LexisNexis® Legal Newsroom
Mealey's Insurance - Amount In Controversy In Bad Faith Suit Doesn't Exceed $75,000, Judge Rules

LOS ANGELES - On his own motion, a federal judge in California on Nov. 17 remanded an insurance breach of contract and bad faith lawsuit to state court, ruling that an insurer failed to show that the amount in controversy exceeded the statutory requirement (Maria L. Monroy, et al. v. Infinity Insurance...

Mealey's Insurance - Judge: Fraud Claim Against Insured Is Not An 'Occurrence' Due To Intentional Conduct

LITTLE ROCK, Ark. - Property owners' fraud claim is not a covered "occurrence" under a commercial general liability insurance policy because they allege intentional intent by an insured contractor, an Arkansas federal judge ruled Nov. 18, also upholding a previous decision that the insurer...

Mealey's Insurance - Former Pharmacy Owner Convicted For Role In $700,000 Medicare Fraud Scheme

MIAMI - A former pharmacy owner was convicted by a federal jury in Florida on Nov. 16 of three counts of health care fraud for his role in a scheme in which he fraudulently billed Medicare $700,000 for prescription drugs that were never dispensed (United States of America v. Andres Alfonso, No. 16-cr...

Mealey's Insurance - Liquidator Asks Court To Approve Settlement Of Asbestos Claims

CONCORD, N.H. - The liquidator of an insolvent insurer asked a New Hampshire court on Nov. 21 to approve a $13.8 million settlement agreement with a bankrupt company's asbestos personal injury trust (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack...

Mealey's Insurance - Florida Federal Judge Says No Evidence That EIFS Was Defectively Installed

ORLANDO, Fla. - Because there is no evidence that an insured's exterior insulation finishing system (EIFS) was defectively installed, a Florida federal judge on Nov. 18 denied an insurer's motion for summary judgment in a suit filed by an insured seeking coverage for water and mold damages to...

Mealey's Insurance - New York Federal Judge Remands Disability Case To Aetna Life Insurance

ROCHESTER, N.Y. - A New York federal judge in an opinion filed Nov. 18 granted partial summary judgment to a man whose long-term disability claims were denied, saying that the defendants failed to adequately explain all of the reasons for denying the claim in violation of the Employee Retirement Income...

Mealey's Insurance - Judge: State Law Bars Insurers From Indemnifying For Punitive Damages Awards

FRESNO, Calif. - An insurer is entitled to summary judgment in an insurance breach of contract and bad faith lawsuit, a federal judge in California ruled Nov. 18, because California law bars insurers from indemnifying their insureds for punitive damages awards (Paul Evert's RV Country Inc., et al...

Mealey's Insurance - Judge: Insurer Breached Insurance Policy, But Reading Of Policy Was Reasonable

SEATTLE - A federal judge in Washington on Nov. 18 granted in part and denied in part competing motions for summary judgment in an insurance breach of contract and bad faith lawsuit, ruling that although an insurer breached its contract with its insureds under a homeowners insurance policy, its reading...

Mealey's Insurance - Judge Allows Insured To Add Wife As Indispensable Party In Bad Faith Suit

PHILADELPHIA - A federal judge in Pennsylvania on Nov. 21 rejected an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit for failure to join an indispensable party, allowing an insured to amend his complaint to add his wife as a plaintiff (William Koepke v. Allstate...

Mealey's Insurance - Insured Timely Notified Insurer Of Only 1 Pending Suit, Federal Judge Says

NEW YORK - A New York federal judge on Nov. 21 amended a prior ruling entered in favor of an insured to clarify that the insured timely notified the insurer of only one underlying suit pending against it and not two suits pending against it (Olin Corp. v. Insurance Company of North America, et al., No...

Mealey's Insurance - Insureds' Liability Must Be Resolved Before Coverage Issues, New Jersey Panel Says

TRENTON, N.J. - Insurers' coverage obligations in a mold damages suit can be adjudicated only after the insureds' liability for the damages caused by the mold contamination is resolved, the Appellate Division of the New Jersey Superior Court determined Nov. 21 (Larry Chenault v. Victory Highlands...

Mealey's Insurance - 4th Circuit Affirms Ruling In Insurer's Favor In Breach Of Contract Suit

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Nov. 22 affirmed a lower federal court's ruling in favor of an insurer in a lawyer and his consulting firm's lawsuit alleging breach of contract, unjust enrichment, conversion, unauthorized use of name and trademark and copyright infringement...

