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Agent Fraudulently Joined In Hurricane Matthew Dispute, Judge Says, Denies Remand
SAVANNAH, Ga. - A Georgia federal judge on April 9 denied a homeowners association's motion to remand its insurance coverage lawsuit over Hurricane Matthew damage, finding that the association fraudulently joined an insurance agent to avoid federal jurisdiction (Wylly Island Homeowners' Association, et al. v. State Farm Fire and Casualty Co., et al., No. 17-244, S.D. Ga., 2018 U.S. Dist. LEXIS 60088).



Insureds Seek To Transfer Hurricane Matthew, Hermine Suits To Florida Federal Court
WASHINGTON, D.C. - Insureds on April 4 asked the Judicial Panel on Multidistrict Litigation to transfer related lawsuits over flood claims resulting from the 2016 and 2017 hurricane seasons in Florida, Puerto Rico and the U.S. Virgin Islands to the U.S. District Court for the Southern District of Florida for coordinated and consolidated pretrial proceedings, contending that transfer "will prevent duplication of discovery, eliminate the possibility of conflicting pretrial rulings, and conserve party and judicial resources" (In Re: 2016 and 2017 Hurricane Seasons Flood Litigation, No. 32, JPMDL).



Insured's Loss Caused By Surface Water; No Coverage Owed, Illinois Panel Affirms
CHICAGO - An Illinois appeals panel on March 30 affirmed a lower court's finding that water damage to an insured's bookstore is not covered because it was caused by a sewer backup resulting from the accumulation of surface water and is considered a flood under the policy (Edmund Lapa, d/b/a Polska Ksiazka v. Sentinel Insurance Company, Limited, No. 1-17-1050, Ill. App., 1st Dist., 1st Div., 2018 Ill. App. Unpub. LEXIS 569).



Panel: Restoration Company Has No Standing To Pursue RICO Claim Against Insurer
RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on March 9 affirmed a lower federal court's finding that a restoration company's alleged injury was not proximately caused by an insurer's conduct and, therefore, the restoration company fails to state a plausible claim under the Racketeer Influenced and Corrupt Organizations Act against the insurer and its consultants (Slay's Restoration, LLC v. Wright National Flood Insurance Company, et al., No. 17-1106, 4th Cir., 2018 U.S. App. LEXIS 5958).



Federal Judge Rejects Insured's Request To Reconsider Ruling In Flood Coverage Suit
HOUSTON - A Texas federal judge on March 14 denied an insured's motion for reconsideration of an earlier ruling that the statute of limitations barred the insured's federal flood insurance claim arising from a May 2015 storm in Houston (Ali Ekhlassi v. National Lloyds Insurance Co., et al., No. 17-1257, S.D. Texas, 2018 U.S. Dist. LEXIS 41717).



Procurement Fraud Claim Against Insurer Tossed In Flood Coverage Dispute
SAN FRANCISCO - A California federal magistrate judge on March 8 granted a federal flood insurer's motion to dismiss insureds' procurement fraud claim, finding that the claim is insufficient to allege fraud (Alicia Martin v. CSAA Insurance Exchange, et al., No. 17-04066, N.D. Calif., 2018 U.S. Dist. LEXIS 38444).



Louisiana Insured Sues Federal Flood Insurer For Breach Of Contract
BATON ROUGE, La.- A Louisiana insured on April 6 sued its federal flood insurer for breach of contract in the U.S. District Court for the Middle District of Louisiana, alleging that it wrongfully denied coverage and failed to pay the amount owed for the insured's claim arising from "historic and catastrophic" flooding that occurred in central Louisiana in August 2016 (Michael Daigre v. Wright National Flood Insurance Company, No. 18-00422, M.D. La.).



Insurer Sued In Federal Court For Breach Of Contract In Flood Coverage Dispute
BATON ROUGE, La. - Louisiana insureds on April 6 sued their flood insurer in a Florida federal court, alleging that they are owed $191,136.20 in repair and replacement costs for flood damage (James R. Ringo, et al. v. American Bankers Insurance Company of Florida, No. 18-00428, M.D. Fla.).



