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Mealey's California Insurance

  • March 30, 2026

    Insurer Says No Coverage Owed For Underlying Silica Exposure Lawsuits

    LOS ANGELES — No coverage is owed to an insured for underlying bodily injury lawsuits stemming from exposure to silica dust created by the cutting of stone countertops because the claims alleged in the underlying suits are barred by the policies’ employer’s liability exclusion and pollution exclusion, the insurer says in a complaint filed in California federal court.

  • March 27, 2026

    Homeowners Sue California FAIR Plan Association Over Wildfire Claim Handling

    LOS ANGELES — Joining a wave of lawsuits alleging that the California FAIR Plan Association (CFPA) improperly processes wildfire-related property insurance claims related to the 2025 Eaton and Palisades wildfires, two individuals who own a residential property filed a complaint in a California state court alleging that CFPA underpaid and mishandled their claim through unlawful claims practices.

  • March 24, 2026

    Coverage Suit Arising From Tubbs Fire Was Not Timely Filed, 9th Circuit Affirms

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on March 23 held that an insured failed to raise a genuine dispute of material fact regarding whether she timely filed her lawsuit seeking coverage for her alleged loss of hundreds of thousands of dollars in personal belongings that were destroyed by the Tubbs Fire in October 2017, affirming a lower federal court’s grant of summary judgment in favor of the insurers in her five-year-old pro se lawsuit alleging claims for breach of contract, breach of the implied covenant of good faith and fair dealing, misrepresentation, emotional distress and violations of the Unruh Act, the Americans with Disabilities Act and California Business and Professions Code Section 17200.

  • March 24, 2026

    Insureds Failed To Show Pollution Suit Is Potentially Covered, Judge Says

    SACRAMENTO, Calif. — A California federal judge on March 23 denied a motion to dismiss or stay a declaratory judgment suit filed by insurers after determining that the insureds failed to show how an underlying suit alleging that the insureds unlawfully discharged pollutants into area waterways states, or could state, a covered claim that would require the insurers to defend the insureds.

  • March 24, 2026

    Insurer Owes Duty To Defend Insured In Underlying Silica Suits, Judge Says

    LOS ANGELES — An insurer has a duty to defend its insured for underlying bodily injury suits filed against the insured stemming from silica dust exposure from the insured’s products because the insurer failed to meet its burden of showing that the underlying suits are barred by the pollution exclusion included in primary and excess policies, a California federal judge said in denying the insurer’s motion for summary judgment and granting the insured’s motion for summary judgment.

  • March 20, 2026

    Punitive Damages Claim Cannot Survive Dismissal As Pleaded, Judge Says

    LOS ANGELES — A California federal judge denied an insurer’s motion to dismiss an insured’s negligent misrepresentation claim because the insured plausibly alleged that the insurer negligently misrepresented its need for additional information about the vandalism of the insured’s property; however, the judge granted the insurer’s motion as it applied to the insured’s claim for punitive damages because such a claim is not an independent cause of action.

  • March 20, 2026

    Insurer: Judge Should Reject Developer’s Fee Calculations In Coverage Dispute

    LOS ANGELES —A general liability insurer filed a reply in support of its motion for reconsideration asking a federal judge in California to reconsider his grant of summary judgment to developers in the developers’ case seeking coverage for construction defects, arguing that the judge should reject the developer’s faulty fee calculations.

  • March 20, 2026

    Insurer Asks 9th Circuit To Find Claim For Rescission Not Time-Barred

    SAN FRANCISCO — In its opening brief in the Ninth Circuit U.S. Court of Appeals, an insurance company argues the appellate court should enter summary judgment on its behalf in its case against a general contractor and find that its claim for rescission of the general contractor’s policies was not time-barred.

  • March 19, 2026

    Federal Judge Stays Defect Coverage Case While State Action Continues

    LOS ANGELES — A federal judge in California granted a motion to stay filed by a condominium developer and general contractor in a declaratory judgment case the general contractor’s insurer filed against them over coverage for an arbitration award regarding construction defects, finding that continuing the case would be largely duplicative of a case involving nearly identical insurance policies between the parties.

  • March 19, 2026

    Magistrate Judge Finds Course Of Construction Exclusion Bars Coverage

    LOS ANGELES — A federal magistrate judge in California granted insurers’ motion for summary judgment on claims brought against them by an insured subcontractor for not defending or indemnifying it in an underlying construction-defect arbitration because coverage was barred under the policy as the construction project at issue was not completed.

  • March 18, 2026

    LTD Insurer To 9th Circuit: Affirm Preexisting Condition Exclusion Ruling

    SAN FRANCISCO — Describing the ruling at issue as “plausible, logical and supported by the record,” an insurer urged the Ninth Circuit U.S. Court of Appeals to affirm an order that upheld its denial of long-term disability (LTD) benefits under a preexisting condition exclusion.

  • March 17, 2026

    Insureds’ Water, Mold Damage Coverage Suit Must Be Remanded, Federal Judge Says

    LOS ANGELES — An insureds’ suit seeking coverage for water and mold damage in their home must be remanded to state court because complete diversity of citizenship does not exist as the insureds have stated a valid claim for misrepresentation against the claims adjuster, a nondiverse defendant, a California federal judge said in granting the insureds’ motion to remand.

