LexisNexis® Legal Newsroom
Mealey's Insurance - Judge: Factors Weigh In Favor Of Federal Court Retaining Jurisdiction

BLUEFIELD, W.Va. - A West Virginia federal judge on March 23 refused to dismiss an insurer's declaratory judgment lawsuit challenging coverage for a lawsuit alleging that the insured's employee filed fraudulent tax returns, finding that the factors weigh in favor of the federal court retaining...

Mealey's Insurance - Federal Judge: Excess Insurer Has No Duty To Defend, Indemnify Manufacturer

EVANSVILLE, Ind. - An Indiana federal judge on March 22 ruled in favor of an excess insurer in a manufacturer insured's breach of contract and bad faith lawsuit seeking coverage for an underlying lawsuit alleging claims for breach of contract, breach of express warranty, breach of implied warranty...

Mealey's Insurance - Dismissal Appropriate Based On Insurer's Withdrawal Of Reservation Of Rights

PHOENIX - Dismissal of an insurer's suit seeking a coverage declaration for an underlying state court lawsuit alleging personal injury claims caused by pigeon droppings is appropriate because the insureds entered into an agreement with the underlying plaintiff and the insurer withdrew its reservation...

Mealey's Insurance - Expert Allowed To Opine On Compliance Of Insurance Marketing Industry Standards

SAN ANTONIO - An expert is qualified to testify on independent marketing organizations (IMOs) in the insurance industry and regarding an IMO's "compliance or lack of compliance with industry standards," a Texas federal magistrate judge ruled March 24 (Wealthmark Advisors Inc. and David...

Mealey's Insurance - Insurer Acted Arbitrarily In Determining Disability Onset Date, 1st Circuit Panel Says

BOSTON - The First Circuit U.S. Court of Appeals on March 24 determined that a disability insurer acted arbitrarily and capriciously by relying on a job description of a generic "lawyer" rather than a job description of a specialized "environmental lawyer" when it determined the onset...

Mealey's Insurance - Judge Trims Some Claims Over Billing For Vein Procedures Due To Pleadings

CHICAGO - A federal judge in Illinois dismissed without prejudice claims from a man that his former employer falsely billed Medicare, Medicaid and other private insurers for endovascular laser therapy (EVLT) procedures that were not medically necessary or done with reused laser fibers, finding that the...

Mealey's Insurance - Louisiana High Court Majority Refuses To Hear Appeal In Medical Malpractice Suit

NEW ORLEANS - A majority of the Louisiana Supreme Court refused to reconsider an appeals court's affirmation of a lower court's finding that a doctor breached the standard of care applicable to an obstetrician and gynecologist in failing to obtain a patient's informed consent before performing...

Mealey's Insurance - Judge: Decision-Making Authority Does Not 'Arise Out Of' Tangible Property Damage

HOUSTON - A Texas federal judge on March 23 found that an insurance policy's property damage exclusion does not bar directors and officers and entity liability coverage for at least two underlying claims against a homeowners association insured stemming from Hurricane Ike damage (The Landing Council...

Mealey's Insurance - Asbestos Reinsurance Dispute Parties Ordered To Meet For Settlement Conference

UTICA, N.Y. - A federal magistrate judge in New York on March 27 ordered parties to a reinsurance dispute to meet for a settlement conference with the magistrate judge (Utica Mutual Insurance Company v. Fireman's Fund Insurance Company, No. 09-cv-00853, N.D. N.Y.).

Mealey's Insurance - Appeals Court Finds Woman Waived Sufficiency-Of-Evidence Argument

HARRISBURG, Pa. - An appeals court panel in Pennsylvania on March 23 affirmed a woman's conviction and sentencing for insurance fraud, finding that she waived her argument challenging the sufficiency of the evidence that was presented during trial (Commonwealth of Pennsylvania v. Emma Comer, No....

Mealey's Insurance - Insurers Sue Saudi Arabia Under Justice Against Sponsors Of Terrorism Act

NEW YORK - Insurers on March 23 filed a new complaint against Kingdom of Saudi Arabia and/or the Saudi High Commission for Relief of Bosnia & Herzegovina (SHC) in a federal district court, contending that facts and related evidence presented by victims of the Sept. 11, 2001, terrorist attacks have...

Mealey's Insurance - Court Did Not Abuse Its Discretion In Staying Coverage Issues, Illinois Panel Says

CHICAGO - An Illinois appeals panel on March 24 found that a lower court did not abuse its discretion by staying litigation as to an insurance policy's "care, custody, or control" and "professional services" exclusions in a coverage dispute arising from 65 underlying lawsuits...

