LexisNexis® Legal Newsroom
Mealey's Insurance - Judge Refuses To Dismiss Counterclaim Against Insurer In Construction Defect Dispute

FLORENCE, S.C. - A South Carolina federal judge on May 4 declined to dismiss a counterclaim against a commercial general liability insurer seeking a declaration on coverage for an underlying construction defect lawsuit (American Southern Insurance Co. v. Affordable Home Improvements, et al., No. 17-02366...

Mealey's Insurance - Judge Says No Bad Faith By Insurer In Denial Of Entire Roof's Replacement

CINCINNATI - A homeowners insurer did not breach its contract or act in bad faith in refusing to replace an entire roof of its insureds' home, which suffered damages during a storm, an Ohio federal judge ruled May 7, granting summary judgment to the insurer (Tracy Avery, et al. v. Erie Insurance...

Mealey's Insurance - Justice Denies Dismissal Of Reinsurance Participation Agreements Dispute

QUEENS, N.Y. - In a May 4 order, a New York justice refused to dismiss a dispute under reinsurance participation agreements (RPAs) based upon a forum-selection clause because the case has been in litigation for several years now (The Energy Conservation Group LLC, et al. v. Applied Underwriters Inc....

Mealey's Insurance - Delaware Judge Enters Judgment For Verizon In Securities Coverage Suit

WILMINGTON, Del. - A Delaware Superior Court judge on May 7 found that Verizon Communications Inc. is entitled to more than $40 million plus prejudgment interest from its primary and excess executive and organization liability insurers for its underlying defense costs arising from securities claims ...

Mealey's Insurance - Disability Claimant Does Not Have Standing To File Suit Against Insurer

OAKLAND, Calif. - A California federal judge on May 7 granted a disability insurer's motion for summary judgment after determining that the claimant does not have standing to bring suit against the insurer because she was actually not a participant in the long-term disability plan (Brenda Spies v...

Mealey's Insurance - Judge Denies Insurer's, Insured's Summary Judgment Motions On Bad Faith Claim

PITTSBURGH - A federal judge in Pennsylvania on May 7 ruled that neither an insurer nor an insured was entitled to summary judgment on an insurance bad faith claim because a reasonable jury could rule in either party's favor on the claim in an automobile insurance dispute (Melissa C. Parisi, et al...

Mealey's Insurance - California Panel Vacates Ruling Finding Officer's Wife Guilty Of Insurance Fraud

SAN DIEGO - A California appeals panel on May 8 vacated a woman's conviction for her alleged role in her husband's filing of a fraudulent insurance claim for the theft of his car, finding that the evidence did not sufficiently establish that she aided or abetted the scheme (California v. Robert...

Mealey's Insurance - 2nd Circuit Vacates Reinsurer's Judgment On Liability Cap For Asbestos Litigation Costs

NEW YORK - In a coverage dispute over asbestos litigation costs, the Second Circuit U.S. Court of Appeals on May 9 vacated a lower court's entry of summary judgment for a reinsurer and remanded for reconsideration of the reinsurance contracts applying a New York high court ruling on the per-occurrence...

Mealey's Insurance - No Coverage Owed Under Collapse Provisions, 9th Circuit Panel Affirms

SEATTLE - A district court did not err in finding that an insurer owes no coverage for damage to apartments from hidden decay under its policies' "collapse" provisions because the damage has not rendered the apartment building unfit or unsafe for occupancy, the Ninth Circuit U.S. Court...

Mealey's Insurance - Federal Magistrate Judge: Insurance Policy Covers Church's Ceiling Collapse

BOSTON - A church's loss when its ceiling fell is covered by the collapse coverage part of an insurance policy, a Massachusetts federal magistrate judge ruled May 10, finding that "faulty construction" and "wear and tear" exclusions do not apply (Easthampton Congregational Church...