Flood Insurer Responds To Louisiana Insureds' Suit Over Supplemental Flood Claim
BATON ROUGE, La. - A federal flood insurer on March 28 responded to Louisiana insureds' federal court lawsuit alleging that it breached the insurance policy by failing to pay their supplemental claim for flood damage, asserting that all extracontractual and tort claims arising out of the handling of the flood loss claim under the policy are preempted by federal law (Randell Whittington, et al. v. Wright National Flood Insurance Company, No. 18-00213, M.D. La.).



Insured Says She Was Harmed By Insurer's Denial Of Her $74,379 Flood Damage Claim
BATON ROUGE, La. - A Louisiana insured sued her federal flood insurer in federal court on March 8, alleging that the insurer breached the policy when it wrongfully denied coverage for her $74,379.91 claim for flood damage (Stephanie LaValley v. Wright National Flood Insurance Co., No. 18-00268, M.D. La.).



Federal Judge Rejects Bad Faith Claim Against Insurer In Superstorm Sandy Dispute
CAMDEN, N.J. - A New Jersey federal judge on March 28 granted a homeowners insurer's motion for summary judgment on an insured's bad faith claim arising from Superstorm Sandy damage, finding that the insured failed to establish that a reasonable jury could determine that the insurer lacked a fairly debatable reason for denying the disputed portion of the insured's claim (Steven Breitman v. National Surety Corporation, No. 14-7843, D. N.J., 2018 U.S. Dist. LEXIS 52496).



Federal Judge Denies NYU's Request To Amend Complaint In Superstorm Sandy Suit
NEW YORK - A New York federal judge on March 27 denied New York University's motion to amend its complaint in a Superstorm Sandy coverage dispute with its insurer, finding leave to amend is not warranted because the four claims the insured seeks to add are untimely and fail on the merits (New York University v. Factory Mutual Insurance Company, No. 15-8505, S.D. N.Y., 2018 U.S. Dist. LEXIS 53418).



Day Care Owner Appeals Superstorm Sandy Coverage Dispute To U.S. Supreme Court
WASHINGTON, D.C. - A day care owner insured on March 9 asked the U.S. Supreme Court to review a lower federal court's finding that its insurer fulfilled the requirements of accord and satisfaction when it sent a check representing payment for the insureds' Superstorm Sandy losses (Anna Cranmer, et al. v. Philadelphia Indemnity Insurance Company, No. 17-1266, U.S. Sup.).



Judge Allows Limited Jurisdictional Discovery In 9/11 Suit Against Saudi Arabia
NEW YORK - A New York federal judge on March 28 denied the Kingdom of Saudi Arabia's motion to dismiss a lawsuit alleging that its government's agents and employees bear responsibility for the Sept. 11, 2001, terrorist attacks, finding that limited jurisdictional discovery on specific factual allegations critical to whether Saudi Arabia is immune from the suit will proceed promptly and expeditiously as to the alleged tortious acts by purported Saudi agents Fahad al Thumairy and Omar al Bayoumi (Underwriters Inc., et al. v. Kingdom of Saudi Arabia, et al., No. MDL 03-1570, S.D. N.Y.).



Insured Failed To Give Prompt Notice Of Rain Damage Loss, Federal Judge Says
LOUISVILLE, Ky. - A Kentucky federal judge on March 27 held that an insured's failure to give prompt notice of rain damage loss to its residential apartment building and the operation of the policy's "rain limitation" bar coverage for its claim, granting the insurer's motion for summary judgment in a breach of contract and bad faith lawsuit (South Fifth Towers LLC v. Aspen Insurance UK Ltd., et al., No. 15-151, W.D. Ky., 2018 U.S. Dist. LEXIS 51268).



