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Mealey's Insurance Pleadings

  • July 26, 2024

    Ex-Underwriter’s Dismissal Bid Skirts Main Claim In Breach Of Contract Row

    MIAMI — Noting that he does not seek dismissal of a claim that he says the bulk of the allegations relate to, a former underwriter on July 25 moved in Florida federal court for dismissal of the other two claims in a suit over conduct that an insurer alleges included greatly exceeding his authority by executing a facultative retrocession agreement to cover a risk of more than $44 million.

  • July 25, 2024

    Insurer Says Other Insurer Owes Coverage To Insured For Hot Tub Injury Suit

    SAN JOSE, Calif. — An insurer filed suit in California federal court against another insurer, seeking a declaration that a pollution exclusion and fungi or bacteria exclusion in the other insurer’s policies do not bar coverage to a mutual insured for an underlying suit alleging that the insured’s failure to maintain a hot tub caused an individual to sustain bodily injuries.

  • July 24, 2024

    Parties In Good Farming Practices Row Don’t Want Rebriefing Under Loper Bright

    LUBBOCK, Texas — In a brief joint notice ordered by a Texas federal judge, a farmer and regulators agree that the U.S. Supreme Court decision overruling a deference doctrine does not necessitate rebriefing their pending motions for summary judgment and judgment on the administrative record in a crop insurance case.

  • July 24, 2024

    CMS, HHS Seek Dismissal Of Guaranty Association’s MSP Suit Against Them

    RALEIGH, N.C. — The U.S. Department of Health and Human Services (DHHS), its secretary and the Centers for Medicare and Medicaid Services (CMS) on July 23 filed a brief in North Carolina federal court supporting summary judgment and dismissal of the North Carolina Insurance Guaranty Association’s (NCIGA) suit against them, arguing that the secretary correctly found that NCIGA, as a primary plan under the federal Medicare Secondary Payer (MSP) statute, must reimburse CMS for a workers’ compensation claim involving an insolvent insurer.

  • July 23, 2024

    Insureds: Insurers’ ‘Greed’ Put ‘Selfish Profits’ Ahead Of Maui Wildfire Victims

    MAUI, Hawaii — Insureds sued their insurers for bad faith in a Hawaii court, 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.”

  • July 19, 2024

    Insureds File Contempt Motion In Hurricane Coverage Row With Guaranty Association

    LAKE CHARLES, La. — Insureds whose rental property purportedly incurred hurricane damage filed a contempt motion in Louisiana federal court against an independent adjustor for its failure to respond to a subpoena in their hurricane coverage dispute with the Louisiana Insurance Guaranty Association (LIGA), which was substituted for their now-insolvent insurer.

  • July 19, 2024

    Insurer Disputes D&O Coverage For Fraudulent Inducement Lawsuit

    CHICAGO — An insurer filed suit in an Illinois federal court, seeking a declaration that it has no duty to defend or indemnify against an underlying lawsuit alleging that a seller and its venture capital sponsor defrauded buyers into purchasing the company SwervePay LLC.

  • July 18, 2024

    Dismissal Bid Disputed In Breach Of Contract Case Against Reinsurance Broker

    DALLAS — In dismissal filings in Texas federal court, parties in a breach of contract suit over losses associated with the collapse of Vesttoo Ltd. are disputing what the contract at issue required a reinsurance broker to do and whether two non-parties are necessary entities for the case.

  • July 18, 2024

    Insurers, Hotel Settle Coverage Dispute Arising From Secret Recording Of Guest

    ATLANTA — A hotel insured and its insurers filed a notice in a Georgia federal court indicating that they have reached a resolution of coverage dispute arising from an underlying negligence, premises and vicarious liability lawsuit alleging that the insured’s employee secretly recorded a hotel guest while she was showering.

  • July 17, 2024

    Parties In Reinsurance Row Dispute Proper Service For China-Based Defendants

    DES MOINES, Iowa — Service of process on China-based defendants is the focus of the latest dismissal filings in Iowa federal court in a dispute over reinsurance reimbursement, with the defendants and two members of the GuideOne family of insurance companies taking opposing positions regarding whether Iowa courts have embraced the “closely related party doctrine.”

  • July 16, 2024

    General Contractor Appeals No Coverage Ruling In Suit Over Faulty Stucco Claims

    CHARLESTON, S.C. — A general contractor filed a notice in a South Carolina federal court indicating that it is seeking the Fourth Circuit U.S. Court of Appeals’ review of the court’s finding that an insurer owed no coverage for damages caused after stormwater seeped through faulty stucco because the damage is not the result of an “occurrence” under the terms of the policy.

  • July 16, 2024

    Insured Seeks 9th Circuit Review Of Coverage Dispute Over Substandard Work Claims

    SANTA ANA, Calif. —An insured has asked the Ninth Circuit U.S. Court of Appeals to review a California federal judge’s grant of a commercial general liability insurer’s motion for judgment on the pleadings in the insurer’s declaratory judgment lawsuit disputing coverage for an underlying action alleging that it did substandard work on a Los Angeles luxury apartment project before being fired and that it was liable for flooding damage to switchgear.

  • July 12, 2024

    Clothing Boutique, Insurer Withdraw 2nd Circuit Appeal In Coronavirus Coverage Suit

    NEW YORK — An insurer and its clothing boutique owner insured stipulated that the insured’s appeal in its breach of contract and declaratory judgment lawsuit seeking business interruption and property damage coverage for its losses arising from the COVID-19 pandemic and subsequent shutdown orders has been withdrawn with prejudice from the Second Circuit U.S. Court of Appeals.

