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Mealey's Insurance

  • November 06, 2025

    Insured Says 11th Circuit Panel Overlooked Evidence In Environmental Cleanup Suit

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel should grant rehearing in a contamination cleanup suit stemming from the release of petroleum and other contaminants from an underground storage tank at a gas station operated by the insured because the panel overlooked evidence showing that the insurer was not prejudiced by the insured’s late notice, the insured says in a Nov. 5 petition for panel rehearing.

  • November 06, 2025

    Earth Movement, Settling Exclusions Bar Coverage For Insured’s Property Damage

    NEW HAVEN, Conn. — No coverage is owed to an insured for the settling of its commercial building, discovered after thousands of gallons of water were released from a broken water line, because the policy’s earth movement exclusion and settling exclusion bar coverage for the damages, a Connecticut federal judge said in granting the insurer’s motion for summary judgment.

  • November 05, 2025

    No Coverage Owed For Well Contamination Class Action, Missouri Panel Says

    KANSAS CITY, Mo. — An insured is not entitled to coverage for the settlement of an underlying class action stemming from the insured’s failure to warn the underlying class plaintiffs about contamination discovered at the insured’s site because the underlying suit does not allege claims that occurred during the applicable policies’ periods, a Missouri appeals court said Nov. 4 in affirming a trial court’s ruling.

  • November 04, 2025

    Ongoing Damage Exclusions Not Enforceable In Water Damage Defects Suit, Judge Says

    NEWARK, N.J. — Exclusions for preexisting injury or damage and continuing or ongoing damage are unenforceable under New Jersey law and public policy in construction defect coverage cases involving continuous or progressive damage because progressive damage, such as damage caused by water infiltration stemming from construction defects, can progress undetected over time and warrants coverage across all policy years, a New Jersey state court judge said in granting the insureds’ motion for partial summary judgment on the applicability of the exclusions.

  • November 04, 2025

    Judge Awards Insured $348,000 In Asbestos Indemnity Coverage Case

    NEW ORLEANS — A federal judge in Louisiana, declining to reconsider his decision holding an insurer liable for defense costs in an asbestos case, said he would award $348,000 for breach of contract but rejected arguments that the insurer’s conduct constituted bad faith or misrepresentations about the policy.

  • October 29, 2025

    Pollution Exclusion Applies To 6 Remaining Sites At Issue In Coverage Dispute

    NEW YORK — A New York justice granted a motion for summary judgment filed by two insurers in an environmental contamination coverage suit after determining that the pollution exclusion in the various policies at issue bars coverage for environmental contamination at six remaining sites for which coverage was sought.

  • October 27, 2025

    Pollution Exclusion Bars Coverage For Rat Bite Fever Lawsuit, Insurer Says

    FORT LAUDERDALE, Fla. — No coverage is owed for an underlying lawsuit filed by a tenant of an insured who alleges that she and her child sustained bodily injuries as a result of a rat infestation in her rental unit because the policy’s organic pathogens exclusion and total pollution exclusion bar coverage for the underlying suit, an insurer says in an Oct. 24 complaint filed in Florida federal court.

  • October 23, 2025

    Underlying Toxic Exposure Suits Constitute 1 Occurrence, Federal Judge Says

    COVINGTON, Ky. — Noting that the exposure to allegedly toxic food flavoring products is similar to asbestos exposure, a Kentucky federal judge determined that the manufacture of the food flavoring products, which allegedly caused individuals to suffer from pulmonary issues, constitutes only one occurrence.

  • October 23, 2025

    Question Of Fact Exists As To Cause Of Water, Mold Damage, Federal Judge Says

    COOKEVILLE, Tenn. — An insured’s breach of contract claim in a water and mold damage coverage suit will proceed because a question of fact exists regarding whether the damages were caused by a long-term water leak or a sudden and accidental water leak, a Tennessee federal judge said in denying the insured’s motion for partial summary judgment.

  • October 22, 2025

    Louisiana High Court Won’t Review Asbestos Liability Row With Guaranty Association

    NEW ORLEANS — The Louisiana Supreme Court denied a petition for a writ of certiorari filed by the Louisiana Insurance Guaranty Association (LIGA) seeking review of an appellate court’s reversal of a ruling granting summary judgment to an insurer and to LIGA but denying a motion for partial summary judgment filed by family members in a dispute over their deceased relative’s death purportedly from asbestos exposure.

  • October 21, 2025

    Pollution Exclusion Bars Coverage For Remediation Costs, Judge Says

    ALBUQUERQUE, N.M. — No coverage is owed for investigation and remediation costs as a result of contamination discovered at and near the site of an insured dry cleaning business because the pollution exclusion bars coverage, a New Mexico federal judge said in partially granting an insurer’s motion for summary judgment.

  • October 21, 2025

    Insurers Voluntarily Dismiss Silica Coverage Suit After Home Depot Withdraws Tender

    LOS ANGELES — Two insurers filed a notice of voluntary dismissal in California federal court after Home Depot U.S.A. Inc. withdrew its request for coverage for underlying bodily injury lawsuits seeking damages as a result of silica exposure from countertops manufactured by an insured and sold and marketed by Home Depot.

