LexisNexis® Legal Newsroom
    Mealey's Insurance - Stipulated Judgment Bars Harm Under Collateral Estoppel Doctrine, Panel Affirms

    NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 2 affirmed a lower federal court's dismissal of a lawsuit brought by the previous owners of a self-storage company alleging that they were denied the insurance proceeds they were owed for Hurricane Katrina damage, as well as the ability to maintain an ownership stake in the self-storage company (BCR Safeguard Holding L.L.C., et al. v. Morgan Stanley Real Estate Advisor Inc. et al., No. 14-31068, 5th Cir.; 2015 U.S. App. LEXIS 9268).

    Mealey's Insurance - Judge: Insureds' Failure To Comply With Order Does Not Warrant Dismissal

    TACOMA, Wash. - A federal judge in Washington on June 2 declined to dismiss an insurance bad faith lawsuit, ruling that although insureds failed to abide by a court order to file a joint status report, that failure does not require dismissal (Kenneth and Karen Oswald v. Horace Mann Insurance Co., No. 14-5920, W.D. Wash.; 2015 U.S. Dist. LEXIS 71297).

    Mealey's Insurance - New York Justice Asks For Input Regarding Termination Of Ancillary Receivership

    NEW YORK - A New York justice on June 2 issued an order to show cause asking for responses regarding the proposed termination of the ancillary receivership of an insolvent Ohio insurer (In the Matter of the Ancillary Receivership of Credit General Insurance Company, No. 400160/01, N.Y. Sup., New York Co.).

    Mealey's Insurance - 2nd Circuit Panel Affirms Denial Of Benefits Under Pension Plan Was Proper

    NEW YORK - The denial of a claimant's benefits under a disability pension plan was not arbitrary or capricious because it was not clear that the disability was permanent or that she was disabled while employed, the Second Circuit U.S. Court of Appeals said June 1 (Francy Ocampo v. Building Service 32B-J Pension Fund, et al., No. 14-0877, 2nd Cir.; 2015 U.S. App. LEXIS 9020).

    Mealey's Insurance - Judge: Insurer Did Not Breach Policy In Denying Coverage For Fungus Loss

    TAMPA, Fla. - An insurer did not breach its policy by denying coverage for an insured's damages caused by fungus, rot, rain, decay and termites eating wood, a Florida federal judge ruled June 3 (N.P.V. Realty Corp. d/b/a Park Place Apartments v. Nationwide Mutual Insurance Co. and Nationwide Mutual Fire Insurance Co., No. 14-03235, M.D. Fla.; 2015 U.S. Dist. LEXIS 71744).

    Mealey's Insurance - Judge Allows Subpoena In Part On Insurer's Files For Policies, Defects Lawsuit

    CHARLESTON, S.C. - A South Carolina federal judge on June 3 granted in part and denied in part an insurer's motion to quash a subpoena filed by a condominium association and insureds with regard to insurer counsel's files on commercial general liability insurance policies and an underlying construction defects case (East Bridge Lofts Property Owners Association Inc., et al. v. Crum & Forster Specialty Insurance Co., No. 14-2567, D. S.C.).

    Mealey's Insurance - Repairing An Insured's Faulty Design Is Not Covered, Judge Finds

    KANSAS CITY, Mo. - The cost of replacing a wall was due to an insured's defective design and the need to replace the wall was not caused by a subsequent event, so there was no ensuing loss, a Missouri federal judge ruled June 3 (Performing Arts Community Improvement District v. Ace American Insurance Co., No. 13-0945, W.D. Mo.; 2015 U.S. Dist. LEXIS 71592).

    Mealey's Insurance - No Coverage Owed For Sinking Of Dry Dock, 9th Circuit Majority Determines

    SAN FRANCISCO - A majority of the Ninth Circuit U.S. Court of Appeals on June 1 affirmed that no coverage is owed for the sinking of a dry dock and more than 113,000 gallons of stored oil into a harbor because the insured failed to comply with the hull and machinery policy's certification requirement and because no oil was released from the barrels into the harbor as required for coverage to exist under the ocean marine policy (Guam Industrial Services Inc. et al. v. Zurich American Insurance Co. et al., No. 13-17005, 9th Cir.; 2015 U.S. App. LEXIS 9045).

