Property
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June 02, 2023
10 States Sue FEMA Over 'Equitable' Flood Insurance Hikes
Louisiana led nine other states in suing the U.S. government in federal court for its 2021 equitable overhaul of the National Flood Insurance Program, which the states say led to wrongful price increases of more than 1,000% for some despite the program's intention of being affordable and "more equitable."
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June 02, 2023
Kia And Hyundai Slapped With Another Car Theft Loss Suit
Another group of insurers has sued Kia and Hyundai in California federal court, alleging that the manufacturers' failure to install anti-theft machinery on millions of vehicles left insurers liable for losses when those vehicles were stolen or damaged.
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June 02, 2023
AIG Unit, Miami Condominium Settle $2M Irma Damage Row
An AIG unit and a Miami condominium association announced Friday they have reached a settlement resolving the condo's more than $2 million suit seeking excess coverage for Hurricane Irma damage.
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June 02, 2023
A Guide To The First Virus Coverage Suit Before Nev. Justices
On Monday, the Nevada Supreme Court will hear oral arguments in its first COVID-19 coverage appeal in a dispute between the owner of a Las Vegas mall and its insurer. Here, Law360 takes a look at what to expect during oral arguments.
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June 02, 2023
7th Circ. Affirms End Of Hospitals' $85M COVID Coverage Bid
A Wisconsin-based health care network cannot get full coverage for $85 million in losses it incurred responding to the COVID-19 pandemic, the Seventh Circuit ruled Friday, rejecting the network's argument that its policy's additional coverage section created ambiguity in a general coverage provision.
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June 02, 2023
No Fire Coverage For Vacant Building, Insurer Tells Court
A building owner isn't entitled to coverage after a fire damaged its structure, a Liberty Mutual unit told a Mississippi federal judge, citing a policy provision that excluded coverage for vacant buildings.
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June 02, 2023
Condo Board Had $20M For Storm Repairs, Owners' Suit Says
A putative class of condominium owners accused the board of directors of a Louisiana condominium building of asking them for additional funds to repair their condominium units despite having $20 million in insurance proceeds following 2021's Hurricane Ida.
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June 02, 2023
9th Circ. Rejects Ariz. Racetrack's COVID Coverage Appeal
The Ninth Circuit sided with an AIG unit in a COVID-19 pandemic coverage appeal from the owner of an Arizona horse racing track, finding the company's policy contained a contaminant exclusion that barred coverage for all claims related to viruses.
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June 02, 2023
Calif. Panel Upholds Auto Dealer's $7.5M Coverage Award
An auto dealership is entitled to more than $7.5 million from its insurer for a leased building that was destroyed in a fire, a California appeals panel said, finding a lower court correctly ruled the policyholder had an insurable interest in the property.
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June 01, 2023
New Orleans Saints Drop Hurricane Ida Coverage Suit
The NFL's New Orleans Saints dropped a lawsuit that accused the team's insurers of improperly denying coverage for the team's lost business income after Hurricane Ida forced it to relocate its 2021 home opener.
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June 01, 2023
Attys Seek $13.4M Fee Award In Academy Mortgage FCA Suit
Attorneys representing a whistleblower have asked a California judge to award $13.4 million in fees after reaching a $38.5 million deal with Academy Mortgage to resolve a False Claims Act case.
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June 01, 2023
Fla. Enacts Property Insurance Overhaul For Policyholders
Florida overhauled its property insurance laws, bolstering policyholder protections and imposing greater oversight including increased potential penalties for carrier misdeeds in the state, under a new law to take effect in July.
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June 01, 2023
Physical Therapy Biz, Insurer Settle Spat Over Snow Damage
The owner of a physical therapy business told a Montana federal court that he has settled his coverage dispute with State Farm relating to snow damage to his business' building.
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June 01, 2023
CoreLogic Says 33M US Homes Face Some Hurricane Risk
Property information company CoreLogic said 33 million U.S. homes have at least a moderate risk of damage from hurricane-force winds, in a report that marks the start of the Atlantic hurricane season on Thursday.
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May 31, 2023
Hotel Coverage Didn't Transfer To New Owner, 9th Circ. Rules
Water damage claims from the buyer of a Red Roof Inn were properly denied after the buyer wasn't assigned the seller's insurance rights, the Ninth Circuit said Wednesday, concluding that a California federal judge correctly found that the buyer lacks standing to sue.
