Mealey's Insurance
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June 01, 2022
Trial Court Properly Stayed Insurer’s Carbon Monoxide Poisoning Coverage Suit
DETROIT — A trial court did not abuse its discretion in staying an insurer’s declaratory judgment suit until the underlying tort suit arising out of carbon monoxide poisoning is decided because the outcome of the underlying suit could impact the insurer’s declaratory judgment suit, the majority of the Michigan Court of Appeals said May 26.
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June 01, 2022
Judge Tosses Coverage Suit Over Bacterial Infections After Settlement Reached
CHARLESTON, S.C. — A federal judge in South Carolina on May 23 dismissed an insurer’s declaratory judgment lawsuit challenging coverage for underlying allegations that its insured is liable for damages that stem from post-operative bacterial infections allegedly acquired at a hospital, noting that the parties have reached a settlement.
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May 27, 2022
Pollution Exclusion Bars Coverage For Carbon Monoxide Poisoning Death
ANCHORAGE, Alaska — No coverage is owed for the carbon monoxide poisoning death of a 17-year-old because a pollution exclusion in the homeowners policy at issue clearly bars coverage, an Alaska federal judge said May 25.
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May 26, 2022
Pollution Exclusion Bars Coverage For Sediment Runoff, Federal Judge Says
COLUMBUS, Ga. — No coverage is owed for sediment runoff into a neighboring pond created by an insured’s construction project because the policy’s pollution exclusion bars coverage as sediment runoff qualifies as pollution according to the policy’s definition of pollution, a Georgia federal judge said May 25 in granting an insurer’s motion for summary judgment.
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May 25, 2022
Debtor ON Marine Says Settlements Reached Over Insurers’ Trust Payments
PITTSBURGH — Chapter 11 debtor ON Marine Services Co. LLC and asbestos claimants have reached an agreement in principle on the amount of money insurers should pay to fund a post-reorganization asbestos trust established by the debtor, according to minutes from a May 5 conference on the status of bankruptcy court-approved mediation.
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May 25, 2022
Panel: No Coverage For ‘Purely Economic Damages’ Alleged By Restaurant Chain
ATLANTA — The 11th Circuit U.S. Court of Appeals on May 24 affirmed a lower federal court’s ruling that an insured restaurant chain’s claim for loss of business income caused by shutdown orders issued by state governors in the wake of the COVID-19 pandemic is not covered, finding that there is no coverage available “for the type of purely economic damages” the insured sought under the policy.
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May 25, 2022
Federal Judge Says Review Of Order Is Moot In Asbestos Liability Suit
NEW ORLEANS — Review of a magistrate judge’s order allowing a purported asbestos product supplier to file a supplemental answer in an asbestos coverage suit is moot because the supplier already responded to a new allegation related to Louisiana Insurance Guaranty Association’s (LIGA) obligations regarding the insolvent insurer, a Louisiana federal judge said May 11 in denying the motion for review.
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May 25, 2022
Majority: Discovery Sanction In Explosion Coverage Suit Was ‘Erroneous,’ ‘Abusive’
SHREVEPORT, La. — A majority of a Louisiana appeals court on May 18 held that a lower court erred in imposing a discovery sanction that a jury would be instructed that insurers had knowledge of their insured’s operations before issuing their insurance policies, reversing the lower court’s grant of summary judgment in favor of Louisiana’s military department and state police in a lawsuit arising from an explosion at Camp Minden.
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May 24, 2022
Parties In Receiver’s Suit Against Captive Manager Reach Settlement Agreement
NEW HAVEN, Conn. — The receiver of an insolvent insurer and a professional liability insurer of a captive manager on May 4 issued a joint status report advising a Connecticut federal court that they had settled a coverage lawsuit filed by the receiver, subject to the approval of the Delaware Chancery Court because the insolvent insurer is in liquidation proceedings there and subject to the Chancery Court’s “oversight.”
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May 24, 2022
Insured Says Insurer Cannot Recoup Defense Costs For Asbestos Claims
MINNEAPOLIS — An insurer is not permitted to recoup defense costs it paid on behalf of an insured for underlying asbestos bodily injury claims pursuant to a reservation of rights because the policies at issue did not include a right to recoup the costs paid, the insured argues in a May 16 motion to dismiss filed in Minnesota federal court.
