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Preview: LexisNexis® Mealey's™ Insurance Bad Faith Legal News

LexisNexis® Mealey's™ Insurance Bad Faith Legal News



Headline Insurance Bad Faith Legal News from LexisNexis®



 



Judge Denies Insurer's Summary Judgment Motion In Bad Faith Suit
OMAHA, Neb. - An insurer has failed to show any lack of a material dispute of genuine fact supporting its motion for summary judgment on an insurance bad faith claim in a homeowners insurance dispute, a federal judge in Nebraska ruled March 30 in denying the motion (Eric D. Hayes v. Metropolitan Property & Casualty Insurance Co., No. 14-339, D. Neb., 2017 U.S. Dist. LEXIS 47848).



Insured Failed To State A Viable Bad Faith Claim, Federal Judge Rules
PHILADELPHIA - An insured's insurance breach of contract and statutory bad faith lawsuit against its insurer was untimely filed pursuant to the policy's limitations period, and the insured failed to state a claim upon which relief could be granted for bad faith, a federal judge in Pennsylvania ruled March 30 in granting the insurer's motion for judgment on the pleadings (Michael Long v. Farmers New Century Insurance Co., No. 15-6724, E.D. Pa., 2017 U.S. Dist. LEXIS 47552).



Lack Of Insurance Bad Faith Evidence Leads To Dismissal In Coverage Dispute
CAMDEN, N.J. - Insureds have failed to provide sufficient evidence to show that their homeowners insurance provider acted in bad faith in denying their claim for coverage, a federal judge in New Jersey ruled April 3 in granting the insurer's motion to dismiss (William Williams, et al. v. State Farm Fire & Casualty Insurance Co., No. 16-9028, D. N.J., 2017 U.S. Dist. LEXIS 50261).



Magistrate Rules On Discovery Motions In Bad Faith Dispute Over Vandalism Claim
SEATTLE - A Washington federal magistrate judge on March 24 granted in part an insurer's motion for a protective order and denied in part insureds' motion to compel production of documents in a bad faith lawsuit arising from the insureds' $185,000 claim for vandalism damage (Stay@Home Design LLC, et al. v. Foremost Insurance Company Grand Rapids, Michigan, No. 16-1673, W.D. Wash., 2017 U.S. Dist. LEXIS 44734).



Judge: Bifurcation Won't Result In Quicker Resolution Of Claims In Bad Faith Suit
ALBUQUERQUE, N.M. - Bifurcation and a stay of all noncontractual claims in an insurance breach of contract and bad faith lawsuit is not proper because bifurcation would not result in a "more expeditious resolution" of the action, a federal judge in New Mexico ruled March 27 in denying an insurer's motion to bifurcate (Theresa Martinez v. State Farm Mutual Automobile Insurance Co., No. 16-1029, D. N.M., 2017 U.S. Dist. LEXIS 44277).



Judge: Prejudgment Interest Denied; Material Issue Remains On Bad Faith Claim
BROOKLYN, N.Y. - A judge in the U.S. District Court for the Eastern District of New York on March 31 ruled that an insurer was not obligated to pay prejudgment interest in excess of policy limits on two underlying auto accident claims that were consolidated, but denied the insurer's request for a finding that it acted in good faith on grounds that conflicting evidence presented by the parties "gives rise to a genuine dispute of material fact" (Government Employees Insurance Company v. Diane Saco, et al., No. 12-5633 and Suzanne Kusulas, et al. v. Government Employees Insurance Company, No. 15-634, E.D. N.Y.; 2017 U.S. Dist. LEXIS 49366).



Court Finds Uninsured Motorist Case Did Not Prevent Bad Faith Claim
SEATTLE - A Washington state court on March 28 reversed a trial court's decision that granted summary judgment for an insurer on an insurer's bad faith claim in relation to a coverage suit, finding that a previous action seeking uninsured motorist coverage did not preclude her from filing a bad faith action (Anastasia Forston-Kemmerer v. Allstate Insurance Co., No. 34640-4-III, Wash. App., Div. 3, 2017 Wash. App. LEXIS 739).