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May 31, 2023
Hurricane Damage Appraisal Order Unappealable To 11th Circ.
An Eleventh Circuit panel on Wednesday dismissed an insurer's appeal in a dispute over Hurricane Irma damage to a condo, ruling a Florida federal court's appraisal order was not appealable under the Federal Arbitration Act or U.S. Code.
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May 31, 2023
Eatery's Virus Loss Args No Secret Recipe, Calif. Panel Says
A California appellate panel on Tuesday affirmed a taco stand's lower court loss against its insurance company over COVID-19 coverage, rejecting the argument that the case differs from the "dozens" that came before it and saying it failed to properly allege a direct physical loss or damage to its property.
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May 31, 2023
HVAC Co. Owes $2.9M For Defective Heater Fire, Insurer Says
Travelers Property Casualty Co. of America told a New York federal court Wednesday that manufacturer Friedrich Air Conditioning LLC and one of its parts suppliers owe the insurer more than $2.9 million for fire damage caused by a defective heating unit.
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May 31, 2023
Insurers' Fraud Claims Against Chicken Plant Headed To Trial
The owners of a North Carolina chicken plant that burned down were denied an early win on insurers' counterclaims for unjust enrichment and fraud, with a state business court judge ruling that those allegations were better left for a jury to decide.
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May 31, 2023
Murdaugh's Atty Hints At Guilty Plea In Federal Fraud Case
Disgraced former South Carolina personal injury lawyer Alex Murdaugh pled not guilty Wednesday in federal court to charges that he ripped off clients, but his lawyer suggested a guilty plea from the convicted murderer may be on the horizon.
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May 31, 2023
Zurich Says Old Plane Parts Aren't Physical Loss From Virus
Zurich American Insurance Co. asked an Illinois federal court to toss an aviation parts supplier's lawsuit for up to $30 million in coverage for expired items it couldn't access during the COVID-19 pandemic, arguing the company didn't show any covered loss under its policy.
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May 31, 2023
Texas Law Doesn't Apply To La. Hurricane Claims, Firm Says
A Texas law firm and two of its partners have urged a federal court to throw out class claims alleging they violated Texas barratry law via a purported scheme to solicit Louisiana storm victims as clients, arguing that the law cannot be applied beyond the Lone Star State's borders and that the claims against them are too vague to stand.
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May 30, 2023
Nationwide Can Seek $2M For 'Starry Night' Fire Fraud
A California appeals court affirmed Nationwide is entitled to a civil judgment of over $2 million against a couple who lied after a house fire, saying the painting "Starry Night" by Vincent van Gogh was among burned items they owned for which they sought coverage.
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May 30, 2023
Insurers, Cold Storage Co. Settle $12M Warehouse Fire Suit
CNA Insurance and Massachusetts-based Arbella Insurance Group have settled their warehouse fire coverage suit against a cold storage contractor, bringing an end to their bid to recover more than $12 million in coverage payouts.
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May 30, 2023
Panelists Urge Carriers To Avoid 'Reverse Bad Faith' Claims
Insurers locked in a coverage fight with a policyholder should refrain from asserting a "reverse bad faith" claim, a panel of attorneys said in a webinar Tuesday, explaining that a vast majority of courts do not recognize it as a viable cause of action.

State Farm Calif. Exit Could Hurt Market, Last Resort Insurer
State Farm's decision to suspend property insurance sales in California could decrease competition in the homeowners insurance market while straining a last resort coverage option for homeowners and businesses unable to buy traditional insurance, experts say.

Chocolatier Asks 2nd Circ. For New Trial On Sandy Coverage
A candymaker told the Second Circuit on Wednesday that it should get a new trial on whether its insurer wrongfully denied full coverage for $53 million in damages caused by Superstorm Sandy, arguing evidence presented by the carrier did not clarify policy ambiguities.

9th Circ. To Consider Hidden Rain Damage For First Time
Insurers disclaimed a Washington condominium from all angles, like the wind-driven rain for which the owners sought coverage in an appeal called the first to reach the Ninth Circuit concerning hidden water damage, a matter ubiquitous in the state.
Expert Analysis
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How Fla. Tort Reform Will Shift Construction Defect Suits
Recent modifications to Florida's private statutory action rules for building code violations and to the statute of limitations and repose for defect claims significantly clarify ambiguity that had existed under previous rules, and both claimants and defendants should consider new legal arguments that may become possible, say Ryan Soohoo and George Truitt at Cole Scott.
