General Liability
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December 15, 2022
Insurer Urges 9th Circ. To Extinguish Fire Loss Coverage Fight
Hanover American Insurance Co. urged the Ninth Circuit to toss a tank trailer company's bid for coverage of a fire at a tank wash center in Montana, noting that it did not even know of the center's existence when it had underwritten the general liability policy at issue.
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December 15, 2022
FICO's Product Disparagement Row Not Covered, Court Says
Underwriters at Lloyd's of London have no duty to defend FICO against consolidated class actions accusing the credit score-modeling company of product disparagement, a Minnesota federal court ruled, finding that antitrust and consumer protection law exclusions apply.
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December 14, 2022
Mich. Panel Hears Latest Challenge On Auto Policy Overhaul
A Michigan state appeals court judge on Wednesday said changes to the state's no-fault insurance law in 2019 created a host of issues in the courts, including whether the amendment applied only to new policies or existing ones when the amendment was passed.
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December 14, 2022
Target's Trademark Damages Not Covered, Insurer Says
Target's damages from a trademark infringement suit with a women's fashion company were not compensatory and are clearly excluded from coverage as improper financial gain, an insurer told a Minnesota federal court.
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December 14, 2022
Condiment Co. Says Exclusions Don't Bar BIPA Suit Coverage
None of the exclusions cited by a condiment manufacturer's insurer bar coverage of an underlying lawsuit against the manufacturer accusing it of violating Illinois' Biometric Information Privacy Act, the manufacturer told an Illinois federal court.
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December 14, 2022
Travelers Needn't Cover Wood Treatment Injury Settlement
A South Carolina federal judge relieved The Travelers Indemnity Co. of covering a $150,000 settlement in a personal injury suit brought against a wood preserving company, but ruled that the insurer did have defense obligations and could be responsible for reimbursement of some fees and costs.
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December 14, 2022
4th Circ. Says Insurers Did Not Adequately Reserve Rights
The Fourth Circuit affirmed a South Carolina homeowners association's win in a lawsuit seeking coverage for $2 million in damages from a construction company's insurers, finding that the carriers' reservation of rights letters do not provide a sufficient basis for their denials of coverage.
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December 13, 2022
9th Circ. Won't Revive Contractor Insurer's Fraud Suit
The Ninth Circuit declined Tuesday to revive a Hartford unit's nearly $1 million fraudulent checks suit against California Bank & Trust on behalf of a contractor, ruling that the bank had no obligation to ensure the endorsements were legitimate.
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December 13, 2022
Coverage Fight Over Montana Canal Breach Headed To Trial
A Montana federal judge denied competing motions for summary judgment from Ohio Security Insurance Co. and a canal operator, ruling that the company's liability for a breach and subsequent flood will be determined at trial.
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December 13, 2022
Wash. Panel Upholds Allstate Win In Condo Coverage Suit
A Washington state appeals court affirmed Allstate Insurance Co.'s win in a coverage dispute over damages to a condominium complex building, agreeing with a trial court that the damages resulted from faulty construction and aren't covered under an owners association's all-risk commercial property policy.
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December 13, 2022
11th Circ. Overturns Ruling In Life Insurance Validity Row
A life insurance policy issued to an HIV-positive man who later sold it to an investor is not void under Georgia law as an illegal human-life-wagering contract, the Eleventh Circuit said in a published opinion, following recent guidance from the Peach State's highest court.
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December 13, 2022
NJ Justices Clarify Insurance Brokers' Duty To Inform
An insurance broker has to tell members of a limited liability corporation if they are not covered for workers' compensation, but isn't liable for damages unless his failure to inform arose from "willful, wanton, or grossly negligent" misconduct, the New Jersey Supreme Court ruled Tuesday.
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December 13, 2022
11th Circ. Doubts Ex-Ga. Insurance Chief's Jury Charge Claim
An Eleventh Circuit panel appeared to support a jury's instructions in the federal government's $2 million embezzlement case against Georgia's former insurance commissioner, pushing back against his argument Tuesday that his conviction should be wiped.
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December 12, 2022
RI High Court Upholds Travelers' Win In Bias Coverage Fight
The Rhode Island Supreme Court affirmed the majority of an insurer's win in a coverage dispute over its duty to defend a medical center accused of discrimination, but also ruled that the trial court prematurely decided the issue of whether the insurer acted in bad faith.