  • October 20, 2025

    Bad Faith Claim Against Insurers In Chemical Exposure Suit Barred By Ohio Precedent

    CINCINNATI — A district court did not err in granting summary judgment in favor of two insurers on a bad faith claim in a coverage dispute stemming from the settlement of a chemical exposure lawsuit filed against the insured because the insurers’ settlement of the underlying suit within the policies’ limits bars the insured from asserting a bad faith claim pursuant to Ohio precedent, the Sixth Circuit U.S. Court of Appeals said.

  • October 20, 2025

    Insured’s Late Notice Bars Coverage For Contamination Cleanup Costs, Panel Says

    ATLANTA — The 11th Circuit U.S. Court of Appeals affirmed a district court’s ruling that no coverage is owed to an insured for contamination cleanup costs stemming from the release of petroleum and other contaminants from an underground storage tank at a gas station, agreeing with the lower court that the insured’s late notice was prejudicial to the insurer.

  • October 20, 2025

    Chemical Company Says Settlement Reached In Coverage Suit Arising From Explosion

    BEAUMONT, Texas — A sustainable chemical company insured filed a notice in a Texas federal court indicating that it has reached a settlement with its insurer of its 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.

  • October 20, 2025

    Insured’s Water Damage Coverage Suit Cannot Proceed Based On Failure To Cooperate

    HOUSTON — An insured’s breach of contract and extracontractual claims against her homeowners insurer cannot proceed because the insured breached the policy’s duty to cooperate provision by failing to provide the insurer with requested documents needed to adjust her water damage claim, a Texas federal judge said in granting the insurer’s motion for summary judgment.

  • October 14, 2025

    Insurance Holding Company Sues Captive Operator, Seeks Preliminary Injunction

    JACKSONVILLE, Fla. — An insurance holding company seeks a preliminary injunction in a Florida federal court against a captive operator and its associated entities it accuses of counterfeiting its name and trademarks to sell fake commercial insurance policies through two purported captive programs; in a concurrent complaint, the insurance holding company alleges direct, contributory and vicarious trademark infringement under the Lanham Act and unfair competition under several state common laws and seeks declaratory and injunctive relief.

  • October 09, 2025

    Liquidation Trust Files Complaint, Says Insurers Owe Coverage For Talc Claims

    WILMINGTON, Del. — More than 30 insurers are obligated to provide coverage for underlying personal injury lawsuits stemming from exposure to asbestos in talc products because there are no exclusions or limitations in the policies that preclude coverage for the underlying claims, the liquidation trust for Avon Products Inc. and its debtor affiliates says in a complaint filed in Delaware Superior Court.

  • October 10, 2025

    Delaware Bankruptcy Judge Confirms Avon Entities’ Liquidation Plan

    WILMINGTON, Del. — A Delaware federal bankruptcy judge has issued an order confirming the fourth amended Chapter 11 plan of liquidation for the U.S. divisions of cosmetics giant Avon after the debtors and certain insurers filed plan revisions at the direction of the bankruptcy judge involving the insurers’ rights and the operation of an asbestos personal injury trust.

  • October 09, 2025

    Judge Refuses To Reconsider Arbitration Ruling In Insured’s Contamination Suit

    PORTLAND, Ore. — An Oregon federal judge refused to reconsider an opinion granting a motion to compel arbitration and staying an insured’s suit filed against its excess liability insurers seeking costs for environmental contamination cleanup because the insured failed to meet its burden of showing that the court clearly erred in finding that the Federal Arbitration Act (FAA) applies to the excess policies’ arbitration provision.

  • October 09, 2025

    Toxic Exposure, Contamination Suit Dismissed Following Parties’ Settlement

    GREENBELT, Md. — A Maryland federal judge dismissed consolidated suits stemming from an insurance coverage dispute for underlying toxic exposure and environmental contamination lawsuits after the parties settled all claims at issue.

  • October 09, 2025

    U.S. Supreme Court Seeks Response In South Carolina Asbestos Receivership Case

    WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 8 requested responses to a petition challenging a South Carolina justice’s appointment of a receiver over the insurance assets of a solvent Canadian company as a sanction for its failure to participate in discovery in an asbestos action.

  • October 08, 2025

    High Court Asks Insurer To Respond To Insured’s Petition In PFAS Exposure Suit

    WASHINGTON, D.C. — The U.S. Supreme Court requested that an insurer file a response brief to an insured’s petition for a writ of certiorari seeking review of the Sixth Circuit U.S. Court of Appeals’ finding that a district court erred in remanding a declaratory judgment claim and retaining jurisdiction over breach of contract and bad faith claims in a dispute over coverage for underlying per- and polyfluoroalkyl substances (PFAS) exposure suits.

  • October 07, 2025

    No Coverage For Drain Line Piping That Could Fail In Future, Judge Says

    SAN ANTONIO — A Texas federal judge granted an insurer’s motion for summary judgment on a portion of an insured’s breach of contract claim related to coverage for repair costs incurred following a water leak at an insured restaurant because the policy at issue does not require the insurer to pay for drain line piping that may fail in the future.

  • October 07, 2025

    N.Y. Justice Allows Insured To Serve Subpoena In Secondhand Smoke Coverage Suit

    NEW YORK — An insured is permitted to serve a subpoena on the New York State Department of Financial Services and to compel the department to produce all complaints filed against a homeowners insurer by insureds for wrongful denial of coverage of claims related to secondhand smoke intrusion, a New York County Supreme Court justice said.