LexisNexis® Legal Newsroom
Mealey's Insurance - Policyholder Is Entitled To Documents Sought In Contamination Dispute

BROOKLYN, N.Y. - A New York federal magistrate judge on Nov. 23 granted an insured's motion to compel the production of documents in an environmental contamination coverage dispute after determining that the insured has shown a need for the requested documents and that the request was not overly...

Mealey's Insurance - Reinsurer Says It May Need To Depose 20 Current And Former Insurance Employees

SYRACUSE, N.Y. - A reinsurer asked a federal court in New York on Nov. 28 to intervene in a number of discovery disputes with an insurer, notably asking that the court allow it to depose up to 20 current and former employees and agents of the insurer (Utica Mutual Insurance Company v. R&Q Reinsurance...

Mealey's Insurance - Panel Denies Rehearing, Says Refinery Owner Not Covered Under Policy

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Nov. 29 denied a petition for rehearing after determining that a refinery owner seeking help with environmental cleanup costs under its parent company's insurance policy should have and could have discovered that it was not named as an insured...

Mealey's Insurance - Property Owner Unable To Show Insurer's Suit Is Untimely, Judge Rules

BALTIMORE - A federal judge in Maryland on Nov. 23 overruled a property owner's argument that an insurance company's lawsuit seeking rescission of a general liability policy due to alleged misrepresentations about lead paint violations on the policy application is untimely, ruling that the owner...

Mealey's Insurance - Court Erred In Rejecting Concurring Cause Doctrine, Majority Says, Quashes Order

TALLAHASSEE, Fla. - A majority of the Florida Supreme Court on Dec. 1 held that an appeals court erred in reversing an $8 million judgment against a homeowners insurer in a coverage dispute over alleged property damage caused by construction defects, rain and wind, quashing the lower court's opinion...

Mealey's Insurance - Judge: Missouri Does Not Recognize Bad Faith Refusal To Pay Claim

ST. LOUIS - Dismissal of a bad faith claim in an insurance dispute is proper because the state does not recognize a claim for bad faith refusal to pay benefits, but an insured has properly stated his claim for breach of contract against the insurer, a federal judge in Missouri ruled Nov. 29 in granting...

Mealey's Insurance - Evidence Shows Claimant Is Not Disabled From Any Occupation, Panel Affirms

CINCINNATI - Because six medical experts unanimously agreed that a disability claimant was not disabled from performing any occupation, the disability insurer did not act arbitrarily and capriciously in terminating the claimant's long-term disability (LTD) benefits, the Sixth Circuit U.S. Court of...

Mealey's Insurance - Policyholder Is Entitled To Limited Number Of Underwriting Files

BROOKLYN, N.Y. - A New York federal magistrate judge on Nov. 30 ruled that an insured is entitled to underwriting and claims files for a limited number of its London Market Insurers to determine if nonduplicative documents exists among the policies issued by the London Market Insurers to the insured...

Mealey's Insurance - Judge: Cardiologist's Lack Of Holistic Training Does Not Bar Testimony

ALBUQUERQUE, N.M. - A cardiologist's proposed testimony about the appropriateness of diagnoses and treatment by a doctor accused of health care fraud is reliable and relevant under Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579, 597 [1993]), a federal judge in New Mexico ruled Dec. 1...

Mealey's Insurance - Actual Cost Value Applies To Insured's Loss From Damage To Dock, Magistrate Judge Says

TACOMA, Wash. - An insured's dock is not a "building" as that term is used in an insurance policy and, thus, coverage for only actual cost value (ACV) applies, a Washington federal magistrate judge ruled Nov. 30, also finding that the insured failed to show that the insurer improperly calculated...

Mealey's Insurance - South Dakota High Court: Fact Issues Exist On Insurer's 'Your Work' Exclusion

PIERRE, S.D. - Genuine issues of material fact remain to preclude summary judgment on the application of "your work" and "professional services" exclusions in a dispute between an insurer and its insured over coverage for damage to grain bins, the South Dakota Supreme Court held Nov...

Mealey's Insurance - Texas High Court Refuses To Rehear Stowers Action Arising From Wrongful Death

AUSTIN, Texas - The Texas Supreme Court has denied a motion to rehear a lawsuit alleging that insurers failed to act in good faith to settle a liability claim stemming from a wrongful death, according to its orders pronounced Dec. 2 (Roy Seger, et al. v. Yorkshire Insurance Co. Ltd., et al., No. 13-0673...

Mealey's Insurance - California Panel Affirms Attorney Fees Order As Modified, Reduces Award By $9,994

LOS ANGELES - A California appeals panel on Dec. 1 affirmed a lower court's attorney fee award in favor of an insurer except as to $9,994.76 in fees that were not recoverable, reducing the total award to $73,218.29 (Wertheim LLC v. The Bar Plan Mutual Insurance Co., No. B268539, Calif. App., 2nd...

