LexisNexis® Legal Newsroom
Mealey's Insurance - Georgia Panel Affirms Reformation Of Policy Due To Parties' Mutual Mistake

ATLANTA - A Georgia appeals panel on Nov. 14 affirmed a trial court's decision to reform a commercial insurance policy to identify the proper insured in a wrongful death coverage dispute because of a mutual mistake made by the applicant and the insurer (Occidental Fire and Casualty of North Carolina v. Goodman, et al., Nos. A16A1372 and A16A1373, Ga. App., 3rd Div.; 2016 Ga. App. LEXIS 639).

Mealey's Insurance - Judge Denies Motion To Vacate Man's 120-Month Insurance Fraud Sentence

CHICAGO - A federal judge in Illinois on Nov. 4 denied a man's motion to vacate a 120-month sentence for selling fraudulent commercial insurance policies to business and property owners, ruling that the defendant failed to show that his counsel acted ineffectively by not negotiating a plea agreement in response to a blind plea offer (United States of America v. Michael A. Ward, No. 15-cv-3910, N.D. Ill.; 2016 U.S. Dist. LEXIS 152989).

Mealey's Insurance - Insurer Must Pay Portion Of Award For Taxable Costs In Defects Dispute, Panel Says

DENVER - Having defended a developer in arbitration proceedings related to construction defects claims, a commercial general liability insurer is obligated to pay its portion of an award for taxable costs issued against the developer and a contractor, a Colorado appeals panel ruled Nov. 3, affirming partial summary judgment to the contractor (Mt. Hawley Insurance Co. v. Casson Duncan Construction Inc., No. 2016COA164, Colo. App.; 2016 Colo. App. LEXIS 1545).

Mealey's Insurance - Judge: Insureds' Negligence Claim From Collapse Is Not Precluded By Contract

TULSA, Okla. - Insureds' negligence claim arising out of damages from a wall collapse are not barred because even if there is a contractual relationship between the insureds and a contractor, the insureds did not assume risk of loss for the collapse of a wall due to the wall's allegedly negligent construction, an Oklahoma federal judge ruled Nov. 2 (Lexington Insurance Co., et al. v. Newbern Fabricating Inc. and Baucom Concrete Construction Inc. v. Doveland Engineering Co. and Baucom Concrete Construction Inc. v. Commercial Metals Co., No. 14-0610, N.D. Okla.; 2016 U.S. Dist. LEXIS 151857).

Mealey's Antitrust/Unfair Competition - Antitrust Claim Dismissed, Lanham Act Claim Survives In New York Lawsuit

NEW YORK - A New York federal judge on Oct. 27 agreed with a plaintiff that counterclaims of antitrust violations and commercial disparagement by a trademark infringement defendant are ripe for dismissal (Dentsply International Inc. v. Dental Brands for Less d/b/a Dental Wholesale Direct, No. 15-8775, S.D. N.Y.; 2016 U.S. Dist. LEXIS 149139).

Mealey's IP/Tech - Antitrust Claim Dismissed, Lanham Act Claim Survives In New York Lawsuit

NEW YORK - A New York federal judge on Oct. 27 agreed with a plaintiff that counterclaims of antitrust violations and commercial disparagement by a trademark infringement defendant are ripe for dismissal (Dentsply International Inc. v. Dental Brands for Less d/b/a Dental Wholesale Direct, No. 15-8775, S.D. N.Y.; 2016 U.S. Dist. LEXIS 149139).

Mealey's Insurance - Judge: Insurers Did Not Act In Bad Faith In Failing To Pay Entire Settlement

HONOLULU - An insured has failed to show that insurers acted in bad faith in failing to pay the entire amount of a settlement in a patent infringement lawsuit pursuant to the terms of a commercial liability insurance policy, a federal judge in Hawaii ruled Oct. 21 in dismissing the insured's insurance bad faith counterclaim (The Hanover Insurance Co., et al v. Anova Food LLC, No. 14-0281, D. Hawaii; 2016 U.S. Dist. LEXIS 146114).

Mealey's Litigation Procedure - Judge Finds TILA And RESPA Did Not Apply To Commercial Loan

WASHINGTON, D.C. - A District of Columbia federal judge on Oct. 24 granted a motion for summary judgment finding that the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) did not apply to an underlying loan and remanded various causes of action to a state court for lack of jurisdiction (Anthony Floyd v. PNC Mortgage, a division of PNC Bank, N.A., et al., No. 14-2190, D. D.C.; 2016 U.S. Dist. LEXIS 146679).

