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Mealey's Emerging Insurance Disputes

  • October 21, 2025

    5th Circuit Partly Reverses Ruling In CGL Insurer’s Favor In Well Operator’s Suit

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Oct. 20 reversed a lower federal court’s dismissal of a well operator’s claims that a commercial general liability insurer has a duty to defend and indemnify its oilfield services company insured against an underlying dispute arising from well damage, finding that the insurer waived the policy’s consent-to-suit requirement and that the fact that the assignee could not recover from the insured or its bankruptcy assets does not preclude its duty to indemnify claim against the insurer.

  • October 21, 2025

    BlueCross, Excess E&O Insurer Stipulate To Dismiss Bad Faith, Breach Of Contract Suit

    HARRISBURG, Pa. — Capital BlueCross and its excess errors and omissions insurer filed a stipulation in a Pennsylvania federal court seeking dismissal with prejudice of Capital BlueCross’ breach of contract and bad faith lawsuit arising from an underlying antitrust multidistrict litigation.

  • October 20, 2025

    Chemical Company Says Settlement Reached In Coverage Suit Arising From Explosion

    BEAUMONT, Texas — A sustainable chemical company insured filed a notice in a Texas federal court indicating that it has reached a settlement with its insurer of its breach of contract and declaratory judgment lawsuit seeking to obtain coverage for the full value of its business interruption loss caused by an explosion at a Texas plant.

  • October 17, 2025

    No Coverage Owed For BIPA Class Action Against Insured, Illinois Panel Affirms

    CHICAGO — An Illinois appeals panel concluded that an insurer has no duty to defend or indemnify its information technology services and consulting firm insured against an underlying putative class lawsuit brought under the Illinois Biometric Information Privacy Act (BIPA), affirming the lower court’s finding that the insured’s “wrongful acts” and “enterprise security events” were not covered because they occurred prior to the policy's retroactive date.

  • October 17, 2025

    2 Named Plaintiffs Have Standing To Pursue Claims Stemming From Data Breach

    RICHMOND, Va. — Two of four named plaintiffs in a consolidated class action stemming from a data breach incident have standing to pursue their claims against the insurance companies whose network was hacked because their allegation that their driver's license numbers were posted on the dark web after the breach constitutes a concrete injury, the Fourth Circuit U.S. Court of Appeals said in partially reversing a district court’s opinion dismissing the case.

  • October 15, 2025

    Judge Dismisses Defective Wine Coverage Dispute After Winemaker, Insurer Settle

    SEATTLE — The same day a commercial winemaker and an excess commercial general liability insurer filed a notice of settlement, a federal judge in Washington dismissed the coverage dispute arising from an underlying faulty vinification lawsuit over allegedly defective wine.

  • October 15, 2025

    Judge Dismisses Coverage Dispute Over Claims Insured Falsely Markets Milk Product

    CHICAGO — Four days after an insurer filed a notice of voluntary dismissal, a federal judge in Illinois on Oct. 14 dismissed without prejudice the insurer’s lawsuit seeking a declaration that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements.

  • October 15, 2025

    Panel: Insurer Of Wendy’s Franchise Owes No Coverage For Assault And Battery Claims

    LAS VEGAS — The Ninth Circuit U.S. Court of Appeals held that a Wendy’s franchise owner’s insurer has no duty to indemnify Wendy’s employees against an underlying assault and battery lawsuit, agreeing with the lower federal court that there was no “occurrence” to trigger policy coverage because the underlying claims are intentional torts.

  • October 14, 2025

    Insurer Dismisses Coverage Dispute Over Claims Insured Falsely Markets Milk Product

    CHICAGO — An insurer voluntarily dismissed its lawsuit asking an Illinois federal court to declare that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements.

  • October 13, 2025

    Panel: Conflict Of Interest Claims Do Not Fall Under Misappropriation Exclusion

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Oct. 10 affirmed a lower federal court’s dismissal of a professional liability insurer’s lawsuit seeking a declaration that it has no duty to defend or indemnify an attorney and law firm for an underlying legal malpractice lawsuit, finding that the underlying conflict of interest claims do not fall under the policy’s misappropriation exclusion and, therefore, the insurer must defend the entire underlying action.

  • October 13, 2025

    Insurer Appeals Dismissal Of Suit Disputing Coverage For Sexual Assault Claims

    DENVER — A commercial general liability insurer notified a Colorado federal court on Oct. 10 that it is appealing the court’s dismissal of its lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify the U.S. Olympic & Paralympic Committee (USOPC) for a Paralympic swimmer’s lawsuit alleging that a team member sexually assaulted and harassed him and that USOPC failed to warn his parents about the team member or to supervise the accused, challenging the court’s finding that it lacks subject matter jurisdiction.

  • October 10, 2025

    Judge Denies Embryo Storage Lab’s Motion To Stay Consumer Fraud Coverage Dispute

    CHICAGO — A federal judge in Illinois denied an embryo storage lab’s motion to stay its professional liability insurer’s lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify the lab for an underlying class action alleging the insured engaged in false and deceptive advertising and failed to fully disclose the accuracy of preimplantation genetic testing, ruling that the doctrine in Md. Cas. Co. v. Peppers does not require staying the action.

  • October 10, 2025

    Insurer Disputes Coverage For Suit Alleging Insured Falsely Markets Milk Products

    CHICAGO — An insurer filed suit in a federal court in Illinois seeking a declaration that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements, arguing that the runoff exclusion bars coverage.

