LexisNexis® Legal Newsroom
    Mealey's Insurance - Insurer Sues Reinsurer For Breach Of Contract Over Asbestos Claims

    DETROIT - An insurer filed a complaint on June 21 in a Michigan federal court alleging breach of a facultative reinsurance agreement for a reinsurer's failure to indemnify it for certain loss and loss related expenses incurred in connection with asbestos claims brought against an insured (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).

    Mealey's Insurance - Majority: No Coverage Owed For Wrongful Death Suit Stemming From Obstacle Race

    FRANKFORT, Ky. - A majority of the Kentucky Court of Appeals on June 22 affirmed a lower court's ruling that a commercial general liability insurer has no duty to defend against an underlying lawsuit arising from the death of a participant in an obstacle race that was organized and presented by its insured (Chris Johnson, doing business as Extreme Rampage, et al. v. Capitol Specialty Insurance, No. 2017-CA-000171-MR, Ky. App., 2018 Ky. App. Unpub. LEXIS 447).

    Mealey's Insurance - 'Damage To Your Work' Exclusion Does Not Relieve Insurer's Duty, Judge Says

    SEATTLE - A commercial general liability insurer has a duty to defend insureds in a construction defects lawsuit, a Washington federal judge ruled June 21, finding that the "damage to your work" exclusion does not apply (The Cincinnati Specialty Underwriters Insurance Co. v. Milionis Construction Inc., et al., No. 17-00341, E.D. Wash., 2018 U.S. Dist. LEXIS 104182).

    Mealey's Insurance - Disability Claimant Owed Own-Occupation Benefits; Attorney Fee Award Remanded

    SAN FRANCSICO - The Ninth Circuit U.S. Court of Appeals on June 21 affirmed a district court's award of own-occupation long-term disability (LTD) benefits in favor of a disability claimant but vacated and remanded the lower court's award of attorney fees in favor of the claimant for recalculation (Dave Nagy v. Group Long Term Disability Plan for Employees of Oracle America Inc., et al., Nos. 16-16160, 17-15491, 9th Cir., 2018 U.S. App. LEXIS 16883).

    Mealey's Insurance - Insurer's Denial Of LTD Benefits Was Not Arbitrary Or Capricious, Panel Says

    DENVER - A disability insurer did not act arbitrarily or capriciously in denying a plan participant's claim for long-term (LTD) disability benefits because the insurer's denial was supported by substantial evidence, the 10th Circuit U.S. Court of Appeals said June 21 (John Dardick v. Unum Life Insurance Company of America, et al., No. 17-1412, 10th Cir., 2018 U.S. App. LEXIS 16753).

    Mealey's Insurance - Judge: 'Damage To Your Work' Exclusion Bars Coverage For Insured's Defects

    FORT MYERS, Fla. - An insurer has no duty to defend or indemnify a general contractor in an underlying construction defects case, a Florida federal judge ruled June 21, finding that the "damage to your work" exclusion precludes coverage (Southern-Owners Insurance Co. v. MAC Contractors of Florida LLC, et al., No. 18-21, M.D. Fla., 2018 U.S. Dist. LEXIS 103659).

    Mealey's Insurance - 7th Circuit Panel Says Claimant Is Not Entitled To Total Disability Benefits

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on June 21 affirmed a district court's ruling that a disability claimant suffering from invasive basal cell carcinoma in the right ear is not entitled to total disability benefits from his insurer because he is still able to perform all but one of the functions of his occupation as a company president (Henry Fiorentini v. Paul Revere Life Insurance Co., No. 17-3137, 7th Cir., 2018 U.S. App. LEXIS 16741).

    Mealey's Insurance - Homeowners Appeal Dismissal Of RESPA Claims Against Banks, Reinsurer

    PHILADELPHIA - Homeowners filed a notice of appeal on June 18 of a Pennsylvania federal judge's dismissal of claims for violations of the Real Estate Settlement Procedures Act (RESPA) and unjust enrichment in a putative class action alleging a captive reinsurance scheme between banks and an affiliated reinsurer (Christopher Blake, et al. v. JPMorgan Chase Bank, N.A., et al., No. 13-6433, E.D. Pa.).

