Mealey's Insurance

  • 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.

  • February 22, 2022

    Water Damage Exclusion Supersedes Endorsement; No Coverage Owed

    WEST PALM BEACH, Fla. — The Fourth District Florida Court of Appeal on Feb. 16 reversed and remanded a trial court’s ruling entered in favor of an insured in a water damage coverage dispute after determining that the trial court erred in finding that a water damage exclusion does not apply as a bar to coverage for the damages.

  • February 18, 2022

    Insured Tells 2nd Circuit Coverage Owed For Asbestos Claims Under Missing Policy

    NEW YORK — A district court erred in entering judgment in favor of an insurer in an asbestos coverage suit because the insured provided clear evidence that coverage is owed under a missing policy, the insured argues in a Feb. 15 appellant brief filed in the Second Circuit U.S. Court of Appeals.

  • February 18, 2022

    Homeowners Insurer Failed To Prove Policy’s Freezing Exclusion Bars Coverage

    DETROIT — A Michigan federal judge on Feb. 15 denied a homeowners insurer’s motion for summary judgment in a water damage dispute after determining that the insured offered evidence that he kept his home’s heat at a temperature higher than was required by the policy’s freezing of pipes exclusion.

  • February 17, 2022

    Breach Of Contract, Bad Faith Suit Not Filed Within Suit Limitations Period

    NEW YORK — A New York federal judge on Feb. 4 dismissed an insured’s breach of contract and bad faith suit filed against its commercial property insurer arising out of a coverage dispute for property damages and business interruption losses caused by water damage after determining that the insured failed to file the suit before the policy’s suit limitation expired.

  • February 16, 2022

    Parties Make In Limine Arguments In Reinsurance Billings Suit Over Allocation

    BOSTON — Arguing about evidence and expert witnesses in advance of a jury trial scheduled to start March 1 in Massachusetts federal court, parties in a reinsurance billings dispute over the allocation of a $120 million environmental claims settlement filed motions in limine on Jan. 31 and opposition on Feb. 7 in Massachusetts federal court.

  • February 16, 2022

    Insured Seeks Coverage For Subpoena Filed In MDL Over Fire Suppressing Foam

    AUSTIN, Texas — A distributor of a fire suppressing foam filed suit in Texas federal court on Feb. 15 against its insurer, alleging that the insurer breached its contract and acted in bad faith by denying coverage for a subpoena served on the insured in an underlying multidistrict litigation suit seeking damages for bodily injuries and contaminated drinking water caused by the use of the fire suppressing foam.

  • February 15, 2022

    Magistrate Judge Says No Additional Coverage Exists For Insureds’ Mold Damages

    AUSTIN, Texas — A Texas federal magistrate judge on Feb. 8 recommended denying a motion for summary judgment filed by insureds seeking additional coverage for water and mold damages after determining that the insureds’ claims for breach of contract, bad faith and declaratory judgment cannot proceed because the insureds failed to show that coverage is afforded under the policy.

  • February 15, 2022

    Insured Contractor Claims Pollution Liability Insurer Breached Contract

    NEW YORK — A construction manager claims in a Feb. 10 suit filed in New York court that its pollution liability insurer breached its contract and breached the implied duty of good faith and fair dealing by refusing to settle an underlying suit arising out of a release of asbestos-containing material.

  • February 14, 2022

    Notice Of Environmental Claim To Nonparty Insurer Is Admissible, Justice Says

    NEW YORK — A New York Supreme Court justice on Feb. 9 determined that an insured’s notice of an environmental contamination claim to a nonparty excess insurer in 1991 is admissible, with redactions, because the document is relevant to the issue of whether the insured’s notice to another excess insurer in 1993 was timely.

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