LexisNexis® Legal Newsroom
Mealey's Insurance - Failed ACA Insurer Claims HHS Improperly Withholds Reinsurance Funds

COLUMBIA, S.C. - The government is improperly withholding payments from, and setting off debts owed by, a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer, illegally placing its own interests before those of policyholders and others entitled to priority, the...

Mealey's Insurance - Judge Rules On Insurers' Late Notice, Suits Limitations Defense In Coverage Dispute

TACOMA, Wash. - In a coverage dispute between a condominium association and several "all-risk" insurers, a Washington federal judge on April 12 granted in part and denied in part summary judgment on two insurers' late notice defense but granted summary judgment entirely on their suit limitations...

Mealey's Insurance - Federal Judge Allows Disability Claimant To Amend Complaint Against Insurer

SEATTLE - A Washington federal judge on April 13 granted a disability claimant's motion to amend a complaint to add a claim against a disability insurer after determining that the insurer will not be prejudiced by the amendment (Abraham Ghorbanian DDS v. Guardian Life Insurance Company of America...

Mealey's Insurance - Majority Affirms Idaho Law Applies, Bars Coverage For Claims Arising From Injury

SEATTLE - A majority of the Ninth Circuit U.S. Court of Appeals on April 14 affirmed a lower federal court's ruling that Idaho law applies to bar coverage for claims arising from an eye injury (Gary Butler v. North American Capacity Insurance Co., et al., No. 14-35131, 9th Cir., 2017 U.S. App. LEXIS...

Mealey's Insurance - Federal Magistrate Judge Says Some Emails Are Protected By Work Product Doctrine

FORT WAYNE, Ind. - None of the approximately 185 emails between an insured and two of its environmental contractors are protected by the attorney-client privilege; however, a portion of the emails on are protected by the work product doctrine, an Indiana federal magistrate judge determined April 14 after...

Mealey's Insurance - Liquidator Of Insolvent Insurer Says Government Is Going Against Executive Order

COLUMBIA, S.C. - The liquidator of an insolvent insurer sued the United States in a federal court in South Carolina on April 12, alleging that the government's actions to recover $37 million from the insolvent insurer are wrongful and contrary to one of the president's executive orders (Raymond...

Mealey's Insurance - In Remanded False Claims Act Suit, Discovery Limited To Identified Properties

GULFPORT, Miss. - In a case concerning an insurer's False Claims Act (FCA) violations on Hurricane Katrina claims, a Mississippi federal judge on April 12 granted the parties' motions to reopen the case, which was remanded after a U.S. Supreme Court ruling, limiting initial discovery on those...

Mealey's Insurance - Panel Affirms Dismissal Of Disability Claimant's Claim For Deprivation Of Rights

CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 14 affirmed a district court's dismissal of a disability claimant's allegation of deprivation of rights after determining that the pension plan that administered the disability plan at issue did not act in the interests of the "state"...

Mealey's Insurance - Disability Claimant Failed To Request Copy Of Plan Description, Judge Says

MILWAUKEE - Because a disability claimant did not specifically request a copy of a disability plan's summary plan description (SPD) when inquiring about the availability of disability benefits, the plan administrator did not violate the requirements of Employee Retirement Income Security Act, a Wisconsin...

Mealey's Insurance - Professional Liability Insurer Fails To Show It Was Prejudiced By Delayed Notice

DENVER - A Colorado federal judge held April 13 that a professional liability insurer has failed to sufficiently demonstrate that it was prejudiced by a hospital insured's delayed notice of an underlying medical malpractice dispute (Children's Hospital Colorado v. Lexington Insurance Co., No...

Mealey's Insurance - Additional Insured's Coverage Limited To Vicarious Liability For Insured's Acts

CHARLESTON, S.C. - A South Carolina federal judge on April 14 denied an electric and gas company's motion for partial summary judgment in its lawsuit seeking defense as an additional insured under a commercial general liability insurance policy for two underlying personal injury lawsuits (South Carolina...

Mealey's Insurance - Federal Judge Rules In Insurer's Favor In Coverage Dispute With Zillow Inc.

SEATTLE - A Washington federal judge on April 17 entered judgment in favor of an insurer three days after granting its motion for judgment on the pleadings in its lawsuit disputing coverage for underlying direct infringement, contributory infringement and vicarious liability claims brought against its...

