LexisNexis® Legal Newsroom
    Mealey's Insurance - Judge Orders Petition To Confirm Arbitration Award Sealed

    NEW YORK - A federal judge in New York on Aug. 14 granted an insurer's motion to seal a petition for confirmation of an arbitration award brought against a reinsurer (Century Indemnity Company v. Global Reinsurance Corporation of America, et al., No. 15-cv-06426, S.D. N.Y.).

    Mealey's Insurance - Insurer Says It Is Due Prejudgment Remedy From Reinsurer Exceeding $1.6M

    NEW HAVEN, Conn. - An insurer told a federal court in Connecticut on Aug. 14 that it has met the requirements under Connecticut's prejudgment remedy statute by showing that it will most likely succeed in its $1,664,664.74 case against its reinsurer (Travelers Casualty & Surety Company v. R&Q Reinsurance Company, No. 14-cv-01651, D. Conn.).

    Mealey's Insurance - Magistrate Judge Denies Remand For Insured's Lawsuit Over Lead Loss

    ST. LOUIS - A Missouri federal magistrate judge on Aug. 17 declined to remand an insured's lawsuit regarding coverage for a loss caused by lead and lead dust released at a construction project for a school (Rice Painting Company Inc. v. Depositors Insurance Co., No. 15-1064, E.D. Mo.; 2015 U.S. Dist. LEXIS 107838).

    Mealey's Insurance - Coverage Barred For Contamination Claims, Nevada Federal Judge Says

    LAS VEGAS - No coverage is owed for underlying environmental contamination claims alleged against an insured because the policies at issue clearly preclude coverage for releases of pollutants that occur on the insured's premises and for releases of pollutants that are caused by third parties, a Nevada federal judge said Aug. 13 in granting an insurer's motion to dismiss the insured's complaint (Southern Nevada TBA Supply Co. d/b/a Ted Wiens Tire and Auto Centers v. Universal Underwriters Insurance Co., No. 15-46; D. Nev.; 2015 U.S. Dist. LEXIS 107284).

    Mealey's Insurance - Judge Denies Insurers' Bid For Relief From Pittsburgh Corning's Plan Approval

    PITTSBURGH - A Pennsylvania federal judge on Aug. 12 denied a request by two insurance companies for relief from the judgment approving Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization, finding that she lacks authority to grant the request and that new evidence relied on by the insurers of alleged fraud in the asbestos trust system does not show that the plan approval was procured by fraud. The next day, the insurers appealed the ruling (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy. [Mt. McKinley Insurance Company, et al. v. Pittsburgh Corning Corporation, Nos. 13-01639, 14-0144, 14-0182, W.D. Pa.]; 2015 U.S. Dist. LEXIS 105890).

    Mealey's Insurance - Experts Permitted To Testify In Carbon Monoxide Coverage Suit, Federal Judge Says

    RENO, Nev. - A Nevada federal judge on Aug. 14 denied an insurer's motion to preclude expert testimony from two witnesses because the witnesses may help the jury to decide whether the insurer reasonably interpreted the policy's total pollution exclusion and the indoor air quality exclusion as not covering a carbon monoxide leak (Century Surety Company v. Casino West, Inc., No. 07-636, D. Nev.; 2015 U.S. Dist. LEXIS 107283).

    Mealey's Insurance - Panel: $1.2M Settlement Was Intended To Cover Claims Against Diocese Only

    NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals held Aug. 14 that there is a complete lack of evidence demonstrating any intent to allocate a portion of a $1.2 million settlement in an underlying sexual abuse case to claims against defendants other than the Catholic Diocese of El Paso, affirming a lower federal court (Interstate Fire & Casualty Co. v. Catholic Diocese Of El Paso, No. 14-51113, 5th Cir.; 2015 U.S. App. LEXIS 14390).

    Mealey's Insurance - Washington Federal Judge Denies Request To Bifurcate Insured's Bad Faith Claims

    SEATTLE - A Seattle federal judge on Aug. 14 denied an insured's request to bifurcate discovery and trial for the bad faith claims alleged against its insurer in an environmental contamination coverage dispute because bifurcation would not promote judicial economy (King County v. Travelers Indemnity Co., et al., No. C14-1957, W.D. Wash.; 2015 U.S. Dist. LEXIS 107401).

    Mealey's Insurance - Insurer Breached Contract By Violating Defense Agreement, Judge Finds

    RALEIGH, N.C. - A commercial general liability insurer violated the terms of a defense agreement in failing to defend an additional insured in a construction defects case, a North Carolina federal judge ruled Aug. 14, finding that the insurer breached its contract (Liberty Mutual Fire Insurance Co. v. KB Home, et al., No. 13-831, E.D. N.C.; 2015 U.S. Dist. LEXIS 107232).

