Mealey's Catastrophic Loss

  • July 07, 2021

    Insureds Seeks N.C. High Court’s Immediate Review Of Coronavirus Coverage Suit

    RALEIGH, N.C. — Restaurant insureds on June 24 asked the North Carolina Supreme Court to assume immediate jurisdiction of an insurer’s appeal of a lower court’s finding that “all-risk” insurance policies provide business income and extra expenses coverage for their loss of use and access to insured property mandated by the government response to the novel coronavirus pandemic, arguing that the “long-term viability of small businesses across our State hangs in the balance.”

  • July 07, 2021

    Court Prematurely Dismissed COVID-19 Coverage Suit, Florida Restaurant Argues

    ATLANTA — A Florida restaurant owner in a July 2 brief argues that its insurance policy contemplates recovery for its lost income caused by business interruption when its business activities are suspended due to direct physical loss or damage, asking the 11th Circuit U.S. Court of Appeals to reverse a lower federal court’s “overhasty” dismissal of its coronavirus coverage lawsuit.

  • July 06, 2021

    New York Justice Grants Insurer’s Motion To Dismiss Coronavirus Coverage Suit

    BROOKLYN, N.Y. — A New York justice on July 2 granted an insurer’s motion to dismiss a pizza place insured’s breach of contract lawsuit seeking coverage for its business losses and extra expenses stemming from the coronavirus pandemic, finding that the insurer’s documentary evidence “is of undisputed authenticity, unambiguous and undeniable, and has established defenses to the plaintiff’s claims as a matter of law, requiring dismissal of the complaint.”

  • July 06, 2021

    8th Circuit Affirms No Coverage For Oral Surgeons’ Losses Arising From COVID-19

    ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on July 2 affirmed a lower federal court’s dismissal of Oral Surgeons PC’s lawsuit seeking business interruption coverage for its losses arising from its closure prompted by the coronavirus pandemic, finding that the insured fails to allege any physical alteration of its property to trigger coverage.

  • July 02, 2021

    Magistrate Partly Grants Insurer’s Motion To Compel Discovery In Bad Faith Suit

    BATON ROUGE, La. — A federal magistrate judge in Louisiana on June 29 granted in part and denied in part a homeowners insurer’s motion to compel in a bad faith lawsuit arising from storm damage, finding that the plaintiff failed to comply with providing initial disclosures of damages under Federal Rule of Civil Procedure 26(a)(1)(A)(iii) and failed to fully respond to certain interrogatories and requests for production seeking information and documents related to the alleged damages.

  • July 02, 2021

    Judge: Construction Delays, Project Damages Fall Squarely Under Flood Exclusion

    SANTA ANA, Calif. — A federal judge in California on June 29 granted an insurer’s motion to dismiss with prejudice a breach of contract and bad faith lawsuit seeking builders risk coverage for damages caused by continuous rainfall at a jobsite, finding that the policy’s flood exclusion barred coverage.

  • July 02, 2021

    Federal Judge Rules For Insurer In Hampton Hotel Owner’s COVID-19 Coverage Suit

    OKLAHOMA CITY — A federal judge in Oklahoma on June 28 granted an insurer’s motion for summary judgment in a declaratory judgment lawsuit brought by the owner and operator of a Hampton Inn seeking overage for its losses arising from the slowdown of its business in the wake of the coronavirus pandemic, finding that the term “direct physical loss” is not ambiguous and that the insurer’s “proffered interpretation is the only reasonable one.”

  • July 02, 2021

    Judge: Virus Exclusions Bar Coverage For Business Losses Caused By Coronavirus

    WATERBURY, Conn. — A Connecticut judge on June 15 granted an insurer’s motion for summary judgment in its lawsuit disputing coverage for its insureds’ business losses arising from the coronavirus pandemic, finding that a package policy’s New York-related virus exclusion bars all of the insureds’ losses in New York and that the general virus exclusion applies to all of their other claimed losses.

  • July 01, 2021

    Judge: Boscov’s Losses ‘Bear No Causal Connection’ To Properties’ Physical Condition

    ALLENTOWN, Pa. — A federal judge in Pennsylvania on June 29 held that although Boscov's Department Store Inc.’s business has undoubtedly been impacted by the coronavirus pandemic, its “alleged losses bear no causal connection to the physical condition of its properties,” granting an insurer’s motion for judgment on the pleadings in Boscov’s breach of contract and bad faith lawsuit.

  • June 25, 2021

    Texas Supreme Court Refuses To Disturb MDL’s Transfer Of Hurricane Hanna Suits

    AUSTIN, Texas — The Texas Supreme Court on June 25 denied an insurer’s petition for writ of mandamus asking the high court to vacate the Texas Multi-District Litigation Panel’s grant of insureds' motion to transfer 40 Hurricane Hanna coverage cases to an MDL pretrial court, squashing the insurer’s argument that the insureds and their counsel “highjacked” the panel’s relatedness test “into an unconstrained sword.”