Mealey's Insurance - Insurer Opposes Reinsurer's Request To Bar Evidence In $3.2M Asbestos Settlement Case

SYRACUSE, N.Y. - Instead of addressing the admissibility of evidence in a dispute over the application of follow-the-fortunes clauses in reinsurance certificates for a $3.2 million asbestos settlement, an insurer argues in a May 8 opposition that a reinsurer's "so-called 'motion in limine'...

Mealey's Insurance - California Panel Affirms No Coverage For Suit Over Alleged Tax Avoidance Scheme

RIVERSIDE, Calif. - A California appeals panel on May 8 found that an underlying complaint failed to allege a claim against an insured arising from a wrongful act in its rendering of professional services that are "solely related" to a covered product, affirming a lower court's ruling that...

Mealey's Insurance - Panel: Ambiguous Policy Language Requires Reversal Of Professional Liability Suit

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on May 10 reversed a lower federal court's ruling that coverage for an underlying qui tam action is limited to a professional liability insurance policy's $25,000 billing errors endorsement sublimit, finding that the ambiguous policy language...

Mealey's Insurance - Disability Claimant Capable Of Performing Sedentary Work, Judge Determines

OAKLAND, Calif. - A California federal judge on May 11 determined that a disability insurer properly denied a claimant long-term disability benefits under a plan's any-occupation standard because the evidence supports the insurer's finding that the claimant was capable of performing sedentary...

Mealey's Insurance - Insureds Were Prejudiced By Insurer's Refusal To Provide Independent Counsel, Panel Says

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on May 14 reversed a district court's ruling that an insurer owes no coverage to its insureds for a gasoline leak that contaminated a nearby pond because the insurer is estopped from denying coverage as the insureds were clearly prejudiced by...

Mealey's Insurance - Third-Party Bad Faith Claims Barred By Statute Of Limitations, Panel Says

SEATTLE - The Ninth Circuit U.S. Court of Appeals on May 11 affirmed a district court's ruling that statutory and common-law third-party bad faith claims alleged against an auto insurer are barred by the statute of limitations because the claimant did not file suit against the insurer until more...

Mealey's Insurance - State Farm's Fraud Suit Not Subject To Abstention, Preemption, Judge Rules

FLINT, Mich. - State Farm Mutual Automobile Insurance Co.'s lawsuit accusing defendants of engaging in a scheme to submit fraudulent bills under its insureds' no-fault insurance benefits coverage is not subject to abstention or preemption, a federal judge in Michigan ruled May 14 in denying the...

Mealey's Insurance - Auto Insurer Did Not Act In Bad Faith In Handling Underinsured Motorist Claim

SCRANTON, Pa. - A Pennsylvania federal judge on May 11 granted an insurer's motion for summary judgment on a bad faith claim after determining that the insured failed to provide clear and convincing evidence that the insurer acted in bad faith in its handling of the insured's claim for underinsured...

Mealey's Insurance - Criminal Acts Exclusion Bars Coverage For College Student's Death, Panel Affirms

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 affirmed a lower federal court's finding that the insurer of homeowners and excess coverage policies issued to the parents of a college student convicted of killing another student has no duty to defend or indemnify against a wrongful...

Mealey's Insurance - U.S. Government Says Challenge To Church Plan Exemption Must Be Rejected

ORLANDO, Fla. - A district court should reject a plaintiff's challenge to the constitutionality of the Employee Retirement Income Security Act's church plan exemption because the exemption meets the requirements of the establishment clause of the First Amendment to the U.S. Constitution, the...

Mealey's Insurance - Florida Panel Again Reverses Ruling In Hurricane Wilma Coverage Dispute

MIAMI - A Florida appeals panel on May 16 reversed a lower court's final judgment against an insurer in a dispute over coverage for insureds' $59,719.25 supplemental Hurricane Wilma claim, finding that the insured's failure to comply with their post-loss obligations under the policy relieved...

Mealey's Insurance - 4th Circuit Affirms Ruling In Life Insurer's Favor In Supplemental Coverage Suit

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 held that no reasonable jury could find that a life insurer had a fiduciary duty under the Employee Retirement Income Security Act to solicit supporting materials for coverage beyond the guaranteed issue amount or notify new employees...

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...