ROCKFORD, Ill. - An Illinois federal judge on Sept. 19 granted a professional liability insurer's request to rescind three policies because of material misrepresentations that a patent and trademark attorney insured made on his application (Minnesota Lawyers Mutual Insurance Co. v. Jerry A. Schulman, et al., No. 14-50142, N.D. Ill., Eastern Div.; 2016 U.S. Dist. LEXIS 127261).
BALTIMORE - An underlying plaintiff is not entitled to coverage under policies issued to the owner of a rental property where she allegedly sustained damages as a result of lead paint because the underlying plaintiff is not an insured or a beneficiary under the policies at issue and because the policies at issue were rescinded pursuant to an agreement between the insurer and insureds, a Maryland federal judge said Sept. 15 (CX Reinsurance Co. Ltd. v. Stewart J. Levitas, et al., No. 15-2174, D. Md.; 2016 U.S. Dist. LEXIS 125390).
TROY, Mich. - No coverage is owed to an insured seeking coverage for a damaged roof because the cause of the damage was wet rot, which is clearly an excluded cause of loss under the applicable policy, the Michigan Court of Appeals said Sept. 15 (Michigan Battery Equipment Inc. v. EMCASCO Insurance Co., No. 326945, Mich. App.; 2016 Mich. App. LEXIS 1720).
NEW ORLEANS - A district court erred in granting summary judgment in favor of an insurer based on its policy's pollution endorsement because it is not clear that the endorsement excludes coverage for all of the underlying claims alleged against an insured, the Fifth Circuit U.S. Court of Appeals said Sept. 16 (Federal Insurance Co. v. Northfield Insurance Co., No. 14-20633, 5th Cir.; 2016 U.S. App. LEXIS 17008).
ABERDEEN, Miss. - A federal judge in Mississippi on Sept. 16 awarded summary judgment to Allstate Indemnity Co., ruling that a man's misrepresentations on his policy application regarding the ownership of a property that sustained fire damage and his failure to inform the company of prior insurance claims warrant voiding the policy (Allstate Indemnity Company v. Terry W. Richey III, et al., No. 15CV00073-NBB-DAS, N.D. Miss.; 2016 U.S. Dist. LEXIS 126385).
SALT LAKE CITY - An insurer did not act in bad faith in denying a claim for coverage under a homeowners insurance policy pursuant to the policy's earth movement exclusion for damage caused by a rockfall, a federal judge in Utah ruled Sept. 15, because the policy was not ambiguous and did not provide coverage for such an event (Western United Insurance Co., d/b/a AAA Insurance Co., v. Janelle Heighton, et al., No. 14-435, D. Utah; 2016 U.S. Dist. LEXIS 125598).
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).
PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on Sept. 14 affirmed the denial of a woman's motion for a new trial, holding that even though a judge erred in allowing testimony that inculpated the defendant, there was sufficient evidence to support her conviction of mail fraud in connection with a scheme to submit fraudulent insurance bills (United States of America v. Theresa Fisher, No. 15-50306, 9th Cir.; 2016 U.S. App. LEXIS 16830).
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Sept. 16 affirmed a lower federal court's ruling that there is no coverage for the Tennessee attorney general's lawsuit against the provider of bio-identical hormone replacement therapy because the insured made material misrepresentations on its insurance application (Dan Hale, et al. v. Travelers Casualty and Surety Company of America, No. 15-6443, 6th Cir.; 2016 U.S. App. LEXIS 17034).
DETROIT - A federal magistrate judge did not err in recommending that a defendant's motion for summary judgment be granted because the available medical evidence supports the denial of a disability claimant's long-term disability claim, a Michigan federal judge said Sept. 13 in adopting the magistrate judge's report and overruling the claimant's objections to the report (Scott M. Bennetts v. AT&T Umbrella Plan No. 1, No. 15-10087, E.D. Mich.; 2016 U.S. Dist. LEXIS 123583).
JACKSON, Miss. - Finding that material facts are in dispute in a professional liability coverage action, a Mississippi federal judge on Sept. 13 denied the insurer's motion for judgment on the pleadings and to dismiss counterclaims and allowed parties to conduct discovery and move for summary judgment (Twin City Fire Insurance Co. v. Joseph B. Moffett, No. 15-111, S.D. Miss., Western Div.; 2016 U.S. Dist. LEXIS 123952).
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Sept. 13 affirmed a lower federal court's summary judgment ruling in favor of a homeowners insurer in a coverage dispute over repairs to the insured's damaged roof following a hailstorm (Toney v. State Farm Lloyds, et al., No. 14- 40914, 5th Cir.; 2016 U.S. App. LEXIS 16771).
