Mealey's Insurance Pleadings

  • May 11, 2021

    Amici: Policies Never Intended To Cover Economic Losses Untethered To Physical Damage

    CHICAGO — Amici curiae in support of an insurer on May 5 asked the Seventh Circuit U.S. Court of Appeals to affirm a lower federal court’s dismissal of a restaurant insured’s breach of contract lawsuit seeking coverage for its alleged $977,891 in lost business income arising from its government-ordered shutdown in response to the coronavirus pandemic, arguing that “[i]mposing a new and retroactive extra-contractual risk on insurers would threaten insurer solvency and harm Illinois’ insurance marketplace."

  • May 11, 2021

    Los Angeles Restaurant Owner Seeks Reversal Of No Coverage Ruling In COVID-19 Suit

    SAN FRANCISCO — The owner of two Los Angeles restaurants recently asked the Ninth Circuit U.S. Court of Appeals to reverse a lower federal court’s dismissal of its lawsuit seeking coverage for its business income loss caused by the governmental shutdown orders in response to the coronavirus pandemic, contending that the lower court dismissed its complaint “based on a range of hypothetical policy consequences” that render its interpretation of the policy “unreasonable — even if conceivable.”

  • May 11, 2021

    Gallery: Court Erred In Accepting Insurer’s ‘Self- Serving’ Policy Interpretation

    NEW YORK — A Manhattan-based art gallery tells the Second Circuit U.S. Court of Appeals in an April 2 brief that a lower federal court committed reversible error in its interpretation of an all-risk business owners insurance policy because it permitted the insurer to escape liability even though a reasonable interpretation of the policy requires the insurer to provide coverage for its losses arising from the forced cessation of its operations in response to the coronavirus pandemic.

  • May 06, 2021

    Prior Acts Exclusion Bars Coverage, Directors & Officers Insurer Tells 11th Circuit

    ATLANTA — Arguing that an insurer’s duty to defend “is not limitless,” a directors and officers liability insurer on April 12 asked the 11th Circuit U.S. Court of Appeals to reverse a lower federal court’s ruling that adopted a magistrate’s recommendation to grant nursing home owner insureds’ motion for summary judgment and deny its cross-motion for summary judgment in a coverage dispute arising from claims that the insureds breached fiduciary and statutory duties and caused physical and monetary injuries to one of their residents.

  • May 04, 2021

    Homebuilders Seek Remand Of Bad Faith Suit Over Insurers’ Failure To Repay

    LOS ANGELES — KB Home Nevada Inc. and three of its affiliates on May 3 filed a motion in federal court in California saying that a lawsuit accusing two insurance companies and a man who claimed to be a claims adjuster and third-party administrator (TPA) of failing to repay more than $10 million in self-insurance retention (SIR) payments made as part of homebuilder protection (HBP) policies should be remanded, arguing that the man is not fraudulently joined because the complaint sufficiently pleads claims for negligent misrepresentation and intentional misrepresentation against him.

  • May 03, 2021

    Philadelphia Eagles Move To Remand COVID-19 Coverage Suit Against Insurer

    PHILADELPHIA — The owner and operator of the Philadelphia Eagles football organization on April 30 moved for the U.S. District Court for the Eastern District of Pennsylvania to remand its lawsuit seeking a declaration as to coverage for its alleged losses arising from the coronavirus pandemic eight days after its property insurer moved to dismiss the lawsuit, arguing that remand is warranted so the federal court “can avoid interference in the delicate state regulatory issues involved and give appropriate respect to the important state interests implicated by this action."

  • May 03, 2021

    Insurer Files Supplemental Brief In Coverage Dispute Over Backdating Litigation

    PASADENA, Calif. — An insurer on April 28 filed a supplemental brief in the Ninth Circuit U.S. Court of Appeals in a dispute over whether it was obligated to fund a settlement reached in underlying backdating litigation after a majority of the Arizona Supreme Court, in answering a certified question, held that the Ninth Circuit should assess the objective reasonableness of the insurer’s decision to withhold consent to the insured’s settlement with shareholders from the perspective of the insurer.

  • April 29, 2021

    State Farm Moves To Compel Arbitration, Stay Relators’ False Claims Act Suit

    GULFPORT, Miss. — State Farm Fire and Casualty Co. on April 13 moved 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.

  • April 27, 2021

    Insurers Jointly Move For Summary Judgment In Dispute With Private Equity Firms

    WILMINGTON, Del. — Insureds on April 14 jointly moved for summary judgment on common issues in their coverage dispute with private equity firm insureds following a Delaware judge’s ruling that the insureds’ $120 million settlement with the bankruptcy estate of a retail fashion holding company that they acquired is insurable under state law.

  • April 26, 2021

    Dentist: Insurance Industry Admitted Nearly Identical Policies Covered Viruses

    CHICAGO — A dental provider insured on April 6 asked the Seventh Circuit U.S. Court of Appeals to reverse a lower federal court’s ruling that it failed to allege a “direct physical loss” to trigger coverage for its financial losses as a result of the novel coronavirus closure orders, arguing that, in response to the SARS virus, “the greater insurance industry has admitted, over a decade ago, that nearly identical policies did cover viruses.”