Mealey's Insurance - 8th Circuit Finds Settlement Agreement For Defect Claims Violated Cooperation Clause

ST. LOUIS - A settlement agreement between an association and an insured general contractor over allegations of defective construction violated an insurance policy's cooperation clause and, thus, is unenforceable, the Eighth Circuit U.S. Court of Appeals affirmed April 17 (James River Insurance Co...

Mealey's Insurance - Federal Judge Rules In Favor Of Insurer In Flood Coverage Dispute

TAMPA, Fla. - A Florida federal judge on April 18 entered judgment in favor of a federal flood insurer one day after finding that the insured's failure to file a timely sworn proof of loss bars any recovery for his alleged flood damage (Jorge Abreu Sosa v. Wright National Flood Insurance Co., No...

Mealey's Insurance - Jury Enters Almost $8M Verdict Against Supplier Of Contaminated Seeds

SANTA ANA, Calif. - A California federal jury on April 14 entered an almost $8 million verdict against a company that supplied pomegranate seeds contaminated with hepatitis A after determining that the plaintiffs proved that the company was the source of the contaminated seeds (Townsend Farms Inc. v...

Mealey's Insurance - Connecticut Federal Judge Says Disability Claimant Is Entitled To Attorney Fees

NEW HAVEN, Conn. - A disability claimant is entitled to more than $40,000 in attorney fees because the claimant achieved some success on the merits as her claim for benefits was remanded to the plan administrator, a Connecticut federal judge said April 14 (Jennifer Dwinnell v. Federal Express Long Term...

Mealey's Insurance - New York Justice Rules Against Insurers In Dispute Over Bear Stearns' Settlement

NEW YORK - A New York justice on April 17 ruled against insurers in a lawsuit seeking indemnification from them for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Storm Damage Dispute, 10th Circuit Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on April 19 rejected insureds' argument that an insurer acted in bad faith by unreasonably delaying an appraisal and by failing to conduct an adequate claim investigation, affirming a lower federal court's ruling in favor of the insurer (Hayes Family...

Mealey's Insurance - Insured's Bad Faith Suit Barred By Statute Of Limitations, Judge Rules

TAMPA, Fla - An insured's bad faith claim is based on his insurer's alleged breach of its fiduciary duty to him and is, thus, subject to a four-year statute of limitations, a federal judge in Florida ruled April 18 in granting the insurer' motion to dismiss (Waldermar Baranowski v. GEICO...

Mealey's Insurance - 11th Circuit: Insurer Owes No Defense, Indemnity For Negligent Home Inspection

ATLANTA - A commercial general liability insurer had no duty to defend or indemnify a home inspector against allegations that an insufficient inspection failed to discover defective conditions prior to a home sale, the 11th Circuit U.S. Court of Appeals affirmed April 17, finding that the inspector's...

Mealey's Insurance - Insurer Says It Is Challenging Decision That Favors Its Reinsurer

NEW YORK - An insurer told a federal court in New York on April 19 that it is appealing the court's decision that vacated a reinsurance arbitration award because of the actions of an arbitrator (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323...

Mealey's Insurance - Disability Claimant Failed To Exhaust Administrative Remedies, Judge Says

COVINGTON, Ky. - A Kentucky federal judge on April 17 granted a disability insurer's motion to dismiss the claims alleged against it by a disability claimant after determining that the claimant did not exhaust her administrative remedies because she did not file an administrative appeal within the...

Mealey's Insurance - New York Federal Judge Grants Insurers' Motion To Withdraw Bankruptcy Reference

NEW YORK - A New York federal judge on April 17 granted a motion filed by two insurers to withdraw an insured's adversary proceeding from bankruptcy court because the bankruptcy court does not have the authority to decide the breach of contract and bad faith claims alleged against the insurers in...

Mealey's Insurance - New York Federal Judge Says Dismissal Of Insured's Suit Is Not Appropriate

UTICA, N.Y. - Dismissal of an insured's pro se lawsuit seeking coverage for water and mold damages is not appropriate because the insured attempted to timely file the suit within the policy's two-year limitations period, a New York federal judge said April 19 (Edmund Sanderson v. First Liberty...

Mealey's Insurance - Reinsured Says Court Correctly Confirmed Reinsurance Arbitration Award

NEW HAVEN, Conn. - An insurer told a federal court in Connecticut on April 18 that a motion for reconsideration of the confirmation of an arbitration award should not be granted because there was no manifest injustice in the confirmation decision (General Re Life Corporation v. The Lincoln National Life...