Mealey's Emerging Insurance Disputes
-
November 11, 2024
Insured Asks 4th Circuit To Reconsider No Coverage Ruling For Cryptocurrency Loss
RICHMOND, Va. — An insured filed a petition seeking a rehearing or rehearing en banc of the Fourth Circuit U.S. Court of Appeals’ affirmation of a lower court’s dismissal of his breach of contract lawsuit seeking homeowners insurance coverage for his alleged $170,000 cryptocurrency loss, challenging the courts’ findings that the loss of cryptocurrency is not a “direct physical loss” to trigger policy coverage.
-
November 08, 2024
No Coverage Owed For Business Owner Who Killed Intruder, Kentucky Panel Affirms
FRANKFORT, KY. — A Kentucky appeals court on Nov. 8 affirmed a lower court’s ruling that a general liability insurer owes no coverage for an underlying wrongful death lawsuit brought against a business owner insured who shot and killed an intruder, rejecting the insured’s argument that the shooting was an accident.
-
November 08, 2024
N.Y. Appeals Court: Evidence Conclusively Established Insurer Did Not Act In Bad Faith
BROOKLYN, N.Y. — A New York appeals court concluded that a lower court should have granted an insurer’s motion to dismiss an insured’s bad faith claim in a coverage dispute over an underlying personal injury lawsuit but found that the lower court properly determined that the insurer failed to establish that coverage was barred under the policy’s employee exclusion.
-
November 08, 2024
Insurers Dispute Coverage For BIPA Violation Class Action Against Taco Bell Owners
NEW ORLEANS — Commercial general liability and umbrella insurers filed a complaint in an Illinois federal court seeking a declaratory judgment that they have no duty to defend and indemnify against an underlying class action lawsuit alleging that the owners and operators of Taco Bell restaurants in Illinois violated the state’s Biometric Information Privacy Act (BIPA).
-
November 07, 2024
No Coverage Owed For Alleged Sexual Assault By Insured, 9th Circuit Affirms
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals held that an insurer owes no coverage for an underlying sexual assault action brought against the insured, affirming the lower federal court’s grant of summary judgment in favor of the insurer in the insured’s breach of contract and bad faith lawsuit.
-
November 06, 2024
Theft Claim Is Time-Barred By Policy’s Limitations Period, Panel Affirms
PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s finding that a man’s $126,000 theft claim is time-barred by his homeowners insurance policy’s one-year limitations period, rejecting the insured’s contention that California’s Emergency Rule 9 tolls the limitations provision.
-
November 05, 2024
5th Circuit Rejects Insurer’s Argument In Coverage Dispute Over LSU Hazing Death
NEW ORLEANS — The Fifth Circuit U.S Court of Appeals on Nov. 4 affirmed a lower federal court’s ruling against an excess homeowners insurer in lawsuit brought by the parents of a Louisiana State University (LSU) freshman who died in 2017 of alcohol poisoning following a fraternity hazing incident, finding that the lower federal court did not err by denying the insurer’s motion for summary judgment on the applicability of its policy exclusions.
-
November 05, 2024
Freddie Mac, Insurer Move To Dismiss Claims Between Them In D&O Coverage Suit
WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) and an insurer filed a joint stipulation asking a Washington federal court to dismiss the claims between them in Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.
-
November 04, 2024
Insurer: No D&O Coverage Owed For Claims Insured’s Employee Mishandled Corpse
CHICAGO — An insurer filed suit in an Illinois federal court seeking a declaratory judgment that it has no duty to defend and indemnify against an underlying lawsuit alleging that its insured’s employee mishandled the remains of a decedent whose body was donated for research, arguing that directors and officers and entity liability (D&O) coverage is barred by the policy’s professional services, medical service, contract and bodily injury exclusions.
-
October 31, 2024
Judge Grants Final Approval To Nearly $20M Settlement Of Ticket Insurance Suit
SAN FRANCISCO — A California federal judge granted final approval to a nearly $20 million settlement resolving claims that insurers including Allianz Global Assistance (AGA) violated California’s unfair competition law (UCL) and other laws in relation to its online marketing of travel and event insurance, with the plaintiffs’ attorneys awarded nearly $5 million in attorney fees.
-
October 30, 2024
Tennessee Panel Affirms Default Ruling In Coverage Suit Over Wrongful Death Claim
NASHVILLE, Tenn. — A Tennessee appeals panel affirmed a lower court’s ruling that denied a defendant’s request to set aside a default that was entered against her in an insurer’s lawsuit disputing coverage for an underlying wrongful death claim, rejecting the defendant’s argument that a deputy failed to effectuate valid service of process of the complaint.
-
October 30, 2024
Insurer Removes City Of New York’s Coverage Suit To Federal Court
BROOKLYN, N.Y. — An insurer removed to a New York federal court the city of New York’s declaratory judgment lawsuit seeking additional insured coverage for an underlying negligence action brought on behalf of a decedent who died while staying at a city shelter.
-
October 29, 2024
Federal Judge Stays Dismissal Of Philadelphia Eagles’ COVID-19 Coverage Dispute
PHILADELPHIA — A federal judge in Pennsylvania stayed his dismissal of a lawsuit brought by the owner and operator of the Philadelphia Eagles football organization seeking a declaration as to coverage for its losses arising from the COVID-19 pandemic pending a ruling on the insured’s motion for reconsideration.
