Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

May 15, 2023
Guaranty Association Must Defend Insured Drywaller In Underlying Row, Insurer Says

JACKSONVILLE, Fla. — A New Mexico commercial general liability insurer defending its insured drywall company in a construction defects action filed a contribution suit in a Florida federal court against the Florida Insurance Guaranty Association (FIGA), as successor in interest to a now-insolvent Florida commercial liability insurer of the drywaller, asserting that FIGA is liable for defense costs and indemnity in the underlying action.
May 11, 2023
Parties Outline Discovery Dispute In Suit Against Reinsurer Over Settlement

WHITE PLAINS, N.Y. — Parties in a breach suit involving an environmental losses settlement have outlined a discovery dispute for a New York federal magistrate judge, with insurers filing a May 10 letter responding to arguments a reinsurer made regarding allocation modeling documents and records of its key case committee.
May 11, 2023
Parties Dispute Coverage Issues In Groundwater Contamination Suit

RIVERSIDE, Calif. — In reply briefs filed in support of competing motions for summary judgment in a groundwater contamination coverage suit, an insured and its excess insurer seek a ruling from a California federal court on whether judgment should be entered on the insured’s breach of contract claim arising out of the insurer’s termination of coverage based on the insurer’s position that coverage is owed for only one occurrence under the applicable policies.
May 09, 2023
Citing Liquidation Order, Reinsurer Seeks Stay Of Claims In Liabilities Row

OMAHA, Neb. — Arguing that two abstention doctrines apply because of Pennsylvania liquidation proceedings, a reinsurer moved in Nebraska federal court to stay claims against it in a suit over the $157.2 million settlement National Indemnity Co. (NICO) reached with Montana regarding alleged asbestos exposures.
May 08, 2023
Law Firm Sues Insurer For Bad Faith, Seeks $1M Crime Coverage For Alleged Fraud

FLINT, Mich. — A law firm insured sued its insurer for breach of contract and bad faith in a Michigan federal court, alleging that it is owed $1 million in crime coverage for its $1,602,107.98 in total losses stemming from a fraudulent funds transfer.
May 05, 2023
Attorney Fees Ruling Delay Would Harm Contractor In Coverage Dispute, Judge Told

FORT MYERS, Fla. — A federal judge in Florida should not deter ruling on a contractor’s pending motions miscellaneous relief pending appeal in a coverage dispute over an insurer’s duty to defend the contractor in an underlying construction defects lawsuit because granting such relief would harm the contractor, the contractor argues in an opposition brief filed in Florida federal court.
May 05, 2023
Receiver Who Sought Rehab Has Concluded That Reinsurer Should Be Liquidated Instead

WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) has concluded that SRUS should be liquidated instead of rehabilitated, saying in a letter to the Delaware Court of Chancery that he intends to move for an order of liquidation in about 45 days.
May 05, 2023
Insurer Says No Coverage Due For Tenant’s Suit Arising Out Of Legionnaire’s Disease

LOUISVILLE, Ky. — No coverage is afforded for an underlying bodily injury suit arising out of an apartment tenant’s contraction of Legionnaire’s disease while residing in an insured apartment building because the policy at issue excludes coverage for bodily injury claims related to the exposure to any fungi, wet rot, dry rot or bacteria, the insurer says in a complaint filed in Kentucky federal court.
May 05, 2023
Insureds Seek Panel Rehearing In Mold Damage Coverage Suit Before 5th Circuit

NEW ORLEANS — A panel rehearing of the Fifth Circuit U.S. Court of Appeals’ finding that a mold exclusion in a homeowners policy bars coverage is warranted because the mold damages are covered under the policy’s exception to the mold exclusion since water intrusion, which is a covered cause of loss under the policy, caused the mold growth in the insureds’ home, the insureds say in a petition for panel rehearing.
May 05, 2023
Insurer Asks Texas Appeals Court To Reverse Ruling In Storm Damage Coverage Suit

EDINBURG, Texas — An insurer asked a Texas appeals court to reverse a lower court’s summary judgment ruling in favor of an insured in a coverage dispute over storm damage, arguing that the lower court improperly granted the insured no-evidence summary judgment on whether it filed its storm damage claim within the policy’s one-year coverage period.
May 04, 2023
Building Owner Appeals Faulty Design Coverage Suit Dismissal To 10th Circuit

DENVER — The 10th Circuit U.S. Court of Appeals has been asked to review a federal judge in Wyoming’s ruling that a building owner failed to show that an insurer and its claims service manager were the cause of its filing of a breach of contract claim in a coverage suit stemming from the building’s faulty design and construction outside the two-year statute of limitations based on their delay in ultimately denying the claim.
May 04, 2023
Summary Judgment Ruling In Leaky Roof Coverage Suit Appealed To 2nd Circuit

ROCHESTER, N.Y. — Former homeowners have appealed to the Second Circuit U.S. Court of Appeals a New York federal magistrate judge’s finding that insurers owe no duty to defend the former homeowners in a lawsuit stemming from their alleged failure to disclose structural and environmental issues in connection with a home they sold.
May 04, 2023
Homeowners Seek 9th Circuit Review Of Dismissal Of Defects Coverage Claims