Insureds May Bring First-Party Bad Faith Suit Against Insurer, Panel Rules
DAYTONA BEACH, Fla. - Insureds were not required to first obtain a judgment in an underlying breach of contract suit against their homeowners insurance provider that determined the insurer's liability and extent of damages before bringing their first-party insurance bad faith lawsuit against the insurer, a Florida appellate panel ruled March 29 in reversing a trial court's order and remanding (Thomas Demase, et al. v. State Farm Florida Insurance Co., No. 5D16-2390, Fla. App., 5th Dist., 2018 Fla. App. LEXIS 4335).



Summary Judgment On Bad Faith Claim Denied In Homeowners Insurance Dispute
OKLAHOMA CITY - Genuine questions of material fact exist as to whether an insurer's engineer conducted a reasonable investigation into a homeowners insurance claim to determine whether damage to an insured's home was caused by an earthquake or an event that was excluded under provisions of the policy, a federal judge in Oklahoma ruled March 30 in denying the insurer's motion for partial summary judgment (Ruth Whiteman v. State Farm Fire and Casualty Co., No. 16-0975, W.D. Okla., 2018 U.S. Dist. LEXIS 54412).



Panel: Insured's Failure To Choose Impartial Appraiser Compels Vacatur Of Award
DENVER - The 10th Circuit U.S. Court of Appeals on March 23 found that a condominium association insured's failure to select an impartial appraiser in a hailstorm coverage dispute compelled vacatur of the appraisal award under its insurance policy, affirming a lower federal court's ruling in favor of the insurer (Auto-Owners Insurance Company v. Summit Park Townhome Association, No. 16-1352, 10th Cir., 2018 U.S. App. LEXIS 7334).



Magistrate Won't Bifurcate, Stay Claims In Coverage Suit Due To Intertwined Issues
GREAT FALLS, Mont. - A Montana federal magistrate judge on March 20 denied insurers' motion to bifurcate a breach of contract claim and stay an unfair trade practices claim in a coverage dispute arising from a condominium association insured's wind, rain and hail damage, rejecting the insurers' argument that they will be unduly prejudiced if their motion is not granted (Park Plaza Condominium Association v. The Travelers Indemnity Company of America, et al., No. 17-112, D. Mont., 2018 U.S. Dist. LEXIS 45613).



Relators In Katrina Qui Tam Suit Say State Farm Withheld, Spoliated Documents
GULFPORT, Miss. - The relators in a 12-year-old qui tam suit accusing State Farm Fire and Casualty Co. of filing false flood insurance after Hurricane Katrina ask a California federal court in a March 12 reply brief to compel the insurer to produce documents it improperly withheld as privileged (United States, ex rel. Cori Rigsby, et al. v. State Farm Fire & Casualty Co., No. 1:06-cv-00433, S.D. Miss.).



5th Circuit: Contractor's Inactivity Did Not Exclude It From BP Settlement Class
NEW ORLEANS - A federal judge in Louisiana did not err when denying a contractor's request for review of a ruling denying its request for compensation under the Deepwater Horizon Economic and Property Damages settlement, a Fifth Circuit U.S. Court of Appeals panel ruled March 21, explaining that while the company's inactivity during the compensation period did not preclude it from being a member of the business and economic loss class, it failed to present sufficient documentation showing that it suffered a loss in income (Claimant ID 100187856 v. BP Exploration & Production Inc., et al., No. 17-30167, 5th Cir.).



Majority: 'Electrical Current' Exclusion Bars Coverage For Damage To City Property
DES MOINES, Iowa - A majority of the Iowa Court of Appeals on March 7 affirmed a lower court's finding that an insurance policy's "electrical currents" exclusion precludes coverage for damage to equipment at an electrical substation owned by the city of West Liberty, Iowa (West Liberty v. Employers Mutual Casualty Company, No. 16-1972, Iowa App., 2018 Iowa App. LEXIS 221).



Federal Judge Rules In Favor Of Insurer, Agent In Flood Coverage Dispute
HOUSTON - A Texas federal judge on March 2 ruled in favor of a federal flood insurer and its insurance agent in an insured's lawsuit arising from flood damage, finding that the insured's breach of contract claim is barred by the policy's one-year statute of limitations and that the state law claims fail as a matter of law (Al Cohen v. Allstate Insurance Company, et al., No. 17-2484, S.D. Texas, 2018 U.S. Dist. LEXIS 34236).