    Mealey's Insurance - Panel: Insureds In Bad Faith Suit Sought Coverage For Excluded Damages

    SAN FRANCISCO - A federal district court did not err in determining that insureds failed to plead their claims for breach of contract and insurance bad faith because the insureds' claim sought coverage for excluded damages, a Ninth Circuit U.S. Court of Appeals panel ruled June 2 (Daryl Gregory, et al. v. Nationwide Mutual Insurance Co., et al., No. 13-15161, 9th Cir.; 2015 U.S. App. LEXIS 9164).

    Mealey's Insurance - Federal Judge: Facts Issues Preclude Summary Judgment As To The Estoppel Theory

    TAMPA, Fla. - A Florida federal judge on June 1 held that there are material issues of fact to be determined by a trier of fact regarding whether an insurer is estopped from denying coverage for underlying copyright infringement claims brought against a designer of pre-drawn home plans (State National Insurance Company Inc. v. Highland Holdings Inc., et al., No. 8:14-cv-00524, M.D. Fla.; 2015 U.S. Dist. LEXIS 70616).

    Mealey's Insurance - Administrator Did Not Abuse Discretion In Denying Claim, 5th Circuit Panel Determines

    NEW ORLEANS - A district court correctly determined that a long-term disability administrator did not abuse its discretion or act arbitrarily and capriciously in denying a long-term disability claim, the Fifth Circuit U.S. Court of Appeal said May 29 (Angel Dix v. Blue Cross and Blue Shield Association Long Term Disability Program, No. No. 14-31200, 5th Cir.; 2015 U.S. App. LEXIS 8930).

    Mealey's Insurance - Magistrate Judge Says Arbitration Transcripts Are Relevant To Case

    SYRACUSE, N.Y. - A federal magistrate judge in New York on June 2 granted in part and denied in part a reinsurer's motion to compel discovery in an asbestos-related reinsurance billing dispute (Utica Mutual Insurance Company v. R&Q Reinsurance Company, No. 14-cv-00700, N.D. N.Y.).

    Mealey's Insurance - Breach Of Fiduciary Duty Claim Duplicative Of Bad Faith Claim, Judge Rules

    ORLANDO, Fla. - A federal judge in Florida on May 29 granted in part and denied in part an insurer's motion to dismiss claims in an insurance bad faith lawsuit, ruling that insureds' breach of fiduciary duty claim is duplicative of their bad faith claim, but that their breach of contract claim is not (Ryan J. Padilla, et al. v. The Travelers Home and Marine Insurance Co., No. 14-1770, M.D. Fla.; 2015 U.S. Dist. LEXIS 69961).

    Mealey's Insurance - Bank's Loss From Investment Scheme Covered Under Bond, 8th Circuit Affirms

    ST. PAUL, Minn. - The Eighth Circuit U.S. Court of Appeals on June 2 affirmed a lower court's ruling that a bank insured's losses arising from its employees' involvement in an e-mail-based investment scam are covered under a financial institution bond, further finding that the lower court did not err in calculating prejudgment interest (Avon State Bank v. BancInsure Inc., Nos. 14-1265 and 14-2202, 8th Cir.; 2015 U.S. App. LEXIS 9120).

    Mealey's Insurance - U.S. High Court Denies Condominium's Appeal In Hurricane Irene Coverage Suit

    WASHINGTON, D.C. - The U.S. Supreme Court on June 1 denied a condominium insured's writ of certiorari seeking to overturn the Third Circuit U.S. Court of Appeals' finding that its undisputed failure to strictly obey a federal flood insurance policy's proof-of-loss requirement dooms its Hurricane Irene claim (Admiralty Condominium Association Inc., Petitioner v. Director, Federal Emergency Management Agency, et al., No. 14-1283, U.S. Sup.; 2015 U.S. LEXIS 3680).

    Mealey's Insurance - Judge Substantially Dismisses Claims In Insurance Bad Faith Suit

    LITTLE ROCK, Ark. - A federal judge in Arkansas on May 29 substantially dismissed claims in an insurance bad faith lawsuit, ruling that an insured failed to plead its claims as required (Hudson Enterprises Inc., d/b/a River Valley Marina, et al. v. Rick Placement Services Inc., et al., No. 15-0012, E.D. Ark.; 2015 U.S. Dist. LEXIS 70054).

