Mealey's Insurance
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September 13, 2024
Settlement Reached Between Insurer, Insureds In Water Damage Coverage Suit
CHEYENNE, Wyo. — A homeowners insurer and its insureds notified the U.S. District Court for the District of Wyoming that a settlement of the insureds’ breach of contract and bad faith suit stemming from a clam for water damages has been reached.
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September 10, 2024
Question Of Fact Exists On Whether Additional Coverage For Water Damage Is Owed
NEWARK, N.J. — A New Jersey federal judge on Sept. 9 granted a homeowners insurer’s motion for summary judgment on an insured’s bad faith claim because a question of fact exists as to whether the insured is entitled to additional coverage under the policy for water damage in his home.
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September 10, 2024
Insured Settles With Insurer In Environmental Coverage Suit; Claims Dismissed
DETROIT — A Michigan federal judge dismissed an insured’s claims against an insurer named in the insured’s environmental contamination coverage suit after a settlement was reached between the parties.
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September 10, 2024
Judge Conditionally Dismisses Insureds’ Remediation Suit Following Settlement
SAN FRANCISCO — A California federal judge entered an order of conditional dismissal in a coverage dispute over costs for remediating a riverbank after the insureds notified the judge that they had reached a settlement with their umbrella liability insurer.
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September 10, 2024
Insurer Says Potential For Coverage Of Asbestos Suits Exists Under Other Policies
FORT WORTH, Texas — In response to motions for summary judgment in Texas federal court, an insurer claims that policies issued by two other insurers should be found to afford coverage for underlying asbestos bodily injury suits filed against a mutual insured because some of the underlying claims potentially allege exposure during the insurers’ policy periods.
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September 09, 2024
After Reconsideration, Judge Says Court Erred When It Ruled In Insurer’s Favor
LOS ANGELES — Granting insureds’ motion for reconsideration, a federal judge in California said the court erred when it granted an insurer’s motion for summary judgment as to insureds’ breach of contract claim, finding that the court cannot conclude as a matter of law that the insureds’ water damage loss is not covered by their policy.
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September 09, 2024
Judge Rejects Insurer’s Attempt To Amend Complaint In Environmental Dispute
SEATTLE — An insurer’s motion for leave to amend its complaint to add a declaratory judgment claim in a suit filed against another insurer and seeking contribution and indemnity from the other insurer for an insured’s environmental liabilities must be denied because the motion was filed almost 18 months after the imposed deadline for filing amended pleadings and the insurer failed to show good cause for the untimely filing of the motion, a Washington federal judge said Sept. 6.
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September 03, 2024
California Federal Judge Continues Jury Trial In Contamination Suit
RIVERSIDE, Calif. — A California federal judge continued a jury trial in an environmental contamination coverage suit filed by an insured seeking coverage for groundwater contamination discovered at a local airport.
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September 03, 2024
No Reasonable Juror Could Find Water Damage Was Sudden, Accidental, Panel Says
SAN FRANCISCO — The First District California Court of Appeal affirmed a trial court’s judgment in favor of a homeowners insurer after determining that the trial court did not err in instructing the jury regarding the cause of the loss because no reasonable jury could have found that the cause of a burst water pipe was sudden and accidental and, therefore, covered under the policy.
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September 03, 2024
Discovery Issues Derail Summary Judgment Bid In Cleanup Costs Coverage Row
PADUCAH, Ky. — After a report of discovery issues prompted denial of a summary judgment motion without prejudice in a dispute over pollution-related cleanup costs, a Kentucky federal magistrate judge has set new discovery deadlines and given the plaintiff leave to move to compel production.
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August 28, 2024
California Judge Enters Judgment In Hotel Insureds’ Coronavirus Coverage Dispute
LOS ANGELES — A California judge entered an amended judgment on a jury’s special verdict in favor of a commercial property insurer in hotel insureds’ breach of contract lawsuit arising from the COVID-19 pandemic after the parties signed a confidential settlement agreement and successfully requested dismissal of the insureds’ appeal.
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August 28, 2024
Insureds Failed To Comply With Policy; Bad Faith, Breach Of Contract Claims Fail
HOUSTON — A Texas federal judge granted a property insurer’s motion for summary judgment on breach of contract and bad faith claims because the insureds failed to comply with their duty to cooperate under the policy when they disposed of personal property before the insurer was able to inspect the damaged property.
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August 27, 2024
Only Direct Claim Survives Dismissal Bids In Lawsuit Over Asbestos Judgment
NEW YORK — Saying that amending those claims would be futile, a New York federal judge granted dismissal of bad faith, negligence and tortious interference claims against an insurer and a third-party claims administrator in a suit over a multimillion-dollar asbestos exposure judgment.