Louisiana Insureds Sue Insurer In Federal Court Over Supplemental Flood Claim
BATON ROUGE, La. - Insureds on March 2 sued their federal flood insurer in the U.S. District Court for the Middle District of Louisiana, alleging that it breached the contract by failing to pay their supplemental claim for flood damage (Randell Whittington, et al. v. Wright National Flood Insurance Company, No. 18-00213, M.D. La.).



Louisiana Insureds Sue Insurer For Breach Of Contract In Flood Dispute
BATON ROUGE, La. - Louisiana insureds on March 1 filed breach of contract lawsuit in the U.S. District Court for the Middle District of Louisiana, alleging that their federal flood insurer wrongfully denied coverage and failed to pay $173,000 owed to them for flood damage (Rebecca and Louis Deshotel v. Wright National Flood Insurance Co., No. 18-202, M.D. La.).



Insured Says SFIP Insurer Wrongfully Denied Or Unfairly Limited Flood Claim
BATON ROUGE, La. - An insured on Feb. 22 sued its federal flood insurer in the U.S. District Court for the Middle District of Louisiana, alleging that the insurer "unjustifiably failed and/or refused" to perform its duties pursuant to the Standard Flood Insurance Policy (SFIP) (Jarreau Construction LLC v. Selective Insurance Company of the Southeast, No. 18-00169, M.D. La.).



Claims Sounding In Professional Negligence Are Untimely, Panel Says In Wildfire Suit
SACRAMENTO, Calif.- A California appeals panel on Feb. 20 affirmed a lower court's finding that the gravamen of an insured's breach of fiduciary duty and financial elder abuse claims against its insurance broker is professional negligence and, therefore, the claims are time-barred by California Code of Civil Procedure Section 339, Subdivision 1 (Hank R. Pritchard V. Andy Houghton Insurance Agency, et al., No. C082975, Calif. App., 3rd Dist., 2018 Cal. App. Unpub. LEXIS 1160).



Panel Affirms Dismissal Of Remodelers' Suit Against Federal Flood Insurer
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Feb. 14 affirmed a lower court's dismissal of a breach of contract, unjust enrichment, fraudulent inducement and intentional and negligent misrepresentation lawsuit against a federal flood insurer, reiterating that the claims are preempted by the National Flood Insurance Act (NFIA) (D&S Remodelers Inc. v. Wright National Flood Insurance Services LLC, et al., No.17-5554, 6th Cir., 2018 U.S. App. LEXIS 3382).



Magistrate Refuses To Amend Findings Of 'Basement' Issue In Superstorm Sandy Suit
NEWARK, N.J. - A New Jersey federal magistrate on Feb. 8 refused to amend his Aug. 30 findings of fact and conclusions of law that found that claimants in a Superstorm Sandy coverage dispute have failed to establish that a condominium unit is at or above ground level on any side (Trinova Garden Street Condominium Association, Inc., et al. v. Wright National Flood Insurance Company, No. 15-4195, D. N.J., 2018 U.S. Dist. LEXIS 21780).



Florida Panel Finds Insurer Is Entitled To Attorney Fees, Costs
MIAMI - Finding that a lower court erred in ruling that an insurer's $1,000 proposed settlement for water damage was not made in good faith, a Florida appeals panel on Feb. 14 reversed and remanded for the lower court to grant the insurer's amended motion for entitlement to attorney fees and costs (Mount Vernon Fire Insurance Company v. New Moon Management, Inc., a/k/a New Moon Management Co., No. 3D16-2243, Fla. App., 3rd Dist., 2018 Fla. App. LEXIS 2165).



Florida Majority Reverses $493,246 Attorney Fee Award In Sinkhole Coverage Suit
LAKELAND, Fla. - A majority of the Second District Florida Court of Appeal on Feb. 14 reversed a lower court's $493,246.50 attorney fees award against an insurer in a sinkhole coverage dispute and remanded for further proceedings (Citizens Property Insurance Corporation v. Meghan Anderson, No. 2D16-616, Fla. App., 2nd Dist. 2018 Fla. App. LEXIS 2245).



