Mealey's California Insurance
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October 23, 2023
Federal Judge Dismisses Claims That Insurer Has Duty To Defend Battery Suit
SANTA ANA, Calif. — A federal judge in California dismissed without prejudice breach of contract and other claims against an insurer that denied liability for two insurance policy holders accused of battery in a lawsuit following an altercation.
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October 17, 2023
Judge Dismisses Insurer’s Complaint Against Amber Heard In Defamation Coverage Suit
LOS ANGELES — A federal judge in California adopted a tentative ruling dismissing without leave to amend an insurer’s second amended complaint seeking a declaratory judgment that it has no duty to defend or indemnify Amber Heard for a defamation judgment awarded to Johnny Depp.
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October 17, 2023
Settlement Agreement Bars Insured From Reopening D&O Coverage Suit, Panel Affirms
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals held that the plain language of a settlement agreement between an insured and its directors and officers liability insurer bars the insured from reopening its coverage dispute against the insurer, affirming a lower federal court’s dismissal of the insured’s breach of contract and declaratory relief lawsuit without leave to amend.
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October 16, 2023
Late Exclusion Bid Follows Final OK Of Life Insurance COI Increase Settlement
PHILADELPHIA — Following final approval of a class settlement of two similar cases over universal life insurance policy cost of insurance (COI) increases, two groups on Oct. 13 asked a Pennsylvania federal court to let them request that 52 policies be excluded from the settlement class even though the opt-out deadline has passed.
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October 12, 2023
Judge Rules For Insurer In Hotel’s Coverage Suit Over Theft, Vandalism Claims
LOS ANGELES — A California judge granted a businessowners insurer’s motion for summary judgment in a hotel owner insured’s breach of contract and bad faith lawsuit seeking coverage for its losses arising from alleged theft and vandalism that occurred following its shutdown of operations in response to the coronavirus pandemic, finding that the policy’s vacancy provision bars coverage and estoppel does not apply.
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October 10, 2023
California Federal Judge Finds Contractor Cannot Bring Bad Faith Claim
LOS ANGELES — Because there has been no excess judgment in underlying arbitration proceedings stemming from a general contractor’s alleged failure to properly secure a building under construction in advance of a hurricane, the contractor cannot state a claim against a commercial general liability insurer for bad faith, a federal judge in California ruled in granting the insurer’s motion for partial summary judgment on the claim.
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October 10, 2023
Citing Mudpie, 9th Circuit Affirms Virus Exclusion Bars Coverage For COVID-19 Losses
PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of insureds’ lawsuit seeking coverage for their losses arising from the coronavirus pandemic and subsequent governmental orders, finding that, as in Mudpie, Inc. v. Travelers Cas. Ins. Co. of Am., the insureds failed to plausibly assert that “the efficient cause” of their losses was anything other than the spread of the COVID-19 virus throughout California.
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October 10, 2023
Insured Claims Property Insurer Owes Additional Coverage For Water Damage
LOS ANGELES — An insured filed suit in California state court against its property insurer, seeking a declaration that the insurer owes additional coverage to repair a property damaged when water pipes burst in the building and alleging that the insurer breached its contract and acted in bad faith by refusing to release additional fund for repairs.
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October 10, 2023
9th Circuit Panel Won’t Revive $75M ERISA Suit Against Insurers Under Bristol
PASADENA, Calif. — In an unpublished memorandum disposition rejecting the appellant’s reliance on Bristol SL Holdings, Inc. v. Cigna Health & Life Ins. Co., a Ninth Circuit U.S. Court of Appeals panel ruled in part that a debt collector “lacks derivative authority to bring [Employee Retirement Income Security Act] claims as a second assignee.”
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October 06, 2023
IP Exclusion Bars Coverage For Misappropriation Of Likeness Claim, Panel Affirms
LOS ANGELES — A California appeals panel on Oct. 5 affirmed a lower court’s summary judgment ruling in favor of a commercial general liability insurer in its declaratory judgment lawsuit disputing coverage for a lawsuit brought against its insured, finding that the policy’s intellectual property exclusion bars coverage for the underlying misappropriation of likeness claim.
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October 05, 2023
Waiver Provision Bars Insurer’s Equitable Subrogation Claim, California Panel Says
LOS ANGELES — A California appeals panel affirmed a lower court’s summary judgment ruling in favor of Southern California Edison Co. (SCE) in an insurer’s equitable subrogation lawsuit alleging that a wildfire that resulted in $25 million in paid claims was the sole result of SCE’s negligence, finding that the subcontract’s waiver provision barred the insurer’s claims.
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October 04, 2023
Disability Claimant’s Suit Dismissed Following Settlement Reached During Mediation
SAN FRANCISCO — A California federal judge dismissed a disability claimant’s suit seeking a declaration that she is entitled to long-term disability (LTD) benefits after the claimant and the disability insurer agreed to a settlement during a mediation proceeding.
