Mealey's Emerging Insurance Disputes : Mealey's : Legal News & Analysis

Mealey's Emerging Insurance Disputes

November 15, 2023
7th Circuit Issues Mandate Remanding Class Action Challenging Insurance Practices

CHICAGO — The Seventh Circuit U.S. Court of Appeals issued a mandate after denying an insurer and its directors and officers’ petitions for rehearing en banc seeking review of an earlier holding that a class action challenging the insurer’s practices fits within the internal affairs and home state controversy exceptions to the Class Action Fairness Act (CAFA), denying the insurer’s motion to stay the issuance of the mandate pending the filing of and ruling on its petition for certiorari.
November 15, 2023
Amber Heard Asks 9th Circuit To Review Dismissal Of Counterclaims In Coverage Suit

LOS ANGELES — Amber Heard notified a California federal court that she is asking the Ninth Circuit U.S. Court of Appeals to review the court’s dismissal of her breach of contract and bad faith counterclaims in the insurer’s declaratory judgment lawsuit alleging that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.
November 14, 2023
Panel Partly Vacates Ruling In Coverage Suit Arising From Slander Of Title Claims

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Nov. 13 ruled that a lower federal court erred in finding that a claim for slander of title against an insured was not covered under the insurance policy, partly vacating and remanding the lower court’s ruling in a coverage dispute over an underling lawsuit alleging cancellation of deed and quiet title, slander of title and conversion against the insured.
November 13, 2023
Panel Denies Maritime Insurer’s Rehearing Petition In Suit Over Seaman’s Injuries

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals denied an insurer’s petition seeking a panel rehearing challenging its ruling that the insurer has a duty to pay the maintenance and cure under a maritime protection and indemnity (P&I) insurance policy for a seaman’s injuries that he incurred while employed on a lift boat.
November 10, 2023
Judge: Claims Fall Within Former D&O Exception To ‘Insured V. Insured’ Exclusion

BOSTON — Ruling on dueling summary judgment motions, a federal judge in Massachusetts on Nov. 9 held that a private company management liability insurer has a duty to defend against certain claims that fall under the “Former Directors and Officers” exception to the policy’s “Insured v. Insured” exclusion but other claims are barred by not falling within the “Shareholder Derivative” exception to the same exclusion.
November 10, 2023
Louisiana Panel Reverses Ruling In Insurer’s Favor In Dog Bite Coverage Dispute

BATON ROUGE, La. — A Louisiana appellate court panel on Nov. 9 reversed a lower court’s summary judgment ruling in favor of a homeowners insurer in a coverage dispute arising from a dog bite, finding that the insurance policy “may reasonably be interpreted to provide coverage” for the underlying claims (Varile Rae Ann Pitre Tucker v. Cecelia Chatfield, et al., No. 2023 CA 0343. La. App., 1st Cir.).
November 09, 2023
Federal Judge Issues 3 Orders In D&O Coverage Dispute Arising From Failed Bank

NEW ORLEANS — A federal judge in Louisiana on Nov. 8 granted Federal Deposit Insurance Corp.’s motion for partial summary judgment in a directors and officers liability coverage dispute arising from the failure of First NBC Bank, granted in part the receiver’s motion to dismiss and ruled on a motion to compel arbitration.
November 08, 2023
Federal Judge Retains Jurisdiction Over Insurer’s Suit Against Church, Members

ALLENTOWN, Pa. — A federal judge in Pennsylvania on Nov. 7 denied church members’ motion to dismiss an insurer’s declaratory judgment lawsuit disputing coverage for an underlying lawsuit alleging breaches of fiduciary duty and trust against them, finding that exercise of jurisdiction under the Declaratory Judgment Act (DJA) is proper.
November 08, 2023
Judge Modifies Class In Driver’s Suit Against GEICO For Unfair COVID Premiums

SAN FRANCISCO — A California federal judge on Nov. 7 granted an insured’s motion to modify a previously certified class of automotive policy holders in the insured’s suit claiming that GEICO violated California’s unfair competition law (UCL) by profiting from a premium giveback program initiated during the COVID-19 pandemic, with the judge agreeing based on evidence produced to change the class time period.
November 08, 2023
Louisiana Panel: Professional Liability Insurer Of Engineer Cannot Be Held Liable

BATON ROUGE, La. — A Louisiana appeals court panel concluded that because an engineer insured has no liability to Terrebonne Parish Consolidated Government (TPCG) as a matter of law, the engineer’s professional liability insurer also cannot be held liable to TPCG, affirming a lower court’s summary judgment rulings in favor of the insurer and engineer in a lawsuit arising from a contractor’s claims that plans, specifications and bidding documents were inadequate and insufficient to properly construct a road in Terrebonne Parish.
November 08, 2023
Settlement Reached In Coverage Row With Care Home, Insurer, Ancillary Care Company

ASHEVILLE, N.C. — A nursing home and an ancillary care company and its insurer on Nov. 7 filed a stipulation of dismissal in North Carolina federal court advising that they settled the nursing home’s breach of contract suit against the company and insurer seeking to have them indemnify and defend the nursing home in an underlying arbitration proceeding related to the death of a former resident.
November 08, 2023
California Panel Affirms Ruling In Equitable Contribution Suit Between Insurers

FRESNO, Calif. — A California appeals panel held that the undisputed evidence establishes that insureds knew that “bodily injury” and “property damage” asserted in an underlying complaint occurred before the inception of a defendant commercial general liability insurer’s policy period, affirming a lower court’s judgment in favor of the defendant CGL insurer in an equitable contribution lawsuit brought by another CGL insurer.
November 07, 2023
Judge Allows Law Firm To Intervene To Enforce Lien Against D&O Policy Proceeds

