Mealey's Catastrophic Loss : Mealey's : Legal News & Analysis

Mealey's Catastrophic Loss

April 07, 2023
Federal Judge Dismisses Hurricane Harvey Coverage Dispute After Parties Settle

HOUSTON — A federal judge in Texas dismissed without prejudice a Hurricane Harvey coverage dispute after the insureds and their insurance broker and agent reached a settlement.
April 06, 2023
6th Circuit Dismisses Church’s Appeal Over Water Damage No-Coverage Ruling

CINCINNATI — The Sixth Circuit U.S. Court of Appeals granted a stipulated motion to dismiss with prejudice filed by parties in an appeal of a federal district court’s finding that an insurer did not breach its contract with a church by failing to provide coverage for water damage stemming from a leaky roof based on the policy’s negligent work exclusion, which bars coverage for the claim.
April 06, 2023
Hurricane Damage Suit Against Insolvent Insurer Remanded For Lack Of Diversity

NEW ORLEANS — A Louisiana federal judge granted insureds’ motion for leave to file an amended complaint and ordered the case to be remanded to state court in their breach of contract suit alleging that a now-insolvent insurer failed to provide adequate payment for alleged property damage related to Hurricane Ida, finding that adding the Louisiana Insurance Guaranty Association (LIGA) as the successor-in-interest to the insurer defeats “diversity of citizenship between the parties.”
April 05, 2023
California High Court Accepts Certified Question In Coronavirus Coverage Suit

SAN FRANCISCO — The California Supreme Court accepted a certified question from the Ninth Circuit U.S. Court of Appeals asking whether an insurance policy’s virus exclusion is unenforceable in a coverage lawsuit brought by owners, operators and managers of two Napa Valley, Calif., restaurants in the wake of the coronavirus pandemic.
April 04, 2023
5th Circuit Affirms Dismissal Of Orthopedic Firm’s Coronavirus Coverage Dispute

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on April 3 affirmed lower federal court’s dismissal of an orthopedic firm insured’s amended complaint for declaratory relief, bad faith, fraud and negligent misrepresentation over the denial of its business interruption claim related to COVID-19 shutdown orders, finding that the insured fails to satisfy the requirement of pleading an “accidental direct physical loss” to trigger coverage under the insurance policy.
March 30, 2023
Panel: Fact Issues Exist As To Whether Insurer Was Prejudiced By Untimely Notice

WEST PALM BEACH, Fla. — A Florida appeals panel on March 29 held that there is an issue of material fact regarding whether a homeowners insurer was prejudiced by the insureds’ lack of timely notice of their property damage caused by Hurricane Irma, reversing a lower court in part.
March 30, 2023
D.C. Panel: Restaurants Did Not Incur Direct Physical Loss From COVID-19 Shutdown

WASHINGTON, D.C. — The District of Columbia Court of Appeals affirmed a lower court’s denial of insureds’ expedited motion for summary judgment and grant of their all-risk insurer’s cross-motion for summary judgment in a coronavirus coverage dispute, finding that the insureds’ “loss of use” of their properties as a result of D.C. Mayor Muriel Bowser's shutdown orders was not a “direct physical loss” that triggered insurance coverage.
March 30, 2023
Federal Judge Dismisses Thunderstorm Coverage Suit After Parties Reach Settlement

JASPER, Ala. — A federal judge in Alabama dismissed with prejudice an insured’s lawsuit seeking coverage for property damage allegedly caused by a 2019 thunderstorm after the parties indicated that they reached a settlement.
March 28, 2023
Panel Affirms Judgment Against Insurer In Bad Faith Suit Over Hailstorm Damage

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 27 affirmed a lower federal court’s judgment against an insurer in an insured’s breach of contract and bad faith lawsuit arising from hailstorm damage, rejecting the insurer’s argument that a $285,000 jury award for its breach of contract is excessive.
March 27, 2023
Burger Chain Asks 9th Circuit To Rehear No Coverage Ruling For Coronavirus Losses

PASADENA, Calif. — In-N-Out Burgers filed a petition for panel rehearing and rehearing en banc challenging the Ninth Circuit U.S. Court of Appeals’ March 10 ruling that affirmed a lower court’s dismissal of its breach of contract lawsuit against its commercial property insurer, arguing that the Ninth Circuit should correct or withdraw its ruling and stay the appeal pending the California Supreme Court’s answer to the Ninth Circuit’s certified question in Another Planet Entertainment, LLC v. Vigilant Ins. Co. to determine whether “the actual or potential presence of the COVID-19 virus on an insured's premises” constitutes “direct physical loss or damage to property” to trigger coverage under an insured’s commercial property insurance policy.
March 27, 2023
Panel Affirms Dismissal Of Unjust Enrichment Suit In Travel Insurance Dispute

PHILADELPHIA — The Third Circuit U.S. Court of Appeals on March 24 affirmed a lower federal court’s dismissal of a putative class action that was brought against an insurance plan administrator and an insurer, rejecting the plaintiff’s contention that the defendants were unjustly enriched when they retained the post-departure coverage portion of his travel insurance premium after his international trip was canceled because of the coronavirus pandemic.
March 24, 2023
Breach Of Contract, Bad Faith Claims Related To Damage Estimate Can Proceed

LAKE CHARLES, La. — An insured commercial property owner’s breach of contract and bad faith claims related to the value of the insured’s property damages and property depreciation arising out of damages caused Hurricanes Laura and Delta can proceed, a Louisiana federal judge said after determining that the insured presented evidence that the insurer’s estimate of the damages may have been undervalued.
March 23, 2023
Illinois Panel Affirms Rulings In Favor Of Insurer, Agent In COVID-19 Suit

