LexisNexis® Legal Newsroom
    Mealey's Insurance - Judge Suspends Schedule For Claimant To Support Claim In Liquidation Proceeding

    CHICAGO - An Illinois judge on March 10 granted a motion to suspend the briefing schedule on a liquidator's petition so that a claimant can secure documentation in support of his workers' compensation claim (In the Matter of the Liquidation of Illinois Movers' & Warehousemen's Risk Management Group, No. 12-CH-09140, Ill. Cir., Cook Co.).

    Mealey's Insurance - Judge Approves Request For Direct Payments From Reinsurer To Insured

    HARRISBURG, Pa. - A Pennsylvania judge on March 8 approved an arrangement under which a reinsurer will make direct payments to a policyholder of an insolvent insurer (In re: Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

    Mealey's Insurance - Panel Partly Reverses Ruling In Directors, Officers Liability Coverage Dispute

    LOS ANGELES - In reversing a lower court in part, a California appeals panel on March 8 held that although a directors and officers liability insurance policy's "Willful Misconduct Exclusion" barred coverage for losses brought about by fraud or criminal acts, the exclusion did not apply to defense expenses (Mitchell J. Stein v. Axis Insurance Company, et al., No. B265069, Calif. App., 2nd Dist., Div. 1, 2017 Cal. App. Unpub. LEXIS 1628).

    Mealey's Insurance - 'Continuous, Progressive Injury' Exclusion Relieves Insurer Of Duty To Defend, Indemnify

    SACRAMENTO, Calif. - In recommending that default judgment be granted for an insurer, a federal magistrate judge in California on March 9 found that the insurer has no duty to defend or indemnify an underlying construction defects case against an insured because the "continuous or progressive injury and damage" exclusion precludes coverage (Mt. Hawley Insurance Co. v. Crane Development Corp., et al., No. 16-0892, E.D. Calif.; 2017 U.S. Dist. LEXIS 34175).

    Mealey's Insurance - Oregon Federal Judge: Pollution Exclusion Bars Coverage For Carbon Monoxide Suits

    PORTLAND, Ore. - An insurer has no duty to defend or indemnify its insureds for two underlying lawsuits alleging injuries as a result of carbon monoxide released by a pool heater because carbon monoxide is a pollutant and excluded under the policy's pollution exclusion, an Oregon federal judge said March 9 (Colony Insurance Co. v. Victory Construction LLC, et al., No. 16-457, D. Ore., 2017 U.S. Dist. LEXIS 34368).

    Mealey's Insurance - Insurer's Investigation Did Not Amount To Bad Faith, Federal Judge Says

    OKLAHOMA CITY - An insurer conducted a reasonable investigation in adjusting an insured's property claim following a tornado, an Oklahoma federal judge ruled March 8, granting summary judgment to the insurer on a bad faith claim (Shanta Inc. d/b/a Green Carpet Inn v. Nautilus Insurance Co., No. 15-872, W.D. Okla.; 2017 U.S. Dist. LEXIS 32702).

    Mealey's Insurance - Underlying Claims At Least 'Possibly' Constitute 'Wrongful Acts' Under Policy, Judge Says

    HARTFORD, Conn. - A Connecticut federal judge held March 8 that a professional liability insurer has a duty to defend and indemnify its insureds against an underlying lawsuit alleging that an affiliate of the insured tortiously interfered with an employment agreement (David Fernandez, et al., Plaintiffs, v. Zurich American Insurance Co., No. 15-00228, D. Conn., 2017 U.S. Dist. LEXIS 32900).

    Mealey's Insurance - Judge Grants Motion To Compel Admissions From Chiropractor Accused Of Fraud

    SEATTLE - A federal judge in Washington on March 7 ordered a chiropractor and his practice to submit better responses to State Farm Mutual Automobile Insurance Co.'s requests for information regarding treatments provided for patients that are subject to an alleged fraudulent billing scheme (State Farm Mutual Automobile Insurance Company v. Peter J. Hanson, P.C. d/b/a Hanson Chiropractic, et al., No. C16-1085RSL, W.D. Wash., 2017 U.S. Dist. LEXIS 32719).

    Mealey's Insurance - Judge: Insured Owed $100,000 Sublimit Under Policy's 'Known Claims' Endorsement

    HUNTINGTON, W. Va. - A West Virginia federal judge on March 8 found that a professional limited liability company insured is entitled to a $100,000 sublimit under the "known claims" endorsement of an accountants professional liability insurance policy for underlying claims over assets that were misappropriated by the insured's employee (CAMICO Mutual Insurance Co. v. Hess, Stewart & Campbell, P.L.L.C., No. 16-2357, S.D. W. Va., 2017 U.S. Dist. LEXIS 32790).

