Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

September 27, 2023
Music Festival Organizer Seeks $2.8M For Losses Arising From Tuscany Storm

PHILADELPHIA — An insured that organized a three-day music festival in Tuscany sued its insurer for breach of contract, declaratory relief and bad faith in a Pennsylvania federal court, seeking coverage under an Event Cancellation Policy for its alleged $2.8 million in losses caused by severe weather.
September 26, 2023
Insurer: Ruling ‘Sharply Conflicts’ With Dupree, Warrants High Court Review

WASHINGTON, D.C. — An insurer asked the U.S. Supreme Court to review 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 the underlying worker injury claim, asserting 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.
September 20, 2023
Homeowner Sues Insolvent Insurer Over Failure To Cover Hurricane Damages

FORT MYERS, Fla. — A homeowner filed a breach of contract suit against his insolvent homeowners insurer, alleging that the insurer failed to compensate him for damages caused by Hurricane Ian.
September 20, 2023
Insurer, Insureds, Amici Debate ‘Occurrence’ Requirement Before Oregon High Court

SALEM, Ore. — A commercial general liability insurer urged the Oregon Supreme Court to affirm lower court rulings that it owed no duty to indemnify its insured contractor for damages awarded in an underlying construction defect arbitration, rejecting the homeowners’ argument that the high court should distinguish or clarify Oak Crest Construction v. Austin Mut. Ins. Co., on which the lower courts relied in finding that because that contractor’s liability arose from a breach of contract, there was no “occurrence” and, thus, no coverage for the property damage.
September 19, 2023
Insurers Cross-Appeal In Coverage Dispute With Home Depot Over 2014 Data Breach

CINCINNATI — Insurers filed cross-appeal notices in an Ohio federal court two weeks and one day after their mutual insured, Home Depot, appealed to the Sixth Circuit U.S. Court of Appeals the lower court’s finding that an insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach (The Home Depot, Inc., et al. v. Steadfast Insurance Co., et al., No. 21-00242, S.D. Ohio, Western Div.).
September 19, 2023
Insurer Says Pollution, Lead Exclusions Bar Coverage For Lead Exposure Suit Claims

BUTTE, Mont. — No coverage is owed to an insured for an underlying third-party complaint alleging that the insured’s negligence in installing a water well contributed to injuries sustained by tenants who consumed the well water because the policies’ exclusions for pollution and lead bar coverage, an insurer says in a complaint filed in Montana federal court.
September 19, 2023
Remand To Florida Court Argued In Coverage Row Over Leased Aircraft

MIAMI — Arguing in a reply brief that “in lawsuits between parties of different countries, there is no federal diversity jurisdiction,” plaintiffs in a coverage dispute over aircraft that a Russian airline refused to return after the invasion of Ukraine urge a Florida federal court to remand the case to Florida state court.
September 19, 2023
Insurer Moves To Transfer Leaky Roof Suit After Winning Partial Summary Judgment

AUSTIN, Texas — A week after winning partial summary judgment in a breach of contract case related to its bankrupt and deceased subcontractor insured’s responsibility for damages stemming from work on a roof, a commercial general liability insurer filed an unopposed motion to transfer a breach of contract suit against it from one federal court in Texas to another.
September 15, 2023
Unsecured Creditors In Vesttoo Chapter 11 Case Want To Conduct Discovery

WILMINGTON, Del. — Arguing that it “is the only independent fiduciary capable of conducting a thorough and conflict-free investigation,” the Committee of Unsecured Creditors in the jointly administered Chapter 11 case of Vesttoo Ltd. and 48 affiliated entities on Sept. 14 asked a Delaware federal bankruptcy court for leave to conduct discovery.
September 13, 2023
Judge: Insurance-Home Sale Connection Claims Save AI Claims Handling Case

CHICAGO — The theory that homeowners insurance constitutes a service connected to the sale of a home pushes the Fair Housing Act (FHA) to its boundaries but meshes with precedent, a federal judge in Illinois said in partially denying a motion to dismiss in a case alleging that an insurer’s artificial intelligence disproportionately flags claims by Black policyholders for greater scrutiny.
September 12, 2023
Insured Says Coverage Owed For Contribution To Lead Paint Abatement Fund

COLUMBUS, Ohio — The Ohio Supreme Court should affirm a state appellate court’s ruling that an insured’s obligation to contribute to a lead paint abatement fund constitutes damages under applicable insurance policies because the ordinary meaning of the word damages includes the insured’s obligation to contribute to the abatement fund, the insured says in it appellee brief filed in the Ohio Supreme Court.
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.
September 08, 2023
Home Depot Seeks 6th Circuit Review Of No Coverage Ruling For 2014 Data Breach Losses

