Mealey's Insurance Bad Faith
-
October 24, 2023
Judge Dismisses Punitive Damages Claim Despite Allegedly Egregious Breach
CENTRAL ISLIP, N.Y. — A federal judge in New York partly granted an insurer’s motion to dismiss two homeowners’ claims, dismissing only a claim for punitive damages on the grounds that the homeowners failed to adequately allege that when the insurer breached the covenant of good faith and fair dealing by underpaying covered plumbing damages, it was part of a pattern of harming the public.
-
October 24, 2023
Additional Insured’s Bad Faith Claims Fail In Chemical Exposure Coverage Suit
ROCHESTER, N.Y. — A New York federal judge determined that an additional insured’s claim for breach of the implied duty of good faith and fair dealing arising out of a coverage dispute for an underlying chemical exposure bodily injury suit must be dismissed because it is duplicative of a breach of contract claim. However, the judge said the additional insured is permitted to amend its complaint as it pertains to the breach of good faith and fair dealing claim.
-
October 23, 2023
Insureds Seek Dismissal In Hurricane Coverage Row Involving Liquidated Insurer
ST. CROIX, Virgin Islands — Homeowners notified a federal court in the Virgin Islands that because one of the insurer defendants was never served, the case against it should be dismissed in the insureds’ Hurricane Maria coverage suit involving an insurer in liquidation.
-
October 23, 2023
Federal Judge Dismisses Claims That Insurer Has Duty To Defend Battery Suit
SANTA ANA, Calif. — A federal judge in California dismissed without prejudice breach of contract and other claims against an insurer that denied liability for two insurance policy holders accused of battery in a lawsuit following an altercation.
-
October 18, 2023
Debtors In Vesttoo Chapter 11 Case Ask Bankruptcy Court To Establish Bar Dates
WILMINGTON, Del. — Vesttoo Ltd. and 48 affiliated entities (collectively, the debtors) have asked a Delaware federal bankruptcy court to set a series of bar dates in their jointly administered Chapter 11 case, starting with a Dec. 1 deadline for nongovernmental entities or individuals to file proof of claims that arose before the debtors filed for bankruptcy.
-
October 18, 2023
Former NBA Player Alleges Disability Insurer Breached Contract, Acted In Bad Faith
CHARLOTTE, N.C. — A former National Basketball Association (NBA) player alleges in a complaint filed in North Carolina federal court that his disability insurer acted in bad faith and breached its contract by denying his disability benefits claim because he was rendered totally and permanently disabled by a diagnosis of myopericarditis, an inflammation of the lining of his heart, following two bouts with COVID-19.
-
October 16, 2023
Parties In Breach, Bad Faith Lawsuit Spar Over Dismissal Arguments
MONTGOMERY, Ala. — In separate replies addressing the plaintiff’s contentions that it is not an insurer and that the policies at issue are not reinsurance, defendants in an Alabama federal suit over reimbursement for workers’ compensation claims reiterate their arguments for dismissing the breach of contract, bad faith, laches and equitable estoppel claims against them.
-
October 13, 2023
Policy’s 2-Year Prescriptive Period Provision Not Applicable To Bad Faith Claim
LAKE CHARLES, La. — A bad faith claim alleged by insureds against their homeowners insurer can proceed because the policy’s two-year prescriptive period applies only to the insureds’ breach of contract claim, a Louisiana federal judge said after determining that the bad faith claim is subject to a 10-year prescriptive period based on precedent set forth by the Louisiana Supreme Court.
-
October 13, 2023
Bad Faith Claim To Proceed Against Auto Insurer, Question Of Fact Exists
LAS VEGAS — An insured’s claims for bad faith and unfair claims practices against an auto insurer can proceed because the insured presented evidence in support of his contention that a genuine issue of fact exists as to whether the auto insurer’s handling of his claim was reasonable, a Nevada federal judge said in partially denying the insurer’s motion for summary judgment.
-
October 13, 2023
Reconsideration Denied In Bid To Substitute Guaranty Association For Insurer
NEW ORLEANS — A Louisiana federal judge denied a request to reconsider an order denying substituting a now-insolvent insurer with the Louisiana Insurance Guaranty Association (LIGA) in a suit seeking coverage for purported damage to a home caused by Hurricane Ida, finding that there are no obligations transferred from an insolvent insurer to LIGA permitting it to “step into the shoes of the insolvent insurer.”
-
October 12, 2023
Pennsylvania Mediation Privilege Law Is Applied In Indemnification Row
TRENTON, N.J. — Ruling on a motion to compel discovery in a dispute between insurers and reinsurers over indemnification for asbestos bodily injury claims, a New Jersey federal magistrate judge denied it without prejudice as to two categories of documents but partly granted it as to a third category.
-
October 12, 2023
Judge Rules For Insurer In Hotel’s Coverage Suit Over Theft, Vandalism Claims
LOS ANGELES — A California judge granted a businessowners insurer’s motion for summary judgment in a hotel owner insured’s breach of contract and bad faith lawsuit seeking coverage for its losses arising from alleged theft and vandalism that occurred following its shutdown of operations in response to the coronavirus pandemic, finding that the policy’s vacancy provision bars coverage and estoppel does not apply.
