LexisNexis® Legal Newsroom
    Mealey's Insurance - Reinsurer Notes Insurer's Inaccuracies, Seeks Discovery Ruling Reconsideration

    SYRACUSE, N.Y. - Noting that an insurer's opposition is "riddled with inaccuracies," a reinsurer argues in its June 26 reply brief that a New York federal court should reconsider a discovery ruling in a dispute over asbestos claims or compel the insurer to produce all post-complaint, internal documents involving coverage issues relating to primary and umbrella policies (Utica Mutual Insurance Co. v. R&Q Reinsurance Co., No. 15-cv-270, N.D. N.Y.).

    Mealey's Insurance - Kentucky Federal Judge Denies Disability Claimant's Motion To Strike Declaration

    LOUISVILLE, Ky. - A Kentucky federal judge on June 23 denied a disability claimant's motion to strike a corporate representative's declaration after determining that the declaration was properly submitted with the disability insurer's motion for summary judgment (William Kennedy v. Life Insurance Company of North America, No. 15-741, W.D. Ky., 2017 U.S. Dist. LEXIS 97341).

    Mealey's Insurance - No Coverage Afforded For Home's Foundation Damage, Federal Judge Says

    HARTFORD, Conn. - No coverage is afforded for foundation damage to an insured home because no coverage is afforded for collapse or for latent defects under the policy at issue, a Connecticut federal judge said June 26 in granting an insurer's motion for summary judgment (Gueng-Ho Kim et al., v. State Farm Fire and Casualty Co., No. 15-879, D. Conn., 2017 U.S. Dist. LEXIS 97871).

    Mealey's Insurance - 7th Circuit Says Claim Barred By Failure To Comply With Policy Receipt Provision

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on June 27 affirmed a district court's ruling that an insurer has no duty to provide coverage for the contamination of an insured's products because the insured did not execute a storage agreement or possess a warehouse receipt as required by the terms of the policy (PQ Corp. v. Lexington Insurance Co., No. 16-3280, 7th Cir., 2017 U.S. App. LEXIS 11457).

    Mealey's Insurance - Malpractice Claim Reported Too Late To Trigger Coverage, 6th Circuit Affirms

    CINCINNATI - The Sixth Circuit U.S. Court of Appeals on June 27 affirmed a lower federal court's rulings in favor of an insurer and its administrator in a coverage dispute arising from an underlying $275,825.29 legal malpractice judgment against an attorney insured (David C. McCarty, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 16-3657, 6th Cir.).

    Mealey's Insurance - Insured Entitled To Documents Related To Underwriting, Federal Magistrate Judge Says

    BALTIMORE - A Maryland federal magistrate judge on June 23 determined that an insured is entitled to documents pertaining to an insurer's underwriting review because the documents may help the insured in defending the insurer's misrepresentation claim alleged against the insured in a lead coverage dispute (CX Reinsurance Co. Ltd., f/k/a CNA Reinsurance Co. Ltd. v. B&R Management Inc., et al., No. 15-3364, D. Md., 2017 U.S. Dist. LEXIS 97133).

    Mealey's Insurance - 11th Circuit Vacates Judgment In Insurer's Favor, Remands For Correct Legal Standard

    ATLANTA - The 11th Circuit U.S. Court of Appeals on June 21 found that pursuant to Georgia insurance law, the question of whether an event qualifies as an "accident" must be asked from the insured's viewpoint, vacating and remanding a lower federal court's judgment in favor of a homeowners insurer in a coverage dispute over a shooting that occurred on the insured's property (Allstate Property and Casualty Insurance Co. v. Kim Roberts, et al., No. 16-13063, 11th Cir., 2017 U.S. App. LEXIS 10933).

    Mealey's Insurance - 9th Circuit Affirms Ruling In Insurer's Favor In Coverage Dispute Over Theft

    SAN FRANCISCO - Finding that an insured's argument on appeal is waived because it never presented it to the lower court, the Ninth Circuit U.S. Court of Appeals on June 26 affirmed a lower federal court's summary judgment ruling in favor of a business owners insurer (Pacific Enterprises LLC v. AMCO Insurance Co., et al., No. 15-16042, 9th Cir., 2017 U.S. App. LEXIS 11319).