Wrongly Disclosed Materials To Be Returned In Bad Faith Case; Counsel Disqualified
ORLANDO, Fla. - A Florida federal judge on March 30 found that privileged attorney communications were mistakenly submitted in response to an insurer's discovery request in an insurance bad faith lawsuit, leading the judge to affirm a magistrate's order compelling the documents' return to the plaintiff (Nadine Walker v. GEICO Indemnity Co., No. 6:15-cv-01002, M.D. Fla., 2017 U.S. Dist. LEXIS 47670).



New Mexico Federal Judge Says Bad Faith, Breach Of Contract Claims Can Stand
ALBUQUERQUE, N.M. - A New Mexico federal judge on March 29 denied a motion for partial judgment on the pleadings filed by insurers in a hail damage and theft coverage dispute after determining that the insured alleged sufficient facts in support of claims for breach of contract and bad faith (Sedillo Electric, et al. v. Colorado Casualty Insurance Co., et al., Nos. 15-1172, 16-43, D. N.M., 2017 U.S. Dist. LEXIS 46442).



Insured's Misrepresentation Defeats Coverage, Bad Faith Claim, Judge Rules
BALTIMORE - Finding that a policyholder was bound by a material misrepresentation made by its insurance broker on a policy application, a Maryland federal judge on March 27 held that an insurer was entitled to rescind the policy, defeating the insured's breach of contract and bad faith claims (Dominant Investments 113 LLC v. United States Liability Insurance Co., No.1:16-cv-03081, D. Md., 2017 U.S. Dist. LEXIS 44008).



Federal Judge: Excess Insurer Has No Duty To Defend, Indemnify Manufacturer
EVANSVILLE, Ind. - An Indiana federal judge on March 22 ruled in favor of an excess insurer in a manufacturer insured's breach of contract and bad faith lawsuit seeking coverage for an underlying lawsuit alleging claims for breach of contract, breach of express warranty, breach of implied warranty of fitness for a particular purpose, breach of implied warranty of merchantability and negligence (Berry Plastics Corporation v. Illinois National Insurance Co., No. 15-00170, S.D. Ind., 2017 U.S. Dist. LEXIS 41546).



Loss Of Boats Was Not Theft, Judge Finds In Ruling For Insurer
FRESNO, Calif. - An insurer did not breach a boat business' all-risk policy in bad faith by denying coverage for a theft claim because the evidence at trial showed that the loss of the business' boat inventory was not the result of theft but rather a family's asset transfer scheme gone awry, a California federal judge held March 31 (Pacific Marine Center, Inc. v. Philadelphia Indemnity Insurance Company, No. 1:13-cv-00992, E.D. Calif., 2017 U.S. Dist. LEXIS 49637).



9th Circuit Affirms $6.1M Judgment In Favor Of Insured In Dispute With Excess Insurer
PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on March 21 affirmed a lower federal court's $6,080,568 judgment in favor of an insured in a breach of contract and bad faith lawsuit against its excess general liability insurer arising from an underlying patent infringement dispute (Teleflex Medical Incorporated v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 14-56366, 9th Cir., 2017 U.S. App. LEXIS 4996).



Implied Covenant Of Good Faith Out In Indemnification Lawsuit For Worker's Injury
ROCHESTER, N.Y. - A New York federal judge on March 15 dismissed a claim of breach of implied covenant of good faith and fair dealing in a dispute over who pays for injuries to a construction subcontractor employee (Nazareth College of Rochester, et al. v. Harleysville Preferred Insurance Co., No. 16-6418, W.D. N.Y., 2017 U.S. Dist. LEXIS 37050).



Federal Judge Orders Forty Niners' Insurer To Equally Contribute To Defense
SAN JOSE, Calif. - A California federal judge on March 14 found that San Francisco Forty Niners Football Co.'s primary commercial general liability insurer has a duty to contribute by equal shares with another insurer to defense costs in an underlying lawsuit against the football team and others (First Mercury Insurance Co. v. Great Divide Insurance Co., No. 16-02114, N.D. Calif., 2017 U.S. Dist. LEXIS 36501).



