LexisNexis® Legal Newsroom
Mealey's Insurance - Judge: Fact Issues Preclude Summary Judgment In Fax Blast Coverage Dispute

TAMPA, Fla. - A Florida federal judge on June 5 denied a commercial general liability insurer's motion for summary judgment in its declaratory judgment lawsuit disputing coverage for an underlying $2,139,000 judgment against it insured for sending 4,278 unsolicited facsimile transmissions (Zurich American Insurance Co., as successor by merger to Maryland Casualty Co. v. European Tile And Floors, Inc., et al., No. 16-729, M.D. Fla., 2017 U.S. Dist. LEXIS 85380).

Mealey's PI/Product Liability - Commercial Products Fall Under Government Contractor Defense, Court Says

SAN FRANCISCO - The government contractor defense applies to commercial products, a California appeals court panel affirmed June 6 in refusing to revisit a previous finding in an asbestos case (Jay Wanlass v. Metalclad Insulation Corp., No. A143616, Calif. App., 1st Dist.).

Mealey's Toxic Tort/Environmental - Commercial Products Fall Under Government Contractor Defense, Court Says

SAN FRANCISCO - The government contractor defense applies to commercial products, a California appeals court panel affirmed June 6 in refusing to revisit a previous finding in an asbestos case (Jay Wanlass v. Metalclad Insulation Corp., No. A143616, Calif. App., 1st Dist.).

Mealey's Insurance - Magistrate Dismisses Yahoo's Suit Seeking Coverage For TCPA Class Action Claims

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).

Mealey's Insurance - Judge: 'Abusive Act' Exclusion Bars Coverage For Claims Against Board Of Education

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).

Mealey's Litigation Procedure - Federal Judge Refuses To Compel Insurer To Produce Discovery In Coverage Dispute

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).

Mealey's Insurance - Federal Judge Refuses To Compel Insurer To Produce Discovery In Coverage Dispute

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).

Mealey's Insurance - Insured May Be Able To Recover Against Adjuster In Bad Faith Suit, Judge Rules

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).

Mealey's IP/Tech - Federal Circuit Agrees With Examiner, Board: Patent Is Obvious

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).

Mealey's Insurance - N.J. Panel: Broker Had No Duty To Provide Quotes For Higher Policy Limits

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).

Mealey's IP/Tech - Federal Circuit: AIA Did Not Change Meaning Of On-Sale Bar

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).

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).