Preview: LexisNexis® Mealey's™ Emerging Insurance Disputes Legal News
LexisNexis® Mealey's™ Emerging Insurance Disputes Legal News
Headline Emerging Insurance Disputes Legal News from LexisNexis®
Judge: Claims Alleging Wrongful Antitrust, Monopolizing Conduct Are Related
ORLANDO, Fla. - Judgment was entered in favor of insurers on Feb. 15, one day after a Florida federal judge found that there is no further coverage owed to insureds for lawsuits alleging that they have intentionally engaged in wrongful antitrust and monopolizing conduct in an effort to dominate the health care service industry (Health First Inc., et al. v. Capitol Specialty Insurance Corporation, et al., No. 15-718, M.D. Fla., 2017 U.S. Dist. LEXIS 20320).
Federal Judge: ERISA Stock Ownership Plan Cannot Seek Recovery Under Crime Policy
HOUSTON - A federal judge in Texas on Feb. 9 held that a third-party holding corporate stock cannot seek coverage under an insurance policy's plain language that limits coverage to "direct" losses when a corporate officer committed fraud that caused the devaluation of the corporation's stock (HC4, Inc. Employee Stock Ownership Plan v. Travelers Casualty and Surety Company of America, No. 16-00090, S.D. Texas, 2017 U.S. Dist. LEXIS 19605).
Federal Judge Refuses To Dismiss Insurers' Claim Under Defend Trade Secrets Act
TRENTON, N.J. - A New Jersey federal judge on Feb. 7 refused to dismiss insurers' federal claims under the Defend Trade Secrets Act of 2016 (DTSA) and the Computer Fraud and Abuse Act (CFAA) in their lawsuit alleging that the defendant competitors "willfully and maliciously" targeted and solicited at least 15 of their employees for employment (Chubb INA Holdings Inc. [f/k/a The Chubb Corporation], et al. v. Michael Chang, et al., No. 16-2354, D. N.J., 2017 U.S. Dist. LEXIS 16744).
Judge Rejects Insurers' Motion For Leave To Appeal Temporary Restraining Order
NEW YORK - A federal judge in New York on Feb. 9 denied as moot errors and omissions insurers' motion for leave to appeal a temporary restraining order (TRO) issued in a bankruptcy court in a coverage dispute with their insured MF Global Holdings Ltd. (MFGH) (MF Global Holdings Ltd., et al. v. Allied World Assurance Co. Ltd., et al., Nos. 17-106 and 17-113, S.D. N.Y., 2017 U.S. Dist. LEXIS 19328).
Judge: Bermuda Insurers Violated Doctrine By Filing Suit Without Obtaining Leave
NEW YORK - A federal bankruptcy judge in New York on Jan. 31 held that errors and omissions insurers violated the Barton doctrine by filing proceedings against MF Global Holdings Ltd. (MFGH) in Bermuda without obtaining leave from the bankruptcy court (In re: Mf Global Holdings Ltd., et al., Chapter 11, No. 11-15059, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 251).
Counterclaims Did Not Allege Advertising Injury, 10th Circuit Affirms
ATLANTA - The 10th Circuit U.S. Court of Appeals on Feb. 8 found that underlying counterclaims against an insured failed to assert facts that constituted an "advertising injury" under general liability and excess insurance policies, affirming a lower federal court's finding that the insurer did not have a duty to defend its insured (IVFMD Florida, Inc. v. Allied Property & Casualty Insurance Co., No. 16-15127, 11th Cir., 2017 U.S. App. LEXIS 2218).
Complaint Fails To Allege Personal, Advertising Injury, Federal Judge Rules
CHICAGO - In granting an insurer's motion for summary judgment, California federal judge on Feb. 2 held that underlying claims that an insured violated the Uniform Trade Secrets Act, intentionally inferred with contractual relations and prospective business advantage and engaged in unfair competition and civil conspiracy fail to trigger an insurance policy's "personal and advertising injury" coverage (Sentinel Insurance Co. v. Yorktown Industries Inc., No. 14-4212, N.D. Ill., 2017 U.S. Dist. LEXIS 14439).
Majority: Court Erred In Finding Professional Liability Policy Was Ambiguous
NEW ORLEANS - A majority of the Louisiana Supreme Court on Feb. 3 reversed and remanded an appeals court's finding that a police professional liability insurance policy was ambiguous in a dispute over a deputy sheriff's injury allegedly caused by a defective chair (Jackie Doucet, et al. v. Darwin Select Insurance Co., et al., No. 2016-1989, La. Sup., 2017 La. LEXIS 271).
