Mealey's Emerging Insurance Disputes

  • October 22, 2024

    Insurer Says It Owes No Defense, Indemnification For Data Breach Claim, Suit

    SEATTLE — A media tech insurer filed suit in a Washington federal court seeking a declaration that it has no duty to defend or indemnify its financial services firm insured against a bank’s indemnification demand for a data breach incident and a related subrogation lawsuit brought by the bank’s insurer.

  • October 22, 2024

    Illinois Panel Partly Reverses Ruling In Coverage Dispute Over Dog Attack

    SPRINGFIELD, Ill. — An Illinois appeals panel reversed a lower court’s grant of summary judgment in favor of defendants in a homeowners insurer’s declaratory judgment lawsuit disputing coverage for bodily injury caused by a dog attack,  finding that there is a genuine issue of material fact regarding whether the insured misrepresented her ownership of a pit bull.

  • October 22, 2024

    Contamination Exclusion Bars Coverage For COVID-19 Losses, Federal Judge Says

    SACRAMENTO, Calif. — An all-risk policy’s contamination exclusion bars coverage for losses sustained during the COVID-19 pandemic because a California appellate panel’s determination that a contamination exclusion bars coverage for COVID-19 losses is binding and warrants the same finding in a similar suit filed by insureds in federal court, a California federal judge said Oct. 21 in granting an insurer’s motion for summary judgment.

  • October 22, 2024

    3rd Circuit Dismisses Urban Outfitters’ Appeal In Coronavirus Coverage Suit

    PHILADELPHIA — One day after URBN US Retail LLC (Urban Outfitters) and its insurer filed a joint stipulation to dismiss, the Third Circuit U.S. Court of Appeals tossed Urban Outfitters’ appeal of a lower federal court’s dismissal of its coverage lawsuit arising from the coronavirus pandemic.

  • October 22, 2024

    CGL Insurer Appeals Ruling That it Owes Hotel Defense For Sex Trafficking Claims

    ATLANTA — A commercial general liability insurer filed a notice indicating that it is asking the 11th Circuit U.S. Court of Appeals to review a Georgia federal judge’s ruling that granted a hotel operator insured’s motion to dismiss its complaint to the extent that its seeks a declaration that it has no duty to defend against an underlying lawsuit alleging that the insured did not uphold its duty of care concerning the safety of its hotel and hotel guests by failing to prevent and respond to evidence of sex trafficking.

  • October 21, 2024

    Insurer, Medical Product Manufacturer Settle Coverage Dispute

    CONCORD, N.H. — Attorneys for an insurer and a medical product manufacturer insured notified a New Hampshire federal court that they have settled the insurer’s declaratory judgment lawsuit pertaining to 10 underlying class actions alleging that the insured manufactured and marketed medical devices used to clean positive airway pressure (CPAP) and bi-level positive airway pressure (biPAP) devices that were not safe or effective.

  • October 21, 2024

    Insurer Voluntarily Tosses Suit Disputing Coverage For Fraud Claims Against Insureds

    CHICAGO — The same day an insurer voluntarily dismissed its lawsuit seeking a declaration that it has no duty to defend or indemnify its insureds against underlying fraud claims, a federal judge in Illinois dismissed the lawsuit.

  • October 17, 2024

    Federal Judge Dismisses Philadelphia Eagles’ COVID-19 Suit Against Insurer

    PHILADELPHIA — A federal judge in Pennsylvania on Oct. 16 dismissed a lawsuit brought by the owner and operator of the Philadelphia Eagles football organization seeking a declaration as to coverage for its alleged losses arising from the coronavirus pandemic, noting that the court is bound by Ungarean v. CAN & Valley Forge Ins. Co. that was recently decided by the Pennsylvania Supreme Court.

  • October 15, 2024

    Exclusion Bars Coverage For Farm Injuries, N.D. High Court Rules In Reversal

    BISMARCK, N.D. — The North Dakota Supreme Court found that an insurance policy provides coverage for bodily injuries incurred by farm employees but not when the injury is related to their use of a motor vehicle, reversing a lower court’s finding that the motor vehicle exclusion does not apply to coverage that was added by a farm employer liability endorsement to the policy.

