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Mealey's Emerging Insurance Disputes

  • January 29, 2026

    Judge Dismisses Assignee’s Bad Faith Suit Seeking To Recoup $3.2M Consent Judgment

    WEST PALM BEACH, Fla. — In a two-page omnibus order with no reasoning, a federal judge in Florida dismissed without prejudice a bad faith lawsuit brought by the assignee of a horse stable owner insured seeking to recover an underlying $3.2 million consent judgment arising from the settlement of an underlying fraud lawsuit.

  • January 29, 2026

    6th Circuit Affirms Dismissal Of Retailer’s Coverage Suit Prompted By COVID-19

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of 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, holding that the lower court did not err when it refused to evaluate the policy at issue under the law of each of the 22 states where the insured claimed losses.

  • January 29, 2026

    Document Production Ordered In Sex Abuse Coverage Suit Involving New York Diocese

    NEW YORK — After conducting an in camera review of documents in a discovery dispute in an insurance coverage suit, a New York federal magistrate judge ordered a nonparty New York diocese to provide specified documents from a personnel file it maintained for a priest alleged to have committed sexual abuse against children while working at another Roman Catholic diocese in the state.

  • January 28, 2026

    Majority: Bump-Up Exclusion Does Not Bar Coverage For Securities Class Action

    WILMINGTON, Del. — A majority of the Delaware Supreme Court on Jan. 27 held that an insurance policy’s bump-up exclusion does not bar directors and officers coverage for an underlying securities class action brought against the insured, holding that the insurers failed to satisfy both requirements of the exclusion.

  • January 28, 2026

    Director Insured Only For Kiwanis Activities, Judge Says In Abuse Coverage Dispute

    TACOMA, Wash. — A federal judge in Washington denied in part and granted in part assignees’ motion for partial summary judgment in their lawsuit seeking coverage for an underlying settlement of six sexual abuse lawsuits brought against a foster home insured, holding that the insured’s former interim executive director was insured under certain primary insurance policies but only for any Kiwanis International activities or activities he undertook on Kiwanis' behalf.

  • January 27, 2026

    Insurer, Hotel File Briefs On Jurisdiction In Sex Trafficking Coverage Suit

    ATLANTA — Three days after a commercial general liability insurer filed a supplemental brief to address whether a lower federal court’s declaration that it has a duty to defend against an underlying sex trafficking lawsuit is appealable, the hotel operator insured filed its own supplemental brief arguing to the 11th Circuit U.S. Court of Appeals that it is not.

  • January 26, 2026

    Parties Dismiss 1 Insurer In Maui Wildfire Coverage Dispute 5 Days Before Trial

    MAUI, Hawaii — Five days before their scheduled trial, parties asked a Hawaii court to dismiss with prejudice all claims against one of the defendant insurers in the insureds’ bad faith action alleging that the insurers’ subrogation lawsuit seeking to recover compensation for the payments that they made to victims of the Aug. 8, 2023, Maui wildfires is “unfair, inequitable, and unlawful” because they “seek to take money away from their premium-paying insureds who are the real victims of the Maui Wildfires without showing that these victims have been fully compensated.”

  • January 26, 2026

    Review Of NRA’s Petition In Free Speech Suit Over Insurance Program Rescheduled

    WASHINGTON, D.C. — Two weeks after The National Rifle Association of America filed a reply in support of its petition seeking high court review of the Second Circuit U.S. Court of Appeals’ holding that a former superintendent of the New York department that regulates insurance is entitled to qualified immunity on the NRA’s First Amendment coercion and retaliation claims against New York state officials and the department, the U.S. Supreme Court rescheduled its distribution of the petition for conference.

  • January 23, 2026

    Additional Insured Owed Coverage For Suits Over Gas Explosion, 7th Circuit Affirms

    CHICAGO — The Seventh Circuit U.S. Court of Appeals on Jan. 22 affirmed a lower federal court’s summary judgment ruling in a dispute over coverage for an additional insured for underlying lawsuits arising out of a gas explosion, holding that the primary insured’s “acts or omissions” caused the gas explosion in whole or in part and the plaintiff is an “additional insured” for the purposes of the umbrella insurance policy.

