Mealey's Insurance Pleadings

  • May 22, 2024

    2 More Insurers Dismissed In Viacom’s D&O Coverage Dispute In Delaware Court

    WILMINTON, Del. — Viacom Inc. and two more of its insurers stipulated and agreed to dismiss with prejudice the claims against the insurers in Viacom’s lawsuit seeking directors and officers liability coverage for underlying claims that its directors, officers and controlling shareholders breached their fiduciary duties in connection with a 2019 merger with CBS Corp.

  • May 17, 2024

    Burger King Franchisee Seeks Summary Judgment In BIPA Violations Coverage Suit

    CHICAGO — A franchisee of the Burger King chain moved for summary judgment in its breach of contract lawsuit asking an Illinois federal judge to declare that an excess insurer has a duty to defend it against an underlying putative class lawsuit alleging that it violated the Illinois Biometric Information Protection Act (BIPA).

  • May 17, 2024

    Pollution Exclusion Bars Coverage For Carbon Monoxide, Insurer Tells 8th Circuit

    ST. LOUIS — A pollution exclusion clearly bars coverage for an underlying bodily injury claim stemming from carbon monoxide exposure because carbon monoxide qualifies as a contaminant or irritant under the pollution exclusion, an insurer says, noting in its May 16 appellee brief filed in the Eighth Circuit U.S. Court of Appeals that its interpretation of the pollution exclusion is consistent with North Dakota law.

  • May 16, 2024

    Contractor Says 7th Circuit Opinion Conflicts With Illinois Insurance Law

    CHICAGO — A general contractor petitioned the Seventh Circuit U.S. Court of Appeals for en banc rehearing, arguing that a recent opinion in which a panel found that the contractor was not owed a defense or indemnification because defective welding it performed at O’Hare International was not “property damage” under the terms of insurance policies cannot be squared away with “well settled Illinois law requiring insurers to defend policyholders unless the underlying facts pled preclude any possibility of coverage.”

  • May 16, 2024

    Guaranty Association Says It Reached Settlement With Homeowner Over Unpaid Claim

    FORT MYERS, Fla. — The Florida Insurance Guaranty Association (FIGA) notified a Florida state court that it reached a settlement in a suit filed against it by a homeowner seeking indemnification for an unpaid claim for home damage after her insurer was ordered into liquidation.

  • May 15, 2024

    On Appeal, Parties Argue Property Interest In ACA Reinsurance Takings Case

    WASHINGTON, D.C. — Arguing primarily that the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA) “did not implicate a cognizable property interest,” the government filed an appellee brief urging the Federal Circuit U.S. Court of Appeals to affirm rulings against two self-insured group health plan trusts.

  • May 14, 2024

    Multifamily Housing Lessor Seeks Coverage For Antitrust Conspiracy Claims In MDL

    DENVER — A multifamily housing lessor insured sued its primary and excess data protection liability insurers in a Colorado federal court for breach of contract and bad faith, seeking coverage for an underlying multidistrict litigation alleging that it was involved in an antitrust conspiracy when it used a revenue management software to artificially inflate multifamily housing rents above market across the country.

  • May 14, 2024

    4 Entities Hurt By Vesttoo Collapse Sue China Construction Bank, Others For Fraud

    NEW YORK — Asserting that they were some of the “biggest victims” of the alleged fraud underlying the collapse of Vesttoo Ltd., entities including Porch Group Inc. and Homeowners of America Insurance Co. (HOA) sued China Construction Bank Corp. (CCBC) and related parties in a New York federal court for fraud and negligent supervision and retention.

  • May 14, 2024

    Insureds Take No Position On Motion For Interlocutory Appeal In Contamination Suit

    EAST ST. LOUIS, Ill. — Insureds embroiled in an environmental contamination coverage dispute responded to their insurers’ motion to certify an Illinois federal judge’s choice-of-law ruling for interlocutory appeal to the Seventh Circuit U.S. Court of Appeals, noting that while they disagree with the insurers’ factual and legal analysis in the motion to certify, they understand the insurers’ desire to have the issue reviewed and take no position on the motion for leave to file an interlocutory appeal.

  • May 13, 2024

    Appellant Seeks Rehearing Of No Coverage Ruling In Dispute Over Gold Treasure

    SEATTLE — An appellant on May 10 asked the Ninth Circuit U.S. Court of Appeals to rehear its April 26 opinion that affirmed a lower federal court’s summary judgment ruling in favor of an ocean marine general liability insurer in a 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.

  • May 13, 2024

    Insured Opposes Interlocutory Appeal, Says No Controlling Question Of Law Exists

    NEW YORK — An insured says a commercial lines insurer’s motion for interlocutory appeal of a New York federal judge’s ruling to the Second Circuit U.S. Court of Appeals should be denied because no controlling question of law exists regarding whether a policy’s communicable disease exclusion applies as a bar to coverage for three underlying lawsuits alleging that residents of the insured properties contracted Legionnaires’ disease.

  • May 13, 2024

    Citing Jury Verdict, Plaintiffs Seek Attorney Fees From U.S. In Microcaptive Row

    FORT MYERS, Fla. — Following a Florida federal jury ruling against the government in consolidated cases over whether the plaintiffs’ involvement with purported microcaptive insurance companies constituted promotion of abusive tax shelters, the corporate plaintiffs are seeking approximately $600,000 in attorney fees and costs, and the government is countering in part that its position was “substantially justified.”