  • April 23, 2021

    Insurer Asks Federal Court To Dismiss Philadelphia Eagles’ COVID-19 Coverage Suit

    PHILADELPHIA — A property insurer on April 22 asked the U.S. District Court for the Eastern District of Pennsylvania to dismiss a lawsuit brought by the owner and operator of the Philadelphia Eagles football organization seeking a declaration as to coverage for its alleged losses arising from the coronavirus pandemic, contending that many recent decisions in the District Court and across the country have rejected similar complaints on several grounds that are applicable here.

  • April 20, 2021

    Insurer: Employer’s Liability Exclusion Bars Coverage For Suit Against Subcontractor

    RICHMOND, Va. — A businessowners insurer recently asked the Fourth Circuit U.S. Court of Appeals to reverse a lower federal court’s finding that it has a duty to defend and indemnify its roofing subcontractor insured against an underlying lawsuit arising from a fatal construction site accident, arguing that the policy’s employer’s liability exclusion bars coverage.

  • April 16, 2021

    Insolvent Insurers, U.S. Jointly Move To Divide Subclass, Request $23M Judgment

    WASHINGTON, D.C. — A dispute subclass of insolvent insurers and the U.S. government on April 13 jointly moved to divide a dispute subclass into two subclasses and requested that the U.S. Court of Federal Claims enter a $23,301,140.37 judgment in favor of the newly created subclass 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.

  • April 15, 2021

    FDIC Cannot Recover $3M Statutory Interest, D&O Insurer Argues To 11th Circuit

    ATLANTA — A directors and officers liability insurer on March 19 argued to the 11th Circuit U.S. Court of Appeals that a lower federal court properly determined that the Federal Deposit Insurance Corp. cannot recover $3 million in enhanced statutory prejudgment interest under Official Code of Georgia Annotated Section 7-4-15, contending that the FDIC has offered no grounds warranting reversal.

  • April 13, 2021

    Liquidator Amends Complaint In Coverage Suit Arising From $21M Wrongful Acts Claim

    SIOUX FALLS, S.D. — The liquidator of ReliaMax Surety Co. (RSC) on March 23 again amended his complaint seeking a declaratory judgment that coverage exists under a claims-made excess insurance policy above a directors and officers (D&O) policy with regard to a $21 million wrongful acts claim, seeking a $10 million judgment against the insurer minus credits provided for by the underlying judgment plus compensatory and punitive damages to be determined at trial.

  • April 13, 2021

    City Of Newark, Police Officers Reinforce Dismissal Motions In Personal Injury Suit

    NEWARK, N.J. —The city of Newark, its public safety director and police officers on March 27 reinforced their motion to dismiss a personal injury lawsuit in which New Jersey Property-Liability Insurance Guaranty Association (NPLIGA) filed a cross-claim seeking contribution from the other defendants for damages caused by a police car chase that led to a collision.

  • April 09, 2021

    Home Depot Seeks $50M From Insurers For Losses Arising From 2014 Data Breach

    CINCINNATI — The Home Depot Inc. and Home Depot U.S.A. Inc. on April 8 sued their primary and excess commercial general liability insurers for breach of contract and bad faith in a federal court in Ohio, seeking damages up to the full collective policy limits of $50 million for its losses stemming from a 2014 data breach.

  • April 07, 2021

    Outback Steakhouse’s Franchisee Appeals No Coverage Ruling In Coronavirus Suit

    SAN FRANCISCO — A franchisee of Outback Steakhouse restaurants in Arizona, Colorado, Nevada, New Mexico and California and its parent and affiliated companies on April 1 filed a notice of appeal in the Ninth Circuit U.S. Court of Appeals challenging a lower court’s finding that they have failed to plausibly allege “direct physical loss of or damage to” their property to trigger coverage under the policy in a coronavirus coverage suit.

  • April 05, 2021

    Insured’s Efforts To Minimize Conflicts Fail, Insurer Argues To U.S. High Court

    WASHINGTON, D.C. — A life insurer on March 31 argued to the U.S. Supreme Court that an Eighth Circuit U.S. Court of Appeals’ opinion deepened circuit conflicts as to whether class certification is proper when some members benefit from the same conduct that purportedly harms others and whether courts can certify a “fail-safe” class that defines membership by referring to success on the merits, contending that an insured’s “efforts to minimize both conflicts fail.”

  • April 05, 2021

    Minor League Baseball Teams Reply To Opposition Of Appeal In COVID-19 Coverage Suit

    SAN FRANCISCO — Small businesses that own and operate Minor League Baseball (MiLB) teams on March 31 reinforced their argument asking the Ninth Circuit U.S. Court of Appeals to reverse a lower federal court’s dismissal of their breach of contract and declaratory judgment lawsuit seeking business interruption coverage for their losses arising from the coronavirus pandemic.