LexisNexis® Legal Newsroom
Mealey's Insurance - Stay Would Not Be Fair To Parties In Bad Faith Lawsuit, Judge Rules

FRESNO, Calif. - A federal judge in California on June 14 denied motions to stay and to dismiss filed by insureds in an insurance breach of contract and bad faith lawsuit, ruling that staying the proceedings pending appeal of an underlying lawsuit would not be fair to the parties involved in the instant action (Paul Evert's RV Country Inc., et al. v. Universal Underwriters Insurance Co., No. 15-0124, E.D. Calif.; 2016 U.S. Dist. LEXIS 77360).

Mealey's Labor & Employment - Tennessee Appeals Court: ERISA Preempts Claims In Lawsuit Against Insurer

NASHVILLE, Tenn. - A Tennessee Court of Appeals panel on June 9 concluded that the Employee Retirement Income Security Act preempts state law causes of action based on implied-in-law contract in a suit brought by health care corporations to recover costs for emergency medical services to patients participating in Blue Cross BlueShield of Tennessee Inc.'s (BCBST) insurance plans (HCA Health Services of Tennessee Inc., et al. v. BlueCross BlueShield of Tennessee Inc., No. M2014-01869, Tenn. App.; 2016 Tenn. App. LEXIS 407).

Mealey's Insurance - California Appeals Court: Man Waived Right To Appeal As Part Of Plea

RIVERSIDE, Calif. - A California appeals panel on June 9 refused to vacate a man's sentence of 24 months of probation after pleading guilty to two counts of making a fraudulent claim for payment of a loss under a contract of insurance, holding that he waived his right to appeal as part of the agreement (People of the State of California v. Ivan Romano, No. E064149, Calif. App., 4th Dist., Div. 2; 2016 Calif. App. Unpub. LEXIS 4225).

Mealey's Insurance - Judge Rules In Insurer's Favor In Coverage Suit Over Employment-Related Wage Claims

SACRAMENTO, Calif. - A California federal judge on June 7 entered judgment in favor of an insurer one day after granting its motion to dismiss declaratory relief, breach of contract and bad faith claims in a dispute over coverage for underlying employment-related wage disputes (Granite Outlet Inc. v. Hartford Casualty Insurance Co., No. 14-00575, E.D. Calif.; 2016 U.S. Dist. LEXIS 74238).

Mealey's Insurance - Conclusory Allegations Doom Claim In Bad Faith Suit, Magistrate Judge Rules

PHILADELPHIA - Dismissal of a bad faith claim in an insurance breach of contract and bad faith lawsuit is proper because an insured has provided only conclusory allegations in making her claims against the insurer, a federal magistrate judge in Pennsylvania ruled June 8 (Mary Camp v. New Jersey Manufacturers Insurance Co., No. 16-1087, E.D. Pa.; 2016 U.S. Dist. LEXIS 74496).

Mealey's Insurance - 1st Circuit Certifies 3 Questions In Employment Practices Coverage Dispute

BOSTON - The First Circuit U.S. Court of Appeals on June 9 certified three questions in an employment practices liability coverage dispute to the Massachusetts Supreme Judicial Court, noting that the outcome "could affect scores of insurance contracts in Massachusetts" (Mount Vernon Fire Insurance Co. v. VisionAid, Inc. f/k/a H.L. Boulton Co. Inc., No. 15-1351, 1st Cir.; 2016 U.S. App. LEXIS 10464).

Mealey's Insurance - Judge Substantially Denies Summary Judgment Motion In Bad Faith Lawsuit

SEATTLE - A federal judge in Washington on June 6 substantially denied an insurer's motion for partial summary judgment in an insurance breach of contract and bad faith lawsuit, ruling that although the state does not recognize a claim for breach of fiduciary duty by an insurer, the insured has properly pleaded the remaining claims (Claire A. Hews v. State Farm Mutual Automobile Insurance Co., No. 15-834, W.D. Wash.; 2016 U.S. Dist. LEXIS 73486).

Mealey's Insurance - Federal Magistrate Judge Dismisses Insurer's Fraud Indemnity Counterclaims

PITTSBURGH - A Pennsylvania federal magistrate judge on June 3 dismissed fraud and indemnification counterclaims filed by an insurer in a lawsuit over a contract payment dispute between a town's wastewater authority and the insurer (Liberty Mutual Insurance Co. v. The Municipal Authority of the City of McKeesport, No. 15-1319, W.D. Pa.).

