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Mealey's Insurance

May 08, 2024
COMMENTARY: Bad Faith As A Substitute For Prejudice In Reinsurance Late Notice Disputes

By Robert M. Hall
May 13, 2024
Insured Opposes Interlocutory Appeal, Says No Controlling Question Of Law Exists

NEW YORK — An insured says a commercial lines insurer’s motion for interlocutory appeal of a New York federal judge’s ruling to the Second Circuit U.S. Court of Appeals should be denied because no controlling question of law exists regarding whether a policy’s communicable disease exclusion applies as a bar to coverage for three underlying lawsuits alleging that residents of the insured properties contracted Legionnaires’ disease.
May 13, 2024
Insured Cannot Reassert Bad Faith Claim In Collapse Coverage Suit, Judge Says

PHILADELPHIA — A Pennsylvania federal judge denied an insured’s motion for leave to reassert a bad faith claim against its commercial property insurer in a dispute over coverage for the partial collapse of a building because the insured failed to show that the insurer’s reliance on the policy’s faulty workmanship exclusion to deny coverage was unreasonable.
May 10, 2024
Bad Faith Claim Against Homeowners Insurer In Water Damage Suit Cannot Proceed

HOUSTON — A bad faith claim alleged against a homeowners insurer in a water damage coverage dispute cannot proceed because none of the facts supports a finding that the insurer acted in bad faith in handling the insured’s claim for repair costs, a Texas federal judge said in partially granting the insurer’s motion for summary judgment.
May 09, 2024
Umbrella Insurer Failed To Show No Coverage Owed To Additional Insured, Judge Says

INDIANAPOLIS — An Indiana federal judge on May 8 denied an umbrella insurer’s motion for reconsideration of a summary judgment ruling on a breach of contract claim in a dispute over coverage for an additional insured for underlying lawsuits arising out of a gas explosion because the primary insured’s settlement with the underlying claimants did not extinguish coverage for the additional insured.
May 08, 2024
COMMENTARY: A Primer On PFAS/Forever Chemical Claims: Regulation, Litigation, Large Losses & Insurance Coverage Issues

By Scott M. Seaman and Gar N. Lauerman
May 08, 2024
Insurers Say Coverage Barred In AFFF PFAS Cases Because Harm Arises Out Of ‘Waste’

CHARLESTON, S.C. — A group of insurers has filed a sur-reply brief in South Carolina federal court arguing that the majority of lawsuits against a maker of the firefighting agent known as aqueous film forming foam (AFFF), for which the insurers are being asked to provide coverage, allege harm arising out of “waste,” rather than harm associated with a product put to its intended use, and, therefore, coverage is not owed.
May 07, 2024
Pollution Exclusion Bars Coverage For Dust Emissions Suit, Insurer Says

BROWNSVILLE, Texas — No coverage is owed to an insured for an underlying lawsuit stemming from dust emissions from the insured’s facility because the policy’s pollution exclusion bars coverage for the lawsuit, an insurer maintains in a complaint filed in Texas federal court.
May 06, 2024
Insurer, Insureds Settle Water Damage Coverage Suit; Stipulation Of Dismissal Filed

DENVER — A homeowners insurer and its insureds filed a stipulation of dismissal in Colorado federal court following the settlement of the insureds’ breach of contract and bad faith suit arising out of the insureds’ water damage coverage claim.
May 06, 2024
Question Of Law Exists On Communicable Disease Exclusion, Insurer Says

NEW YORK — A commercial lines insurer filed a motion for interlocutory appeal to the Second Circuit U.S. Court of Appeals, arguing that a question of law exists as to whether a policy’s communicable disease exclusion applies as a bar to coverage for three underlying lawsuits alleging that residents of the insured properties contracted Legionnaires’ disease.
May 06, 2024
Interlocutory Appeal Sought On Choice-Of-Law Ruling In Contamination Coverage Suit

EAST ST. LOUIS, Ill. — Insurers filed a motion to certify an Illinois federal judge’s choice-of-law ruling for interlocutory appeal to the Seventh Circuit U.S. Court of Appeals, contending that an interlocutory appeal will advance the environmental contamination coverage suit toward resolution.
May 06, 2024
Insured Files Notice Of Appeal To 7th Circuit In Radiation Exposure Coverage Suit

MILWAUKEE — An insured filed a notice of appeal to the Seventh Circuit U.S. Court of Appeals, seeking review of a Wisconsin federal judge’s ruling that breach of contract and bad faith claims cannot proceed against two commercial general liability insurers because coverage is barred 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.
May 02, 2024
Insurers Seek Dismissal Of BASF’s Coverage Action Tied To AFFF Injury Claims

CHARLESTON, S.C. — Multiple insurers have filed a brief in support of a motion to dismiss an insurance coverage action filed by BASF Corp. in South Carolina federal court related to claims arising from exposure to per- and polyfluoroalkyl substances (PFAS), arguing that there is a “more comprehensive” action BASF has already filed in New Jersey state court.
May 01, 2024
10th Circuit: Insurer’s Coverage Denial For Steel Collapse Not In Bad Faith

