LexisNexis® Legal Newsroom
Mealey's Insurance - Doctor's Fraudulent Billing Scheme Allegations Lack Particularity, Judge Says

MOBILE, Ala. - A federal judge in Alabama on June 30 dismissed a physician's claims that an ear, nose and throat practice engaged in a fraudulent billing scheme in violation of the False Claims Act (FCA), finding that the allegations did not satisfy the heightened pleading requirement of Federal...

Mealey's Insurance - Panel: Reinsurers Need To File Own Complaint As To Legal Malpractice Lawsuit

CHICAGO - An Illinois statute required a surety's reinsurers and insurer to file a complaint against an attorney in their own name, or by the surety "for the use of" the reinsurers and the insurer, an Illinois appeals panel ruled June 30, dismissing a surety's legal malpractice lawsuit...

Mealey's Insurance - Insurer: Fla. Appellate Court Misapplied Key Legal Principles In Bad Faith Suit

TALLAHASSEE, Fla. - A Florida appellate court erred in reversing a jury's verdict in favor of an insured in a bad faith lawsuit, because it misapplied "well-settled principles of directed verdict law" in ruling that the insurer did not act in bad faith in failing to reach a settlement with...

Mealey's Insurance - Appeals Court Finds Judge Erred When Denying Motion To Strike Juror

NEW YORK - A New York appeals panel on July 5 ordered a new trial for a man who was convicted of insurance fraud and grand larceny in the second degree after finding that the presiding judge erred when denying the defendant's motion to strike a juror who worked for the insurance company that paid...

Mealey's Insurance - Federal Judge Says Claims Related To Environmental Remediation Not Timely Filed

BECKLEY, W.Va. - A West Virginia federal judge on July 7 granted an insurer's motion for summary judgment in an environmental remediation coverage suit after determining that the insured's claims for breach of contract and bad faith were not filed within the applicable statute of limitations...

Mealey's Insurance - Judge Finds Health Care Fraud Defendant's Trial Counsel Was Effective

DETROIT - A federal judge in Michigan on July 7 refused to vacate a man's 204-month sentence for health care fraud, health care fraud conspiracy and conspiracy to distribute controlled substances, finding that his trial attorney acted effectively (Babubhai Patel v. United States of America, No. 11...

Mealey's Insurance - Judge Dismisses Breach Of Contract Suit By Rehabilitator Against Mortgage Reinsurer

CHICAGO - An Illinois federal judge on July 5 dismissed a rehabilitator's lawsuit accusing a reinsurer of breaching its contract with an insolvent mortgage insurance provider by failing to disclose the benefits it derived from a captive reinsurance arrangement because the contract did not impose...

Mealey's Insurance - Excess Insurer Entitled To Recover $5M Settlement Payment, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on July 7 affirmed a lower federal court's finding that a software firm insured's former first-layer excess directors and officers liability insurer is entitled to recover the $5 million it paid to settle an underlying securities action...

Mealey's Insurance - Insurer Owes Defense To Insureds For Environmental Contamination Suit, Judge Says

HOUSTON - An insurer has a duty to defend its insureds in an underlying environmental contamination suit because the policy's exclusions for pollution and use of an auto do not apply to bar coverage, a Texas federal judge said July 7 in granting the insureds' motion for summary judgment (USA...

Mealey's Insurance - Judge: Opioid Possession, Intent To Distribute Charges Preclude Pretrial Release

PHILADELPHIA - A federal judge in Pennsylvania on July 7 denied a motion for pretrial release filed by a man accused of health care fraud, conspiracy to commit health care fraud and 15 counts of possession of oxycodone with intent to distribute, finding that the nature of the drug trafficking claims...

Mealey's Insurance - Panel Partly Reverses Ruling In Coverage Suit Over Food Co.'s Snowstorm Claim

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on July 11 reversed and vacated a lower court's award of prejudgment interest to a family-owned poultry and pet food company insured because the jury had to exercise discretion in determining the insured's losses from snowstorm damage but affirmed...

Mealey's Insurance - Panel: Employers Liability Exclusion Is Ambiguous; Insurer Owes Defense, Indemnity

NEW YORK - The Second Circuit U.S. Court of Appeals on July 10 affirmed a lower federal court's conclusion that a commercial general liability insurance policy's "Employers Liability Exclusion" is ambiguous as a matter of law, further finding that the insurer has a duty to both defend...

Mealey's Insurance - 11th Circuit Panel Affirms Denial Of Post-Verdict Motion In Bad Faith Suit

ATLANTA - Without providing any further detail, an 11th Circuit U.S. Court of Appeals panel on July 7 affirmed a federal district court's order denying an insurer's motion for judgment notwithstanding the verdict in an insurance bad faith lawsuit (Jesus Camacho, et al. v. Nationwide Mutual Insurance...