Capacity Exclusion Bars Professional Liability Coverage, New York Panel Affirms
NEW YORK - A New York appeals panel on Feb. 2 affirmed a lower court's ruling in favor of a lawyers professional liability insurer in a dispute over coverage for underlying counterclaims against an insured for repudiation of a consulting agreement and legal malpractice (Law Offices of Zachary R. Greenhill P.C., et al. v. Liberty Insurance Underwriters, Inc., et al., No. 650414/14, N.Y. Sup., App. Div., 1st Dept., 2017 NY Slip Op 00727).
Judge Enters Default Judgment Against Lawyer In Professional Liability Dispute
NEWARK, N.J. - A New Jersey federal judge on Feb. 3 granted a lawyers professional liability insurer's motion for a default judgment against its attorney insured, finding that the insured knowingly made material misrepresentations on his insurance applications and that the insurer will also suffer prejudice if the default is denied (Liberty Insurance Underwriters, Inc. v. James H. Wolfe, III, et al., No. 16-2353, D. N.J., 2017 U.S. Dist. LEXIS 16295).
New York Panel: Insurer Does Not Owe Insured Directors, Officers Liability Coverage
BROOKLYN, N.Y. - A New York appeals panel on Feb. 1 found that an insurer has no duty to defend its insured under an insurance policy's directors and officers liability and entity liability coverage section, reversing a lower court's ruling against the insurer (Thomas C. Hansard, Jr. v Federal Insurance Co., No. 2014-09639, N.Y. Sup., App. Div., 2nd Dept., 2017 N.Y. App. Div. LEXIS 629).
Judge: Fraud Exclusion Permits Insurer To Pursue Coverage Suit Against Insured
WILMINGTON, Del. - A Delaware judge on Jan. 30 found that an insurance policy's fraud exclusion unambiguously permits the insurer to pursue a coverage action against its insured to determine its financial responsibilities to the insured, denying the insured's motion for summary judgment as to two of the insurer's counterclaims in a dispute arising from claims that the insured violated the False Claims Act (FCA) (Gallup Inc. v. Greenwich Insurance Co., No. N14C-02-136FWW, Del. Super., 2017 Del. Super. LEXIS 46).
Yahoo Sues Insurer Over Coverage Of Email Scanning Suits
SAN JOSE, Calif. - On Jan. 31, Yahoo! Inc. sued its commercial general liability (CGL) provider in California federal court, alleging breach of contract and bad faith related to the insurer's decision not to defend or indemnify the internet firm in four class actions alleging privacy violations in certain email-scanning practices (Yahoo! Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 5:17-cv-00489, N.D. Calif.).
Insureds Sufficiently Pleaded Claims Against Broker, Panel Says In Reversal
LOS ANGELES - A California appeals panel on Feb. 1 found that insureds have sufficiently pleaded claims for fraud, negligent misrepresentation, negligence and breach of contract against a surplus line insurance broker, reversing a lower court (A Plus Fabrics, Inc., et al. v. Yates & Associates Insurance Services, et al., No. B260767, Calif. App., 2nd Dist., Div. 3, 2017 Cal. App. Unpub. LEXIS 728).
New York Justice: Insured Failed To Raise Fact Issue As To Vandalism, No Coverage
NEW YORK - A New York justice on Jan. 20 granted a property insurer's motion for summary judgment in a coverage dispute arising from the insured's demolished building, finding that the insured failed to provide any evidence that the neighboring contractors acted with malice while the policy was in effect (Forty East Broadway v. Charter Oak Fire Ins. Co. et. al., No. 601072/09, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 221).
Maryland High Court: Insurer Failed To Show Late Notice Caused Actual Prejudice
ANNAPOLIS, Md. - The Maryland Court of Appeals on Jan. 27 affirmed the Court of Special Appeals' holding that a nonprofit insured did not cause actual prejudice to an insurer by providing late notice of a claims that it committed criminal acts in prosecuting a lawsuit against the owner of Ringling Brothers and Barnum & Bailey Circus (National Union Fire Insurance Company of Pittsburgh, Pa. v. The Fund for Animals Inc., No. 18, September Term, 2016, Md. App.; 2017 Md. LEXIS 63).