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August 27, 2024
Insured Dismisses Additional Claims Against Insurer In Contamination Coverage Suit
DETROIT — An insured dismissed claims against an insurer named in the insured’s environmental contamination coverage suit pending in Michigan federal court, and the insurer agreed to dismiss its counterclaim against the insured and its cross-claims against two of the other defendant insurers.
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August 27, 2024
Professional Services Exclusion Bars Coverage For Gas Tank Explosion Suits
PHILADELPHIA — A professional services exclusion included in a policy’s coverage parts for commercial general liability and contractor's pollution liability bars coverage for two underlying negligence suits stemming from a gas tank explosion alleged to have been caused by the insureds’ negligent inspection of the tank, the Third Circuit U.S. Court of Appeals said in affirming a district court’s opinion.
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August 26, 2024
Insurer Failed To Show Water Leak Did Not Cause Asbestos Contamination, Judge Says
SEATTLE — A Washington federal judge denied an insurer’s motion for summary judgment in a dispute over coverage for asbestos contamination that was discovered after a water leak in an insured cabin because the insurer failed to show that the water leak was not the efficient proximate cause of the asbestos contamination.
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August 26, 2024
Insured Settles With 2 Insurers Following 3rd Circuit’s Asbestos Ruling
PHILADELPHIA — Following a settlement between an insured and two of its insurers in an asbestos coverage suit, the Third Circuit U.S. Court of Appeals entered an order on Aug. 23 noting that after the Third Circuit’s mandate issues, the suit will continue on remand between the insured and the two remaining insurers consistent with the Third Circuit’s late-notice ruling.
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August 26, 2024
Settlement Reached In Asbestos Coverage Dispute Between Insurer, Insured
ROME, Ga. — An insurer and an insured notified a Georgia federal judge that they reached a contingent settlement in a suit seeking a declaration that coverage is owed for an underlying asbestos bodily injury suit arising out of the insured’s talc products.
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August 21, 2024
Asbestos Plaintiffs Claim BNSF, Insurer Use ‘Float’ To Profit Off Asbestos Claims
GREAT FALLS, Mont. — BNSF Railway Co. and its insurer Zurich American Insurance Co., which were recently held liable for $8 million in asbestos-related damages by a jury, commodify asbestos claims and trade on “human suffering” by delaying payment and refusing to settle in an effort to profit off the “float” between the time when they receive claims and when they make payments, plaintiffs allege in a complaint in Montana federal court.
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August 20, 2024
Contamination, Exposure Coverage Suit Transferred From New York To Maryland
NEW YORK — A New York federal judge on Aug. 19 transferred an insurer’s suit seeking a coverage declaration for a number of toxic exposure and environmental contamination lawsuits filed against its insured to Maryland federal court, where the insured filed an identical lawsuit against the insurer, because the insured met its burden of showing that Maryland is the more convenient venue for the parties and witnesses.
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August 20, 2024
Stay Of Insured’s Environmental Contamination Suit Is Warranted, Ill. Panel Says
MOUNT VERNON, Ill. — A trial court did not err in granted a motion to stay an insured’s lawsuit seeking coverage for underlying contamination suits arising out of the insured’s operation of a nearby landfill because the insured would not be prejudiced if its suit were stayed until the insurers’ declaratory judgment suit, filed in Missouri state court, is resolved, the Fifth District Illinois Appellate Court said in affirming the lower court’s ruling.
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August 19, 2024
Fact Issues Exist In Suit Seeking Reimbursement For Chemical Exposure Settlement
AUSTIN, Texas — A Texas federal judge denied motions for summary judgment filed by two insurers in a dispute over coverage for the settlement of an underlying lawsuit arising out of an employee’s injuries caused by exposure to polyvinyl chloride (PVC) and other chemicals after determining that fact issues exist over whether the employee was a temporary employee or a permanent employee at the facility where he was exposed to the chemicals.
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August 19, 2024
Homeowners Say Insurer Wrongfully Denied Coverage For Mine Subsidence Damages
OWENSBORO, Ky. — An insured couple claims that an insurer breached its contract and acted in bad faith by denying their claim for damages to their home caused by mine subsidence because the damages were documented and clearly caused by mine subsidence and not by earth movement or wear and tear as the insurer maintained in its coverage denial letter.
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August 19, 2024
District Court’s Collapse Ruling Was Not Clearly Erroneous, Insurer Says
CINCINNATI — A district court’s 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 was not clearly erroneous because the wall remained standing and did not collapse as required for coverage to be afforded under the policy, the insurer says in its Aug. 16 appellee brief filed in the Sixth Circuit U.S. Court of Appeals.
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August 15, 2024
Insurer Says Pollution Exclusion Bars Coverage, Exception Does Not Apply
SAN FRANCISCO — An insurer reiterates in an appellant reply brief filed in the Ninth Circuit U.S. Court of Appeals that a district court erred in finding that a pollution exclusion does not bar coverage for an underlying environmental contamination lawsuit because the underlying lawsuit fails to allege that there was any sudden and accidental pollution.