    Mealey's Insurance - Federal Judge Decides Motions In Construction Defects Insurance Dispute

    SAN JOSE, Calif. - In a coverage dispute between various insurers over their responsibility toward an underlying construction defects settlement, a California federal judge on March 7 addressed four summary judgment motions on multiple key issues from the duty to defend to the number of occurrences (St. Paul Fire and Marine Insurance Co. v. Insurance Company of the State of Pennsylvania, et al., No. 15-02744, N.D. Calif.; 2017 U.S. Dist. LEXIS 32551).

    Mealey's Insurance - Panel Upholds Breach Of Contract Award, Reverses Bad Faith Awards Against Insurer

    BEAUMONT, Texas - A Texas appeals panel on March 9 affirmed a jury's $15,000 award for breach of contract damages but reversed the jury's $20,000 award of actual damages that resulted from an insurer's alleged unfair settlement practices and the jury's award of additional damages of $60,000 that resulted from the finding that the insurer knowingly engaged in unfair settlement practices, rendering judgment that an insured take nothing as to the claims (State Farm Lloyds v. Dennis Webb, No. 09-15-00408-CV, Texas App., 9th Dist.; 2017 Tex. App. LEXIS 1997).

    Mealey's Insurance - Insurer Has No Duty To Indemnify Faulty Work Settlement, 7th Circuit Says

    CHICAGO - An insurer has no duty to indemnify a settlement of a faulty workmanship claim against a subcontractor, the Seventh Circuit U.S. Court of Appeals affirmed March 8, because claims of an insured's defective work resulting in damage to its own work do not constitute an "occurrence" caused by "property damage" (Allied Property & Casualty Insurance Co., et al. v. Metro North Condominium Association, No. 16-1868, 7th Cir.; 2017 U.S. App. LEXIS 4107).

    Mealey's Insurance - Panel Reverses District Court's Summary Judgment Ruling In Bad Faith Suit

    SAN FRANCISCO - A federal district court erred in granting a third party's motion for summary judgment on her breach of the implied duty to settle claim in an insurance bad faith and breach of contract lawsuit because no reasonable jury could conclude that the insurer "unreasonably failed to accept" the third party's offer to settle, a Ninth Circuit U.S. Court of Appeals panel ruled March 7 in reversing (Amy J. McDaniel v. Government Employees Insurance Co., No. 14-17203, 9th Cir., 2017 U.S. App. LEXIS 4029).

    Mealey's Insurance - 7th Circuit Finds $5M Theft Was Not Covered Under 2 Policies

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on March 9 affirmed a district court's decision to grant judgment for insurers, finding that theft by a former vice president of a telecommunications firm was not covered under insurance policies and that the insurers did not act in bad faith (Telamon Corp. v. Charter Oak Fire Insurance Co., et al., Nos. 16-1205 and 16-1815, 7th Cir., 2017 U.S. App. LEXIS 4207).

    Mealey's Insurance - Texas High Court Refuses To Hear Insurer's Suit Seeking Attorney Disqualification

    AUSTIN, Texas - The Texas Supreme Court denied an insurer's writ of mandamus seeking review of an appeals court's denial of its motion to disqualify an attorney and her law firm in a hailstorm coverage dispute, according to its March 10 orders pronounced (In Re National Lloyds Insurance Co., No. 16-0190, Texas Sup.).

    Mealey's Insurance - Judge Releases Liquidator Of Further Responsibilities In Liquidation

    HARRISBURG, Pa. - Following the final distribution of an insolvent insurer's assets, a Pennsylvania judge on March 8 released the state's insurance commissioner of her duties regarding the liquidation estate (In re: Commonwealth Insurance Co., No. 1 CIC 2014, Pa. Cmwlth.).

    Mealey's Insurance - Judge Allows Reinsured To File Deposition Transcripts Under Seal

    NEW HAVEN, Conn. - A federal judge in Connecticut on March 8 granted an insurer permission to file certain documents under seal, including deposition transcripts regarding an asbestos reinsurance dispute (Travelers Casualty and Surety Company, f/k/a The Aetna Casualty and Surety Company v. Century Indemnity Company as successor to Insurance Company of North America, No. 16-cv-00170, D. Conn.).

