Mealey's Catastrophic Loss : Mealey's : Legal News & Analysis

Mealey's Catastrophic Loss

June 10, 2025
3rd Circuit Affirms Ruling In Favor Of Insurer In Coronavirus Coverage Suit

PHILADELPHIA — The Third Circuit U.S. Court of Appeals on June 9 affirmed a lower federal court’s ruling in favor of an insurer in coronavirus coverage disputes that were consolidated on appeal, ruling that under New Jersey law, insurance policies that insure “physical loss or damage” do not cover financial losses that were imposed by mandates in response to the coronavirus pandemic.
June 10, 2025
Federal Judge Refuses To Dismiss Hurricane Ian Coverage Suit As Untimely

FORT MYERS, Fla. — A Florida federal judge denied a Write-Your-Own insurer’s motion to dismiss an insured’s breach of contract lawsuit arising from property damage caused by Hurricane Ian, rejecting the insurer’s argument that the insured failed to timely file her lawsuit.
June 09, 2025
Texas Supreme Court Sets Oral Argument In Tornado Coverage Dispute

AUSTIN, Texas — The Texas Supreme Court will hold oral arguments beginning Sept. 10 in an insurer’s appeal of a majority’s reversal of a lower court’s judgment against insureds in a coverage dispute arising from tornado damage.
June 06, 2025
Hurricane Ian Coverage Suit Is Time-Barred, Federal Judge Rules, Dismisses Action

FORT MYERS, Fla. — A federal judge in Florida granted an insurer’s motion to dismiss its insureds’ breach of contract coverage lawsuit arising from their property damage that was caused by Hurricane Ian, concluding that the lawsuit was not timely filed.
June 05, 2025
Magistrate: Causation Issue In Hurricane Ian Coverage Dispute Is Matter For Jury

FORT MYERS, Fla. — A federal magistrate judge in Florida denied an insurer’s motion for summary judgment in its insureds’ breach of contract and declaratory judgment lawsuit seeking coverage for their Hurricane Ian losses, ruling that the insureds have produced sufficient evidence, including expert testimony of their hurricane damage, to survive summary judgment.
June 04, 2025
Insured’s Negligence Complaint Against Broker Is Untimely, Indiana Panel Affirms

INDIANAPOLIS — An Indiana appeals panel affirmed a lower court’s grant of summary judgment in favor of an insurance broker in an insured’s lawsuit alleging that the broker negligently failed to provide advice on how to procure event cancellation insurance after the insured discovered that its insurance policies did not cover its business losses arising from the COVID-19 pandemic, concluding that there are no material questions of fact regarding whether Indiana’s two-year statute of limitations period expired before the insured filed its complaint.
June 03, 2025
Judge: Fact Issues Preclude Summary Judgment In Hurricane Ida Coverage Dispute

NEW ORLEANS — A federal judge in Louisiana on June 2 denied cross-motions for summary judgment in a church insured’s bad faith lawsuit arising from Hurricane Ida property damage, ruling that there are genuine disputes of material fact regarding when the insurer received a satisfactory proof of loss and whether its payment and handling of the claim was arbitrary or capricious.
June 02, 2025
Panel: Insured Fails To Show Insurer Lacked Reasonable Basis To Deny Coverage

ATLANTA — The 10th Circuit U.S. Court of Appeals on May 30 affirmed a lower federal court’s grant of summary judgment in favor of an insurer in a coverage dispute arising from hailstorm damage to a commercial building, concluding that the insured did not demonstrate that the insurer lacked a reasonable basis to deny coverage pursuant to Colorado’s statutory remedy.
June 02, 2025
Insured’s Assignee Asks 8th Circuit To Reconsider Ruling In Storm Damage Dispute

ST. LOUIS — An insured’s assignee asked the Eighth Circuit U.S. Court of Appeals to reconsider its ruling that affirmed a lower federal court’s grant of summary judgment in favor of an insurer in its breach of contract and bad faith lawsuit arising from storm damage, asserting that the court did not “substantively address” its contention that the insurer bore liability for the adjustment of the claim.
June 02, 2025
Judge Grants Insurer’s Motion To Dismiss Retailer’s Suit Arising From Coronavirus

CHATTANOOGA, Tenn. — A federal judge in Tennessee granted an insurer’s motion to dismiss a women’s fashion retailer’s breach of contract and declaratory judgment lawsuit seeking business interruption coverage for its losses arising from the COVID-19 pandemic, finding that the policy terms unambiguously state that the policy does not cover losses resulting directly or indirectly from viruses pursuant to Tennessee law.
June 02, 2025
Homeowners Insurer Did Not Breach Contract, Act In Bad Faith In Roof Damage Dispute

CAMDEN, N.J. — Breach of contract and bad faith claims alleged against a homeowners insurer cannot proceed because the insureds are not entitled to recover the actual cash value of the damages to their roof until after the repairs are complete and because no reasonable jury could find that the insurer acted in bad faith in handling the insureds’ claim, a New Jersey federal judge said.
May 28, 2025
Majority Reverses Punitive Damages Ruling In Suit Arising From Hurricane Florence

RALEIGH, N.C. — A majority of the North Carolina Supreme Court affirmed an appeals court majority’s holding that an insured’s allegations are sufficient to state a claim for negligence against an insurance agent in a lawsuit arising from Hurricane Florence property damage but reversed its ruling as to the punitive damages claim.
May 28, 2025
Doctor Appeals No Coverage Ruling In Suit Arising From Alleged Hidden Cameras

NEW YORK — A doctor insured filed a notice of appeal asking the Second Circuit U.S. Court of Appeals to review a lower federal court’s dismissal of her breach of contract lawsuit seeking business interruption and umbrella coverage for her losses arising from discovery of hidden cameras at her dermatology office.
May 27, 2025
Louisiana Panel Affirms Dismissal Of Suit Against Allstate For Lack Of Jurisdiction