-
October 11, 2023
Bad Faith Claim Against Auto Insurer Cannot Proceed, Federal Judge Determines
PHILADELPHIA — A bad faith claim alleged against an auto insurer cannot proceed because the insured failed to plead sufficient facts in support of the claim, a Pennsylvania federal judge said in granting the auto insurer’s motion to dismiss the claim.
-
October 11, 2023
Auto Insurer Ordered To Show Cause As To Why Suit Should Not Be Remanded
SEATTLE — A Washington federal judge ordered an auto insurer to show cause as to why an insured’s breach of contract and bad faith suit stemming from claims for underinsured motorist (UIM) benefits and personal injury protection (PIP) benefits should remain in federal court and not be remanded to state court.
-
October 10, 2023
California Federal Judge Finds Contractor Cannot Bring Bad Faith Claim
LOS ANGELES — Because there has been no excess judgment in underlying arbitration proceedings stemming from a general contractor’s alleged failure to properly secure a building under construction in advance of a hurricane, the contractor cannot state a claim against a commercial general liability insurer for bad faith, a federal judge in California ruled in granting the insurer’s motion for partial summary judgment on the claim.
-
October 10, 2023
Insured Claims Property Insurer Owes Additional Coverage For Water Damage
LOS ANGELES — An insured filed suit in California state court against its property insurer, seeking a declaration that the insurer owes additional coverage to repair a property damaged when water pipes burst in the building and alleging that the insurer breached its contract and acted in bad faith by refusing to release additional fund for repairs.
-
October 06, 2023
Hurricane Coverage Suit Remanded After Guaranty Association Added As Defendant
NEW ORLEANS — A Louisiana federal judge remanded to state court a homeowner’s hurricane coverage suit against his now-insolvent insurer, finding that remand is appropriate because adding the Louisiana Insurance Guaranty Association (LIGA) as a defendant in the amended complaint defeats subject matter jurisdiction.
-
October 05, 2023
Parties Make Dismissal Arguments In Crop Insurance Row Over Long-Pending Claims
GRAND RAPIDS, Mich. — Arguing that “if this case is not ripe, it never will be,” plaintiffs who sued over crop insurance claims that they say have not been adjusted in more than three years mostly opposed a dismissal motion filed in Michigan federal court by the U.S. Department of Agriculture (USDA) and the Federal Crop Insurance Corp. (FCIC).
-
October 04, 2023
Judge Finds Insurer Breached Contract In Denying Bridge Damage Coverage Claims
WASHINGTON, D.C. — A federal judge in the District of Columbia granted a bridgebuilder summary judgment on its breach of contract claim against its builders risk insurer, finding that the policy’s definition of “damage” includes its claim for reimbursement for repair costs necessitated by defects in the concrete of the bridge and that the insurer failed to demonstrate that any exclusions apply.
-
October 04, 2023
Unsecured Creditors In Vesttoo Chapter 11 Case Get Leave To Conduct Discovery
WILMINGTON, Del. — The Official Committee of Unsecured Creditors in the jointly administered Chapter 11 case of Vesttoo Ltd. and 48 affiliated entities has been granted leave by a Delaware federal bankruptcy judge to conduct discovery.
-
October 03, 2023
Judgment Stayed After Builders Risk Insurer Appeals Verdict, Post-Trial Rulings
DENVER — A federal judge in Colorado on Oct. 2 stayed the execution of final judgment in a condominium developer’s suit against its builders risk insurer pending resolution of all appellate proceedings after the insurer appealed the judgment, all rulings and orders related to the jury’s award of $2.54 million in damages to the developer and a number of post-trial rulings to the 10th Circuit U.S. Court of Appeals.
-
October 03, 2023
Plaintiffs Win Remand Of Coverage Row Over Aircraft Leased To Russian Airline
MIAMI — Citing “the complete alienage jurisdiction rule,” a Florida federal judge ordered remand to a Florida state court in a coverage dispute over aircraft that a Russian airline refused to return after the invasion of Ukraine.
-
October 02, 2023
Judge: Issues Of Fact Exist On Insurer’s Coverage Denial In Water Damage Dispute
OKLAHOMA CITY — An insured’s claim for bad faith against its commercial property insurer can proceed because issues of material fact exist as to whether the insurer’s denial of coverage for some roof damage and interior water damage was reasonable, an Oklahoma federal judge said in denying the insurer’s motion for summary judgment.
-
September 29, 2023
Federal Judge Remands Hurricane Ida Coverage Dispute For Lack Of Jurisdiction
NEW ORLEANS — A Louisiana federal judge remanded to state court homeowners’ bad faith and breach of contract suit against their now-insolvent insurer, which they allege failed to pay for damages resulting from Hurricane Ida, finding that the court lacks jurisdiction because the homeowners added the Louisiana Insurance Guaranty Association (LIGA) as a defendant in their amended complaint.
-
September 29, 2023
Dismissal Bid Fails In Excess Loss Reinsurance Row With ERISA, Bad Faith Claims
PITTSBURGH — Ruling the arguments “more appropriately handled at the summary judgment stage,” a Pennsylvania federal judge on Sept. 28 denied a dismissal motion in an Employee Retirement Income Security Act suit over an excess loss reinsurance contract.