SAN JOSE, Calif. — A federal judge in California granted a law firm’s motion to intervene in an insurer’s lawsuit seeking a declaration that a directors and officers employment practices liability and fiduciary liability policy is rescinded because of the insureds’ material misrepresentations, permitting the firm to enforce a charging lien against the proceeds of the policy.
November 07, 2023
Prompted By Insurer’s Notice, Magistrate Dismisses CGL Coverage Dispute

BALTIMORE — Three days after a commercial general liability insurer filed a notice to dismiss, a federal magistrate judge in Maryland on Nov. 6 signed an order dismissing the insurer’s complaint disputing coverage for a lawsuit alleging that a city employee who was working as a security guard at the Baltimore Convention Center observed and filmed minors while they were undressing in a dressing area during a dance competition at the center.
November 06, 2023
4th Circuit Tosses Appeal In COVID-19 Coverage Suit After Parties Agree To Dismiss

RICHMOND, Va. — One day after an insured and its insurer filed a stipulation of voluntary dismissal, the Fourth Circuit U.S. Court of Appeals dismissed the insured’s appeal of a Maryland federal court’s denial of its motion for leave to file a second amended complaint to address the standard for physical loss that was provided by the Maryland Supreme Court in answer to a certified question in a COVID-19 coverage dispute.
November 06, 2023
Judge Dismisses Counterclaims Against Insurers, Subcontractor In Worker Injury Suit

NEW YORK — A New York federal judge granted a subcontractor and excess insurers’ motion to dismiss counterclaims and cross-claims brought against them by a contractor and a construction manager in the subcontractor’s lawsuit seeking coverage for claims brought by two of its workers.
November 03, 2023
3rd Circuit Denies Insurers’ Motion To Stay In Dispute Over Boy Scouts’ Plan

PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Nov. 3 denied certain insurers’ and two sets of abuse claimants’ motions to stay further implementation of the Boy Scouts of America’s third modified, fifth amended Chapter 11 reorganization plan, which contemplates the creation of a settlement trust to “assume liability for all Abuse Claims,” rejecting the insurers’ argument that the U.S. Supreme’s Court’s forthcoming ruling in Harrington v. Purdue Pharma, L.P. on the permissibility of nonconsensual releases to nondebtors may overturn Third Circuit precedent and decide whether the bankruptcy plan can move forward.
November 02, 2023
9th Circuit Affirms Dismissal Of Vizio’s 4th Amended Complaint On Other Grounds

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of Vizio Inc.’s fourth amended complaint seeking coverage for an underlying $17 million settlement and defense costs arising from class claims alleging unauthorized collections of consumers’ television viewing data, finding that Vizio breached the insurance policy by not soliciting the excess insurer’s consent before settling the underlying lawsuit.
November 02, 2023
Panel Refuses To Reconsider Remand Of Class Action Challenging Insurer’s Practice

CHICAGO — The Seventh Circuit U.S. Court of Appeals denied an insurer and its directors and officers’ petitions for rehearing en banc seeking review of its holding that a class action challenging the insurer’s practices fits within the internal affairs and home state controversy exceptions to the Class Action Fairness Act (CAFA), standing by its reversal of a lower federal court’s denial of the insured’s motion to remand.
November 01, 2023
Employer Seeks Coverage For Class Action Suit Alleging BIPA Violations

CHICAGO — An employer sued its insurer in an Illinois federal court seeking commercial general liability and umbrella insurance coverage for an underlying putative class action alleging that it violated the Illinois Biometric Information Privacy Act (BIPA) by disseminating electronic information derived from the scanning of its employees’ biometric identifiers to third parties without their consent.
October 30, 2023
Federal Judge Dismisses Coverage Suit Over Tenants’ Claims Against Mutual Insured

OAKLAND, Calif. — Three days after a plaintiff insurer and a defendant commercial general liability insurer filed a stipulation for dismissal of a declaratory judgment lawsuit arising from an underlying action alleging that their mutual insured attempted to drive tenants out of their units, a federal judge in California dismissed the lawsuit with prejudice.
October 30, 2023
Maritime Insurer Seeks Rehearing In Suit Seeking Recoupment Of Benefits Paid

NEW ORLEANS — An insurer seeks a panel rehearing challenging the Fifth Circuit U.S. Court of Appeals’ ruling that it has a duty to pay the maintenance and cure under a maritime protection and indemnity (P&I) insurance policy for a seaman’s injuries that he incurred while employed on a lift boat, arguing that the court’s ruling “draws a line” in P&I coverage and that this line “will create significant challenges in the marine insurance industry for both underwriters and assureds.”
October 30, 2023
Harvard Sues Broker For Failing To Notify Excess E&O Insurers Of ‘Major’ Claim

BOSTON — President and Fellows of Harvard College sued its insurance broker in a Massachusetts court for malpractice, breach of contract and declaratory relief, seeking damages for the broker’s alleged failure to provide notice to Harvard’s excess errors and omissions insurers of an underlying action alleging that its consideration of a student’s race in its college admissions process violated Title VI of the Civil Rights Act.
October 27, 2023
Contractor Did Not Timely Report Claim; No Professional Liability Coverage Owed

LOS ANGELES — A California appeals panel affirmed a lower court’s summary judgment ruling in favor of a professional liability insurer in a contractor insured’s breach of contract and bad faith lawsuit, finding that the insured failed to timely report underlying counterclaims for negligence, delay, breach of contract, construction defects and failure to complete construction.
October 26, 2023
Panel Affirms Ruling For Insurer In Coverage Dispute Arising From Battery Fire

SAN DIEGO — A California appeals panel concluded that insureds failed to present a triable issue of material fact as to their breach of contract claim against their insurer, affirming a lower court’s grant of summary judgment in favor of the insurer in a coverage dispute arising from damage caused by a lithium battery that caught on fire.