Mealey's Emerging Insurance Disputes : Mealey's : Legal News & Analysis

Mealey's Emerging Insurance Disputes

May 15, 2024
New Jersey High Court: Electric Scooter Rider Not Pedestrian, No PIP Benefits Owed

TRENTON, N.J. — A unanimous New Jersey Supreme Court on May 14 held that a low-speed electric scooter rider does not fall under the definition of “pedestrian” under the state’s No-Fault Act and that an appellant is not entitled to personal injury protection (PIP) benefits, affirming an appeals court’s ruling as modified in favor of a personal automobile insurer.
May 15, 2024
Federal Judge Stays Ghost Gun Coverage Suit Pending Ruling In First-Filed Suit

KANSAS CITY, Mo. — A federal judge in Missouri granted a commercial general liability insurer’s motion to stay an insured’s coverage lawsuit pending a New York federal court’s ruling on the insured’s motion to transfer or stay the insurer’s declaratory judgment lawsuit disputing coverage for underlying claims that the insured violated federal, state and local laws when it deliberately sold and shipped ghost gun parts and kits to New York.
May 08, 2024
COMMENTARY: R&W Lessons From Novolex Summary Judgment Decision

By Syed Ahmad, Patrick McDermott, Veronica Adams and Jae Lynn Huckaba
May 14, 2024
Ohio Panel: No Coverage Owed For Settlement Of Claims Insured Financed Terrorists

CINCINNATI — An Ohio appeals panel held that a lower court correctly granted summary judgment in favor of insurers in their lawsuit seeking a declaration that they have no duty to indemnify their mutual insured against an underlying settlement of a lawsuit alleging that it illegally financed terrorist groups in the Republic of Colombia.
May 14, 2024
9th Circuit Partly Affirms, Partly Vacates Ruling In Coverage Suit Over Lost Rent

PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling that unpaid rent, late fees and government fines did not trigger “property damage” coverage under a commercial general liability insurance policy but vacated the lower court’s application of the policy’s leased property exclusion and remanded for consideration of the appellant’s new evidence.
May 14, 2024
Insurer Has No Duty To Defend, Indemnify Bitcoin Theft Suit, 5th Circuit Affirms

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on May 13 affirmed a lower federal court’s ruling in favor of an insurer in its lawsuit disputing coverage for an underlying lawsuit alleging that insureds conspired to steal bitcoin through a malware attack, finding that the underlying action alleges only intentional acts that are not covered.
May 14, 2024
Multifamily Housing Lessor Seeks Coverage For Antitrust Conspiracy Claims In MDL

DENVER — A multifamily housing lessor insured sued its primary and excess data protection liability insurers in a Colorado federal court for breach of contract and bad faith, seeking coverage for an underlying multidistrict litigation alleging that it was involved in an antitrust conspiracy when it used a revenue management software to artificially inflate multifamily housing rents above market across the country.
May 14, 2024
Federal Judge Dismisses Lead Insurer From D&O Coverage Dispute Over SEC Subpoena

WASHINGTON, D.C. — A District of Columbia federal judge granted a joint motion filed by Federal Home Loan Mortgage Corp. (Freddie Mac) and its lead insurer to dismiss the insurer from Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.
May 08, 2024
COMMENTARY: Bad Faith As A Substitute For Prejudice In Reinsurance Late Notice Disputes

By Robert M. Hall
May 13, 2024
Appellant Seeks Rehearing Of No Coverage Ruling In Dispute Over Gold Treasure

SEATTLE — An appellant on May 10 asked the Ninth Circuit U.S. Court of Appeals to rehear its April 26 opinion that affirmed a lower federal court’s summary judgment ruling in favor of an ocean marine general liability insurer in a declaratory judgment lawsuit disputing coverage for an underlying $7.5 million covenant judgment that resolved claims that the appellant was denied possession and use of the tangible and intangible work product that was created during gold salvage expeditions.
May 13, 2024
U.S. High Court Refuses To Review Suit Alleging State Farm Agents Were Negligent

WASHINGTON, D.C. — The U.S. Supreme Court on May 13 denied insureds’ petition for a writ of certiorari seeking review of a Ninth Circuit U.S. Court of Appeals’ ruling that affirmed a lower federal court’s grant of an automobile liability insurer’s motion for summary judgment and denied the insureds’ motion to certify questions to the Montana Supreme Court in their lawsuit alleging that the insurer’s agents were negligent in failing to explain or offer underinsured motorist coverage when they purchased their automobile liability policies.
May 13, 2024
Delaware Judge Grants Insurers’ Motion To Dismiss D&O Coverage Dispute

WILMINGTON, Del. — A Delaware judge granted insurers’ motions to dismiss a company and its chief executive officers’ lawsuit seeking directors and officers liability coverage for an underlying lawsuit alleging that they undersold the value of investors’ shares in the company and its parent company, finding that the “No Action” clause and “prior notice” exclusion in various policies relieve the insurers of their coverage obligations.
May 13, 2024
U.S. High Court Denies Insurer’s Petition Seeking Review Of Remanded Class Action

