for TCPA Coverage?

Business is booming for plaintiffs’ attorneys wielding the Telephone Consumer Protection Act (TCPA). The TCPA restricts unsolicited telemarketing by fax, voice calls and text messages. Violations can trigger liability of at least $500 for each fax, text or call. The prospect of lucrative recoveries...

Federal Court Refuses to Confuse Issue of Insurance Limits – Declaratory Relief Action Without Insured Fails

Insurance coverage disputes can be resolved by the seeking a court’s order in a declaratory relief action. Both state and federal courts have procedures available for resolving such disputes. However, to provide a useful declaration it is necessary that both parties to the insurance contract are...

Third Circuit Holds No Coverage For Suits Alleging Improper Collection of Customer Data

In its recent decision in OneBeacon Am. Ins. Co. v. Urban Outfitters , 2015 U.S. App. LEXIS 16399, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ] (3d Cir.), the United States Court of Appeals for the Third Circuit, applying Pennsylvania law, had occasion to consider...

Georgia Court Holds Coverage Triggered for Product Disparagement Claim

In its recent decision in Foliar Nutrients v. Nationwide Agribusiness Ins. Co ., 2015 U.S. Dist. LEXIS 125528, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], (M.D. Ga. Sept. 21, 2015), the United States District Court for the Middle District of Georgia had occasion...

Farella Braun + Martel LLP: Claims For Defective Solar Panels Could Be Covered By General Liability Insurance

Several solar panel manufacturers and their distributors have been sued in class actions alleging that certain models of panels are defective and need to be replaced. Class actions can be very expensive to defend, and the ultimate liability can also be significant, depending on the number of panels at...

Broad Interpretation Given To Liquor Liability Exclusion: New ISO Exclusion Not Needed

The Liquor Liability Exclusion, contained in commercial general liability policies, has been under attack. In general, some courts have held that the exclusion does not apply to the failure to prevent the excluded conduct. In other words, say a bar patron is served alcohol, gets in his car and causes...

West Virginia Supreme Court Finds No Duty to Defend or Indemnify under CGL Policy for Contractor’s Work

In yet another decision arising from the construction of a home, the West Virginia Supreme Court of Appeals (“WVSCA”) in SER Nationwide v. Wilson , No. 15-0424, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], (W.Va. October 7, 2015) examined coverage...