Mealey's Catastrophic Loss

  • July 15, 2024

    Panel Affirms No Coverage Ruling In Manufacturer’s Coronavirus Coverage Suit

    NEW YORK — The Second Circuit U.S. Court of Appeals on July 12 affirmed a lower federal court’s judgment in favor of an insurer in a manufacturer insured’s breach of contract lawsuit seeking coverage for its losses arising from the coronavirus pandemic, saying it is “unpersuaded” that the adsorption of coronavirus particles constitutes physical loss or damage under both the policy language and Connecticut law.

  • July 15, 2024

    California High Court Dismisses Tribe’s Appeal In Coronavirus Coverage Dispute

    SAN FRANCISCO — The California Supreme Court dismissed an Indian tribe insured’s appeal of a state appellate court’s finding that the insured and its experts failed to present sufficient evidence to demonstrate that the coronavirus caused property damage to the tribe’s casino and resort.

  • July 12, 2024

    Question Of Fact Exists On Coverage For Hail Damage; Bad Faith Claim Fails

    SAN ANTONIO — A Texas federal judge denied an insurer’s motion for summary judgment on a breach of contract claim after determining that a question of fact exists as to whether hail damage on the roof of an insured building occurred during the applicable policy period; however, the judge granted the insurer’s motion on the claim for bad faith after determining that the bad faith claim could not survive as there is a legitimate dispute over coverage for the insured’s claim.

  • July 12, 2024

    Panel Affirms No Coverage Ruling In Television Producer’s Coronavirus Coverage Suit

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on July 11 affirmed a lower federal court’s grant of an insurer’s motion for judgment on the pleadings in a television series producer insured’s breach of contract lawsuit seeking coverage for its losses incurred from coronavirus-related disruptions and delays in the production of its show, rejecting the insured’s contention that the lower court should have permitted it to present extrinsic evidence before it granted the insurer’s motion.

  • July 12, 2024

    Clothing Boutique, Insurer Withdraw 2nd Circuit Appeal In Coronavirus Coverage Suit

    NEW YORK — An insurer and its clothing boutique owner insured stipulated that the insured’s appeal in its breach of contract and declaratory judgment lawsuit seeking business interruption and property damage coverage for its losses arising from the COVID-19 pandemic and subsequent shutdown orders has been withdrawn with prejudice from the Second Circuit U.S. Court of Appeals.

  • July 11, 2024

    5th Circuit Affirms Court’s Refusal To Allow Insured To Amend Hurricane Laura Suit

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on July 10 affirmed a federal court’s ruling that denied an insured’s motion to amend her complaint in a breach of contract and bad faith coverage lawsuit arising from Hurricane Laura damage, finding that the insured did not ask for leave to file an amended complaint until after her claims were dismissed and “well after” her attorney was aware of the deficiencies in her complaint.

  • July 11, 2024

    Bad Faith Claims Barred By Homeowners Policy’s Suit Limitation Provision

    LAKE CHARLES, La. — Bad faith claims alleged against a homeowners insurer by insureds in a coverage dispute over property damages caused by Hurricanes Laura and Delta must be dismissed because the insureds failed to file their suit within two years as required by the policy’s suit limitation provision, a Louisiana federal judge said in granting the insurer’s motion to dismiss.

  • July 10, 2024

    Mississippi Federal Judge Allows Experts’ Testimony In Insurance Coverage Dispute

    NATCHEZ, Miss. — A federal judge in Mississippi denied an insurer’s motion to exclude two experts retained by a couple alleging that they were not adequately reimbursed for storm damage and refused to grant summary judgment after finding that material issues are in dispute.

  • July 09, 2024

    Panel Tosses Appeal In Hurricane Michael Appraisal Dispute For Lack Of Jurisdiction

    ATLANTA — The 11th Circuit U.S. Court of Appeals concluded that a Florida federal court failed to properly certify a partial final judgment order in favor of a church insured for immediate review pursuant to Federal Rule of Civil Procedure 54(b), dismissing the commercial property insurer’s appeal in a Hurricane Matthew coverage dispute for lack of jurisdiction.

  • July 08, 2024

    Texas Panel Affirms No Coverage Ruling In Restaurants’ Suit Arising From Pandemic

    DALLAS — A Texas appeals panel affirmed a lower court’s grant of a commercial property insurer’s motion for summary judgment in two restaurant group insureds’ lawsuit seeking coverage for their business interruption losses arising form the coronavirus pandemic, concluding that the insureds failed to present “more than a scintilla of evidence to create a genuine issue of material fact that COVID-19 caused ‘direct physical loss of or damage to’” to their restaurants.

  • July 08, 2024

    2nd Circuit Panel Affirms Appraisal Award On Issue Of Insureds’ Mold Damages

    NEW YORK — The Second Circuit U.S. Court of Appeals affirmed a district court’s dismissal of an insureds’ suit seeking additional coverage for mold damages caused by Superstorm Sandy because the insureds failed to provide any evidence that an appraisal award for their mold damages was the result of fraud, bias or bad faith.

  • June 28, 2024

    Panel: Insurer Did Not Intend To Offer ‘Eighty Thousand Dollars’ In Hurricane Suit

    NEW ORLEANS — A Louisiana appeals panel held that a builders risk insurer did not intend to offer $80,000 to settle a Hurricane Zeta coverage dispute and that the insurer and its insured did not have a meeting of the minds to compromise the dispute for that amount, reversing a lower court’s grant of the insured’s motion for judgment and remanding after the insurer argued that its original offer was a mistaken typographical error and its intent was to submit an $8,000 offer.