Insured Alleges Viable Claim Against Adjuster; Suit Must Be Remanded, Judge Says
AUSTIN, Texas - An insured's suit seeking coverage for property damages caused by a hail storm must be remanded to Texas state court because complete diversity of citizenship does not exist as the insured states a plausible claim for relief against the insurance adjuster, a Texas federal judge said on Feb. 20 (Melvin Nelson v. State Farm Lloyds et al., No. 17-962, W.D. Texas, 2018 U.S. Dist. LEXIS 26547).



Summary Judgment Denied In Property Insurance Dispute Over Storm Damage
OKLAHOMA CITY - In a Feb. 14 order, a federal judge in Oklahoma ruled that an insurer is not entitled to summary judgment in an insurance bad faith lawsuit over a commercial property insurance dispute because an insured has provided sufficient evidence to create a genuine issue of material fact that the insurer failed to properly investigate the claim (Charles A. Shadid LLC v. Aspen Specialty Insurance Co., No. 15-595, W.D. Okla., 2018 U.S. Dist. LEXIS 24172).



Insured Asks Texas High Court To Reverse Take-Nothing Judgment In Hurricane Ike Suit
AUSTIN, Texas - An insured recently asked the Texas Supreme Court to reverse an appeals court's ruling affirming a take-nothing judgment against its commercial insurer in a Hurricane Ike coverage dispute (Triyar Companies, LLC, et al. v. Fireman's Fund Insurance Co.,17-0225, Texas Sup.).



Insurer: Texas High Court Should Review Ruling That 'Substantially Rewrites' Law
AUSTIN, Texas - An insurance company is asking the Texas Supreme Court to review an appellate court ruling that awarded a father and daughter damages for breach of contract when the insurer failed to pay for damages allegedly caused by Hurricane Ike. The insurer insists that the appellate decision "completely undermines confidence" in Texas public records and "substantially rewrites" Texas community property law (National Security Fire & Casualty Company v. Rene Lampson, No. 17-0149, Texas Sup.).



Insureds Sue Flood And Wind And Hail Insurers In Hurricane Matthew Dispute
BEAUFORT, S.C. - South Carolina insureds filed suit on Feb. 23 in the U.S. District Court for the District of South Carolina against their flood insurer and their wind and hail insurer, alleging breach of contract and bad faith (John Daniel, et al. v. South Carolina Farm Bureau Mutual Insurance Company, et al., D. S.C., No. 18-533).



Tennessee Panel Reverses $200M Judgment Against Insurers In Flood Dispute
NASHVILLE, Tenn. - A Tennessee appeals panel on Jan. 26 reversed a lower court's finding that insureds' policy limits were $200 million in a breach of contract lawsuit arising from a May 2010 Nashville flood, finding that the $50 million sublimit applies because the insured property is partially located within one of the zones listed under the policy's High Hazard Flood Zones (Opry Mills Mall Limited Partnership, et al. v. Arch Insurance Company, et al., No. M2016-01763, Tenn. App., 2018 Tenn. App. LEXIS 40).



Federal Judge Remands Flood Suit, Refuses To Exercise Supplemental Jurisdiction
NEW ORLEANS - A Louisiana federal judge on Feb. 1 granted a motion to remand a lawsuit arising over flood damage to state court, declining to exercise supplemental jurisdiction over the insureds' remaining state law claims against their insurance broker (Peggy Enriques Miranda, et al. v. Selective Insurance Company of the Southeast, et al., No. 16-12555, E.D. La., 2018 U.S. Dist. LEXIS 16439).



Claims In Bad Faith Suit Found To Be Preempted By Federal Law
SAN FRANCISCO - Insureds' claims in an insurance breach of contract and bad faith lawsuit over coverage under a homeowners insurance policy and a standard flood insurance policy (SFIP) are preempted by federal law, a federal judge in California ruled Jan. 10 in granting the insurer's motion to dismiss (Alicia Martin, et al. v. CSAA Insurance Exchange, No. 17-4066, N.D. Calif., 2018 U.S. Dist. LEXIS 4675).