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May 24, 2022
Federal Judge Grants 2 Joint Motions To Dismiss Asbestos Liability Suit
NEW ORLEANS — A Louisiana federal judge on May 17 issued two orders granting separate joint motions to dismiss with prejudice against two defendants in an asbestos liability coverage suit alleging that a man contracted malignant mesothelioma and died due to his inhalation of asbestos fibers.
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May 23, 2022
No Coverage Owed For Business Losses Caused By COVID-19
LANSING, Mich. — No coverage is owed to an insured spa and salon for business losses sustained as a result of shutdown orders issued in the wake of the COVID-19 pandemic because the insured did not sustain a direct physical loss to its property and because the policy at issue includes a contamination exclusion that precludes coverage, the Michigan Appeals Court said May 19.
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May 20, 2022
Tort Claims Against Insurer In Asbestos Suit Are Preempted, Judge Says
NEW ORLEANS — Tort claims alleged against an employer’s insurer in an asbestos coverage dispute must be dismissed because the claims are preempted by the Longshore and Harbor Workers’ Compensation Act (LHWCA), a federal statute that provides medical and disability benefits to covered maritime workers, a Louisiana federal judge said May 19 in granting the insurer’s motion for summary judgment.
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May 19, 2022
No Coverage Owed For Silica Dust Contamination, 8th Circuit Panel Affirms
MINNEAPOLIS — The Eighth Circuit U.S. Court of Appeals on May 18 affirmed a district court’s ruling that no coverage is owed for dust contamination caused by the negligent installation of a garage door because the dust contained silica and the policy at issue clearly precludes coverage for silica and silica-related dust.
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May 18, 2022
Louisiana Panel: California Is More Appropriate Forum For Coronavirus Coverage Suit
NEW ORLEANS — A Louisiana panel on May 4 held that private and public interest factors weigh heavily in favor of California as a more appropriate and convenient forum for an insured’s coronavirus coverage dispute, finding that a lower court abused its discretion in denying the insurer’s motion to dismiss based on forum non conveniens.
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May 17, 2022
California High Court Agrees To Review Policy Exhaustion Issue In Asbestos Suit
SAN FRANCISCO — The California Supreme Court on April 13 granted an primary insurer’s petition for review in a long-standing asbestos insurance coverage dispute, agreeing to review the question of whether horizontal or vertical exhaustion should be applied when allocating the insurer’s claim for equitable contribution.
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May 17, 2022
Insurer Waives Right To Respond To Petition In COVID, Virus Exclusion Suit
WASHINGTON, D.C. — An insurer on May 11 waived its right to respond to an insured’s petition for writ of certiorari seeking review of the 10th Circuit U.S. Court of Appeals ruling that a commercial lines policy’s virus exclusion clearly precludes coverage for the insured’s business losses sustained as a result of state government-ordered business closures to prevent the spread of the coronavirus.
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May 17, 2022
Jury Says Coverage Owed For Contaminated Sites; Judge Issues Post-Trial Ruling
NEW YORK — Following an April 26 jury verdict that coverage is owed for three of an insured’s former manufactured-gas plants, a New York County Supreme Court justice on May 11 issued a post-trial decision, offering detailed explanations of a number of rulings made during the trial about the content of the jury charge and verdict sheet.
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May 16, 2022
4th Circuit Denies Insurer’s Motion For Rehearing In Collapse Suit
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on May 16 denied an insurer’s petition for rehearing en banc, refusing to reconsider a panel majority’s finding that the insurer violated North Carolina’s Unfair and Deceptive Trade Practices Act (UDTPA) when it denied coverage for a collapsed breezeway and that the insured should be awarded treble damages for the denial of coverage.
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May 16, 2022
No Coverage Owed For Water Damage Caused By Broken Drainpipes
MIAMI — A homeowners insurer does not owe coverage for water damage sustained in an insured’s home as a result of broken drainpipes because the policy clearly excludes coverage for damages caused by wear and tear or deterioration, a Florida federal judge said May 13.