    Mealey's Insurance - Judge Dismisses Insolvent Insurer's Shareholder's Negligence, Fraud Lawsuit

    WILMINGTON, Del. - A Delaware federal judge on June 23 declined to exercise supplemental jurisdiction over an insolvent insurer's shareholder's negligence and fraud lawsuit against various individuals involved in the liquidation of the insurance company (Jeffrey Cohen, et al. v. Kathleen Birrane, et al., No. 16-893, D. Del., 2017 U.S. Dist. LEXIS 97505).

    Mealey's Insurance - California Federal Judge Denies Motion To Dismiss Counterclaims In Sewage Suit

    LOS ANGELES - A California federal judge on June 23 denied a motion to dismiss bad faith counterclaims against an insurer in a coverage dispute arising out of a sewage spill after determining that the counterclaims sufficiently allege facts in support of the claims (Travelers Property Casualty Company of America v. Mountain Movers Engineering Contactors Inc., No. 16-2127, S.D. Calif., 2017 U.S. Dist. LEXIS 97731).

    Mealey's Insurance - Majority Finds Excess Professional Insurance Policy Is Ambiguous, Reverses Ruling

    CONCORD, N.H. - A majority of the New Hampshire Supreme Court on June 22 reversed and remanded a lower court's ruling in favor of an excess health care professional liability insurer in a coverage dispute arising from a hepatitis C outbreak, finding that the policy's Coverage A is subject to more than one reasonable interpretation and that the ambiguity should be construed in favor of the insured (Exeter Hospital Inc. v. Steadfast Insurance Co., No. 2015-0624, N.H. Sup., 2017 N.H. LEXIS 129).

    Mealey's Insurance - 4th Circuit Panel Says Plan Defendants Are Required To Adopt SSA's Onset Date

    RICHMOND, Va. - Because a plan administrator failed to follow a reasoned process in determining a disability claimant's onset date of disability, the plan must adopt the disability onset date determined by the Social Security Administration (SSA), the Fourth Circuit U.S. Court of Appeal said June 23 in affirming a district court's decision (Jesse Solomon v. Bert Bell/Pete Rozelle NFL Player Retirement Plan, et al., No. 16-1730, 4th Cir., 2017 U.S. App. LEXIS 11197).

    Mealey's Insurance - Judge: Foreign Specialty Reinsurance Must Pay $926,000 In Attorney Fees

    NEW YORK - A New York federal bankruptcy judge ruled June 22 that a foreign specialty reinsurance company owes a defunct company $926,000 in attorney fees for its failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda (In re: MF Global Holdings Ltd., et al. MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 1585).

    Mealey's Insurance - 3rd Circuit Orders Resentencing Of Ambulance Transportation Company, Owner

    PHILADELPHIA - A 2-1 panel of the Third Circuit U.S. Court of Appeals on June 21 ordered a federal judge in Pennsylvania to resentence the owner of an ambulance transportation company who pleaded guilty to health care fraud for submitting bills to Medicare for patients who did not need ambulance services, finding that the judge erred in calculating the amount of loss sustained by the insurer (United States of America v. Advantage Medical Transport, Inc., et al., No. 15-3853, 3rd Cir., 2017 U.S. App. LEXIS 10960).

    Mealey's Insurance - New York Law Bars Offset For Personal Injury Settlement, Appeals Panel Concludes

    NEW YORK - The Second Circuit U.S. Court of Appeals on June 22 reversed a district court's ruling that a disability insurer was entitled to offset a claimant's benefits based on the claimant's settlement of his personal injury claim after determining that New York law bars the disability insurer from offsetting benefits when a claim for personal injuries is settled (Salvatore Arnone v. Aetna Life Insurance Co., No. 15-2322, 2nd Cir., 2017 U.S. App. LEXIS 11055).

    Mealey's Insurance - Professional Services Exclusion Does Not Apply, Federal Judge Reiterates

    CHICAGO - An Illinois federal judge on June 21 denied insurers' motion to reconsider an earlier ruling that a professional services exclusion does not apply to bar coverage for an underlying lawsuit alleging that a consulting company insured conspired with a competitor's former employee to use the competitor's copyrighted material and other confidential information (Caveo, LLC v. Citizens Insurance Company of America, Inc., et al., No. 15-6200, N.D. Ill., 2017 U.S. Dist. LEXIS 95432).