    Mealey's Insurance - Ancillary Receiver For Insolvent Insurer Appointed In New York Court

    NEW YORK - A New York justice on May 28 appointed the state's superintendent of financial services as the ancillary receiver of an insolvent Oklahoma insurer licensed to do business in New York (In the Matter of Red Rock Insurance Company, No. 451197/15, N.Y. Sup., New York Co.).

    Mealey's Insurance - No Coverage For Possible Contamination Of Medical Tools, Federal Judge Says

    CONCORD, N.H. - No coverage is afforded for the possible contamination of surgical instruments after exposure to a communicable neurological disease because the contamination incident was not a communicable disease event as defined under the policy at issue, a New Hampshire federal judge said June 1 (Catholic Medical Center v. Fireman's Fund Insurance Co., No. 14-180, D. N.H.; 2015 U.S. Dist. LEXIS 70450).

    Mealey's Insurance - Panel Dismisses Bad Faith Claim For Policyholders' Failure To Show Collapse

    WAUSAU, Wis. - Insureds failed to prove that their house collapsed during construction and, thus, that there was an underlying breach of the insurance contract by their insurer for denying coverage, a Wisconsin appeals panel ruled June 2, affirming dismissal of the insureds' bad faith claim (Joseph M. Oboikovitz and Vicki A. Oboikovitz v. American Family Mutual Insurance Co., No. 2014AP1065, Wis. App., Dist. 3; 2015 Wisc. App. LEXIS 403).

    Mealey's Insurance - Pennsylvania Federal Judge Finds Insured's Evidence Is Admissible At Trial

    PHILADELPHIA - A Pennsylvania federal judge on May 29 denied an insurer's motion to preclude an insured from offering evidence of settlements of underlying asbestos claims after determining that summaries of business records are admissible evidence (General Refractories Company v. First State Insurance Co., et al., No. 2:04-cv-3509, E.D. Pa.; 2015 U.S. Dist. LEXIS 69727).

    Mealey's Insurance - Delaware Federal Judge Says No Coverage Owed For 2 Time Periods At Issue

    WILMINGTON, Del. - A Delaware federal judge on May 29 partially granted motions for summary judgment filed by two insurers after determining that one of the underlying excess policies was not exhausted and that another barred coverage because the primary policy clearly excluded coverage for asbestos claims (Maremont Corp. v. Ace Property & Casualty Insurance Co. et al., No. 12-1379, D. Del.; 2015 U.S. Dist. LEXIS 69537).

    Mealey's Insurance - Texas Panel Rejects Insurer's Objection To Discovery Requests In Hailstorm Dispute

    EDINBURG, Texas - A Texas appeals panel on May 29 denied an insurer's petition for writ of mandamus challenging a lower court's order requiring it to produce 15 categories of management reports and associated emails that are in response to specific requests for production pertaining to the hail litigation (In Re National Lloyds Insurance Co., Nos. 13-14-00713 and 13-14-00714, Texas App., 13th Dist.; 2015 Tex. App. LEXIS 5509).

    Mealey's Insurance - 6th Circuit Reverses Company's Summary Judgment Award In Insurance Dispute

    CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on June 1 reversed a federal magistrate judge in Ohio's ruling awarding summary judgment to Penn Mutual Life Insurance Co., finding that a genuine dispute of fact exists as to whether a man knowingly misrepresented the state of his health before obtaining a life insurance policy (Barbara Ramsey v. Penn Mutual Life Insurance Company, No. 14-3869, 6th Cir.; 2015 U.S. App. LEXIS 9019).

    Mealey's Insurance - Reinsurers Ask For Dismissal Of Suit In Favor Of Similar Suit In Another Court

    PHILADELPHIA - A pair of reinsurers argued in a federal court in Pennsylvania on May 28 that a suit against them should be dismissed in favor of a suit the two filed against the instant plaintiff in a different federal court (Excalibur Reinsurance Corporation v. Select Insurance Company, et al., No. 15-cv-02522, E.D. Pa.).

    Mealey's Insurance - Illinois Appeals Panel Finds Settlement Releases Are Ambiguous

    CHICAGO - The First District Illinois Appellate Court on May 29 determined that settlement releases between an insured and its insurers were ambiguous and did not specifically include underlying claims alleging injuries arising out of the exposure to various chemicals at the insured's facilities (Motorola Solutions Inc. v. Zurich Insurance Co. et al., Nos. 1-13-1529, 1-13-1530, Ill. App., 1st Dist., 5th Div.; 2015 Ill. App. LEXIS 415).