LexisNexis® Legal Newsroom
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...

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...

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...

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...

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...

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,...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...