LAKE CHARLES, La.— A Louisiana appeals panel affirmed a lower court’s dismissal of a lawsuit against Allstate Insurance Co. seeking coverage for an unpaid invoice for removing trees that fell because of Hurricane Laura, finding no error in the lower court’s determination that it lacked territorial jurisdiction.
May 23, 2025
Insureds Say Carrier Acted In Bad Faith By Denying $19M Beryllium Release Claim

BOSTON — An insurer’s denial of an insured’s claim for more than $19 million in business interruption losses sustained as the result of a release of beryllium in the wake of three named storms constitutes a breach of contract and bad faith, the insureds say in a complaint filed in Massachusetts federal court.
May 23, 2025
Panel Rules On Writ Application, Appeal In Hurricanes Laura, Delta Coverage Suit

LAKE CHARLES, La. — A Louisiana appeals panel denied insureds’ application for supervisory review of a lower court’s interlocutory judgment that denied their motion for summary judgment to enforce appraisal amounts in a coverage dispute over hurricanes Laura and Delta damage and vacated the lower court’s grant of Louisiana Insurance Guaranty Association’s motion for partial summary judgment.
May 22, 2025
Contamination Exclusion Bars Coverage For COVID-19 Losses, Texas Panel Says

AUSTIN, Texas — A contamination exclusion bars coverage for an insured’s claim seeking coverage for damages and losses incurred as a result of the coronavirus because the exclusion is not ambiguous and clearly includes viruses in its definition of contamination, the Third District Texas Court of Appeals said May 22 in affirming a trial court’s judgment in favor of the insurers.
May 20, 2025
5th Circuit Refuses To Rehear Bad Faith Suit Arising From Hurricane Laura Damage

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on May 19 denied an insurer’s petition for panel rehearing asking the court to reconsider the part of its ruling that affirmed a lower federal court’s judgment in favor of a church insured in a bad faith lawsuit arising from Hurricane Laura damage, leaving undisturbed its findings as to jurisdiction, appraisal and policy valuation and bad faith.
May 20, 2025
U.S. High Court Refuses To Review Insurers’ Petition In Tribal Jurisdiction Dispute

WASHINGTON, D.C. — The U.S. Supreme Court on May 19 denied insurers’ petition for a writ of certiorari asking it to determine “whether a tribal court can exercise jurisdiction over nonmembers of the tribe based on off-reservation conduct,” leaving undisturbed a Ninth Circuit U.S. Court of Appeals’ opinion that affirmed a federal court’s finding that a tribal court has subject matter jurisdiction over a COVID-19 coverage suit involving tribal properties on tribal land.
May 20, 2025
Supreme Court Rejects Insurer’s Challenge To Ruling In Favor Of Tribal Court Judges

WASHINGTON, D.C. — The U.S. Supreme Court on May 19 declined an insurer’s invitation to review a Ninth Circuit U.S. Court of Appeals’ holding that a tribal court has subject matter jurisdiction over it in a dispute over the tribe’s claims for business interruption losses at its casino caused by the COVID-19 pandemic, refusing to review the appeals court’s ruling that affirmed a lower federal court’s summary judgment ruling in favor of two tribal court judges on the alternative ground that the insurance policy at issue satisfies Montana v. United States’ consensual-relationship exception.
May 19, 2025
Panel Reverses Judgment For Insurer In Hurricane Damage Dispute Over Attorney Fees

LAKELAND, Fla. — In a dispute over coverage for hurricane damage, a Florida appeals court on May 16 reversed and remanded a lower court’s ruling providing that pursuant to Florida law, the insurer was entitled to recover attorney fees and costs from the date of a settlement proposal rejected by a restoration services company, finding that the lower court erred in not applying binding Florida Supreme Court precedent.
May 16, 2025
8th Circuit Affirms Ruling In Insurer’s Favor In Bad Faith Suit Over Storm Damage

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of summary judgment in favor of an insurer in an insured’s assignee’s breach of contract and bad faith lawsuit arising from storm damage, concluding that the insured sought “to advance a novel agency theory on appeal” but there is no reason for the insured’s failure to raise this argument in the lower court and “no manifest injustice in this court declining to entertain the argument for the first time on appeal.”
May 15, 2025
Florida Supreme Court Refuses To Review Ruling In Hurricane Irma Appraisal Dispute

TALLAHASSEE — The Florida Supreme Court on May 15 refused to review a Florida appeals court’s finding that the plain and unambiguous language of Florida Statutes Section 627.70132 does not require a condominium association insured to provide a damages estimate to comply with the statutory requirement for providing its insurer with notice of a supplemental or reopened claim, leaving undisturbed the appeals court’s reversal of the lower court’s denial of the insured’s motion to compel appraisal in a Hurricane Irma coverage dispute.
May 13, 2025
Judge Cites Estoppel, Won’t Vacate Arbitration Order In Hurricane Ida Dispute

NEW ORLEANS — A Louisiana federal judge on May 12 denied a motion to vacate a prior order sending a dispute over an insurance claim for damages from Hurricane Ida to arbitration despite new Louisiana Supreme Court precedent on the issue, citing federal equitable estoppel principles and the fact that the insureds allege that their domestic and foreign insurers engaged in “concerted and interdependent conduct.”
May 12, 2025
Pennsylvania Court Affirms No Coverage Ruling In Suit Arising From Coronavirus

PHILADELPHIA — The Pennsylvania Superior Court affirmed a lower court’s ruling in favor of commercial property insurers in a coverage dispute arising from the COVID-19 pandemic, concluding that the insured failed to establish that it incurred “direct physical loss or damage to any of its properties” to trigger coverage.