Mealey's Insurance Pleadings

  • April 04, 2024

    Insured Appeals Court’s Ruling That Bump-Up Exclusion Bars D&O Coverage

    ALEXANDRIA, Va. — An insured on April 3 filed a notice of appeal in a Virginia federal court asking the Fourth Circuit U.S. Court of Appeals to review the lower court’s holding that a “bump-up” exclusion unambiguously precludes directors and officers liability insurance coverage for the $90 million settlement of two underlying lawsuits arising from a 2015 merger.

  • April 04, 2024

    Insurer Says District Court Properly Found Coverage Is Barred For Cleanup Costs

    ATLANTA — A district court’s ruling that no coverage is owed to an insured for contamination cleanup costs caused by the release of petroleum and other contaminants from an underground storage tank at a gas station must be affirmed because the district court correctly found that the claim for contamination cleanup costs incepted prior to the issuance of the policy and is, therefore, barred from coverage, the insurer says in its appellee brief filed in the 11th Circuit Court of Appeal.

  • April 04, 2024

    Coverage Owed For Mold Damages, Insureds Reiterate In Corrected Reply Brief

    ATLANTA — In a corrected reply brief, filed with the permission of the 11th Circuit U.S. Court of Appeals, insureds reiterate their argument that a district court erred in finding that no coverage is owed for mold damage discovered in an insured hotel because the policy at issue provides coverage for losses caused by a construction defect even if the cost to fix the defect is not covered.

  • April 02, 2024

    Parties Refile Stipulation Of Dismissal In Worker Injury Coverage Dispute

    NEW YORK — Per a New York federal judge’s order, a subcontractor, a property owner and a construction manager on April 1 refiled their stipulation of dismissal of the claims between them in the subcontractor’s lawsuit arising from personal injury actions brought by two of its workers.

  • March 29, 2024

    Insurer Defends Motion Seeking Appellate Review Of COVID-19 Coverage Dispute

    SEATTLE — Replying to the University of Washington’s opposition to its motion to certify issues to the Washington Court of Appeals for discretionary review and to stay the university’s lawsuit seeking coverage for losses incurred by its medical and athletic properties due to the COVID-19 pandemic, an insurer argues that it is not seeking to delay the case but just wants “clear guidance” on the threshold legal question of whether commercial property insurance policies insure business income losses that are related to a pandemic.

  • March 28, 2024

    GEICO Sues Radiology Clinics, Owner, Seeking More Than $290,000 For No-Fault Fraud

    BROOKLYN, N.Y. — GEICO filed a complaint in New York federal court against multiple radiology clinics and their owner, seeking to recover $290,000 it paid on alleged fraudulent billing for services that were medically unnecessary and “otherwise non-reimbursable” and were purportedly provided to auto accident victims insured by GEICO.

  • March 27, 2024

    Insurer Seeks High Court Review Of Remanded Class Action Challenging Its Practices

    WASHINGTON, D.C. — An insurer filed a petition for a writ of certiorari asking the U.S. Supreme Court to review the Seventh Circuit U.S. Court of Appeals’ finding that a class action challenging its practices fits within the internal affairs and home state controversy exceptions to the Class Action Fairness Act (CAFA).

  • March 26, 2024

    Companies Appeal Finding They Are Owed No Defense From Subcontractor’s Insurer

    LOS ANGELES — A building owner and a general contractor have appealed a California judge’s decision dismissing their lawsuit seeking payment from a subcontractor’s insurer after the judge agreed with the insurer that coverage was barred by a policy exclusion related to damage caused by the subcontractor’s faulty work.

  • March 25, 2024

    Insurer Says Lower Court Erred In Placing Burden On Insurer In Pollution Dispute

    SAN FRANCISCO — A district court erred in placing the burden on an insurer to prove that a pollution exclusion barred coverage for underlying environmental contamination lawsuits because the burden should have been placed on the insureds to prove that the exclusion did not apply as a bar to coverage, an insurer argues in its March 22 appellant brief filed in the Ninth Circuit U.S. Court of Appeals.

  • March 22, 2024

    Insureds Urge 5th Circuit To Rehear Arbitration Row In $7M Hurricane Ida Dispute

    NEW ORLEANS — Two New Orleans property owners urge the Fifth Circuit U.S. Court of Appeals to grant panel or en banc rehearing of their appeal challenging the arbitrability of their claims for $7 million in damages caused by Hurricane Ida and for bad faith against a group of foreign and domestic insurers.

  • March 21, 2024

    AFFF Maker Seeks Ruling That Pollution Exclusions Do Not Bar Liability Claims

    CHARLESTON, S.C. — A company that makes the firefighting agent known as aqueous film-forming foam (AFFF) has moved in South Carolina federal court for partial summary judgment against a group of insurers asking the court to find that the product liability and common-law causes of action alleging bodily injury and/or property damage that have been asserted against the company in the multidistrict litigation are not excluded from coverage by pollution exclusions.

  • March 20, 2024

    Oral Arguments Held In NRA’s Free Speech Suit Arising From Insurance Program

    WASHINGTON, D.C. — The U.S. Supreme Court heard oral arguments on the National Rifle Association of America (NRA)’s petition seeking review of the Second Circuit U.S. Court of Appeals’ finding that it failed to plausibly assert that the former superintendent of the New York State Department of Financial Services (DFS) unconstitutionally threatened or coerced an insurer or other entities to stifle its speech, addressing the NRA’s contention that it plausibly pleaded a First Amendment claim because the superintendent “chose coercion over persuasion.”

