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

Mealey's Insurance Pleadings

January 22, 2024
Insurer Asks 5th Circuit To Reconsider Affirmation Of $502,172 Bad Faith Judgment

NEW ORLEANS — An insurer on Jan. 19 asked the Fifth Circuit U.S. Court of Appeals to reconsider its ruling that there was no reversible error in a jury’s conclusion that it acted in bad faith and underpaid its church insured for property damage that was caused by Hurricane Laura, challenging the panel’s ruling that affirmed the trial court’s $502,172.16 award in favor of the insured for damages, penalties and fees.
January 22, 2024
Insolvent Insurers’ Owner Opposes Injunction After Ordered To Pay $576M Judgment

GREENSBORO, N.C. — The owner of insolvent insurers filed a brief in a North Carolina federal court, opposing an insurer’s motion for an injunction to prevent the owner from transferring assets after a North Carolina federal judge issued a judgment requiring the owner to pay more than $576 million pursuant to a personal guaranty for a reinsurance agreement.
January 22, 2024
Insureds Failed To Show Valid Basis For N.C. High Court Review, Insurer Argues

RALEIGH, N.C. — An insurer argued to the North Carolina Supreme Court that an appeals court’s ruling that affirmed a lower court’s dismissal of a clothing retailer insured’s lawsuit seeking coverage for its losses arising from the coronavirus pandemic “presents no precedent-setting error that warrants intervention” by the North Carolina Supreme Court.
January 22, 2024
Bridgebuilder, Insurer Stipulate To Dismissal Of Damage Coverage Claims

WASHINGTON, D.C. — A bridgebuilder and its builders risk insurer have agreed to the dismissal with prejudice of the builder’s breach of contract and bad faith suit against the insurer; the builder last year had been granted summary judgment on the breach of contract claim after a federal judge in the District of Columbia found that the policy’s definition of “damage” includes the builder’s 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.
January 22, 2024
Contractor, Insurer Settle Construction Defects Suit, File Stipulation Of Dismissal

GREENBELT, Md. — A general contractor and its professional liability insurer filed a corrected stipulation of dismissal with prejudice on Jan. 18 in a Maryland federal court after reaching a settlement in the suit filed by the insured general contractor and alleging that the insurer breached its contract and acted in bad faith by failing to pay the insured for rectification expenses related to a faulty wall system installed as part of a construction project.
January 19, 2024
Court Ignored Ordinary Meaning Of Physical Loss, Insureds Tell N.C. High Court

RALEIGH, N.C. — Restaurant insureds tell the North Carolina Supreme Court that it should reverse an appeals court’s reversal of a lower court’s grant of partial summary judgment in their favor in a coronavirus coverage dispute, arguing that the phrase “physical loss or physical damage” includes loss of the physical use of property under the state’s “long-standing principles of insurance contract interpretation.”
January 16, 2024
Engineer Tells 10th Circuit Insurer’s Negligence Claim Was Time-Barred

DENVER — A Wyoming federal judge’s order granting summary judgment in an engineering firm’s favor should be affirmed, the firm tells the 10th Circuit U.S. Court of Appeals in an appellee brief, saying the judge correctly found that an insurer’s claim against the engineer that designed a home’s plumbing that allegedly caused water damage to the home is time-barred by the two-year statute of limitations for professional negligence claims.
January 12, 2024
Insured Asserts Insurer Fraudulently Down-Coded Electrotherapy Medical Devices

MINNEAPOLIS — The manufacturer and seller of an electrotherapy medical device sued its insurer in a Minnesota federal court for breach of contract and deceptive trade practices, alleging that the insurer has a “blanket corporate policy” of fraudulently down-coding and short-paying for the insured’s H-Wave medical devices that has resulted $1.3 million in injuries to the insured.
January 10, 2024
Reinsurer Tackles Third-Party Beneficiary Theory In Cleanup Costs Coverage Row

PADUCAH, Ky. — Arguing in part that what it calls a newly asserted third-party beneficiary theory fails as a matter of law, a reinsurer filed a reply brief on Jan. 9 urging a Kentucky federal court to grant its summary judgment motion in a dispute over pollution-related cleanup costs.
January 05, 2024
Merck, Insurers Ask N.J. High Court To Dismiss Cyberattack Coverage Dispute

TRENTON, N.J. — Merck & Co. Inc. and certain insurers filed stipulations in the New Jersey Supreme Court seeking dismissal of the insurers from Merck’s lawsuit seeking coverage for its losses arising from a June 2017 malware/cyberattack.
January 05, 2024
Clothing Retailer Asks North Carolina High Court To Review COVID-19 Coverage Suit

RALEIGH, N.C. — A clothing retailer insured petitioned the North Carolina Supreme Court to review an appeals court’s ruling that affirmed a lower court’s dismissal of its lawsuit seeking coverage for its losses arising from the coronavirus pandemic, challenging the lower courts’ reliance on North State Deli v. Cincinnati Ins. Co. in dismissing its case.
January 03, 2024
Insurer Tells 5th Circuit Faulty Grain Silos Excluded From Coverage

NEW ORLEANS — A Texas federal judge was correct to grant summary judgment after finding that an insurer had no duty to indemnify a contractor in a farmers cooperative’s underlying suit alleging defective construction of grain silos because no “property damage” occurred under the terms of the contract, the insurer tells the Fifth Circuit U.S. Court of Appeals in an appellee brief.
January 03, 2024
Professional Liability Insurer Dismisses Fraudulent Wire Transfer Coverage Dispute

