WILMINGTON, Del. — Private equity firms insureds and one of their insurers on July 30 filed a stipulation seeking to dismiss with prejudice the insurer from the insureds’ lawsuit seeking coverage for their $120 million settlement with the bankruptcy estate of a retail fashion holding company they acquired.
ALLENTOWN, Pa. — One month after a federal judge in Pennsylvania 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,” Boscov’s on July 29 filed a notice of appeal to the Third Circuit U.S. Court of Appeals challenging the no coverage ruling in its breach of contract and bad faith lawsuit against its insurer.
SPRINGFIELD, Ill. — In July 30 replies to supplemental briefs, a railroad company and reinsurer Illinois Mine Subsidence Insurance Fund (IMSIF) spar about whether there is subject matter jurisdiction for claims in federal court in Illinois; the railroad seeks declarations and injunctive relief over the reinsurer’s pursuit of reimbursement as subrogee for mine subsidence claims that IMSIF paid on behalf of subrogor property owners.
SAN FRANCISCO — Expediting an appeal contesting a California federal judge’s dismissal of allegations that state regulators abused their authority by actions including obtaining a conservatorship against a workers’ compensation insurance carrier is not warranted and would be prejudicial, the regulators tell the Ninth Circuit U.S. Court of Appeals in their July 27 opposition to a motion to expedite.
NEWARK, N.J. — In a July 14 answer to an amended complaint filed in New Jersey federal court about environmental investigation and remediation at an insured property, an insurer asserts numerous affirmative defenses including that the insured “is barred from bringing a claim against the defendant by virtue of being made whole through the voluntary settlement of a previous matter.”
NEW ORLEANS — Under a “straightforward application of contract law,” two insurers tell the Fifth Circuit U.S. Court of Appeals in July 23 briefs that funds stolen in a phishing scheme were not owned or controlled by their policyholder, thus negating any duty for them to reimburse the stolen funds amounts that were voluntarily reimbursed by appellant RealPage Inc.
ATLANTA — American Property Casualty Insurance Association on July 21 filed an amicus curiae brief in support of Certain Underwriters at Lloyd’s London in a coronavirus coverage suit, arguing to the 11th Circuit U.S. Court of Appeals that commercial property insurance policies “do not—and were never intended to—provide coverage for economic losses untethered to physical loss or physical damage.”
ATLANTA — A federal judge in Florida erred in entering summary judgment in favor of a reinsurer in a breach of contract dispute, a self-insured intergovernmental risk management association argues in a July 6 appellant brief to the 11th Circuit Court of Appeals, seeking review of issues that it said “appear to be matters of first impression in this Circuit” — whether a reinsurance treaty must include the express phrase “follow the fortunes” or similar language to trigger the “follow the fortunes” doctrine, and when possessory interest accrues.
CHICAGO — Insurance brokers on July 15 moved for a federal court in Illinois to bifurcate discovery in a lawsuit alleging that they breached their duty of care because they knew or should have known that a multiple employer welfare arrangement (MEWA) was not in compliance with its structural requirements and was not financially sound.
SPRINGFIELD, Ill. — In July 16 filings in federal court in Illinois, parties in a suit filed by a railroad company seeking injunctive relief over reinsurer Illinois Mine Subsidence Insurance Fund’s (IMSIF) pursuit of reimbursement as subrogee for mine subsidence claims spar about whether the court has subject matter jurisdiction over claims asserted in the railroad company’s amended complaint.
NEW YORK — In a July 16 status letter, a Bermuda reinsurer notified the Second Circuit U.S. Court of Appeals that its appeal related to the confirmation of a $524 million arbitration award issued in favor of a Puerto Rico life insurer in a dispute over alleged improper asset divestments for a reinsurance trust should remain stayed because a temporary restraining order in the reinsurer’s bankruptcy proceeding remains in effect.
WILMINGTON, Del. — An insurer claims in a July 16 answer to a complaint that it did not breach its contract in handling its insureds’ claim seeking coverage for underlying benzene exposure claims.
FORT WAYNE, Ind. — The parties in a case in which an insurer is seeking more than $2 million in damages from a contractor after a 9,000-head swine building collapsed anticipate being ready for a settlement conference in January 2022 and, if that and mediation are not successful, a jury trial in November 2022, both sides stated in a July 14 report filed in a federal court in Indiana.
GULFPORT, Miss. — A federal judge in Mississippi should deny an insurer’s motion to compel arbitration of claims under the False Claims Act (FCA) and stay all proceedings in relators’ 15-year-old qui tam suit accusing the insurer of filing false flood insurance claims after Hurricane Katrina because the motion is frivolous and the insurer failed to address “obvious issues” in its motion, waiting instead to address them in a forthcoming reply brief, the relators argue in a May 27 opposition brief.
LAFAYETTE, Ind. — An automotive dealership and a reinsurer in a July 6 answer to a complaint deny allegations that the dealership breached a contract and is liable for paying back more than $1 million loaned to the dealership and guaranteed by the reinsurer.
TRENTON, N.J. — A reinsurer contends in a July 1 motion to seal its unredacted answer to a fourth amended complaint in a dispute over indemnification for asbestos bodily injury claims that sealing the unredacted portions of its answer is warranted because the unredacted version contains information about a confidential settlement agreement.
MONTGOMERY, Ala. — A reinsurer claims in a July 7 reply in support of its motion for leave to file a second amended answer and counterclaim in a breach of contract dispute over reinsurance billings that its motion should be granted because there was no undue delay in its request for leave to amend.
WASHINGTON, D.C. — U.S. Supreme Court review of the First Circuit U.S. Court of Appeals’ strict application of the uberrimae fidei doctrine in a marine insurance dispute stemming from alleged material omissions made by an insured in his application for insurance is necessary to cure a 4-2-1 split among federal circuit courts as to the proper application of the doctrine in such insurance disputes, the insured argues in a June 17 petition for writ of certiorari.
RICHMOND, Va. — An apartment building owner insured argues in a July 6 reply brief to the Fourth Circuit U.S. Court of Appeals that the collapse of its building’s superstructure was caused by the defective design and construction of the foundation and is a covered ensuing loss under an insurance policy.
AUSTIN, Texas — The Texas Supreme Court on July 2 reset oral argument from Sept. 14 to Sept. 30 to answer the Fifth Circuit U.S. Court of Appeals’ two certified questions in a coverage dispute over $1.2 million in stolen gold coins.