Mealey's Catastrophic Loss : Mealey's : Legal News & Analysis

Mealey's Catastrophic Loss

January 11, 2024
California Panel Denies NHL Insureds’ Petition For Review In COVID-19 Coverage Suit

SAN JOSE, Calif. — A California appeals panel denied a petition by the National Hockey League (NHL) and 19 league clubs seeking review of a lower court’s ruling in a coverage dispute for their losses resulting from the coronavirus pandemic, finding that the contamination exclusion barred coverage.
January 11, 2024
Alabama High Court Dismisses Insurer’s Appeal In Hurricane Sally Coverage Dispute

MONTGOMERY, Ala. — The Alabama Supreme Court dismissed a commercial property insurer’s appeal of a lower court’s order denying its motion to invoke the policy’s appraisal procedure in a Hurricane Sally coverage dispute, finding that there are outstanding coverage issues that would not be resolved by the appraisal process.
January 11, 2024
Judge: University’s Claims Forge At Least 1 Path To Coverage In Coronavirus Suit

SEATTLE — A Washington judge denied an insurer’s motion to dismiss the University of Washington’s lawsuit seeking coverage for losses allegedly incurred by its medical and athletic properties in the wake of the coronavirus pandemic, finding that the time element losses endorsement may establish coverage based on the insured’s alleged facts.
January 10, 2024
Louisiana Majority Refuses To Review Coverage Suit Over Hurricanes Laura, Delta

NEW ORLEANS — A majority of the Louisiana Supreme Court on Jan. 10 denied an insurer’s petition for a writ of certiorari seeking review of lower court’s rulings following a jury verdict in favor of insureds in a coverage dispute arising from Hurricanes Laura and Delta damage.
January 09, 2024
11th Circuit Denies Insurer’s Petition For Panel Rehearing In Hurricane Irma Suit

ATLANTA —The 11th Circuit U.S. Court of Appeals in a one-page order denied an insurer’s petition for panel rehearing in an appraisal dispute over Hurricane Irma damage.
January 09, 2024
Panel Affirms $502,172 Bad Faith Judgment Against Insurer In Hurricane Laura Suit

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals found no reversible error in a jury’s conclusion that an insurer acted in bad faith and underpaid its church insured for property damage that was caused by Hurricane Laura, affirming the trial court’s $502,172.16 award in favor of the insured for damages, penalties and fees.
January 09, 2024
Washington Panel Affirms Stay Of Subcontractor’s Pass-Through Coronavirus Claim

SEATTLE — A Washington appeals court panel on Jan. 8 held that a lower court did not abuse its discretion by staying a subcontractor’s pass-through coronavirus-related claim in its lawsuit against the port of Seattle, a prime contractor and their sureties pending final resolution of the prime contractor’s suit against the port, finding that the plain language of the subcontract explicitly waives the subcontractor’s right to sue under Washington’s Little Miller Act.
January 08, 2024
Magistrate: Summary Judgment Not ‘Ideal Vehicle’ For Insurer’s Damages Argument

FORT MYERS, Fla. —A federal magistrate judge in Florida on Jan. 5 denied an insurer’s motion for partial summary judgment in a condominium insured’s bad faith lawsuit seeking coverage for property damage caused by Hurricane Irma, finding that “summary judgment is not the ideal vehicle” for addressing the insurer’s arguments against the insured’s claim for damages.
January 08, 2024
New Jersey Panel Affirms Dismissal Of Wawa’s Coronavirus Coverage Dispute

TRENTON, N.J. — A New Jersey appeals court panel on Jan. 5 affirmed a lower court’s ruling dismissing with prejudice Wawa Inc.’s first amended complaint seeking coverage for its losses arising from the COVID-19 pandemic, finding that the court’s holdings and reasonings in Mac Prop. Grp., LLC v. Selective Fire & Cas. Ins. Co. apply to Wawa's commercial liability insurance policies and, therefore, no coverage is owed.
January 08, 2024
Insured Fails To Support Breach Of Contract, Bad Faith Claims, Federal Judge Says

NEW ORLEANS — A Louisiana federal judge dismissed an insured’s breach of contract and bad faith claims against his homeowners insurer after determining that the insured failed to provide sufficient facts showing that the insurer breached its contract and acted in bad faith in its adjustment of the insured’s claim for damages caused by Hurricane Ida.
January 05, 2024
Clothing Retailer Asks North Carolina High Court To Review COVID-19 Coverage Suit

RALEIGH, N.C. — A clothing retailer insured petitioned the North Carolina Supreme Court to review an appeals court’s ruling that affirmed a lower court’s dismissal of its lawsuit seeking coverage for its losses arising from the coronavirus pandemic, challenging the lower courts’ reliance on North State Deli v. Cincinnati Ins. Co. in dismissing its case.
January 04, 2024
P.F. Chang’s Coverage For COVID-19 Losses Limited To $1M, California Panel Affirms

LOS ANGELES — A California appeals court on Jan. 3 concluded that P.F. Chang's China Bistro Inc.’s insurance policy language “clearly and unambiguously” provided only $1 million in coverage for its losses arising from the coronavirus pandemic, affirming a lower court’s ruling granting summary adjudication in favor of the insurer.
January 04, 2024
Florida Panel Reverses Denial Of Insured’s Appraisal Motion In Hurricane Irma Suit

