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Mealey's Insurance

  • August 18, 2025

    No Coverage Owed For Underlying Suit Seeking Indemnity For Asbestos Claims

    COLUMBIA, S.C. — Breach of contract and bad faith claims alleged against an insurer and its claims adjuster by an insured seeking coverage for an underlying suit seeking indemnification for asbestos bodily injury suits cannot proceed because the claims adjuster had no contract with the insured and the underlying suit does not seek damages caused by property damage or bodily injury as required by the policy at issue, a South Carolina federal judge said in granting the insurer and claims adjusters’ motion to dismiss.

  • August 14, 2025

    Pa. Federal Judge Dismisses Bad Faith Claim In Dust Contamination Coverage

    PHILADELPHIA — A Pennsylvania federal judge on Aug. 13 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds, who are seeking coverage for an infiltration of dust in their home, failed to show that the insurer’s denial of coverage based on the policy’s exclusions for pollution and defective workmanship was unreasonable.

  • August 11, 2025

    Judge Won’t Certify Immediate Appeal In Asbestos Insurance Spat

    NEW ORLEANS — A federal judge in Louisiana said that while an immediate appeal might alleviate the need for trial later this year on claims between a settled asbestos defendant and its insured, the burden posed by any appeal outweighs that of the anticipated one-day trial from which an appeal could be taken.

  • August 11, 2025

    Questions Of Fact Exist On Whether Mold Exclusion Applies, Judge Says

    NEW ORLEANS — A breach of contract claim in a dispute over coverage for mold and other damage caused by a hurricane will proceed against a homeowners insurer because questions of fact exist regarding whether the insured submitted a timely proof of loss and whether the mold exclusion applies as a bar to coverage, a Louisiana federal judge said in denying the insurer’s motion for summary judgment.

  • August 11, 2025

    Insured Failed To Support Breach Of Contract Claim In Black Mold Coverage Suit

    ABERDEEN, Miss. — A Mississippi federal judge granted a homeowners insurer’s motion for summary judgment on an insured’s claims in a coverage dispute over black mold growth in the insured’s home after determining that the insured failed to show what portion of the policy the insurer allegedly breached and failed to show that the insurer did not have a reasonable basis for its coverage decision.

  • August 11, 2025

    Judge Refuses To Dismiss Chemical Company’s Coverage Suit Arising From Explosion

    BEAUMONT, Texas — A federal judge in Texas denied an insurer’s motion to dismiss a sustainable chemical company’s breach of contract and declaratory judgment lawsuit seeking to obtain coverage for the full value of its business interruption loss caused by an explosion at a Texas plant, finding that the company sufficiently pleaded a right to sue the insurer “based on an implied agreement outside the Reinsurance Agreement.”

  • August 08, 2025

    Bad Faith, Unfair Trade Practices Claims Cannot Proceed Against Homeowners Insurer

    RALEIGH, N.C. — An insured’s claims for bad faith and violations of North Carolina’s laws regulating unfair claims practices and deceptive trade practices cannot proceed against a homeowners insurer because the insured’s complaint asserts only that there was a reasonable disagreement about coverage for wet rot damage caused by a plumbing system leak in the insured’s home, a North Carolina federal magistrate judge said in granting the insurer’s motion for judgment on the pleadings.

  • August 06, 2025

    Appraisal Proceeding Cannot Be Reopened To Consider Costs For Asbestos Remediation

    GREENBELT, Md.  — A homeowners insurer is not required to cover the costs for asbestos remediation in its insureds’ home because an appraisal award cannot be amended, and the appraisal proceeding cannot be reopened pursuant to the policy’s language providing that an appraisal award is final, a Maryland federal judge said in granting summary judgment in favor of the insurer.

  • August 05, 2025

    Insured’s Counterclaim In Dispute Over Defective Pool Shells Dismissed

    AUSTIN, Texas — A Texas federal judge adopted a magistrate judge’s recommendation to dismiss an insured’s counterclaim for promissory estoppel in a dispute over coverage for defective pool shells damaged by a chemical reaction between alkalis in the cement and silica, overruling the insured’s objection that the magistrate judge misapplied the legal standard governing promissory estoppel claims.

  • August 05, 2025

    Pollution Exclusion Does Not Bar Coverage For EtO Claims, Insured Says

    PHILADELPHIA — A pollution exclusion does not bar coverage for underlying claims stemming from the contamination of ice cream with ethylene oxide (EtO) because the excess insurer’s policy states that the pollution exclusion will not apply if a loss is covered by the policy underlying the excess insurer’s policy, an insured says in a complaint filed in Pennsylvania court.