Mealey's Insurance - Termination Of Benefits Was Not Abuse Of Discretion, Federal Judge Says

LOS ANGELES - A California federal judge on Nov. 30 determined that a disability insurer did not abuse its discretion when it terminated a claimant's short-term disability benefits because the insurer's termination was based on reliable evidence (Greg Martin v. Aetna Life Insurance Co. et al...

Mealey's Insurance - Coverage Owed For Vitamin E Supplement Claims, Texas Federal Judge Determines

WICHITA FALLS, Texas - Because an excess liability policy provides coverage for the negligent conduct of an insured arising from the manufacture and distribution of a vitamin E supplement, class plaintiffs are entitled to access $15 million held in the court's registry, a Texas federal judge said...

Mealey's Insurance - Judge: Amount In Controversy Standard In Bad Faith Suit Not Met

LOS ANGELES - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper, a federal judge in California ruled Dec. 1, because an insurer failed to show that the amount in controversy meets the statutory requirements for removal (Jules Kraut, et al. v. Bankers Life and Casualty...

Mealey's Insurance - Illinois Panel: Appeal Seeking Coverage For $8.4M Junk Fax Ads Award Is Untimely

CHICAGO - An Illinois appeals panel held Dec. 5 that it lacks jurisdiction to hear a claimant's appeal in a dispute over insurance coverage for an underlying $8,414,374.50 judgment arising from unsolicited fax advertisements in violation of the Telephone Consumer Protection Act (TCPA), rejecting...

Mealey's Insurance - Insurer Argues It Is Entitled To Reimbursement Of Defense Costs Paid Under Deductible

SAN FRANCISCO - An insurer involved in an environmental contamination coverage dispute claims in a Dec. 1 motion for partial summary judgment filed in California federal court that it is entitled to reimbursement of the deductible it paid on behalf of its insured because the policy at issue specifically...

Mealey's Insurance - Judgment Debtor Tells Court It Is Appealing Order That It Pay Arbitration Award

NEW YORK - A judgment debtor told a federal court in New York on Dec. 2 that it is appealing a $7.8 million judgment against it related to a reinsurance participation agreement that the judgment debtor claimed it was not a party to (AmTrust North America, Inc. and Technology Insurance Company, Inc.,...

Mealey's Insurance - Supreme Court Finds No Dismissal Mandate For False Claims Act Seal Violations

WASHINGTON, D.C. - In a unanimous ruling, the U.S. Supreme Court on Dec. 6 held that the False Claims Act (FCA) "does not enact so harsh a rule" as mandating dismissal of a relator's lawsuit under the act for a violation of the statute's requirement that the relator's complaint...

Mealey's Insurance - Panel: Nurse Employed By Agency Qualifies As 'Employee' Of Hospital Under Policy

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Dec. 6 held that a nurse who was employed by a staffing agency and assigned to work at a hospital qualifies as a hospital "employee" under its insurance policy, vacating and remanding an equitable contribution lawsuit arising from...

Mealey's Insurance - Court Properly Disregarded Portions Of Expert Witness' Affidavit, 9th Circuit Says

PORTLAND, Ore. - The Ninth Circuit U.S. Court of Appeals on Dec. 5 held that a lower federal court did not err in disregarding the heat-related portions of an affidavit from an expert witness in a dispute over coverage for a building collapse (Tarleton LLC v. State Farm Fire and Casualty Co., No. 14...

Mealey's Insurance - Judge: Insurer's Revision Of Estimate In Insurance Dispute Not In Bad Faith

SCRANTON, Pa. - A federal judge in Pennsylvania on Dec. 5 granted an insurer's motion for summary judgment on an insured's claim for insurance bad faith in a homeowners insurance dispute, ruling that the insured failed to show that the insurer's actions during the investigation and subsequent...

Mealey's Insurance - Trust Did Not Have The Authority To Make Claims Decisions, Kentucky Panel Says

FRANKFORT, Ky. - The Kentucky Court of Appeals on Dec. 2 affirmed the dismissal of two disability claimants' amended complaints after finding that the claimants could not assert their claims against the trust that administered their employer's disability plan because the trust did not possess...

Mealey's Insurance - Insurer Not Required To Complete Independent Medical Exam, Judge Says

LAFAYETTE, La. - A disability insurer did not abuse its discretion in denying a claim for long-term disability benefits because the insurer was not required to complete an independent medical exam of the claimant and was not required to give greater weight to the opinions of the claimant's treating...