CINCINNATI — Home Depot filed a notice of appeal in an Ohio federal court asking the Sixth Circuit U.S. Court of Appeals to review the lower court’s finding that an insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach, challenging the lower court’s grant of the insurers’ motions for summary judgment in its breach of contract and bad faith lawsuit seeking damages up to the full collective policy limits of $50 million.
September 08, 2023
Insurer: All-Sums Applies In Case To Recoup Costs To Settle Roof Repair Suit

NEW ORLEANS — An insurer seeking to recover costs it paid to settle a roof repair and water damage suit tells the Fifth Circuit U.S. Court of Appeals that another insurer’s opposition to paying the costs fails to address an applicable all-sums approach requiring full payment up to policy limits for covered damages.
September 07, 2023
Insurer Seeks Reconsideration Of Ruling Finding It Has Duty To Defend Builder

FORT WORTH, Texas — A federal judge in Texas erred in determining that a commercial general liability insurer had a duty to defend in a coverage dispute over a homebuilder’s alleged failure to disclose to homebuyers that a home it built was subject to flooding because it didn’t give the insurer the opportunity to respond before ruling in favor of the builder, which had not sought such a ruling, the insurer argues in seeking reconsideration.
September 01, 2023
Contractor’s Insurer Appeals Denial Of New Trial In Coverage Suit To 5th Circuit

NEW ORLEANS — A contractor’s commercial general liability insurer has appealed to the Fifth Circuit U.S. Court of Appeals a ruling by federal judge in Louisiana denying its motion for a new trial or reconsideration of his April ruling dismissing its suit against a subcontractor’s insurer to recover damages the contractor’s insurer paid stemming from water damage caused by the subcontractor’s negligence in performing work on a home’s roof.
August 31, 2023
Wrangling Over Automatic Bankruptcy Stay Continues In Letter Of Credit Fallout

WILMINGTON, Del. — Arguing that the filing of a Chapter 15 case violates a consent order, Chapter 11 debtor Vesttoo Ltd. and 48 affiliated entities on Aug. 30 asked a Delaware federal bankruptcy court to issue a contempt order and sanctions against Bermuda-based White Rock Insurance (SAC) Ltd. and “the putative joint provisional liquidators [JPLs] of segregated cells.”
August 30, 2023
Defamation Claimed In 2nd Cross-Complaint Filed In Breach Suit

LOS ANGELES — In the second cross-complaint filed in a lawsuit in California state court involving allegations that a claim should have been covered by reinsurance of a shared risk incentive pool, a managed services organization (MSO) and its CEO allege defamation.
August 29, 2023
Joint Statement Filed In Coverage Row Over Jet Leased To Russian Operator

SAN FRANCISCO — Plaintiffs in an international aviation insurance coverage dispute involving Russia’s invasion of Ukraine plan to initially focus depositions “on persons identified by the ‘War Risk’ insurers,” according to a filing in California state court.
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 25, 2023
Contractor Appeals Rulings In Faulty Work Coverage Suit To 11th Circuit

WEST PALM BEACH, Fla. — A contractor has appealed to the 11th Circuit U.S. Court of Appeals a Florida federal court’s rulings granting summary judgment to its commercial general liability insurer, denying summary judgment to the contractor on its counterclaim for reformation and dismissing the claim and awarding the insurer final judgment in the insurer’s declaratory judgment suit stemming from a subcontractor’s alleged faulty installation of cladding and glazing systems in a construction project.
August 24, 2023
Enforcement Of Automatic Bankruptcy Stay Sought For Foreign Proceedings

WILMINGTON, Del. — Citing reports of litigation in Bermuda and Israel, Chapter 11 debtor Vesttoo Ltd. and 48 affiliated debtors moved in Delaware federal bankruptcy court for enforcement of the automatic stay against Bermuda-based White Rock Insurance (SAC) Ltd. and “the putative joint provisional liquidators [JPLs] of segregated cells.”
August 22, 2023
CGL Insurer Disputes Coverage For Sex Trafficking Claims Against Hotel Insured

ATLANTA — A commercial general liability insurer filed suit in a federal court in Georgia, seeking a declaration that it owes no coverage for an underlying lawsuit alleging that its insured did not uphold its duty of care concerning the safety of its hotel and hotel guests by failing to prevent and respond to evidence of sex trafficking, arguing that the policy’s “Abuse or Molestation” and “Assault or Battery Liability” endorsements preclude coverage.
August 22, 2023
Judge Refuses To Reconsider Subcontractor’s Coverage Suit Over Worker Injuries

NEW YORK — A New York federal judge on Aug. 21 rejected a subcontractor’s request to reconsider her ruling in favor of its insurer in its lawsuit seeking coverage for claims brought by two of its workers.
August 22, 2023
Parties In Reinsurance Row Dispute Bifurcating Declaratory Judgment Claim

LOS ANGELES — Parties in a dispute over reinsurance billings have filed responses in a California court disagreeing on whether a declaratory judgment claim should be bifurcated, with the plaintiff saying it does not object to bifurcation and the defendants opposing bifurcation but saying it would be appropriate for the court to decide some factual issues before a jury trial.