Judge: Insurer Breached Duty To Defend, Indemnify Construction Suit Settlement
ANCHORAGE, Alaska - An insurer breached its duty to defend and indemnify an insured for a settlement of underlying claims arising out of a breach of contract dispute on a construction project, an Alaska federal judge ruled March 16; however, the judge held that the insurer did not breach its duty of good faith (KICC-Alcan General, joint venture v. Crum & Forster Specialty Insurance Company Inc., No. 15-00255, D. Ala., 2017 U.S. Dist. LEXIS 37560).



Judge: Jury Instructions Not Needed To Properly State Law In Bad Faith Suit
ATLANTA - A federal district court did not abuse its discretion in denying a third party's proposed jury instructions in an insurance bad faith lawsuit because the proposed instructions were not necessary "to correctly state the law," an 11th Circuit U.S. Court of Appeals panel ruled March 17 in affirming (Douglas Stalley v. Allstate Insurance Co., et al., No. 16-14816, 11th Cir., 2017 U.S. App. LEXIS 4734).



Other Insurer's Claims Handling Not Relevant In Bad Faith Suit, Judge Rules
TAMPA, Fla. - Reconsideration of a federal district court's ruling to grant an insurer a new trial in an insurance bad faith lawsuit is not warranted because an insured's reference to another insurer's claims handling for a bodily injury claim was not relevant and not properly considered by a jury, a federal judge in Florida ruled March 13 in denying the insured's motion for reconsideration (Joshua Moore v. GEICO General Insurance Co., No. 13-1569, M.D. Fla., 2017 U.S. Dist. LEXIS 35136).



No UIM Coverage For Pedestrian Injury Under Antique Car Policy, Magistrate Rules
PITTSBURGH - An auto insurer properly denied underinsured motorist (UIM) coverage to a policyholder injured while a pedestrian, a Pennsylvania federal magistrate judge ruled March 13, finding that the antique auto policy limited UIM coverage to vehicle occupants in compliance with state law (John Bish, et al. v. American Collectors Insurance Inc., et al., No. 2:16-cv-01434, W.D. Pa., 2017 U.S. Dist. LEXIS 35205).



Federal Judge Says Claims Arising From Conduct Prior To Earlier Lawsuit Are Barred
LAS VEGAS - An insured's bad faith claims stemming from an insurer's conduct that occurred prior to the insured's filing of a previous lawsuit are precluded, but claims arising from the insurer's conduct that occurred after the first lawsuit was filed are not precluded, a Nevada federal judge said March 17 (Rosalind Searcy v. Esurance Insurance Co., No. 15-47, D. Nev., 2017 U.S. Dist. LEXIS 38705).



Judge: Insureds Point To Series Of Improper Acts In Making Bad Faith Claim
NEW HAVEN, Conn. - Insureds properly stated a claim for bad faith against their homeowners insurance provider for its denial of a claim for coverage due to policy exclusions because the insureds have pleaded a series of improper acts by the insurer in the handling of the claim, a federal judge in Connecticut ruled March 20 in denying the insurer's motion to dismiss (Justyn Cyr, et al. v. CSAA Fire & Casualty Insurance Co., No. 16-085, D. Conn., 2017 U.S. Dist. LEXIS 39387).



Judge Finds Dismissal Of Couple's Claim Does Not Establish Unfair Practices
NEW HAVEN, Conn. - A federal judge in Connecticut on March 17 dismissed a couple's claim that their insurer engaged in unfair and deceptive practices in violation of the Connecticut Unfair Insurance Practices Act (CUIPA) and the Connecticut Unfair Trade Practices Act (CUTPA) when denying their claim for concrete decay in their basement, finding that the plaintiffs did not show that the company practiced a pattern of denying similar claims (Kenneth T. Courteau, et al. v. Teachers Insurance Company, No. 16-cv-580, D. Conn., 2017 U.S. Dist. LEXIS 38434).



