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

Mealey's Emerging Insurance Disputes

November 30, 2023
Panel Refuses To Rehear Rulings In Favor Of Professional Liability Insurer, Engineer

BATON ROUGE, La. — A Louisiana appeals panel refused to reconsider its affirmation of a lower court’s summary judgment rulings in favor of the insurer and engineer in a lawsuit arising from a contractor’s claims that plans, specifications and bidding documents were inadequate and insufficient to properly construct a road in Terrebonne Parish, standing by its conclusion that because an engineer insured has no liability to Terrebonne Parish Consolidated Government (TPCG) as a matter of law, the engineer’s professional liability insurer also cannot be held liable to TPCG.
November 30, 2023
Judge Refuses To Reconsider Ruling Allowing Law Firm To Intervene In D&O Dispute

SAN JOSE, Calif. — A federal judge in California refused to reconsider its Nov. 3 ruling that granted a law firm’s motion to intervene in an insurer’s lawsuit seeking a declaration that a directors and officers employment practices liability and fiduciary liability policy is rescinded because of the insureds’ material misrepresentations, standing by its decision to permit the firm to enforce a charging lien against the proceeds of the policy.
November 30, 2023
No Coverage Owed For Breach Of Franchise Agreement, Trademark Infringement Claims

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling in favor of insurers in an insured’s breach of contract and bad faith lawsuit seeking coverage for an underlying action alleging that it breached a franchise agreement and infringed on trademarks, finding that some of the underlying claims “clearly fell outside the policy's coverage” and that the policy’s intellectual property (IP) exclusion also barred coverage.
November 28, 2023
Michigan Panel Affirms Ruling In Favor Of Insurance Agency

DETROIT — A Michigan appeals panel affirmed a lower court’s dismissal of an insured’s negligence and misrepresentation claims against its insurance agency, finding that the insured failed to submit adequate evidence of causation.
November 28, 2023
No Coverage Owed For Clothing Retailer’s COVID-19 Losses, N.C. Panel Affirms

RALEIGH, N.C. — The North Carolina Court of Appeals affirmed a lower court’s dismissal of an insured’s lawsuit seeking coverage for its losses arising from the coronavirus pandemic, finding that the insured failed to allege a tangible alteration to its more than 1,300 clothing stores to trigger coverage.
November 27, 2023
2nd Circuit Refuses To Rehear Professional Liability Coverage Dispute

NEW YORK — The Second Circuit U.S. Court of Appeals issued a mandate on Nov. 27 after it denied a lawyer insured’s petition for rehearing en banc seeking to reverse its ruling that a professional liability insurer has no duty to defend the insured’s construction management company against a lawsuit arising from a home renovation project, standing by its conclusion that the underlying complaint fails to allege professional services that the insured provided as a lawyer to trigger coverage.
November 27, 2023
U.S. High Court Refuses To Review Insurance Bad Faith Suit Over Worker Injury

WASHINGTON, D.C. — The U.S. Supreme Court denied an insurer’s petition seeking review of the 11th Circuit U.S. Court of Appeals’ finding that there is enough evidence for a jury to reasonably conclude that it acted in bad faith because it delayed acting on its duty to investigate and settle an underlying worker injury claim, refusing to address the insurer’s argument that the appeals court’s holding “sharply conflicts” with the high court’s recent ruling in Dupree v. Younger and warrants grant of its petition for writ of certiorari, vacatur of the lower court’s judgment and remand for further consideration.
November 21, 2023
Judge: No Professional Liability Coverage Owed For Suit Against Fertility Doctor

HARTFORD, Conn. — A Connecticut judge held that a professional liability insurer has no duty to defend its fertility doctor insured against underlying allegations that he used his own sperm to impregnate two of his patients without their knowledge or consent, finding that the policy’s intentional conduct and sexual misconduct exclusions bar coverage.
November 20, 2023
Louisiana High Court Refuses To Review Ruling In Suit Alleging Insured Stole Files

NEW ORLEANS — The Louisiana Supreme Court refused to disturb a Louisiana appeals court’s finding that a residential mortgage broker’s electronic loan files are “tangible” under state law and, therefore, can be defined as “‘property’ that is susceptible to ‘loss of use’” under a competitor’s business liability insurance policy, allowing to stand the lower court’s reversal of a summary judgment ruling in favor of an insurer that intervened in the broker’s lawsuit alleging that its insured used stolen files to broker mortgage loans for its customers.
November 20, 2023
U.S. High Court Denies Insurance Regulator’s Review Bid In Corporate Privacy Row

WASHINGTON, D.C. — As urged by the U.S. government, the U.S. Supreme Court on Nov. 20 denied a petition by the Delaware Department of Insurance (DDOI) for review of a corporate privacy case involving microcaptive insurance company information and the McCarran-Ferguson Act (MFA).
November 20, 2023
Judge Issues Opinion Reaffirming Order In Landlord’s Coronavirus Coverage Suit

NEW YORK — A federal judge in New York issued an opinion reaffirming its Sept. 29 order granting a commercial property insurer’s motion for summary judgment in a coronavirus coverage suit, finding that a commercial landlord insured failed to meet the contractual prerequisites to recover under the insurance policy’s two communicable disease provisions.
November 17, 2023
Real Estate Law Firm Sues Cyber Security Insurer For Breach Of Contract

ASHEVILLE, N.C. — A real estate law firm sued its insurer and a third-party administrator in a North Carolina court, seeking cyber security coverage for gross negligence and obstruction of justice cross-claims arising from a “cyber incident” in 2021 that resulted in the misdirection of funds.
November 17, 2023
Federal Judge Refuses To Dismiss Professional Liability Coverage Dispute

