LexisNexis® Legal Newsroom
Mealey's Insurance - Pollution Exclusion Bars Coverage For Noxious Fumes, Odors, Judge Says

COLUMBUS, Ga. - An insurer has no duty to defend its insured against an underlying suit alleging damages as a result of odors emanating from an insured's holding pond because the policy's pollution exclusion clearly bars coverage for the underlying suit, a Georgia federal judge said May 16 (Recyc...

Mealey's Insurance - New York Panel Reinstates Claims Against Insurer, Oil Remediation Company

BROOKLYN, N.Y. - The Second Department New York Supreme Court Appellate Division on May 16 reinstated claims of gross negligence and punitive damages against an insurer and a remediation company after determining that the insureds sufficiently stated facts to support the claims (Richard Bennett, et al...

Mealey's Insurance - Policies Must Be Construed As Primary Policies In Asbestos Exposure Coverage Suit

ELGIN, Ill. - The First District Illinois Appellate Court on May 15 affirmed a trial court's finding that insurance policies issued between 1977 and 1985 to an insured who is seeking coverage for an asbestos exposure claim are primary policies with self-insured retentions and cannot be considered...

Mealey's Insurance - Breach Of Contract Claim, Unsupported Bad Faith Claim Dismissed

MOBILE, Ala. - In granting a motion to strike and dismiss, a federal judge in Alabama on May 16 ruled that two claims in an insurance breach of contract and bad faith lawsuit are nearly identical, and an insured's bad faith claim lacks any factual allegations to support it (Carlos Todd v. State Farm...

Mealey's Insurance - Judge Declines To Join Insurers' Receiver To Breach Of Fiduciary Suit

ST. LOUIS - A Missouri federal judge on May 16 denied a request to join a special deputy receiver for three insolvent insurers to a breach of fiduciary lawsuit against a trustee for its role on pre-need funeral contracts because the trustee does not state in what capacity it would like to join the receiver...

Mealey's Insurance - N.Y. State Justice Dismisses Insureds' Suit Seeking Coverage For Garage Collapse

MINEOLA, N.Y. - A New York state justice on May 16 dismissed a suit filed by insureds in a dispute over coverage for the collapse of their garage after determining that the insureds failed to prove that the insurer breached its contract, acted in bad faith or committed fraud in its handling of the claim...

Mealey's Insurance - Panel Upholds Class Action Status In Dispute Over Illegal Insurance Transactions

BATON ROUGE, La. - A Louisiana appeals panel on May 16 affirmed certification of a class in a case against state agencies and insurers over illegal transactions made to protect the Louisiana Insurance Guaranty Association (Donald W. Abshire v. The State of Louisiana, et al., No. 2017CA0689 c/w 2017CA0690...

Mealey's Insurance - Class Suit Fails To Allege Covered Disparagement Claim, California Panel Affirms

SAN FRANCISCO - A California appeals court on May 21 affirmed a lower court's ruling that an underlying consumer class action alleging that a shampoo manufacturer insured falsely advertised its hair products as "organic" does not trigger a covered disparagement claim under its insurance...

Mealey's Insurance - Insurer Found To Have Not Delayed In Paying On Homeowners Insurance Claim

AUSTIN, Texas - Granting a motion for partial summary judgment in an insurance breach of contract and bad faith lawsuit, a federal judge in Texas on May 17 ruled that an insurer did not intentionally delay paying on a claim for coverage under a homeowners insurance policy and that insureds failed to...

Mealey's Insurance - Stockholder Sues GE Over Losses Sustained For Insurance Reinsurance Business

NEW YORK - A stockholder sued General Electric Co. (GE) and its officers and directors in a New York federal court on May 17, alleging that their actions concerning their insurance and reinsurance business resulted in billions of dollars in damages to the company (Edward Tansey v. Jeffrey R. Immelt,...

Mealey's Insurance - Homeowner Alleges Illegal Kickback Scheme Involving Reinsurance Payments

LOS ANGELES - A homeowner filed a class action complaint on May 17 against a mortgage loan company and financial services company for engaging in an illegal kickback scheme involving reinsurance payments arising out of force-placed hazard insurance policies (Kathleen Angel Eisenberg v. Ocwen Loan Servicing...

Mealey's Insurance - Billing Practices Are Not Professional Services Under Policy, 10th Circuit Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on May 22 affirmed a lower federal court's finding that an insurer had no duty to defend against an underlying class action or the Colorado attorney general's investigation of a law firm insured because the underlying claims arose from billing practices...

Mealey's Insurance - Panel Reverses No Coverage Ruling For False Claims Act Suit Against Office Depot

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on May 21 found that a lower federal court erred in holding that an insurer has no duty to defend or indemnify Office Depot Inc. in an underlying qui tam lawsuit, reversing and remanding (Office Depot Inc. v. AIG Specialty Insurance Company,...