Judge: Insured Vs. Insured Exclusion Bars Directors, Officers Liability Coverage
MIAMI - A Florida federal judge on Jan. 30 found that a directors and officers liability insurance policy's insured vs. insured exclusion precludes coverage for underlying claims against a condominium association insured and one of its board of directors arising from the installation of hurricane impact windows and doors, granting the insurer's motion for judgment on the pleadings (The Marbella Condominium Association, et al. v. RSUI Indemnity Co., No. 16-80987, S.D. Fla., 2017 U.S. Dist. LEXIS 12363).
Judge: Receiver's Claims Not Brought 'On Behalf Of' Insured; Exclusion Inapplicable
PROVIDENCE, R.I. - A Rhode Island federal chief judge on Jan. 24 found that a directors and officers liability insurance policy's "insured vs. insured exclusion" does not bar coverage for underlying breach of fiduciary claims that a receiver brought against an insured's former directors, denying the insurer's motion for summary judgment (Philadelphia Indemnity Insurance Co. v. Providence Community Action Program Inc., et al., No. 15-388, D. R.I.; 2017 U.S. Dist. LEXIS 9345).
California High Court: Statutory Authority Supports Replacement Cost Regulation
SAN FRANCISCO - The Supreme Court of California on Jan. 23 held that statutory authority supports the California Insurance commissioner's 2011 regulation covering replacement cost estimates for homeowners insurance, reversing and remanding an appeals court's judgment that invalidated the regulation (Association of California Insurance Companies et al., v. Dave Jones, as commissioner, etc., No. S226529, Calif. Sup.; 2017 Cal. LEXIS 217).
Professional Service Exclusion Bars Coverage For Engineer, 6th Circuit Affirms
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Jan. 20 affirmed a lower federal court's ruling that a professional service policy exclusion bars coverage for underlying wrongful death and bodily injury lawsuits brought against an engineer (Orchard, Hiltz & Mccliment Inc. v. Phoenix Insurance Co., Nos. 16-1176, 16-1231, 6th Cir.; 2017 U.S. App. LEXIS 1089).
Federal Judge: No Coverage For Class Action Alleging Improper Overdraft Charges
INDIANAPOLIS - Because a financial institution insured's damages arose from improper overdraft charges and the fees that depositors incurred, they are excluded from coverage under its professional liability insurance policy, an Indiana federal judge ruled Jan. 26 (BancorpSouth Inc. v. Federal Insurance Co., No. 16-01871, S. D. Ind., 2017 U.S. Dist. LEXIS 10817).
Federal Judge: Claims That Insureds Negligently Repackaged Drugs Are Related
MIAMI - Claims that a pharmacy and its pharmacist were negligent in repackaging single-use syringes of Avastin and Lucentis are related and, as a result, are subject to the $1 million per-claim limit under two health care providers' professional liability insurance policies, a Florida federal judge found Jan. 26, granting the insurer's motion for summary judgment (American Casualty Company of Reading, Pennsylvania v. Samuel Belcher, et al., No. 16-80074, S.D. Fla., 2017 U.S. Dist. LEXIS 10908).
Judge Partly Grants Discovery Motion In Coverage Suit Over 'Sham' Investments
SEATTLE - A Washington federal judge on Jan. 25 granted in part an investment adviser's motion to compel discovery against a professional liability insurer in a coverage dispute arising from claims that the investment adviser misleadingly convinced a former client to invest in "sham" companies (Daeil Ro v. Everest Indemnity Insurance Co., et al, No. 16-0664, W.D. Wash.; 2017 U.S. Dist. LEXIS 11106).
Panel: Failure To Request Written Consent Before Settlement Negates Coverage
PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 19 found that a lower federal court properly applied California law in finding that a bank insured breached its professional liability insurance policy by failing to request or obtain the insurer's written consent before executing a settlement in an underlying mortgage loan dispute (OneWest Bank, FSB, v. Houston Casualty Co., No. 15-55579, 9th Cir.; 2017 U.S. App. LEXIS 993).
Judge: Factors Weigh In Favor Of Setting Aside Default Entered Against Attorney
NEWARK, N.J. - A New Jersey federal judge on Jan. 23 granted an attorney insured's motion to set aside a default entered against him in a dispute over professional liability coverage for underlying legal malpractice claims (Wesco Insurance Co. v. Michael S. Shuhala, et al., No. 16-2106, D. N.J.; 2017 U.S. Dist. LEXIS 8581).
