Mealey's Insurance

  • March 09, 2022

    After Trial Cancellation, Stay Remains On Last Defendant In Reinsurance Billings Row

    BOSTON — Following cancellation of a Massachusetts federal jury trial in a reinsurance billings dispute over the allocation of a $120 million environmental claims settlement, the parties on March 4 filed a joint stipulation of voluntarily dismissal as to one of the two remaining defendants and said a stay remains in effect as to the other.

  • March 08, 2022

    4th Circuit Affirms Dismissal Of Creative Events Company’s COVID-19 Coverage Suit

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on March 7 held that a creative events company insured did not suffer a loss that was caused by, or related to, material destruction or material harm to its covered property, affirming a lower federal court’s dismissal of the insured’s suit seeking coverage for business income and business interruption losses caused by governmental shutdown orders for the COVID-19 pandemic.

  • March 08, 2022

    No Coverage Owed For Carcinogenic Gas Emissions, Illinois Appeals Panel Says

    ELGIN, Ill. — A trial court did not err in finding that no coverage is owed under a claims-made premises pollution liability insurance policy for underlying suits alleging injuries as a result of carcinogenic emissions from an insured’s facility because the emissions allegedly began before the retroactive date of the policy, the Second District Illinois Appellate Court said March 4.

  • March 07, 2022

    Insured Says Not All Water, Mold Damages Are Excluded Under Builders Risk Policy

    LOS ANGELES — The denial of coverage for mold and water damages sustained in numerous buildings of an insured’s construction project constitutes a breach of contract and breach of the implied duty of good faith and fair dealing because some of the damages for which the insured seeks coverage are covered under the builders risk insurance policy, an insured contends in a Feb. 23 complaint filed in California federal court.

  • March 07, 2022

    Panel: Eye-Care Provider Fails To Allege Direct Physical Loss, Damage To Property

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on March 2 held that an eye-care provider insured failed to allege any direct physical loss of property or physical damage to its  property to trigger coverage for its more than $2 million in expected losses due to its decision to shut down operations in response to the coronavirus pandemic, affirming a lower federal court’s grant of the insurer’s motion for judgment on the pleadings.

  • March 04, 2022

    Insurer Did Not Act In Bad Faith; Question Of Fact Exists On Cause Of Water Damage

    CHARLESTON, S.C. — An insured’s counterclaim for bad faith in a dispute over coverage for water damages in the insured’s home cannot proceed because the insurer did not act in bad faith when it denied the insured’s claim for damages as a question of fact exists as to whether the damages at issue were pre-existing damages, a South Carolina federal judge said March 3 in partially granting the homeowners insurer’s motion for summary judgment.

  • March 04, 2022

    6th Circuit: Insured Was Not ‘Tangibly Deprived’ Of Its Kentucky Brewpub, Taproom

    CINCINNATI — Noting that it sympathizes with a Kentucky brewpub and taproom owner for the hardships it has faced in the wake of the coronavirus pandemic, the Sixth Circuit U.S. Court of Appeals said March 3 that it is bound by its recent holding in Estes v. Cincinnati Insurance Co.  that “‘physical loss’ means ‘that a property owner has been tangibly deprived of the property or that the property has been tangibly destroyed.’”

  • March 04, 2022

    Judge Grants Insurer’s Motion To Dismiss Dentist’s Suit Arising From Coronavirus

    NEW HAVEN, Conn. — A federal judge in Connecticut on March 1 granted an insurer’s motion to dismiss a dental insured’s amended complaint seeking coverage for its losses arising from the coronavirus and subsequent shutdown orders, joining “the growing number” of courts that have determined “losses caused by the mere presence of COVID-19 are not ‘direct physical loss or damage’ to the insureds’ properties.

  • March 04, 2022

    Lead Contamination Exclusion Precludes Coverage For Underlying Suit, Panel Says

    TRENTON, N.J. — A trial court correctly found that a policy’s lead contamination exclusion precludes coverage for an underlying personal injury suit arising out of lead ingestion at an insured rental property and correctly found that a prior ruling in favor of the insured in a similar personal injury suit arising out of lead ingestion did not collaterally estop the insurer from seeking a ruling that no coverage exists, the New Jersey Superior Court Appellate Division said March 1.

  • March 04, 2022

    No Coverage Owed For Underlying Construction Defects Suit, Judge Says

    CHICAGO — No coverage is owed for an insured’s faulty workmanship because the damages caused by the insured’s defective work do not constitute property damages as required by the policy and because the mold damages discovered in the home are excluded by the policy’s fungi or bacteria exclusion, an Illinois federal judge said March 2 in granting the insurer’s motion for summary judgment.