  • June 28, 2024

    Majority Affirms Dismissal Of Suit Seeking $192M In Losses Arising From Coronavirus

    NEW ORLEANS — A majority of a Fifth Circuit U.S. Court of Appeals panel on June 27 affirmed a lower federal court’s ruling in favor of a commercial property insurer in Texas’ largest nonprofit health system’s lawsuit seeking coverage for its $192 million in business interruption losses arising from the coronavirus, but the dissenting judge found that the case is distinct because the insured pleaded tangible alterations to its property.

  • June 27, 2024

    5th Circuit Partly Reverses Judgment In Coverage Dispute Over Hurricane Laura

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on June 26 partly reversed a lower court’s ruling in favor of a church insured following a three-day bench trial in a Hurricane Laura coverage dispute, finding that because the judgment awards damages and penalties that are based on January 2023 prices and costs in violation of the commercial policy's terms, the award must be vacated and remanded for recalculation.

  • June 27, 2024

    Bifurcation Of Breach Of Contract, Bad Faith Claims Not Warranted, Judge Says

    DAYTON, Ohio — Bifurcation of an insured’s breach of contract claim from the insured’s bad faith claim in a dispute over coverage for damages caused by a windstorm is not warranted because the homeowners insurer failed to meet its burden of showing that it would be prejudiced if both claims are tried together, an Ohio federal judge said in denying the insurer’s motion to bifurcate.

  • June 27, 2024

    Breach Of Contract, Bad Faith Claims Based On Hurricane Delta Summarily Dismissed

    MONROE, La. —  A Louisiana federal judge summarily dismissed an insured’s claims for breach of contract and bad faith as those claims applied to coverage for damages by Hurricane Delta because the insured’s heir, who was substituted as the plaintiff following the insured’s death, testified that Hurricane Delta did not damage the insured’s home.

  • June 26, 2024

    Panel Affirms Ruling In Insurer’s Favor As To Bad Faith Claim In Hailstorm Suit

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on June 25 held that a lower federal court correctly determined that under Texas Supreme Court precedent, an insurer is entitled to summary judgment on insureds’ bad faith and statutory damages claims in a hailstorm coverage dispute.

  • June 25, 2024

    Nevada Judge Denies Insurers’ Summary Judgment Motion In Coronavirus Coverage Suit

    LAS VEGAS — A Nevada judge denied insurers’ joint motion for partial summary judgment in a coronavirus coverage dispute, finding that the insurers have failed to satisfy their burden of showing that a recent Nevada Supreme Court ruling controls this lawsuit and that the policies at issue expressly extend the scope of coverage afforded for the “Infectious or Contagious Disease” peril.

  • June 21, 2024

    Panel Reverses Ruling In Insurer’s Favor In Bad Faith Suit Over Hurricane Damage

    WEST PALM BEACH, Fla. — A Florida appeals panel on June 20 held that an insurer waived its right to contest the validity of an insured’s Civil Remedy Notice of Insurer Violations (CRN) in the insured’s bad faith lawsuit arising from her hurricane water damage claim, reversing a lower court’s judgment in favor of the insurer and remanding.

  • June 21, 2024

    Louisiana Panel Affirms Default Judgment, Bad Faith Penalty Award Against Insurer

    LAKE CHARLES, La. — A trial court did not err in awarding insureds bad faith damages and attorney fees as part of a default judgment against a homeowners insurer in a coverage dispute over hurricane damages because the homeowners insurer failed to make payment within 30 days of receiving satisfactory proof of loss, a panel of the Third Circuit Louisiana Court of Appeal said June 20.

  • June 21, 2024

    Judge: Exclusion Does Not Apply To Coverage Claim Arising From Nashville Bombing

    NASHVILLE, Tenn. — A federal judge in Tennessee held that an insurance policy exclusion for buildings “that have been designated by any local, state or national governmental agency as an historic structure or landmark” does not apply to a condominium owner insured’s claim seeking coverage for the cost to repair its building, which incurred significant damage in the 2020 Christmas Day bombing in Nashville.

  • June 20, 2024

    2nd Circuit Lifts Stay Of Clothing Boutique’s Appeal In COVID-19 Coverage Suit

    NEW YORK — The Second Circuit U.S. Court of Appeals lifted the stay of a clothing boutique owner insured’s appeal of a federal district court’s order that denied its motion to alter or amend a judgment dismissing its breach of contract and declaratory judgment lawsuit seeking business interruption and property damage coverage for its losses arising from the COVID-19 pandemic and subsequent shutdown orders.

  • June 19, 2024

    Court Dismisses Coverage Suit Over Baltimore Sun Shooting Per Parties’ Stipulation

    CHICAGO — One day after the parties filed a stipulation of dismissal, a federal Illinois court dismissed with prejudice a lawsuit brought by Tribune Publishing Co. LLC and The Baltimore Sun Co. LLC seeking coverage for underlying wrongful death and negligence lawsuits arising from a 2018 shooting in which five newspaper employees were killed.

  • June 18, 2024

    Texas High Court Refuses To Disturb Reversal In Hurricane Harvey Coverage Suit

    AUSTIN, Texas — The Texas Supreme Court denied insureds’ petition to review an appellate panel’s reversal of a lower court’s summary judgment ruling in their favor in a coverage lawsuit arising from Hurricane Harvey damage, refusing to disturb the panel’s ruling to remand for the lower court to enter a take-nothing judgment in favor of the insurer.

  • June 17, 2024

    Lakers, Insurer Dismiss Coronavirus Coverage Dispute In California Federal Court

    LOS ANGELES —The Los Angeles Lakers and its commercial property insurer filed a stipulation asking a California federal court to dismiss with prejudice the insured’s lawsuit arising from its property damage and business interruption claims for losses related to the COVID-19 pandemic.