  • October 15, 2024

    Panel: No Professional Liability Coverage Owed For Gender Discrimination Claim

    ST. PAUL, Minn. — The Minnesota Court of Appeals on Oct. 14 affirmed a lower court’s summary judgment ruling in favor of a medical professional liability insurer in a plastic surgeon insured’s breach of contract and bad faith lawsuit seeking coverage for a transgender woman’s claims that he discriminated against her based on her sexual orientation when he refused to perform breast augmentation surgery, finding that no coverage was triggered because it is clear that the underlying claims were based on an alleged gender-identity discrimination and not on a medical incident.

  • October 15, 2024

    Judge Tosses Class Action Alleging Insurance Provider Failed To Prevent Data Breach

    NEW YORK — One day after a plaintiff filed a notice of voluntary dismissal without prejudice of her class action complaint alleging that a financial organization that offers insurance, retirement and investment services primarily to teachers failed to prevent a May 2023 data breach that resulted in the theft of the personally identifiable information (PII) of its current and former clients, a New York federal judge ordered the case dismissed.

  • October 15, 2024

    Judgment Entered In Favor Of Insured In Coverage Dispute Over Fireworks Explosion

    BISMARCK, N.D.— A federal court in North Dakota entered a judgment in favor of an insured in a homeowners insurer’s declaratory judgment lawsuit disputing coverage for underlying property damage and personal injuries caused by a fireworks explosion after finding that the policy’s misrepresentation provision does not bar coverage because the insured did not willfully conceal or misrepresent any material facts regarding his use and storage of commercial fireworks at his Bismark property.

  • October 14, 2024

    Intervention Denied In Coverage Row Over Yacht Deemed ‘Remnant Of Its Former Self’

    SAN JUAN, Puerto Rico — A Puerto Rico federal judge denied intervention in a declaratory judgment suit against an insured by parties whose boats were purportedly harmed by fire that spread from a nearby yacht the judge called a “charred remnant of its former self,” finding that the proposed intervenors failed to establish that their interests “are not adequately represented by the defendant.”

  • October 14, 2024

    Freddie Mac Settles With 2nd Insurer In D&O Coverage Suit Over SEC Subpoena

    WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) and a second insurer told a Washington federal court that they have reached a settlement 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.

  • October 14, 2024

    Insurer Asks 9th Circuit To Reconsider Ruling In Sex Trafficking Coverage Dispute

    SAN FRANCISCO — A commercial insurer filed a petition seeking rehearing of the Ninth Circuit U.S. Court of Appeals’ Sept. 25 ruling that affirmed a lower federal court’s dismissal of its declaratory judgment arising from an underlying multidistrict litigation alleging that the insured is liable under Texas’ sex trafficking statutes, challenging the panel’s finding that its duty to defend has not been extinguished because the underlying claims may impose liability on the insured that triggers coverage.

  • October 14, 2024

    Judge Denies Summary Judgment In UCL Suit Over Insurer’s Liability Under Lost Policy

    SANTA ANA, Calif. — A California federal judge on Oct. 11 denied an insurer’s motion for summary judgment on a suit brought against it for breach of contract and violation of California’s unfair competition law (UCL) by the successor-in-interest to a school that is being sued for a 1976 sexual assault of a student by a teacher and claims to be an insured under a policy, the physical copies of which neither party possesses.

  • October 14, 2024

    Judge: ‘Multitude Of Issues’ Remain In Coverage Suit Over Fatal Drunk Driving Crash

    STAMFORD, Conn. — A Connecticut judge denied an insurance agency’s motion for summary judgment that it had no duty to recommend or procure a liquor liability insurance policy for a mini market that would have covered the risks associated with its unlicensed and illegal sale of hard alcohol, finding there are a “multitude of issues” that preclude summary judgment in favor of the agency in a negligence lawsuit arising from a $24 million wrongful death settlement.

