LexisNexis® Legal Newsroom
Mealey's Insurance - Trial Court Did Not Err In Awarding Damages To Insured, Panel Majority Says

LAKE CHARLES, La. - A Third Circuit Louisiana Court of Appeal majority on Dec. 28 affirmed an award entered against an insurer after determining that the trial court did not err in finding that the insured was entitled to repair costs and damages for a broken plumbing pipe under the slab of her home...

Mealey's Insurance - 9th Circuit Says It Lacks Jurisdiction To Review Remand Order In Class Action Suit

SEATTLE - Noting an issue of first impression, the Ninth Circuit U.S. Court of Appeals on Jan. 3 dismissed an insurer's petition for permission to appeal a lower court's remand order in a class action lawsuit founded on federal question jurisdiction but concluded that because the insurer's...

Mealey's Insurance - Insured's Claim Precluded By Flood Exclusion, Judge Rules In Bad Faith Suit

COLUMBIA, S.C. - An insurer did not act in bad faith in denying coverage under a homeowners insurance policy because an insured's claim for coverage was precluded by a flood damage exclusion in the policy, a federal judge in South Carolina ruled Dec. 29 in granting the insurer's motion for judgment...

Mealey's Insurance - Judge: Fees Awarded Under Texas Civil Practice, Remedies Section Are Not Covered

HOUSTON - Fees awarded under Section 82.002(g) of the Texas Civil Practice and Remedies Code are not "damages" covered by a commercial general liability insurance policy, a Texas federal judge ruled Dec. 30, finding that the ruling in Hollybrook Cottonseed Processing, L.L.C. v. Am. Guarantee...

Mealey's Insurance - Judge: OK To Register Arbitration Award Ruling In California Federal Court

NEW YORK - A federal judge in New York on Dec. 3 granted a pair of judgment creditors' motion to register a New York federal court's earlier order in a federal court in California where the party owing a $7.8 million arbitration award allegedly has substantial property (AmTrust North America...

Mealey's Insurance - Panel Affirms $714,450.24 Ruling In Favor Of Target In Dispute Over CGL Coverage

CHICAGO - The Seventh Circuit U.S. Court of Appeals on Dec. 29 affirmed a lower federal court's finding that a commercial general liability insurer has a duty to defend or indemnify Target Corp. as an additional insured against an underlying lawsuit brought by a customer who was injured when a fitting...

Mealey's Insurance - Judge: Unambiguous Policy Language Shows Insurer Did Not Act In Bad Faith

COLUMBIA, S.C. - The term "flood" in a homeowners insurance policy is not ambiguous under South Carolina law and, as a result, an insurer did not breach its contract or act in bad faith in denying coverage under the policy because it contained a water damage exclusion that precluded coverage...

Mealey's Insurance - Reinsurer Says It Does Not Have Some Of The Discovery Information Requested

SYRACUSE, N.Y. - A reinsurer told a federal court in New York on Dec. 30 that an insurer's request regarding testimony from its corporate designee is improper because among other reasons, the reinsurer says, it does not have the information the insurer seeks (Utica Mutual Insurance Company v. R&Q...

Mealey's Insurance - Maryland Federal Judge Stays Insurer's Suit Until Similar State Suit Is Resolved

BALTIMORE - A Maryland federal judge on Jan. 3 stayed an insurer's suit seeking a declaration that it is responsible for only a portion of a $4 million judgment entered against its insureds in an underlying suit alleging injuries as a result of exposure to lead paint in the insureds' rental property...

Mealey's Insurance - Nebraska High Court: Post-Loss Assignment Of Claim Is Valid Despite Clause

LINCOLN, Neb. - Finding that an insured's post-loss assignment of a property damage claim to a roofing company under a homeowners insurance policy is valid despite the policy's nonassignment clause, the Nebraska Supreme Court on Dec. 30 affirmed a lower court's $5,252.66 judgment against...

Mealey's Insurance - 10th Circuit: Court Properly Vacated Order Confirming Appraisal Award, Judgment

DENVER - A commercial property insurer's voluntary payment of an appraisal award and the insured's acceptance of the payment settled any dispute over the amount of storm loss to the insured's property, the 10th Circuit U.S. Court of Appeals ruled Jan. 4, affirming a lower court's decision...

Mealey's Insurance - Majority: No Coverage For Legal Expenses Incurred Without Insurer's Approval

ATLANTA - A majority of the 11th Circuit U.S. Court of Appeals ruled Jan. 9 that an insurer has no duty to pay an insured's $405,989 in pre-tender legal expenses incurred in defending a copyright infringement lawsuit, affirming a lower court's finding that Florida's claims administration...