Summary Judgment Ruling In Flood Insurance Suit Affirmed By 3rd Circuit
PHILADELPHIA - A federal district court did not err in granting summary judgment in favor of an insurer in an insurance breach of contract and bad faith lawsuit because an insurer's lawsuit against his flood insurance provider was time-barred since he filed the suit outside the one-year statute of limitations for standard flood insurance policies (SFIP), a Third Circuit U.S. Court of Appeals panel ruled Jan. 31 in affirming (Anthony Migliaro v. Fidelity National Indemnity Insurance Co., No. 17-1434, 3rd Cir., 2018 U.S. App. LEXIS 2097).



North Carolina Panel Affirms Ruling In Insurers' Favor In Superstorm Sandy Suit
RALEIGH, N.C. - A North Carolina appeals panel on Jan. 16 affirmed a lower court's ruling in favor of insurers in their declaratory judgment lawsuit challenging coverage for underlying property damage caused by Superstorm Sandy, finding that the insured's interpretation of the examination under oath (EUO) policy provision is unreasonable (North Carolina Farm Bureau Mutual Insurance Company, Inc., et al. v. Ronnie D. Lilley, Sr., No. COA16-998, N.C. App., 2018 N.C. App. LEXIS 60).



Federal Flood Insurer Seeks Dismissal Of New York Insured's Superstorm Sandy Suit
CENTRAL ISLIP, N.Y. - Wright National Flood Insurance Co. on Jan. 10 moved for a New York federal court to dismiss an insured's lawsuit alleging that he was wrongfully denied $141,274.50 in insurance proceeds for Superstorm Sandy damage to his Long Beach, N.Y., home, contending that the lawsuit is time-barred (David Clutter v. William B. Long, et al., No. 17-4833, E.D. N.Y.).



Panel: Insurer Failed To Prove Causation, Notice In Dispute Over Roof Collapse
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Jan. 23 affirmed a lower federal court's finding that an insurer failed to prove that a developer breached its lease with a sporting goods retailer, concluding that the developer is not liable for the insurer' damages arising from a roof collapse during a rainstorm (Developers Diversified of Tennessee, Inc. v. Tokio Marine & Fire Insurance Co., 16-6615, 6th Cir., 2018 U.S. App. LEXIS 1552).



Panel: Insurer Breached Duty To Defend, Is Equitably Responsible For Defense Costs
MILWAUKEE - A Wisconsin appeals panel on Jan. 17 affirmed that an insurer is equitably responsible for a government agency insured's $1.55 million underlying defense costs because it breached its duty to defend the insured against a lawsuit alleging that the insured was negligent in the inspection, maintenance, repair and operation of its sewer system before and during a June 2008 rain event in the greater Milwaukee area (Steadfast Insurance Company v. Greenwich Insurance Company, No. 2016AP1631, Wis. App., Dist. 1, 2018 Wisc. App. LEXIS 51).



3rd Circuit Panel Affirms Summary Judgment Ruling In Bad Faith Lawsuit
PHILADELPHIA - A federal district court did not err in granting summary judgment in favor of an insurer in an insurance breach of contract and bad faith lawsuit because the insurer paid full coverage limits for mold remediation under the terms of a homeowners insurance policy and, thus, could not have acted in bad faith, a Third Circuit U.S. Court of Appeals panel ruled Jan. 10 in affirming (Mary Ann Andrews, et al. v. Merchants Mutual Insurance Co., No. 17-1413, 3rd Cir., 2018 U.S. App. LEXIS 637).



Insureds' Claims For Contract Breach, Bad Faith Can Stand, Federal Judge Determines
TULSA, Okla. - An Oklahoma federal judge on Feb. 2 denied an insurer's motion for summary judgment on breach of contract and bad faith claims in a dispute over coverage for earthquake and mold damages after determining that the insureds offered sufficient evidence to support their claims (Larry W. Thomas, et al. v. Farmers Insurance Co., No. 16-17, N.D. Okla., 2018 U.S. Dist. LEXIS 17418).