Mealey's IP/Tech - Judge Refuses To Allow Insurer To Intervene In Copyright Infringement Dispute

CLEVELAND - An Ohio federal judge on Oct. 17 denied a commercial property's insurer motion to intervene in a copyright infringement dispute, finding that the insurer lacks a substantial interest in the case and that the insurance action would not share questions of law or fact with the copyright lawsuit (Design Basics LLC v. A.J. Bokar Building Company Inc. d/b/a Willow Wood Homes, No. 16-669, N.D. Ohio; 2016 U.S. Dist. LEXIS 143464).

Mealey's Insurance - Judge Refuses To Allow Insurer To Intervene In Copyright Infringement Dispute

CLEVELAND - An Ohio federal judge on Oct. 17 denied a commercial property's insurer motion to intervene in a copyright infringement dispute, finding that the insurer lacks a substantial interest in the case and that the insurance action would not share questions of law or fact with the copyright lawsuit (Design Basics LLC v. A.J. Bokar Building Company Inc. d/b/a Willow Wood Homes, No. 16-669, N.D. Ohio; 2016 U.S. Dist. LEXIS 143464).

Mealey's Insurance - Iowa Appeals Panel: Insured's Faulty Work Potentially Constitutes An 'Occurrence'

DES MOINES, Iowa - Claims of an insured subcontractor's defective workmanship that caused damages beyond its own work potentially constitute an "accident" that is an "occurrence" covered by a commercial general liability insurance policy, the Iowa Court of Appeals held Oct. 12, finding that the insurer has a duty to defend (Hudson Hardware Plumbing & Heating Inc. v. AMCO Insurance Co., No. 15-1677, Iowa App.; 2016 Iowa App. LEXIS 1097).

Mealey's Insurance - 11th Circuit: Insured's Alleged Defective Roof Work Does Not Constitute 'Property Damage'

ATLANTA - A commercial general liability insurer had no duty to defend or indemnify a contractor in an underlying lawsuit seeking to recover the costs of repairing and replacing roofing work installed incorrectly by an insured subcontractor because the costs did not constitute "property damage" under the policy, the 11th Circuit U.S. Court of Appeals affirmed Sept. 28 (Core Construction Services Southeast Inc., et al. v. Crum & Forster Specialty Insurance Co., No. 16-10030, 11th Cir.; 2016 U.S. App. LEXIS 17575).

Mealey's Insurance - California Panel Affirms Employment-Related Practices Exclusion Bars Coverage

SAN DIEGO - A California appeals panel on Sept. 23 affirmed a lower court's ruling that a commercial general liability insurance policy's employment-related practices (ERP) bars coverage for all claims alleged against an insured and its employee (Golden Eagle Insurance Corp. v. Alana Munoz, No. G052223, Calif. App., 4th Dist., Div. 3; 2016 Cal. App. Unpub. LEXIS 6998).

Mealey's Insurance - Oregon High Court Affirms Judgment Against Insurer In Water Damage Dispute

PORTLAND, Ore. - Coverage was triggered under a commercial general liability insurance policy for a negligence award against a siding contractor for water damage to a housing complex, the Oregon Supreme Court ruled Sept. 22, upholding a garnish judgment against the insurer in the amount of $433,958.16 (FountainCourt Homeowners' Association v. American Family Mutual Insurance Co., No. 61, Ore. Sup.; 2016 Ore. LEXIS 613).

Mealey's Litigation Procedure - Split 3rd Circuit Affirms Class Certification In Case Against Jani-King

PHILADELPHIA - A split Third Circuit U.S. Court of Appeals panel on Sept. 21 affirmed that a Pennsylvania federal judge properly certified a class of franchisees suing one of the largest commercial cleaning franchisors over their employment classification, saying the claims in this case are "susceptible to class-wide determination" (Darryl Williams, et al. v. Jani-King of Philadelphia, et al., No. 15-2049, 3rd Cir.; 2016 U.S. App. LEXIS 17223).

Mealey's Labor & Employment - Split 3rd Circuit Affirms Class Certification In Case Against Jani-King

PHILADELPHIA - A split Third Circuit U.S. Court of Appeals panel on Sept. 21 affirmed that a Pennsylvania federal judge properly certified a class of franchisees suing one of the largest commercial cleaning franchisors over their employment classification, saying the claims in this case are "susceptible to class-wide determination" (Darryl Williams, et al. v. Jani-King of Philadelphia, et al., No. 15-2049, 3rd Cir.; 2016 U.S. App. LEXIS 17223).

Mealey's Insurance - Majority: Insurer Liable For $3M Judgment In Suit Arising From Teen's Suicide

SEATTLE - A majority of the Ninth Circuit U.S. Court of Appeals on Sept. 16 affirmed a lower federal court's ruling that a commercial general liability insurer had a duty to defend its insured against underlying claims that its misleading marketing, wrongful admission to a behavior modification residential program, poor educational services and negligent training contributed to a teen's suicide (Judith Newman v. United Fire & Casualty Co., No. 14-35103, 9th Cir.; 2016 U.S. App. LEXIS 17013).

