Mealey's Catastrophic Loss
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May 09, 2022
11th Circuit: COVID-19 Did Not Cause ‘Tangible Alteration’ To Properties, No Coverage
ATLANTA — An 11th Circuit U.S. Court of Appeals panel on May 5 held that, under Florida law, “all-risk” commercial insurance policies do not provide coverage for losses and expenses incurred by businesses as a result of the coronavirus because COVID-19 did not cause a “tangible alteration” of their insured properties.
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May 06, 2022
Insurer Asks Delaware High Court To Affirm Dismissal Of Coronavirus Coverage Suit
NEW CASTLE, Del. — An insurer on April 28 answered an insured’s appeal to the Delaware Supreme Court seeking to overturn a lower court’s finding that an insurance policy’s “Pollution and Contamination” exclusion unambiguously bars coverage for the insured’s economic losses resulting from the coronavirus pandemic and related government shutdowns of its six family entertainment centers and two water parks in three states.
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May 06, 2022
Florida Panel Reverses Order Compelling Appraisal In Hurricane Irma Coverage Suit
MIAMI — A Florida appeals panel on May 4 held that a Hurricane Irma coverage dispute was not ripe for appraisal because a condominium association insured and its insurer never engaged in an exchange of information that sufficiently established a genuine disagreement over the amount of the insured’s loss, finding that a lower court erred in granting the insured’s “premature” motion to compel appraisal.
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May 05, 2022
Federal Judge Refuses To Sever Extracontractual Claims In Property Damage Suit
DALLAS — A Texas federal judge on April 29 denied a homeowners insurer’s motion to sever an insured’s extracontractual claims from the contractual claims arising out of a property damage coverage dispute because severing the claims would not be judicially efficient and the insurer failed to show that it would be prejudiced if the claims proceed together.
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May 03, 2022
Panel: Virus Exclusion Bars Coverage For California Venue Owner’s Business Losses
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on May 2 held that a California venue owner insured cannot demonstrate that the government's response to the coronavirus was the product of anything other than the virus, affirming a lower federal court’s ruling that the insurance policy’s virus exclusion precludes coverage for its claim for business losses.
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May 03, 2022
Architect For Neighboring Building Files Third-Party Claims In Condo Collapse Case
MIAMI — The architect for the “Eighty-Seven Park,” a building constructed next to Champlain Towers South (CTS), a Surfside, Fla., condominium building that partially collapsed in June 2021, filed a cross-claim and third-party complaint on April 29 in a Florida court, along with its answer to putative class claims over the collapse, seeking indemnity from others involved in the construction of Eighty-Seven Park and contribution of damages from the engineer that inspected CTS prior to the collapse.
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May 02, 2022
N.Y. Health Care Provider, Insurer Agree To Dismiss Coronavirus Coverage Dispute
NEW YORK — Less than one month after a federal judge in New York granted in part and denied in part a health care premises pollution liability insurer’s motion to dismiss New York state's largest health care provider and private employer’s lawsuit seeking coverage for its losses arising from the coronavirus pandemic, the parties on April 22 filed a stipulation of dismissal with prejudice.
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May 02, 2022
9th Circuit: Coverage Claims In Coronavirus Suit Foreclosed By Inns By The Sea
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on April 20 affirmed a lower federal court’s dismissal of insureds’ breach of contract lawsuit seeking coverage for their economic losses resulting from the closures of their retail store and 23 “gentlemen’s” clubs in response to the coronavirus pandemic, finding that Inns by the Sea v. California Mut. Ins. Co. forecloses the insureds’ coverage claims.
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April 29, 2022
Texas Panel Affirms Ruling In Favor Of Insurance Agent In Hurricane Harvey Dispute
HOUSTON — A Texas appeals panel on April 28 affirmed a lower court’s ruling in favor of an insurance agent in insureds’ negligence lawsuit seeking to recover their losses caused by Hurricane Harvey, rejecting the insureds’ contention that the agent owed additional common-law duties than what is required.
