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Mealey's Insurance - California Federal Judge Partially Grants Insurers' Motion To Reconsider

SAN FRANCISCO - A California federal judge on July 15 partially granted a motion for reconsideration on the issue of whether a deductible applies to defense costs in an environmental contamination dispute and said the insurers are free to file a motion to amend their complaint after the underlying suit...

Mealey's Insurance - Insured Not Entitled To Consequential Damages In Bad Faith Suit, Judge Rules

LAS VEGAS - A federal judge in Nevada on July 14 granted an insurer's motion to amend judgment in an insurance bad faith and breach of contract suit, ruling that an insured failed to show that he was entitled to consequential damages (Andrew Cordova v. American Family Mutual Insurance Co., No. 13...

Mealey's Insurance - Judge Grants Reinsured Insurer $940,433 In Prejudgment Interest

ALBANY, N.Y. - A federal judge in New York issued a summary order on July 14 ordering a reinsurer to pay its reinsured nearly $1 million in prejudgment interest on a nearly $6 million principal award regarding an asbestos-related settlement agreement between the reinsured and its insured (Utica Mutual...

Mealey's Insurance - Notice-Prejudice Rule Applies In Contamination Coverage Suit, Panel Says

DENVER - A trial court erred in finding that no coverage is afforded for environmental contamination cleanup costs because the trial court failed to determine if the insurer was prejudiced by the insured's late notice of the claim, the Colorado Court of Appeals said July 14 (MarkWest Energy Partners...

Mealey's Insurance - 8th Circuit: Nondisclosure Of Medical Negligence Suit Was Equivalent Of False Assertion

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on July 19 affirmed a lower federal court's finding that a professional liability insurer was entitled to rescind its policy in a dispute over coverage for two underlying medical negligence claims against a physician specializing in obstetrics...

Mealey's Insurance - 10th Circuit Says It Does Not Have Jurisdiction Over Appeal In Appraisal Dispute

DENVER - The 10th Circuit U.S. Court of Appeals on July 19 held that it does not have appellate jurisdiction over a federal district court's nonfinal order denying confirmation of a $208,445.57 appraisal award in a hailstorm damage coverage dispute (KCOM Inc. v. Employers Mutual Casualty Co., No...

Mealey's Insurance - Judge Allows Bad Faith Claims In Suit Against Insurer Over Faulty Windows Settlements

TAMPA, Fla. - Window and sliding-glass-door manufacturers may proceed on their "bad-faith failure to settle" and "negligent failure to settle" claims against their insurer for failing to indemnify them for underlying settlements arising out of alleged defective windows, a Florida...

Mealey's Insurance - Insured's Faulty Work Is Not Covered 'Property Damage,' Panel Upholds

TRENTON, N.J. - Allegations of an insured's negligent work that caused a collapse do not constitute covered "property damage" under commercial general liability insurance policies, a New Jersey appeals panel affirmed July 15 (New Jersey-American Water Co., Inc. v. Watchung Square Associates...

Mealey's Insurance - Illinois Federal Judge Adopts Additional Findings; Judgment Properly Entered For Insurer

CHICAGO - An Illinois federal judge on July 15 agreed to adopt a disability claimant's proposed additional findings; however, the judge said the judgment in favor of a disability insurer will stand because the claimant still did not prove that he was continuously disabled under the policy at issue...

Mealey's Insurance - Judge Ends Reinsurer's Mooted Motion To Amend Its Pleadings

SYRACUSE, N.Y. - A federal judge in New York on July 18 terminated as moot a reinsurer's motion to amend its pleadings to withdraw its Bellefonte-based defenses and claims (Munich Reinsurance America Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

Special Deputy Receiver Asks Court To OK Settlement Of Home Fire Damage Claim

AUSTIN, Texas - The special deputy receiver (SDR) of an insolvent insurer asked a Texas court on July 15 to approve a settlement between a homeowner and the receivership estate of an insolvent insurer of the homeowner's fire damage claim (The State of Texas and the Texas Department of Insurance v...

Mealey's Insurance - Federal Judge Partly Grants Cosby's Motion To Stay Insurer's Coverage Dispute

LOS ANGELES - A California federal judge on July 18 granted William H. Cosby Jr.'s motion to stay a homeowners and excess insurer's coverage dispute pending resolution of an underlying lawsuit brought by model, actress and TV producer Janice Dickinson but denied the motion to the extent Cosby...

