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Mealey's Emerging Insurance Disputes

  • February 05, 2025

    Insurer Was Prejudiced By Delayed Notice Of Possible Claim, 5th Circuit Affirms

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Feb. 4 affirmed a lower federal court’s summary judgment ruling in favor of a marine insurer in a lawsuit arising from a ship’s allision with an embankment, finding that the insurer was actually prejudiced by the insured and additional insured’s failure to provide prompt notice of the allision.

  • February 05, 2025

    Insurers Withdraw Motion For Judgment On Pleadings In Maui Wildfire Coverage Suit

    MAUI, Hawaii — Insurers withdrew their motion for judgment on the pleadings in a Hawaii court in their insureds’ bad faith action alleging that the insurers’ subrogation lawsuit seeking to recover compensation for the payments that they made to victims of the Aug. 8, 2023, Maui wildfires is “unfair, inequitable, and unlawful” because they “seek to take money away from their premium-paying insureds who are the real victims of the Maui Wildfires without showing that these victims have been fully compensated.”

  • February 05, 2025

    Federal Judge Refuses To Dismiss Malpractice Insurer’s Declaratory Judgment Suit

    OMAHA, Neb. — A federal judge in Nebraska denied an attorney insured’s motion to dismiss its malpractice insurer’s lawsuit seeking a declaration that it has no duty to defend or indemnify against an underlying malpractice action, finding that the court has personal jurisdiction and the insurer’s complaint states a plausible claim for relief.

  • February 05, 2025

    Judge Partly Grants Summary Judgment To Insurer In Wrongful Death Coverage Suit

    MOBILE, Ala. — A federal judge in Alabama granted in part and denied in part an insurer and its claims handling entity’s motions for summary judgment in an insured’s lawsuit alleging that the insurer wrongfully denied additional insured coverage to the insured’s franchisor for an underlying wrongful death action, further denying the insured’s motion for partial summary judgment.

  • February 04, 2025

    Home Depot Asks 6th Circuit To Rehear No Coverage Ruling In Data Breach Dispute

    CINCINNATI — Home Depot filed a petition in the Sixth Circuit U.S. Court of Appeals seeking a panel rehearing of a majority ruling that affirmed an Ohio federal court’s finding that a commercial general liability insurance policy’s electronic data exclusion bars coverage for Home Depot’s losses stemming from a 2014 data breach.

  • February 04, 2025

    Panel: Homeowners Insurer Not Independently Liable For Alleged Dangerous Property

    FRANKFORT, Ky. — A Kentucky appeals court panel held that under the terms of a homeowners insurance policy, the insurer is not independently liable for the purportedly dangerous condition of an insured’s property, affirming a lower court’s dismissal of a bad faith lawsuit seeking $300,000 in personal liability coverage for an injury that occurred at the insured property.

  • February 04, 2025

    Del. High Court Affirms Ruling Setting Aside Verdict In Insurance Coverage Dispute

    DOVER, Del. — The Delaware Supreme Court on Feb. 3 affirmed a lower court judge’s ruling granting an insured’s motion for a new trial in a professional liability coverage dispute arising from a Medicaid fraud investigation, finding that the judge did not ignore the law in setting aside a jury verdict.

  • February 04, 2025

    Judge: Abuse-Of-Process Claim Falls Outside Of CGL Policy Under Minnesota Law

    MINNEAPOLIS — A federal judge in Minnesota granted a commercial general liability insurer’s motion for judgment on the pleadings in its lawsuit seeking a declaration that it has no duty to defend or indemnify its insured against an underlying abuse-of-process claim, finding that under Minnesota law, malicious prosecution would be interpreted to unambiguously exclude abuse of process and, as a result, no coverage was triggered.

  • February 03, 2025

    Judge Dismisses Cross-Claims Between Insurers, Subcontractor In Mold Damage Coverage Suit

    LAS VEGAS — A federal judge in Nevada issued two orders dismissing with prejudice cross-claims between professional liability insurers and a subcontractor in a mold and moisture damage coverage dispute.

  • February 03, 2025

    Excess D&O Insurer Seeks Dismissal Of Law Firm’s Suit Seeking Payment For Invoices

    MIAMI — An excess directors and officers liability insurer moved to dismiss 11 of 12 claims in a law firm’s lawsuit seeking payment for the legal representation of its insured, alleging the law firm failed to state a cause of action and the claims are “nothing more than repeated attempts” to have the insurer pay two invoices.

  • January 31, 2025

    Texas High Court Will Not Reconsider Refusal To Review Wrongful Death Coverage Suit

    HOUSTON — According to its Jan. 31 orders pronounced, the Texas Supreme Court denied an insured and its insurer’s motions to rehear their petitions seeking review of an appeals court’s finding that they “conclusively established” that a defendant breached a contract by not maintaining the minimum required insurance coverages and not ensuring that the insured and its employees qualified as additional insureds but did not “conclusively” prove damages for the breaches.

  • January 30, 2025

    Judge Partly Grants Insurer’s Summary Judgment Motion In Work Injury Coverage Suit

    NEW YORK — A federal judge in New York granted a plaintiff insurer’s motion for summary judgment to the extent that it seeks an order that a defendant insurer has a duty to defend a subcontractor against an underlying personal injury action, that the defendant insurer’s coverage is primary and the plaintiff insurer’s coverage is excess and that the defendant insurer is liable for the sums the plaintiff insurer has incurred in defending the subcontractor against the underlying lawsuit.

