Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

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and property damage coverage for its losses arising from the COVID-19 pandemic and subsequent shutdown orders has been withdrawn with prejudice from the Second Circuit U.S. Court of Appeals.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.
June 25, 2024
CGL Insurer, Insured Settle And Dismiss Coverage Dispute Over Trade Secret Lawsuit

BOSTON — A commercial general liability insurer and its insured filed stipulations of dismissal after advising a Massachusetts federal court that they have settled their dispute over defense costs for an underlying trade secret lawsuit brought against the insured by its competitor.
June 25, 2024
Supermarket Sues Insurer For Bad Faith In Suit Arising From Parking Lot Shooting

ALLEGHENY, Pa. — Giant Eagle Inc. sued an insurer for bad faith, unjust enrichment and equitable contribution/indemnification seeking to recoup the more than $450,000 that it has incurred in defending against a lawsuit alleging that a police officer who was working as an off-duty security guard unlawfully shot a man in a Giant Eagle supermarket parking lot.
June 24, 2024
Insurer Appeals Rulings In Construction Insurance Suit Prompted By Sprinkler Leak

BATON ROUGE, La. — An excess insurer filed a notice indicating that it is appealing a Louisiana federal court’s rulings that first granted a manufacturer’s motion for summary judgment in a construction insurance dispute stemming from damages caused by a sprinkler leak and then dismissed all of the excess insurer’s claims against the manufacturer with prejudice.
June 24, 2024
Former Underwriter Is Sued Over Facultative Retrocession Deal, Other Allegations

MIAMI — Asserting claims for breach of contract and unjust enrichment, two affiliated companies sued a former underwriter in Florida federal court over conduct they allege included greatly exceeding his authority by executing a facultative retrocession agreement to cover a risk of more than $44 million.
June 24, 2024
District Court’s Collapse Ruling Must Be Reversed, Contractor Tells 6th Circuit

CINCINNATI — A federal judge erred in finding that no coverage is owed for a structurally unsound wall that remained standing after a portion of the wall collapsed during a building renovation because the lower court failed to apply Tennessee law in construing the meaning of the term collapse in the insurer’s policy, a building contractor says in its June 21 appellant brief filed in the Sixth Circuit U.S. Court of Appeals.
June 18, 2024
Guaranty Association Files Brief In Support Of Judgment In MSP Suit Against CMS

RALEIGH, N.C. — The North Carolina Insurance Guaranty Association (NCIGA) filed a brief in North Carolina federal court supporting its motion for summary judgment in its suit against the U.S. Department of Health and Human Services (DHHS), its secretary and the Centers for Medicare and Medicaid Services (CMS), seeking a determination that the NCIGA is not a primary plan under the federal Medicare Secondary Payer (MSP) statute and, therefore, not obligated to reimburse CMS regarding a workers’ compensation claim involving an insolvent insurer.
June 18, 2024
Insurer Says No Coverage Owed For Suit Stemming From Insured’s Fertilizer Plant

TYLER, Texas — An insurer filed suit in Texas federal court against its insured, seeking a declaration that it has no duty to defend or indemnify its insured for an underlying suit arising out of the insured’s operation of a fertilizer plant because the insured failed to timely notify the insurer of the suit and because the policies’ pollution exclusion bars coverage.
June 18, 2024
Insured Building Owner Says Lower Court Misinterpreted Policy’s Collapse Language

CINCINNATI — The Sixth Circuit U.S. Court of Appeal must reverse a district court’s ruling entered in favor of an insurer because the lower court failed to properly interpret and apply the language of the policy regarding the coverage afforded for the collapse of a wall, an insured building owner says in its June 17 appellant brief.