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October 03, 2023
California Panel Reverses Ruling In Insurers’ Favor In Coronavirus Coverage Suit
LOS ANGELES — A California appeals panel on Oct. 2 reversed and remanded a lower court’s order granting a group of insurers’ motion for judgment on the pleadings in a real estate investment firm’s coronavirus coverage dispute, rejecting the insurers’ argument that the pollution exclusion barred coverage.
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October 02, 2023
Panel: Evidence Supports Jury Verdict That Insured Not Owed Additional Benefits
SACRAMENTO, Calif. — A California appeals panel held that “substantial evidence” supports a jury verdict that an insured is not entitled to additional compensation for her loss of personal property, affirming a lower court’s denial of the insured’s four post-verdict motions in a homeowners coverage dispute arising from alleged theft and property damage.
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September 26, 2023
Panel Affirms Demurrer In Entertainment Conglomerate’s Coronavirus Coverage Suit
LOS ANGELES — A California appeals panel affirmed a lower court’s ruling that sustained commercial property insurers’ demurer to an entertainment conglomerate insured’s complaint seeking coverage for its economic losses arising from the coronavirus, finding that, until the U.S. Supreme Court provides guidance in pending cases, it sides with the vast majority of courts that have ruled that direct physical loss or damage to property is a prerequisite for coverage.
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September 25, 2023
Questions Of Fact Exist Regarding When Insureds Knew Of Water Leak Problems
SANTA ANA, Calif. — A California federal judge denied a property insurer’s motion for summary judgment on breach of contract and bad faith claims after determining that questions of fact exist regarding when the insureds became aware of a water leak problem within a hotel they purchased and whether the insurer acted reasonably in handling the insureds’ claim for coverage.
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September 21, 2023
Disability Claimant Met Burden Of Showing She Remains Disabled, Judge Says
OAKLAND, Calif. — A disability claimant met her burden of proving by a preponderance of the evidence that she remains disabled from performing the duties of any occupation, a California federal judge said in granting the claimant’s motion for judgment and in denying the disability insurer’s motion for judgment.
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September 20, 2023
Judgment Entered Against Insured In Fraud Dispute Over $841,881 In Benefits
SAN FRANCISCO — A California federal judge on Sept. 19 entered default judgment against an insured who received more than $800,000 for long-term care benefits under a rider to her life insurance policy, finding that default judgment is appropriate due, in part, to no “excusable neglect” on the part of the insured in her failure to appear.
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September 18, 2023
Insured Sufficiently Alleged Insurer Was A Party To Commercial Property Policy
FRESNO, Calif. — A California federal judge denied a motion to dismiss filed by two insurers after determining that an insured’s breach of contract, bad faith and unfair business practices claims can proceed against one of the insurers because the insured nursing home sufficiently alleged that the insurer was a party to a commercial property insurance policy.
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September 15, 2023
California High Court Won’t Review UCL Mental Health Coverage Ruling
SACRAMENTO, Calif. — The California Supreme Court denied a petition for review after a lower court published its opinion finding that two insureds adequately alleged standing under the California unfair competition law (UCL) and that the way the insurer handles mental health care results in shortages of that care.
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September 13, 2023
Judge Dismisses Elder Abuse Suit Against LTC Insurer, Cites Inadequate Pleading
SAN FRANCISCO — A California federal judge dismissed a breach of contract and elder abuse suit filed against a couple’s long-term care (LTC) insurer for its failure to cover the wife’s claim for benefits, finding that though the amended complaint contains “a bundle of allegations that might constitute plausible causes of action with some additional facts,” the amended complaint does not currently suffice to “allow this case to proceed.”
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September 13, 2023
No Coverage Owed For Restaurants’ Coronavirus Losses, 9th Circuit Affirms
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of a restaurant owner insured’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses stemming from the coronavirus pandemic, finding that the policy’s virus exclusion bars coverage.
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September 12, 2023
Judicial Estoppel Bid Doesn’t Stop Transfer Of Reinsurer’s Breach Suit
SAN FRANCISCO — Concluding that judicial estoppel doesn’t apply and a reinsurer failed to meet its “burden of showing why the court should not transfer the case to the agreed-upon forum,” a California federal judge granted the defendants’ motion to transfer the case involving allegations of a fraudulent scheme to inflate provisional commissions and breach of various agreements.
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September 11, 2023
Amber Heard Seeks Dismissal Of Insurer’s Complaint In Defamation Coverage Suit
LOS ANGELES — Amber Heard moved to dismiss an insurer’s second amended complaint seeking a declaratory judgment that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.
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September 08, 2023
Federal Judge Dismisses TCPA Coverage Suit After Yahoo, Insurer Reach Settlement
SAN JOSE, Calif. — One day after Yahoo! Inc. and its commercial general liability insurer filed a notice of settlement, a federal judge in California dismissed with prejudice Yahoo’s lawsuit seeking coverage for underlying class actions alleging that it violated the Telephone Consumer Protection Act (TCPA).