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Mealey's Insurance - Subrogation Waiver Does Not Bar Insurer's Gross Negligence Claim, Panel Says

DETROIT - While a subrogated insurer's gross negligence claim was not barred by a waiver-of-a subrogation clause, a Michigan appeals panel held Aug. 9 that the insurer failed to assert more than an ordinary negligence claim against a contractor and subcontractor for the faulty installation of a sprinkler...

Mealey's Insurance - Exclusion Does Not Bar Errors, Omissions Coverage, Louisiana Panel Says In Reversal

SHREVEPORT, La. - A Louisiana appeals panel on Aug. 10 reversed a lower court's ruling in favor of an errors and omissions insurer in a dispute arising from the sale of a property with mineral rights (Jim And Freida Heath v. Continental Casualty Co., et al., No. 50,860-CA, La. App., 2nd Cir.; 2016...

Mealey's Insurance - Federal Judge Finds Personal Jurisdiction Over Insurance Defects Coverage Dispute

MOBILE, Ala. - An insured failed to demonstrate that an Alabama federal court does not have personal jurisdiction to hear a dispute regarding insurance coverage between the insured and its two insurers over construction defect claims, an Alabama federal judge ruled Aug. 12 (Crum & Forster Specialty...

Mealey's Insurance - Reinsurer Tells Court It Will Appeal Order To Pay Reinsured Prejudgment Interest

ALBANY, N.Y. - A reinsurer told a federal court in New York on Aug. 12 that it intends to appeal to the Second Circuit U.S. Court of Appeals an order of the trial court that it pay $941,433 in prejudgment interest to its reinsured (Utica Mutual Insurance Co. v. Clearwater Insurance Co., No. 13-cv-1178...

Mealey's Insurance - Judge Dismisses Reinsurance Arbitration Dispute Pursuant To Parties' Agreement

PHILADELPHIA - A federal judge in Pennsylvania on Aug. 11 dismissed a reinsurance arbitration dispute pursuant to an agreement between the parties (In the Matter of Arbitration Between Excalibur Reinsurance Corporation and Odyssey America Reinsurance Corporation, No. 10-mc-00195, E.D. Pa.).

Mealey's Insurance - Judge: 'Sophisticated' Attorneys Failed To Provide Insurer Timely Notice Of Suit

CHICAGO - An Illinois federal judge on Aug. 15 held that the failure of insureds, "as sophisticated lawyers," to review the terms of their commercial general liability insurance policy against underlying claims against them for eight months is unreasonable as a matter of law, finding that their...

Mealey's Insurance - Maryland Federal Judge Orders Parties In Lead Paint Suit To Response To Motion

BALTIMORE - A Maryland federal judge on Aug. 15 ordered the parties in a lead paint coverage lawsuit to respond to the underlying plaintiffs' motion to intervene in the coverage suit before proceeding to mediation to ensure that the underlying plaintiffs' interests are represented prior to any...

Mealey's Insurance - Florida Panel Conditionally Grants Appellate Attorney Fees In Sinkhole Dispute

LAKELAND, Fla. - The Second District Florida Court of Appeal on Aug. 17 vacated a June 10 order that denied insureds' amended motion for appellate attorney fees in a sinkhole coverage dispute and entered an order that grants their motion for appellate attorney fees conditioned upon their prevailing...

Mealey's Insurance - 'Your Work' Exclusion Bars Water Damage Caused By Insured's Work, Judge Says

HAMMOND, Ind.- A "your work" exclusion in a commercial general liability insurance policy precludes coverage for claims for real property structural damage and diminished value arising out of an insured's alleged faulty work that led to water intrusion in homes, an Indiana federal judge...

Mealey's Insurance - Insured's Defective Work Is Not An 'Occurrence,' Ohio Federal Judge Finds

TOLEDO, Ohio - An insured's alleged faulty workmanship does not constitute an "occurrence," an Ohio federal judge ruled Aug. 16, also finding that a "total pollution" exclusion relieves a commercial general liability insurer of its duty to defend and indemnify allegations that...