Court Remands Issue On Depreciation Rate, Affirms Dismissal Of Bad Faith Claim
HARRISBURG, Pa. - After finding that a genuine issue of fact exists as to the value of a property destroyed by a fire, a Pennsylvania court on March 10 reversed a portion of a trial court's ruling for an insurer but affirmed a finding that the insurer did not act in bad faith when it denied the insureds certain coverage under the policy (Sabrina Brown v. Everett Cash Mutual Insurance Co., et al., No. 1549 WDA 2015, Pa. Super., 2017 Pa. Super. LEXIS 161).



Claims Barred By Statute Of Limitations, Nevada Federal Judge Determines
LAS VEGAS - A Nevada federal judge on March 8 determined that insureds seeking coverage for a water damage claim cannot allege claims for bad faith, unfair claims practices and intentional infliction of emotional distress against their insurer because the claims are barred by the applicable statute of limitations (Maxwell B. Williams, et al. v. The Travelers Home and Marine Insurance Co., et al., No. 16-1856, D. Nev., 2017 U.S. Dist. LEXIS 33954).



Insureds Failed To Prove Bad Faith Claim, Delaware Supreme Court Concludes
WILMINGTON, Del. - Insureds failed to establish evidence that their insurer did not have a reasonable justification for denying their claim for water damage from a broken toilet to their condominium unit, the Delaware Supreme Court ruled March 13, affirming a directed verdict to the insurer on a bad faith claim (Debra Bennett and William Bennett v. USAA Casualty Insurance Co., No. S10C-02-010, Del. Sup.; 2017 Del. LEXIS 105).



Florida Federal Magistrate Judge Abates Bad Faith Claim, Says Claim Is Premature
MIAMI - A Florida federal magistrate judge on March 13 abated a plaintiff's bad faith claim on the basis that the bad faith claim is premature and cannot be adjudicated until after there has been a determination that the insurer breached its contract of insurance (Southeast Distributors Inc. v. United Specialty Insurance Co., No. 16-24549, S.D. Fla., 2017 U.S. Dist. LEXIS 35453).



Judge Denies Insured's Remand Motion In Insurance Bad Faith Suit
COLUMBUS, Ohio - Remand of an insurance breach of contract and bad faith lawsuit to state court is not proper because the amount in controversy exceeds the statutory limit, a federal judge in Ohio ruled March 13 (Leslie Wyatt v. New England Mutual Life Insurance Co., et al., No. 17-40, S.D. Ohio, 2017 U.S. Dist. LEXIS 35504).



Judge: Coverage For Negligence In Performing Insurance Services Was Not Triggered
LOS ANGELES - A California federal judge on March 17 dismissed without prejudice a breach of contract and bad faith lawsuit against a professional liability insurer in a coverage dispute arising from the insured's alleged breach of a loan agreement (GemCap Lending, LLC v. Scottsdale Indemnity Co., et al., No. 15-09942, C.D. Calif., 2017 U.S. Dist. LEXIS 38931).



Panel Reverses District Court's Summary Judgment Ruling In Bad Faith Suit
SAN FRANCISCO - A federal district court erred in granting a third party's motion for summary judgment on her breach of the implied duty to settle claim in an insurance bad faith and breach of contract lawsuit because no reasonable jury could conclude that the insurer "unreasonably failed to accept" the third party's offer to settle, a Ninth Circuit U.S. Court of Appeals panel ruled March 7 in reversing (Amy J. McDaniel v. Government Employees Insurance Co., No. 14-17203, 9th Cir., 2017 U.S. App. LEXIS 4029).



