Mealey's Insurance Pleadings

  • November 20, 2019

    Insured Warns Texas Court About Insurer’s Eight-Corners Rule

    AUSTIN, Texas — An insurer ignored Texas law and now asks a court to correct that mistake and create a situation where insurers can abandon insureds based on the smallest suspicion of fraud, leaving the insureds in a nearly impossible position, respondents tell the Texas Supreme Court in an Oct. 28 brief (Loya Insurance Co. v. Osbalto Hurtado Avalos, et al., No. 18-0837, Texas Sup.).

  • November 20, 2019

    Target Sues Insurer For Coverage Of Banks’ Settlement In Data Breach Litigation

    MINNEAPOLIS — Citing a multimillion dollar coverage dispute of more than five years with its primary insurer over its settlement with a group of financial institutions (FIs) over a 2013 data breach, Target Corp. filed breach of contract claims against the insurer in Minnesota federal court on Nov. 15, seeking coverage declarations and damages (Target Corp. v. ACE American Insurance Co., et al., No. 0:19-cv-02916, D. Minn.).

  • November 20, 2019

    Insureds File Notice Of Appeal Of No Coverage Ruling Of Investors’ Suit

    ST. LOUIS — Insureds notified a federal court in Missouri on Nov. 15 that they will ask the Eighth Circuit U.S. Court of Appeals to review a magistrate judge’s dismissal of their claims for breach of contract and vexatious refusal to pay brought against a directors and officers liability insurer (Verto Medical Solutions, LLC, et al. v. Allied World Specialty Insurance Company, No. 19-01532, E.D. Mo., 2019 U.S. Dist. LEXIS 190779).

  • November 19, 2019

    Appellant Challenges Stay Of Suit Seeking Validity Of Insurer’s Subrogation Claim

    SAN FRANCISCO — An appellant recently asked a California appeals court to reverse a lower court’s ruling that stayed his declaratory judgment lawsuit disputing the validity of a professional liability insurer’s subrogation claim against his family trust, arguing that the stay “has no legal basis” (John Berman v. Minnesota Lawyers Mutual Insurance Company, No. A155394, Calif. App., 1st Dist., Div. 3).

  • November 19, 2019

    Insurer’s Receiver: Court Had No Jurisdiction To Decide Post-Estate Closure Motions

    KANSAS CITY, Mo. — The receiver for an insolvent insurer argues in an Oct. 15 brief to a Missouri appeals court that a trial judge was correct in denying motions filed after the insurer’s estate was closed because the judge had no jurisdiction to decide the matter (Arthur A. Blumeyer III v. Chlora Lindley-Myers, et al., No. WD82921, Mo. App., Western Dist.).

  • November 19, 2019

    Defendants Seek Reversal By 4th Circuit Over Report On Insurer’s Receiver’s RICO Claims

    RICHMOND, Va. — Defendants in Oct. 21 informal briefs request that the Fourth Circuit U.S. Court of Appeals reverse a recommendation to deny summary judgment in part on a special deputy receiver’s claims under the Racketeer Influenced and Corrupt Organization Act alleging a scheme to defraud a multiple-employer self-insured health plan with fraudulent letters of credit (LOCs) (Michael J. FitzGibbons, et al. v. De’Shaun Williams, et al., No. 19-2049, 4th Cir.).

  • November 19, 2019

    Bank, Finance Company Seek Dismissal Of Runoff Insurer’s Aiding, Abetting Claims

    NEW YORK — An investment bank and a financial services company argue in a Nov. 18 reply brief to a New York federal court that despite 18 months and the benefit of discovery, a runoff insurer fails to allege that two valuation reports prepared by them “substantially assisted” an alleged fraud or caused damage to the runoff insurer in the investment of $320 million in a failed Ponzi scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y.).

  • November 19, 2019

    Insured: 10th Circuit Should Reverse Coverage Denial In Construction Defect Case

    DENVER — A precast concrete company is asking the 10th Circuit U.S. Court of Appeals to reverse a district court’s order and find that its insurer wrongly denied the company’s claim related to an underlying complaint against the company in which the plaintiffs alleged construction defects on a building project (Rocky Mountain Prestress LLC v. Liberty Mutual Fire Insurance Company, No. 19-1169, 10th Cir.).

  • November 18, 2019

    Insurer Hit With Bad Faith Breach Of Contract Suit Over Failure To Settle

    SAN FRANCISCO — An errors and omissions liability insurer’s failure to settle a consumer class action lawsuit against its insured for violating provisions of the Telephone Consumer Protection Action (TCPA) amounts to a bad faith breach of contract, an assignee argues in a Nov. 5 complaint filed in California federal court (Ignacio Perez v. Indian Harbor Insurance Co., et al., No. 19-7288, N.D. Calif.).

  • November 15, 2019

    Insureds, Homeowners Answer Insurer’s Appeal Of Construction Defects Coverage Ruling

    PHILADELPHIA — Insured contractors and homeowners who are suing them in two underlying construction defects lawsuit filed two separate briefs in the Third Circuit U.S. Court of Appeals on Oct. 26, refuting a commercial general liability insurer’s appeal of a federal court's ruling that it has a duty to defend against the underlying claims (Nautilus Insurance Company v. 200 Christian Street Partners LLC, et al., Nos. 19-1507 and 19-1506, 3rd Cir.).