    Mealey's Insurance - Magistrate Judge Grants Insurer's Motion To Bifurcate Interpleader, Bad Faith Suits

    LOUISVILLE, Ky. - A Kentucky federal magistrate judge on Aug. 13 granted an insurer's request to bifurcate its interpleader and its insureds' bad faith actions with regard to an underlying claim for water damage (State Auto Property & Casualty Insurance Co. v. Burns Enterprises Inc., et al., No. 15-113, W.D. Ky.; 2015 U.S. Dist. LEXIS 106550).

    Mealey's Insurance - Judge: Insured Failed To Prove Coverage For Damage Occurring After Policy Expired

    SALT LAKE CITY- A Utah federal judge on Aug. 11 held that a mining company insured has failed to provide evidence that links any physical damage to its iron ore concentrate plant that occurred before April 6, 2012, to damage occurring after, granting in part an insurer's motion for partial summary judgment as to the insured's physical damage claims (National Union Fire Insurance Company of Pittsburgh, Pa. v. CML Metals Corp., No. 12-00934, D. Utah, Central Div.; 2015 U.S. Dist. LEXIS 105873).

    Mealey's Insurance - Judge Says Defendant Can Submit Expert Reports To Oppose Summary Judgment Motion

    SELMA, Ala. - A federal judge in Alabama on Aug. 12 denied in part Nationwide Mutual Insurance Co.'s motion to strike affidavits submitted by a defendant company in opposition to the insurer's motion for summary judgment, ruling that the defendant could use expert reports because they do not constitute testimony (Nationwide Mutual Insurance Company v. Nall's Newtown Tire a/k/a Nall's Newtown Tire Service Inc., No. 14-110-CG-M, S.D. Ala.; 2015 U.S. Dist. LEXIS 105799).

    Mealey's Insurance - Judge Denies Motion To Exclude Testimony Of Insurer's Experts About Alleged Arson

    SELMA, Ala. - A federal judge in Alabama on Aug. 12 found that the failure of two experts for Nationwide Mutual Insurance Co. to strictly comply with all National Fire Protection Association (NFPA) standards when concluding that a fire was intentionally set did not render their methodologies unreliable and that they could testify on behalf of the company in pursuit of its claim against a company submitting a fraudulent claim for fire loss (Nationwide Mutual Insurance Company v. Nall's Newtown Tire a/k/a Nall's Newtown Tire Service Inc., No. 14-110-CG-M, S.D. Ala.; 2015 U.S. Dist. LEXIS 106363).

    Mealey's Insurance - Insured's Faulty Work Is Not An 'Occurrence,' 6th Circuit Affirms

    CINCINNATI - An insured's alleged faulty workmanship is not an "occurrence" under a commercial general liability insurance policy, the Sixth Circuit U.S. Court of Appeals affirmed on Aug. 13, finding that the insurer had no duty to defend or indemnify (Steel Supply & Engineering Co. v. Illinois National Insurance Co., No. 14-2216, 6th Cir.).

    Mealey's Insurance - Judge Finds Insurer Had Duty To Defend Insureds In Asbestos Exposure Suit

    SAN FRANCISCO - A commercial general liability insurer had at least a partial duty to defend an insured and an additional insured against allegations arising from breach of quiet enjoyment and demolition in an underlying lawsuit filed by tenants seeking damages for asbestos damages in a construction project, a California federal judge ruled Aug. 12 (Parklyn Bay Company LLC v. Liberty Surplus Insurance Corp., No. 13-3124, N.D. Calif.; 2015 U.S. Dist. LEXIS 106231).

    Mealey's Insurance - Judge Declines To Dismiss Bad Faith Claims Against Insurer In Indemnity Case

    TAMPA, Fla. - A Florida federal judge on Aug. 12 declined to dismiss an insured's bad faith for failure to settle and bad faith refusal to indemnify against a commercial liability insurer regarding its duty to indemnify a settlement of an underlying construction defects case (MI Windows & Doors LLC f/k/a MI Windows & Doors Inc. and MI Home Products Inc. v. Liberty Mutual Fire Insurance Co., No. 14-3139, M.D. Fla.; 2015 U.S. Dist. LEXIS 106108).

