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Mealey's Insurance

September 23, 2024
Federal Magistrate Judge Says Asbestos Coverage Suit Should Proceed

CINCINNATI — An Ohio federal magistrate judge recommended denying an insurer’s motion to dismiss an insured’s amended complaint seeking coverage for underlying asbestos liabilities because the amended complaint sufficiently establishes the existence of personal jurisdiction over the insurer and sufficiently alleges facts to support the insured’s declaratory judgment and breach of contract claims.
September 23, 2024
Pollution Exclusion Does Not Preclude Coverage For Suit Stemming From Breath Mints

ST. LOUIS — A Missouri federal judge on Sept. 20 granted a motion to dismiss an insurer’s suit seeking a declaration that no coverage is owed for an underlying suit seeking damages caused by a child’s ingestion of liquid breath mints that contained a chemical that damaged the child’s esophagus because the policy’s pollution exclusion cannot be interpreted as a bar to coverage for the underlying suit.
September 23, 2024
California High Court Tosses Certified Question Following COVID-19 Coverage Ruling

SAN FRANCISCO — In light of the recent ruling in John's Grill, Inc. v. The Hartford Financial Services Group, Inc., the California Supreme Court dismissed its consideration of 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.
September 19, 2024
Interpretation Of ‘Direct Physical Loss’ Phrase Was Erroneous, Building Owner Says

CINCINNATI — A district court erred in relying on a definition of the term “direct physical loss” as used in a prior opinion issued by the Sixth Circuit U.S. Court of Appeals when it determined that the collapse of some bricks from a wall within a building did not cause any damage to the wall or building as a whole, the building owner maintains in a Sept. 18 appellant reply brief filed in the Sixth Circuit.
September 19, 2024
Judge Denies Summary Judgment On Issue Of Contamination Exclusion’s Applicability

SANTA ANA, Calif. — A California federal judge refused to grant summary judgment in favor of an insured on the applicability of a policy’s contamination exclusion to losses sustained by the insured in the wake of the COVID-19 pandemic because the evidence could support a jury finding that the insured believed that the contamination exclusion would apply as a bar to coverage for the losses caused by the coronavirus.
September 18, 2024
No Coverage Afforded For Asbestos Suits Under Exposure Trigger Theory, Insurers Say

FORT WORTH, Texas — Two insurers maintain in reply briefs filed in Texas federal court that summary judgment in their favor in an asbestos coverage suit is warranted because coverage under their policies is barred under an exposure trigger of coverage theory, which they say applies pursuant to a Fifth Circuit U.S. Court of Appeals’ decision on the trigger of coverage issue.
September 17, 2024
Judge Refuses To Dismiss Contractor’s Coverage Suit Arising From Hotel Collapse

NEW ORLEANS — A federal judge in Louisiana denied builders risk insurers’ motion to dismiss a contractor’s breach of contract lawsuit seeking additional insured coverage for its $89,877,694 in losses arising from the aftermath of the partial collapse of a Hard Rock Hotel project in New Orleans, rejecting the insurers’ contention that the contractor’s lawsuit is untimely.
September 17, 2024
No Coverage Owed For Subpoena Issued To Insured In Fire-Suppressing Foam MDL

NEW HAVEN, Conn. — No coverage is owed to an insured distributor of a fire-suppressing foam for a subpoena served on the insured in an underlying multidistrict litigation seeking damages for bodily injuries and contaminated drinking water caused by the use of the foam because the subpoena does not constitute a claim under the insurance policy at issue, a Connecticut federal judge said in denying the insured’s motion for summary judgment and in granting the insurer’s motion for summary judgment.
September 17, 2024
Parties Dismiss Appeal Following Settlement Of Environmental Coverage Suit

SOUTH BEND, Ind. — An insured and its insurers filed a stipulation of voluntary dismissal of all appeals and cross-appeals in the Seventh Circuit U.S. Court of Appeals on Sept. 16 following the settlement of the insured’s suit seeking coverage for the cleanup of polychlorinated biphenyls (PCBs).
September 17, 2024
Insured Says District Court Erred In Interpreting Radioactive Materials Exclusion

CHICAGO — A district court erred in finding that no coverage is owed by insurers pursuant to the policies’ radioactive materials exclusion for an underlying suit seeking damages for bodily injuries caused by exposure to electromagnetic (EMF) radiation from the insured’s electric transformers because a reasonable insured would interpret the exclusion as providing coverage for the EMF exposure claims, the insured maintains in an appellant brief filed in the Seventh Circuit U.S. Court of Appeals.
September 17, 2024
Review Of Ruling In Benzene Suit Not Warranted, Insured Says In Response Brief

AUSTIN, Texas — Review of a Texas appellate court’s finding that a policy’s arbitration provision applies only to disputes arising under the insurance policy and not to disputes arising under a settlement pertaining to benzene-related claims filed against the insured is not warranted because the appellate court properly found that the settlement agreement’s forum-selection clause requires disputes over the settlement agreement to be resolved in court, the insured says in response to the insurer’s petition for review filed in the Texas Supreme Court.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.