  • January 21, 2026

    Colorado Supreme Court Partly Grants Certiorari In Coronavirus Coverage Dispute

    DENVER — The Colorado Supreme Court on Jan. 20 partly granted a retirement communities owner insured’s petition seeking review of a Colorado appeals court majority’s opinion that partly reversed a lower court’s ruling in favor of the insurer in the insured’s lawsuit seeking coverage for its losses arising from the coronavirus pandemic.

  • January 21, 2026

    4th Circuit Reverses Ruling In Favor Of Under Armour In D&O Coverage Dispute

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Jan. 20 reversed a Maryland federal court’s grant of Under Armour Inc.’s motion for judgment on the pleadings in its directors and officers liability insurers’ lawsuit seeking a declaration that they owe no coverage for underlying investigations brought by the U.S. Securities and Exchange Commission and the U.S. Department of Justice, shareholder demand letters and a securities class action, holding that the insured’s public financial forecasts and accounting practices are a single claim under the policy because they are ‘logically or causally related” and, therefore, the insured is not entitled to additional insurance coverage under its 2017-2018 D&O policy.

  • January 21, 2026

    Judge Dismisses Counterclaims Against Insurers In Sexual Abuse Coverage Dispute

    NEW YORK — A federal judge in New York granted insurers’ motion to dismiss an insured’s counterclaims for declaratory relief, reimbursement and violations of the duty of good faith and fair dealing and New York General Business Law Section 349, holding that the majority of the counterclaims are duplicative of the breach of contract claim.

  • January 21, 2026

    Judge Rules For Insurer In Coverage Suit Arising From $700,000 In Stolen Cannabis

    SAN FRANCISCO — A federal judge in California adopted a magistrate’s report recommending that a $32,197.19 default judgment be entered against an insured in the insurer’s declaratory judgment lawsuit disputing commercial liability coverage for an underlying negligence lawsuit arising from $700,000 in stolen cannabis products, affirming the magistrate’s holding that the insurer has no duty to defend because the insurance policy does not cover theft.

  • January 20, 2026

    6th Circuit Affirms Ruling In Insurer’s Favor In Suit Arising From Building Collapse

    CINCINNATI —The Sixth Circuit U.S. Court of Appeals on Jan. 16 affirmed a lower federal court’s grant of summary judgment in favor of an insurer in an insured’s lawsuit alleging that the insurer’s misrepresentations that it had full coverage makes the insurer liable for $1.3 million in code-compliance costs that exceeded the policy limit, concluding that the insured failed to demonstrate that the insurer “owed a separate-and-distinct duty to advise” or that the insured “reasonably relied on” the insurer’s alleged misrepresentations.

  • January 20, 2026

    Professional Services Exclusion Does Not Apply As Bar To Coverage, Judge Says

    HAMMOND, Ind. — A professional services exclusion does not apply as a bar to coverage for an underlying suit filed against an insured crane inspection company because the inspection by the company does not qualify as a professional service as the company’s inspectors did not have extensive training and operated more like technicians, an Indiana federal judge said in denying the insurer’s motion for partial summary judgment and granting the insured’s motion for partial summary judgment.

  • January 16, 2026

    No Indemnification Owed For $300,000 Personal Injury Judgment, Panel Says, Reverses

    BOSTON — A Massachusetts appeals court on Jan. 15 held that a homeowners insurer owes no indemnification for an underlying $300,000 personal injury judgment, reversing a lower court in concluding that the man who the underlying judgment was awarded against is not a member of his grandmother’s household and, as a result, is not insured under the policy at issue.