MIAMI — A Florida appeals panel on Jan. 3 concluded that the plain and unambiguous language of Florida Statutes Section 627.70132 does not require an insured to provide a damages estimate to comply with the statutory requirement for providing its insurer with notice of a supplemental or reopened claim, reversing and remanding a lower court’s denial of a condominium association insured’s motion to compel appraisal in a Hurricane Irma coverage dispute.
December 21, 2023
Texas Federal Judge Revises Order On Expert Admissibility In Reconsideration Motion

DALLAS — A Texas federal judge excluded one expert and limited another expert’s testimony in an insurance coverage dispute after reconsidering a previous ruling on the admissibility of the experts.
December 21, 2023
3rd Circuit: Suit Not ‘Ripe’ In Insurer’s Row With Care Homes Over COVID Coverage

PHILADELPHIA — The Third Circuit U.S. Court of Appeals vacated and remanded a district court’s grant of judgment for an insurer seeking a declaration that a nursing home’s COVID-19-related policies’ provision requiring the nursing home to pay the first $3 million in litigation and claims costs applies to multiple events, one for each facility, finding that the district court lacked jurisdiction to determine “whether COVID-19 constitutes multiple health care events” is “ripe for review.”
December 18, 2023
Flood Insurer Submits List Of Parties Remaining In Hurricane Ida Coverage Dispute

NEW ORLEANS — A flood insurer that was sued for breach of contract for its alleged failure to adequately cover claims related to Hurricane Ida submitted to a federal court a notice advising that the remaining parties are the insured, flood insurer and Louisiana Insurance Guaranty Association (LIGA), as statutory successor for an insolvent homeowner’s insurer.
December 06, 2023
N.J. Panel Affirms Dismissal Of Tory Burch LLC’s Coronavirus Coverage Dispute

TRENTON, N.J. — A New Jersey appeals panel on Dec. 6 affirmed a lower court’s grant of an insurer’s motion to dismiss Tory Burch LLC’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses arising from the COVID-19 pandemic, finding that New Jersey Gov. Phil Murphy’s executive orders issued in response to the virus did not physically deprive the insured from possessing its property.
December 15, 2023
Virus Exclusion Unambiguously Bars Coverage, Panel Affirms In COVID-19 Coverage Suit

PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of an insured’s breach of contract and bad faith lawsuit seeking coverage for its business losses incurred as a result of the coronavirus and subsequent government shutdown orders, finding that the commercial insurance policy's virus exclusion unambiguously precludes coverage for the insured’s claims for loss and damage.
December 15, 2023
Florida Panel Affirms $884,371 Judgment In Insured’s Favor In Hurricane Irma Suit

MIAMI — A Florida appeals panel affirmed a lower court’s $884,371.90 final judgment in favor of an insured after a jury returned a verdict in its favor in its breach of contract lawsuit seeking coverage for its losses caused by Hurricane Irma, finding that the insurer failed to establish reversible error.
December 15, 2023
5th Circuit Affirms Ruling In Favor Of Insurer In Hurricane Hanna Coverage Dispute

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Dec. 14 affirmed a lower federal court’s ruling that adopted a magistrate’s report recommending that summary judgment be granted in favor of a property insurer in a hotel owner’s breach of contract, fraud and bad faith lawsuit, finding that the insured failed to carry its burden under the concurrent causation doctrine to demonstrate that its roof damage was caused solely by Hurricane Hanna.
December 15, 2023
Insureds Breached Terms Of Policy By Failing To Provide Proof Of Loss, Judge Says

SACRAMENTO, Calif. — Insureds’ claims for breach of contract and bad faith against their homeowners insurers in a dispute over damages and losses caused by a California wildfire cannot proceed because the insureds breached the terms of the insurance policy by failing to file a proof of loss for their personal property losses, a California federal judge said in granting the insurers’ motion for summary judgment.
December 14, 2023
Louisiana Federal Judge Dismisses Hurricane Coverage Suit After Counsel Suspension

LAFAYETTE, La. — A Louisiana federal judge dismissed a hurricane coverage suit, concurring with a magistrate judge’s report and recommendation to grant a homeowner’s motion for dismissal against his now-insolvent insurer after the judge suspended the homeowner’s legal counsel for purported insurance fraud related to alleged misconduct in filing hurricane-coverage suits.
December 14, 2023
Insured’s Remand Bid Denied In Hurricane Coverage Row With Insurer In Receivership

NEW ORLEANS — A Louisiana federal judge denied a homeowner’s motion to remand to state court his breach of contract and bad faith suit against his now-insolvent insurer alleging that the insurer failed to cover damage from Hurricane Ida, finding that because the homeowner did not amend his complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant, there is still “complete diversity between the parties.”
December 14, 2023
Bifurcation Of Bad Faith Claim In Wildfire Coverage Suit Not Warranted, Judge Says

SAN FRANCISCO — Bifurcation of a bad faith claim from a breach of contract claim in a dispute over coverage for property damages sustained by an insured’s wineries during four California wildfires is not warranted, a California federal judge said after determining that judicial efficiency would not be served through bifurcation and that any potential prejudice to the insurer incurred by trying both claims together could be avoided by issuing clear and limited jury instructions.
December 13, 2023
Panel: Insured’s Argument In COVID-19 Dispute ‘Runs Into A Wall Of Precedent’

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of an insurer’s motion to dismiss an insured’s lawsuit seeking coverage for its losses arising from the shutdown of its event venue in response to the coronavirus pandemic, finding that the insured has failed to plausibly assert any “direct physical loss of or damage to” its property.