  • October 10, 2025

    Group Home Appeals No Coverage Ruling For Underlying Negligence Suit

    DULUTH, Minn. — The operators of a group home notified a Montana federal court that it is appealing the court’s holding that a commercial general liability insurer has no duty to defend them against an underlying negligence lawsuit and that they are not entitled to attorney fees, challenging the court’s ruling that no coverage was triggered because the underlying complaint alleges only mental injuries and not bodily injury, sickness or disease.

  • October 09, 2025

    California Panel Affirms Ruling In Insurer’s Favor In Suit Arising From Assault

    SAN DIEGO — A California appeals panel affirmed a lower court’s judgment in favor of a homeowners insurer in its declaratory relief lawsuit disputing coverage for an underlying judgment against its insured, concluding that the insured’s conduct was not the result of an “accident” and, therefore, the underlying damages did not arise from a covered “occurrence” under the policy.

  • October 08, 2025

    Federal Judge Says Law Firm, Insurer Have Settled Cyber Crime Coverage Dispute

    SEATTLE — A federal judge in Washington reported that a settlement has been reached in a law firm insured’s lawsuit seeking commercial cyber insurance coverage for a breach of the firm’s security measures, striking the June 1, 2026, trial date and ordering that dismissal and settlement papers be submitted by Dec. 5.

  • October 07, 2025

    Professional Negligence Suit Against Broker Is Untimely, California Panel Affirms

    LOS ANGELES — A California appeals panel on Oct. 6 determined that a lower court properly determined that a professional negligence lawsuit against an insurance broker is time-barred because the action was filed more than two years after the professional negligence cause of action accrued and the plaintiff has failed to plead any facts supporting his argument that the lower court should have applied equitable tolling principles.

  • October 07, 2025

    N.Y. Justice Allows Insured To Serve Subpoena In Secondhand Smoke Coverage Suit

    NEW YORK — An insured is permitted to serve a subpoena on the New York State Department of Financial Services and to compel the department to produce all complaints filed against a homeowners insurer by insureds for wrongful denial of coverage of claims related to secondhand smoke intrusion, a New York County Supreme Court justice said.

  • October 06, 2025

    9th Circuit Won’t Reconsider Ruling In Insurer’s Subrogation Suit Over Jet Damage

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Oct. 3 denied an insurer’s motion to reconsider the court’s denial of a joint motion to vacate an Aug. 25 memorandum decision that affirmed in part and reversed in part a lower federal court’s summary judgment ruling in an insurer’s subrogation lawsuit arising from property damage incurred by the insured’s privately owned noncommercial aircraft while it was parked and stored at the petitioner’s facility.

  • October 03, 2025

    Federal Judge: Insurer Entitled To Rescission, Would Have Breached Duties Otherwise

    CHICAGO — A federal judge in Illinois determined that an insurer was entitled to rescind a directors, officers and corporate liability insurance policy in a telecommunications business insured’s breach of contract and bad faith lawsuit arising from underlying allegations under the Illinois False Claims Act (IFCA), concluding that the insurer would have breached its duties to defend and indemnify the insured had it not been entitled to rescission.

  • October 01, 2025

    No Coverage Owed For Washington State University’s Coronavirus Losses, Panel Affirms

    SPOKANE, Wash.— A Washington appeals panel on Sept. 30 affirmed a lower court’s grant of an insurer’s motion for judgment on the pleadings in a business interruption coverage dispute arising from the coronavirus pandemic, concluding that it is bound by the Washington Supreme Court's ruling in Hill and Stout PLLC v. Mutual of Enumclaw Insurance Company in holding that a business’ shutdown because of the COVID-19 pandemic does not constitute a “direct physical loss or damage” to insured property pursuant to an all-risk insurance policy.

  • October 01, 2025

    Judge: Misappropriation Of Funds Exclusion Bars Professional Liability Coverage

    FRESNO, Calif. — A federal judge in California granted a professional liability insurer’s motion for summary judgment in an insured’s breach of contract and bad faith lawsuit seeking coverage for underlying claims alleging that the insured conducted a negligent background check on a client’s potential employee, ruling that the policy exclusion for “misappropriation of funds” unambiguously bars coverage.

  • September 30, 2025

    Judge: Prior And Pending Litigation Exclusion Does Not Bar Cyber Liability Coverage

    WILMINGTON, Del. — A Delaware judge granted in part and denied in part an insured and its excess insurers’ summary judgment motions in a cyber liability coverage dispute, holding that the prior and pending litigation policy exclusion does not relieve the excess insurers of their duty to defend but they have no duty to indemnify the insured for the costs it incurred in a reciprocal lawsuit.

  • September 30, 2025

    Judge Finds Policy Terms Ambiguous In Employment Practices Liability Coverage Suit

    COLUMBUS, Ohio — A federal judge in Ohio on Sept. 29 denied an insurer’s motion for judgment on the pleadings in its declaratory judgment lawsuit disputing employment practices liability coverage for an underlying civil lawsuit and a charge of employment discrimination arising from the sexual harassment of its insureds’ minor employee, ruling that the policy terms are ambiguous.

  • September 29, 2025

    9th Circuit Affirms Court’s Denial Of Insured’s Request For Attorney Fees

    SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s denial of an insured’s motion for attorney fees and costs after the court granted the insured’s motion to remand a coverage dispute arising from a shooting at the insured’s apartment complexes, finding that the insured’s characterization of the insurer’s “notice of removal as a fabrication and a misrepresentation of fact is a bridge too far.”