Property
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August 30, 2024
Condo Board Coverage Suit Over Maui Wildfire Gets Tossed
A Hawaii federal judge tossed an insurer's suit seeking to avoid representing a condo association and property manager after owners sent a letter blaming the association for illegally having insufficient insurance before the 2023 Maui wildfires decimated Lahaina, concluding matters were best left to Hawaii state court.
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August 30, 2024
Insurers Say Honda, Dealership Owe $1M For Auto Fire
Insurers for a homeowners association and two residents told a New York federal court that Honda and a local dealership must foot the bill for a 2021 vehicle fire that caused property damage and "additional expenses" totaling over $1 million.
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August 29, 2024
Insurer's $20M Tribal Loan Claim Goes To Fed. Claims Court
An Ohio federal judge has transferred a challenge to Interior Secretary Deb Haaland over the agency's cancellation of a $20 million tribal loan guarantee to Federal Claims Court, arguing this week that the sole alternative of an outright dismissal would be detrimental to the interests of justice and judicial economy.
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August 29, 2024
Panel Tosses Insurer Dispute Over Drowning Death Coverage
It's too early to determine whether Farmers Insurance Exchange and Cincinnati Insurance Co. must both provide excess coverage to a property manager facing potential liability for a drowning, a Texas state appeals court ruled Thursday, finding the court lacks subject matter jurisdiction.
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August 29, 2024
DOJ Whistleblower Program Could Prompt D&O Policy Review
The U.S. Department of Justice's rollout of its new corporate whistleblower program should spur policyholders to examine their directors and officers insurance policies for potential gaps and consider alternative options to supplement coverage for the company, experts said.
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August 29, 2024
Aon Unit Accuses Chinese Bank Of $2.8B Reinsurance Fraud
An Aon PLC subsidiary has accused one of China's largest banks in New York state court of helping a now-bankrupt insurtech company engage in a multibillion-dollar scheme to defraud the subsidiary and cedent insurers in reinsurance transactions, seeking to recover at least $140 million in lost premiums from the bank.
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August 29, 2024
Insurance Litigation Week In Review
AmWay kept a $37 million win despite a Sixth Circuit split, Georgia's appeals court opened ride-sharing service insurers up to claims, SXSW settled its COVID-19 cancellation dispute, and a store sought coverage for a civil conspiracy suit related to a death caused by the son and eventual murder victim of killer attorney Alex Murdaugh.
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August 29, 2024
Segal McCambridge Eyes Tampa Shop With Gordon Rees Hire
Segal McCambridge Singer & Mahoney Ltd. has brought on the former assistant managing partner for Gordon Rees Scully Mansukhani LLP's Tampa, Florida, office as an insurance and complex commercial litigator as the firm plans to open its own first office in Tampa in the coming months.
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August 29, 2024
Agency Says Homeowner's Appeal Question Is Too Late
An insurance agency pushed North Carolina's Supreme Court to toss a homeowner's appeal on whether the court erred by having heightened pleadings standards for punitive damages against corporations, arguing the deadline for debating the issue had passed.
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August 29, 2024
9th Circ. Case May Hinge On When Is Rain Not Rain
The Ninth Circuit’s coming review of whether a rain exclusion bars a contractor’s claim for more than $7.5 million in water damage to a Hilton hotel it was building in Washington state will potentially turn on the policies’ definition of flood. Here, Law360 breaks down the case in advance of oral arguments on Sept. 10.
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August 28, 2024
Suit Against BCBS Unit Over COVID-19 Test Claims Tossed
A Florida federal judge on Wednesday nixed a laboratory's lawsuit accusing a Blue Cross Blue Shield unit of violating state and federal laws by underpaying or refusing to pay COVID-19 testing claims during the pandemic.
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August 28, 2024
Insurer Blasts Ralph Lauren's Appeal For COVID-19 Coverage
Factory Mutual Insurance Co. urged the Third Circuit on Wednesday to reject Ralph Lauren Corp.'s bid to recoup up to $700 million in COVID-19 pandemic losses, blasting the fashion house's "conclusory allegations" that it was entitled to coverage.
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August 28, 2024
BofA Hit With Suit Alleging 'Exploitative' Trust Insurance Costs
A trust beneficiary accused Bank of America in Georgia federal court of charging a trust it manages "unnecessarily expensive" insurance coverage for a residential property, arguing the bank breached its duties both as a trustee and a fiduciary.