  • May 13, 2024

    Parties Brief Summary Judgment Arguments On Reinsurance Loss Allocation

    MONTGOMERY, Ala. — In renewed briefing, parties in a suit over multiple reinsurance disputes make summary judgment arguments on a single breach of contract claim, with the reinsurer arguing that the loss for the lawsuit at issue “was properly ceded to the two impacted Treaties” and the insurer contending that the policy requires the two events at issue in the lawsuit “to be treated as one Wrongful Act.”

  • May 10, 2024

    Pharmacy Distributor Appeals No Coverage Ruling In Suit Prompted By Opioid Epidemic

    VALDOSTA, Ga. — A pharmacy distributor insured indicated to a Georgia federal court that it is asking the 11th Circuit U.S. Court of Appeals to review the court’s grant of summary judgment in favor of its commercial general liability and umbrella insurers in a coverage dispute arising from the opioid epidemic.

  • May 10, 2024

    Attorney Says Termination Of Disability Benefits Was Arbitrary, Capricious

    PHILADELPHIA — A disability insurer acted arbitrarily and capriciously when it terminated an attorney’s long-term disability (LTD) benefits because the insurer failed to consider the actual duties of the claimant’s occupation when it determined that the claimant was no longer disabled from her own occupation as an attorney, the attorney says in a complaint filed in Pennsylvania federal court.

  • May 10, 2024

    Defendants Renew Dismissal Arguments In Workers’ Comp Reimbursement Dispute

    MONTGOMERY, Ala. — After an Alabama federal judge allowed the plaintiff to file an amended complaint in a dispute over reimbursement for workers’ compensation claims, the defendants started a new round of dismissal briefing regarding breach of contract, bad faith, laches and equitable estoppel claims.

  • May 08, 2024

    Timeliness, Other Issues Raised Over Motion For Final Judgment, Certification

    SPRINGFIELD, Ill. — Arguing in part that “if an interlocutory appeal were to be sought, it should have been sought in 2022,” a reinsurer urged an Illinois federal court to deny a motion in which a railroad company seeks “two alternative grounds for appellate jurisdiction” in a suit over mine subsidence claims.

  • May 08, 2024

    Insurers Say Coverage Barred In AFFF PFAS Cases Because Harm Arises Out Of ‘Waste’

    CHARLESTON, S.C. — A group of insurers has filed a sur-reply brief in South Carolina federal court arguing that the majority of lawsuits against a maker of the firefighting agent known as aqueous film forming foam (AFFF), for which the insurers are being asked to provide coverage, allege harm arising out of “waste,” rather than harm associated with a product put to its intended use, and, therefore, coverage is not owed.

  • May 07, 2024

    Claimant Files Complaint, Says LTD Benefits Owed For Long COVID Diagnosis

    PHOENIX — A denial of long-term disability (LTD) benefits was arbitrary and capricious and an abuse of discretion because the disability insurer failed to properly consider the restrictions and limitations set by the claimant’s treating physicians as a result of the claimant’s diagnosis with long COVID, the claimant contends in a complaint filed in Arizona federal court.

  • May 07, 2024

    Pollution Exclusion Bars Coverage For Dust Emissions Suit, Insurer Says

    BROWNSVILLE, Texas — No coverage is owed to an insured for an underlying lawsuit stemming from dust emissions from the insured’s facility because the policy’s pollution exclusion bars coverage for the lawsuit, an insurer maintains in a complaint filed in Texas federal court.

  • May 06, 2024

    Freddie Mac Dismisses Lead Insurer From D&O Coverage Dispute Over SEC Subpoena

    WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) and its lead insurer on May 3 filed a joint stipulation asking a District of Columbia federal court to dismiss the insurer from Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.

  • May 06, 2024

    Insurer, HOA File Notice Of Tentative Settlement In Dispute Over Constructed Homes

    JACKSONVILLE, Fla. — An insurer and a homeowners’ association filed a notice in a Florida federal court indicating that they intend to file a joint stipulation of dismissal of their construction insurance dispute, wherein the insurer sought a declaration that it owed no indemnification to a subcontractor that worked on homes operated by the HOA, due to a tentative settlement in an underlying lawsuit.

  • May 06, 2024

    Question Of Law Exists On Communicable Disease Exclusion, Insurer Says

    NEW YORK — A commercial lines insurer filed a motion for interlocutory appeal to the Second Circuit U.S. Court of Appeals, arguing that a question of law exists as to whether a policy’s communicable disease exclusion applies as a bar to coverage for three underlying lawsuits alleging that residents of the insured properties contracted Legionnaires’ disease.

  • May 06, 2024

    Interlocutory Appeal Sought On Choice-Of-Law Ruling In Contamination Coverage Suit

    EAST ST. LOUIS, Ill. — Insurers filed a motion to certify an Illinois federal judge’s choice-of-law ruling for interlocutory appeal to the Seventh Circuit U.S. Court of Appeals, contending that an interlocutory appeal will advance the environmental contamination coverage suit toward resolution.

  • May 06, 2024

    Insured Files Notice Of Appeal To 7th Circuit In Radiation Exposure Coverage Suit

    MILWAUKEE — An insured filed a notice of appeal to the Seventh Circuit U.S. Court of Appeals, seeking review of a Wisconsin federal judge’s ruling that breach of contract and bad faith claims cannot proceed against two commercial general liability insurers because coverage is barred pursuant to the policies’ radioactive materials exclusion for an underlying suit seeking damages for bodily injuries caused by exposure to electromagnetic (EMF) radiation from the insured’s electric transformers.