Florida Panel: Court Erred In Allowing Prejudicial, Undisclosed Expert Testimony
DAYTONA BEACH, Fla. - Finding that a lower court erred in permitting a plaintiff to argue and present evidence that a doctor breached her duty of care by providing samples of the antibiotic Levaquin to a patient who later died of meningitis, a Florida appeals panel on Jan. 20 reversed the wrongful death medical malpractice dispute and remanded for a new trial (Doctors Company, et al. v. Nancy Plummer, individually and as personal representative of the estate of William Plummer, and on behalf of B.A.P. and L.J.P., minors, No. 5D15-1963, Fla. App., 5th Dist.).
Judge Denies Professional Liability Insurer's Motion To Bifurcate Bad Faith Claims
PHILADELPHIA - A Pennsylvania federal judge on Jan. 18 denied a professional liability insurer's request to sever a breach of contract claim from the statutory and common-law bad faith claims and stay the bad faith claims in a law firm insured's lawsuit seeking coverage for the costs it incurred in defending one of its attorneys against underlying criminal charges (Eizen Fineburg & McCarthy P.C. v. Ironshore Specialty Insurance Co., No. 16-2461, E.D. Pa.; 2017 U.S. Dist. LEXIS 6985).
Law Firm Asks 5th Circuit To Find For Excess Coverage Of Improper Billing Claims
NEW ORLEANS - A law firm insured has asked the Fifth Circuit U.S. Court of Appeals to reverse a lower federal court's finding that there is no coverage under an excess professional liability insurance policy for its losses arising from an underlying $46.5 million settlement over claims that it used improper billing practices (John M. O'Quinn, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 16-20224, 5th Cir.).
9th Circuit: Insurer Has Duty To Defend Against Product Disparagement Claims
PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 27 affirmed a lower federal court's judgment against an insurer on an insured's breach of contract and bad faith claims, finding that the insurer has a duty to defend its insured against two underlying product disparagement lawsuits brought by competitors (Millennium Laboratories, Inc. v. Darwin Select Insurance Co., No. 15-55227, 9th Cir., 2017 U.S. App. LEXIS 1533).
Coverage Barred For Trademark Infringement Dispute, Federal Judge Rules
CHARLOTTE, N.C. - Because an underlying complaint against a motorcycle helmet manufacturer insured contains no allegations distinct from the excluded trademark infringement claims, the manufacturer's insurers have no duty to defend, a North Carolina federal judge held Jan. 19 (Catlin Specialty Insurance Co. v. Tegol Inc., et al., No. 14-00607, W.D. N.C.; 2017 U.S. Dist. LEXIS 7565).
Eye Health Firm, Insurer Argue In 6th Circuit Over False Advertising Coverage
CINCINNATI - An eye health supplement maker and its insurer recently filed briefs in the Sixth Circuit U.S. Court of Appeals arguing whether a business liability policy provided coverage for false advertising claims brought against the insured by a competitor (Vitamin Health, Inc. v. Hartford Casualty Insurance Co., No.16-1724, 6th Cir.).
Excess Insurer Can Bring Bad Faith, Vexatious Refusal Claims, Judge Rules
KANSAS CITY, Mo. - A general liability insurance provider has failed to show that an excess insurer may not bring claims for bad faith failure to settle and vexatious refusal based on the same facts, a federal judge in Missouri ruled Jan. 23 in rejecting the general liability insurer's motion for partial summary judgment (AXIS Specialty Insurance Co. v. New Hampshire Insurance Co., No. 15-0809, W.D. Mo.; 2017 U.S. Dist. LEXIS 8554).
2nd Circuit: Insureds' Delay In Notifying Insurers Of Theft Claim Is Inexcusable
NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 19 found that insureds' delay in notifying their insurers of an alleged burglary was unreasonable and inexcusable, affirming a lower federal court's ruling in favor of the insurers in a breach of contract lawsuit (Nikolai Minasian, et al. v. IDS Property Casualty Insurance Co., et al., No. 16-80, 2nd Cir.).
Magistrate Recommends Ruling In Insurer's Favor In Dispute Over Civil Lawsuit
CENTRAL ISLIP, N.Y. - A New York federal magistrate judge on Jan. 19 issued a report recommending that summary judgment be granted in favor of a general liability insurer in an insured's declaratory judgment lawsuit seeking coverage for an underlying civil lawsuit (The Incorporated Village of Old Westbury v. American Alternative Insurance Corp., No. 15-07278, E.D. N.Y.; 2017 U.S. Dist. LEXIS 8428).