  • July 11, 2024

    Insured Sues Insurer For Bad Faith, Seeks Coverage For ‘Hidden Damage’ To Condos

    SEATTLE — A condominium owners association sued its property insurer in a Washington federal court for breach of contract, bad faith and violations of the Washington Consumer Protection Act, seeking coverage for the cost of repairing “hidden damage” to its condominiums.

  • July 11, 2024

    Insurer Seeks To Void Policy, Deny Fire Damage Coverage For Code Violation Fraud

    LOS ANGELES — A commercial insurer sued its insured limited liability company in a California federal court, seeking rescission of the insured’s policy and a declaration that the insurer is not obligated to pay for fire damage to the property due to the insured’s material misrepresentations in the policy application regarding the absence of safety code violations and liens on the property when an investigation revealed otherwise.

  • July 10, 2024

    Insurer Disputes Coverage For BIPA Suits Over Food Phone Orders Handled By AI

    CHICAGO — A businessowners insurer filed suit in an Illinois federal court seeking a declaratory judgment that it owes no coverage for two underlying putative class action lawsuits alleging that its insured and two franchise restaurants violated the Illinois Biometric Information Privacy Act (BIPA) when they used the insured’s voice artificial intelligence technology to handle phone orders from customers.

  • July 10, 2024

    Excess Insurer Dismissed From Professional Liability Coverage Suit In Delaware Court

    WILMINGTON, Del. — Parties in a professional liability coverage dispute filed a stipulation to dismiss with prejudice all claims against one excess insurer in the insured’s breach of contract lawsuit seeking coverage for three underlying class action lawsuits alleging that it failed to disclose material information regarding the potential of future long-term care (LTC) insurance policy rate increases.

  • July 09, 2024

    No Coverage Owed For Underlying Contamination Lawsuit, Insurer Says

    HOUSTON — No coverage is owed to an insured for an underlying lawsuit alleging that the insured’s gas and oil operations caused ground and water contamination because the insured did not provide notice of the lawsuit until eight years after the lawsuit was filed and after the insured agreed to settle the underlying suit, an insurer says in its complaint filed in Texas federal court.

  • July 09, 2024

    4th Circuit Review Sought In Suit Challenging Lender’s Charge Of Insurance Premiums

    RICHMOND, Va. — A plaintiff in a putative class action challenging a mortgage lender’s charge and collection of the insurance premiums asked the Fourth Circuit U.S. Court of Appeals to review a Maryland federal court’s finding that the lender did not violate the Credit Grantor Closed End Credit Provisions (CLEC) by receiving a commission from a third-party insurer because the CLEC is inapplicable to the lender’s receipt of a commission.

  • July 08, 2024

    Insureds Say 9th Circuit Should Affirm Coverage Opinion In Pollution Suit

    SAN FRANCISCO — A district court correctly found that an insurer owes coverage for an underlying environmental contamination lawsuit because the insureds met their burden of proving that the underlying lawsuit alleges a potential for coverage under the policies at issue, the insureds maintain in an appellee brief filed in the Ninth Circuit U.S. Court of Appeals.

  • July 02, 2024

    Insurer Amends Complaint Against Former Underwriter After Jurisdictional Toss

    MIAMI — In an amended complaint dropping an initial plaintiff, an insurer sued a former underwriter in Florida federal court over conduct it alleges included greatly exceeding his authority by executing a facultative retrocession agreement to cover a risk of more than $44 million.

  • July 02, 2024

    Citing Prudential, Appellees Urge 3rd Circuit To Affirm Securities Row Dismissal

    PHILADELPHIA — Arguing primarily that City of Warren Police and Fire Ret. Sys. v. Prudential Fin. is dispositive, a reinsurer and three former executives urge the Third Circuit U.S. Court of Appeals to uphold discovery and summary judgment rulings in a suit over allegations that they violated federal securities laws by omitting historical loss ratios from loss reserves disclosures.

  • July 02, 2024

    Homeowners Insurer Disputes Coverage For Wire Fraud Suit Brought Against Insured

    NEW HAVEN, Conn. — A homeowners insurer filed suit in a Connecticut federal court seeking a declaration that it has no duty to defend and indemnify its insured in an underlying lawsuit alleging that she and an associate provided fraudulent wire instructions and absconded with $1.4 million in closing funds with respect to the purchase of a Lavallette, N.J., property.

  • June 28, 2024

    Citing Spizzirri, Insurer Asks 7th Circuit To Dismiss Appeal In Arbitration Estoppel Row

    CHICAGO — Arguing that Smith v. Spizzirri renders deficient “the basis for this Court’s appellate jurisdiction,” an insurer filed a June 27 motion in the Seventh Circuit U.S. Court of Appeals to dismiss reinsurers’ fully briefed appeal concerning the effects of prior arbitration involving asbestos-related liabilities.

  • June 26, 2024

    CGL Insurer Disputes Coverage For Suit Against U.S. Paralympic Committee

    DENVER — A commercial general liability insurer filed suit in a Colorado federal court seeking a declaratory judgment that it has no duty to defend or indemnify the U.S. Olympic and Paralympic Committee (USOPC) for a paralympic swimmer’s lawsuit alleging that a team member sexually assaulted and harassed him and that USOPC failed to warn his parents about the team member or supervise the accused.