Subscribe: LexisNexis® Mealey's™ Insurance Legal News
Added By: Feedage Forager Feedage Grade B rated
Language: English
court  coverage  dist lexis  federal judge  federal  insurance  insured  insurer  judge  judgment  lexis  new york  new  york 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: LexisNexis® Mealey's™ Insurance Legal News

LexisNexis® Mealey's™ Insurance Legal News

Headline Insurance Legal News from LexisNexis®


Pollution Exclusion Bars Coverage For Carbon Monoxide Injuries, Appeals Panel Says
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Aug. 14 affirmed a district court's ruling that a policy's pollution exclusion precludes an insurer's duty to indemnify an underlying personal injury suit arising out of carbon monoxide poisoning because the underlying injuries clearly arose out of the release, dispersal or migration of carbon monoxide into the atmosphere (Travelers Property Casualty Company of America v. Christopher A. Klick, et al., No. 16-4000, 8th Cir., 2017 U.S. App. LEXIS 15017).

Motion To Remand Pollution Dispute Denied; Claims Against Adjuster Fail, Judge Says
HOUSTON - A Texas federal judge on Aug. 10 denied a motion to remand by insureds seeking coverage under a pollution liability policy after determining that the insurer's adjuster was fraudulently joined to defeat diversity jurisdiction (Waste Management Inc., et al., v. AIG Specialty Insurance Co., et al., No. 16-3676, S.D. Texas, 2017 U.S. Dist. LEXIS 126880).

No Coverage Owed For Mold Damages, Alabama Federal Judge Says
HUNTSVILLE, Ala. - No coverage is owed to an insured for mold damages to an insured's home because the policy at issue contained an endorsement that specifically excluded coverage for mold, an Alabama federal judge said Aug. 9 in granting the insurer's motion for summary judgment (Prithpal Singh v. State Farm Fire & Casualty Co., No. 16-1447, N.D. Ala., 2017 U.S. Dist. LEXIS 125651).

Arizona Federal Judge Denies Motion To Remand Insured's Bad Faith Suit
PHOENIX - An Arizona federal judge on Aug. 4 denied an insured's motion to remand after determining that the insurer has shown by a preponderance of the evidence that the amount in controversy exceeds the federal jurisdictional minimum of $75,000 (Ziva Hoarau v. Safeco Insurance Company of America, No. 17-1594, D. Ariz., 2017 U.S. Dist. LEXIS 123059).

7th Circuit Reverses Ruling, Finds Insurers Owe Defense For Insured's Leaky Windows
CHICAGO - Insurers have a duty to defend an insured against class action claims of leaks in windows because neither the economic loss doctrine nor the "your work" exclusion precludes coverage, the Seventh Circuit U.S. Court of Appeals held Aug. 8, reversing an underlying judgment and remanding with instructions to vacate that judgment (Mary Haley, et al. v. Kolbe & Kolbe Millwork Co., et al., Nos. 16-3563 & 16-3648, 7th Cir., 2017 U.S. App. LEXIS 14572).

Insurer Removes Suit Seeking Coverage For Water Damages To Federal Court
MIAMI - An insured's suit seeking a declaration that coverage is owed for water damage to his home was removed to Florida federal court on Aug. 14 by the insurer on the basis that the amount in controversy satisfies the federal jurisdictional amount in controversy (Romeo Alcantara v. American Security Insurance Co., No. 17-23077, S.D. Fla.).

8th Circuit: Faulty Fire System Is Not An 'Accident' Under Insurance Policy
ST. LOUIS - Replacing drywall and insulation as a result of a subcontractor's faulty fire suppression system did not constitute an "accident" under a general liability insurance policy, the Eighth Circuit U.S. Court of Appeals held Aug. 11, affirming the dismissal of breach of contract and bad faith claims against an insurer (McShane Construction Company LLC v. Gotham Insurance Co., No. 16-2632, 8th Cir., 2017 U.S. App. LEXIS 14875).

Federal Judge Finds Insureds Are Entitled To $62.7M For Contaminated Heparin Suits
GREENBELT, Md. - A Maryland federal judge on Aug. 3 entered a $62.7 million judgment in favor of insureds seeking coverage for underlying product liability lawsuits involving contaminated heparin after determining that coverage clearly exists under the policies and that the insurers failed to prove that the insureds made a material misrepresentation that prejudiced the insurers (The Charter Oak Fire Insurance Co., et al. v. American Capital Ltd., et al., No. 09-0100, D. Md., 2017 U.S. Dist. LEXIS 122156).

Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants
CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 2201).

Judge Orders Insurer To Produce Documents To Reinsurer In Breach Of Contract Suit
PHILADELPHIA - In a breach of contract suit over asbestos insurance claims, a Pennsylvania federal judge on Aug. 1 ordered an insurer to produce to a reinsurer original, unredacted versions of documents concerning proprietary information, historical loss reserves and information related to other reinsurance companies (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-1473, E.D. Pa., 2017 U.S. Dist. LEXIS 120858).