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August 27, 2024
6th Circ. Reverses Geico's Win In Agents' Benefits Suit
The Sixth Circuit upended Geico's win in a lawsuit from insurance agents accusing it of misclassifying them as independent contractors and forcing them to lose out on benefits, saying more evidence is needed to determine if the insurer relied on unauthentic documents to get the suit tossed.
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August 26, 2024
9th Circ. Won't Renew Seattle Homeowners' Insurance Row
A group of Seattle homeowners cannot force Security National Insurance Co. to help cover a nearly $617,000 default judgment in an underlying construction defect dispute against its insured, the Ninth Circuit ruled, finding exclusions barring coverage for new construction applicable.
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August 23, 2024
Insurer Must Cover Flooded Basements, Mich. Panel Says
An insurer must pay a property owner over $150,000 in damages stemming from drain backups and water damage, a Michigan state appeals court ruled, finding that the property owner inquired about increased coverage before the discovery of the loss.
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August 23, 2024
Insurance Software Co. Probe, Insider Sales Prompt Del. Suit
A MediaAlpha Inc. stockholder sued in Delaware's Court of Chancery on Thursday for access to the insurance marketing platform developer's books and records, pointing to stock sales by the company's two controlling investors that allegedly allowed them to avoid $66 million in stock drop losses.
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August 23, 2024
Insurer Scores Coverage Win Over Retaining Wall Failure
A contractor's insurer has no duty to help cover a $2.66 million settlement over the contractor's faulty construction of retaining walls, a Washington federal court ruled, finding an "impaired property" exclusion applicable.
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August 22, 2024
Multi-Deal Insurance On The Rise In Cooler M&A Market
As M&A activity continues to recover from its peak in 2021, insurers are now increasingly issuing representation and warranty policies covering not just one underlying deal, but a buyer's portfolio of prospective acquisitions, experts tell Law360.
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August 22, 2024
Midyear Check-In 2024: Rite Aid Bankruptcy
Pharmacy chain Rite Aid Inc. entered bankruptcy last year facing billions of dollars in bank debt and staggering liabilities in connection with the national opioid crisis, but its trip through Chapter 11 resulted in a confirmed plan that addresses these obligations.
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August 22, 2024
State Farm Can't Slash Fraud Suit, Even On The Merits
An Illinois federal judge has stuck to her decision not to let State Farm significantly cut down a proposed class action targeting an allegedly unlawful totaled-vehicle valuation formula, even while acknowledging she should have considered the merits of State Farm's arguments.
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August 22, 2024
Insurance Litigation Week In Review
CVS has no coverage for 200 opioid actions, State Farm auto policyholders have another shot at an underpayment class action, Travelers settled with a thieving law firm and Safeco says a man who allegedly gave his girlfriend herpes is on his own. Here, Law360 takes a look at the past week's top insurance news.
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August 22, 2024
Motor Home Policy Is Stackable, Widow Tells NC Court
The widow of a North Carolina man who was fatally struck by a car told a state appeals court that she's allowed to stack two underinsured motorist policies to recover a $625,000 wrongful death award in her favor because the second policy included a "private passenger motor vehicle."
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August 22, 2024
In 'Super Like' Coverage Bid, Tinder Seeks Match With NY Law
A New York federal court's contemplation of whether Tinder owner Match Group has coverage for a lawsuit alleging it stiffed a developer who invented the app's "Super Like" function could provide clarity on when and how a state law applies to extend reporting deadlines in insurance policies.
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August 22, 2024
NY AG Tells Appeals Court To Uphold $465M Trump Judgment
Donald Trump has barely challenged the extensive proof of financial statement lies undergirding a $465 million civil fraud judgment against him and his co-defendants, New York's attorney general said in an appeals brief looking to preserve the bench verdict.
![A number of groups are trying to help communities get funding for resilience projects as a way to address growing property risk for insurers and policyholders. (iStock.com/savoilic)](https://assets.law360news.com/1874000/1874693/8e522e3f359ca31d00af03c3148c763264493708-istock-535932471-construction.jpeg)
Building Codes Key Part Of Mitigating Insurance Risks
Property and casualty insurers have highlighted resilient building as a way to address burgeoning property risk, but experts told Law360 the government alone cannot be expected to improve insurance outcomes without engagement from state and local jurisdictions and private organizations on issues like building codes and federal grants.
