LexisNexis® Legal Newsroom
Mealey's Insurance - Panel Reverses Ruling In Insurer's Favor In Dispute Over Damaged Scallops

BOSTON - A Massachusetts appeals panel held on April 26 that a seafood-processing facility insured has a reasonable expectation of proving that unexplained damage to scallops was caused by an occurrence pursuant to a commercial general liability insurance policy, reversing and remanding a lower court's ruling in favor of the insurer (The Hanover Insurance Group, Inc. vs. Raw Seafoods, Inc., No. 15-1554, Mass. App., 2017 Mass. App. LEXIS 49).

Mealey's IP/Tech - Supreme Court Holds Oral Arguments In Biologics Act Dispute

WASHINGTON, D.C. - The merits of a July 2015 ruling by the Federal Circuit U.S. Court of Appeals that barred an abbreviated biologic license applicant from marketing Zarxio - biosimilar to the bone marrow stimulant Neupogen - for 180 days in light of the applicant's premature notice of commercial marketing was debated April 26 by the U.S. Supreme Court (Sandoz Inc. v. Amgen Inc., et al., No. 15-1039 and 15-1195, U.S. Sup.).

Mealey's Insurance - 11th Circuit: Insurer Owes No Defense, Indemnity For Negligent Home Inspection

ATLANTA - A commercial general liability insurer had no duty to defend or indemnify a home inspector against allegations that an insufficient inspection failed to discover defective conditions prior to a home sale, the 11th Circuit U.S. Court of Appeals affirmed April 17, finding that the inspector's negligence did not cause any covered "property damage" (Auto-Owners Insurance Co. v. Ralph Gage Contracting Inc., et al., No. 16-15442, 11th Cir., 2017 U.S. App. LEXIS 6528).

Mealey's Insurance - Additional Insured's Coverage Limited To Vicarious Liability For Insured's Acts

CHARLESTON, S.C. - A South Carolina federal judge on April 14 denied an electric and gas company's motion for partial summary judgment in its lawsuit seeking defense as an additional insured under a commercial general liability insurance policy for two underlying personal injury lawsuits (South Carolina Electric and Gas Co. v. Old Republic Insurance Co., et al., No. 16-2468, D. S.C., 2017 U.S. Dist. LEXIS 57261).

Mealey's Insurance - Forty Niners' Insurer Appeals Ruling Ordering It To Equally Contribute To Defense

PASADENA, Calif. - The San Francisco Forty Niners Football Co.'s primary commercial general liability insurer on April 12 filed a notice of appeal in the Ninth Circuit U.S. Court of Appeals challenging a lower federal court's finding that it has duty to contribute by equal shares with another insurer to defense costs in an underlying lawsuit against the football team and others (First Mercury Insurance Co. v. Great Divide Insurance Co., No. 17-1511, 9th Cir.).

Mealey's Insurance - Judge: Fact Issues Exist On If Independent Counsel Is Required For Insured's Defense

CHICAGO - In an insured's breach of contract and bad faith lawsuit against its commercial general liability insurer, an Illinois federal judge ruled April 11 that the parties failed to provide evidence to clear up genuine issues of material fact regarding whether independent counsel should be appointed for an insured in an underlying construction defects case (DePasquale Steel Erectors Inc. v. Gemini Insurance Co., No. 16-10892, N.D. Ill., 2017 U.S. Dist. LEXIS 54917).

Mealey's Insurance - 3rd Circuit: Insurers Have No Duty To Defend, Indemnify Faulty Workmanship Claims

PHILADELPHIA - Commercial general liability insurers have no duty to defend or indemnify an insured in a shoddy workmanship lawsuit filed by the former owner of an apartment complex, the Third Circuit U.S. Court of Appeals ruled April 11, affirming summary judgment for the insurers (Mega Construction Corp. v. XL America Group, et al. v. Travelers Casualty Insurance Company of America v. Ohio Casualty, No. 16-2639, 3rd Cir., 2017 U.S. App. LEXIS 6210).

Mealey's IP/Tech - Judge: Intellectual Property Exclusion Relieves Insurer Of Its Duty To Defend

RIVERSIDE, Calif. - A California federal judge on April 3 entered final judgment in favor of a commercial general liability insurer after finding that it has no duty to defend its insured against an underlying trademark and trade dress infringement lawsuit because the insurance policy's intellectual property exclusion bars coverage for all claims (Secard Pools, Inc., et al. v. Kinsale Insurance Co., No. 16-02404, C.D. Calif., 2017 U.S. Dist. LEXIS 47871).