Insurer Seeks To Force Arbitration Of Coverage Dispute With Garlock
CHARLOTTE, N.C. - An insurer of an affiliate of former Chapter 11 debtor Garlock Sealing Technologies LLC sued Garlock, its parent and another former debtor affiliate in North Carolina federal court on Aug. 2, seeking to force the Garlock parties to arbitrate a dispute over whether the insurer owes any money to the parties under an excess policy issued in 1983 (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).

Panel Says Synthetic Stucco Exclusion Bars Insurance Coverage For Water Damage
MILWAUKEE - A commercial general liability insurance policy's synthetic stucco exclusion precludes coverage in a dispute between a condominium association and the insurer of a general contractor over water damage caused by subcontractors' defective work, a Wisconsin appeals panel affirmed July 31 (Kaitlin Woods Condominium Association Inc. v. Kaitlin Woods LLC, et al., No. 2015AP423, Wis. App., Dist. 1, 2017 Wisc. App. LEXIS 565).

Judge Grants Motion To Bifurcate Trial And To Hold Bad Faith Issues In Abeyance
LOUISVILLE, Ky. - A Kentucky federal judge on July 18 granted an insurer's motion to bifurcate an insured's bad faith counterclaim from other claims in a hailstorm coverage dispute and to hold the discovery of bad faith issues in abeyance pending the resolution of the other claims (Employers Mutual Casualty Co. v. SG&D Ventures LLC, No. 17-00105, W.D. Ky., 2017 U.S. Dist. LEXIS 111956).

3rd Circuit Affirms Verdict In Insured's Favor In Collapsed Facade Dispute
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on July 26 affirmed a Pennsylvania federal jury's verdict in favor of an insured after the stone facade on her home collapsed, rejecting the insurer's argument that the main cause of the collapse is excluded under the homeowners policy (Ahsaki Gordon, et al. v. Allstate Property and Casualty Insurance Co., No. 16-3671, 3rd Cir., 2017 U.S. App. LEXIS 13507).

Federal Judge Denies Insurer's Motion To Dismiss Contamination Coverage Suit
TACOMA, Wash. - A Washington federal judge on July 25 denied an insurer's motion to dismiss after determining that the insured's complaint seeking a coverage declaration for an underlying environmental contamination suit has stated a coverage claim against the insurer that is appropriate for resolution in the federal court (USNR LLC v. Hartford Accident & Indemnity Co., et al., No. 16-5879, W.D. Wash., 2017 U.S. Dist. LEXIS 116463).

Ga. Federal Judge Denies Insurer's Motion In Welding Fume Exposure Coverage Suit
MACON, Ga. - A Georgia federal judge on July 25 denied an insurer's motion for summary judgment on the duty to defend after determining that all of the underlying allegations arising out of exposure to welding fumes are not excluded under the policy at issue (Evanston Insurance Co. v. Sandersville Railroad Co., No. 15-247, M.D. Ga., 2017 U.S. Dist. LEXIS 115686).

Federal Judge Says Excess Policies Must Be Included In Allocation Of Asbestos Claims
TRENTON, N.J. - Umbrella and excess policies must be included when allocating liability for coverage of underlying asbestos claims filed against an insured because the excess and umbrella policies are a type of risk transfer, a New Jersey federal judge said July 26 in granting an insurer's motion for summary judgment (The Travelers Indemnity Co., et. al., v. Thomas & Betts Corp., No. 13-6187, D. N.J., 2017 U.S. Dist. LEXIS 117135).

Justice Declines To Dismiss Reinsurer Contract Breach, Misrepresentation Lawsuit
NEW YORK - A New York trial justice refused on July 17 to dismiss a Pennsylvania reinsurer's misrepresentation and breach of contract lawsuit against an Illinois insurer over asbestos coverage because there is a substantial nexus between New York and the underlying reinsurance transactions (R&Q Reinsurance Co. v. Allianz Insurance Co., No. 653744/2014, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 2721).

Enough Evidence Exists To Continue Audit Of THAN Trust, Insurers Say
WILMINGTON, Del. - Insurers should be awarded summary judgment in their bid to force the T H Agriculture & Nutrition LLC (THAN) asbestos trust to comply with their audit rights because their initial court-ordered audit of the trust showed evidence of fraud and incorrect payments to asbestos claimants that the insurers were looking for, they argue in a July 14 brief in Delaware state court (AIU Insurance Company, et al. v. Philips Electronics North America Corporation, et al., No. 9852, Del. Chanc.).

