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

Mealey's Catastrophic Loss

September 08, 2023
COMMENTARY: Maui Wildfire Insurance Recoveries: In The Rush To Lay Blame, Remember Your Claim

By Christopher C. Loeber and Helen P. Hunter
September 12, 2023
Panel Remands Coronavirus Coverage Suit To Decide Federal Diversity Jurisdiction

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on Sept. 11 reversed and remanded a coronavirus coverage lawsuit for an Iowa federal court to determine whether federal diversity jurisdiction exists, finding that it is unable to decide if an insured’s members were diverse based on the insured’s new affidavit.
September 11, 2023
Florida Panel Affirms Order Denying Dismissal, Transfer Of Hurricane Michael Dispute

TALLAHASEE, Fla. — A Florida appeals panel held that because a service agreement between insureds and a public adjuster is void for violating Florida law, there is no enforceable venue selection clause and, therefore, a lower court did not err in denying the adjuster’s motion to dismiss or transfer the insureds’ declaratory judgment lawsuit arising from Hurricane Michael damage.
September 08, 2023
Federal Judge Dismisses Bobcat Wildfire Coverage Suit After Parties Reach Settlement

LOS ANGELES — A federal judge in California dismissed without prejudice a coverage dispute over underlying lawsuits arising from the Bobcat Wildfire one day after the parties announced that they reached a settlement.
September 08, 2023
Panel: Plaintiff Failed To Assert Plausible RICO Claims Against Insurer, Employee

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals held that a townhome owner has failed to allege plausible Racketeer Influenced and Corrupt Organizations Act (RICO) claims against a residential development’s insurer and its employee, affirming on other grounds a federal court’s dismissal of a lawsuit arising from Hurricane Florence property damage.
September 08, 2023
Majority: Insured Sufficiently States Negligence Claim Against Insurance Agent

RALEIGH, N.C. — A majority of a North Carolina appeals court held that an insured’s allegations are sufficient to state a claim for negligence against an insurance agent in a lawsuit arising from Hurricane Florence property damage, reversing the lower court’s dismissal of the negligence claim and affirming in all other respects.
September 07, 2023
Stay Of Judgment Denied After Insurer Appeals Judgment In Property Damage Dispute

MOBILE, Ala. — A federal judge in Alabama has denied an insurer’s motion for stay of execution without bond of a judgment issued in the wake of a nearly $170,000 verdict against it in an insurance dispute over the handling of a property damage claim after Hurricane Sally pending its appeal to the 11th Circuit U.S. Court of Appeals.
September 07, 2023
N.J. Panel Remands Coronavirus Coverage Suit To Allow Insured To Amend Fraud Claims

TRENTON, N.J. — A New Jersey appeals panel on Sept. 6 reversed a lower court’s dismissal of a law firm insured’s fraud-based claims against its insurers in a coronavirus coverage dispute, remanding with instructions for the court to permit the insured to amend its complaint to adequately plead these claims, but affirmed the dismissal of the other claims.
September 06, 2023
Judge Enters Take-Nothing Judgment In Coverage Suit Arising From Hurricane Dorian

MIAMI — A federal judge in Florida entered a take-nothing judgment in favor of an insurer in a coverage dispute arising from damage to a 61-foot yacht caused by Hurricane Dorian, finding that the insured’s failure to employ a full-time captain increased the hazard posed to its vessel.
August 31, 2023
Insurer Appeals Judgment After Verdict On Property Damage Dispute To 11th Circuit

MOBILE, Ala. — An insured has appealed to the 11th Circuit U.S. Court of Appeals the judgment issued in the wake of a nearly $170,000 verdict against it in an insurance dispute over the handling of a property damage claim after Hurricane Sally and moved a federal court in Alabama to stay execution of the judgment pending appeal.
August 28, 2023
Property Insurer Acted In Bad Faith In Handling Hurricane Claims, Judge Says

LAKE CHARLES, La. — A Louisiana federal judge granted an insured’s motion for summary judgment on its bad faith claim against a property insurer after determining that it is undisputed that the insurer acted in bad faith in handling the insured church’s property damage claims arising out of Hurricanes Laura and Delta.
August 28, 2023
Insurers Tell 5th Circuit $7M Hurricane Ida Dispute Belongs In Arbitration

NEW ORLEANS — A group of foreign and domestic insurers tells the Fifth Circuit U.S. Court of Appeals in an appellee brief that it should affirm a Louisiana federal court’s ruling compelling arbitration of property owners’ claims for $7 million in damages caused by Hurricane Ida and for bad faith, writing that the arbitration is required under the insureds’ policies and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention).
August 24, 2023
Bad Faith Claim Against Homeowners Insurer Fails, Louisiana Federal Judge Says

SHREVEPORT, La. — A bad faith claim against a homeowners insurer cannot proceed because the insureds failed to meet their burden of showing that the insurer acted arbitrarily and capriciously in handling their claim for damages sustained to their home by hail, a Louisiana federal judge said in granting the insurer’s motion for partial summary judgment.
August 23, 2023
Homeowner Seeks Video Conference In Hail Damage Suit Against Insolvent Insurer