CHICAGO — An Illinois appeals court panel on March 22 affirmed a trial court’s grant of a commercial property insurer’s motion for judgment on the pleadings and an insurance agent’s motion to dismiss a lawsuit brought by dental insureds, finding that the insureds did not incur “direct physical loss of or damage to” their properties to trigger coverage for their claimed business losses arising from their suspension of elective dental procedures during the initial outbreak of the coronavirus pandemic.
March 23, 2023
Insurer Asks 11th Circuit To Reverse Appraisal Order In Hurricane Irma Dispute

ATLANTA — An insurer asks the 11th Circuit U.S. Court of Appeals to reverse a Florida federal court’s order compelling appraisal in a Hurricane Irma coverage lawsuit brought by a condominium association insured, arguing that there “is nothing normal to this ‘new normal’ of compelling appraisal upon mere motions and argument of counsel.”
March 23, 2023
Texas High Court Grants Emergency Stay To Insurers In Winter Storm Coverage Suit

AUSTIN, Texas — The Texas Supreme Court granted insurers’ emergency motion to stay pending mandamus review of a lower court’s ruling denial of their plea for an order abating a winter storm coverage dispute until 30 days after the insured submits to an examination under oath (EUO).
March 22, 2023
Magistrate Issues Stay In Hurricane Coverage Suit Against Insolvent Insurer

BATON ROUGE, La. — A Louisiana federal magistrate judge issued a stay in a coverage dispute filed by a homeowner against his insurer after Hurricane Ida caused purported property damage, finding that a stay is required pursuant to the terms of a consent order appointing the Florida Department of Financial Services (DFS) as receiver for the insurer in liquidation and by Louisiana law requiring a six-month stay in proceedings involving an insolvent insurer.
March 22, 2023
Final Dismissal Issued In Wind Damage Suit Against Florida Guaranty Association

PENSACOLA, Fla. — A Florida state court issued a final dismissal order in a homeowners’ suit over wind damage coverage against the Florida Insurance Guaranty Association (FIGA) as statutory receiver for an insolvent insurer after the homeowners filed a notice of voluntary dismissal.
March 21, 2023
Insured Asks 7th Circuit To Rehear No Coverage Ruling In $5.3M COVID-19 Suit

CHICAGO — An insured asked the Seventh Circuit U.S. Court of Appeals to reconsider its March 2 ruling that affirmed a lower federal court’s dismissal of its declaratory judgment lawsuit seeking commercial insurance coverage for its more than $5.3 million in claimed derivative losses arising from the coronavirus pandemic.
March 20, 2023
5th Circuit Vacates Ruling In Insurer’s Favor In Hurricane Harvey Coverage Suit

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 17 held that a lower federal court did not properly conduct the required analysis when it excluded expert evidence in a Hurricane Harvey coverage dispute, vacating the lower court’s evidentiary rulings and summary judgment in favor of the insurer and remanding.
March 20, 2023
Louisiana Majority Reinstates No Coverage Ruling In Restaurant’s Coronavirus Suit

NEW ORLEANS — A majority of the Louisiana Supreme Court on March 17 found that the coronavirus did not cause “direct physical loss of or damage to” an insured’s French Quarter restaurant, reversing an appellate court majority’s finding that an insurance policy is ambiguous and capable of more than one reasonable interpretation as to coverage and reinstating a trial court judgment that denied coverage for the insured’s lost business income arising from the pandemic.
March 17, 2023
Judgment Denied In Hurricane Coverage Suit Involving Facebook Donation Request

NEW ORLEANS — A Louisiana federal judge on March 16 denied an insurer’s motions to confirm an appraisal award and for summary judgment in a coverage dispute over hurricane damage at the insured’s nonprofit ranch for teenage boys, finding that award confirmation is denied because the insurance contract identifies the appraisal as nonbinding and that fact issues remain regarding the insured’s purported damage misrepresentation “even assuming” that the reduced donation request on its “Facebook post is competent summary judgment evidence.”
March 16, 2023
Tulane Seeks Coverage For ‘Time Element,’ Other Losses Arising From Coronavirus

NEW ORLEANS — The administrators of the Tulane Educational Fund sued its insurers for a declaratory judgment and bad faith penalties in a Louisiana federal court, seeking coverage for its medical catastrophe expense (MCE) claim and evacuation expenses (EE) resulting from the COVID-19 contagion.
March 16, 2023
Texas High Court Refuses To Review Coverage Dispute Arising From Hailstorm Damage

AUSTIN, Texas — The Texas Supreme Court denied an insurer’s petition seeking review of an appeals court’s reversal of summary judgment in its favor in a condominium community insured’s coverage lawsuit arising from hailstorm property damage.
March 16, 2023
Florida Panel Affirms Ruling In Favor Of Insurer In Hurricane Irma Coverage Suit

MIAMI — A Florida appeals court panel on March 15 affirmed summary judgment in favor of a homeowners insurer in a coverage dispute arising from Hurricane Irma damage, finding that the trial court did not abuse its discretion when it denied the plaintiff assignee’s request for a continuance for further discovery.
March 14, 2023
No Coverage For Salon’s Losses Arising From Coronavirus, N.J. Panel Affirms

TRENTON, N.J. — A New Jersey appeals court panel affirmed dismissal of a hair salon insured’s breach of contract and declaratory judgment lawsuit seeking coverage for its business losses arising from the coronavirus pandemic, finding that the appeals court in Mac Prop. Grp. LLC v. Selective Fire & Cas. Ins. Co. analyzed and rejected a similar coverage argument.