Mealey's Insurance - Judge: Intellectual Property Exclusion Relieves Insurer Of Its Duty To Defend

RIVERSIDE, Calif. - A California federal judge on April 3 entered final judgment in favor of a commercial general liability insurer after finding that it has no duty to defend its insured against an underlying trademark and trade dress infringement lawsuit because the insurance policy's intellectual property exclusion bars coverage for all claims (Secard Pools, Inc., et al. v. Kinsale Insurance Co., No. 16-02404, C.D. Calif., 2017 U.S. Dist. LEXIS 47871).

Mealey's Insurance - Judge Awards $187,604.17 For Costs Associated With Insured's Work On Fuel Tank

HOUSTON - Granting a motion for final entry of judgment, a Texas federal judge ruled March 29 that a commercial general liability insurer owes a contractor $187,604.17 for costs associated with an insured subcontractor's work on a fuel tank (Mid-Continent Casualty Co. v. Petroleum Solutions, Inc., et al., No. 09-0422, S.D. Texas, 2017 U.S. Dist. LEXIS 46285).

Mealey's Litigation Procedure - Investors Failed To Plead Motive, Opportunity In Pleading Scienter, Judge Rules

NEW YORK - Shareholders in a securities class action lawsuit have failed to plead any elements of scienter in making their federal securities law claims against a supplier of lightweighting and noise, vibration and harshness solutions for personal and commercial vehicles and certain of the executive officers, a federal judge in New York ruled March 23 in granting the defendants' motion to dismiss (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 42512).

Mealey's Securities/D&O Liability - Investors Failed To Plead Motive, Opportunity In Pleading Scienter, Judge Rules

NEW YORK - Shareholders in a securities class action lawsuit have failed to plead any elements of scienter in making their federal securities law claims against a supplier of lightweighting and noise, vibration and harshness solutions for personal and commercial vehicles and certain of the executive officers, a federal judge in New York ruled March 23 in granting the defendants' motion to dismiss (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 42512).

Mealey's Insurance - Judge Rules On Insurer's Duty To Defend, Indemnify Construction Defects Case

BIRMINGHAM, Ala. - A commercial liability insurer had a partial duty to defend one of two insureds in an underlying construction defects case, an Alabama federal judge ruled March 16, granting in part and denying in part summary judgment to the insurer; however, the judge denied summary judgment on the duty-to-indemnify issue without prejudice to the insurer's right to refile (Auto-Owners Insurance Co. v. Wier-Wright Enterprises Inc. d/b/a Doug Wiersig Homes, et al., No. 15-1118, N.D. Ala.; 2017 U.S. Dist. LEXIS 37477).

Mealey's Insurance - Federal Judge Orders Forty Niners' Insurer To Equally Contribute To Defense

SAN JOSE, Calif. - A California federal judge on March 14 found that San Francisco Forty Niners Football Co.'s primary commercial general liability insurer has a duty to contribute by equal shares with another insurer to defense costs in an underlying lawsuit against the football team and others (First Mercury Insurance Co. v. Great Divide Insurance Co., No. 16-02114, N.D. Calif., 2017 U.S. Dist. LEXIS 36501).

Mealey's Insurance - Judge: Insured's Poor Work Does Not Trigger Insurer's Duty To Defend, Indemnify

DALLAS - Claims arising out of an insured's poor workmanship do not state allegations of property damage caused by an "occurrence," a Texas federal judge ruled March 10, finding that a commercial general liability insurer has no duty to defend or indemnify (Atlantic Casualty Insurance Co. v. PrimeLending and First Choice Construction LLC v. Connect Insurance Agency Inc., No. 15-1475, N.D. Texas; 2017 U.S. Dist. LEXIS 34425).

Mealey's PI/Product Liability - Judge: Product Liability Claims Constitute Multiple Occurrences Under Excess Policy

COLUMBUS, OHIO - An Ohio federal judge on March 2 found that underlying product liability lawsuits against Big Lots Stores Inc. constitute separate occurrences under a commercial liability umbrella insurance policy, partly granting the insurer's motion for summary judgment (Big Lots Stores, Inc. v. American Guarantee & Liability Insurance Co., No. 14-02635, S.D. Ohio, Eastern Div., 2017 U.S. Dist. LEXIS 29675).

