NEW YORK — A federal judge in New York erred in finding that an exclusion barring coverage for losses related to an insured’s misuse of funds did not apply to one of three property and project management service company plaintiffs in a declaratory judgment suit against their insurer, and the judge “at a minimum” should find that the exclusion bars coverage for that company, the insurer says in an Oct. 14 motion seeking reconsideration or certification for interlocutory appeal of the judge’s order that it must continue to defend the companies in a suit related to persistent construction and design defects with the balconies of a condominium.
DENVER — Saying its insurer “raises no new arguments, precedent, or facts,” a glass subcontractor accused of negligence and breach of contract in connection with its alleged faulty installation of windows and doors at a condominium complex and the condominium association urge a Colorado federal court in an Oct. 13 brief to not reconsider its order denying the insurer’s motion for partial summary judgment or certify the order for interlocutory appeal.
FORT LAUDERDALE, Fla. — A subcontractor sued for its alleged negligence in furnishing materials and installing the glass façade of a casino and hotel on Oct. 18 filed a notice of appeal in Florida federal court indicating its intent to appeal to the 11th Circuit U.S. Court of Appeals the lower court’s ruling that an insurer has no duty to defend and indemnify it in the underlying action.
SAVANNAH, Ga. — A federal judge in Georgia on Oct. 12 granted an insurer’s motion for entry of a final default judgment against a Baptist church insured’s former pastor in its declaratory judgment lawsuit disputing coverage for an underlying lawsuit alleging that the pastor subjected a minor to repeated acts of sexual abuse when she attended the church.
SAN FRANCISCO — Small businesses that own and operate Minor League Baseball (MiLB) teams on Oct. 15 filed a petition seeking a panel rehearing or rehearing en banc of the Ninth Circuit U.S. Court of Appeals’ Oct. 1 ruling that affirmed a federal court’s dismissal of their breach of contract and declaratory judgment coronavirus coverage lawsuit brought against insurers, arguing that the panel “misapplied or overlooked key issues of fact and law regarding the doctrines of efficient proximate causation and regulatory estoppel.”
PHILADELPHIA — Century Indemnity Co. on Oct. 14 petitioned a Pennsylvania federal court to appoint an umpire in arbitration over “a complex and confidential dispute” over whether Certain Underwriters at Lloyd’s, London, is required to reimburse Century’s reinsurance bills.
SAN FRANCISCO — In an Oct. 15 petition for panel rehearing of the Ninth Circuit U.S. Court of Appeals’ Oct. 1 ruling that affirmed a lower court’s dismissal of its putative class action seeking coverage for class members’ “substantial financial losses” resulting from the coronavirus and subsequent civil authority orders, the insured argued that the panel failed to answer “whether the presence of the SARS-CoV-2 virus causes ‘direct physical loss of or damage to property’ as that phrase is commonly used in all-risk property insurance policies.”
ATLANTA — A group of insurers, reinsurers and retrocessionaires on Oct. 14 filed suit in a Georgia federal court as subrogees of the owner of an Algerian power plant seeking no less than $28 million in damages against General Electric International Inc. (GE International) and related entities in relation to a November 2019 incident.
SAVANNAH, Ga. — An underlying claimant on Sept. 27 appealed a Georgia federal court’s finding that her lawsuit against a Baptist church is excluded from coverage because it arose out of its pastor’s purported sexual abuse.
SAN DIEGO — Individuals who allege that they were sold counterfeited and nonexistent PregnancyCare insurance policies under “supposed captive reinsurance programs” filed a putative class complaint in California federal court on Oct. 11, claiming violation of California’s unfair competition law (UCL), negligent misrepresentation and unjust enrichment.
BALTIMORE — An engineering firm insured on Oct. 5 moved for a Maryland federal court to dismiss two commercial general liability insurers’ lawsuit disputing coverage for underlying lawsuits brought by victims of the June 24 partial collapse of a Surfside, Fla., condominium high-rise, arguing that the insurers failed to join necessary and indispensable parties.
RALEIGH, N.C. — Golden Corral Corp. and Golden Corral Franchising Systems filed a notice in a North Carolina federal court on Oct. 6 indicating that they are appealing the court’s grant of an insurer’s motion for judgment on the pleadings and dismissal of their bad faith lawsuit seeking coverage for their financial losses arising from the suspension of their restaurant operations in response to the government orders prompted by the coronavirus pandemic.
LOS ANGELES — An insurer sued reinsurers over billings for claims related to asbestos and other issues in California state court on Sept. 30, alleging breach of contract and seeking declaratory relief; the insurer also moved for an order to seal information related to prior settlement agreements.
SAN FRANCISCO — A solar power company asserts in a complaint filed Sept. 27 in federal court in California that an insurer had a duty to defend it, as an additional insured, against lawsuits following a gas explosion because the insurer agreed to defend the company against some of the lawsuits and the lawsuits all arose from the same incident.
FLORENCE, S.C. — An insurance company says in a lawsuit filed Sept. 28 in federal court in South Carolina that it has no duty to defend or indemnify a subcontractor in a construction defects suit filed by a homeowners association against the subcontractor because the insurance policies issued to the subcontractor were not in effect during or after the completion of the project.
SOUTH BEND, Ind. — A property owner’s challenges to an insurer’s declaratory judgment complaint against its contractor “are not procedurally supported and do not demonstrate a lack of jurisdiction, but rather present an attempt to have this Court voluntarily dismiss or defer” the action in favor of the property owner’s underlying state court action, an insurer tells a federal court in Indiana in a Sept. 22 opposition brief.
DETROIT — Allowing a second amended complaint after discovery in a dispute over billings for asbestos claims would be untimely and prejudicial and “would fundamentally change the nature and scope of this case,” a reinsurer argues in a Sept. 28 brief filed in a federal court in Michigan; in its Oct. 5 reply, the insurer contends that the request is proper because it has “consistently asserted ad damnum demands for fees” and seeks to conform its pleading to orally discovered facts.
YAKIMA, Wash. — A farmer and his company fraudulently obtained hundreds of thousands of dollars in crop insurance indemnity payments reinsured by the Federal Crop Insurance Corp. (FCIC) by falsely claiming losses to wheat crops, the government alleges in a complaint filed Sept. 28 in a federal court in Washington under the Financial Institutions Reform and Recovery Enforcement Act (FIRREA) and the False Claims Act.
ELIZABETH, N.C. — Calling Duke University’s motion to compel “completely unmeritorious,’ an excess insurer argues in a Sept. 23 opposition brief that Duke’s motion “is really an attempted distraction” from the university’s refusal to produce documents and information that are “actually relevant” to its lawsuit seeking coverage for underlying antitrust claims.
SAN FRANCISCO — In a Sept. 26 docket entry, the Ninth Circuit U.S. Court of Appeals filed notice of oral argument scheduled for Dec. 7 in a suit alleging that California state regulators abused their authority in obtaining a conservatorship against a workers’ compensation insurance carrier; the appeal followed a federal judge in California’s dismissal of the suit upon determining that the prior exclusive jurisdiction rule and abstention under Younger v. Harris apply.