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December 12, 2022
Tokio Marine Unit Wants $24M From Texas Oil Drilling Co.
An energy- and aviation-focused unit of insurance giant Tokio Marine Holdings Inc. asked a Texas federal judge to order the operator of an oil company to post more than $24 million in collateral security and pay past-due bond premiums to live up to an indemnity agreement.
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December 12, 2022
Colo. Justices To Mull Prejudice Rule In Hail Coverage Dispute
The Colorado Supreme Court agreed Monday to review whether the state's notice-prejudice rule should apply to a Liberty Mutual policyholder's suit for coverage of hail damage if the insurer is unable to show that it suffered any adverse effects from untimely notice.
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December 12, 2022
Insurer Owes Defense In Fireworks Injury Suit, Court Told
A woman who said her child was injured by defective fireworks sold by a self-storage business asked a Florida federal court for a quick win in her coverage fight with a Liberty Mutual unit that insured the company, saying the seller's liability falls within the coverage afforded by its policy.
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December 12, 2022
Insurer Abandons Bid To Rescind Navy Subcontractor's Policy
An insurer agreed to drop claims seeking rescission of a policy it issued to a construction company in a coverage dispute over allegedly shoddy work on a U.S. Navy school, the insurer told a Virginia federal court, but other claims remain in play.
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December 09, 2022
Jury Clears Excess Insurer After Multimillion-Dollar Verdict
A Texas federal jury on Friday evening said an excess insurer didn't have to pay back its primary insurer after the primary was hit with a multimillion-dollar judgment.
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December 09, 2022
The Biggest Environmental Insurance Stories In 2022
Hurricane Ian's destruction in Florida was the biggest property insurance story in another year characterized by efforts to adapt to a changing climate, including flood insurance reform and shareholder actions against some of the largest insurers.
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December 09, 2022
4th Circ. Affirms Win For Insurers In Hot Air Balloon Accident
A Fourth Circuit panel affirmed a district court decision limiting insurance claims to $100,000 for two passengers who were injured in a hot air balloon accident, agreeing with the insurer's argument that their status as "passengers" limited the monetary recovery they were entitled to.
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December 09, 2022
Nev. Justices Nix Travelers' Suit Over $160M Resort Verdict
A Travelers unit cannot pursue a bad faith claim over allegations that a fellow excess insurer botched the settlement of a personal injury action against the owner of Las Vegas' Cosmopolitan luxury resort that later resulted in a $160.5 million verdict, the Nevada Supreme Court ruled.
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December 09, 2022
NY Panel Says Insurer Can't Prove Intent In High School Fight
An insurer can't rely on an intentional acts exclusion in a coverage dispute over injuries a high school security monitor said she suffered while breaking up a fight between students, a New York state appeals court said, noting the staffer never alleged that the student meant to hit her.
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December 09, 2022
Horse-Drawn Buggy Is Not A Car, Del. Judge Rules
A Delaware woman cannot get uninsured motorist coverage from State Farm after her collision with a horse-drawn buggy, a state court ruled, finding that such a buggy falls outside the definition of "uninsured motor vehicle" in the policy.
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December 08, 2022
5th Circ. Mulls Formaldehyde Exposure Coverage Suit Revival
A timberland company took a shot at reviving a dispute over coverage for formaldehyde exposure suits, telling a reserved Fifth Circuit panel during oral arguments Thursday that a Louisiana federal court erred in dismissing the action based solely on a misnomer in the underlying complaints.
Expert Analysis
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Default Dates Of 1st Exposure Can Lead To Conflict
Troubling issues can arise when an umbrella or excess insurer refuses to accept claims of primary policy exhaustion because allocation of loss is based on a default date of first exposure. A Connecticut appellate court's decision in Vanderbilt v. Hartford earlier this year shows how practicality and fairness weigh into resolution of DOFE coverage issues, say Jim Dorion of Willies Towers Watson PLC and Stephen Hoke of Hoke LLC.
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What I Learned In My 1st Year: Listen Carefully, Speak Up
When I graduated from law school, I landed at an old-line firm in the Golden Triangle of Texas. Two significant things happened to me around that time. One pertained to learning to listen, and the other pertained to refusing to participate in what I heard, says Marcy Rothman of Kane Russell Coleman Logan PC.