  • January 29, 2025

    Panel Reverses Judgment In Baylor College Of Medicine’s Favor In COVID-19 Dispute

    HOUSTON — Noting an issue of first impression, a Texas appeals court concluded Jan. 28 that the presence of COVID-19 at the Baylor College of Medicine did not cause “direct physical loss of or damage to” to the insured’s property and reversed a lower court’s judgment following a jury verdict in favor of the insured.

  • January 29, 2025

    Pennsylvania Court Affirms Dismissal Of All Claims In Coronavirus Coverage Suit

    HARRISBURG, Pa. — Reconsidering its previous ruling on remand in light of the Pennsylvania Supreme Court’s decision in Ungarean v. CNA & Valley Forge Ins. Co., a Pennsylvania court affirmed a lower court’s dismissal of all claims brought by an insured in a coronavirus coverage dispute.

  • January 28, 2025

    3rd Circuit Stays Underwriting Association Mandate Pending Certiorari Filing

    PHILADELPHIA — Pending filing of a petition for writ of certiorari in the U.S. Supreme Court, the Third Circuit U.S. Court of Appeals without explanation granted an unopposed motion to stay the mandate of its ruling that the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides coverage to health care providers including those previously insured by insurers in liquidation, is a public entity rather than a private one.

  • January 28, 2025

    Indiana High Court: Discovery Of Smartphone Data Requires ‘Some’ Evidence Of Use

    INDIANAPOLIS — Weighing the need for requested discovery from a smartphone in an auto accident lawsuit with the phone owner’s privacy rights, an Indiana Supreme Court majority established an analytical framework in which it held that the party requesting such discovery “must provide ‘some evidence’” of the smartphone’s use before a court can grant a corresponding discovery motion.

  • January 27, 2025

    Judge Dismisses Lloyd’s From Freddie Mac’s D&O Coverage Suit Following Settlement

    WASHINGTON, D.C. — A federal judge in the District of Columbia granted Federal Home Loan Mortgage Corp. (Freddie Mac) and Certain Underwriters at Lloyd’s of London’s motion to dismiss with prejudice the dispute between them after they indicated that they have settled Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.

  • January 27, 2025

    Panel Affirms Ruling In Favor Of Insurer, Agent In Camp Fire Coverage Dispute

    SACRAMENTO, Calif. — A California appeals court on Jan. 24 affirmed a lower court’s summary judgment ruling in favor of a homeowners insurer and an insurance agent in a negligence lawsuit arising from the November 2018 Camp Fire, concluding that the agent’s alleged misrepresentations pertain to the scope of coverage under an insurance policy that was no longer in effect at the time of the wildfire loss.

  • January 24, 2025

    Excess CGL Insurers Dispute Coverage For Hundreds Of Opioid Suits Against Insured

    WILMINGTON, Del. — Excess commercial general liability insurers sued their management consulting firm insured and other insurers in a Delaware court, seeking a declaration that they have no duty to defend and indemnify against more than 260 underlying lawsuits seeking to hold the insured accountable for contributing to and profiting from the opioid epidemic.

  • January 24, 2025

    Hawaii Court Won’t Stay Allocation Proceeding Pending Subrogation Ruling

    HHONOLULU — Without explanation, a Hawaii Supreme Court justice denied a motion to stay a lower court’s allocation proceeding pending the resolution of reserved questions on how the subrogation rights of property and casualty insurance carriers bear on a proposed global settlement of claims related to the August 2023 Maui wildfires.

  • January 24, 2025

    Panel Partly Reverses Ruling In Retirement Facilities’ Coronavirus Coverage Suit

    CHICAGO — An Illinois appellate court panel reversed a lower court’s dismissal of insureds’ claim against one insurer in their lawsuit seeking “Contaminated Food/Communicable Disease Coverage,” finding that the application of the policy’s “Pathogenic or Poisonous or Chemical Materials” exclusion “would completely eviscerate that coverage and render it illusory,” but otherwise affirmed the lower court’s ruling in the insureds’ lawsuit prompted by the losses incurred by their continuing care retirement facilities following the COVID-19 outbreak.

  • January 24, 2025

    Federal Court Dismisses Hospital’s Coronavirus Coverage Suit Following Settlement

    BOSTON — A Maryland federal court dismissed without prejudice a hospital insured’s breach of contract lawsuit seeking coverage for its losses arising from the COVID-19 pandemic after the insured and its commercial property insurer announced that they reached a settlement.

  • January 24, 2025

    Settlement In Principle Reported In Row Over Jet Leased To Russian Operator

    SAN FRANCISCO — Citing “reports that Plaintiffs have reached settlements in principle with all Defendants,” a California state court judge vacated an April 7 trial date and other deadlines in an international aviation insurance coverage dispute involving Russia’s invasion of Ukraine.

  • January 22, 2025

    Federal Judge Dismisses Insurer From D&O Coverage Dispute Brought By Freddie Mac

    WASHINGTON, D.C. — One day after Federal Home Loan Mortgage Corp. (Freddie Mac) and Houston Casualty Co. filed a joint stipulation and motion to dismiss, a District of Columbia federal judge dismissed the insurer from Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.

  • January 22, 2025

    11th Circuit Grants 7-Eleven’s Motion To Dismiss Appeal In Injury Coverage Suit

    ATLANTA — The 11th Circuit U.S. Court of Appeals granted a 7-Eleven store’s unopposed motion to dismiss its appeal of a Florida federal court’s grant of insurers’ motion for summary judgment in its declaratory judgment lawsuit seeking coverage for a customer’s underlying bodily injury action alleging that a 7-Eleven employee physically struck him numerous times, finding that the general liability insurance policy’s assault and battery exclusion applied and the liquor liability insurance policy is inapplicable.