ST. LOUIS — The Second Division Eastern District Missouri Court of Appeals on June 29 affirmed a trial court’s finding that no coverage is owed for the cleanup of methamphetamine contamination because the policy’s law and ordinance provision bars coverage for the cleanup of pollutants necessary to comply with an ordinance or law.
ALLENTOWN, Pa. — A federal judge in Pennsylvania on June 29 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,” granting an insurer’s motion for judgment on the pleadings in Boscov’s breach of contract and bad faith lawsuit.
SAN FRANCISCO — The First District California Court of Appeal on June 29 affirmed a trial court’s decision to set aside a default judgment against an insured and further found that the trial court did not err in concluding that the insurer acted properly in attempting to find a policy that would cover the asbestos claim filed against the insured.
TRENTON, N.J. — A New Jersey federal judge on June 23 denied a motion to strike filed by a reinsurer in a dispute over indemnification for asbestos bodily injury claims under facultative reinsurance agreements after determining that the reinsurer will not be prejudiced if information pertaining to the reinsurer’s successor remains in the insurer’s counterclaims.
KNOXVILLE, Tenn. — A Tennessee federal magistrate judge on June 24 granted a homeowners insurer’s motion for summary judgment after determining that the insurer did not breach its contract or act in bad faith in handling the insured’s water and mold damage claims.
HOUSTON — Insurers contend in a June 17 suit filed in Texas federal court that they have no duty to defend or indemnify a company that claims to be the successor of an insured against two environmental contamination claims pursuant to the policies’ absolute pollution exclusion and pollution exclusion.
NEW ORLEANS — A federal judge in Louisiana on June 16 granted an insolvent insurer’s motion to stay an asbestos liability dispute, finding that the factors in Landis v. N. Am. Co., weigh in favor of a six-month stay from the date of a Pennsylvania liquidation order.
BATON ROUGE, La. — In an effort “to ensure that this litigation proceeds in an efficient and orderly fashion,” a federal magistrate judge in Louisiana on June 16 issued a six-month administrative stay of an entire asbestos liability lawsuit from the date of a Pennsylvania state court's liquidation order involving an insurer defendant.
GREENSBORO, N.C. — A North Carolina federal magistrate judge on June 17 determined that a dissolved insured is required to produce only limited portions of a settlement agreement with one of its insurers for underlying asbestos bodily injury claims because the insurer seeking production of the settlement failed to show that the entire agreement is relevant.
BRIDGEPORT, Conn. — A federal judge in Connecticut on June 16 entered judgment in favor of an insurer on a breach of contract claim after determining that the insureds failed to show that they took reasonable care to heat the property, as required under the policy, which sustained water and mold damage after pipes in the home froze and burst over the winter.
NEW YORK — A New York justice on June 16 determined that an insurer named as the real party in interest following the dissolution of an insured company is responsible for funding 100% of asbestos bodily injury settlements negotiated by the insurer on behalf of the insured because as the real party in interest, the insurer was contractually bound to defend and indemnify the insured.
FAYETTEVILLE, Ark. — A breach of contract claim, but not a bad faith claim, can proceed against a homeowners insurer that denied coverage for a water damage claim based on the policy’s construction defects exclusion because the insureds sufficiently stated facts in support of the breach of contract claim only, an Arkansas federal judge said June 14 in partially granting the insurer’s motion for summary judgment.
CHICAGO — A federal judge in Illinois on June 15 denied an insurer’s motion for certification of interlocutory appeal of his refusal to dismiss business interruption coverage and bad faith claims brought against it in three bellwether lawsuits arising from the governmental shutdown of hospitality businesses in the wake of the coronavirus pandemic.
PHILADELPHIA — The court-appointed future claimants’ representative (FCR) and his law firm in the Chapter 11 case of Imerys Talc America Inc. are disqualified from holding their positions under a Third Circuit U.S. Court of Appeals rule of conduct that requires disqualification of bankruptcy professionals that have concurrent conflicts of interest, insurers argue in a June 15 reply brief.
ALBANY, N.Y. — A final pretrial conference in a suit between an insurer and a reinsurer over whether defense costs paid on behalf of an insured for asbestos liabilities are covered under the reinsurer’s policies was held June 9 before a New York federal judge.
TRENTON, N.J. — A New Jersey federal court on June 9 scheduled a July 6 hearing on a motion by reinsurers to file an unredacted fourth amended complaint under permanent seal in a dispute regarding the insurers’ handling of payments for underlying asbestos claims and indemnification sought by the insurers under facultative reinsurance agreements.
HOUSTON — A Texas federal magistrate judge on June 10 granted a motion to compel appraisal in a water damage coverage dispute after determining that a question regarding the cause of the water damage does not allow the homeowners insurer to avoid appraisal.
BALTIMORE — An insurer is responsible for paying no more than 32% of an underlying judgment in a lead paint exposure suit, a Maryland federal judge said May 26 in granting the insurer’s motion for summary judgment on the issue of allocation of the underlying judgment.
CHICAGO — A property insurer’s breach of contract counterclaim can proceed as the insurer offered sufficient facts in support of its contention that the insureds submitted a false claim related to asbestos remediation in a historic building that suffered significant water damage, an Illinois federal judge said June 8.
SHREVEPORT, La. — A Louisiana federal judge on June 7 dismissed an insurer’s suit seeking a declaration that it has no duty to indemnify its insured for pollution cleanup costs after determining that complete diversity does not exist as the insurer and some of the publicly traded members of one of the defendants are residents of the same state.