    Mealey's Insurance - Appraisal Not Appropriate Until Issue Of Coverage For Water Damage Is Resolved

    BRIDGEPORT, Conn. - An insured's motion to compel appraisal in a water damage coverage suit is premature because the issue of whether additional coverage exists for the damages must first be resolved, a Connecticut federal judge said June 18 (Ice Cube Building LLC v. Scottsdale Insurance Co., d/b/a Scottsdale Insurance Group, No. 17-973, D. Conn., 2018 U.S. Dist. LEXIS 101308).

    Mealey's Insurance - Coverage May Exist; Policy Covers Collapse Caused By Hidden Decay, Judge Says

    BRIDGEPORT, Conn. - An insurer's motion to dismiss a complaint filed by insureds seeking coverage for their cracking foundation walls caused by a chemical reaction in the concrete must be denied because a possibility for coverage exists as the policy at issue provides coverage for collapse caused by hidden decay and defective construction materials, a Connecticut federal judge said June 20 (Mark C. Maki, et al. v. Allstate Insurance Co., No. 17-1219, D. Conn., 2018 U.S. Dist. LEXIS 102708).

    Mealey's Insurance - Faulty Work Exclusion Does Not Apply To Insured's Loss, Magistrate Judge Says

    BOISE, Idaho - A faulty workmanship exclusion does not preclude coverage for an insured's repair costs, an Idaho federal magistrate judge ruled June 18, granting summary judgment to an insured on its breach of contract claim and awarding it $177,431.99 (Engineered Structures Inc. v. Travelers Property Casualty Company of America, No. 16-00516, D. Idaho, 2018 U.S. Dist. LEXIS 102822).

    Mealey's Insurance - LTD Claim Remanded; Administrator Must Consider Effects Of Medications

    ST. LOUIS - A Missouri federal judge on June 19 remanded a long-term disability (LTD) claim and instructed the claims administrator to evaluate if the side effects of the claimant's prescribed medications affected the claimant's ability to perform any occupation (Lisa Conner v. Ascension Health, et al., No. 17-021, E.D. Mo., 2018 U.S. Dist. LEXIS 102064).

    Mealey's Insurance - Judge Finds Service On Niece Of Doctor Accused Of Fraud Sufficient

    ANN ARBOR, Mich. - A federal judge in Michigan on June 19 denied a doctor's motion to dismiss a lawsuit brought by Allstate Insurance Co. accusing him and his practice of submitting fraudulent claims, finding that service of the complaint to his niece was sufficient to establish that he lived there (Allstate Insurance Co., et al. v. Utica Physical Therapy Inc., et al., No. 17-cv-13823, E.D. Mich., 2018 U.S. Dist. LEXIS 101764).

    Mealey's Insurance - Insured Seeks Coverage For Suit Disputing Constitutionality Of Probationary Services

    WILMINGTON, Del. - An insured on June 15 sued its excess insurer in Delaware Superior Court, seeking coverage for a class action challenging the constitutionality of its subsidiary's private probationary services (Providence Service Corporation v. Illinois Union Insurance Company, No. 18C-06-114, Del. Super.).

    Mealey's Insurance - Native Alaskan Village Sues Contractor Over Work Done On Hydroelectric Plant

    ANCHORAGE, Alaska - A Native Alaskan village and its council say in a June 18 federal court lawsuit that a construction company owes the village $450,000 for shoddy work done and then left unrepaired on the village's hydroelectric plant (Native Village of Chignik Lagoon v. Orion Marine Contractors, Inc., et al., No. 3:18-cv-00140, D. Alaska).

    Mealey's Insurance - Insureds Object To Magistrate's Recommendation In Dispute Over $1.8M In Fine Wine

    DENVER - Insureds on June 19 objected to a magistrate's recommendation to deny their renewed motion for leave to amend their complaint in a dispute over coverage for more than $1.8 million in undelivered fine wine, contending the magistrate constructed an excuse for the insurer and then relied upon it to support his recommended dismissal (Malik M. Hasan, M.D., et al. v. AIG Property Casualty Co., No. 16-02963, D. Colo.).

    Mealey's Insurance - New Jersey High Court Grants Insurer Leave To Appeal PIP Benefits Ruling

    TRENTON, N.J. - The New Jersey Supreme Court on June 15 granted an auto insurer leave to appeal a ruling finding the insurer liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. N/A, N.J. Sup., 2018 N.J. LEXIS 795).

