SAN JOSE, Calif. - A California federal magistrate on June 2 granted a commercial general liability insurer's motion to dismiss Yahoo! Inc.'s breach of contract lawsuit seeking coverage for underlying class action allegations that it violated the Telephone Consumer Protection Act (TCPA) by transmitting unsolicited text messages (Yahoo! Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 17-00447, N.D. Calif., 2017 U.S. Dist. LEXIS 85200).
NEWARK, N.J. - A New Jersey federal judge on June 1 found that a commercial general liability insurer has no duty to defend its board of education insured against underlying claims arising from abusive acts alleged by students against a former teacher (Montville Township Board of Education v. Zurich American Insurance Co., No. 16-4466, D. N.J., 2017 U.S. Dist. LEXIS 83810).
WILLIAMSPORT, Pa. - A Pennsylvania federal judge on May 12 denied a modular home builder insured's motions to compel discovery and for sanctions in a commercial general liability insurer's declaratory judgment action disputing coverage for underlying faulty workmanship claims against the insured (Westfield Insurance Co. v. Icon Legacy Custom Modular Homes and Icon Legacy, No. 15-00539, M.D. Pa., 2017 U.S. Dist. LEXIS 72624).
DALLAS - A federal judge in Texas on May 10 ruled that remand of an insurance breach of contract and bad faith lawsuit to state court is warranted because an insured has shown that it may recover against the adjuster for failing to offer a fair settlement on a commercial property insurance claim (Arlington Heights Memorial Post No. 8234 Veterans Of Foreign Wars of the United States, Fort Worth, Texas, v. Covington Specialty Insurance Co., et al., No. 16-3112, N.D. Texas, 2017 U.S. Dist. LEXIS 71125).
WASHINGTON, D.C. - A patent application covering an apparatus for engaging in wireless commercial transactions was properly rejected by the Patent Trial and Appeal Board, the Federal Circuit U.S. Court of Appeals ruled May 9 (In re: Paul Poniatowski, No. 17-1346, Fed. Cir., 2017 U.S. App. LEXIS 8185).
TRENTON, N.J. - A New Jersey panel on May 1 rejected a tool manufacturer insured's argument that its insurance broker breached a duty to provide additional flood quotes for its Harrison, N.J., commercial facilities, affirming a lower court's ruling in favor of the broker in a dispute arising from Superstorm Sandy flood damage (C.S. Osborne & Co., Inc. v. The Charter Oak Fire Insurance Co., et al., No. A-2182-15T4, N.J. Super., App. Div., 2017 N.J. Super. Unpub. LEXIS 1051).
WASHINGTON, D.C. - A New Jersey federal judge's conclusion that a patent was not invalid because a 2011 statute changed the relevant standard for a commercial offer for sale was reversed May 1 by the Federal Circuit U.S. Court of Appeals (Helsinn Healthcare S.A. v. Teva Pharmaceuticals USA Inc., et al., Nos. 16-1284, -1787, Fed. Cir., 2017 U.S. App. LEXIS 7650).
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).
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.).
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).
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).
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.).
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).
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).
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).
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).
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).
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).
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).
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).
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).