LexisNexis® Legal Newsroom
Mealey's Insurance - High Court Will Not Review Whether ERISA Preempts Slayer Statute

WASHINGTON, D.C. - The U.S. Supreme Court on June 11 denied a petition for writ of certiorari of a lower court decision that held that a woman who was found not guilty of killing her husband by reason of insanity could not collect her deceased husband's pension benefits (Laborers' Pension Fund...

Mealey's Insurance - Landscaper: Reinsurer's Service Of Suit Over Arbitration Award Was Defective

LOS ANGELES - A landscape company says in its June 10 reply brief to a California federal court that service of suit was defective regarding a reinsurer's petition seeking confirmation of a $82,130.44 arbitration award (Applied Underwriters Captive Risk Assurance Company Inc. v. O'Connell Landscape...

Mealey's Insurance - Panel Denies Appeal For Additional Business Interruption, Property Loss Coverage

SEATTLE - The Ninth Circuit U.S. Court of Appeals on June 11 affirmed a lower federal court's ruling in favor of an insurer on an insured's breach of contract lawsuit seeking additional coverage for business interruption losses and future property repairs arising from a fire that damage its apartment...

Mealey's Insurance - Diversity Of Citizenship Does Not Exist; Water, Mold Coverage Suit Dismissed

WHITE PLAINS, N.Y. - A New York federal judge on June 11 dismissed an insured's suit seeking coverage for water and mold damages following a sewage backup after determining that subject matter jurisdiction does not exist because both the insured and insurer are citizens of New York (Alexandra Tran...

Mealey's Insurance - Divided 6th Circuit Reverses Dismissal Of Suit Over Senior Center's Billing

CINCINNATI - A woman's False Claims Act (FCA) lawsuit accusing a senior living center of failing to submit to Medicare certifications supporting the need for medical services for patients was reinstated by a 2-1 Sixth Circuit U.S. Court of Appeals panel, after it found that the woman's allegations...

Mealey's Insurance - Magistrate Judge Finds Dismissal Of Reinsurers' RICO Lawsuit Appropriate

EL PASO, Texas - In a case alleging a scheme to take control over an auto dealership and to decline selling vehicle-protection products that are reinsured, a Texas federal magistrate judge on June 11 recommended that a federal civil Racketeer Influenced and Corrupt Organizations Act claim be dismissed...

Mealey's Insurance - Ruling In Favor Of Insured In Environmental Suit Is Not Appealable, Judge Says

NEW YORK - A New York federal judge on June 7 clarified that a prior ruling that an excess insurer owes its insured more than $55 million for environmental contamination costs incurred by the insured is not a final and appealable judgment (Olin Corp. v. Lamorak Insurance Co., et al., No. 84-1968, S.D...

Mealey's Insurance - Judge Stands By Denial Of Insured's Motion To Dismiss Employer Liability Dispute

ABERDEEN, Miss. - A Mississippi federal judge on June 11 denied an insured's employee's motion to reconsider a ruling refusing to dismiss an insurer's lawsuit seeking a declaration that an employers liability policy exclusion bars coverage for the employee's injuries (Wesco Insurance...

Mealey's Insurance - Parties Settle Dispute Over Insurer's Failure To Reimburse After Reinsurance Applied

MINNEAPOLIS - Parties have written a letter to a Minnesota federal magistrate judge on June 8 advising that they have settled a breach of contract lawsuit arising from an insurer's alleged failure to reimburse unpaid defense costs in a settlement of an underlying workers' compensation claim after...

Mealey's Insurance - Life Insurer, Investor Seek Pre-Motion Conference On Dismissal Of Class Action

NEW YORK - A life insurer and a private investment firm wrote a New York federal court on June 8 requesting a pre-motion conference on a motion to dismiss a class action alleging breach of policies by the unlawful increase of the premium costs to recoup costs associated with the acquisition (Derek Fan...

Mealey's Insurance - Appeals Court Says Insurers Can't Recover ACA Risk-Corridor Payments

WASHINGTON, D.C. - Health insurers may not collect billions in Patient Protection and Affordable Care Act (ACA) risk-corridor funds because Congress specifically blocked payments, a majority of the Federal Circuit U.S. Court of Appeals said June 14 (Land of Lincoln Mutual Health Insurance Co. v. United...

Mealey's Insurance - Insureds Validly Assigned Rights Under Policies To Water Restoration Company

PHOENIX - Insureds whose homes sustained water damages validly assigned their rights under their homeowners policies to a water restoration company to collect payment for the remediation work, an Arizona appellate court said June 12 in rejecting the insurer's argument that the assignments were not...