    Mealey's Insurance - Judge Adopts Recommendation To Revoke Fraud Defendant's Supervised Release

    COVINGTON, Ky. - A federal judge in Kentucky on June 19 adopted a magistrate judge's June 15 recommendation to order a man who pleaded guilty to three counts of aiding and abetting insurance fraud to serve 14 months in prison for violating the conditions of his supervised release (United States of America v. Roben Casey Bykovny, No. 15-36-DLB-CJS-7, E.D. Ky.).

    Mealey's Insurance - 11th Circuit Dismisses Appeal In Mold Damages Suit, Says Orders Are Not Appealable

    ATLANTA - The 11th Circuit U.S. Court of Appeals on June 18 dismissed an appeal by insureds seeking coverage for mold damages after determining that jurisdiction does not exist because the district court did not issue a final and appealable judgment against the insureds (A. Denise Aldridge, et al. v. Travelers Home and Marine Insurance Co., No. 18-11310, 11th Cir., 2018 U.S. App. LEXIS 16406).

    Mealey's Insurance - 'Your Product' Exclusion Bars Coverage For Costs To Repair Insured's Units

    MINNEAPOLIS - Costs to repair and replace an insured's insulating glass units (IGUs) are precluded by the "your product" exclusion, a Minnesota federal judge ruled June 18, granting and denying in part summary judgment to an insurer (National Union Fire Insurance Company of Pittsburgh, PA v. Viracon Inc., No. 16-482, D. Minn., 2018 U.S. Dist. LEXIS 101449).

    Mealey's Insurance - Maryland Casualty Says Latest Insurer Liability Action Should Get The Boot

    WILMINGTON, Del. - A recent lawsuit in a string of actions seeking to hold insurers of former Chapter 11 debtor W.R. Grace & Co. liable for claimants' asbestos diseases should be dismissed because a Delaware federal bankruptcy judge has already found that the claims are barred by the protections afforded the insurers in W.R. Grace's reorganization, one insurer argues in a June 15 filing (Barbara Hunt, et al. v. Maryland Casualty Company, No. 18-50402, D. Del. Bkcy.).

    Mealey's Insurance - Insurer's Lead Coverage Suit Permitted To Proceed; Motion To Stay Denied

    SAN FRANCISCO - A stay of an insurer's suit seeking a declaration regarding its duty to defend an insured in an underlying lead exposure suit is not warranted because the insurer's coverage suit does not present the same issues as the underlying lead exposure suit and the insured will not be prejudiced if the insurer's suit proceeds, a California federal judge said June 18 in denying the insured's motion to stay (James River Insurance Co. v. W.A. Rose Construction, et al., No. 18-2030, N.D. Calif., 2018 U.S. Dist. LEXIS 101698).

    Mealey's Insurance - Tax Judge: Company Did Not Issue Insurance, Reinsurance Contracts

    WASHINGTON, D.C. - Because a company did not issue insurance or reinsurance contracts during the tax years at issue, a U.S. tax judge ruled June 18 that it did not receive more than 50 percent of its gross receipts from insurance premiums (Reserve Mechanical Corp. v. Commissioner of Internal Revenue, No. 14545-16, U.S. Tax).

    Mealey's Insurance - Judge: No Coverage For Insured's Costs From Nondefective Repairs

    SALT LAKE CITY - Two insurers owe no coverage to an insured contractor for costs incurred from repairing nondefective parts of construction projects as a result of the process to remove and replace a subcontractor's nonconforming lumber, a Utah federal judge ruled June 18 (Big-D Construction Midwest LLC v. Zurich American Insurance Co., No. 16-952, D. Utah).

    Mealey's Insurance - California Federal Judge Overturns Insurer's Denial Of LTD Benefits

    SAN FRANCISCO - A disability claimant is entitled to long-term disability (LTD) benefits because the evidence from the claimant's treating physicians and evidence obtained from the disability insurer's medical reviewers support a finding that the claimant is disabled under the plan's any-occupation standard, a California federal judge said June 18 (Sarabjit Sangha v. Cigna Life Insurance Company of New York, No. 17-5158, N.D. Calif., 2018 U.S. Dist. LEXIS 101725).