Mealey's Emerging Insurance Disputes

  • July 01, 2026

    Judge Administratively Closes D&O Coverage Suit After Parties Announce Settlement

    NEWARK, N.J. — One day after the parties announced that they have reached a settlement in principle, a federal judge in New Jersey administratively closed insureds’ breach of contract and declaratory judgment lawsuit seeking directors and officers liability coverage for an underlying action alleging they owe $435,378.93 under a credit card processing services agreement.

  • July 01, 2026

    Insurer Has Duty To Defend Negligence Suit Against Bar, Illinois Panel Affirms

    CHICAGO — An Illinois appeals panel held that a lower court did not err in ruling that a commercial liability insurer has a duty to defend its bar insured against an underlying negligence lawsuit, concluding that the underlying claims potentially fall within coverage and the insurer did not establish that the policy’s designated-premises endorsement or employment related practices exclusion clearly precluded coverage.

  • July 01, 2026

    Professional Liability Insurer: No Coverage Owed For Legal Malpractice Lawsuit

    NEWNAN, Ga. — A professional liability insurer filed suit in a federal court in Georgia seeking a declaratory judgment that it owes no coverage for an underlying legal malpractice lawsuit brought against its law firm and attorney insureds.

  • July 01, 2026

    No Coverage Owed For Legal Malpractice Suit, 6th Circuit Affirms

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of a breach of contract and declaratory judgment lawsuit brought by the assignee of health provider insured, agreeing with the lower court that two insurance policies’ plain language unambiguously bars coverage for an underlying legal malpractice lawsuit.

  • July 01, 2026

    Judgment Entered For Insurer In Breach Of Contract Dispute Over Yacht Coverage

    KEY WEST, Fla. — After a two-day bench trial, a Florida federal judge dismissed a yacht owner’s breach of contract claim against his insurer and entered final judgment for the insurer in the owner’s suit over the insurer’s alleged failure to compensate him for the loss of his yacht after it struck a coral reef and later sank, finding in part that the owner’s false statements to his insurer about the operation of the vessel violated the policy’s false-statement warranty.

  • July 01, 2026

    Delaware Judge: Bump-Up Clause Bars D&O Coverage For $48.5M Settlement Over Merger

    WILMINGTON, Del. — A Delaware judge granted primary and excess insurers’ motion for summary judgment in a lawsuit filed against them seeking directors and officers liability coverage for an underlying $48.5 million settlement with shareholders of Madison Square Garden Networks Inc. (MSGN) following a merger between MSGN and Madison Square Garden Entertainment Corp. (MSGE), holding that the insurers satisfied the burden of demonstrating that the policies’ Bump-Up Clause bars coverage.

  • June 30, 2026

    Insurer Disputes Coverage For Bodily Injury Suit Against Red Bull North America

    PITTSBURGH — An insurer filed suit in a Pennsylvania federal court, seeking a declaratory judgment that it has no duty to defend or indemnify Red Bull North America Inc. (RBNA) against an underlying lawsuit alleging damages caused by bodily injury during a promotional “media flight” for RBNA’s “Flugtag” event, disputing RBNA’s claim that it is owed coverage as an additional insured.

  • June 30, 2026

    N.J. Panel Orders CGL Insurer To Pay $1M Policy Limit For Default Judgment

    TRENTON, N.J. — A New Jersey appellate court affirmed a lower court’s finding that a commercial general liability insurer has a duty to indemnify its insured for $1 million of a $2,452,860 default judgment entered in an underlying negligence lawsuit arising from a fatal injury, rejecting the insurer’s argument that coverage was barred because the decedent was acting as an employee of the insured at the time of the incident.

  • June 29, 2026

    Insured, Insurer Reach Settlement In Principle Of Data Breach Coverage Suit

    ATLANTA— An insured and its insurer told a federal court in Georgia that they have reached a settlement in principle of the insured’s breach of contract and bad faith lawsuit seeking cyber defense coverage for putative class actions brought as a result of a 2024 data breach.

  • June 29, 2026

    Owner Of Former MiLB Team, National Association’s D&O Insurer Settle Dispute

    CONCORD, N.H. — The owner and operator of a former minor league baseball team and the National Association of Professional Baseball Leagues Inc.’s insurer settled their directors and officers liability coverage dispute alleging that the insurer failed to pay a $5.55 million judgment awarded against its insured in an underlying breach of fiduciary lawsuit.

  • June 26, 2026

    7th Circuit: Plaintiff Fails To Show Insurer Is Liable For Telemarketer’s Calls

    CHICAGO — The Seventh Circuit U.S. Court of Appeals affirmed a lower federal court’s denial of a plaintiff’s request for class certification in his lawsuit seeking to hold an insurer liable under the Telephone Consumer Protection Act but reversed the court’s summary judgment ruling in favor of the plaintiff, holding that he failed to demonstrate that the insurer is vicariously liable for a telemarketer’s calls under any theory of agency law.

  • June 25, 2026

    Connecticut High Court Refuses To Review Insurer’s Dispute With Fertility Doctor

    HARTFORD, Conn.— The Connecticut Supreme Court declined an invitation to review an appeals court’s reversal of a lower court ruling that intentional conduct and sexual misconduct exclusions in a professional liability insurance policy applied to every allegation in an underlying civil negligence lawsuit brought against a reproductive endocrinologist insured.

  • June 25, 2026

    Trustee Asks Bankruptcy Court To Enforce Boy Scouts Of America Reorganization Plan

    WILMINGTON, Del.— A retired judge, in her capacity as trustee of the Boy Scouts of America Settlement Trust, moved for the federal bankruptcy court in Delaware to enforce its third modified, fifth amended Chapter 11 reorganization plan contemplating the creation of a settlement trust to “assume liability for all Abuse Claims” that includes $1.6 billion in insurance settlement payments, as well as its order confirming the reorganization plan.