Insurer Says No Defense Owed For Defective Mattress Class Action Complaint
SAN FRANCISCO - A California federal judge erred in finding that an insurer has a duty to defend its insured against an underlying consumer class action lawsuit alleging that the insured's mattresses were defective because the underlying suit does not allege any claims for bodily injury or property damage, the insurer argues in a Jan, 17 brief filed in the Ninth Circuit U.S. Court of Appeals (Hartford Fire Insurance Co. v. Tempur-Sealy International Inc., et al., No. 16-16056, 9th Cir.).
Hazing Exclusion Bars Coverage, Federal Judge Rules In Dispute Between Insurers
FLORENCE, S.C. - A South Carolina federal judge on Jan. 25 ruled that a hazing exclusion precludes commercial general liability insurance coverage for an underlying $1.6 million judgment against the vice president of the local alumni chapter of a fraternity (State Farm Fire and Casualty Co., et al. v. Admiral Insurance Co., No. 15-2745, D. S.C.; 2017 U.S. Dist. LEXIS 1007).
New York Justice Dismisses Fraud Claim Against Broker In $21.6M Art Theft Dispute
NEW YORK - A New York justice on Jan. 23 granted an insurance broker's motion to dismiss an insured's fraud claim against it, finding that the claim is time-barred, fails to state a claim and is barred by collateral estoppel (Renaissance Art Investors LLC v. North Shore Risk Management LLC, No. 162670/14, N.Y. Sup., New York Co.; 2017 N.Y. Misc. LEXIS 225).
Judge Signs Protective Order Governing Production Of Discovery In Qui Tam Suit
CAMDEN, N.J. - A New Jersey federal magistrate on Dec. 28 found that there is good cause for the issuance of a protective order that would govern the production of discovery by or on behalf of the Centers for Medicare and Medicaid Services (CMS) in all phases of a qui tam lawsuit brought against insurers under the federal and New Jersey false claims acts (United States of America and the State of New Jersey, ex rel. Elizabeth Negron v. Progressive Casualty Insurance Co., et al., No. 14-577, D. N.J.).
Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two members of its board of directors by a former board member and her two daughters (Jerry's Enterprises, Inc. v. U.S. Specialty Insurance Co., No. 15-3324, 8th Cir.; 2017 U.S. App. LEXIS 475).
Directors, Officers Policy Does Not Cover FDIC's Claims, Majority Says, Reverses
PASADENA, Calif. - A majority of the Ninth Circuit U.S. Court of Appeals on Jan. 10 found that a directors and officers liability insurance policy unambiguously excludes from coverage the Federal Deposit Insurance Corp.'s negligence, gross negligence and breach of fiduciary duty claims against a failed bank's former directors and officers, reversing and remanding a lower court (Federal Deposit Insurance Corporation, as Receiver for Security Pacific Bank v. BancInsure, Inc., No. 14-56132, 9th Cir.; 2017 U.S. App. LEXIS 452).
Federal Investigation Is Single Claim; Exclusions Apply, Insurer Tells 9th Circuit
SAN FRANCISCO - A health care organization's directors and officers liability insurer has responded to an insured's appeal asking the Ninth Circuit U.S. Court of Appeals to reverse or "at the very least" remand a lower federal court's finding in favor of the insurer in a coverage dispute arising from an underlying investigation brought by the U.S. Department of Justice (Millennium Laboratories, Inc. v. Allied World Insurance Company [U.S.], Inc., No. 16-55432, 9th Cir.).
Panel: Insurer Entitled To Recoupment Of Costs Defending Trade Secret Dispute
SAN FRANCISCO - A California appeals panel on Jan. 10 affirmed a lower court's grant of summary judgment in favor of an insurer seeking recoupment of the costs it incurred in defending its agents against claims it brought against the agents involving trade secrets (State Farm Fire And Casualty Co. v. Richard Pyorre, No. A147302, Calif. App., 1st Dist., Div. 1).
Judge: Negligent Misrepresentation Claims Barred By Quality Of Services Exclusion
FORT MYERS, Fla. - A Florida federal judge on Jan. 13 entered judgment in favor of an insurer one day after finding that underlying negligent misrepresentation claims against its insured are "for or arising out of or resulting from" the failure of the insured's auction services to conform with a represented quality of performance contained in its advertising (Equipmentfacts LLC v. Beazley Insurance Co., Inc., No: 16-265, M.D. Fla.; 2017 U.S. Dist. LEXIS 4653).