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PFAS Coverage Litigation Strategy Lessons For Policyholders
While policyholders' efforts to recover insurance proceeds for PFAS-related costs are in the early stages, it appears from litigation so far that substantial coverage should be available for PFAS-related liabilities, including both defense costs and indemnity payments in connection with those liabilities, say Benedict Lenhart and Alexis Dyschkant at Covington.
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Climate Reporting Regs Mean New Risks To Insure
As regulators in the U.S., U.K. and beyond implement new climate-related investment and disclosure requirements for corporations, decision makers should investigate whether their insurance policies offer the right coverage to respond to the legal and regulatory risks of this increased scrutiny, says David Cummings at Reed Smith.
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Unpacking NY's Revamped Wrongful Death Bill
Legislation to amend New York’s wrongful death law, introduced May 2, proposes more limited reforms than an earlier version the governor vetoed in January, but will likely still face strong opposition due to the severe financial impacts it would have on insurers’ set premiums and reserves, say Eric Andrew and David Adams at Hurwitz Fine.
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NY Ruling Highlights Need For Specific Insurance Disclaimers
New York coverage counsel responsible for writing disclaimer letters should heed a recent appellate decision, Bahnuk v. Countryway Insurance, in which the letter sent to the plaintiff was deemed to be insufficiently specific, leaving the insurance company on the hook for coverage, says Dan Kohane at Hurwitz Fine.
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5 Tips For Filing Gov't Notices After Insurance Producer M&A
As insurance producer acquisition activity picks up in 2023, requiring a daunting process of notifying information changes to each Department of Insurance where the entity is licensed, certain best practices will help buyers alleviate frustration and avoid administrative actions and fines, say attorneys at Foley & Lardner.
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Policyholder Lessons From Sandy No-Coverage Decision
A New York federal court recently decided that in the aftermath of Hurricane Sandy, Madelaine Chocolate knew Great Northern Insurance’s all-risk policy offered no coverage for storm surge — an important reminder that policyholders should review policy language for ambiguities or anti-concurrent causation clauses, say Dennis Artese and Joshua Zelen at Anderson Kill.
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Insureds' Notice Pleading May Be Insufficient In Federal Court
A recent New Jersey federal court ruling in Bauman v. Hanover Insurance held that bare-bones notice pleading was insufficient and dismissed the policyholder's coverage complaint, a reminder that courts may require more than an expression of general disagreement with an insurance company's denial letter to proceed with the case, says Eugene Killian at The Killian Firm.
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5th Circ. Offers Expert Opinion Guidance For Insurance Cases
A recent Fifth Circuit decision in Majestic Oil v. Lloyd's of London provides insight into how Texas' concurrent causation doctrine could affect insurance cases where the cause of damage is at issue, and raises considerations for litigants faced with new or revised expert reports after the deadline has passed, say Brian Scarbrough and Cianan Lesley at Jenner & Block.
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A Look At Florida's Aggressively Pro-Insurer Tort Reform
Florida's new tort reform law is an unwarranted gift to insurance companies that seeks to strip policyholders of key rights while doing little to curb excessive litigation, say Garrett Nemeroff and Hugh Lumpkin at Reed Smith.
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Navigating High Court's Options In Insurer Choice Of Law
Depending on how the U.S. Supreme Court approaches the question of when insurers may invoke choice-of-law clauses in maritime contracts to dodge state-specific liability, the Great Lakes v. Raiders Retreat Realty decision may mean significant changes not only for admiralty law disputes, but for the insurance industry more broadly, say Lara Cassidy and Adriana Perez at Hunton.
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How Cannabis Cos. Can Comply With NJ Industrial Site Law
As New Jersey’s recreational cannabis market flourishes, manufacturers that may be subject to a state environmental law must take extra precautions to mitigate potential liabilities and costs, including for historical contamination, says Matthew Karmel at Offit Kurman.
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As EVs Surge, Regs For Charger Warranties Remain Murky
Even as electric vehicles move rapidly into the mainstream, extended warranties for EV chargers do not always fit clearly into existing regulatory categories — but how such contracts are classified can have serious implications for the companies that issue and sell them, say attorneys at Locke Lord.