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April 27, 2022
Iowa High Court Again Sides With Insurer In Coronavirus Coverage Dispute
DES MOINES, Iowa — Noting that it addressed similar insurance policy provisions in a companion case decided the same day, the Iowa Supreme Court on April 22 again affirmed a lower court’s finding that there is no coverage under a commercial property insurance policy’s Business Income, Extra Expense and Civil Authority provisions for an insured’s loss of use of its property stemming from the coronavirus pandemic.
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April 27, 2022
2nd Circuit: Court Did Not Err In Confirming Arbitration Award In Superstorm Dispute
NEW YORK — The Second Circuit U.S. Court of Appeals held on April 25 that a lower federal court did not err in denying an insured’s motion to vacate a $284,438.43 arbitration award in a Superstorm Sandy coverage dispute, finding that the insured failed to show that the umpire intentionally disregarded the law in his arbitration award.
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April 26, 2022
California Panel: Talent Agency Fails To Allege Direct Physical Loss Or Damage
LOS ANGELES — A California appeals panel on April 22 affirmed a lower court’s ruling in favor of commercial property insurers in a coronavirus coverage dispute, finding that the talent agency insured failed to demonstrate that the presence of the coronavirus constituted physical damage to its property.
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April 26, 2022
N.C. Judge Refuses To Compel Insurers To Provide Responses As To Claim Reserves
CHARLOTTE, N.C. — A North Carolina judge on April 22 denied insureds’ motion to compel insurers to provide their claim reserve information in the discovery phase of a coverage dispute arising from the insureds’ losses following an incident at its iron ore processing facility.
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April 25, 2022
‘Loss Of Use’ Without Something More Is Not Enough, Iowa High Court Affirms
DES MOINES, Iowa — Faced with its first opportunity to address whether an insured’s mere loss of use of business property constituted “direct physical loss of or damage to property” to trigger business interruption coverage under an all-risk commercial property insurance policy, the Iowa Supreme Court on April 22 affirmed a lower court’s ruling that a private golf and country club owner insured failed to demonstrate that it incurred “direct physical loss of or damage to” its property.
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April 25, 2022
Restaurants, Dental Practice Fail To Allege ‘Physical Loss,’ 8th Circuit Affirms
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on April 22 affirmed a lower federal court’s ruling in favor of the operator of two St. Louis restaurants and a pediatric dental practice in a coronavirus coverage dispute, finding that the insureds failed to allege a “physical loss” to trigger coverage.
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April 22, 2022
Panel: Under ‘Clear’ California Law, Physical Loss Must Have Material Existence
LOS ANGELES — A California appeals panel on April 21 held that “California law is clear” that physical loss and damage must have a material existence, affirming a lower court’s dismissal of a Hollywood restaurant insured’s breach of contract and bad faith coverage lawsuit arising from the coronavirus pandemic.
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April 22, 2022
Massachusetts High Court Affirms No Coverage For Restaurants In COVID-19 Suit
BOSTON — The Massachusetts Supreme Judicial Court on April 21 affirmed a lower court’s ruling that restaurant insureds’ business income losses arising from the coronavirus pandemic were not “direct physical loss of or damage to” their insured properties.
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April 20, 2022
$83M Allocation Agreement Approved In Florida Condo Collapse Case
MIAMI — A Florida judge on April 6 issued a final bar order approving an $83 million allocation settlement agreement in a consolidated putative class case over the June 2021 partial collapse of the Champlain Towers South Condominium Building (CTS) in Surfside, Fla.
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April 19, 2022
Judgment Entered In Insurer’s Favor After Jury Finds No Breach Of Contract
WINCHESTER, Tenn. — A federal judge in Tennessee on April 14 entered a judgment in favor of a homeowners insurer in a lawsuit arising from tornado property damage after a jury found that the insureds have failed to prove by a preponderance of the evidence that the insurer committed breach of contract.
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April 18, 2022
Dental Insured’s 2nd Circuit Appeal Withdrawn In Coronavirus Coverage Dispute
NEW YORK — The Second Circuit U.S. Court of Appeals on April 14 issued a mandate indicating that parties stipulated to withdrawing a dental insured’s appeal of a Connecticut federal judge’s dismissal of its amended complaint seeking coverage for its losses arising from the coronavirus and subsequent shutdown orders.