WASHINGTON, D.C. — The U.S. Supreme Court on May 13 denied an insurer’s petition for a writ of certiorari asking the U.S. Supreme Court to review the Seventh Circuit U.S. Court of Appeals’ finding that a class action challenging its practices fits within the internal affairs and home state controversy exceptions to the Class Action Fairness Act (CAFA).
May 10, 2024
Pharmacy Distributor Appeals No Coverage Ruling In Suit Prompted By Opioid Epidemic

VALDOSTA, Ga. — A pharmacy distributor insured indicated to a Georgia federal court that it is asking the 11th Circuit U.S. Court of Appeals to review the court’s grant of summary judgment in favor of its commercial general liability and umbrella insurers in a coverage dispute arising from the opioid epidemic.
May 10, 2024
3rd Circuit Denies Ralph Lauren’s Motions To Remand Coronavirus Coverage Suit

PHILADELPHIA — The Third Circuit U.S. Court of Appeals on May 9 denied Ralph Lauren Corp.’s motions seeking to vacate and remand a New Jersey federal court’s ruling in favor of its insurer in a coronavirus coverage dispute.
May 09, 2024
Panel Partly Affirms, Partly Vacates Ruling In Wrongful Death Coverage Suit

CINCINNATI — The Sixth Circuit U.S. Court of Appeals on May 8 affirmed the part of a lower federal court’s order that determined that a commercial general liability insurance policy’s assault and battery exclusion relieved an insurer of its duty to indemnify against an underlying wrongful death suit brought by the estate of the decedent but found that the insurer lacked standing to pursue its declaratory judgment claim against the estate as to its duty to defend.
May 08, 2024
COMMENTARY: A Primer On PFAS/Forever Chemical Claims: Regulation, Litigation, Large Losses & Insurance Coverage Issues

By Scott M. Seaman and Gar N. Lauerman
May 08, 2024
Judge Rules New Orleans Cannot Make Insurers Arbitrate Airport Construction Claims

NEW ORLEANS — A federal judge in Louisiana found that New Orleans cannot compel arbitration with insurers over coverage stemming from construction damages at a city airport, finding that the insurers did not agree to arbitrate claims asserted by the New Orleans Aviation Board (NOAB).
May 08, 2024
Federal Judge Enters Judgment In Favor Of Professional Liability Insurer

LAS VEGAS — A federal judge in Nevada entered judgment in favor of professional liability insurer in its lawsuit alleging that the attorney insured fraudulently concealed one or more material facts on his renewal insurance applications.
May 06, 2024
Freddie Mac Dismisses Lead Insurer From D&O Coverage Dispute Over SEC Subpoena

WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) and its lead insurer on May 3 filed a joint stipulation asking a District of Columbia federal court to dismiss the insurer from Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.
May 06, 2024
Ohio Panel Affirms Ruling In Favor Of Insurer In Intervenor Suit Disputing Coverage

TOLEDO, Ohio — An Ohio appeals panel on May 3 affirmed a lower court’s ruling in favor of a commercial liability insurer in its intervenor lawsuit seeking a declaration that it has no duty to indemnify its insured against underlying negligence and loss of consortium claims, finding that a professional services exclusion bars coverage.
May 03, 2024
Judge: No Duty For Agent To Procure Policy Without Exclusions For Contractor

DENVER — A Colorado federal judge granted a procuring insurance agent’s motion for summary judgment on claims assigned to a couple by the contractor that defectively constructed their home, finding that the couple failed to establish that the contractor had entered into a contract with the procuring insurance agent that would require it to provide an insurance policy that did not contain policy exclusions that led to denial.
May 03, 2024
Insureds Defend Their Appeal To N.C. Supreme Court In Coronavirus Coverage Suit

RALEIGH, N.C. — Restaurant insureds defended their appeal asking the North Carolina Supreme Court to reverse an appeals court’s reversal of a lower court’s grant of partial summary judgment in their favor in a COVID-19 coverage dispute, asserting that a “careful examination makes clear that its policy as interpreted under North Carolina’s specific laws provides coverage for its losses.
May 03, 2024
Judge: Insured’s Attachments To Complaint Contradict Physical Dispossession Claims

CHICAGO — A federal judge in Illinois granted an insurer’s motion to dismiss an insured’s lawsuit alleging that the insurer wrongfully denied coverage for losses that its predecessor-in-interest incurred from governmental shutdown orders in response to the coronavirus pandemic, finding that the insured’s physical dispossession allegations are contradicted by its own attachments to its complaint that demonstrated that the shutdown orders did not completely bar employees from accessing the company’s facilities.
May 02, 2024
Chris Brown’s Recording Studio Insurer Appeals $2M Judgment To 6th Circuit

MEMPHIS, Tenn. — The insurer of a recording studio owned by musician Chris Brown on May 1 appealed a Tennessee federal judge’s final judgment requiring the insurer to pay $2,066,217.30 of a $2.5 million jury verdict to a co-defendant and lessee of the studio after Brown was previously found liable for submitting a fraudulent insurance claim for burglary and fire at the studio.