Federal Judge: Recovery Sought Does Not Fall Under Policy's 'Definition Of Damages'
CHICAGO - An Illinois federal judge on Jan. 5 held that a professional liability insurer has no duty to defend or indemnify against an underlying complaint alleging that the insureds misrepresented important data that an insurer used to calculate premiums (Westport Insurance Corp. v. M.L. Sullivan Insurance Agency Inc., d/b/a Sullivan & Associates Insurance and Risk Management, et al., No. 15-7294, N.D. Ill., Eastern Div.; 2017 U.S. Dist. LEXIS 1527).
Majority: No Coverage For Legal Expenses Incurred Without Insurer's Approval
ATLANTA - A majority of the 11th Circuit U.S. Court of Appeals ruled Jan. 9 that an insurer has no duty to pay an insured's $405,989 in pre-tender legal expenses incurred in defending a copyright infringement lawsuit, affirming a lower court's finding that Florida's claims administration statute (CAS) does not control because the insurer relied on an exclusion and not a coverage defense in its refusal to pay the expenses (EmbroidMe.com, Inc. v. Travelers Property Casualty Company of America, No. 14-10616, 11th Cir.; 2017 U.S. App. LEXIS 368).
Plaintiff Not Owed Coverage As Additional Insured, 9th Circuit Affirms
PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower federal court's ruling in favor of an insurer in a breach of contract lawsuit seeking coverage for property and business interruption losses (Bita Trading Inc. v. Nationwide Mutual Insurance Co., et al., No. 15-55371, 9th Cir.; 2017 U.S. App. LEXIS 521).
Rescission Of Product Contamination Policy Was Proper, 3rd Circuit Says
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 11 affirmed that an insurer was entitled to rescind a product contamination insurance policy because it is clear that the insured made an intentional misrepresentation on the policy application upon which the insurer relied before issuing the policy (H.J. Heinz Co. v. Starr Surplus Lines Insurance Co., No. 16-1447, 3rd Cir.).
'Damage To Your Product' Exclusion Bars Coverage, Arkansas Panel Affirms
LITTLE ROCK, Ark. - An Arkansas appellate panel on Dec. 7 affirmed a lower court's ruling that a commercial general liability insurance policy's "damage to your product" exclusion bars coverage for underlying claims that an insured's flooring products and services were defective (S.E. Arnold and Company, Inc. d/b/a Arnold's Flooring America v. Cincinnati Insurance Co., No. 16-73, Ark. App., Div. 3; 2016 Ark. App. LEXIS 625).
3rd Circuit Affirms Dismissal Of Unjust Enrichment Claim Against Insurer
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 9 affirmed a lower federal court's dismissal with prejudice of an unjust enrichment claim against an insurer, finding that the complaint fails to allege that the insurer requested a benefit from the plaintiff or misled it in any way (iRecycleNow.com v. Starr Indemnity & Liability Co., No. 16-1570, 3rd Cir.; 2017 U.S. App. LEXIS 333).
Judge: Plaintiff Lacks Standing, Preempted From Pursuing Racketeering Claim
NORFOLK, Va. - A Virginia federal judge on Jan. 3 held that a restoration company has no standing to pursue a claim under the Racketeer Influenced and Corrupt Organizations Act, further finding that the National Flood Insurance Act (NFIA) preempts the company from pursuing its lawsuit against a federal flood insurer and seven other defendants (Slay's Restoration LLC v. Wright National Flood Insurance Co., No. 15-140, E.D. Va.; 2017 U.S. Dist. LEXIS 1490).
New Jersey Judge: Insurer Has Discretion To Exhaust $2M Policy Limit In Good Faith
NEWARK, N.J. - A New Jersey judge on Nov. 18 held that a general liability insurer has the discretion to exhaust its $2 million policy limit in good faith to settle underlying claims against one of its insureds even if the settlement does not resolve the claims against its other insureds, granting the insurer's motion for summary judgment (National Surety Corp. v. First Specialty Insurance Corp., No. L-3983-16, N.J. Super., Essex Co.).
Engineer Asks 6th Circuit To Grant It Coverage For Wrongful Death Lawsuit
CINCINNATI - An engineer seeking coverage for an underlying wrongful death lawsuit has asked the Sixth Circuit U.S. Court of Appeals to find that a lower federal court erred in interpreting a commercial general liability insurance policy's additional insured endorsement and by broadly applying the "professional service" exclusion to bar coverage (Orchard, Hiltz & McCliment Inc. v. Phoenix Insurance Co., et al, Nos. 16-1231 and 16-1176, 6th Cir.).