Judge: Insured Failed To Show That Insurer's Dispute Of Claim Was In Bad Faith
JACKSON, Miss. - Dismissal of a bad faith claim and request for punitive damages in an insurance breach of contract and bad faith lawsuit is proper because an insurer never denied an insured's claim for uninsured motorist benefits, and there was no evidence that it acted in bad faith in disputing the claim, a federal judge in Mississippi ruled Feb. 27 in granting the insurer's motion for partial summary judgment (Jacob Ladner v. GEICO Indemnity Co., No. 16-0197, S.D. Miss., 2017 U.S. Dist. LEXIS 27158).



Insurer In Bad Faith Suit Failed To Respond To Demand Letters, Judge Rules
SEATTLE - Based on the evidence presented, a jury could determine that an insurer acted in bad faith in its handling of an automobile insurance claim because a third-party claimant has shown that the insurer failed to respond to his policy-limit demand letters, a federal judge in Washington ruled March 6 in denying the insurer's motion for partial summary judgment (Anthony W. Hopkins v. State Farm Automobile Insurance Co., No. 15-2014, W.D. Wash., 2017 U.S. Dist. LEXIS 31451).



Joining Tort Claimant In Insurance Dispute Necessary, Judge Rules
JEFFERSON CITY, Mo. - Joining a tort claimant in an insurance dispute as a counterclaim defendant is proper because his absence in the proceedings would mean that a federal district court would not be able to accord complete relief among the existing parties, a federal judge in Missouri ruled March 1 in granting an insurer's motion to join (Nathaniel Straub v. Progressive Preferred Insurance Co., No. 17-4022, W.D. Mo., 2017 U.S. Dist. LEXIS 28463).



Federal Judge Refuses To Dismiss Bad Faith, Breach Of Contract Claims In UM Dispute
GREENVILLE, S.C. - A South Carolina federal judge on March 3 denied an insurer's motion to dismiss breach of contract and bad faith claims in a dispute over uninsured motorist (UM) coverage for an underlying car accident (Bobby Lee Tucker Sr. v. Peerless Insurance Co., No. 13-1809, D. S.C., 2017 U.S. Dist. LEXIS 30104).



Parties Debate Whether Insurer Acted In Bad Faith In Not Accepting Demand Letter
ATLANTA - Parties in an insurance bad faith lawsuit recently asked the 11th Circuit U.S. Court of Appeals to determine whether a federal district court erred in finding that an insurer acted in bad faith by not accepting the terms of claimants' time-limited demand letter seeking the policy limits under its insured's automobile insurance policy in exchange for a limited release of claims against the insured (Jesus Camacho, et al. v. Nationwide Mutual Insurance Co., No. 16-14225, 11th Cir.).



Insurer's Investigation Did Not Amount To Bad Faith, Federal Judge Says
OKLAHOMA CITY - An insurer conducted a reasonable investigation in adjusting an insured's property claim following a tornado, an Oklahoma federal judge ruled March 8, granting summary judgment to the insurer on a bad faith claim (Shanta Inc. d/b/a Green Carpet Inn v. Nautilus Insurance Co., No. 15-872, W.D. Okla.; 2017 U.S. Dist. LEXIS 32702).



7th Circuit Finds $5M Theft Was Not Covered Under 2 Policies
CHICAGO - The Seventh Circuit U.S. Court of Appeals on March 9 affirmed a district court's decision to grant judgment for insurers, finding that theft by a former vice president of a telecommunications firm was not covered under insurance policies and that the insurers did not act in bad faith (Telamon Corp. v. Charter Oak Fire Insurance Co., et al., Nos. 16-1205 and 16-1815, 7th Cir., 2017 U.S. App. LEXIS 4207).



9th Circuit: Business Risk Exclusions Bar Coverage For Construction Defects Suit
SAN FRANCISCO - Two business risk exclusions found in a commercial general liability (CGL) insurance policy bar coverage for a construction defects lawsuit, the Ninth Circuit U.S. Court of Appeals held March 2, affirming summary judgment to an insurer on breach of contract and bad faith claims (Archer Western Contractors Ltd. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 15-55648, 9th Cir.; 2017 U.S. App. LEXIS 3796).