-
October 29, 2024
Judge: Court Lacks Jurisdiction Over Coverage Dispute Arising From Abuse Claims
TRENTON, N.J. — A New Jersey federal judge on Oct. 28 granted the Diocese of Trenton’s motion to dismiss a general liability insurer’s declaratory judgment lawsuit challenging coverage for underlying abuse lawsuits, finding that the district court lacks subject matter jurisdiction to adjudicate the insurer’s claims because the insurer “relies on a strictly hypothetical controversy that may never occur.”
-
October 29, 2024
4th Circuit Refuses To Certify Question In Suit Over Lender’s Insurance Premiums
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals denied a motion by a plaintiff in a putative class action to certify “an important question of law” to the Maryland Supreme Court in his appeal arguing that the Credit Grantor Closed End Credit Provisions (CLEC) “strictly prohibit” a mortgage lender’s charge of insurance premiums in connection with a loan and seeking reversal of a lower federal court’s ruling that granted the lender’s motion for judgment.
-
October 28, 2024
Panel Refuses To Vacate Ruling In Favor Of Professional Liability Insurer
ATLANTA — A panel of the 11th Circuit U.S. Court of Appeals denied a request by assignees of an accounting services provider insured to vacate its ruling that affirmed a lower federal court’s grant of summary judgment in favor of a professional liability insurer in their breach of contract lawsuit.
-
October 28, 2024
Michigan Supreme Court Refuses To Review Ruling In Favor Of Insurance Agent
LANSING, Mich. — The Michigan Supreme Court on Oct. 28 denied an insured’s request for leave to appeal an appeals court’s ruling that affirmed a lower court’s grant of summary disposition in favor of an insurance agent and agency in its negligence lawsuit arising from its lack of flood coverage.
-
October 28, 2024
More Briefing Ordered In Microcaptive Case Involving Economic Substance Doctrine
WASHINGTON, D.C. — A U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the “economic substance doctrine” in regard to the remaining issue of accuracy-related penalties has directed the parties to file simultaneous briefs by Dec. 19.
-
October 28, 2024
Insurer: No Employment Practices Liability Coverage Owed For 2 Class Actions
SEATTLE — An insurer filed suit in a Washington federal court seeking a declaration as to employment practices liability coverage for two underlying putative class actions alleging that its insureds violated state law requiring employers to disclose the range in salary for posted job openings.
-
October 25, 2024
4th Circuit Affirms Ruling In Insurer’s Favor In Suit Over Cryptocurrency Loss
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Oct. 24 affirmed a lower federal court’s dismissal of an insured’s breach of contract lawsuit seeking homeowners insurance coverage for his alleged $170,000 cryptocurrency loss, agreeing with the lower court that the insured’s loss of cryptocurrency is not a “direct physical loss” to trigger policy coverage.
-
October 25, 2024
U.S., Ship Owner File Settlement Notice In Exoneration Suit Over Bridge Collapse
BALTIMORE — The United States and the owner and technical manager of the ship that allided with and destroyed the Francis Scott Key Bridge in Baltimore filed a joint notice on Oct. 24 indicating they have reached a settlement and asked a Maryland federal court to dismiss the United States’ Sept. 18 claim and answer to the ship owner’s petition for exoneration from or limitation of liability for the casualties and damage arising from the bridge collapse.
-
October 24, 2024
Pennsylvania Court Dismisses MCARE Fund From Professional Liability Coverage Suit
HARRISBURG, Pa. — A Pennsylvania court dismissed Medical Care Availability and Reduction of Error Fund (MCARE Fund) from a petition seeking professional liability coverage for a $1 million settlement of an underlying malpractice lawsuit, concluding that MCARE Fund has no statutory obligation to act as the primary insurer and indemnify and defend the insured.
-
October 24, 2024
Driver’s Claims For Larger COVID-19 Refunds Properly Dismissed, 9th Circuit Told
SAN FRANCISCO — GEICO in an Oct. 23 appellee brief tells the Ninth Circuit U.S. Court of Appeals that a federal judge properly granted summary judgment on an insured driver’s class action claim against it for violating California’s unfair competition law (UCL) by providing drivers an insufficient rebate on premiums after COVID-19, arguing that its rebate was fair under the relevant policy and state insurance regulations.
-
October 23, 2024
Substantial Nexus Existed Between Burn Incident, Vehicle Use, Panel Says In Reversal
TRENTON, N.J. — A New Jersey appeals panel on Oct. 23 reversed a lower court’s ruling in favor of an automobile insurer in an insured’s lawsuit seeking personal injury protection (PIP) benefits for her injuries caused when a hot beverage spilled on her when she was sitting in her car at a Dunkin’ Donuts’ drive-through, finding that the insured’s injuries were a “natural and reasonable . . . consequence” of the use of her vehicle and, therefore, a substantial nexus existed between the injury incident and her vehicle use.
-
October 23, 2024
Connecticut Judge Rules For Insurer In Coverage Suit Over Assault Claims
NEW BRITAIN, Conn. — A Connecticut judge granted a homeowners insurer’s motion for summary judgment in its lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify its insured against underlying assault claims, finding that the insured’s “alleged violent assault” was no “accident” and, therefore, was not an “occurrence” to trigger coverage under her policy.