Mealey's Insurance Pleadings

  • April 29, 2020

    Insurer:  Exclusions Bar Coverage For NRA’s Suit Against Former Advertising Agency

    DALLAS — An insurer on April 27 filed suit in a federal court in Texas, seeking a declaration that it has no duty to defend its advertising agency and communications firm insured and its officers against an underlying lawsuit in which the National Rifle Association of America asserts that the insured “exploited decades of trust and confidence in order to siphon assets from the NRA” (RSUI Indemnity Company v. Ackerman McQueen, Inc., et al., No. 20-01048, N.D. Texas).

  • April 28, 2020

    U.S. Government Challenges Offset Ruling For Insolvent Insurer’s Debt Under ACA

    WASHINGTON, D.C. — An insolvent insurer’s demand for payment under the Patient Protection and Affordable Care Act’s (ACA) reinsurance program fails because it had already been paid based on an offset of the amount owed by the insurer under the ACA’s risk adjustment program, the U.S. government argues in its April 27 opening brief to the Federal Circuit U.S. Court of Appeals (Michael Conway v. The United States, No. 20-1292, Fed. Cir.).

  • April 28, 2020

    Insurance Commissioner, Insurer’s Rehabilitator Object To Calling Appeal Frivolous

    SAN JUAN, Puerto Rico — Puerto Rico’s insurance commissioner and an auxiliary rehabilitator for an insolvent insurer argue in an April 24 opposition brief to a Puerto Rico federal court that a former employee of the insurer fails to raise any argument barring them from filing an interlocutory appeal from a denial of qualified immunity over a freedom of expression claim (Iván Colón Pérez, et al. v. Javier Rivera Ríos, et al., No. 19-1775, D. Puerto Rico).

  • April 27, 2020

    Florida Is Best Forum For COVID-19 Business Interruption Suits, Insured Tells JPMDL

    WASHINGTON, D.C. — A restaurant insured on April 24 filed a response in partial support of two motions asking the U.S. Judicial Panel on Multidistrict Litigation to coordinate current and tag-along lawsuits seeking business interruption coverage for losses arising from governmental closure orders prompted by the coronavirus pandemic, arguing, however, that the U.S. District Court of the Southern District of Florida is a better forum than the previously proposed Eastern District of Pennsylvania or the Northern District of Illinois (In re: COVID-19 Business Interruption Insurance Coverage Litigation, No. 2942, JPMDL).

  • April 27, 2020

    Insurer’s Rehabilitator: Insurance Fraud Suit Should Be Remanded

    BATON ROUGE, La. — An insolvent insurer’s rehabilitator in an April 23 memorandum asks a Louisiana federal court to remand a suit against the insurer’s various directors and officers, banks and a loan officer over allegations that they intentionally misled state insurance regulators on the insurer’s true financial condition (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).

  • April 27, 2020

    Pollution Exclusion Does Not Bar Coverage For Diesel Fuel Spill, Insured Contends

    BOSTON — A district court erred in finding that no coverage is owed for the cleanup of a gasoline and diesel fuel spill from an insured tanker-truck because the excess policy’s special hazards endorsement clearly provides coverage and the policy’s pollution exclusion cannot be construed to override that coverage, an insured and its insurer argue in a March 24 appellant brief filed in the First Circuit U.S. Court of Appeals (Performance Trans Inc., et al. v. General Star Indemnity Co., No. 20-1022, 1st Cir.).

  • April 24, 2020

    Denial Of Independent Counsel In Defects Case Was In Bad Faith, Insured Says

    LOS ANGELES — A remodeling company accuses its insurer of bad faith in an April 20 complaint filed in a California federal court over the insurer’s decision to deny a request for independent counsel in a lawsuit by homeowners for defective work in their home (Westside Remodeling Corporation v. James River Insurance Company, No. 20-03622, C.D. Calif.).

  • April 24, 2020

    Breach Of Contract Case With Reinsurer Must Be Arbitrated, Insurer Says

    NEW YORK — A Puerto Rico insurer argues in a April 21 motion that a New York federal court should send to arbitration a breach of contract dispute with a Bermuda life reinsurer over allegations that the reinsurer’s controlling owner improperly divested assets in a reinsurance trust (PB Life and Annuity Co. Ltd. v. Universal Life Insurance Co., No. 20-02284, S.D. N.Y.).

  • April 23, 2020

    Insured Sues All-Risk Insurer, Los Angeles Mayor In Coronavirus Coverage Dispute

    LOS ANGELES — An insured that owns, operates and/or manages a small commercial business center in La Canada Flintridge, Calif., filed suit in a California court on April 9, seeking a declaration that a March 15 order by the mayor of Los Angeles constitutes a prohibition of access to its premises and that any current and future civil authority closures of commercial buildings in the state due to physical loss or damage from the coronavirus are covered under its all-risk insurance policy’s civil authority coverage section (837 Foothill Blvd., LLC v. The Travelers Indemnity Company of Connecticut, et al., No. 20STCV13929, Calif. Super., Los Angeles Co.).

  • April 23, 2020

    Boy Scouts’ Insurer:  No Reconsideration Needed For Res Judicata Issue

    BOSTON — In a dispute over reinsurance billings for settlements of sexual molestation claims, the insurer for the Boy Scouts of America (BSA) argues in an April 17 brief that a Massachusetts federal judge already considered and rejected underwriters’ contention that the issue of res judicata under New York federal law is not arbitrable and must be resolved by the court (Century Indemnity Co. v. Certain Underwriters at Lloyd’s, London, No. 19-11056, D. Mass.).