Pursuit Of In Personam Claims Against Johns-Manville Insurance Broker Debated
NEW YORK - An asbestosis sufferer and the longtime insurance broker for Johns-Manville Corp. continue to battle over whether the former can hold the latter liable for his injuries, with both filing the latest briefs July 7 in New York federal bankruptcy court on the lone remaining issue - whether any denial of due process would have resulted in prejudice to the claimant (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

Michigan Panel Affirms Exclusion Does Not Apply To Insured's Water Damage
GRAND RAPIDS, Mich. - A Michigan appeals panel on July 20 affirmed a lower court's ruling in favor of an insured in a coverage dispute arising from water damage to the insured's Ann Arbor, Mich., property (Cincinnati Insurance Co. v Thomas Kaeding II, No. 332559, Mich. App., 2017 Mich. App. LEXIS 1185).

Insureds Say Trial Court Did Not Consider All Evidence In Water Damage Suit
LOS ANGELES - Homeowners seeking coverage for water and mold damages to their home argue in a June 16 brief to the Second District California Court of Appeal that a trial court failed to consider the weight of the evidence supporting the insureds' claim when it entered judgment for the insurer (Roger Novack, et al., v. Pacific Specialty Insurance Co., et al., No. B278121, Calif. App., 2nd Dist., Div. 1, 2017 CA App. Ct. Briefs LEXIS 2924).

Insurer Gets Summary Judgment In Declaratory Action Stemming From Deck Collapse
ABERDEEN, Miss. - A Mississippi federal judge on July 21 granted an insurer summary judgment in a declaratory action against two victims of a deck collapse, saying there is no injury or damage caused by an occurrence under the policy and therefore no duty to defend a subcontractor who built the deck (Employers Mutual Casualty Company v. Brytni West, et al., No. 16-4, N.D. Miss., Aberdeen Div., 2017 U.S. Dist. LEXIS 113951).

2nd Circuit Panel Remands Judgment In Contamination Dispute For Proper Allocation
NEW YORK - The Second Circuit U.S. Court of Appeals on July 18 vacated and remanded a judgment entered against an insurer in an environmental contamination coverage dispute after determining that the damages must be allocated in accordance with the all sums, vertical exhaustion method outlined in a 2016 decision by the New York Court of Appeals (Olin Corp. v. OneBeacon America Insurance Co., et al., No. 15-2047, 2nd Cir., 2017 U.S. App. LEXIS 12939).

New York Justice Finds Insurers Were Not Timely Notified Of Contamination Claim
ALBANY, N.Y. - A New York Supreme Court justice on July 11 granted a motion for summary judgment filed by two insurers in an environmental contamination suit after determining that the insurers were not timely notified of the claim filed against their insured and that no reasonable explanation was provided for the more than three-year delay in notifying the insurers of the claim (State of New York v. Diana L. Flora et al., No. L61-13, N.Y. Sup., Albany Co.).

Court Allows Widow To Add Claims To Suit Over Missing Asbestos Payment
NEW YORK - A widow may add claims for declaratory judgment and tortious interference with contract to her case claiming that insurers and an administrator are intentionally delaying or denying payment on a more than $7 million asbestos verdict, a New York justice held in an opinion posted July 18 (Ruby Konstantin, et al. v. Aetna Casualty & Surety Co., et al., No. 652897/2013, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 2697).

Reinsurer, Insurer's Late Notice Dispute Set For Trial In Federal Court
UTICA, N.Y. - A reinsurer and insurer's dispute over reinsurance concerning an underlying $325 million settlement of asbestos claims against an insured has been scheduled for trial on Nov. 13 (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-cv-00853, N.D. N.Y.).

Reinsurer Argues To New York High Court For Cap Of Defense Costs In Asbestos Suit
NEW YORK - Reinsurance certificates should be interpreted according to their plain language requiring "all reinsurance 'subject to' the amount of liability and subordinating the follow-the-form clause to the certificates' specific terms," a reinsurer argues in a brief filed June 27 in the New York Court of Appeals, saying that its liability for defending and indemnifying asbestos litigation is capped (Global Reinsurance Corporation of America v. Century Indemnity Co., No. CTQ-2016, 0005, N.Y. App.).

Excess Insurer Seeks Review By California High Court On Issue Of Policy Exhaustion
LOS ANGELES - In a June 27 petition for review filed in the California Supreme Court, an excess insurer says the high court should accept review of a silica coverage suit because the appellate court failed to address what constitutes proper exhaustion of the primary insurance policy at issue (Truck Insurance Exchange v. Moldex Metric Inc., et al., No. S242845, Calif. Sup., 2017 CA S. Ct. Briefs LEXIS 1064).

Insurer Says Trial Court Properly Dismissed Insureds' Declaratory Judgment Claim
LAKELAND, Fla. - An insurer argues in a May 30 brief filed in the Second District Florida Court of Appeal that a trial court's dismissal of a declaratory judgment claim in a water damage coverage dispute was not in error because the trial court properly found that the insureds did not state a cause of action for declaratory relief (Samuel Rivera et al. v. Homeowners Choice Property and Casualty Insurance Co. Inc., No. 2D16-4567, Fla. App., 2nd Dist., 2017 FL App. Ct. Briefs LEXIS 2144).