Mealey's Insurance - Judge: No Coverage For Claims Arising From Purchase Of Fuel With Invalid ID Numbers

EAST ST. LOUIS, Ill. - An Illinois federal judge on Aug. 18 entered judgment in favor of an insurer after finding that it has no duty to defend or indemnify against claims arising from the insured's purchase of biodiesel fuel with invalidated renewable identification numbers (RINs) (Superior Fuels...

Mealey's Insurance - Assigned Claims Were` Released By Assignors, Judge Says In Fiduciary Liability Suit

JACKSON, Miss. - A Mississippi federal judge held Aug. 16 that assigned claims against a fiduciary liability insurer were released by the assignors in a confidential settlement agreement and release, granting the insurer's motion to dismiss a breach of contract and bad faith lawsuit (Vincent Sealey...

Mealey's Insurance - Federal Judge: Fact Issues Exist As To Breach Of Contract, Bad Faith Claims

OKLAHOMA CITY - An Oklahoma federal judge on Aug. 16 found that a genuine dispute of material fact precludes summary judgment in favor of a homeowners insurer on insureds' claims for breach of contract and bad faith in a dispute over coverage for tornado damage, denying the insurer's motion for...

Mealey's Insurance - Contamination Caused By Defective Plastic Bag Is An Occurrence, 8th Circuit Says

ST. LOUIS - The contamination of landscaping materials with plastic from defective storage bags is an occurrence under the terms of an insurance policy, the Eighth Circuit U.S. Court of Appeals said Aug. 19 in reversing a district court's judgment in favor of the insurer (Decker Plastics Inc. v....

Mealey's Insurance - Judge: Adjuster Properly Joined In Bad Faith Lawsuit

DALLAS - An insurance adjuster was properly joined in an insurance bad faith and breach of contract lawsuit because an insured has pleaded a claim against the adjuster for violation of the Texas Insurance Code, destroying diversity jurisdiction, a federal judge in Texas ruled Aug. 22 in remanding the...

Mealey's Insurance - Federal Judge Dismisses Claims Against Third-Party Defendant Insurers

FORT WAYNE, Ind. - An Indiana federal judge on Aug. 19 dismissed an insured's third-party complaint in an environmental contamination coverage dispute against a number of third-party defendant insurers after determining that the insured failed to identify any policies that were allegedly breached...

Mealey's Insurance - Appeals Court Grants Dismissal Of Asbestos-Related Reinsurer Arbitration Row

NEW YORK - The Second Circuit U.S. Court of Appeals on Aug. 19 granted the stipulation of dismissal of an appeal between parties to an asbestos personal injury related reinsurance arbitration dispute (Arrowood Indemnity Co. v. Equitas Insurance Limited, et al., No. 15-2756, 2nd Cir.).

Mealey's Insurance - Only 3 Documents Sought By Insured Must Be Produced, Illinois Federal Judge Says

CHICAGO - An Illinois federal judge on Aug. 18 determined that three of 21 documents sought by an insured in an environmental contamination and chemical exposure coverage lawsuit are not privileged materials and must be produced by the insurer (Velsicol Chemical LLC v. Westchester Fire Insurance Co....

Mealey's Insurance - Denial Of Claim Was Proper; Lawsuit Was Untimely Filed, 8th Circuit Panel Determines

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Aug. 22 affirmed a disability insurer's denial of a long-term disability (LTD) claim on the basis that the claimant's lawsuit was not filed within the plan's contractual limitations period (Jeff Schmitz v. Sun Life Assurance Company...

Mealey's Insurance - 6th Circuit Majority Says Remand To Plan Administrator Was Not Violation Of Mandate

CINCINNATI - The majority of a Sixth Circuit U.S. Court of Appeals panel on Aug. 19 determined that remanding a disability retirement claim to the plan administrator was not an abuse of discretion because the remand remained within the purview of an earlier mandate issued by the Sixth Circuit (Kyle D...