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Chilling Litigation Tourism In Illinois 'Judicial Hellholes'
Corporations may welcome the Illinois Supreme Court's opinion in Aspen American Insurance v. Interstate Warehousing. A few of the Illinois counties affected by the ruling tied for sixth place on the American Tort Reform Foundation’s 2016-17 list of the nation’s “Judicial Hellholes,” say Blake Angelino and Doug Prochnow of Faegre Baker Daniels LLP.
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ALI Draft Restatement Misstates Key Insurance Law Issues
Significant inaccuracies and bias remain in the American Law Institute's latest draft of its Restatement of the Law, Liability Insurance, released last month. Hopefully, additional feedback and dialogue will lead the “reporters” to produce a product that more accurately restates the law of liability insurance, says Scott Seaman of Hinshaw & Culbertson LLP.
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Courts Focus On Insurance Policy Language, Not Case Law
A Pennsylvania appeals court's decision in Century v. OneBeacon this month found that OneBeacon owed reinsurance coverage to two insurers for asbestos claims. This decision is the latest in a line of rulings that examines each contract based on its unique terms and rejects reinsurers' prior case law arguments, say attorneys with Hunton & Williams LLP.
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The Environmental Impact Of Hurricanes: From Sandy To Irma
Five years ago, John Nevius of Anderson Kill PC wrote a Law360 article addressing the risks that followed in the wake of Hurricane Sandy. Today, those tasked with assessing and mitigating the enormous destruction wrought by Harvey and Irma will benefit from the late Nevius' analysis, which his colleague Robert Horkovich discusses in this update.
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4 Ways Law Firms Can Help Battle Addiction
With more than a third of lawyers showing signs of problem drinking, and untold others abusing prescription drugs and other substances, it is time for law firms to be more proactive in addressing this issue, says Link Christin, executive director of the Legal Professionals Program at Caron Treatment Centers.
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Opioid Litigation: What's On The Horizon
As prescriptions for pain-suppressing opioids have soared, some have speculated that litigation will follow. Such litigation could take various forms, including personal injury lawsuits making design defect and/or failure-to-warn claims, consumer fraud actions, and more. Manufacturers and retailers should take steps now to protect themselves, say authors from Innovative Science Solutions and Locke Lord LLP.
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The Use Of Special Masters In Complex Cases
Special master appointments can be very beneficial in resolving disputes quickly, streamlining discovery, handling delicate settlement negotiations, and — somewhat surprisingly — reducing cost and delay, says retired U.S. District Judge Shira Scheindlin, now with JAMS.
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Senate Bill May Force Rise In Suits For Opioid Funding
As the Senate seeks to reduce funding and services for opioid addiction, states and governments seeking new sources of funding may have increased incentive to sue manufacturers and distributors of prescription opioids. An increase in suits may shift the financial burden of the opioid crises to the pharmaceutical defendants and their liability insurers, say Adam Fleischer and Patrick Bedell of BatesCarey LLP.
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The Evolution Of Opioid Suits And Insurance Coverage
In the midst of the worst drug crisis in American history, two key developments this month may have far-reaching impacts on both the underlying liability claims as well as the insurers to whom the defendants are looking to finance hundreds of millions of dollars in exposure, says Adam Fleischer of BatesCarey LLP.
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Why Plaintiffs Bar Should Worry About Asbestos Suits
Asbestos-related cases have come to be known as the longest-running mass tort litigation ever, and they have collected a number of potential problems over time. Diminishment of trust funds for victims, loss of insurance coverage for asbestos defendants and long court backlogs are all potential issues attorneys must confront and discuss with their asbestos plaintiffs, says Gregory Cade of Environmental Litigation Group PC.
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Defining An Occurrence For Sexual Abuse Cases
In Diocese v. Duluth, the Bankruptcy Court for the District Court of Minnesota ruled last month that each instance of sexual abuse counted as a separate trigger of insurance coverage. This decision clashes with a recent decision made by a Pennsylvania court, indicating that courts across the country will continue to grapple with trigger and number of occurrence issues related to sexual abuse, says Katharine Thompson of Gordon Rees Scully Mansukhani LLP.