  • June 17, 2021

    Judge Denies Insurer’s Interlocutory Appeal Request In COVID-19 Bellwether Cases

    CHICAGO — A federal judge in Illinois on June 15 denied an insurer’s motion for certification of interlocutory appeal of his refusal to dismiss business interruption coverage and bad faith claims brought against it in three bellwether lawsuits arising from the governmental shutdown of hospitality businesses in the wake of the coronavirus pandemic.

  • June 16, 2021

    Judge Excludes Adjuster In Insurance Coverage Spat, Grants Summary Judgment

    ORLANDO, Fla. — An adjuster who opined that damage to a roof was caused by a storm does not meet the standards for an expert witness under Daubert v. Merrell Dow Pharmaceuticals Inc., a federal judge in Florida ruled June 14 and granted summary judgment to the insurer after finding that a couple could not prove their claim.

  • June 14, 2021

    Texas High Court Denies Insureds’ Petition For Review In Bad Faith Coverage Suit

    AUSTIN, Texas — The Texas Supreme Court on June 11 denied a petition for review filed by insured homeowners who assert that the Second District Texas Court of Appeals erred in remanding to the trial court the issue of whether the insureds are entitled to damages for the insurer’s alleged violation of the Texas Prompt Payment Claims Act (TPPCA) in handling the insureds’ claim for hail and wind damage to their home.

  • June 11, 2021

    Texas Panel:  Court Abused Discretion In Instructing Jury In Storm Coverage Suit

    EDINBURG, Texas — A Texas appeals panel on June 10 held that a jury instruction failed to accurately state the law and improperly commented on the weight of the evidence and a lower court abused its discretion in instructing the jury as it did, reversing the lower court’s take-nothing judgment in favor of the insurer in a coverage dispute over storm damage and remanding for a new trial.

  • June 10, 2021

    Complete Diversity Does Not Exist In Pollution Cleanup Costs Suit

    SHREVEPORT, La. — A Louisiana federal judge on June 7 dismissed an insurer’s suit seeking a declaration that it has no duty to indemnify its insured for pollution cleanup costs after determining that complete diversity does not exist as the insurer and some of the publicly traded members of one of the defendants are residents of the same state.

  • June 09, 2021

    Federal Magistrate Grants Motion To Compel Deposition Of Insurer’s Claims Manager

    BATON ROUGE, La. — A federal magistrate judge in Louisiana on June 7 granted in part and denied in part a plaintiff’s motion to compel production, compelling the deposition of a homeowners insurer’s claims manager but denying the insured’s motion to compel production of documents involving the insurer’s employee in a bad faith lawsuit arising from storm damage.

  • June 08, 2021

    R.I. Judge: Insured States Civil Authority Coverage Claim In Coronavirus Dispute

    PROVIDENCE, R.I. — A Rhode Island judge on June 4 granted in part and denied in part an insurer’s motion to dismiss a nightclub operator insured’s coronavirus coverage dispute, finding that the insured sufficiently stated a claim for civil authority coverage and that the insurer has failed to satisfy its burden of proving that the virus exclusion applied to bar coverage for the insured’s civil authority coverage claim.

  • June 08, 2021

    Insured Rebuffs Insurer’s Plea To Amend Order Refusing To Dismiss COVID-19 Suit

    MINNEAPOLIS — A barbershop owner insured on June 4 asked a federal judge in Minnesota to deny an insurer’s request to amend a June 2 order that partly denied the insurer’s motion to dismiss the insured’s coronavirus coverage lawsuit, arguing that the insurer fails to establish that this lawsuit is exceptional enough to warrant interlocutory appeal.

  • June 07, 2021

    Franchise Owners Appeal Dismissal Of $41M Coronavirus Coverage Dispute

    NEWARK, N.J. — Owners of more than 120 franchise locations under the brands Wendy's, T.G.I. Friday's, Marriott and Hilton filed a notice of appeal in a New Jersey federal court on June 4 indicating they are seeking the Third Circuit U.S. Court of Appeal’s review of the lower court’s dismissal of their breach of contract lawsuit alleging $40,798,390 in damages for their losses resulting from the coronavirus pandemic.

  • June 07, 2021

    Plethora Of Bar, Restaurant Owners, Operators Sue Insurer For Coronavirus Losses

    CHICAGO — Owners and operators of various bars, restaurants and taverns, including the Buffalo Wild Wings franchise, sued their property and casualty insurer in a federal court in Illinois on June 2 for its failure to provide coverage for their lost business income arising from the ongoing coronavirus pandemic and subsequent executive orders issued by Illinois Gov. J.B. Pritzker.

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