Judge Dismisses Breach Of Covenant Of Good Faith Claim As Redundant
NEW YORK - A federal judge in New York on Feb. 27 dismissed an alleged insured's breach of the covenant of good faith claim because it is redundant to a breach of contract claim (JD2 Environmental, Inc. v. Endurance American Insurance Company, No. 14-cv-8888, S.D. N.Y., 2017 U.S. Dist. LEXIS 26977).



Federal Judge: Fact Issues As To Economic Damages Defeat Summary Judgment
DENVER - A Colorado federal judge on Feb. 16 held that there are genuine issues of material fact as to what $125,000 in economic damages awarded against an insured encompasses, denying an insurer's motion for summary judgment in part in a dispute over commercial general liability coverage (Peerless Indemnity Insurance Co. v. Shane Colclasure, individually and d/b/a Sunrise Buildings, et al., No. 16-424, D. Colo., 2017 U.S. Dist. LEXIS 22193



Judge Remands Case For Insurers' Failure To Get Unanimous Agreement
CHARLESTON, S.C. - Two insurers failed to satisfy the "rule of unanimity" requirement by including a third insurer when removing a breach of contract and bad faith dispute over coverage for a construction defect lawsuit, a South Carolina federal judge ruled Feb. 23, remanding the case due to a defective removal notice (Baker Roofing Co. v. American Guarantee and Liability Insurance Co., et al., No. 16-3776, D. S.C.; 2017 U.S. Dist. LEXIS 25144).



Texas High Court Reverses Ruling That Insured Vs. Insured Exclusion Is Inapplicable
AUSTIN, Texas - The Texas Supreme Court on Feb. 24 found that an appeals court majority incorrectly interpreted the plain language of an insured vs. insured exclusion in a directors and officers liability insurance policy, reversing the majority's ruling against the insurer (Great American Insurance Co. v. Robert Primo, No. 15-0317, Texas Sup., 2017 Tex. LEXIS 212).



Judge: Insurer Properly Relied On 'Maintenance' Exclusion To Bar Coverage
PHILADELPHIA - Evidence supported an insurer's reliance on a "maintenance" exclusion to deny coverage for water damage caused by an insured's failure to maintain his furnace, the Third Circuit U.S. Court of Appeals ruled March 6, affirming summary judgment in favor of the insurer on breach of contract and bad faith claims handling (David Dougherty v. Allstate Property and Casualty Insurance Co., No. 16-2680, 3rd Cir.; 2017 U.S. App. LEXIS 3930).



Judge Remands Suit After Finding Man Can Pursue Claims Against Agent
ABERDEEN, Miss. - A Mississippi man's lawsuit contains sufficient allegations to state claims that an insurance agent acted negligently when responding to a claim the plaintiff submitted to his insurer for smoke damage to his home, a federal judge in Mississippi ruled Feb. 27 in remanding the action to state court (Leon Brandon v. Shelter Mutual Insurance Company, et al., No. 16-cv-00141-GHD-DAS, N.D. Miss., 2017 U.S. Dist. LEXIS 28117).



Judge: Insured Failed To Show Insurer's Investigation Of Claim Was In Bad Faith
PITTSBURGH - An insured has failed to show that his insurer's offer to settle his homeowners insurance claim "lacked a reasonable basis" or that the settlement offer "was not supported by a thorough and even-handed investigation," a federal judge in Pennsylvania ruled March 2 in granting the insurer's motion to dismiss with prejudice (Randy Gowton v. State Farm Fire and Casualty Co., et al., No. 15-1164, W.D. Pa., 2017 U.S. Dist. LEXIS 29390).



Oregon Appeals Court Affirms Ruling Finding Couple's Bad Faith Suit Untimely
SALEM, Ore. - An insurance company's investigation into an insured couple's claims for a theft that occurred on their property did not toll the two-year statute of limitations on claims for breach of contract and breach of the implied covenant of good faith and fair dealing, an Oregon Court of Appeals panel ruled March 1, finding that the insurer expressly stated in letters to the couple that it was not waiving the limitation provision in the insurance contract (Jack Brockway, et al. v. Allstate Property and Casualty Insurance Company, No. A155335, Ore. App., 2017 Ore. App. LEXIS 283).