Mealey's Insurance - Judge: Bifurcation Won't Result In Quicker Resolution Of Claims In Bad Faith Suit

ALBUQUERQUE, N.M. - Bifurcation and a stay of all noncontractual claims in an insurance breach of contract and bad faith lawsuit is not proper because bifurcation would not result in a "more expeditious resolution" of the action, a federal judge in New Mexico ruled March 27 in denying an insurer's...

Mealey's Insurance - Disability Plan's Provision Granting Discretionary Authority Is Void

SAN FRANCISCO - A de novo standard of review must be applied in a claimant's suit seeking long-term disability benefits because the plan's discretionary authority provision is void under California state law, a California federal judge said March 27 (Peter Englert v. The Prudential Insurance...

Mealey's Insurance - Judge: Complaint Fails To Allege Direct Harm To Class 'Because Of Bodily Injury'

BOSTON - A Massachusetts federal judge on March 27 held that underlying class allegations against an insured do not allege bodily injury claims and, as a result, do not seek damages because of bodily injury, granting an insurer's motion for partial summary judgment in a coverage dispute over claims...

Mealey's Insurance - Disability Claimant's Suit Barred; Administrative Remedies Not Exhausted, Judge Says

BIRMINGHAM, Ala. - Because a disability claimant failed to file an administrative appeal within 180 days of the termination of his long-term disability (LTD) benefits, the claimant's suit against the disability insurer is barred, an Alabama federal magistrate judge said March 24 (Joey Horton v. United...

Mealey's Insurance - Reinsurer Wants To Know Why Reinsured Allocated Asbestos Losses The Way It Did

BOSTON - A reinsurer asked a federal court in Massachusetts on March 24 to compel its reinsured to supply documents relating to the allocation of asbestos-related losses (Lamorak Insurance Company v. Everest Reinsurance Co., No. 15-cv-13425, D. Mass.).

Mealey's Insurance - Liquidator Of Insolvent Insurer Reports Collection Of $17M In Reinsurance

HARRISBURG, Pa. - The liquidator of an insolvent insurer submitted her report to a Pennsylvania court on March 28, outlining $17.2 million in reinsurance collections and other details (In re: Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Insurance - Court Finds Uninsured Motorist Case Did Not Prevent Bad Faith Claim

SEATTLE - A Washington state court on March 28 reversed a trial court's decision that granted summary judgment for an insurer on an insurer's bad faith claim in relation to a coverage suit, finding that a previous action seeking uninsured motorist coverage did not preclude her from filing a bad...

Mealey's Insurance - Judge: Water Exclusion Bars Coverage To Insureds For Damage From Collapsed Pipe

MIAMI - An insurance policy's water exclusion precludes payment to insureds for water damage and other repairs stemming from their collapsed and backed-up pipe, a Florida federal judge ruled March 28, granting summary judgment to the insurer (Ken Cameron and Michelle Cameron v. Scottsdale Insurance...

Mealey's Insurance - Disability Claimant's Suit Properly States Claim For Relief, Federal Judge Says

BILLINGS, Mont. - A Montana federal judge on March 28 denied a disability insurer's motion to dismiss after determining that the disability claimant's complaint properly states a claim for relief under the Employee Retirement Income Security Act (Theresa Sand-Smith v. Liberty Life Assurance Company...

Mealey's Insurance - Insured's Misrepresentation Defeats Coverage, Bad Faith Claim, Judge Rules

BALTIMORE - Finding that a policyholder was bound by a material misrepresentation made by its insurance broker on a policy application, a Maryland federal judge on March 27 held that an insurer was entitled to rescind the policy, defeating the insured's breach of contract and bad faith claims (Dominant...

Mealey's Insurance - Judge Adopts Magistrate's Recommendation To Defer Insurer's Indemnification Duty

JACKSONVILLE, Fla. - A Florida federal judge on March 28 adopted a magistrate's report that recommended staying the portion of a professional liability insurer's declaratory judgment lawsuit that disputes it duty to indemnify its property management firm insured pending the resolution of underlying...

Mealey's Insurance - Judge Deems Summary Judgment Motion In Reinsurance Dispute Withdrawn

SYRACUSE, N.Y. - A federal judge in New York on March 29 ordered that a reinsured's motion for summary judgment be withdrawn because a motion to seal certain supporting documents is currently under consideration (Munich Reinsurance America, Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743...

Mealey's Insurance - Judge Rules On Insurer's Duty To Hurricane Sandy Claims Based On Expert Testimony

TRENTON, N.J. - After finding expert testimony on the scope and value of damages incurred by two supermarkets during Hurricane Sandy to be admissible, a New Jersey federal judge on March 28 granted in part and denied in part summary judgment to an insurer (MD Retail Corp. d/b/a Monmouth Beach Supermarket...