TOPEKA, Kan. — A insurer on June 3 filed a dismissal with prejudice of its lawsuit disputing directors and officers liability coverage for underlying shareholder claims after the insurer, in response to a federal magistrate judge in Kansas’ order to show cause, indicated that it “waited to effectuate service because the parties were engaged in good faith negotiations.”
AUSTIN, Texas — After the Fifth Circuit U.S. Court of Appeals certified two questions in a coverage dispute over $1.2 million in stolen gold coins to the Texas Supreme Court, an insurer in a June 7 brief argues that an insurance policy’s “invalid payments exclusion” barred coverage for the insured’s loss.
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on June 7 held that an appellant failed to demonstrate that a taxi cab company’s insurer increased his risk or that the taxi company relied on the insurer's background checks, affirming a lower federal court’s ruling that the insurer did not undertake a duty to the insured’s passengers.
ELIZABETH CITY, N.C. — A federal judge in North Carolina on June 8 denied an excess insurer’s motion to dismiss Duke University’s breach of contract, bad faith and unfair and deceptive trade practices claims in its lawsuit seeking coverage for underlying antitrust claims, finding that a 2020 antitrust class action relates back to a 2015 antitrust class action to trigger coverage.
TRENTON, N.J. — A New Jersey appeals court on June 9 rejected an attorney insured’s contention that a professional liability insurance policy must be reformed because it failed to comply with the requirements of New Jersey Rule of Court 1:21-1B(a)(4), affirming a lower court’s summary judgment ruling in favor of the insurer in a coverage dispute over approximately $800,000 in client funds that were allegedly misappropriated by a paralegal.
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.
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.
ATLANTA — The 11th Circuit U.S. Court of Appeals on June 7 affirmed a lower federal court’s ruling that a commercial general liability insurer has no duty to defend or indemnify its apartment complex owner insured against an underlying lawsuit arising from a fatal shooting that occurred at one of its properties, finding that a reasonable reader would not construe the application and insurance policy to cover the property where the shooting occurred.
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.
AUSTIN, Texas — No coverage is afforded for an underlying shareholder derivative lawsuit filed against an insured ice cream product manufacturer and its directors and officers following a Listeria outbreak because the underlying suit is not a suit seeking damages for bodily injury caused by an occurrence as required by the policies, the insurers say in a June 3 complaint filed in Texas federal court.
BATON ROUGE, La. — A Louisiana appeals panel on June 4 found that there is no genuine issue of material fact regarding whether a homeowners insurer established that a child meets the definition of a “resident relative” of the insured premises, affirming a lower court’s ruling that a “resident relative” exclusion bars coverage for an underlying wrongful death lawsuit.
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.
COOKEVILLE, Tenn. — A Tennessee federal judge on June 1 dismissed an environmental professional liability insurer’s lawsuit seeking a declaration that no coverage is owed for an underlying suit filed against the insured after determining that the insurer’s suit is moot based on the dismissal of the underlying lawsuit against the insured.
SEATTLE — A federal judge in Washington on May 28 granted insurers’ motion to dismiss consolidated class actions of hundreds of western Washington businesses seeking coverage for their lost income stemming from the coronavirus pandemic, finding that COVID-19 does not cause the physical loss or damage to the insureds’ property that is required as a condition precedent to trigger coverage.
TALLAHASSEE, Fla. — Answering a certified question in the affirmative, the Florida Supreme Court on June 3 found that an insurer has standing to maintain a legal malpractice lawsuit against counsel who was hired to represent its insured where the insurer is contractually subrogated to the insured's rights under the policy.
WEST PALM BEACH, Fla. — A Florida appeals panel on June 2 held that a commercial general liability insurer did not have a duty to indemnify police officers against an underlying civil rights violations lawsuit because their misconduct did not occur during the policy periods, reversing a lower court’s summary judgment ruling in favor of the officers.
LAKE CHARLES, La. — An insurer acted in bad faith and breached the terms of a homeowners insurance policy by failing to timely tender compensation to its insureds and undervalued the damages sustained for covered losses as a result of losses sustained by Hurricane Laura, the insureds allege in a complaint filed June 1 in Louisiana federal court.
LITTLE ROCK, Ark. — An Arkansas appeals panel on June 2 affirmed a lower court’s ruling that a commercial general liability insurance policy is ambiguous as to its applicable liability limits and the insurer is not owed a credit for the $5,000 in medical payments that it already paid to the estate of a 3-year-old who died after choking on a hot dog given to him by a day care insured.
From a convention center owner’s appeal to the Seventh Circuit U.S. Court of Appeals to an insurer accusing an art gallery of “misdirection,” Mealey Publications takes a look at the latest pleadings relating to insurance coverage for COVID-19.
FRESNO, Calif. — A federal magistrate judge in California on May 24 recommended that an entry of default judgment be entered against an insured’s employee in an insurer’s lawsuit alleging that the employee misappropriated $263,888 from its insured, finding that all of the factors in Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986), weigh in favor of granting the default judgment and granting the insurer’s request for of $263,888 in damages.