BURLINGTON, Vt. — A professional liability insurer entered a stipulation in Vermont federal court dismissing with prejudice its lawsuit disputing coverage for an underlying state court action seeking $459,411.77 from the insured for losses arising from a fraudulent wire transfer.
January 03, 2024
Exclusion Bids Regarding Claims, Outside Counsel Disputed In Reinsurance Row

LOS ANGELES — In California federal court filings, parties in a reinsurance billings suit over a variety of claims are disputing attempts by one defendant to exclude evidence regarding claims submitted to other reinsurers and opinions of outside counsel.
January 03, 2024
Company Seeks To Compel Insurers To Produce Documents In AFFF Litigation

CHARLESTON, S.C. — A company that makes firefighting products filed a motion on Jan. 2 in South Carolina federal court seeking to compel insurance companies to produce documents in a coverage dispute related to injuries from the firefighting substance aqueous film forming foam (AFFF) in the multidistrict litigation for AFFF, arguing that the insurers have refused to produce basic categories of documents that are directly related to the issues in dispute and are “plainly subject to discovery.” The company contends that the insurers’ objections to discovery requests are not valid, especially considering that the insurers are “seeking to escape up to $1 billion in coverage.”
January 02, 2024
Insurer Says Silica Exclusion Bars Coverage For Underlying Bodily Injury Suits

SANTA ANA, Calif. — No coverage is owed for underlying silica exposure bodily injury suits filed against an insured countertop manufacturer, supplier and distributor because the insured’s policies contain a silica exclusion that bars coverage for the underlying suit, an insurer says in a complaint filed in California federal court.
January 02, 2024
Exclusion, Partial Summary Judgment Bids Disputed In Microcaptive Insurance Suit

WEST PALM BEACH, Fla. — A tax attorney and the federal government have signaled agreement to resolve the attorney’s claim for disclosure of tax information even as they pursue summary judgment and expert exclusion motions in the case involving a penalty related to microcaptive insurance companies in a Florida federal court.
January 02, 2024
Alleging Unpaid Claims, Iowa-Based Insurers Sue Foreign Reinsurer

DES MOINES, Iowa — Asserting a breach of contract claim and a bad faith claim, two members of the GuideOne family of insurance companies sued a China-based reinsurer for what they allege are its refusals to pay some valid claims for reinsurance reimbursement.
December 18, 2023
Pollution Liability Insurer Says Environmental Damage Claim Is Barred From Coverage

TRENTON, N.J. — A premises pollution liability insurer says in a motion to dismiss filed in New Jersey federal court that its insured’s breach its contract and bad faith suit must be dismissed because the policy at issue clearly excludes coverage for the environmental contamination remediation costs incurred by the insured municipality.
December 06, 2023
N.J. Panel Affirms Dismissal Of Tory Burch LLC’s Coronavirus Coverage Dispute

TRENTON, N.J. — A New Jersey appeals panel on Dec. 6 affirmed a lower court’s grant of an insurer’s motion to dismiss Tory Burch LLC’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses arising from the COVID-19 pandemic, finding that New Jersey Gov. Phil Murphy’s executive orders issued in response to the virus did not physically deprive the insured from possessing its property.
December 15, 2023
Court ‘Wrongly Expanded’ Electronic Data Exclusion, Home Depot Tells 6th Circuit

CINCINNATI — Home Depot Inc. filed an appellant brief in the Sixth Circuit U.S. Court of Appeals challenging an Ohio federal court’s finding that a commercial general liability insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach, arguing that the lower court “wrongly expanded the narrow electronic-data exclusion beyond its natural meaning, based on assumed facts outside the record.”
December 13, 2023
Duke Sues Insurers In N.C. Court, Seeks D&O Coverage For Antitrust Settlement

RALEIGH, N.C. — Duke University filed suit in a North Carolina court seeking directors and officers liability coverage for its settlement of an underlying antitrust lawsuit, arguing that the primary insurer’s no-coverage position cannot be squared with its insurance “policy’s express antitrust coverage grant” and the absence of any exclusions for restitution or disgorgement.
December 12, 2023
Insurer Seeks Reconsideration Of Denial Of Dismissal In AFFF Coverage Action

CHARLESTON, S.C. — An insurance company has filed a reply brief in South Carolina federal court seeking reconsideration of an opinion and order denying its motion to dismiss a coverage dispute related to injuries from the firefighting substance aqueous film forming foam (AFFF) in the multidistrict litigation for AFFF, arguing that the court does not have jurisdiction over it because the insurer has no duty to defend under the policy at issue.
December 12, 2023
Dental Practice Incurred No Direct Physical Loss, Insurers Argue To Pa. High Court

PITTSBURGH — Insurers filed a reply brief in the Pennsylvania Supreme Court defending their appeal of a Pennsylvania Superior Court majority’s ruling that at the very least, it is reasonable to interpret the phrase “direct physical loss of . . . property” to encompass the loss of use of a dental practice’s property due to the spread of the coronavirus “absent any actual damage to property.”
December 12, 2023
Insurer Says It Owes No Duty To Defunct Company For Underlying Asbestos Suits

HOUSTON — An insurer claims in a complaint filed in Texas federal court that it has no duty to provide coverage for a now-defunct company named in underlying asbestos personal injury suits because the company was never insured under any policies issued by the insurer.