  • November 13, 2019

    Reinsurer, Insolvent Insurer Seek Waiver Of Compliance Regarding $5M In Funds

    AUSTIN, Texas — A reinsurer and an insolvent insurer, as debtors, ask a Texas federal bankruptcy court in a Nov. 12 brief to waive compliance requirements for $5 million in proceeds from a life insurance policy with the account where the proceeds are currently being held (In re:  Capson Corp., et al., Nos. 19-10890, 19-10893 & 19-10894, W.D. Texas Bkcy.).

  • November 13, 2019

    Insurer Says Insured Acted In Bad Faith By Preventing Removal Of Water Damage Suit

    MIAMI — More than a year after an insured filed suit in Florida state court seeking coverage for water damage, an insurer on Nov. 11 filed a notice of removal to Florida federal court, arguing that removal is warranted because the insured acted in bad faith to prevent the removal of the suit by delaying its responses to the insurer’s discovery requests (La Villarena Meat & Pork Inc. v. Aspen Specialty Insurance Co., No. 19-24651, S.D. Fla.).

  • November 12, 2019

    Reinsurers: Liquidator Bound By Arbitration Clauses In $150M Hurricane Loss Case

    SAN JUAN, Puerto Rico — Reinsurers on Nov. 8 joined an opposition brief arguing to a Puerto Rico federal court that an insurer’s liquidator can be bound to arbitration clauses in the insurer’s reinsurance agreements in a dispute over $150 million in losses from two hurricanes (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • November 08, 2019

    Error In Dismissal Of RICO Claim In Alleged Reinsurance Scheme, Investor Asserts

    DENVER — An investor argues in a Nov. 6 opening brief with the 10th Circuit U.S. Court of Appeals that he has a valid claim under Racketeer Influenced and Corrupt Organizations Act with regard to his dispute over an alleged reinsurance scheme and that the lower court erred in finding that the claim is reverse-preempted under the McCarran-Ferguson Act (Albert Ogles v. Guggenheim Investments, et al., No. 19-3154, 10th Cir.).

  • November 05, 2019

    Court Erred In Sustaining Demurrers In Insurance Dispute, Insurer Argues

    SAN JOSE, Calif. — A California court erred in sustaining demurrers without leave to amend in a construction defects insurance lawsuit because the discovery that an insurer’s obligations to a subcontractor arose from fraudulent activity should not result in the general contractor’s insurers avoiding their obligations to their insured “in their entirety,” punishing the subcontractor’s insurer for fulfilling its obligations to it insurer, the subcontractor’s insurer argues in a Sept. 4 appellant brief filed in a California appellate court (The Travelers Indemnity Company of Connecticut v. Navigators Specialty Insurance Co., et al., No. H046784, Calif. App., 6th Dist.).

  • November 05, 2019

    No Evidence Exists For New Trial On $6.25M Judgment Against Reinsurer, Insurer Says

    UTICA, N.Y. — An insurer argues in a Nov. 1 opposition brief to a New York federal court that a reinsurer failed to show a “complete absence of evidence” for a $6.25 million jury verdict in a dispute concerning two separate reinsurance certificates and coverage for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).

  • November 04, 2019

    Runoff Insurer:  Judge Should Not Rule On Post-Acquittal Relief

    NEW YORK — A runoff insurer argues in an Oct. 30 opposition brief that a New York federal judge should deny reconsideration of a decision to defer ruling on an investment company’s former executive’s post-acquittal relief for advancement of $708,784.77 in legal fees and costs until the U.S. government’s appeal of a judgment acquitting the former executive in a related criminal action has been decided (In re:  Platinum-Beechwood Litigation, No. 18-6658, David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y.).

  • November 04, 2019

    Certified Question In Insurance Dispute Is Too Broad, Florida High Court Told

    TALLAHASSEE, Fla. — A question certified to the Florida Supreme Court by a Florida state appellate panel in a malpractice insurance dispute is too broad and failed to properly recognize that, under state law, two “distinct types of tripartite relationship may be created,” a law firm argues in an Oct. 2 respondent’s brief filed in the state Supreme Court (Arch Insurance Company v. Kubicki Draper LLP, No. 19-673, Fla. Sup.).

  • November 04, 2019

    Appellants Say 7th Circuit Should Reverse Ruling In Contamination Coverage Suit

    CHICAGO — The Seventh Circuit U.S. Court of Appeal should reverse a district court’s ruling that an insurer owes no coverage for environmental contamination claims asserted by neighbors of an insured property, the neighbors assert in an Oct. 23 reply brief, contending that even if the insured failed to provide timely notice of the claims, the insurer was not prejudiced by the alleged late notice (Carmine Greene, et al. v. Kenneth Will, et al., No. 19-2260, 7th Cir.).

  • November 01, 2019

    Fraser’s Says Bankruptcy Stay Bars Insurer’s Claims Against Settling Insurers

    TACOMA, Wash. — A Washington federal court should uphold a bankruptcy court’s denial of an insurer’s bid to vacate a stipulated order barring its contribution claims against other insurers for asbestos claims against Chapter 11 debtor Fraser’s Boiler Service Inc., the debtor argues in an Oct. 28 response brief on appeal (National Union Fire Insurance Company of Pittsburgh, PA v. Fraser’s Boiler Service, Inc., et al., No. 3:19-cv-5648, W.D. Wash.).