    Mealey's Insurance - Judge: Insurer Properly Relied On 'Maintenance' Exclusion To Bar Coverage

    PHILADELPHIA - Evidence supported an insurer's reliance on a "maintenance" exclusion to deny coverage for water damage caused by an insured's failure to maintain his furnace, the Third Circuit U.S. Court of Appeals ruled March 6, affirming summary judgment in favor of the insurer on breach of contract and bad faith claims handling (David Dougherty v. Allstate Property and Casualty Insurance Co., No. 16-2680, 3rd Cir.; 2017 U.S. App. LEXIS 3930).

    Mealey's Insurance - Alabama Federal Judge Says Insurer's Interpretation Was Arbitrary And Capricious

    MONTGOMERY, Ala. - A disability insurer's interpretation of a tolling provision to extend the 45-day time deadline to decide an administrative appeal was arbitrary and capricious, an Alabama federal judge said March 7 in partially adopting a magistrate judge's recommendation to deny the insurer's motion for summary judgment (Melissa Stevens v. Sun Life and Health Insurance Co. [U.S.], No. 16-76, M.D. Ala., 2017 U.S. Dist. LEXIS 31734).

    Mealey's Insurance - Connecticut Panel Says Insured Not Responsible For Costs During Uninsured Years

    HARTFORD, Conn. - In reversing a number of rulings entered by a trial court as part of the second phase of an asbestos and silica coverage dispute, the Connecticut Appellate Court on March 7 said the trial court construed the occupational disease exclusions too narrowly and erred in finding that the insured is responsible for defense costs from 1993 through 2007 when it was uninsured (R.T. Vanderbilt Co. Inc. v. Hartford Accident & Indemnity Co. et al., Nos. AC 36749, AC 37140, AC 37141, AC 37142, AC 37143, AC 37144, AC 37145, AC 37146, AC 37147, AC 37148, AC 37149, AC 37150, AC 37151, Conn. App., 2017 Conn. App. LEXIS 59).

    Mealey's Insurance - Federal Judge Refuses To Dismiss Bad Faith, Breach Of Contract Claims In UM Dispute

    GREENVILLE, S.C. - A South Carolina federal judge on March 3 denied an insurer's motion to dismiss breach of contract and bad faith claims in a dispute over uninsured motorist (UM) coverage for an underlying car accident (Bobby Lee Tucker Sr. v. Peerless Insurance Co., No. 13-1809, D. S.C., 2017 U.S. Dist. LEXIS 30104).

    Mealey's Insurance - Insurer Can Rescind Auto Insurance Policy Over Misrepresentations, Judge Says

    PORTLAND, Maine - A federal judge in Maine on March 3 granted an insurer's motion for summary judgment, finding that a man's material misrepresentations about where he resided and where he garaged the automobiles for which he was seeking coverage warranted rescission of the policy (Dairyland Insurance Company v. McArthur Sullivan, No. 16-cv-00050-JDL, D. Maine, 2017 U.S. Dist. LEXIS 30116).

    Mealey's Insurance - Insurer Says Information Party Wants Sealed Was Disclosed In Recent Decision

    SYRACUSE, N.Y. - A nonparty insurer told a federal court in New York on March 7 that portions of the materials that an insurer in a reinsurance dispute wants to be placed under seal were publicly aired in a recent decision in a related case (Utica Mutual Insurance Company v. Munich Reinsurance America, Inc., No. 12-cv-00196, and Munich Reinsurance America, Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

    Mealey's Insurance - New York Federal Judge Awards Attorney Fees To Disability Claimant

    ROCHESTER, N.Y. - A New York federal judge on March 6 determined that a disability claimant is entitled to more than $34,000 in attorney fees because the claimant was the prevailing party on motions for summary judgment (Charles Standish v. Federal Express Corp. Long Term Disability Plan, et al., No. 6:15-cv-6226, W.D. N.Y., 2017 U.S. Dist. LEXIS 31400).

    Mealey's Insurance - Judge Partly Grants Motion To Compel In Professional Liability Coverage Dispute

    JOHNSTOWN, Pa. - A Pennsylvania federal judge on March 7 granted a law firm insured's motion to compel a professional liability insurer to produce underwriting materials but found that the insured failed to satisfy the heightened relevancy standard applicable to its discovery request for personnel files of three of the insurer's employees (Westport Insurance Corp. v. Hippo Fleming & Pertile Law Offices, et al., No. 15-251, W.D. Pa., 2017 U.S. Dist. LEXIS 31659).