Anti-Concurrent Causation Clause Precludes Coverage For Water Damages, Panel Says
TOLEDO, Ohio - A trial court did not err in granting summary judgment in favor of an insurer because it is clear that the policy's anti-concurrent causation clause precluded the insureds' claim for water damages, the Sixth District Ohio Court of Appeals said Feb. 24 (Chad Hartman, et al. v. Erie Insurance Co., No. WD-16-022, Ohio App., 6th Dist., 2017 Ohio App. LEXIS 666).



Texas Federal Judge Allows Insureds' Breach Of Contract Claim To Move Forward
DALLAS - A Texas federal judge on March 6 determined that an insurer is not entitled to summary judgment on its insureds' breach of contract claim because genuine issues of fact exist regarding whether the insureds suffered a direct financial loss and the extent of any damage caused when the insureds' washing machine overflowed (Corrine Michel Johnson, et al. v. Safeco Insurance Company of Indiana, No. 15-1939, N.D. Texas, 2017 U.S. Dist. LEXIS 30997).



Panel Upholds Breach Of Contract Award, Reverses Bad Faith Awards Against Insurer
BEAUMONT, Texas - A Texas appeals panel on March 9 affirmed a jury's $15,000 award for breach of contract damages but reversed the jury's $20,000 award of actual damages that resulted from an insurer's alleged unfair settlement practices and the jury's award of additional damages of $60,000 that resulted from the finding that the insurer knowingly engaged in unfair settlement practices, rendering judgment that an insured take nothing as to the claims (State Farm Lloyds v. Dennis Webb, No. 09-15-00408-CV, Texas App., 9th Dist.; 2017 Tex. App. LEXIS 1997).



Judge Finds No Facts To Support Kentucky Law Claims Against Insurer
LOUISVILLE, Ky.- A Kentucky federal judge on March 1 held that claims for bad faith and fraud related to coverage under an insurance policy for tornado damage should be dismissed, finding that the insured failed to assert facts to support a claim for violation of the Kentucky Unfair Claims Settlement Practices Act (KUCSPA) (Frasure v. State Farm Fire & Casualty Co., No. 16-540, W.D. Ky., 2017 U.S. Dist. LEXIS 28753).



Federal Judge Says Ruling On Bad Faith Counterclaim Would Be Premature
HUNTINGTON, W.Va. - A West Virginia federal judge on Feb. 28 denied an insurer's motion for summary judgment on a bad faith counterclaim in a dispute over a sunken barge after determining that a ruling on the bad faith counterclaim would be premature (Essex Insurance Co. v. Schooner's Bar & Grill Inc. et al., No. 15-15881, S.D. W.Va., 2017 U.S. Dist. LEXIS 27540).



RICO Violations Found In Annuity Fraud Case; Counterclaims Dismissed
PROVIDENCE, R.I. - Admissions made by two plaintiffs in their respective plea deals amount to findings of liability on claims under the Racketeer Influenced and Corrupt Organizations Act and a state civil penalties law in a consolidated suit over annuity fraud conspiracy, a Rhode Island federal judge ruled Feb. 27, granting partial summary judgment to the plaintiff insurance firms (Transamerica Life Insurance Co., et al. v. Joseph Caramadre, et al., No. 1:09-cv-00470, D. R.I., 2017 U.S. Dist. LEXIS 27150).



Negligent Work Exclusion Bars Coverage For Water Damage, Pennsylvania Court Says
PHILADELPHIA - The Pennsylvania Superior Court on Feb. 28 held that although the lower court erred in finding that "surface water" caused the insured's damage, it did not err in finding that the policy's "negligent work exclusion" precluded coverage for the water damage (The Ridgewood Group, LLC v. Millers Capital Insurance Co., No. 1138 EDA 2016, Pa. Super., 2017 Pa. Super. Unpub. LEXIS 764).