Mealey's Insurance - 2nd Circuit Upholds Sentence For 'Brazen' Employment Insurance Fraud Scheme

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 21 upheld a federal judge in New York's decision to sentence a man who pleaded guilty to fraudulently procuring $13,961 in unemployment insurance benefits from the New York Department of Labor while working as a correctional officer to...

Mealey's Insurance - Insurer's Denial Of Coverage Under Exclusion Was Not In Bad Faith, Judge Rules

SCRANTON, Pa. - A water exclusion in a homeowners insurance policy is unambiguous and precluded coverage for damages caused when sewage backed up into an insured's basement; as a result, an insurer did not act in bad faith in denying coverage, a federal judge in Pennsylvania ruled May 21 in granting...

Mealey's Insurance - Judge Limits Liberty Mutual's Defenses Against Window Maker's Bad Faith Suit

TAMPA, Fla. - A federal judge in Florida on May 18 granted in part motions for partial summary judgment filed by a window and door manufacturer seeking recovery of $3 million it paid to resolve five defects lawsuits in Alabama state court, finding that its insurer, Liberty Mutual Fire Insurance Co.,...

Mealey's Insurance - Panel: Attorney's Alleged Conduct Is Excluded From Professional Liability Coverage

SPRINGFIELD, Ill. - An Illinois appeals panel on May 22 held that underlying allegations against an attorney insured are barred by an "intentional acts" exclusion in a professional liability insurance policy, reversing the lower court (Illinois State Bar Association Mutual Insurance Company...

Mealey's Insurance - Former NFL Player Files Class Action, Alleges Plan Breached Fiduciary Duties

NEW YORK - A former National Football League player on May 22 filed suit in New York federal court, alleging that the NFL's retirement plan and its fiduciaries duty violated the Employee Retirement Income Security Act by refusing to reclassify players' disability benefits as football degenerative...

Mealey's Insurance - Judge Refuses To Reconsider Denial Of Summary Judgment Motion In Reinsurance Case

SYRACUSE, N.Y. - In a dispute over whether a reinsurer is obligated to pay an insurer's defense expenses arising from a $3.2 million asbestos claims settlement, a New York federal judge on May 23 declined to reconsider an earlier finding of ambiguity in the reinsurance certificate provisions (Utica...

Mealey's Insurance - Louisiana Panel Affirms Grant Of Peremptory Exception Of Res Judicata To Insurer

SHREVEPORT, La. - A Louisiana appeals panel on May 23 affirmed a lower court's ruling that granted the peremptory exception of res judicata filed by an insurer and dismissed with prejudice an underlying lawsuit seeking penalties and damages for an insurer's alleged failure to timely pay medical...

Mealey's Insurance - Stockholders Sue Financial Company's Directors For Breach Of Fiduciary Duty

WILMINGTON, Del. - Stockholders in a May 21 complaint filed in a Delaware court accuse the directors of a financial company operating in the insurance and reinsurance business of breaching their fiduciary duty by transferring the value of stocks to their benefit (Icahn Partners LP, et al. v. Barry D...

Mealey's Insurance - Panel Reverses Dismissal Of Trust From Insolvent Insurer's Liquidator's Suit

COLUMBIA, S.C. - The South Carolina Court of Appeals on May 23 reversed a trial judge's dismissal of a dissolved self-insurance trust from a liquidator's declaratory judgment action over an insolvent insurer's coverage obligations for workers' compensation claims because it was not within...

Mealey's Insurance - Insurer Owes No Additional Coverage For Mold Damage, Federal Judge Determines

CAMDEN, N.J. - An insurer did not breach its contract or act in bad faith when it limited its payment for mold damage within an insured home because the policy at issue included a provision limiting coverage for mold damage, a New Jersey federal judge said May 23 (Charles Hobbs, et al. v. US Coastal...

Mealey's Insurance - Surgery Center's Consumer Fraud Counterclaim Against Insurers Dismissed By Judge

CHICAGO - A surgery center failed to sufficiently state a claim against two insurance companies for violating the Illinois Consumer Fraud Act (ICFA), a federal judge in Illinois ruled May 24, holding that the insurers' alleged misrepresentations to the center about whether its procedures were covered...

Mealey's Insurance - Insolvent Insurer's Policy Does Not Cover Personal Injury Suit, Panel Finds

CHICAGO - A Chicago cab company was not covered by the Illinois Insurance Guaranty Fund (IIGF) under an insolvent insurer's policy for an underlying personal injury lawsuit because the accident occurred outside the time the subject taxi was covered, an Illinois appeals panel affirmed May 23 (The...