SAN FRANCISCO — Homeowners have appealed to the Ninth Circuit U.S. Court of Appeals the dismissal of their claims against an insurer for failure to properly prosecute the claims in a coverage dispute stemming from a construction defects lawsuit over the construction of homes in a housing development.
May 04, 2023
Defendants In Roof Collapse Coverage Suit Considering Settlement

NASHVILLE, Tenn. — Parties in a coverage dispute over a roof collapse that occurred at a vehicle manufacturer’s assembly plant during a re-roofing project tell a federal magistrate judge in Tennessee that a contractor and its subcontractors are considering a settlement demand made by the plaintiffs and working on a date to begin mediation to potentially resolve the action, according to a joint status report requested by the court following the denial of the defendants’ motions to dismiss and for judgment on the pleadings.
May 03, 2023
Appellant Seeks Reversal Of No Coverage Ruling For IP Claim Over Gold Treasure

SEATTLE — An appellant asked the Ninth Circuit U.S. Court of Appeals to reverse a lower federal court’s summary judgment ruling in favor of an ocean marine general liability insurer in its declaratory judgment lawsuit disputing coverage for an underlying $7.5 million covenant judgment that resolved claims that the appellant was denied possession and use of the tangible and intangible work product that was created during gold salvage expeditions, arguing that the lower court improperly endorsed the insurer’s “mis-characterization” of the policy.
May 03, 2023
Plaintiffs Update Bid For Third-Party Complaint Against Reinsurers In Crash Case

MIAMI — The day after updating their proposal for adding claims against reinsurers in a plane crash case in which settlements were reached over an $844 million default judgment, plaintiffs filed a notice in Florida court that the hearing on their motion was canceled.
May 03, 2023
Insurer Says District Court Correctly Found No Coverage For Mold, Water Damage

ATLANTA — The 11th Circuit U.S. Court of Appeals should affirm a district court’s ruling that no coverage is owed for mold damage discovered in an insured hotel because the hotel has a long and documented history of water leaks and mold growth due to faulty construction that incepted prior to the applicable policy period, the insurer says in its appellee brief.
May 03, 2023
Contractor Appeals Summary Judgment In Rain Damage Coverage Suit To 9th Circuit

SAN FRANCISCO — A contractor has appealed to the Ninth Circuit U.S. Court of Appeals a federal judge in Washington’s grant of summary judgment in favor of insurers in a coverage dispute stemming from water intrusion damages caused by snow and rainfall during the construction process after ruling that the insurers’ denial of the claim was proper based on the policies’ rain exclusion.
May 02, 2023
Dismissal, Transfer Bids Disputed In Reinsurer’s Suit Over Alleged Breaches

SAN FRANCISCO — Arguing issues including which state’s law applies to certain claims, a reinsurer has opposed transfer and dismissal bids by defendants in its case in California federal court alleging a fraudulent scheme to inflate provisional commissions and breach of various agreements.
May 01, 2023
Lloyd’s Subscribers Want Suit Over $44.9M In Losses From Afghan Facility Dismissed

NEW YORK — After some defendants said they want to seek dismissal of a lawsuit over whether the plaintiffs obtained insurance or reinsurance and whether any fraud or negligence was involved, a New York federal judge set a pre-motion conference for May 23.
May 01, 2023
Pollution Exclusion Bars Coverage For Noxious Odors Suit, Insurers Maintain

TYLER, Texas — No coverage is owed for an underlying suit alleging damages caused by the release of noxious odors by an insured fertilizer plant because the policies’ exclusions for pollution and expected an intended injury bar coverage, insurers say in a complaint filed in Texas federal court.
April 28, 2023
Insured Says Judgment For Insurer On Bad Faith Claims In Water Damage Suit Was Error

SAN FRANCISCO — An insured claims in an appellant brief filed in the First District California Court of Appeal that a trial court erred in granting an insurer’s motion for summary judgment on her bad faith claims in a water damage coverage suit because the insurer waived its right to assert the policy’s provision requiring the insured to participate in an examination under oath before filing suit.
April 27, 2023
D&O Insurer Asks Court To Reconsider Ruling In Employee Embezzlement Coverage Suit

SAN DIEGO — A directors and officers liability insurer on April 26 moved for reconsideration or clarification of a California federal judge’s March 29 order that denied its motion for summary judgment and a homeowners association insured’s motion for partial summary judgment in a coverage lawsuit over a $688,931 judgment arising from employee embezzlement.
April 26, 2023
Court Erred In Rejecting Concurrent Cause Argument, Subrogee Insurer Argues

ATLANTA — The 11th Circuit U.S. Court of Appeals should reverse a federal district court’s grant of summary judgment in favor of an insurer in a coverage dispute over payment of policy claims made by a joint venture that oversaw a construction project at a water reclamation facility because a subrogee insurer is seeking to recover damages not solely for design defects, but for damages caused by a combination of policy-excluded design defects and “covered hydrostatic pressure,” the subrogee insurer argues in a reply brief filed in the appellate court.
April 24, 2023
Restaurant Owner Says Coverage Owed For Sewage Line Backup Damages

LOS ANGELES — An insured restaurant owner argues in a brief filed in the Second District California Court of Appeal that a trial court incorrectly granted summary judgment in favor of its insurer in a coverage dispute over water damages caused by a sewer line backup because issues of fact exist as to the cause of the backup and whether coverage was afforded for some of the damage.