  • March 16, 2026

    Insured’s Bad Faith Suit Barred By Policy’s Suit Limitation Provision, Judge Says

    LOS ANGELES — A California federal judge granted a homeowners insurer’s motion for summary judgment in a breach of contract and bad faith suit stemming from a coverage dispute over the insured’s water damage claim because the insured failed to file suit within one year of the inception of the loss as required by the policy’s suit limitation provision.

  • March 16, 2026

    9th Circuit Affirms Insurer’s Win In Widow’s Suit Over Life Insurance Payment

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel affirmed the grant of summary judgment against a widow bringing a putative class action lawsuit against an insurer for alleged underpayment of a life insurance policy, allegedly in breach of contract and violation of California’s unfair competition law (UCL), writing that the insurer paid the policy in full and was entitled to deduct unpaid premiums.

  • March 13, 2026

    COMMENTARY: America 250: A History Of Insurance And Insurance Coverage Law And Litigation In The United States, Part 1

    By Scott M. Seaman, Pedro E. Hernandez and Peter J. Lewis

  • March 10, 2026

    California DOI, Insurer Reach Agreement In Rate Increase Hearing Proceeding

    SACRAMENTO, Calif. — The California Department of Insurance, Consumer Watchdog and State Farm General Insurance Co. reached a three-party settlement agreement in a full-rate hearing proceeding to review the insurer’s emergency interim rate increase following the Palisades and Eaton wildfires.  In a news release, the department says the deal “will provide financial relief to many policyholders while ensuring continued coverage for State Farm policyholders while California’s insurance market stabilizes.”

  • March 10, 2026

    Pollution Exclusion Bars Coverage For Contaminated Sugar, Insurer Maintains

    STOCKTON, Calif. — A commercial general liability insurer filed suit in California state court against its insured, maintaining that no coverage is owed to the insured for an underlying lawsuit stemming from refined sugar that was destroyed or contaminated following the death of an employee in a silo where the sugar was stored because the policy’s pollution exclusion bars coverage based on the underlying allegation that the insured allowed the decedent’s bodily fluids and disinfectants to come into contact with the sugar left in the silo.

  • March 10, 2026

    Judge Denies Cross-Motions For Summary Judgment In Defect Coverage Dispute

    FRESNO, Calif. — A federal judge in California denied cross-motions for summary judgment in an excess insurer’s action against its insured general contractor for reimbursement of funds it paid to settle an underlying construction defect action, finding that the court must first determine whether the insurer adequately reserved its right to seek reimbursement.

  • March 10, 2026

    Panel Says Pesticide Was Product Of Insured, Affirms District Court’s Ruling

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals affirmed a district court’s partial grant of summary judgment in favor of an insured, agreeing with the lower court’s finding that a pesticide used by the insured was the product of the insured because the insured’s technician handled the pesticide during application.

  • March 03, 2026

    Delaware Judge: Social Media Litigation Does Not Trigger Insurers’ Duty To Defend

    WILMINGTON, Del. — A Delaware judge granted primary insurers’ motion for partial summary judgment in their declaratory judgment lawsuit brought against Instagram LLC and Meta Platforms Inc. (collectively, Meta), ruling that the insurers have no duty to defend against several thousand lawsuits alleging that Meta’s platforms caused harm to children because none of the underlying allegations “whether express, inferable, or extrinsic—support a conclusion that Meta’s conduct was accidental.”

  • March 03, 2026

    Magistrate Dismisses Coverage Dispute Over Negligence Claims Against Mutual Insured

    FRESNO, Calif. — One day after parties filed a stipulation of dismissal, a federal magistrate judge in California dismissed a commercial general liability coverage dispute over underlying allegations that the plaintiff and defendant insurers’ mutual insured negligently conducted cyclic steaming operations to extract and harvest oil.

  • March 02, 2026

    Class Complaint: Insurer Sold Out Customer And Website Users’ Trust For Money

    CHICAGO — A class complaint was filed in an Illinois federal court alleging that an insurer committed an egregious privacy violation and breach of consumer trust in violation of Illinois, California and federal laws by knowingly deploying tracking technologies without the consent of its insurance customers and other website visitors and in violation of its own express assurances that the customers’ private information would remain confidential, asserting that the insurer sold out its customers and website users’ trust for money.

  • February 24, 2026

    Insurer Files New Motion For Reconsideration In Water Damage Coverage Dispute

    LOS ANGELES — A general liability insurer filed a new motion asking a federal judge in California to reconsider his grant of summary judgment to developers on their declaratory judgment and breach of contract claims against the insurer after the judge issued docket-only orders striking the insurer’s earlier motions for reconsideration.

  • February 20, 2026

    Judge Finds Insurer Must Defend Paint Contractor In Suit Over Fire Damage

    SAN FRANCISCO — A federal judge in California found that a commercial general liability insurer owed its insured paint contractor a duty to defend and indemnify it in underlying actions stemming from a fire that damaged property in San Francisco because there is “evidence that, at minimum, creates a material dispute of fact as to [the paint contractor’s] role in the fire at the Property.”

  • February 20, 2026

    Judge Strikes Motions For Reconsideration In Water Damage Coverage Dispute

    LOS ANGELES — A federal judge in California issued docket-only orders striking a contractor’s commercial general liability insurer’s motions asking the judge to reconsider his grant of summary judgment to developers on their declaratory judgment and breach of contract claims against the insurer.