  • March 19, 2024

    Amended Complaint Proposed In Delaware Suit Over Alleged Asset Dissipation

    WILMINGTON, Del. — Plaintiffs in a suit over the “Agera transactions” — a complex asset-swap arrangement that they allege resulted in the “dissipation of at least $250 million” — have moved in Delaware Chancery Court for leave to amend the complaint “to clarify the record and make minimal amendments.”

  • March 15, 2024

    11th Circuit Tosses Construction Insurance Appeal, Finds It Lacks Jurisdiction

    ATLANTA — A panel of the 11th Circuit U.S. Court of Appeals dismissed an appeal brought by a subcontractor’s insurer arguing that it owed no duty to defend or indemnify its insured due to policy exclusions, finding that the judgment the insurer appealed was not final because it did not dispose of all claims against all parties.

  • March 14, 2024

    Farmer, Regulators Brief Determination Row In Crop Insurance Case

    LUBBOCK, Texas — In competing motions for summary judgment and judgment on the administrative record in a crop insurance case, a farmer and federal regulators are disputing whether an agency applied the right standard and correctly considered expert testimony in concluding that the farmer failed to follow good farming practices (GFP).

  • March 13, 2024

    As Tax Penalty Row Over Microcaptives Nears Jury Trial, Parties Seek Exclusions

    FORT MYERS, Fla. — After a Florida federal judge denied motions for summary judgment and to preclude the testimony of three experts in consolidated cases involving promotion of purported microcaptive insurance companies, the parties asked the court to exclude certain evidence and terms from the approaching jury trial.

  • March 13, 2024

    Former CEO Of Modell’s Appeals Dismissal Of D&O Coverage Dispute

    NEW YORK —The former chief executive officer of the now bankrupt Modell’s Sporting Goods Inc. filed a notice in a New York federal court indicating that he is asking the Second Circuit U.S. Court of Appeals to review the court’s Feb. 8 ruling that granted a directors and officers liability insurer’s motion to dismiss his breach of contract and declaratory judgment lawsuit, challenging the lower court’s finding that the policy does not give him the right to block coverage for the company’s former chief financial officer’s $2.8 million settlement of an underlying adversary proceeding filed by the liquidating trustee.

  • March 13, 2024

    AT&T Retirees File Putative Class ERISA Suit Over Pension Risk Transfer Deal

    BOSTON — Asserting in part that “reinsurance of ‘Pension Risk Transfer’ liabilities in Bermuda poses unique risks to pensioners,” four AT&T Inc. retirees who participated in a defined-benefit pension plan filed a class complaint in Massachusetts federal court challenging a “de-risking” transaction under the Employee Retirement Income Security Act.

  • March 12, 2024

    Insurers Tell N.C. High Court To Apply 27-Year-Old Precedent To Coronavirus Dispute

    RALEIGH, N.C. — Insurers argued to the North Carolina Supreme Court that it should affirm an appeals court’s reversal of a lower court’s grant of partial summary judgment in favor of restaurant insureds in a COVID-19 coverage dispute, responding to the insured’s appellant argument that the phrase “physical loss or physical damage” includes loss of the physical use of property under the state’s “long-standing principles of insurance contract interpretation.”

  • March 12, 2024

    Insured Asks 3rd Circuit To Reject Insurers’ Late-Notice Argument In Asbestos Suit

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals should reject an attempt by insurers involved in an asbestos coverage suit to rewrite New Jersey’s late-notice law, an insured says in urging the Third Circuit to reverse a district court’s ruling entered in favor of the insurers.

  • March 12, 2024

    Judge Administratively Closes Suit Against Insurance Agent After Settlement Announced

    HARTFORD, Conn. — The same day parties announced that they reached a settlement “subject to the parties’ negotiation and execution of a mutually acceptable settlement agreement,” a federal judge in Connecticut administratively closed the insurer’s lawsuit alleging that an insurance agent’s failure to include exclusions in an insurance policy resulted in it paying more than $1 million in legal fees and expenses to settle an underlying worker injury lawsuit.

  • March 11, 2024

    Class Certification Bid Draws Opposition In DUFTA Case Involving Insurer

    WILMINGTON, Del. — Arguing in part that proposed class representatives “appear to be as unqualified as” one rejected in Gordon v. Sonar Capital Mgmt. LLC, defendants in a suit over an alleged scheme to strip capital from an insurance subsidiary on which many policyholders depend for long-term care (LTC) disability benefits urged the Delaware Chancery Court to deny certification of the proposed class.

  • March 08, 2024

    Claimant Says Additional LTD Benefits Are Owed Under Disability Plan

    PORTLAND, Maine — In a March 7 complaint filed in Maine federal court, a disability claimant maintains that she is entitled to unpaid long-term disability (LTD) benefits under a disability plan because she remains disabled under the terms of the plan.

  • March 08, 2024

    District Court’s Decision Should Be Affirmed, Disability Claimant Maintains

    PHILADELPHIA — A district court’s judgment in favor of a disability claimant should be affirmed because the court properly found that the plan’s termination of the claimant’s long-term disability (LTD) benefits was arbitrary and capricious and that the decision was inadequate for a number of reasons, the claimant says in an appellee brief filed in the Third Circuit U.S. Court of Appeals.

  • March 08, 2024

    Contractor: 11th Circuit Must Affirm Judge’s Denial Of Insurer’s Attorney Fees

    ATLANTA — A contractor tells the 11th Circuit U.S. Court of Appeals in a response brief that a Florida federal judge was correct to deny its insurer’s request for attorney fees in one of two ongoing appeals stemming from the federal judge’s finding that the contractor and a subcontractor were not entitled to a defense from the insurer due to the presence of a policy exclusion.

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