WILMINGTON, Del. - The Delaware Supreme Court on Sept. 12 determined that coverage for underlying asbestos bodily injury claims is owed if the bodily injury was sustained during the applicable policy periods of the excess insurance policies at issue (In re Viking Pump Inc. and Warren Pumps LLC Insurance Appeals, Nos. 518, 2014; 523, 2014; 525, 2014; 528, 2014, Del. Sup.; 2016 Del. LEXIS 474).
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).
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Sept. 13 affirmed that there is no coverage for a college lacrosse player's fatal injury because it falls squarely under sports participants and athletic participants policy exclusions (Underwriters Safety and Claims Inc., et al. v. Travelers Property Casualty Company of America, et al., No. 16-5143, 6th Cir.).
NEW YORK - Parties that sued to enforce a $7.8 million judgment in their favor told a federal court in New York on Sept. 12 that the court holds jurisdiction over the party the judgment was against (AmTrust North America, Inc. and Technology Insurance Company, Inc., as judgment creditors of Pacific Re, Inc. on behalf of its protected cell Pac Re 5-AT v. Safebuilt Insurance Services Inc., No. 16-cv-06033, S.D. N.Y.).
SAN FRANCISCO - A California federal judge on Sept. 8 vacated a Sept. 22 hearing on an insurer's motion to stay and for permission to appeal the issue of whether concealment in an insurance policy rescission lawsuit is measured under California law when the insurance policy is formed or when the policy is delivered to the insured (Illinois Union Insurance Co., et al. v. Intuitive Surgical Inc., No. 13-04863, N.D. Calif.).
NEW YORK - The Second Circuit U.S. Court of Appeals on Sept. 8 affirmed that no coverage exists for an underlying lawsuit alleging claims against an insured as a result of an oil spill because the policies at issue clearly exclude coverage for the underlying claims (Petroterminal De Panama S.A. v. Houston Casualty Co., et al., No. 15-2941, 2nd Cir.; 2016 U.S. App. LEXIS 16629).
PHILADELPHIA - A reinsurer and its reinsured told a federal court in Pennsylvania on Sept. 7 that they both anticipate the need for discovery in a late notice dispute regarding asbestos-related reinsurance billings (R&Q Reinsurance Company v. St. Paul Fire & Marine Insurance Company, No. 16-cv-01473, E.D. Pa.).
DENVER - The 10th Circuit U.S. Court of Appeals on Sept. 9 affirmed a lower federal court's summary judgment ruling in favor of an insurer in a condominium association insured and a general contractor's breach of contract and bad faith lawsuit arising from wind and hail damage (Sable Cove Condominium Association, et al. v. Owners Insurance Co., No. 15-1261, 10th Cir.; 2016 U.S. App. LEXIS 16567).
NEW YORK - A New York federal judge on Sept. 7 denied an insured's motion to dismiss an insurer's suit seeking a coverage declaration for underlying suits arising out of the insured's fracking operations because the policy at issue includes a forum selection clause designating New York as the forum to litigate any disputes (Certain Underwriters at Lloyd's, London v. New Dominion LLC, No. 16-5005, S.D. N.Y.; 2016 U.S. Dist. LEXIS 121133).
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.).
LAS VEGAS - An insurer did not act in bad faith in failing to pay an insured the policy limits under the underinsured motorist (UIM) provision of an automobile insurance policy because the insured had received payments from workers' compensation for his injuries that were deducted from the insurance payment, a federal judge in Nevada ruled Sept. 7 in granting the insurer's motion for reconsideration (Jose R. Luna v. State Farm Mutual Automobile Insurance Co., No. 15-1104, D. Nev.; 2016 U.S. Dist. LEXIS 120598).
ASHLAND, Ky. - An insurer is entitled to judgment as a matter of law in an insurance breach of contract and bad faith lawsuit because insureds failed to show that the insurer breached the terms of a homeowners insurance policy by failing to pay on claims within 30 days of receiving the proof of loss, a federal judge in Kentucky ruled Sept. 7 (Billie W. Hamm v. American Bankers Insurance Co. of Florida, No. 14-39, E.D. Ky.; 2016 U.S. Dist. LEXIS 120567).
MIAMI - A Florida federal judge on Sept. 2 granted defendants' motion to stay discovery pending resolution of their motions to dismiss an amended class action complaint alleging that they participated in a fraudulent scheme that overcharged borrowers for lender-placed insurance (LPI) (Jeffrey Parker, et al. v. AHMSI Insurance Agency Inc. d/b/a Belt Line Insurance Agency, et al., No. 15-23840, S.D. Fla.).