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Mealey's Insurance - Insureds Failed To File Suit Within 1-Year Limitation Period, Federal Judge Says

LOS ANGELES - Because insureds seeking coverage for damages to their home caused by a sewage backup did not file their lawsuit against their insurers until well after the policy's one-year limitation period expired, a California federal judge on Feb. 13 granted the insurers' motion for summary...

Mealey's Insurance - Magistrate Judge Recommends Entering Default Against Doctor, Clinics For Fraud

NEW YORK - A federal magistrate judge in New York on Feb. 13 recommended that a federal judge enter default judgment against a doctor and the clinics he owned for common-law fraud and violation of the Racketeer Influenced and Corrupt Organizations Act for his role involving the submission of fraudulent...

Mealey's Insurance - Claimant's Suit Was Timely Filed, California Federal Judge Says

SAN FRANCISCO - A disability claimant's suit alleging wrongful termination of benefits was timely filed, a California federal judge said Feb. 13 after determining that the plan's three-year limitations period did not begin to run until after the 180-day deadline to appeal the termination of benefits...

Mealey's Insurance - Joinder Of Adjuster Was Improper, Federal Judge Rules In Denying Motion To Remand

DALLAS - Finding that an insured improperly joined an insurance adjuster in a dispute over coverage for storm damage, a Texas federal judge on Feb. 14 denied the insured's motion to remand and dismissed the claims against the adjuster without prejudice (Hutchins Warehouse Limited Partners v. American...

Mealey's Insurance - Washington Federal Judge Denies Motion For Summary Judgment On Bad Faith Claims

SEATTLE - A Washington federal judge on Feb. 13 denied an insurer's motion for summary judgment on an insured's claims for bad faith in an environmental coverage dispute because the judge previously found that the insurer breached it duty to defend and any estoppel argument is now irrelevant...

Mealey's Insurance - Texas High Court Refuses To Rehear Ruling On Discovery Order In Hailstorm Dispute

AUSTIN, Texas - The Texas Supreme Court refused to revisit its ruling in a hailstorm coverage dispute that directed a lower court to vacate the part of its discovery order compelling production of management reports and emails and to re-evaluate the issue of sanctions against the insurer, according to...

Mealey's Insurance - 10th Circuit Panel Says No Breach Of Contract For Denying Claim For Damages

DENVER - Because an insured failed to establish that it suffered water damage to "covered property" at a renovation project under a builders risk policy, the 10th Circuit U.S. Court of Appeals on Feb. 16 affirmed a Colorado federal judge's finding that the insurer properly denied coverage...

Mealey's Insurance - Federal Judge Says Claimant Is Residually Disabled, Not Totally Disabled As Required

ATLANTA - A disability claimant is not entitled to benefits under a policy's lifetime sickness rider because the claimant is residually disabled and not totally disabled as required for benefits under the rider, a Georgia federal judge said Feb. 15 (William F. Nefsky v. Unum Life Insurance Company...

Mealey's Insurance - Judge Converts Motion To Dismiss, Orders Further Briefing In Bad Faith Suit

ALBUQUERQUE, N.M. - Unable to determine from the evidence provided whether an insured's disability benefits plan is governed by the Employee Retirement Income Security Act of 1974 (ERISA), a federal judge in New Mexico on Feb. 14 converted the insurer's motion to dismiss to a motion for summary...

Mealey's Insurance - 9th Circuit: Insurance Policy Bars Damage Caused By 'Subsidence'

SAN FRANCISCO - Claims against a mutually insured subcontractor for damage caused by "subsidence" are excluded under an insurance policy, the Ninth Circuit U.S. Court of Appeals ruled Feb. 14, finding that an insurer had no duty to defend and thus was not responsible to share in costs incurred...

Mealey's Insurance - Substantial Evidence Supports Plan Denial Of LTD Benefits, Ohio Federal Judge Says

COLUMBUS, Ohio - The denial of a claim for long-term disability (LTD) benefits was not arbitrary and capricious because the claimant was provided with a fair review procedure and substantial evidence supports the denial of benefits, an Ohio federal judge said Feb. 14 in granting the plan's motion...

Mealey's Insurance - 7th Circuit Reverses Ruling In Part In Airport Collapse Coverage Suit

CHICAGO - The Seventh Circuit U.S. Court of Appeals on Feb. 17 partly reversed a lower federal court's ruling in favor of an insurer in a coverage dispute arising from the collapse of an airport terminal during construction (Indianapolis Airport Authority v. Travelers Property Casualty Co. of America...