Mealey's Insurance - Judge Orders Health Care Fraud Defendant To Turn Over Retirement Funds

CHICAGO - A cardiologist who pleaded guilty to one count of health care fraud for fraudulently billing Medicare and other insurance companies was ordered by a federal judge in Illinois to turn over three retirement funds valued at $300,738.60 after finding that forfeiture of the funds would not result...

Mealey's Insurance - 7th Circuit Panel Finds Benefits Termination Was Not Arbitrary And Capricious

CHICAGO - A disability insurer's termination of benefits was not arbitrary and capricious because the evidence supported the termination and the insurer minimized any conflict of interest by employing a number of safeguards, the Seventh Circuit U.S. Court of Appeals said Jan. 6 (Donna Geiger v. Aetna...

Mealey's Insurance - Insureds' Lack Of Breach Of Contract Claim Leads To Dismissal Of Bad Faith Claim

TAMPA, Fla. - Because insureds have failed to bring a claim for breach of contract, they have failed to state a claim for bad faith and have violated the particularity requirement pursuant to the Federal Rules of Civil Procedure, a federal judge in Florida ruled Jan. 9 (Fred Fox, et al. v. Starr Indemnity...

Mealey's Insurance - No Coverage Owed For Environmental Contamination, Federal Magistrate Judge Says

HAMMOND, Ind. - Insureds seeking coverage for environmental contamination discovered on a property they purchased are not entitled to coverage because the policy bars coverage for known or unknown property damage and for property damage that began before the policy's inception, an Indiana federal...

Mealey's Insurance - Judge: No Indemnification Owed For Water Damage Caused By Insured

CHICAGO - An insurer has no duty to indemnify an insured and no duty to reimburse an additional insured for alleged water damage to an apartment building because there was no covered "occurrence" for the insured's failure to properly cover the building's roof, an Illinois federal judge...

Mealey's Insurance - Panel: Insurer Entitled To Recoupment Of Costs Defending Trade Secret Dispute

SAN FRANCISCO - A California appeals panel on Jan. 10 affirmed a lower court's grant of summary judgment in favor of an insurer seeking recoupment of the costs it incurred in defending its agents against claims it brought against the agents involving trade secrets (State Farm Fire And Casualty Co...

Mealey's Insurance - New York High Court Certifies Reinsurance Liability Cap Question

ALBANY, N.Y. - The New York Court of Appeals on Jan. 10 certified a question from the Second Circuit U.S. Court of Appeals regarding reinsurance liability cap limits as they relate to per-occurrence loss and expense (Global Reinsurance of America v. Century Indemnity Company, No. 34, N.Y. App.).

Mealey's Insurance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two...

Mealey's Insurance - South Carolina High Court Affirms Time-On-The-Risk Allocation Of Insurer's Costs

COLUMBIA, S.C. - The majority of the South Carolina Supreme Court on Jan. 11 affirmed a special referee's finding that coverage under commercial general liability insurance policies was triggered and calculation of an insurer's pro rata portion of the progressive damages based on its time on...

Mealey's Insurance - Directors, Officers Policy Does Not Cover FDIC's Claims, Majority Says, Reverses

PASADENA, Calif. - A majority of the Ninth Circuit U.S. Court of Appeals on Jan. 10 found that a directors and officers liability insurance policy unambiguously excludes from coverage the Federal Deposit Insurance Corp.'s negligence, gross negligence and breach of fiduciary duty claims against a...

Mealey's Insurance - Insured's Insurance Bad Faith Claim Survives Motion To Dismiss

SCRANTON, Pa. - A federal judge in Pennsylvania on Jan. 12 denied an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that insured has pleaded sufficient evidence to support the claim (Robert Hughes v. State Farm Mutual Automobile Insurance Co., No. 16...

Mealey's Insurance - Rescission Of Product Contamination Policy Was Proper, 3rd Circuit Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 11 affirmed that an insurer was entitled to rescind a product contamination insurance policy because it is clear that the insured made an intentional misrepresentation on the policy application upon which the insurer relied before issuing...

Mealey's Insurance - Pollution Exclusions Clearly Bar Coverage For Underlying Water Contamination Judgment

ST. LOUIS - A Missouri federal judge did not err in granting three insurers' motions for judgment on the pleadings in a suit filed by a class representative seeking to satisfy an $82 million judgment entered against the insured for damages arising out of water contamination, the Eighth Circuit U...