Mealey's Insurance - 11th Circuit Affirms Finding That Insurer's Termination Of Benefits Was Reasonable

ATLANTA - The 11th Circuit U.S. Court of Appeals on July 12 affirmed a district court's ruling that a disability insurer's termination of long-term care disability benefits was reasonable based on the evidence properly considered by the insurer (David Carr v. John Hancock Life Insurance Company...

Mealey's Insurance - Insurer's Vocational Assessment Was Not Flawed, Mississippi Federal Judge Says

JACKSON, Miss. - A disability insurer's denial of long-term disability benefits was not an abuse of discretion, a Mississippi federal judge said July 11 after rejecting the claimant's argument that the insurer's assessment of her occupation was flawed (Theresa A. Taylor v. The Prudential...

Mealey's Insurance - Illinois Judge Rejects Insured's Arguments, Denies Motion To Reconsider

CHICAGO - An Illinois judge on July 10 denied an insured's motion for reconsideration in an environmental contamination coverage suit, rejecting the insured's argument that the court erred in determining that the underlying environmental contamination suit did not allege any release of hazardous...

Mealey's Insurance - 1st Circuit Upholds Ruling Denying Arbitration Of Reinsurance Agreement

BOSTON - An arbitrator did not disregard the law when deciding that arbitration is banned for a breach of contract dispute under a reinsurance participation agreement regardless of the parties' intent to arbitrate, the First Circuit U.S. Court of Appeals held July 13, affirming the denial of a motion...

Mealey's Insurance - Insured's Negligent Work Constitutes An 'Occurrence' Under Policy, 1st Circuit Says

CHICAGO - A condominium association's claim that a painting subcontractor acted negligently is sufficient under Illinois law to constitute an "occurrence" under a commercial general liability policy, the Seventh Circuit U.S. Court of Appeals affirmed July 13 (Westfield Insurance Co. v....

Mealey's Insurance - Professional Services Exclusion Bars Coverage For Pipeline Explosion, Panel Says

SAN FRANCISCO - The First District California Court of Appeal on July 11 affirmed a trial court's judgment in favor of an excess insurer after finding that its policy's professional services exclusion bars coverage for underlying claims arising from a deadly pipeline explosion (Energy Insurance...

Mealey's Insurance - 10th Circuit: Insurers Not Required To Pay Judgments Against Contractors

DENVER - A federal judge in Utah did not err when awarding summary judgment to two insurance companies that were sued by a couple seeking to recover $2.2 million in judgments they are owed by two contractors over faulty framing, a 10th Circuit U.S. Court of Appeals panel ruled July 13, holding that the...

Mealey's Insurance - Pollution Exclusion Bars Coverage For Contaminant Dispersed Within Swine Feed

MINNEAPOLIS - A Minnesota federal judge July 14 granted a motion for judgment on the pleadings filed by an insurer after determining that a policy's pollution exclusion bars coverage for contaminated fat products supplied to a pork producer because the pollution exclusion applies to the contaminant...

Mealey's Insurance - Panel: CIGA Has Duty To Reimburse For Workers' Comp Excess Coverage

SACRAMENTO, Calif. - The California Insurance Guarantee Association (CIGA) breached its statutory duty to reimburse a joint powers authority for excess workers' compensation coverage owed under an insolvent insurer's policy, a California appeals panel affirmed July 17 (CSAC Excess Insurance Authority...

Mealey's Insurance - New Jersey Federal Magistrate Consolidates 2 Environmental Contamination Lawsuits

NEWARK, N.J. - A New Jersey federal magistrate judge on July 14 granted an insured's motion to consolidate a subrogation lawsuit filed by a property owner against an insured and an insurance coverage lawsuit filed against the insured after determining that the suits involve common questions of law...

Mealey's Insurance - Full, Timely Payment Of Appraisal Award Leads To Dismissal Of Insurance Dispute

HOUSTON - Dismissal of an insured's insurance breach of contract claim against his insurer is proper because the insurer made a full and timely payment of benefits following the issuance of an appraisal award in a homeowners insurance dispute, a federal judge in Texas ruled July 14 in granting the...

Mealey's Insurance - Federal Bankruptcy Judge Strikes Foreign Specialty Reinsurer's $15M Bond

NEW YORK - A foreign specialty reinsurer must post a new $15 million bond as part of its attempt to arbitrate a coverage dispute in Bermuda, a New York federal bankruptcy judge ruled July 17, granting a defunct brokerage company's motion to strike the current bond as defective (In re: MF Global Holdings...