  • April 23, 2020

    Insured Files Coronavirus Suit On Behalf Of Nationwide Class, New Jersey Subclass

    NEWARK, N.J. — A New Jersey restaurant on April 20 filed a declaratory judgment and breach of contract lawsuit on behalf of a nationwide class and New Jersey subclass, alleging that Chubb Ltd. has “wrongfully and illegally refused to provide coverage” for business income losses and other covered expenses related to the novel coronavirus (Truhaven Enterprises, Inc. v. Chubb Ltd, et al., No. 20-4586, D. N.J.).

  • April 22, 2020

    Sports Bar Responds To 2nd Order To Show Cause In Coronavirus Coverage Suit

    TAMPA, Fla. — A sports bar insured on April 21 responded to a Florida federal judge’s second order to show cause as to why its amended complaint against its commercial property insurer seeking coverage for its losses arising from the “COVID-19 governmental suspension of business operations” should not be dismissed for lack of diversity jurisdiction under 28 U.S. Code Section 1332(a)(1), 28 U.S.C. § 1332(a)(1), arguing that it “is not only what is owed under the contract, but what might be . . . owed under the policy” (Prime Time Sports Grill, Inc. v. DTW 1991 Underwriting Limited, No. 20-00771, M.D. Fla.).

  • April 21, 2020

    Insurer Sues Reinsurer For Breach Of Contract Over Asbestos Claims

    BOSTON — Lexington Insurance Co. filed a complaint in Massachusetts federal court on April 20 accusing a reinsurer of breaching a facultative reinsurance contract by not indemnifying it for asbestos claim payments (Lexington Insurance Company v. R&Q Reinsurance Company, No. 20-10763, D. Mass.).

  • April 21, 2020

    CGL Insurer’s Amended Complaint Must Be Dismissed For Lack Of Jurisdiction

    FAYETTEVILLE, Ark. — An insurer’s counterclaim and cross-claim in a coverage suit arising out of the insured’s manufacturing of defective chicken products should be dismissed because the Arkansas federal court does not have jurisdiction over the claims as diversity of citizenship no longer exists (Nationwide Mutual Insurance Co. v. Ozark Mountain Poultry Inc., et al., No. 20-05014, W.D. Ark.).

  • April 20, 2020

    Church Congregant Opposes Reinsurer’s Res Judicata Basis For Dismissal Of $1M Case

    BOSTON — In response to a reinsurer’s res judicata argument as a basis for dismissal, a church congregant argues in an April 16 brief to a Massachusetts federal court that he did not split his negligence claim in previous litigation with his current claim under Massachusetts consumer protection law with regard to inspections on a boiler and appurtenances at the church (Brian R. Bishop v. Hartford Steam Boiler Inspection and Insurance Company, No. 20-30029, D. Mass.).

  • April 20, 2020

    Insurers Tell 11th Circuit: Case With Runoff Reinsurer Should Not Be Arbitrated

    ATLANTA — Insurers argue in an April 17 appellant brief to the 11th Circuit U.S. Court of Appeals that a lower court erred in finding that their dispute with a reinsurer over a construction defects case settlement should be arbitrated because the arbitration clause does not apply when the reinsurer is in runoff (Builders Insurance, et al. v. Fletcher Reinsurance Co., No. 20-10969, 11th Cir.).

  • April 13, 2020

    Business Interruption Claim ‘Wrongfully Denied,’ Insured Argues In Coronavirus Suit

    HOUSTON — An insured on March 26 filed suit in a Texas court, alleging that its insurer “wrongfully denied” its claim for business interruption losses stemming from the coronavirus outbreak and “engaged its agents to misrepresent Policy provisions and coverage” (Barbara Lane Snowden v. Twin City Fire Insurance Company, No. 2020-19538, Texas Dist., Harris Co.).

  • April 13, 2020

    Reinsurer: City’s Alleged Wrongful Acts Predate Reinsurance Agreement

    TAMPA, Fla. — A reinsurer argues in an April 10 supplemental brief that a Florida federal court should grant it summary judgment because alleged wrongful acts against a city predate a reinsurance agreement, the claim is covered under a prior coverage agreement, the claim arose out of prior litigation and an inverse condemnation exclusion applies (Public Risk Management of Florida v. Munich Reinsurance America Inc., No. 18-1449, M.D. Fla.).

  • April 13, 2020

    Sports Bar Amends Coronavirus Complaint After Federal Judge Orders It To Show Cause

    TAMPA, Fla. — A sports bar insured on April 8 amended its complaint against its commercial property insurer seeking coverage for its losses arising from the “COVID-19 governmental suspension of business operations” five days after a federal judge in Florida issued a sua sponte order directing the insured to show cause as to why its complaint should not be dismissed for lack of diversity jurisdiction under 28 U.S. Code Section 1332(a)(1), 28 U.S.C. § 1332(a)(1) (Prime Time Sports Grill, Inc. v. Certain Underwriters at Lloyd’s London, No. 20-00771, M.D. Fla.).

  • April 10, 2020

    Underwriters Seek To Arbitrate Joint Risk Pool’s Breach Of Contract Case

    MISSOULA, Mont. — Underwriters in an April 7 motion ask a Montana federal court to send to arbitration a $2.65 million reinsurance dispute with a joint risk pool for an association of Montana counties over the underwriters’ alleged breach of contract in refusing to indemnify the pool for a personal injury settlement (Montana Association of Counties Property and Casualty Trust v. Certain Underwriters at Lloyds, No. 19-196, D. Mont.).

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