Mealey's Insurance Pleadings

  • June 24, 2021

    Parties Stipulate To Judgment For 1 Insolvent Insurer In ACA Risk-Corridor Funds Suit

    WASHINGTON, D.C. — The U.S. government and a class of insolvent insurers on June 17 filed a stipulation to enter a $45,417,643.02 judgment for a subclass that consists of one insolvent insurer in the insurers’ lawsuit seeking declaratory judgment that the government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.

  • June 22, 2021

    Parties File Joint Status Report In Federal Suit Over Insolvent Health Plan

    CHICAGO — Parties on June 17 filed a joint initial status report updating a federal court in Illinois on their discovery plan and other issues in a lawsuit alleging that insurance brokers 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.

  • June 22, 2021

    Firm Says It Held Funds Stolen In Phishing Scheme, Is Due Insurance Coverage

    NEW ORLEANS — A company that lost more than $6 million in a phishing attack tells the Fifth Circuit U.S. Court of Appeals in a May 24 brief that even though the funds were pilfered from a third-party payment processor’s account, it controlled and “held” the money and, thus, was entitled to reimbursement under its commercial crime insurance policies.

  • June 18, 2021

    Contractor Counterclaims For Breach Of Contract, Bad Faith Against Insurer

    KANSAS CITY, Kan. — Less than one week after a federal judge in Kansas denied an insurer’s motion for summary judgment, a contractor on June 15 filed breach of contract and vexatious refusal to pay counterclaims in the insurer’s lawsuit disputing coverage for a masonry subcontractor that defaulted in the contractor’s underlying state court action.

  • June 16, 2021

    Insurer: No Coverage For Employee’s Suit Alleging Wing Stop Owners Violated BIPA

    CHICAGO — A businessowners liability insurer on June 1 filed suit in a federal court in Illinois seeking a declaration that it does not owe coverage for an underlying lawsuit alleging that the owners and operators of Wing Stop violated the Biometric Information Privacy Act by capturing, collecting, storing and/or disseminating its employees’ biometric information without their valid consent.

  • June 15, 2021

    Parties Dismiss Coverage Suit Arising From Hulk Hogan’s Conspiracy Claims

    ATLANTA — Indicating that they have negotiated a settlement, a multimedia liability insurer and a radio station insured on June 14 filed a stipulation of dismissal with prejudice of the insured’s breach of contract and bad faith lawsuit seeking coverage for Hulk Hogan’s 2016 allegations that the insured and its employees conspired to disseminate videotaped recordings of sexual encounters between Hogan and the wife of a Tampa, Fla., radio personality.

  • June 11, 2021

    Reinsurer Says Arbitrator Must Decide If Time To Submit Claim Has Expired

    DETROIT — A reinsurer’s motion to dismiss a health and life insurer’s complaint seeking indemnity for more than $950,000 under a medical excess reinsurance agreement must be granted because an arbitrator must decide whether the time to submit a claim to arbitration has expired, the reinsurer says in its June 10 reply in support of its motion filed in Michigan federal court.

  • June 11, 2021

    Directors, Officers Insurer Dismisses Coverage Dispute Over Shareholder Claims

    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.”

  • June 10, 2021

    Invalid Payments Exclusion Bars Coverage For $1.2M Gold Coin Loss, Insurer Says

    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.

  • June 08, 2021

    Insured Rebuffs Insurer’s Plea To Amend Order Refusing To Dismiss COVID-19 Suit

    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.

  • June 07, 2021

    Claimant Says LTD Benefits Owed For Inability To Wear Face Mask While Working

    SAN ANTONIO — A disability insurer should be ordered to pay a claimant more than $70,000 in past long-term disability (LTD) benefits, in addition to future LTD benefits, because the claimant’s respiratory illness prevented him from wearing a face mask, required by his employer in response to the COVID-19 pandemic, the claimant says in a May 26 complaint filed in Texas federal court.

  • June 07, 2021

    Insolvent Insurer, Insured Dismissed From Dispute Over Truck Crash Judgment

    LOUISVILLE, Ky. — A plaintiff on June 3 voluntarily dismissed an insolvent insurer and its insured from a dispute arising from a $750,000 truck crash judgment and said claims against the remaining defendants will be dismissed “in the very near future.”

  • June 07, 2021

    Franchise Owners Appeal Dismissal Of $41M Coronavirus Coverage Dispute

    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.

  • June 07, 2021

    Insurers Say No Coverage Owed For Suit Arising Out Of Listeria Contamination

    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.

  • June 07, 2021

    Plethora Of Bar, Restaurant Owners, Operators Sue Insurer For Coronavirus Losses

    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.

  • June 03, 2021

    Insurer Undervalued Hurricane Damage Losses, Insureds Allege

    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.

  • June 03, 2021

    Plaintiffs Say Securities Class Action Complaint Shows False Statements Made

    CAMDEN, N.J. — A motion to dismiss filed by a reinsurer and former officers in a securities class action pending in New Jersey federal court must be denied because the complaint adequately shows that the defendants made false and misleading statements when they failed to disclose adverse historical loss results, the plaintiffs contend in a May 24 supplemental brief in opposition to the motion to dismiss.

  • June 02, 2021

    Trustees Say Jurisdiction Exists Over Bermuda Reinsurer In ERISA Dispute

    WASHINGTON, D.C. — A Bermuda reinsurance and insurance company’s “continuous and systematic contacts” with the United States allow the U.S. District Court for the District of Columbia to exercise personal jurisdiction over the reinsurer in an Employee Retirement Income Security Act lawsuit seeking damages for the company’s alleged failure to make $934 million in withdrawal liability payments to a pension plan, the pension plan trustees argue in a May 26 opposition to the reinsurer’s renewed motion to dismiss.

  • June 02, 2021

    Arbitration Provision In Reinsurance Agreement Is Not Enforceable, Insurer Says

    DETROIT — A health and life insurer seeking indemnity for more than $950,000 under a medical excess reinsurance agreement contends in a May 27 opposition to a reinsurer’s motion to dismiss and motion to stay discovery that the motion to dismiss should be denied as the reinsurance agreement’s arbitration provision cannot be enforced and that the motion to stay discovery is futile as the reinsurer cannot succeed on its motion to dismiss.

  • June 01, 2021

    Claims Administrator: Builders’ Bad Faith Action Should Stay In Federal Court

    LOS ANGELES — A claims administration company and an adjuster accused by four homebuilders of failing to repay more than $10 million in self-insurance retention (SIR) payments made as part of homebuilder protection (HBP) policies say in a brief filed May 24 in federal court in California that the suit should not be remanded because the builders’ claims against the adjuster are subject to Illinois law, which requires them to show that any alleged misrepresentations he made about the SIR provision in the policies were material.

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