Mealey's Banking & Finance - Panel: No Directors, Officers Liability Coverage For Securities Holders' Claims

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 6 held that an insured failed to demonstrate that securities violations claims against it fell under a directors, officers and corporate liability insurance policy's exception to the "insured v. insured" exclusion, affirming a lower federal court's dismissal of the insured's breach of contract and bad faith lawsuit against its insurer (AMERCO v. National Union Fire Insurance Company of Pittsburgh PA, No. 14-16041, 9th Cir.; 2016 U.S. App. LEXIS 10209).

Mealey's Antitrust/Unfair Competition - Class Certification Sought In Suit Alleging Privacy Violations By Google Wallet

SAN JOSE, Calif. - The putative lead plaintiff in a suit alleging breach of contract and violation of California's unfair competition law (UCL) against Google Inc. filed a motion for class certification in California federal court on June 3, alleging that privacy violations made via the Google Wallet feature affected millions of potential class members (Alice Svenson v. Google Inc., et al., No. 5:13-cv-04080, N.D. Calif.).

Mealey's Insurance - Natural Foods Chain Sues Insurer For Coverage Of Data Breach Suit

DENVER - In a June 2 complaint filed in Colorado federal court, the owners of the Vitamin Cottage chain of natural food and supplements stores sued their businessowners insurance provider, alleging breach of contract and bad faith for the insurer's failure to provide a defense in a putative lawsuit related to a 2015 data breach (Natural Grocers by Vitamin Cottage Inc., et al. v. AMCO Insurance Co., No. 1:16-cv-01326, D. Colo.).

Mealey's Litigation Procedure - Class Certification Sought In Suit Alleging Privacy Violations By Google Wallet

SAN JOSE, Calif. - The putative lead plaintiff in a suit alleging breach of contract and violation of California's unfair competition law (UCL) against Google Inc. filed a motion for class certification in California federal court on June 3, alleging that privacy violations made via the Google Wallet feature affected millions of potential class members (Alice Svenson v. Google Inc., et al., No. 5:13-cv-04080, N.D. Calif.).

Mealey's Insurance - Employer Not A Party To Insurance Contract, Judge Rules In Bad Faith Suit

MONTGOMERY, Ala. - Dismissal of claims in an insurance breach of contract and bad faith lawsuit is proper because beneficiaries to a life insurance policy have failed to show that an employer was a party to the contract or that it acted in bad faith in failing to continue payroll deductions for payment of the insurance policy, a federal judge in Alabama ruled June 3 (Nicholas Vinson, et al. v. Metropolitan Life Insurance Co., et al., No. 15-0885, M.D. Ala.; 2016 U.S. Dist. LEXIS 72611).

Mealey's Insurance - Panel: No Directors, Officers Liability Coverage For Securities Holders' Claims

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 6 held that an insured failed to demonstrate that securities violations claims against it fell under a directors, officers and corporate liability insurance policy's exception to the "insured v. insured" exclusion, affirming a lower federal court's dismissal of the insured's breach of contract and bad faith lawsuit against its insurer (AMERCO v. National Union Fire Insurance Company of Pittsburgh PA, No. 14-16041, 9th Cir.; 2016 U.S. App. LEXIS 10209).

Mealey's Insurance - Panel Quashes Abatement Order In Insureds' Breach Of Contract Lawsuit

WEST PALM BEACH, Fla. - A trial judge erred in granting an abatement order in a breach of contract lawsuit between insureds and their homeowners insurer, a Florida appeals panel ruled June 1, quashing the order and remanding for further proceedings (Raymond Diaz and Surey Diaz v. Florida Peninsula Insurance Co., No. 4D15-3283, Fla. App., 4th Dist.; 2016 Fla. App. LEXIS 8341).

Mealey's Insurance - Judge: Claims Of Assignee Of Reinsurance From Insolvent Insurer Are Untimely

CHICAGO - A federal judge in Illinois on May 31 held that the assignee of certain reinsurance recoverables' breach of contract claims against a Brazilian reinsurer are untimely under Illinois law (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 12-cv-06357, N.D. Ill.; 2016 U.S. Dist. LEXIS 70462).