GALVESTON, Texas — A Texas homeowner filed a motion in Texas state court asking for a scheduled status conference to be held via video in his breach of contract suit against a now-insolvent insurer over its purported failure to cover hail damage, asserting that remote conferencing would be appropriate due to the “unnecessary travel time” needed for legal counsel to appear in person.
August 23, 2023
Guaranty Association Seeks Stay In Breach Of Contract Suit Over Windstorm Damages

SARASOTA, Fla. — The Florida Guaranty Association (FIGA) moved to enforce a mandatory six-month stay in a homeowner’s breach of contract suit filed against FIGA and a now-insolvent insurer for failure to adequately compensate for a wind damage claim, arguing that pursuant to Florida law, proceedings involving an insolvent insurer shall be stayed for six months.
August 23, 2023
Illinois Law, Not New Jersey Law, Governs Travel Insurance Policies, Judge Says

NEWARK, N.J. — A New Jersey federal judge granted an insurer’s motion to dismiss a putative class action complaint alleging claims for violations of New Jersey law, breach of contract and bad faith based on the insurer’s denial of claims for the reimbursement of premiums paid for travel insurance policies following trip cancellations caused by the coronavirus pandemic because the master policy, which governs the travel insurance policies, is governed by Illinois law and not New Jersey law.
August 22, 2023
8th Circuit Affirms No Coverage Ruling In Kansas City Restaurants’ COVID-19 Suit

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on Aug. 21 affirmed a Missouri federal court’s judgment in favor of a commercial property insurer in a breach of contract lawsuit brought by the owner of several Kansas City restaurants and bars that were forced to close or reduce their operations as a result of the COVID-19 pandemic, finding that even if the insured discovered the coronavirus at its insured properties, it failed to meet the standard for physicality.
August 22, 2023
4th Circuit Denies Insurer’s Motion For Rehearing In Silo Collapse Dispute

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeal denied a petition for rehearing or rehearing en banc filed by insurers in a coverage dispute arising out of the collapse of the insured’s silo, refusing to reconsider its finding that a district court erred in reducing a jury’s $7.6 million award in favor of the insured based on the conclusion that the district court did not properly calculate the period of restoration pursuant to the policy’s terms.
August 22, 2023
Hurricane Ida Coverage Suit Against Insolvent Insurer Dismissed By Property Owner

NEW ORLEANS — The owner of a New Orleans multifamily dwelling allegedly damaged by Hurricane Ida voluntarily dismissed his breach of contract and breach of the duty of good faith and fair dealing suit filed in a Louisiana federal court against his insurer, a Florida company that was placed into receivership by a Florida court.
August 21, 2023
Alaska Federal Judge Limits Testimony Of Expert In Insurance Coverage Spat

ANCHORAGE, Alaska — An insurance industry standards expert is not qualified to opine on building codes or construction, an Alaska federal judge ruled, also finding that testimony that constitutes a legal conclusion in a dispute over insurance coverage for a damaged roof is excluded.
August 21, 2023
California High Court Agrees To Review Tribe’s Coronavirus Coverage Dispute

SAN FRANCISCO — The California Supreme Court granted an Indian tribe insured’s petition to review a state appellate court’s finding that the insured and its experts failed to present sufficient evidence to demonstrate that the coronavirus caused property damage to the tribe’s casino and resort.
August 18, 2023
Hurricane Coverage Suit Dismissed After Guaranty Association Added As Defendant

NEW ORLEANS — A Louisiana federal judge granted a homeowner’s motion to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant and dismissed the homeowner’s breach of contract suit against LIGA and a now-insolvent insurer, finding that the court no longer has subject matter jurisdiction because the homeowner and LIGA are both citizens of Louisiana.
August 15, 2023
Judge Stays Wind Damage Case Against Homeowners Insurer, Cites Receivership Filing

McALLEN, Texas — A Texas federal judge on Aug. 14 stayed a breach of contract case against a homeowners insurer related to its purported failure to adequately cover a claim for wind damages, finding that a stay is merited because the Florida Department of Financial Services’ (DFS) “filing of the petition for receivership operates as an automatic stay under Florida law.”
August 14, 2023
Trial Court Erred In Denying Request To Add Punitive Damages Claim, Panel Says

DAYTONA BEACH, Fla. — A trial court erred in denying an insured’s motion for leave to amend a breach of contract and bad faith complaint to add a claim for punitive damages because the insured presented sufficient evidence in support of her contention that the insurer misrepresented the available coverage under the policy and that the insurer’s failure to properly investigate her claim was a general practice of the insurer.
August 11, 2023
Georgia Panel Affirms Dismissal Of Coronavirus Coverage Dispute

ATLANTA — A Georgia appeals panel affirmed a lower court’s grant of insurers’ motion to dismiss their mutual insured’s breach of contract lawsuit seeking coverage for its losses arising from the COVID-19 pandemic, saying the “overwhelming majority” of federal and state courts have rejected similar pandemic coverage claims.