Mealey's Insurance - Judge: 'Your Work' Exclusion Bars Coverage For Insured's Faulty Condominium Work

ORLANDO, Fla. - While Florida recognizes that an insured's defective work on a condominium complex gives rise to an "occurrence" caused by "property damage" under a commercial general liability insurance policy, a Florida federal judge ruled Sept. 13 that the "your work" exclusion extinguishes the insurer's duty to defend and indemnify (Evanston Insurance Co. v. DiMucci Development Corporation of Ponce Inlet Inc. and Towers Grande Condominium Association, No. 15-486, M.D. Fla.; 2016 U.S. Dist. LEXIS 123678).

Mealey's Insurance - 'Entrustment' Exclusion Bars Coverage For Theft, Vandalism Loss, Panel Affirms

MIAMI - A Florida appeals panel held Sept. 7 that a commercial insurance policy's "entrustment" exclusion applies to a third-party's actions as an insured's tenant and precludes coverage for the insured's theft and vandalism loss, rejecting the insured's argument that the exclusion is ambiguous (Grover Commercial Enterprises, Inc., etc. v. Aspen Insurance UK, Ltd., et al., No. 3D14-1987, Fla. App., 3rd Cir.).

Mealey's Insurance - Judge: Insurer Has Alleged 2nd Insurer Has Duty To Defend Suit Against Football Team

SAN JOSE, Calif. - A California federal judge on Aug. 29 held that a commercial general liability insurer has alleged that some of the claims in an underlying lawsuit against the San Francisco Forty Niners Football Co. and others are potentially covered by a second insurance policy (First Mercury Insurance Co. v. Great Divide Insurance Co., No. 16-02114, N.D. Calif.; 2016 U.S. Dist. LEXIS 115872).

Mealey's Litigation Procedure - Judge: Misrepresentation Claims Are Not 'Occurrences' Under CGL Insurance Policy

CLEVELAND - Mobile homeowners' misrepresentation claims do not arise out of events that sought damages for an 'occurrence' under a commercial general liability insurance policy and umbrella policy, an Ohio federal judge ruled Aug. 26, finding that the insurer had no duty to defend and indemnify claims filed in a class action lawsuit (Lakeside Terrace Homes Sales Ltd., et al. v. Arrowood Indemnity Co., No. 15-1794, N.D. Ohio; 2016 U.S. Dist. LEXIS 114828).

Mealey's Insurance - Judge: Misrepresentation Claims Are Not 'Occurrences' Under CGL Insurance Policy

CLEVELAND - Mobile homeowners' misrepresentation claims do not arise out of events that sought damages for an "occurrence" under a commercial general liability insurance policy and umbrella policy, an Ohio federal judge ruled Aug. 26, finding that the insurer had no duty to defend and indemnify claims filed in a class action lawsuit (Lakeside Terrace Homes Sales Ltd., et al. v. Arrowood Indemnity Co., No. 15-1794, N.D. Ohio; 2016 U.S. Dist. LEXIS 114828).

Mealey's Insurance - No Coverage For Damage Caused By Mudslide, 10th Circuit Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on Aug. 29 affirmed a lower federal court's ruling that there is no coverage for damage to an insured's commercial building caused by a mudslide (Paros Properties LLC v. Colorado Casualty Insurance Co., et al., No. 15-1369. 10th Cir.; 2016 U.S. App. LEXIS 15925).

Mealey's Insurance - Panel: Insurers Are Not Jointly, Severally Liable For $2.4M Defects Arbitration Award

DALLAS - Although two commercial general liability insurers have a duty to indemnify insureds for an underlying construction defects arbitration award, a Texas appeals panel ruled Aug. 25 that a trial court erred in finding that the insurers are jointly and severally liable for the $2.4 million award (Great American Lloyds Insurance Co. and Mid-Continent Casualty Co. v. Vines-Herrin Custom LLC, et al., No. 05-15-00230, Texas App., 5th Dist.; 2016 Tex. App. LEXIS 9407).

Mealey's PI/Product Liability - Texas Appeals Court Reduces Amount of Damages Awarded Over Construction Defects

SAN ANTONIO - A Texas appeals panel on Aug. 24 ruled that a trial court judge erred by awarding a couple $200,394.76 in damages and attorney fees for alleged construction defects, ruling that the evidence did not support the amount of damages awarded and that the Texas Residential Commercial Liability Act (RCLA) limits the amount of attorney fees the plaintiffs could receive (Bryan Smith, d/b/a Vision Design and Build v. Robert Overby, et al., No. 04-15-00436-CV, Texas App., 4th Dist.; 2016 Texas App. LEXIS 9172).