Mealey's Insurance - Judge: Product Liability Claims Constitute Multiple Occurrences Under Excess Policy

COLUMBUS, OHIO - An Ohio federal judge on March 2 found that underlying product liability lawsuits against Big Lots Stores Inc. constitute separate occurrences under a commercial liability umbrella insurance policy, partly granting the insurer's motion for summary judgment (Big Lots Stores, Inc. v. American Guarantee & Liability Insurance Co., No. 14-02635, S.D. Ohio, Eastern Div., 2017 U.S. Dist. LEXIS 29675).

Mealey's Insurance - 9th Circuit: Business Risk Exclusions Bar Coverage For Construction Defects Suit

SAN FRANCISCO - Two business risk exclusions found in a commercial general liability (CGL) insurance policy bar coverage for a construction defects lawsuit, the Ninth Circuit U.S. Court of Appeals held March 2, affirming summary judgment to an insurer on breach of contract and bad faith claims (Archer Western Contractors Ltd. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 15-55648, 9th Cir.; 2017 U.S. App. LEXIS 3796).

Mealey's Insurance - Judge: Insurer Has No Duty To Defend, Indemnify Against Sexual Abuse Claims

MINNEAPOLIS - A Minnesota federal judge on Feb 28 held that a commercial general liability insurer has no duty to defend or indemnify the Order of St. Benedict Inc. against underlying sexual abuse claims against the order's members, finding that primary and excess coverage was barred by the policies' exclusions for injury that was "expected or intended by any protected person" (St. Paul Mercury Insurance Co. v. Order of St. Benedict, Inc., No. 15-2617, D. Minn., 2017 U.S. Dist. LEXIS 28103).

Mealey's PI/Product Liability - Boston Scientific Recalls All Lotus Valve Heart Devices Due To Premature Release

MARLBOROUGH, Mass. - Boston Scientific Corp. on Feb. 23 announced that it has voluntarily recalled all of its Lotus Valve devices, including the Lotus with Depth Guard, from global commercial and clinical sites due to reports of premature release of a pin connecting the valve to its delivery system.

Mealey's Insurance - Insured's Breach Of Contract Is Barred By 2-Year Statute Of Limitations, Judge Says

DENVER - A two-year statute of limitations precludes an insured's breach of contract claim against its insurer for denied coverage for property damage to commercial properties, a Colorado federal judge ruled Feb. 13 (The Pinewood Townhome Association Inc. v. Auto-Owners Insurance Co., No. 15-01604, D. Colo.; 2017 U.S. Dist. LEXIS 19999).

Mealey's Insurance - Texas Panel Finds Take- Nothing Judgment In Hurricane Ike Coverage Suit Was Proper

HOUSTON - A Texas appeals panel held Feb. 9 that a take-nothing judgment against insureds is proper because a commercial insurer overpaid the actual cash value of Hurricane Ike property damage by more than $1.5 million based on the jury's findings as to actual cash value (Triyar Companies, LLC, et al. v. Fireman's Fund Insurance Co., No. 14-14-00160, Texas. App., 14th Dist., 2017 Tex. App. LEXIS 1126).

Mealey's Insurance - 2nd Circuit Panel Says Policy Is Ambiguous On Insurer's Liability Limits

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 10 vacated a district court's award of partial judgment on the pleadings entered in favor of an insured seeking coverage for an oil spill after determining that the policy language regarding the insurer's liability to the insured is ambiguous (American Commercial Lines LLC v. Water Quality Insurance Syndicate, Nos. 16-91, 16-119, 2nd Cir., 2017 U.S. App. LEXIS 2460).

Mealey's Insurance - Judge: Fact Issues Exist On If Roofing Limitation Bars Coverage For Insured

CHARLESTON, S.C. - A genuine issue of material fact exists as to the suitability of a roof covering on a homeowner's roof in order to trigger a roofing limitation endorsement in a commercial general liability insurance policy that would preclude coverage for damages, a South Carolina federal judge held Feb. 6 (Williford Roofing Inc. v. Endurance American Specialty Insurance Co., et al., No. 16-01830, D. S.C., 2017 U.S. Dist. LEXIS 16033).

Mealey's Insurance - Yahoo Sues Insurer Over Coverage Of Email Scanning Suits

SAN JOSE, Calif. - On Jan. 31, Yahoo! Inc. sued its commercial general liability (CGL) provider in California federal court, alleging breach of contract and bad faith related to the insurer's decision not to defend or indemnify the internet firm in four class actions alleging privacy violations in certain email-scanning practices (Yahoo! Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 5:17-cv-00489, N.D. Calif.).