  • January 15, 2026

    Judge Dismisses COVID-19 Coverage Suit Brought By Owner Of Seattle Space Needle

    SEATTLE — Following the filing of a joint stipulation of dismissal, a Washington federal judge dismissed the owner and operator of the Space Needle in Seattle’s breach of contract and declaratory judgment lawsuit seeking to recoup the “millions of dollars in revenues” it lost when its business was interrupted because of the coronavirus pandemic.

  • January 14, 2026

    U.S. High Court Denies Abuse Claimants’ Request To Review Confirmation Of BSA Plan

    WASHINGTON, D.C. — The U.S. Supreme Court denied abuse claimants’ petition for a writ of certiorari seeking review of the Third Circuit U.S. Court of Appeals’ dismissal of their appeal seeking to reverse a lower federal court’s confirmation order that affirmed the Boy Scouts of America’s third modified fifth amended Chapter 11 reorganization plan, which contemplates the creation of a settlement trust to “assume liability for all Abuse Claims.”

  • January 14, 2026

    Insureds: Insurer’s ‘Improper,’ ‘Baseless’ Sur-reply Should Be Disregarded By Court

    NEW YORK — Justin Baldoni, Wayfarer Studios LLC, It Ends With Us Movie LLC and its movie studio officers asked a New York federal court to disregard their management liability insurer’s letter motion to file a sur-reply to their reply in support of their motion to dismiss the insurer’s lawsuit seeking a declaration that it has no duty to provide coverage for Blake Lively’s sexual harassment, hostile work environment and retaliation action.

  • January 13, 2026

    Judge: Summary Judgment Premature In Coverage Suit Arising From Gas Explosion

    LAFAYETTE, La. — A federal judge in Louisiana denied insurers’ motion for partial summary judgment and a judicial declaration in their coverage lawsuit arising from a fire and explosion that occurred while contractors were working on a pipeline project, finding that summary judgment is premature.

  • January 12, 2026

    Delaware Judge: 2 Insurers Owe D&O Coverage For Breach Of Fiduciary Duty Suit

    WILMINGTON, Del.— A Delaware judge held that because there is a meaningful link between an underlying demand and a subsequent breach of fiduciary duty lawsuit against an insured’s board of directors, two insurers have a duty to provide directors and officers liability coverage for the underlying action.

  • January 09, 2026

    5th Circuit Affirms Refusal To Compel Arbitration Of Hurricane Insurance Dispute

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel affirmed a federal judge’s denial of a motion by a group of domestic insurers to compel arbitration pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), as codified in Chapter 2 of the Federal Arbitration Act (FAA), 9 U.S.C. § 201 et seq., finding that state law prohibits arbitration of such disputes.

  • January 08, 2026

    Prompted By Contractor’s Motion, 5th Circuit Dismisses Appeal In CGL Coverage Suit

    NEW ORLEANS — One day after a contractor insured filed an unopposed motion to dismiss its appeal of a Texas federal court’s opinion that a commercial general liability insurer has no duty to defend or indemnify for an underlying negligence lawsuit arising from the death of a house cleaner, the Fifth Circuit U.S. Court of Appeals dismissed the appeal.

  • January 08, 2026

    No Coverage Owed For $10M Invasion Of Privacy Verdict, 11th Circuit Affirms

    ATLANTA — The 11th Circuit U.S. Court of Appeals on Jan. 7 held that a 58-month delay in notifying an umbrella insurer of underlying conduct that could have triggered coverage was untimely as a matter law, affirming a lower federal court’s grant of summary judgment in favor of the insurer in a direct action lawsuit seeking recovery of a $10 million judgment in an underlying invasion of privacy action.

  • January 08, 2026

    Following Mediation, Parties Reach Impasse In Data Breach Coverage Dispute

    ORLANDO, Fla. — A Florida federal court reported in a Jan. 7 docket note that an insured and its cyber and data risk insurer reached an impasse following mediation of the insured’s breach of contract and declaratory judgment lawsuit arising from a 2024 data breach that caused interruption to its financial technology business.