DENVER — A 10th Circuit U.S. Court of Appeals panel on April 30 affirmed a Wyoming federal judge’s finding that a building owner insured is owed no coverage under an insurance policy’s additional abrupt collapse coverage, finding that the building owner did not show that the insurer or its claims service manager acted in bad faith.
May 01, 2024
9th Circuit Denies Insureds’ Request To Remand Pollution Coverage Suit

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on April 30 denied a motion filed by insureds for a limited remand to allow a district court to rule on a post-judgment motion in an environmental contamination coverage suit, noting in its order that a review of the record shows that the district court denied the parties’ post-judgment motions without prejudice and that the parties did not file a renewed motion.
April 30, 2024
Insurer Urges 11th Circuit To Affirm Ruling That Pollution Exclusion Bars Coverage

ATLANTA — The 11th Circuit U.S. Court of Appeals should uphold a district court’s ruling that an insurer owes no coverage for underlying suits filed by residents of a condominium building who claim that they were injured as a result of fumes exhausted from a backup power generator because the policies’ pollution exclusions bar coverage as the generator was stored in a utility closet that was occupied or owned by the insured, the insurer contends in its appellee brief.
April 30, 2024
Insurer, Insured Reach Settlement In Water Damage Coverage Suit

SAN FRANCISCO — An insurer filed a notice of settlement in California federal court after reaching a settlement with its insured in a suit seeking coverage for water damages to the insured’s business.
April 30, 2024
Water Damage Coverage Suit Dismissed Following Parties’ Settlement

SCRANTON, Pa. — A Pennsylvania federal judge dismissed a suit filed by insureds seeking coverage for water damage after the insureds notified the court that they reached a settlement with the insurer.
April 30, 2024
Settlement Reached In Pollution Exclusion Suit; Stipulation Of Dismissal Filed

WASHINGTON, D.C. — An insured and its insurers filed a stipulation of dismissal in the District of Columbia federal court after reaching a settlement in a dispute over whether a pollution exclusion bars coverage for an underlying class action alleging that the insured restaurant’s grain and salad bowls contain harmful levels of fluorine and biocides.
April 29, 2024
Insurer’s Duty To Defend Foreclosed By Fungi, Bacteria Exclusion, 7th Circuit Says

CHICAGO — An insurer is not liable for an underlying state court judgment entered against an insured in a suit filed by a dialysis patient who claimed that the insured’s failure to properly clean a dialysis facility caused the patient to contract bacterial sepsis because the insurer had no duty to defend the insured pursuant to the policy’s fungi or bacteria exclusion, the Seventh Circuit U.S. Court of Appeal said in affirming a district court’s ruling for the insurer.
April 26, 2024
Insured Files Notice Of Cross-Appeal To 7th Circuit In Environmental Coverage Suit

SOUTH BEND, Ind. — An insured that was awarded more than $115 million by an Indiana federal jury on breach of contract and bad faith claims in a coverage suit stemming from the insured’s request for coverage costs related to the cleanup of polychlorinated biphenyls (PCBs) filed a notice of cross-appeal to the Seventh Circuit U.S. Court of Appeals.
April 25, 2024
Pollution Exclusion Bars Coverage For Claims Based On Release Of Pollutants

CHARLESTON, W.Va. — An insurer has no duty to defend or indemnify its insured against underlying counterclaims in an environmental contamination coverage dispute because the policies’ pollution exclusion clearly bars coverage for the counterclaims, which are based on the release of threatened release of pollutants as defined in the policies at issue, a West Virginia federal judge said in granting the insurer’s motion for summary judgment.
April 23, 2024
Insured Files Complaint, Says Additional Coverage Owed For Asbestos Suits

PHILADELPHIA — An insured filed suit in Pennsylvania federal court against its insurer, seeking a declaration that the insurer owes coverage for underlying asbestos bodily injury and alleging that the insurer breached the insurance policies at issue by terminating the insured’s defense and indemnity costs based the insurer’s belief that the underlying suits constitute one occurrence under the policies at issue.
April 22, 2024
Question Of Fact Exists On Insured’s Knowledge Of Contamination, Insured Says

ATLANTA — A district court’s ruling that no coverage is owed to an insured for contamination cleanup costs caused by the release of petroleum and other contaminants from an underground storage tank at a gas station should be reversed because a disputed issue of fact exists as to whether the insured knew about the contamination before the issuance of the policy, the insured says in its April 19 appellant reply brief filed in the 11th Circuit U.S. Court of Appeals.
April 19, 2024
Insurers File Notices Of Appeal To 7th Circuit In Contamination Coverage Suit

SOUTH BEND, Ind. — A number of insurers on the hook for a more than $115 million award entered by an Indiana federal jury in favor of the insured in a breach of contract and bad faith suit stemming from the insured’s request for coverage costs related to the cleanup of polychlorinated biphenyls (PCBs) filed notices of appeal to the Seventh Circuit U.S. Court of Appeals on April 18.