    Mealey's Insurance - Texas Federal Judge Grants Insured's Motion To Remand, Dismisses Adjuster From Suit

    SHERMAN, Texas - A Texas federal judge on June 20 adopted a magistrate judge's recommendation that an insured's motion to remand be denied because complete diversity of citizenship exists as the insured's complaint does not specifically allege any claims against the insurer's adjuster, who also is a resident of Texas (Max Wang v. Safeco Insurance Company of Indiana et al., No. 17-158, E.D. Texas, 2017 U.S. Dist. LEXIS 94255).

    Mealey's Insurance - Brazilian Reinsurer Owes $5M Under Arbitration Award, Insurer Asserts

    NEW YORK - An insurer argues in a June 21 reply brief filed in a New York federal court that a Brazilian reinsurer is obligated to pay $5 million under an arbitration award so that the insurer can pay a settlement it reached with a steel maker in a related dispute (National Indemnity Co. v. IRB Brasil Resseguros S.A., No. 15-3975, S.D. N.Y.).

    Mealey's Insurance - Panel: Pollution Exclusion Bars Environmental Damage Claim With Insolvent Insurer

    NEW YORK - A pollution exclusion precludes coverage for an environmental damage claim with an insolvent insurer, the First Department New York Supreme Court Appellate Division affirmed June 22 (In re Midland Insurance Co.; ASARCO LLC, v. The Superintendent of Financial Services of the State of New York, in her capacity as liquidator of Midland Insurance Co., No. 41294/86, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 5065).

    Mealey's Insurance - Panel: Court Did Not Err In Dismissing Bad Faith Claim In Coverage Dispute

    SAN FRANCISCO - A federal district court did not err in granting an insurer's motion for summary judgment on an insured's claim for insurance bad faith because the insured failed to plead any genuine issues of material facts to support the claim, a Ninth Circuit U.S. Court of Appeals panel ruled June 19 in affirming (Jesse Kalberer v. American Family Mutual Insurance Co., No. 14-17220, 9th Cir., 2017 U.S. App. LEXIS 10779).

    Mealey's Insurance - No Coverage For Insured's Deliberate Acts Of Unprotected Sex, 9th Circuit Affirms

    SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on affirmed a lower federal court's ruling that a homeowners insurer has no duty to defend its insured against underlying claims of battery, sexual battery, fraud, intentional infliction of emotional distress, negligence and negligent infliction of emotional distress (Travelers Commercial Insurance Co. v. Jennifer A., No. 15-15841, 9th Cir., 2017 U.S. App. LEXIS 10996).

    Mealey's Insurance - Insurer Opposes Umpire In Reinsurance Arbitration Dispute With Syndicates

    BOSTON - In a dispute over environmental claims, an insurer argues in a June 21 brief filed in a Massachusetts federal court that it should not be forced to accept an umpire proposed by a group of insurance syndicates in arbitration because of "shenanigans" in the appointment process (Certain Underwriters at Lloyd's, London v. Transport Insurance Co., No. 17-10618, D. Mass.).

    Mealey's Insurance - Panel Vacates Dismissal Of Insurance Claims, Affirms Dismissal Of Indemnity Claims

    NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 21 found that a lower court erred in dismissing insurance claims in a dispute over coverage for a maritime collision in the Gulf of Mexico, vacating the lower court in part and remanding for the court to review the insurance policies and determine their scope (International Marine, L.L.C., et al. v. Integrity Fisheries, Incorporated, et al., No. 16-30456, 5th Cir., 2017 U.S. App. LEXIS 11041).

    Mealey's Insurance - Reinsurer Seeks Trial Date Move By Federal Court In Late-Notice Dispute

    UTICA, N.Y. - After an insurer opposed a previous request to move a trial date in a reinsurance late-notice dispute, a reinsurer on June 19 asked a New York federal court to push back the date, this time to after Nov. 10, explaining that all witnesses will be available after that date (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-cv-00853, N.D. N.Y.).

    Mealey's Insurance - Florida Federal Magistrate Recommends Dismissal Of Claim For LTD Benefits

    WEST PALM BEACH, Fla. - A Florida federal magistrate judge on June 19 recommended that a claim seeking a declaration that long-term disability (LTD) benefits are owed be dismissed because the disability claimant did not file a claim for LTD benefits and did not exhaust all her administrative remedies related to the claim for such benefits (Jamie R. Nagy v. The Prudential Insurance Company of America, No. 17-80198, S.D. Fla., 2017 U.S. Dist. LEXIS 94819).