Mealey's Insurance - Judge Approves Reinsurance Commutation Agreement For Insolvent Insurer

CHICAGO - An Illinois judge on Feb. 16 approved the commutation of certain reinsurance contracts covering third-party construction defect claims in an agreement between a reinsurer and an insolvent insurer (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co...

Mealey's Insurance - Claims In Bad Faith Suit Not Subject To ERISA Preemption, Magistrate Rules

NEWARK, N.J. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because a third-party's claims are not preempted by the Employee Retirement Income Security Act (ERISA), a federal magistrate judge in New Jersey ruled Feb. 17 (North Jersey Brain & Spine Center...

Mealey's Insurance - Conservator Asks Court To Convert Conservatorship To Liquidation

SAN FRANCISCO - California's insurance commissioner asked one of his state's courts on Feb. 17 to declare an insurer insolvent and order its liquidation (Dave Jones, Insurance Commissioner of the State of California v. CastlePoint National Insurance Company, and DOES 1-50, No. CPF-16-515183,...

Mealey's Insurance - Judge: Suit Arises Out Of Exclusion For 'Insufficiency In The Amount Of Proceeds'

BALTIMORE - A Maryland federal judge on Feb. 17 found that coverage for an underlying lawsuit alleging that an insured was negligent in the provision of settlement services for the sale of a home is barred by a professional liability insurance policy's exclusion for "insufficiency in the amount...

Mealey's Insurance - High Court Denies Cert In Case Over Termination Of Long-Term Benefits

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 21 denied a petition for a writ of certiorari in a case in which the 11th Circuit U.S. Court of Appeals said a district court did not err in determining that a disability plan did not wrongfully terminate a claimant's long-term disability benefits...

Mealey's Insurance - 9th Circuit Reverses, Remands Excess Coverage Suit Over Racial Discrimination Claim

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Feb. 21 reversed and remanded a lower federal court's ruling in a dispute over excess coverage for a settlement demand in an underlying racial discrimination lawsuit against the city of Montebello, Calif. (Security National Insurance Co...

Mealey's Insurance - New York Panel: Insurer's Expert Report Never Rose Above Level Of Speculation

NEW YORK - A New York appeals panel on Feb. 21 found that an insurer failed to demonstrate prima facie that all of its restaurant insured's claimed losses were caused by flood waters resulting from Superstorm Sandy (Pastabar Cafe Corporation v 343 East 8th Street Associates, LLC, et al. No. 2899...

Mealey's Insurance - 2nd Circuit Ends $7.8M Appeal Of Reinsurance Judgment Debtor

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 21 acknowledged a stipulation and ended the appeal of a judgment debtor that opposed a $7.8 million lower court ruling against it (AmTrust North America, Inc. and Technology Insurance Company, Inc., as judgment creditors of Pacific Re, Inc....

Mealey's Insurance - ACA Reinsurance Program Applies To State Employers, 6th Circuit Affirms

CINCINNATI - The Patient Protection and Affordable Care Act (ACA)'s reinsurance program applies to state employers, the Sixth Circuit U.S. Court of Appeals affirmed Feb. 17 (The State of Ohio, et al. v. United States of America, et al., No. 16-3093, 6th Cir., 2017 U.S. App. LEXIS 2844).

Mealey's Insurance - Judge: Most Of Amtrak's Claims Of Attorney-Client Privilege Should Be Sustained

BROOKLYN, N.Y. - A New York federal judge on Feb. 17 found that most of Amtrak's claims of attorney-client privilege should be sustained with some exceptions, adopting the majority of a special master's report and recommendation in a coverage dispute over environmental contamination (Certain...

Mealey's Insurance - London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

NEW YORK - A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd's, London v. Insurance...

Mealey's Insurance - Federal Judge Rejects Motorola's Request For Daubert Hearing

MARSHALL, Texas - A Texas federal judge on Feb. 21 partially granted a motion to exclude testimony on damages in a patent infringement case, but found that most of the expert's opinions did not justify exclusion under Daubert v. Merrell Dow Pharms. Inc. before trial (Saint Lawrence Communications...

Mealey's Insurance - Federal Judge Dismisses Insurer's Suit Alleging Trade Secret Misappropriation

ATLANTA - A federal judge in Georgia on Feb. 22 held that an insurer has failed to show that defendants misappropriated trade secrets to establish a competing business or that they violated the Computer Fraud and Abuse Act (CFAA), dismissing the insurer's lawsuit with prejudice (HCC Insurance Holdings...