  • October 14, 2024

    Owners Of Aircraft Valued At More Than $222M Sue Insurers In State Court

    STAMFORD, Conn. — Claiming breach of contract and bad faith, five entities that own two freighter planes that they allege a Russian cargo airline has refused to return after the invasion of Ukraine have filed a suit in Connecticut state court against more than two dozen “insurers, underwriters, underwriting managers, and insurance subscribers of coverage in the international aviation insurance market.”

  • October 11, 2024

    Private Equity Firms Amend Federal Complaint Against D&O, Cyber Liability Insurer

    OMAHA, Neb.— Two private equity firms filed an amended complaint against their directors and officers and cyber liability insurer in a Nebraska federal court, seeking coverage for the alleged $2.8 million they lost when an imposter investor hacked a reserve account (Panorama Point Partners LLC, et al. v. Everest National Insurance Company, No. 24-393, D. Neb.).

  • October 11, 2024

    Insurer: Alleged Sexual Assaults Do Not Constitute Religious Expression Injury

    SEATTLE — A church’s insurer filed a declaratory judgment lawsuit in a Washington federal court, disputing coverage for an underlying claim alleging a minor was sexually assaulted on multiple occasions by the church’s deacon.

  • October 10, 2024

    California Bishop Amends Complaint, Seeks Insurance Coverage For Sex Abuse Suits

    SAN FRANCISCO — The Roman Catholic Bishop of Oakland, Calif., filed a fifth amended declaratory judgment and breach of statutory duty complaint in a California federal court against numerous insurers and the California Insurance Guarantee Association (CIGA), which the plaintiff believes assumed responsibilities for its now-insolvent insurer, seeking a declaratory judgment stating that the plaintiff is entitled to a defense and indemnity regarding covered claims for the more than 300 suits filed against it related to alleged clergy sexual abuse.

  • October 10, 2024

    Federal Judge: Fact Issues Exist In Coverage Suit Over Claims Against Nursing Home

    CHICAGO —A federal judge in Illinois granted in part and denied in part the parties’ motions for summary judgment in a senior care primary liability insurer’s lawsuit challenging coverage for an underlying $934,232 judgment in a wrongful death and negligence action alleging that an insured violated the Nursing Home Care Act by failing to meet the standard of care at its skilled nursing facility, finding that issues of fact preclude summary judgment on certain issues.

  • October 10, 2024

    Wisconsin Panel: Claim Clearly Satisfies CGL Policy’s Definition Of Property Damage

    MILWAUKEE — A Wisconsin appeals panel held that an insured’s claim “clearly” satisfies a commercial general liability insurance policy’s definition of property damage and its insurer has a duty to defend and possible indemnify it against underlying complaints over paint peeling and cracking on aluminum balconies that were fabricated by the insured, reversing a lower court’s grant of summary judgment in favor of the insurer and remanding for further proceedings.

  • October 10, 2024

    9th Circuit Unseals Driver’s Brief Challenging GEICO’s ‘Unfair’ COVID-19 Rebates

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals unsealed a brief filed by a driver appealing a federal judge’s grant of summary judgment on her class action claim for violation of California’s unfair competition law (UCL) to GEICO for allegedly unfairly retaining an estimated $238 million in additional premium relief the driver says it owed insureds after the COVID-19 pandemic.

  • October 09, 2024

    Bound By Another Planet, Judge Reconsiders Ruling Against Insurer In COVID-19 Suit

    SANTA ANA, Calif. — A California federal judge on Oct. 8 granted an insurer’s motion to reconsider the court’s ruling that denied its motion for partial judgment on the pleadings in Live Nation Entertainment Inc.’s breach of contract lawsuit arising from the COVID-19 pandemic, dismissing with prejudice Live Nation’s claims for coverage that require a showing of physical loss or damage after concluding that the court is bound by the holding in Another Planet Entertainment, LLC v. Vigilant Insurance Co. that a “bare allegation” that “the actual or potential presence of the COVID-19 virus rendered [plaintiff's] property unusable for its intended purpose” is insufficient to demonstrate physical loss or damage to the insured property.