Mealey's Insurance - 9th Circuit Says Life Insurer Did Not Act In Bad Faith In Canceling Policy

ANCHORAGE, Alaska - The Ninth Circuit U.S. Court of Appeals on June 14 affirmed a district court's dismissal of a bad faith claim against a life insurer after determining that the insurer acted reasonably in canceling a life insurance policy following the insured's failure to pay the policy premium...

Mealey's Insurance - Panel: Court Must Decide Jurisdiction In Insolvent Insurer's Indemnity Suit

HOUSTON - A trial court must decide its subject matter jurisdiction before addressing whether indemnitees breached an indemnity agreement with an insolvent insurer, a Texas appeals panel ruled June 14, vacating the lower court's ruling (Ullico Casualty Co., et al. v. Pelco Construction Company Inc...

Mealey's Insurance - Disability Claimant Failed To File Suit Within Plan's Limitations Period, Judge Says

NEW ORLEANS - A Louisiana federal judge on June 12 granted a disability plan administrator's motion for summary judgment after determining that the disability claimant's suit must be dismissed because the claimant failed to file suit within the disability plan's limitations period (Michael...

Mealey's Insurance - Judgment Issued In Personal Injury Suit After Insolvent Insurer's $1M Settlement

NEW YORK - A New York justice on June 14 issued a judgment reflecting that two insureds are responsible for a $4 million judgment arising from a personal injury lawsuit after their insolvent insurer paid $1 million to the settlement of the case (Etta [Itty] Pruss v. Infiniti of Manhattan Inc., et al...

Mealey's Insurance - 11th Circuit: Evidence Supported Convictions For Arson Scheme

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on June 14 affirmed rulings by a federal judge in Georgia denying two defendants' motions for acquittal, holding that the evidence presented by the government sufficiently showed that they conspired and committed mail fraud as part of a scheme...

Mealey's Insurance - Judge Certifies Question On Collapse In Insureds' Breach Of Contract Suit

HARTFORD, Conn. - In a breach of contract dispute over coverage for cracking in a basement, a Connecticut federal judge certified on June 15 a question to the state's high court on what constitutes "substantial impairment of structural integrity" for purposes of applying a collapse provision...

Mealey's Insurance - Magistrate Judge Grants Reinsurer's Motion To Compel Production Of Documents

SACRAMENTO, Calif. - In two putative class actions over a reinsurance participation agreement (RPA), a California federal magistrate judge on June 14 ordered an insurance agency to produce nonprivileged, responsive information requested by a reinsurer and its affiliates (Shasta Linen Supply Inc. v. Applied...

Mealey's Insurance - Judge Enters Default Judgment Against Insured In Suit Over Minor's LSD Ingestion

PHOENIX - An Arizona federal judge on June 14 granted a homeowners insurer's motion to enter a default judgment against its insured in its declaratory judgment lawsuit disputing coverage for an underlying lawsuit alleging that the insured was negligent for providing a minor with an illicit drug ...

Mealey's Insurance - Alabama High Court Partly Reveres Ruling In Broker Liability Dispute

MONTGOMERY, Ala. - The Alabama Supreme Court on June 15 partly reversed a lower court's ruling in favor of a brokerage firm in a negligence and wantonness lawsuit brought by insureds (Jimmy Larry Beddingfield et al. v. Mullins Insurance Company, et al., No. 1170143, Ala. Sup., 2018 Ala. LEXIS 60...

Mealey's Insurance - Contractual Liability Exclusion Does Not Bar Coverage, Arizona High Court Affirms

PHOENIX - The Arizona Supreme Court on June 14 found that a homeowners insurance policy's "contractual liability" exclusion does relieve an insurer of its duty to defend its builder-vendor insured against an underlying negligent excavation claim arising from rockslide damage, finding that...

Mealey's Insurance - Disability Benefits Suit Remanded For Determination On Equitable Remedy

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 15 remanded a disability benefits dispute to the district court to determine whether the claimant is entitled to equitable relief based on the disability plan's failure to properly offset the claimant's disability benefits (Petar...

Mealey's Insurance - 9th Circuit Rejects Excess Insurer's Appeal Seeking $1M From Primary Insurer

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 18 affirmed a lower court's ruling that a primary insurer does not owe an additional $1 million under a Parking Operations Errors and Omissions Endorsement for injuries allegedly incurred at a parking garage (Scottsdale Insurance Company...

Mealey's Insurance - Objections Overruled, Insurance Bad Faith Suit Remanded To State Court

HOUSTON - A federal judge in Texas on June 18 overruled a series of objections filed by an insurer in an insurance breach of contract and bad faith lawsuit, ruling that a federal magistrate judge properly recommended that insureds' lawsuit against the insurer stemming from denial of their homeowners...