Mealey's Insurance - Insurer Loses Bid For Judgment On Liquidating Trust's Payment Claims

OAKLAND, Calif. - An asbestos personal injury liquidating trust properly submitted proposals to an insurer regarding the payment of allowed claims that triggered the insurer's policies and did not violate two debtors' plan of reorganization by allocating to the insurer 100 percent of the liquidated...

Mealey's Insurance - Panel Reverses Ruling In Insurer's Favor In Errors, Omissions Liability Dispute

HARTFORD, Conn. - A Connecticut appeals court found that an insurer's duty to defend was not barred by a public entity errors and omission liability insurance policy's contract exclusion because an underlying complaint left open the possibility that a negligent misrepresentation claim against...

Mealey's Insurance - Louisiana Federal Judge Says Exclusions For Pollution, Silica Do Not Bar Coverage

NEW ORLEANS - A Louisiana federal judge on Nov. 23 denied an insurer's motions for summary judgment on the duty to defend and indemnify an insured and an additional insured against two underlying suits filed by neighboring residents of an insured shipyard after determining that the insurer failed...

Mealey's Insurance - Illinois Federal Judge Says Discovery Needed Before Duty To Defend Can Be Decided

CHICAGO - An Illinois federal judge on Nov. 23 granted an insurer's motion seeking discovery in an asbestos coverage dispute after finding that the effect of an underlying settlement agreement on the insurer's duty to defend must first be determined before a decision can be made on the insurer's...

Mealey's Insurance - Policyholder Is Entitled To Documents Sought In Contamination Dispute

BROOKLYN, N.Y. - A New York federal magistrate judge on Nov. 23 granted an insured's motion to compel the production of documents in an environmental contamination coverage dispute after determining that the insured has shown a need for the requested documents and that the request was not overly...

Mealey's Insurance - Reinsurer Says It May Need To Depose 20 Current And Former Insurance Employees

SYRACUSE, N.Y. - A reinsurer asked a federal court in New York on Nov. 28 to intervene in a number of discovery disputes with an insurer, notably asking that the court allow it to depose up to 20 current and former employees and agents of the insurer (Utica Mutual Insurance Company v. R&Q Reinsurance...

Mealey's Insurance - Panel Denies Rehearing, Says Refinery Owner Not Covered Under Policy

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Nov. 29 denied a petition for rehearing after determining that a refinery owner seeking help with environmental cleanup costs under its parent company's insurance policy should have and could have discovered that it was not named as an insured...

Mealey's Insurance - Property Owner Unable To Show Insurer's Suit Is Untimely, Judge Rules

BALTIMORE - A federal judge in Maryland on Nov. 23 overruled a property owner's argument that an insurance company's lawsuit seeking rescission of a general liability policy due to alleged misrepresentations about lead paint violations on the policy application is untimely, ruling that the owner...

Mealey's Insurance - Court Erred In Rejecting Concurring Cause Doctrine, Majority Says, Quashes Order

TALLAHASSEE, Fla. - A majority of the Florida Supreme Court on Dec. 1 held that an appeals court erred in reversing an $8 million judgment against a homeowners insurer in a coverage dispute over alleged property damage caused by construction defects, rain and wind, quashing the lower court's opinion...

Mealey's Insurance - Judge: Missouri Does Not Recognize Bad Faith Refusal To Pay Claim

ST. LOUIS - Dismissal of a bad faith claim in an insurance dispute is proper because the state does not recognize a claim for bad faith refusal to pay benefits, but an insured has properly stated his claim for breach of contract against the insurer, a federal judge in Missouri ruled Nov. 29 in granting...

Mealey's Insurance - Evidence Shows Claimant Is Not Disabled From Any Occupation, Panel Affirms

CINCINNATI - Because six medical experts unanimously agreed that a disability claimant was not disabled from performing any occupation, the disability insurer did not act arbitrarily and capriciously in terminating the claimant's long-term disability (LTD) benefits, the Sixth Circuit U.S. Court of...

Mealey's Insurance - Policyholder Is Entitled To Limited Number Of Underwriting Files

BROOKLYN, N.Y. - A New York federal magistrate judge on Nov. 30 ruled that an insured is entitled to underwriting and claims files for a limited number of its London Market Insurers to determine if nonduplicative documents exists among the policies issued by the London Market Insurers to the insured...

Mealey's Insurance - Judge: Cardiologist's Lack Of Holistic Training Does Not Bar Testimony

ALBUQUERQUE, N.M. - A cardiologist's proposed testimony about the appropriateness of diagnoses and treatment by a doctor accused of health care fraud is reliable and relevant under Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579, 597 [1993]), a federal judge in New Mexico ruled Dec. 1...