Mealey's Insurance - Abatement Of Bad Faith Claim In Workers' Compensation Suit Proper, Judge Rules

TAMPA, Fla. - Dismissal of a statutory bad faith claim in a workers' compensation coverage dispute is not proper because abatement of the claim pending resolution of a breach of contract claim is appropriate, a federal judge in Florida ruled May 26 (DSK Group Inc. v. Zurich American Insurance Co., No. 15-1987, M.D. Fla.; 2016 U.S. Dist. LEXIS 69225).

Mealey's Insurance - Surface Water Exclusion Bars Insured's Coverage, 8th Circuit Concludes

ST. LOUIS - A surface water exclusion in a homeowners insurance policy precludes coverage for damage from a pipe leaking, the Eighth Circuit U.S. Court of Appeals ruled May 27, affirming summary judgment to the insurer on a breach of contract claim (Michael Bull v. Nationwide Mutual Fire Insurance Co., No. 15-1397, 8th Cir.; 2016 U.S. App. LEXIS 9703).

Mealey's Insurance - 8th Circuit: Fact Issue Exists As To Adjustment Of Claim For Hail-Damaged Crops

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on May 25 found that there is a factual dispute concerning an insurer's adjustment of a claim for hail-damaged soybean crops, reversing and remanding a lower federal court's ruling in favor of the insurer on the insured's breach of contract and bad faith claims (Bruhn Farms Joint Venture v. Fireman's Fund Insurance Co., No. 15-2202, 8th Cir.; 2016 U.S. App. LEXIS 9542).

Mealey's Labor & Employment - 9th Circuit Affirms Dismissal Of ERISA Claims Against Booz Allen

PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on May 24 affirmed dismissal of ERISA and breach of contract claims against Booz Allen Hamilton Inc. (BAH) arising from an employment dispute (Foster Rich v. Ralph W. Shrader, et al., No. 14-55484, 9th Cir.; 2016 U.S. App. LEXIS 9488).

Mealey's Insurance - Judge: Insureds' Chance Of Providing Support For Bad Faith Claim Likely

OKLAHOMA CITY - Dismissal of an insurance breach of contract and bad faith lawsuit is not proper because insureds have shown that they have a "reasonable likelihood" of providing factual support for their claim, a federal judge in Oklahoma ruled May 19 (Steven Daniels, et al. v. Safeco Insurance Company of America, No. 16-360, W.D. Okla.; 2016 U.S. Dist. LEXIS 65964).

Mealey's Insurance - Texas Federal Judge Grants Motion To Dismiss, Allows Insured To Replead Claims

DALLAS - Because an insured failed to prove that a third-party administrator tortiously interfered with an insurance contract when handling underlying asbestos coverage claims on behalf of the insurer, a Texas federal judge on May 20 granted the third-party administrator's motion to dismiss and granted the insured's leave to amend its complaint to replead its claims against the third-party administrator (Celanese Corp. v. OneBeacon America Insurance Co., et al., No. 15-03822, N.D. Texas).

Mealey's Insurance - Judge Dismisses Breach Of Contract, Bad Faith Suit Filed By Insured And Spouse

SEATTLE - A Washington federal judge on May 19 granted professional liability insurers' joint motion to dismiss a breach of contract and bad faith lawsuit brought by their psychologist insured, her spouse and their marital community property (Lana R. Staheli PH.D., et al. v. Chicago Insurance Company, et al., No. 16-0096, W.D. Wash.; 2016 U.S. Dist. LEXIS 66240).

Mealey's Litigation Procedure - VTech Data Breach Plaintiffs Oppose Dismissal Of Suit Sounding In Contract

CHICAGO - A group of lead plaintiffs argue in a May 18 brief that their putative class claims related to the breach of a digital smart toys maker's website should not be dismissed, telling an Illinois federal court that they properly alleged contractual claims based on the defendant's failure to keep their personally identifiable information (PII) secure (In re VTech Data Breach Litigation, No. 1:15-cv-10889, N.D. Ill.).

Mealey's Insurance - Magistrate Judge Recommends Denial Of Motion To Dismiss In Bad Faith Suit

SCRANTON, Pa. - A federal magistrate judge in Pennsylvania on May 17 issued a report and recommendation in an insurance breach of contract and bad faith lawsuit, recommending that the district court deny an insurer's motion to dismiss so that it may file a motion for summary judgment and recommending that the insured in the action file a more definite statement regarding her bad faith claim (Sarah Long v. New Jersey Manufacturers Insurance Co., et al., No. 14-2428, M.D. Pa.; 2016 U.S. Dist. LEXIS 65575).