Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

August 08, 2025
Homeowner Asks Court To Reconsider Dismissal Of Suit Against Contractor’s Insurer

PHILADELPHIA — A homeowner is asking a federal court in Pennsylvania to reconsider its ruling dismissing his complaint against his contractor’s commercial general liability insurer for damages he was awarded in an underlying suit against the contractor, arguing that the court misapplied the state’s postloss assignment doctrine in determining that he lacked standing to assert a breach of contract claim against the insurer.
August 08, 2025
Suit Against Captive Insurer, Other Entities Voluntarily Dismissed, Terminated

WASHINGTON, D.C. — A District of Columbia federal judge terminated a case involving a risk retention group (RRG) and three entities it sued for breach of contract, breach of the covenant of good faith and fair dealing and tortious interference with business relations after the parties filed a joint stipulation of dismissal.
August 06, 2025
Insurer, Ex-CEO Seek Discovery Stay In Suit Over Alleged Claims Reserve Scheme

DALLAS — A delisted insurer and its former CEO asked a Texas federal court to stay discovery pending resolution of the former CEO’s motions for partial summary judgment on advancement of incurred legal fees and dismissal of the insurer’s counterclaims, claiming that the decisions could alter the scope of discovery in a case centered on allegations that the former CEO manipulated the insurer’s claims reserves, resulting in financial losses from a terminated loss portfolio transfer (LPT) reinsurance contract.
August 05, 2025
Professional Liability Insurer: No Coverage Owed For RICO Suit Against Law Firms

LOS ANGELES — A lawyers’ professional liability insurer filed suit in a federal court in California, seeking a declaratory judgment that it has no duty to defend or indemnify its law firm insureds against an underlying Racketeer Influenced and Corrupt Organizations Act lawsuit brought by Ford Motor Co., arguing that the underlying action fails to allege an act or omission in the insureds’ performance of legal services.
August 05, 2025
Builder Seeks Reconsideration Of Ruling For Insurer On Defects Arbitration Award

HOUSTON — A homebuilder seeks reconsideration of a Texas federal judge’s ruling granting summary judgment in favor of its commercial general liability insurer in the builder’s suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built, arguing that the judge erred in finding that the appraisal process discharged the insurer’s obligations as there was no appraisal or appraisal award in the case.
August 05, 2025
Financial Services Company Sues Primary, Excess D&O Insurers In Delaware Court

WILMINGTON, Del. — A financial services company insured sued its primary and excess insurers in a Delaware court, seeking directors and officers insurance coverage for its defense costs associated with an underlying arbitration arising from claims that the insured recruited a broker-dealer’s employees to steal trade secret software code and proprietary information that they used to build competing products and businesses.
August 01, 2025
General Contractor’s Insurer Appeals Amended Judgment In Row Over Damages Coverage

SANTA ANA, Calif. — A commercial general liability insurer for a construction company filed a notice of appeal of a federal court in California’s judgment finding that another of the company’s insurers had no duty to defend the company as an additional insured in a dispute over damages to a Hard Rock Hotel location because the terms of the original contract included no requirements to maintain insurance beyond the final payment date for the project.
July 30, 2025
Judge Dismisses Professional Negligence Suit Over Water Damage Following Settlement

CHEYENNE, Wyo. — A federal judge in Wyoming on July 29 granted a homeowners insurer, mechanical engineering firm and plumbing company’s stipulated motion to dismiss with prejudice the subrogated insurer’s negligence suit arising from water damage that was allegedly caused by improperly installed plumbing.
July 30, 2025
Insurer Seeks Contribution For Contamination Claim From 2nd Insurer

EUGENE, Ore. — A primary insurer has a duty to defend and indemnify an insured for an underlying environmental contamination claim and has a duty to indemnify the insured’s other primary and umbrella insurer for defense and indemnity costs incurred in defending the insured, the primary and umbrella insurer says in a complaint filed in Oregon federal court.
July 24, 2025
Homeowners Sue Florida Insurance Guaranty Association Over Hurricane Ian Damage

SARASOTA, Fla. — Florida homeowners filed a breach of contract suit in Florida state court against the Florida Insurance Guaranty Association (FIGA), asserting that it has assumed the liability for the claim they made to their now-insolvent homeowners insurer, which they allege failed to compensate them for losses related to purported damage to their home by Hurricane Ian.
July 23, 2025
PHL Rehabilitator Requests Moratorium Order Modification, Cites ‘Financial Strain’

WATERBURY. Conn. — Stating that a moratorium order that affects payments of benefits or investment obligations for policies issued by PHL Variable Insurance Co. “may present financial strain on certain policyholders,” the insurer’s rehabilitator filed a motion on July 22 to modify the order in a Connecticut court, seeking to allow eligible holders of nonvariable universal life policies alternative options for the full cost of insurance or premium charges, and enable fixed indexed annuity holders to access part of their account value.
July 23, 2025
Insurer, Engineer File Verbal Notice Of Settlement Of Professional Negligence Suit

CHEYENNE, Wyo. — A homeowners insurer and a mechanical engineering firm indicated to a federal court in Wyoming that they have reached a settlement of the insurer’s negligence lawsuit arising from water damage that was allegedly caused by improperly installed plumbing.
July 22, 2025
Insurer: No Coverage Owed For Injuries Caused By Intentional Shooting Rampage