Insurers Object To Magistrate's Report As To Reinsurance Claims In 9/11 Dispute
NEW YORK - Insurers on Jan. 25 filed an objection to a New York federal magistrate judge's recommendation that their claims arising out of reinsurance contracts be denied in a coverage dispute stemming from the terrorist attacks on Sept. 11, 2001, and also challenged the magistrate's calculation of prejudgment interest (In re: Terrorist Attacks on September 11, 2001, No. 03-MDL-1570, Continental Casualty Co. v. Al Qaeda Islamic Army, No. 04-5970, S.D. N.Y.).



Erroneous Jury Instruction Warrants Reversal Of Hailstorm Coverage Suit, Panel Says
WEST PALM BEACH, Fla.- A Florida appeals panel on Jan. 17 found that a lower court wrongly applied the efficient proximate cause doctrine in instructing the jury and improperly shifted the burden of proof in a hailstorm coverage dispute, reversing and remanding (Richard W. Jones, et al. v. Federated National Insurance Company, No. 4D16-2579, Fla. App., 4th Dist., 2018 Fla. App. LEXIS 561).



Texas Federal Judge Denies Motion To Remand, Dismisses Adjuster As A Defendant
FORT WORTH, Texas - A Texas federal judge on Jan. 25 denied an insured's motion to remand in a property damage coverage dispute after determining that the insured failed to support its allegations that the claims adjuster breached the duty of good faith and fair dealing (University Baptist Church v. Lexington Insurance Co., et al., No. 17-962, N.D. Texas, 2018 U.S. Dist. LEXIS 12057).



Question Of Fact Exists On Insurer's Initial Adjustment Of Property Damage Claim
DENVER - A Colorado federal judge on Jan. 23 refused to dismiss an insured's bad faith claim alleging that an insurer unreasonably adjusted its claim for property damages caused by a hailstorm because a question of fact exists regarding the insurer's initial adjustment of the insured's claim (Provincetown Landing II Association LLC v. American Family Mutual Insurance Co., No. 16-1403, D. Col., 2018 U.S. Dist. LEXIS 10537).



Rulings On Expert Affirmed In $550,000 Verdict Against Insurer For Hail Damage
ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 4 upheld a jury award of more than $550,000 for a Georgia apartment complex on its breach of contract claim against an insurer for not paying enough to replace hail-damaged shingles, finding that the trial court did not err or abuse its discretion in any of its Daubert rulings (The Grand Reserve of Columbus, LLC v. Property-Owners Insurance Company, No. 17-10264, 11th Cir., 2018 U.S. App. LEXIS 217).



Hurricane Irene Claim For Additional Damage Is Untimely, Federal Judge Says
ELIZABETH CITY, N.C. - A North Carolina federal judge on Jan. 11 found that insureds' claim for additional damage was made well beyond the Federal Emergency Management Agency deadline for Hurricane Irene-related claims, further concluding that the subrogation provision in a Standard Flood Insurance Policy (SFIP) provides no basis for the relief that the insureds' seek (Robert Shearer, et al. v. State Farm Fire and Casualty Company, et al., No. 17-31, E.D. N.C., 2018 U.S. Dist. LEXIS 6298).



Individuals, Businesses File Class Suit For Losses From Fire, Montecito Mudslides
LOS ANGELES - Southern California Edison Co. and Edison International (collectively, SCE) own, operate and improperly maintained unsafe electrical infrastructure that caused a December 2017 fire in southern California that, in turn, triggered a January 2018 mudslide, killing nearly two dozen people and destroying homes and business, individuals and businesses allege in a Jan. 24 class complaint filed in the Los Angeles County Superior Court, seeking an unnamed amount for damages and destruction of property, loss of use of property, loss of business, other damages and attorney fees (Victoria Frost, et al. v. Southern California Edison Company, et al., No. BC691146, Calif. Super., Los Angeles Co.).