![Live Nation corporate offices are viewed on May 23, 2024 in Hollywood, California. The Department of Justice has filed a federal lawsuit that accuses Ticketmaster and its parent company Live Nation of illegally monopolizing the live entertainment industry to the detriment of concertgoers and artists alike. The lawsuit seeks to structure how the company operates and includes breaking apart the two entities. (Photo by Mario Tama/Getty Images)](https://assets.law360news.com/1872000/1872399/26b5c39d31b3f76c9a542e1b71a98e098fe422ce-gettyimages-2154343789.jpg)
Cyber Incidents Accelerate Arms Race Over Broader Coverage
A series of high-profile cybersecurity attacks, data breaches and system disruptions in 2024 have highlighted the growing pressure on policyholders to search for more coverage options beyond cyberinsurance and on insurers to limit their exposures.
![An insurer attorney called a 10% rate hike by the Texas Windstorm Insurance Association modest, but added that she hopes the Texas Department of Insurance will work harder to keep insurance costs down overall in the state. (iStock.com/moxumbic)](https://assets.law360news.com/1870000/1870242/bb6e8a807cf582fa79e6e1165da9bb94e8487197-tree-in-wind.jpg)
Texas Windstorm Insurer Strikes Balance With Rate Hike
A recent rate hike approved by Texas' windstorm insurer of last resort underscores the urgency of balancing the financial needs of both insurers and policyholders following damaging storms like Hurricane Beryl in an already strained property insurance market, experts say.
Expert Analysis
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Notable Q2 Updates In Insurance Class Actions
Mark Johnson and Mathew Drocton at BakerHostetler discuss the muted nature of the property and casualty insurance class action space in the second quarter of the year, with no large waves made in labor depreciation and total-loss vehicle class actions, but a new offensive theory emerging for insurance companies.
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Ore. Insurance Litigation Is Testing The Bounds After Moody
Despite the Oregon Supreme Court’s attempt to limit application of its 2023 decision in Moody v. Oregon Community Credit Union, which for the first time awarded extracontractual damages stemming from alleged negligent claims handling, recent litigation shows Oregon insurance companies face greater exposure, says Sarah Pozzi at Cozen O’Connor.
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What's In NYDFS Guidance On Use Of AI In Insurance
Matthew Gaul and Shlomo Potesky at Willkie summarize the New York Department of Financial Services' recently adopted circular letter on the use of artificial intelligence in insurance underwriting and pricing, and highlight the material changes made to it in response to comments on the draft circular letter.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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7th Circ Joins Trend Of No CGL Coverage For Structural Flaws
The Seventh Circuit, which recently held potential structural instability did not count as property damage under a construction company's commercial general liability policy, joins a growing consensus that faulty work does not implicate coverage without tangible and present damage to the project, say Sarah Abrams at Baleen Specialty, and Elan Kandel and James Talbert at Bailey Cavalieri.
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New La. Managing Agent Law May Portend Growing Scrutiny
Recent amendments to Louisiana’s managing general agent regulations impose expansive new obligations on such agents and their insurer partners, which may be a sign of heightened regulatory, commercial and rating agency scrutiny, say attorneys at McDermott.
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What Fla. Ruling Means For Insurer Managed Repair Programs
A recent Florida state court ruling in Fraga v. Citizens Property Insurance, holding that the insurer could not seek to add additional terms in its managed repair program consent form, should promote clear written contract terms that clarify the relationship between insurers, policyholders and contractors, says Chip Merlin at Merlin Law Group.
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NY Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 saw less enforcement activity in the realm of New York financial services, but brought substantial regulatory and legislative developments, including state regulators' guidance on cybersecurity compliance and customer service processes for virtual currency entities, say James Vivenzio and Andrew Lucas at Perkins Coie.
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Takeaways From Justices' Redemption Insurance Decision
The U.S. Supreme Court’s recent decision in Connelly v. U.S. examines how to determine the fair market value of shares in a closely held company for estate tax purposes, and clarifies how life insurance held by the company to enable redemption of a decedent’s shares affects that calculation, says Evelyn Haralampu at Burns & Levinson.
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Managing Legal Risks After University Gaza Protests
Following the protests sparked by the war in Gaza, colleges and universities should expect a long investigative tail and take steps to mitigate risks associated with compliance issues under various legal frameworks and institutional policies, say Wiley's Diana Shaw and Colin Cloherty.
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An Insurance Coverage Checklist For PFAS Defendants
With PFAS liability exposures attracting increased media attention, now is a good time for companies that could be exposed to liability related to per- and polyfluoroalkyl substances to review existing and past insurance policies, and consider taking proactive steps to maximize their likelihood of coverage, say attorneys at Nossaman.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.