Mealey's Insurance Pleadings

  • August 25, 2021

    Puerto Rico Insurance Commissioner Again Reports Stay Of Appeal Remains In Effect

    BOSTON — The Puerto Rico insurance commissioner and auxiliary rehabilitator on Aug. 18 informed the First Circuit U.S. Court of Appeals that proceedings filed by the commonwealth of Puerto Rico under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) for adjustment of its debts are ongoing and that the automatic stay of proceedings in their appeal over retaliation claims brought by the former employees of a liquidated insurer remains in effect.

  • August 25, 2021

    Insured: Insurer Throws ‘Bedrock Principles Of Contract Construction To The Wind’

    ATLANTA — An insured on Aug. 17 defended its appeal asking the 11th Circuit U.S. Court of Appeals to reverse a lower federal court’s dismissal of its breach of contract lawsuit seeking coverage for its business losses that were “directly caused” by government “stay-at-home” orders in response to the novel coronavirus pandemic, contending that as much as the insurer “would like Florida law to support its arguments, the fact remains that it does not.”

  • August 25, 2021

    Amicus Curiae Supports Motion For Full Panel Rehearing Of Data Breach Coverage Suit

    NEW ORLEANS — Amicus curiae American Property Casualty Insurance Association on Aug. 20 filed a brief in support of a commercial general liability insurer’s petition for rehearing en banc after a quorum panel of the Fifth Circuit U.S. Court of Appeals reversed a lower federal court’s finding that it has no duty to defend against an underlying lawsuit seeking to recover damages purportedly caused by a data breach of the insured’s credit card processing system.

  • August 25, 2021

    Firm Tells 5th Circuit It Held Stolen Funds, Phishing Incident Was Covered By Policy

    NEW ORLEANS — Even though millions of dollars that were stolen in a phishing incident were in the account of its payment processing vendor at the time of the attack, a software and analytics firm tells the Fifth Circuit U.S. Court of Appeals in an Aug. 13 reply brief that it was in full control of the funds and, therefore, the loss should be covered under its commercial crime insurance policy.

  • August 24, 2021

    $8.4M In Prejudgment Interest Would Be Improper Windfall, Reinsurer Argues

    ALBANY, N.Y. — The $8,444,834 in prejudgment interest that an insurer seeks would constitute an improper windfall under New York law, a reinsurer on Aug. 19 told a federal judge in New York in a dispute over defense costs paid for asbestos liabilities, opposing an insurer’s motion to correct or amend a $10,901,005 judgment in the insurer’s favor to include prejudgment interest.

  • August 24, 2021

    Reinsurer To 11th Circuit:  Affirm No Coverage Ruling For Wrongful Acts Defense

    ATLANTA — A federal judge in Florida correctly entered summary judgment in its favor because the defense costs at issue fell under a different coverage agreement, a reinsurer asserts in its Aug. 19 appellant brief in a breach of contract dispute, urging the 11th Circuit U.S. Court of Appeals to affirm the ruling that it does not owe reimbursement to a self-insured intergovernmental risk management association.

  • August 24, 2021

    No Coverage Due For Contamination Under Pollution Exclusion, Insurer Says

    URBANA, Ill. — No coverage is afforded for water contamination and environmental contamination caused by the rupture of a gasoline pipeline by an insured who was completing work on a farm because a pollution exclusion contained in a commercial general liability policy and an umbrella policy applies as a bar to coverage, an insurer asserts in an Aug. 13 complaint filed in Illinois federal court.

  • August 22, 2021

    Excess Insurers Say No Coverage Owed For Underlying Asbestos Suits

    NEW HAVEN, Conn. — An insured is not entitled to coverage for underlying asbestos bodily injury lawsuits because the underlying limits of the primary policies have not been exhausted, two umbrella liability insurers assert in an Aug. 9 complaint filed in Connecticut federal court.

  • August 17, 2021

    Reinsurer Moves For New Trial Or Change In $10.9M Judgment For Insurer On Asbestos

    ALBANY, N.Y. — Arguing that it is entitled to a new trial or altered or amended judgment, a reinsurer on Aug. 5 filed two notices of motions in a federal court in New York regarding a jury verdict that awarded $10,901,005 to an insurer in a dispute over defense costs paid for asbestos liabilities, citing in part a Second Circuit U.S. Court of Appeals decision issued after the trial; the reinsurer also challenged a requested award of $8,444,834 in prejudgment interest.

  • August 16, 2021

    Utica Petitions 2nd Circuit For En Banc Rehearing Of Case Decided For Reinsurers

    NEW YORK — A panel’s combined ruling in favor of two reinsurers in asbestos billings and certificate disputes conflicts with prior decisions on the meaning of “covered” and “coverage” and on inconsistent reinsurance allocations, Utica Mutual Insurance Co. says in an Aug. 12 petition for rehearing en banc before the Second Circuit U.S. Court of Appeals.