  • June 24, 2026

    2nd Circuit Affirms Ruling In Favor Of Lessee’s Insurer In Suit Over Injury

    NEW YORK — The Second Circuit U.S. Court of Appeals determined that undisputed facts defeat a landlord insurer’s argument that a lessee’s insurance policy intended to name the landlord as an additional insured and named the insured’s manager only in error, affirming a lower federal court’s grant of summary judgment in favor of the lessee’s insurer in the landlord insurer’s lawsuit seeking a declaration that the lessee insurer has a duty to defend and indemnify the landlord in an underlying trip-and-fall lawsuit.

  • June 24, 2026

    Texas Panel Affirms Ruling For Insurer In Dispute Over Missing Wine Bottles

    HOUSTON — A Texas appeals panel affirmed a lower court’s dismissal of a lawsuit seeking coverage for missing wine bottles that were stored in wine lockers at the insured’s club, ruling that the policies do not provide coverage for third parties who secured a $1,110,411.70 judgment against the insured and the right to enforce coverage.

  • June 23, 2026

    9th Circuit Vacates Ruling In Insurer’s Favor In Sexual Abuse Coverage Suit

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on June 22 entered a mandate on its earlier ruling that vacated a lower federal court’s judgment in favor of an excess insurer in a coverage lawsuit over 50-year-old sexual abuse claims brought against a California Catholic diocese, remanding for the lower court to reconsider its ruling in light of the County of San Bernardino v. Ins. Co. of the State of Pennsylvania decision.

  • June 23, 2026

    Panel: No Homeowners Coverage Owed For Negligence, Social Host Liability Claims

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals held June 22 that a lower federal court committed no reversible error when it entered summary judgment in favor of a homeowners insurer in the insurer’s lawsuit disputing coverage for underlying general negligence and social host liability claims arising from a car accident following a “beer Olympics” drinking party that was held at the insured’s home, agreeing with the lower court that the insurer has no duty to defend or indemnify.

  • June 23, 2026

    Federal Judge: Policy Void From Beginning; No Coverage Owed For Sexual Abuse Claims

    OCALA, Fla. — A federal judge in Florida held that the undisputed record demonstrates that an insurer properly rescinded insurance policies due to an insured’s material misrepresentations and has no duty to defend or indemnify the insured under the policies that were void ab initio for claims arising from an underlying sexual abuse lawsuit that was brought against the insured’s owner and manager.

  • June 19, 2026

    Federal Judge Closes BIPA Violation Coverage Suit After Parties Seek Dismissal

    CHICAGO — Three days after the parties filed a stipulation of dismissal, a federal judge in Illinois dismissed an employer’s lawsuit seeking commercial general liability and umbrella insurance coverage for an underlying putative class action alleging that it violated the Illinois Biometric Information Privacy Act (BIPA) by disseminating electronic information derived from the scanning of its employees’ biometric identifiers to third parties without their consent.

  • June 19, 2026

    Panel: Exclusion Bars Coverage For Insured’s Losses Over Spear Phishing Scheme

    CHICAGO — The Seventh Circuit U.S. Court of Appeals on June 18 affirmed a lower federal court’s dismissal of an insured’s breach of contract and declaratory judgment lawsuit seeking coverage under a financial institution bond for its $4 million in unrecovered losses arising from a spear phishing scheme, agreeing that an exclusion in the bond’s electronic mail initiated transfer fraud coverage provision applies as a bar to coverage.

  • June 19, 2026

    English Judge Awards Fees Against Insureds For Opposing Arbitration In Louisiana

    LONDON — An English judge granted a Bermudian insurer’s application for an anti-suit injunction against several insureds based in Texas and Louisiana who sued the insurer in Louisiana and have refused to arbitrate COVID-19 insurance claims, finding that a Louisiana state law barring arbitration of insurance disputes does not apply to the insurer’s arbitration agreement and awarding it more than $700,000 and 400,000 English pounds in attorney fees and costs.

  • June 18, 2026

    Giant Eagle: Late Notice Of Opioid Suits Caused D&O Insurers To Deny Coverage

    PITTSBURGH — Giant Eagle Inc. sued its insurance broker in a Pennsylvania federal court on June 17, alleging that the broker’s late notice to its insurers of underlying lawsuits arising from the opioid epidemic jeopardized its right to $40 million in directors and officers liability coverage to defend the underlying actions.

  • June 17, 2026

    Albertsons Appeals No Coverage Ruling For Opioid Liability Suits

    DOVER, Del. — Grocery store chain Albertsons filed a notice of appeal asking the Delaware Supreme Court to review a lower court’s holding that its commercial general liability insurers have no duty to defend and indemnify against underlying lawsuits seeking to hold it liable for damages arising from the opioid epidemic.

  • June 17, 2026

    Texas High Court Agrees To Review Take Nothing Judgment In Exxon’s Coverage Suit

    AUSTIN, Texas — The Texas Supreme Court granted Exxon Mobile Corp.’s petition seeking review of an appellate court’s ruling that reversed and rendered judgment that Exxon take nothing against its umbrella insurer in its lawsuit seeking coverage for an underlying $35 million injury settlement arising from an oil refinery explosion.

  • June 16, 2026

    Delaware High Court Refuses To Review Ruling On ‘Public Offering’ Exclusion

    DOVER, Del.—The Delaware Supreme Court refused an insurer’s application for certification of interlocutory appeal of a lower court’s grant of partial summary judgment in favor of a technology company insured seeking coverage for an underlying securities class action and a Securities Exchange Commission lawsuit arising from a merger between a privately held company and a special purpose acquisition company, declining to disturb the lower court’s interpretation of the policy’s “public offering” exclusion.