  • August 04, 2025

    Professional Liability Insurer Announces Judgment Satisfied In Mold Coverage Dispute

    LAS VEGAS — A contractor’s professional and indemnity liability insurer filed a notice in a federal court in Nevada indicating that a broker’s professional liability insurer has satisfied a judgment in its favor in a coverage dispute arising from mold and moisture-related damage.

  • 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 29, 2025

    Insureds’ Water, Mold Damage Suit Dismissed Following Parties’ Settlement

    CHICAGO — An Illinois federal magistrate judge dismissed an insureds’ breach of contract and bad faith lawsuit filed against a homeowners insurer seeking coverage for water and mold damage after the parties notified the court that a settlement was reached.

  • July 28, 2025

    Duty To Indemnify Owed For Settlement, Insured Says In Newly Filed Complaint

    DALLAS — An insurer owes a duty to indemnify an insured for the settlement of an underlying suit filed against the insured because there is no evidence that the damages in the underlying suit were caused by pollutants, the insured contends in a July 25 complaint filed in Texas federal court.

  • July 25, 2025

    Final Judgment Entered In Asbestos Coverage Dispute Per Parties’ Stipulation

    FORT WORTH, Texas — A Texas federal judge entered final judgment in an asbestos coverage dispute after the insured and three of its excess insurers stipulated to dismiss all remaining claims that were left unresolved by the court in the parties’ motions for summary judgment.

  • July 25, 2025

    Insureds Sufficiently Support Bad Faith Claim In Water Damage Suit, Judge Says

    PHILADELPHIA — A bad faith claim alleged by insureds in a water damage coverage dispute can proceed because the insureds’ amended complaint alleges that the homeowners insurer’s denial of coverage was not reasonable based on the lack of evidence that the water damage was caused by a continuous leak, an excluded cause of loss, a Pennsylvania federal judge said July 24 in denying the insurer’s motion to dismiss the bad faith claim.

  • July 22, 2025

    No Coverage Owed To Insured, Judgment Properly Entered For Insurer, Panel Says

    SEATTLE — A district court properly entered summary judgment in favor of an insurer on breach of contract and extracontractual claims because no coverage is owed to the insured for an underlying property damage and environmental cleanup suit as the underlying suit did not arise out of an occurrence as required by the policies at issue, the Ninth Circuit U.S. Court of Appeals said July 21.

  • 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

    Insurer Has Duty To Defend, Indemnify Insured For Chemical Exposure Suit

    INDIANAPOLIS — An insurer owes a duty to defend and indemnify its insured for an underlying class action suit filed in Taiwan by factory workers who claim that they suffered bodily injuries after being exposed to organic solvents at a factory partially owned by the insured because the insurer failed to show that the known loss doctrine bars coverage for the suit, the Indiana Court of Appeals said.

  • July 22, 2025

    Issues Of Fact Preclude Judgment In Water, Mold Damage Suit, Magistrate Judge Says

    CHICAGO — An Illinois federal magistrate judge partially denied a motion for summary judgment filed by insureds in a water and mold damage coverage dispute after determining that “too many issues of material fact” exist regarding whether the homeowners insurer breached its contract or acted unreasonably in handling the insureds’ claim.

  • July 21, 2025

    Florida Panel Affirms Judgment For Now-Insolvent Insurer In Breach Of Contract Row

    WEST PALM BEACH, Fla. — Without providing explanation, a Florida appellate court affirmed a lower court’s grant of summary judgment for a now-insolvent insurer in homeowners’ breach of contract suit against the insurer alleging that it failed to adequately cover the costs of water damage to the insureds’ home.

  • July 18, 2025

    Avon Entities, Asbestos Claimants Committee Advocate For Bankruptcy Plan Approval

    WILMINGTON, Del. — A Delaware federal bankruptcy court should confirm the “almost entirely consensual” Chapter 11 liquidation plan of the U.S. divisions of cosmetics giant Avon over the objections of some insurers because the plan “distributes Estate assets to creditors in a fair, efficient, and expeditious manner,” the debtors say in a July 17 brief in support of confirmation.

  • 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 Settles With 1 Insurer In Asbestos Coverage Suit; Claims Dismissed

    PITTSBURGH — A Pennsylvania federal judge granted a joint motion to dismiss all claims against an insurer in a dispute over coverage for underlying asbestos bodily injury claims after the insured and the insurer notified the judge that a confidential settlement was reached between the two parties.

  • 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.