  • August 12, 2021

    Claims Against Senior Living Facility, Owners Fail To Trigger Coverage, Insurer Says

    RICHMOND, Va. — A professional liability insurer on Aug. 3 asked the Fourth Circuit U.S. Court of Appeals to reverse a federal court’s finding that it has a duty to defend against an underlying class action alleging that a senior living facility and its owners breached their contractual duties to provide adequate staffing and personal care, arguing that the underlying complaint fails to assert damages because of an injury that was “caused by” a professional health care incident to trigger coverage.

  • August 11, 2021

    Apartment Contractor: Firing Of Subcontractor Not Required For Indemnification

    BOSTON — A trial court erred in finding that an apartment building contractor had to terminate a subcontractor accused of fabricating defective windows and other modular components in order for a subcontractor’s insurer to indemnify the contractor as “it is difficult if not impossible to provide a practical justification to require termination AFTER the work is completed,” the contractor argues in its reply brief filed July 22 in the First Circuit U.S. Court of Appeals.

  • August 10, 2021

    Insurer Says Total Pollution Exclusion Bars Coverage For Polluted Water Suit

    ROME, Ga. — No coverage is afforded for a suit alleging that an insured’s operations intentionally caused waterways and drinking water to become polluted because the policies’ total pollution exclusion bars coverage, an insurer asserts in an Aug. 1 complaint filed in Georgia federal court.

  • August 09, 2021

    CGL Insurers: No Coverage For Surfside Collapse Suits Against Engineering Firm

    BALTIMORE — Two commercial general liability insurers on Aug. 4 filed suit in a Maryland federal court disputing coverage for underlying lawsuits brought against their engineering firm insured by victims of the June 24 partial collapse of a Surfside, Fla., condominium high-rise, alleging that numerous policy exclusions preclude coverage for damages arising from the insured’s rendering or failure to render professional services.

  • August 05, 2021

    MDL Plaintiffs Seek To Enjoin State Court Proceedings In Coronavirus Coverage Suit

    CHICAGO — Hospitality industry insured plaintiffs on Aug. 3 moved for an injunction of all pending and future state court class actions in which insureds of Society Insurance Co. seek business interruption protection coverage arising out of the coronavirus pandemic until proceedings in a multidistrict litigation are completed, arguing to a federal court in Illinois that an injunction “is necessary to prevent Society from attempting to conduct a reverse auction with state court class action plaintiffs to the detriment of the Plaintiffs in this MDL.”

  • August 05, 2021

    Government Seeks Rehearing To Vacate $24.5M ACA Award For Insurer’s Liquidator

    WASHINGTON, D.C. — The U.S. government on Aug. 2 filed a petition for a panel rehearing of the Federal Circuit U.S. Court of Appeals’ May 17 rejection of its appeal seeking to vacate a $24.5 million award for an insolvent insurer’s liquidator, challenging the court’s finding that it does not have a right to offset Patient Protection and Affordable Care Act (ACA) obligations during the insolvency proceeding and that the U.S. Court of Federal Claims’ money judgment was proper.

  • August 05, 2021

    COVID-19, Shutdown Orders Can Constitute Direct Physical Loss, Damage, Insured Says

    COLUMBUS, Ohio — Arguing that insurers are bound by what their insurance policy says and not what they wish it said, an insured in an Aug. 3 merits brief asks the Ohio Supreme Court to answer yes to a federal court’s certified question asking whether “the general presence in the community, or on surfaces at a premises, of the novel coronavirus known as SARS-CoV-2” constitutes “direct physical loss or damage to property; or does the presence on a premises of a person infected with COVID-19 constitute direct physical loss or damage to property at that premises?”

  • August 03, 2021

    Church Withdraws Appeal Of Contrary Ruling, Jury Verdict In Hurricane Matthew Suit

    ATLANTA — A church insured on July 30 withdrew its appeal in the 11th Circuit U.S. Court of Appeals challenging a Georgia federal court’s grant of summary judgment in favor of its insurer on a bad faith claim and a jury verdict in favor of the insurer on a breach of contract claim in a coverage dispute arising from Hurricane Matthew water damage.

  • August 03, 2021

    Appellant To 9th Circuit: Challenge To Conservatorship Of Insurer Wrongly Dismissed

    PASADENA, Calif. — In their July 26 appellants’ brief before the Ninth Circuit U.S. Court of Appeals challenging the dismissal of their allegations that the California insurance commissioner and his deputies violated their constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer, a different insurer and its subsidiary argue that the doctrine of prior exclusive jurisdiction and abstention under Younger v. Harris do not apply.

  • August 03, 2021

    Reinsurer Seeks Reassignment Of Breach Of Contract Case Over Asbestos Billings

    SYRACUSE, N.Y. — An insurer’s new lawsuit over billing for asbestos coverage should be reassigned because it is “only tangentially related” to a prior case handled by the judge to which it is currently assigned and “inextricably” related to another case over which a different judge presided, a reinsurer asserts in a July 30 letter motion to a federal court in New York.

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