  • March 02, 2022

    2nd Circuit: Insured’s Appeal Foreclosed By Recent Coronavirus Coverage Ruling

    NEW YORK — The Second Circuit U.S. Court of Appeals on March 1 affirmed a lower federal court’s dismissal of an insured’s breach of contract and declaratory relief lawsuit seeking coverage for its business income losses arising from the coronavirus pandemic, finding that the insured’s arguments on appeal are foreclosed by its recent decision in 10012 Holdings, Inc. v. Sentinel Insurance Co.

  • March 01, 2022

    Judge Strikes Insurer’s Designation Of Third Parties In Water, Mold Damage Suit

    DALLAS — A Texas federal judge on Feb. 18 granted an insured’s motion to strike an insurer’s designation of third parties allegedly responsible for an insured’s damages sustained in a mold and water damage dispute after determining that the insurer failed to provide evidence supporting its claim that the third parties’ actions caused damages incurred by the insured after an expert changed its position regarding the cause of the water and mold damages.

  • March 01, 2022

    Insurer Owes Duty To Defend Insured Against Underlying Exposure Suit

    CHARLESTON, S.C. — A South Carolina federal judge on Feb. 22 granted an insured’s motion for partial summary judgment after determining that an insurer owes a duty to defend the insured against an underlying chemical exposure suit because there is a possibility that the underlying claimant, who was exposed to wood treating chemicals that caused cancer, was exposed to the chemicals during the insurer’s policy period.

  • February 25, 2022

    Panel Rejects Consolidated Appeals In Michigan Businesses’ Coronavirus Coverage Suits

    CINCINNATI —The Sixth Circuit U.S. Court of Appeals on Feb. 23 affirmed a lower federal court’s dismissal of three coronavirus coverage lawsuits brought by Michigan businesses, finding that the insureds have failed to adequately assert that their properties was harmed.

  • February 24, 2022

    Insureds Owed Additional Coverage For Water Damages, Panel Says

    DAYTONA BEACH, Fla. — A trial court did not err in entering judgment for insureds seeking additional coverage for tear-out costs related to their claim for water damages under their homeowners policy because the policy’s limited water damage endorsement does not preclude coverage for tear-out costs, the Fifth District Florida Court of Appeal said Feb. 18.

  • February 24, 2022

    Insurer: Plaintiff Fails To Establish Asbestos Exposure Allegations Against Insured

    NEW ORLEANS — Calling an asbestos liability lawsuit “a case of pure speculation, mere conjecture and unsupported assumption,” an insurer on Feb. 11 argues in a motion for summary judgment that there is no genuine issue of material fact as to the lack of evidence directly or circumstantially establishing that its insured exposed the plaintiff to asbestos.

  • February 24, 2022

    Insurer Files Objection To Stay Bid Of W.R. Grace Insurer Liability Plaintiffs

    WILMINGTON, Del. — A defendant insurer of former Chapter 11 debtor W.R. Grace & Co. filed a “protective objection” Feb. 18 in a Delaware federal bankruptcy court adversary action to make sure plaintiff asbestos claimants are not looking to toll the statute of limitations in their bid to temporarily enjoin proceedings against the insurer in Montana state court pending a bankruptcy court ruling on whether their claims are barred by an injunction in W.R. Grace’s plan of reorganization.

  • February 23, 2022

    Insurer Urges 2nd Circuit To Uphold ‘All Sums’ Ruling Against English Reinsurer

    NEW YORK — Asserting that an English reinsurer asks the Second Circuit U.S. Court of Appeals “not to apply English law, but radically to extend it,” an insurer argues in a Feb. 18 appellee brief that a New York federal court’s grant of summary judgment over allocation of an environmental claims settlement should be affirmed.

  • February 22, 2022

    Pollution Exclusion Bars Coverage For Discharge Of Contaminated Wastewater

    EAST ST. LOUIS, Ill. — An insurer has no duty to defend or indemnify an insured accused of discharging contaminated wastewater onto a neighboring property because the policy’s pollution exclusion clearly bars coverage, an Illinois federal judge said Feb. 18 in granting the insurer’s motion for default judgment.

  • February 22, 2022

    Insured’s Discovery Motions In Environmental Contamination Dispute Denied

    LAS CRUCES, N.M. — A New Mexico federal judge on Feb. 17 denied a number of motions related to an insured’s discovery requests in an environmental contamination coverage dispute after determining that the insured failed to show that the insurer’s responses to requests were untimely and that the insured failed to follow the requirements set forth by the Federal Rules of Civil procedure before filing a motion to compel.

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