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Mealey's Emerging Insurance Disputes

  • March 11, 2026

    Judge Rejects Parties’ Stipulation To Dismiss Coverage Suit Over Fatal Shooting

    GREAT FALLS, Mont. — A Montana federal judge on March 10 denied a liquor liability insurer and a bar owner insured’s stipulation to dismiss with prejudice the insurer’s lawsuit disputing coverage for an underlying negligence action arising from a fatal shooting at the insured’s bar, noting that to the extent the parties seek to dismiss the insured’s appeal of the judge’s grant of the insurer’s motion for summary judgment, they must seek relief in the Ninth Circuit U.S. Court of Appeals.

  • March 11, 2026

    Filed-Rate Doctrine Bars Class Action Against Allstate, 5th Circuit Affirms

    NEW ORLEANS —The Fifth Circuit U.S. Court of Appeals on March 10 affirmed a lower federal court’s grant of summary judgment in favor of an insurer and denial of the plaintiffs’ motion for class certification in their lawsuit alleging that Allstate violated the Texas Insurance Code by charging its longstanding customers higher premiums than new customers for materially identical automobile insurance coverage, agreeing with the lower court that the filed-rate doctrine bars the action because the plaintiffs inherently challenge the reasonableness of the filed insurance rates that were reviewed by the Texas Department of Insurance.

  • March 11, 2026

    Following Stipulation, Judge Dismisses D&O Insurer’s Equitable Subrogation Suit

    NEW YORK — The same day parties filed a stipulation of dismissal, a federal judge in New York signed an order dismissing with prejudice a director and officer liability insurer’s claims for declaratory judgment, unjust enrichment and equitable subrogation against one remaining insurer in a coverage dispute arising from a criminal proceeding in Morocco alleging fraud, misappropriation of funds, criminal bankruptcy and money laundering against a company that managed a hotel.

  • 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

    Liquor Liability Insurer, Insured Seek To Dismiss Coverage Suit Over Fatal Shooting

    GREAT FALLS, Mont. — The same day a liquor liability insurer told a Montana federal court that a bar owner insured fully satisfied a judgment including a $160,088 attorney fees award, the parties on March 9 filed a stipulation to dismiss with prejudice the insurer’s lawsuit disputing coverage for an underlying negligence action arising from a fatal shooting at the insured’s bar.

  • March 10, 2026

    Judge Denies Insured’s Summary Judgment Motion In Medicaid Fraud Coverage Dispute

    WILMINGTON, Del. — A Delaware judge denied an insured’s motion for summary judgment as to the insurers’ affirmative defenses of reasonableness, fraud, collusion and bad faith in its lawsuit seeking professional liability coverage for an underlying Medicaid fraud investigation, holding that genuine disputes of material fact preclude summary judgment in this coverage dispute that was sparked by an investigation by the state of Texas that began almost 14 years ago.

  • March 10, 2026

    Georgia Panel Reverses $345M Judgment Against Insurers In Sexual Abuse Coverage Suit

    ATLANTA — A Georgia appeals panel reversed a lower court’s $345 million judgment against insurers in a breach of contract lawsuit seeking coverage for a consent judgment that was awarded against a school insured and its teacher who was accused of sexually abusing 20 students between 1974 and 1994, holding that the ongoing mental anguish that resulted from a teacher’s abusive conduct is not covered by insurance policies that were not in effect until decades later.

  • March 09, 2026

    Panel Refuses To Rehear No Coverage Ruling For $10M Invasion Of Privacy Verdict

    ATLANTA — The 11th Circuit U.S. Court of Appeals on March 6 denied a petition filed by a minor, by and through her parent, asking it to reconsider its holding that a 58-month delay in notifying an umbrella insurer of underlying conduct that could have triggered coverage was untimely as a matter of law, standing by its ruling that affirmed a lower federal court’s grant of summary judgment in favor of the insurer in a direct action lawsuit seeking coverage for a $10 million judgment in the underlying invasion of privacy action.

  • March 09, 2026

    Judge Tosses Prompt Payment Counterclaims Against Professional Liability Insurer

    AUSTIN, Texas — A senior federal judge in Texas dismissed without prejudice counterclaims brought under Texas Insurance Code Chapter 542 against a professional liability insurer, holding that the defendants’ prompt payment counterclaims fail because they do not involve a “claimant” or “claim” as defined under Chapter 542.

  • March 09, 2026

    Court Lacked Admiralty Jurisdiction Over Yacht Owner’s Claims, 5th Circuit Affirms

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling that granted subrogee insurers’ motion to dismiss a yacht owner’s petition seeking limitation of liability for damage caused by a fire and explosion under the Limitation of Liability Act, agreeing with insurers that the lower court lacked admiralty jurisdiction over the yacht owner’s claims.

  • March 06, 2026

    Delaware High Court Affirms $50M Judgment In Insured’s Favor In Professional Liability Dispute

    WILMINGTON, Del. — The Delaware Supreme Court on March 5 affirmed a lower court’s final judgment awarding more than $50 million in favor of an insured in its breach of contract lawsuit seeking professional liability coverage for three underlying class actions alleging that it failed to disclose material information regarding the potential of future long-term care (LTC) insurance policy rate increases.