    Mealey's Insurance - Judge Remands Insurance Bad Faith Suit To State Court

    OKLAHOMA CITY - Remand of an insurance bad faith lawsuit to state court is not proper because an insurer has shown that the amount in controversy exceeds $75,000, a federal judge in Oklahoma ruled Aug. 12 (C&S Roofing and Fencing LLC, d/b/a C&S Construction v. State Farm Fire and Casualty Co., No. 15-527, W.D. Okla.; 2015 U.S. Dist. LEXIS 105634).

    Mealey's Insurance - Sophisticated-Insured Exception To Exclusion Not Applicable, Majority Affirms

    NEW ORLEANS - A majority of the Fifth Circuit U.S. Court of Appeals on Aug. 12 affirmed a lower federal court's ruling that the sophisticated-insured exception to a directors and officers liability insurance policy's wrongful acts exclusion is inapplicable (Certain Underwriters at Lloyds London, et al. v. Bruce Perraud, et al., No. 14-10849, 5th Cir.).

    Mealey's Insurance - Multiemployer Health Fund's Reimbursement Suit Seeks Legal Relief, 8th Circuit Says

    ST. LOUIS - A m0ultiemployer health fund is not entitled to equitable relief in the amount it paid in medical benefits to students who were also covered by student accidental medical insurance under the fund's coordination-of-benefits provision pursuant to the Employee Retirement Income Security Act, the Eighth Circuit U.S. Court of Appeals affirmed Aug. 10 (Central States, Southeast and Southwest Areas Health and Welfare Fund v. Student Assurance Services, Inc., et al., No. 14-2376, 8th Cir.; 2015 U.S. App. LEXIS 13941).

    Mealey's Insurance - Claimant Permitted To Offer Additional Evidence On Remand, Federal Judge Says

    NEW YORK - A New York federal judge on Aug. 11 clarified a prior ruling to ensure that a disability claimant is able to present additional evidence supporting her disability on remand and awarded the claimant 50 percent of the attorney fees she incurred since suing the disability insurer (Pamela Wallace v. Group Long Term Disability Plan for Employees of TDAmeritrade Holding Corp. et al., No. 13-6759, S.D. N.Y.; 2015 U.S. Dist. LEXIS 105390).

    Mealey's Insurance - Judge: Insured's Breach Of Contract Is Barred By 3-Year Limitation Clause

    SEATTLE - An insurance policy's three-year limitation clause precludes an insured's breach of contract claim for denial of coverage for earthquake damage, a Washington federal judge held Aug. 9; however, the judge allowed the bad faith claim to proceed (Larry Andrews v. St. Paul Guardian Insurance Co., No. 15-676, W.D. Wash.; 2015 U.S. Dist. LEXIS 104712).

    Mealey's Insurance - Federal Judge Says Insurer Had Duty To Defend Construction Defects Suit

    SALT LAKE CITY - An insurer had a duty to defend at least some of the underlying allegations in a construction defects case against an insured, a Utah federal judge ruled Aug. 10, granting summary judgment to another insurer that defended the insured (Maryland Casualty Co. v. Mid-Continent Casualty Co., No. 14-522, D. Utah; 2015 U.S. Dist. LEXIS 105064).

    Mealey's Insurance - Expected Injury Exclusion Does Not Bar Insured's Duty To Indemnify, Judge Finds

    NEW HAVEN, Conn. - A commercial general liability insurer has a duty to indemnify its insured for damages caused by its defectively produced shotcrete in the construction of swimming pools, a Connecticut federal judge ruled Aug. 7, finding that the expected or intended injury exclusion injury does not bar coverage (Harleysville Worcester Insurance Co. v. Paramount Concrete, et al., No. 11-578, D. Conn.; 2015 U.S. Dist. LEXIS 104869).

    Mealey's Insurance - West Virginia Law Supersedes Policy's Limitation Clause, Federal Judge Determines

    HUNTINGTON, W.Va. - A limitation provision in a disability insurance policy is not enforceable under West Virginia law because the claimant was not afforded a full two years from the accrual of her legal action to file suit against the insurer, a West Virginia federal judge said Aug. 10 (Mary R. Caldwell v. Standard Insurance Co., et al., No. 14-25242, S.D. W.Va.; 2015 U.S. Dist. LEXIS 104253).

    Mealey's Insurance - Panel: Breach Of Contract, Bad Faith Claims Barred By Statute Of Limitations

    PHILADELPHIA - A federal district court did not err in dismissing an insured's breach of contract and insurance bad faith claims because his claims were barred by their respective statutes of limitations, a Third Circuit U.S. Court of Appeals panel ruled Aug. 10 (Ralph Leporace v. New York Life and Annuity, et al., No. 14-3821, 3rd Cir.; 2015 U.S. App. LEXIS 13970).