GREENBELT, Md. — A Maryland federal judge denied a professional liability insurer’s motion to dismiss an insured’s breach of contract and lack of good faith lawsuit seeking coverage for underlying negligent misrepresentation claims, concluding that the insured alleged facts that plausibly demonstrate a potential for coverage.
November 16, 2023
Policy’s Virus Exclusion Bars Coverage For Coronavirus Losses, 9th Circuit Affirms

PHOENIX — The Ninth Circuit U.S. Court of Appeals on Nov. 15 held that an insured failed to plausibly allege that anything other than the COVID-19 pandemic is the efficient proximate cause of its losses, affirming a federal court’s dismissal of the insured’s commercial insurance coverage lawsuit.
November 15, 2023
Ohio Panel Partly Reverses Ruling In Insurer’s Favor In Dog Bite Coverage Dispute

LIMA, Ohio — An Ohio appeals panel concluded that there are genuine issues of material fact regarding whether an exception to a homeowners insurance policy exclusion applies to allow coverage for underlying claims arising from an alleged dog bite, reversing in part a lower court’s summary judgment ruling in favor of the insurer.
November 15, 2023
7th Circuit Issues Mandate Remanding Class Action Challenging Insurance Practices

CHICAGO — The Seventh Circuit U.S. Court of Appeals issued a mandate after denying an insurer and its directors and officers’ petitions for rehearing en banc seeking review of an earlier holding that a class action challenging the insurer’s practices fits within the internal affairs and home state controversy exceptions to the Class Action Fairness Act (CAFA), denying the insurer’s motion to stay the issuance of the mandate pending the filing of and ruling on its petition for certiorari.
November 15, 2023
Amber Heard Asks 9th Circuit To Review Dismissal Of Counterclaims In Coverage Suit

LOS ANGELES — Amber Heard notified a California federal court that she is asking the Ninth Circuit U.S. Court of Appeals to review the court’s dismissal of her breach of contract and bad faith counterclaims in the insurer’s declaratory judgment lawsuit alleging that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.
November 14, 2023
Panel Partly Vacates Ruling In Coverage Suit Arising From Slander Of Title Claims

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Nov. 13 ruled that a lower federal court erred in finding that a claim for slander of title against an insured was not covered under the insurance policy, partly vacating and remanding the lower court’s ruling in a coverage dispute over an underling lawsuit alleging cancellation of deed and quiet title, slander of title and conversion against the insured.
November 13, 2023
Panel Denies Maritime Insurer’s Rehearing Petition In Suit Over Seaman’s Injuries

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals denied an insurer’s petition seeking a panel rehearing challenging its ruling that the insurer has a duty to pay the maintenance and cure under a maritime protection and indemnity (P&I) insurance policy for a seaman’s injuries that he incurred while employed on a lift boat.
November 10, 2023
Judge: Claims Fall Within Former D&O Exception To ‘Insured V. Insured’ Exclusion

BOSTON — Ruling on dueling summary judgment motions, a federal judge in Massachusetts on Nov. 9 held that a private company management liability insurer has a duty to defend against certain claims that fall under the “Former Directors and Officers” exception to the policy’s “Insured v. Insured” exclusion but other claims are barred by not falling within the “Shareholder Derivative” exception to the same exclusion.
November 10, 2023
Louisiana Panel Reverses Ruling In Insurer’s Favor In Dog Bite Coverage Dispute

BATON ROUGE, La. — A Louisiana appellate court panel on Nov. 9 reversed a lower court’s summary judgment ruling in favor of a homeowners insurer in a coverage dispute arising from a dog bite, finding that the insurance policy “may reasonably be interpreted to provide coverage” for the underlying claims (Varile Rae Ann Pitre Tucker v. Cecelia Chatfield, et al., No. 2023 CA 0343. La. App., 1st Cir.).
November 09, 2023
Federal Judge Issues 3 Orders In D&O Coverage Dispute Arising From Failed Bank

NEW ORLEANS — A federal judge in Louisiana on Nov. 8 granted Federal Deposit Insurance Corp.’s motion for partial summary judgment in a directors and officers liability coverage dispute arising from the failure of First NBC Bank, granted in part the receiver’s motion to dismiss and ruled on a motion to compel arbitration.
November 08, 2023
Federal Judge Retains Jurisdiction Over Insurer’s Suit Against Church, Members

ALLENTOWN, Pa. — A federal judge in Pennsylvania on Nov. 7 denied church members’ motion to dismiss an insurer’s declaratory judgment lawsuit disputing coverage for an underlying lawsuit alleging breaches of fiduciary duty and trust against them, finding that exercise of jurisdiction under the Declaratory Judgment Act (DJA) is proper.
November 08, 2023
Judge Modifies Class In Driver’s Suit Against GEICO For Unfair COVID Premiums

SAN FRANCISCO — A California federal judge on Nov. 7 granted an insured’s motion to modify a previously certified class of automotive policy holders in the insured’s suit claiming that GEICO violated California’s unfair competition law (UCL) by profiting from a premium giveback program initiated during the COVID-19 pandemic, with the judge agreeing based on evidence produced to change the class time period.
November 08, 2023
Louisiana Panel: Professional Liability Insurer Of Engineer Cannot Be Held Liable

BATON ROUGE, La. — A Louisiana appeals court panel concluded that because an engineer insured has no liability to Terrebonne Parish Consolidated Government (TPCG) as a matter of law, the engineer’s professional liability insurer also cannot be held liable to TPCG, affirming a lower court’s summary judgment rulings in favor of the insurer and engineer in a lawsuit arising from a contractor’s claims that plans, specifications and bidding documents were inadequate and insufficient to properly construct a road in Terrebonne Parish.