  • March 06, 2026

    No Professional Services Alleged, No Professional Coverage Owed, Judge Rules

    ROME, Ga. — A federal judge in Georgia granted a professional liability insurer’s motion to dismiss a breach of contract and bad faith lawsuit seeking coverage for an underlying action alleging self-dealing and theft of confidential and proprietary software technology, holding that the plaintiffs’ underlying business dispute with their former employer did not fall under the policy’s coverage for “professional services” that was “performed for others.”

  • March 05, 2026

    Federal Judge Rules For Uber In Coverage Dispute Over 23 Personal Injury Suits

    NEW YORK — A federal judge in New York held that an insurer has a duty to defend Uber against 23 underlying personal injury lawsuits brought against 23 driver insureds who provided services using Uber’s software application, further finding that the insurer has a duty to indemnify Uber to the extent that it is held vicariously liable for the conduct of the drivers in the underlying lawsuits.

  • March 04, 2026

    Professional Liability Insurer Owes No Coverage To Law Firm, N.Y. Justice Rules

    ALBANY, N.Y. — A New York justice granted a professional liability insurer’s motion for summary judgment in its lawsuit seeking a declaration that it has no duty to defend or indemnify its law firm insured against an underlying extortion lawsuit, holding that coverage is barred by the policy exclusion for intentional conduct and that the exclusion “‘language is consistent with New York’s strong public policy against insuring a party from its intentional and/or fraudulent acts, practices, or conduct’.”

  • March 04, 2026

    Settlement Conference Set After Judgment Granted In Insurance Application Dispute

    LAS VEGAS —  A Nevada federal magistrate judge ordered the parties to appear for a settlement conference after a federal judge granted in part and denied in part cross-motions for summary judgment in insureds’ suit seeking coverage for expenses in defending another suit regarding fraud-based claims.

  • March 04, 2026

    Magistrate Deems Reserve Information ‘Relevant’ In Diocese Sex Abuse Coverage Row

    NEW YORK —  Finding that information about financial reserves may be “relevant” to the issue of a now-insolvent insurer’s coverage for claims against a New York Roman Catholic diocese for clergy’s alleged sexual abuse of children, a New York federal magistrate judge ordered the insurer to produce the reserve information in a suit over the insurer’s duty to defend and indemnify in underlying suits over the alleged sexual abuse.

  • March 04, 2026

    Policy’s Express Contract Exclusion Bars Coverage, Federal Magistrate Says

    SHERMAN, Texas — Noting that at least one other court has reached the same conclusion on similar facts, a magistrate judge determined that an insurance policy’s express contract exclusion unambiguously bars coverage for an underlying breach of contract claim that a homeowners association made against its management company and recommended that a federal Texas court grant the insurer’s motion for summary judgment.

  • March 03, 2026

    Premises Endorsement Limits Liability To Injuries That Occurred At Insured’s Tavern

    SCRANTON, Pa. — A federal judge in Pennsylvania held that an insurance policy’s Premises Endorsement limits liability to bodily injuries that occurred at a tavern insured’s physical address and does not insure bodily injuries that occurred approximately one mile away from the insured’s premises, granting the insurer’s motion for summary judgment in its declaratory judgment lawsuit disputing coverage for an underlying action arising from the death of a 4-year-old that occurred while she was driving with her mother who was allegedly overserved at the tavern.

  • 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

    Judge: Ransomware Sublimit Does Not Limit Insurer’s Liability For Malware Attack

    DALLAS — Noting that the court has not located any case law interpreting a ransomware sublimit endorsement or any similar policy provision, a federal judge in Texas held that a cyber liability insurance policy’s $250,000 Ransomware Sub-Limit Endorsement is not applicable on its face to the policy’s cyber extortion insurance and, as a result, the insurer’s liability is not limited as to the insured’s claim for $1.2 million in losses arising from a malware attack.

  • 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 27, 2026

    Judge Dismisses Consolidated Coverage Suit Arising From Super Bowl Parade Shooting

    KANSAS CITY, Mo. — A federal judge in Missouri dismissed a commercial general liability insurer’s consolidated lawsuit seeking a declaration that it has no duty to provide coverage for underlying state court actions brought by individuals who incurred shooting-related injuries at the 2024 Kansas City Chiefs Super Bowl victory parade, holding that the matter is better settled in state court.

  • February 25, 2026

    Prior Litigation Exclusion Bars Professional Liability Coverage, Federal Judge Says

    PHILADELPHIA — A federal judge in Pennsylvania granted a professional liability insurer’s motion to dismiss its insured’s breach of contract and bad faith lawsuit with prejudice, holding that the policy’s prior litigation exclusion precludes coverage for an underlying action alleging that the insured’s process for releasing timeshare owners from their agreements was not legitimate.

  • February 24, 2026

    Magistrate Won’t Dismiss Counterclaims, Grants Stay In Liability Coverage Dispute

    JOHNSTOWN, Pa. — A Pennsylvania federal magistrate judge on Feb. 23 dismissed a professional liability insurer’s motion to dismiss bad faith and fiduciary duty counterclaims but granted an alternate motion to bifurcate and stay the counterclaims in the insurer’s declaratory judgment suit disputing coverage for an underlying action arising from alleged sexual abuse by a pediatrician.