RALEIGH, N.C. — A homeowners insurer filed suit in a North Carolina federal court seeking a declaratory judgment that it has no duty to defend and indemnify against an underlying lawsuit alleging that an unemancipated minor went on a shooting rampage that killed several people in a Raleigh neighborhood, contending that the underlying injuries were caused by intentional acts and not by an “occurrence” pursuant to the policy.
July 22, 2025
Insurer Appeals Ruling In D&O Coverage Dispute Over Unfair Dilution Claims

SAN DIEGO — A business and management indemnity insurer on July 21 filed a notice of appeal of a California federal court’s holding that it has a duty to defend and indemnify its insured against an underlying unfair dilution lawsuit because the “dilution claims exception” to the “insured vs. insured” exclusion restores directors and officers liability coverage.
July 22, 2025
Insurer: Exclusion Bars Coverage For Blake Lively’s Suit Against Justin Baldoni

NEW YORK — A management liability insurer filed suit in a New York federal court on July 21 seeking a declaration that it has no duty to provide coverage for Blake Lively’s sexual harassment, hostile work environment and retaliation action against Justin Baldoni, Wayfarer Studios LLC, It Ends With Us Movie LLC and its movie studio officers, asserting that the policy’s prior knowledge exclusion bars coverage.
July 22, 2025
Excess Insurer Says Pollution Exclusion Bars Coverage For Underlying Asbestos Suits

FORT WORTH, Texas — An excess insurer filed suit in Texas federal court against its insured and two of the insured’s other excess insurers, seeking a declaration of its coverage obligations to the insured for underlying asbestos bodily injury suits filed against the insured and claiming that its policies’ pollution exclusion bars coverage for the underlying suits.
July 22, 2025
Doctor Insured: Hidden Cameras Constitute Physical Alteration, Loss Of Use

NEW YORK — A doctor argues to the Second Circuit U.S. Court of Appeals that a lower federal court erred in dismissing her breach of contract lawsuit seeking business interruption and umbrella coverage for her losses arising from discovery of hidden cameras at her dermatology office, asserting that the hidden cameras constituted a physical alteration and loss of use and satisfied her insurance policy’s direct physical loss or damage requirement.
July 18, 2025
Government Seeks Dismissal Of Captive Insurance Refund Dispute For Improper Venue

TULSA, Okla. — Arguing that the action was filed in an improper judicial circuit and inconsistent with principal place of business evidence, the U.S. government moved to dismiss a complaint filed in a federal court in Oklahoma by the owners of a steel building manufacturer who claim that the Internal Revenue Service improperly disallowed a legitimate business expense related to a captive reinsurance arrangement.
July 17, 2025
Dismissal Bid Briefed In Suit Involving Lack Of Federal Reinsurance Coverage

BAY CITY, Mich. — Asserting arguments on issues including res judicata and statutes of limitations, an insurer that issued dairy revenue protection (DRP) coverage has filed a reply brief in its suit for compensatory damages for losses it reports incurring “due to the loss of reinsurance” it attributes to “the acts, errors, and omissions of” an insurance agency and the agency’s employee.
July 16, 2025
U.S., Former Execs Brief 2nd Circuit Cross-Appeals In Securities Fraud Case

NEW YORK — Wrapping up briefing in consolidated cross-appeals in a securities fraud case, the federal government urged the Second Circuit U.S. Court of Appeals to reverse certain judgments in the long-running litigation and order resentencing for all three former hedge fund executives whom federal juries convicted in connection with the so-called “Black Elk” scheme that involved reinsurers.
July 16, 2025
Insurer Says No Further Coverage Owed For Underlying Silica Bodily Injury Suits

NEW YORK — In a complaint filed in New York federal court, an insurer says it owes no further coverage to an insured for underlying silica bodily injury lawsuits filed against the insured because coverage is afforded under only one of its policies and that coverage was exhausted when the insurer funded a settlement for one of the underlying suits.
July 15, 2025
Insured Appeals Denial Of Motion For Relief From Judgment In Coronavirus Suit

ELIZABETH CITY, N.C. —A hotel and restaurant owner insurer notified a North Carolina federal court that it is asking the Fourth Circuit U.S. Court of Appeal to review the court’s recent denial of its motion for relief from a 2021 judgment dismissing its breach of contract and bad faith lawsuit arising from the coronavirus pandemic.
July 15, 2025
PHL Rehabilitator To Propose Moratorium Modifications Before End Of July

WATERBURY, Conn. — In a supplement to his second accounting and status report, the rehabilitator of PHL Variable Insurance Co. told a Connecticut court that by the end of July, he intends to file a motion to modify a moratorium order that affects payments of benefits or investment obligations for policies issued by PHL.
July 15, 2025
Pollution Exclusion Bars Coverage For Contamination Suit, Insurer Contends

PITTSBURGH — No coverage is owed for an environmental contamination suit filed against an insured because the pollution exclusions in the insured’s commercial general liability policies bar coverage, an insurer says in a complaint filed in Pennsylvania federal court.
July 14, 2025
9th Circuit Affirms Dismissal Of Driver’s Claim For Larger COVID-19 Refunds

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed the dismissal of a driver’s class action against her insurer, GEICO, for violating California’s unfair competition law (UCL) by providing drivers an insufficient rebate on premiums after the COVID-19 pandemic, finding that the insurer was protected by the “‘safe harbor’” doctrine as the state insurance commissioner approved its rebate amounts.