Mealey's Insurance - Jury Finds Nurse Guilty For Role In $8M Health Care Fraud Scheme

HOUSTON - A nurse at a Texas home health care services company was found guilty on three counts of health care fraud by a unanimous jury in the U.S. District Court for the Western District of Texas on July 19 for her role in an $8 million scheme that involved submitting false and fraudulent claims to...

Mealey's Insurance - Judge: 'Your Work' Exclusion Bars Arbitration Award From Insured's Faulty Work

HOUSTON - An insurance policy's "your work" exclusion precludes damages awarded in arbitration to homeowners because the insured contractor's work caused the damages, which did not include damages to the pool or work performed by other subcontractors, a Texas federal judge ruled July...

Mealey's Insurance - Judge: District Court Lacks Subject Matter Jurisdiction Over Bad Faith Suit

NEWARK, N.J. - A federal judge in New Jersey on July 19 granted an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that an insured failed to show that the district court has subject matter jurisdiction over the action (Florence Hanson v. Allstate New Jersey...

Mealey's Insurance - Judge: Insurer Did Not Act In Bad Faith In Denying Claim For Stolen Skid Loader

SALT LAKE CITY - An insurer did not act in bad faith in denying coverage for an allegedly stolen skid loader because ample evidence exists to support the insurer's denial of the claim, a federal judge in Utah ruled July 18 in an insurance bad faith and breach of contract lawsuit (Naser Awadh, et...

Mealey's Insurance - Insurer's Termination Of Benefits Was Not Arbitrary And Capricious, Judge Says

MIAMI - A disability insurer's decision to terminate a claimant's long-term disability benefits was not arbitrary and capricious because the insurer reasonably concluded that the claimant was not precluded from working in "any occupation," a Florida federal judge said July 19 (Armando...

Mealey's Insurance - 5th Circuit Rejects Argument That Tornado Loss Is 'Nothing' For Coverage Purposes

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on July 21 rejected an insurer's argument that its owes nothing to the University of Southern Mississippi Alumni Association (USMAA) for tornado damage to a building it leases from the University of Southern Mississippi (USM) because others paid...

Mealey's Insurance - Coverage Barred By CGL Policy's Professional Services Exclusion, Panel Affirms

TRENTON, N.J. - A New Jersey panel affirmed July 20 that commercial general liability coverage for an underlying negligence lawsuit against an engineering firm insured is barred by the policy's professional services exclusion (EIC Group LLC v. The Travelers Indemnity Company of America, No. A-2590...

Mealey's Insurance - Judge Rejects Claim That Insured Failed To Timely Submit Paperwork To Port Plan

SAN FRANCISCO - Dismissal of a life insurance policy beneficiary's breach of contract and bad faith lawsuit against an insurer is not proper because the beneficiary has shown that his deceased wife timely completed all necessary paperwork and submitted to her employer as administrator of the policy...

Mealey's Insurance - Insured Won't Present Evidence, Testimony In Making Bad Faith Claim, Judge Rules

HATTIESBURG, Miss. - A federal judge in Mississippi on July 18 granted three motions in limine filed by an insurer in an insurance breach of contract and bad faith lawsuit, precluding an insured from presenting evidence, damages testimony and other testimony to show that the insurer acted in bad faith...

Mealey's Insurance - Panel: No Defense Owed For Additional Insured's Alleged Intentional Bad Acts

CHICAGO - An insurer had no duty to defend an additional insured for construction defects in condominium units because nothing accidental was alleged, an Illinois appeals panel affirmed July 20, finding that the allegations include the additional insured's intentional bad acts or awareness of faulty...

Mealey's Insurance - Insured Asks 10th Circuit To Certify Question Of Law To New Mexico High Court

DENVER - Because no New Mexico court has addressed the application of the "owned or occupied" exclusion in the context of environmental contamination to sovereign property, the 10th Circuit U.S. Court of Appeals should certify a question regarding the exclusion's application to the New...

Mealey's Insurance - Judge: Faulty Workmanship Bars Insurance Claim For Damages From Collapse

ALEXANDRIA, Va. - A faulty workmanship exclusion precludes coverage for collapse damages caused by an insured's actions related to the excavation of a basement coupled with the failure to install underpinning to secure the building's foundation, a Virginia federal judge ruled July 21, finding...

Mealey's Insurance - South Dakota Majority Reverses No Coverage Ruling For Cattle Killed In Winter Storm

PIERRE, S.D. - A majority of the South Dakota Supreme Court on July 20 reversed a lower court's ruling that an insurer has no duty to indemnify its insureds for their loss of 93 cattle during winter storm Atlas, finding that the insurance policy's drowning provision is ambiguous (Richard Papousek...