LexisNexis® Legal Newsroom
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...

Mealey's Insurance - California Federal Judge Overturns Insurer's Denial Of LTD Benefits

SAN FRANCISCO - A disability claimant is entitled to long-term disability (LTD) benefits because the evidence from the claimant's treating physicians and evidence obtained from the disability insurer's medical reviewers support a finding that the claimant is disabled under the plan's any...

Mealey's Insurance - Judge: No Coverage For Insured's Costs From Nondefective Repairs

SALT LAKE CITY - Two insurers owe no coverage to an insured contractor for costs incurred from repairing nondefective parts of construction projects as a result of the process to remove and replace a subcontractor's nonconforming lumber, a Utah federal judge ruled June 18 (Big-D Construction Midwest...

Mealey's Insurance - Tax Judge: Company Did Not Issue Insurance, Reinsurance Contracts

WASHINGTON, D.C. - Because a company did not issue insurance or reinsurance contracts during the tax years at issue, a U.S. tax judge ruled June 18 that it did not receive more than 50 percent of its gross receipts from insurance premiums (Reserve Mechanical Corp. v. Commissioner of Internal Revenue...

Mealey's Insurance - Insurer's Lead Coverage Suit Permitted To Proceed; Motion To Stay Denied

SAN FRANCISCO - A stay of an insurer's suit seeking a declaration regarding its duty to defend an insured in an underlying lead exposure suit is not warranted because the insurer's coverage suit does not present the same issues as the underlying lead exposure suit and the insured will not be...

Mealey's Insurance - Maryland Casualty Says Latest Insurer Liability Action Should Get The Boot

WILMINGTON, Del. - A recent lawsuit in a string of actions seeking to hold insurers of former Chapter 11 debtor W.R. Grace & Co. liable for claimants' asbestos diseases should be dismissed because a Delaware federal bankruptcy judge has already found that the claims are barred by the protections...

Mealey's Insurance - 'Your Product' Exclusion Bars Coverage For Costs To Repair Insured's Units

MINNEAPOLIS - Costs to repair and replace an insured's insulating glass units (IGUs) are precluded by the "your product" exclusion, a Minnesota federal judge ruled June 18, granting and denying in part summary judgment to an insurer (National Union Fire Insurance Company of Pittsburgh,...

Mealey's Insurance - 11th Circuit Dismisses Appeal In Mold Damages Suit, Says Orders Are Not Appealable

ATLANTA - The 11th Circuit U.S. Court of Appeals on June 18 dismissed an appeal by insureds seeking coverage for mold damages after determining that jurisdiction does not exist because the district court did not issue a final and appealable judgment against the insureds (A. Denise Aldridge, et al. v...