Specialty Lines
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May 12, 2023
Insurers Sue Marine Shipper To Recoup Cost Of Ruined Pasta
Travelers and AIG joined Trader Joe's on Friday in suing a marine shipping company to recoup losses connected to a shipment of frozen pasta that was damaged as a result of the shipper's inadequate temperature controls, the suit alleged.
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May 12, 2023
Tile Co., Insurer Get Time To Settle Labor Suit Coverage Spat
A California federal court gave a tile company and its insurer more time to settle a proposed class action over how language found in a policy is used in regard to a wage and hour exclusion.
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May 12, 2023
Title Insurer Can't Escape Property Owner's Coverage Suit
A Virginia federal judge refused to toss a property owner's suit accusing Fidelity National Title Insurance of improperly denying coverage for a sale, ruling that Fidelity's motion was improper because a joinder of the property's homeowners association was unnecessary.
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May 11, 2023
Insurer Says Texas Hotels Not Covered In Sex Trafficking Suit
Extended-stay apartment chain Budget Suites Inc. and a franchisee have no defense against litigation accusing them of helping sex traffickers force a 14-year-old Jane Doe to service men for money at a Dallas hotel, according to a suit lodged by their insurer in Texas federal court.
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May 11, 2023
Fla. Church's $1.2M Wire Fraud Case Moved To Federal Court
An insurer moved a Gulf Coast island church's state court complaint seeking at least $600,000 in connection with wire fraud to Florida federal court on Thursday.
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May 11, 2023
Practice Says It's Owed $750K In COVID Test Reimbursements
A medical office in Connecticut is suing a health plan administrator it says was supposed to provide a reimbursement upward of $750,000 to cover COVID-19 testing provided by the office during the pandemic.
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May 11, 2023
Medical Cos. Cheated Liberty Mutual Out Of $140K, Court Told
Two medical supply companies made hundreds of fraudulent claims for unnecessary medical equipment and bilked Liberty Mutual out of nearly $140,000 through a long scheme beginning in 2019, the insurer told a New York federal court.
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May 11, 2023
Insurer Seeks To Avoid Real Estate Atty's Hacking Losses
National Liability & Fire Insurance Co. has taken to Connecticut state court to avoid paying for a real estate attorney's May and June 2022 hacking incident, arguing that the losses arose from data security issues and not from the provision of legal services.
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May 11, 2023
Stable Belongs In Horse Death Coverage Suit, Court Rules
An insurer who issued a mortality policy for a stallion owner whose horse died after being given an illegal vitamin cocktail can add a stable it also insured as a counterdefendant to its counterclaim against the horse owner, a Kentucky federal judge ruled.
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May 11, 2023
Insurer Wins Atty DQ Bid In Amber Heard Coverage Row
A California federal judge has tentatively agreed to grant New York Marine and General Insurance Co.'s bid to disqualify Maynard Nexsen from representing Travelers as the two insurers continue to duke it out over coverage of actress Amber Heard in a defamation suit brought by her ex-husband, Johnny Depp, determining the move was not "tactical."
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May 11, 2023
Developer Seeks $2.7M For Atty Fees In Coverage Win
A condo developer that won coverage of its costs stemming from a construction defect told a Colorado federal court that it is entitled to a $2.7 million award to recoup attorney fees it incurred through trial.
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May 10, 2023
Swiss Re Says Contractors Owe Over $6M In Bond Payments
A Swiss Re unit sued a contractor, a land developer and a leasing company in Washington federal court, alleging that the defendants have not paid out more than $6 million in bond payments related to three military construction projects.
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May 10, 2023
Towers Watson Reversal Bolsters Bump-Up Exclusions
Insurance companies litigating the scope of the "bump-up" exclusion in directors and officers policies received another boost with the Fourth Circuit's reversal of a decision forcing insurers for Towers Watson to cover settlements of shareholder suits stemming from the company's merger with Willis.
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May 10, 2023
Insurer Can't Duck Bail Money Coverage Suit, Court Told
A shrimp company told a Texas federal court that its insurer cannot duck its bid for coverage of losses it says it incurred when an attorney misappropriated bail money meant for the company's founder, saying the insurer failed to prove that an employee theft had not occurred.
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May 10, 2023
Wash. Judge Asks If Teen's Residential Stay Was Medical Must
A Washington federal judge sympathized Wednesday with parents seeking to force Amazon and Premera Blue Cross to pay for their teenage son's mental health and addiction treatment at a residential facility they believed was necessary, but signaled the companies might not have broken any laws in denying coverage.
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May 10, 2023
Firm's Coverage Fight Over Stolen $530K Tossed
Hanover Insurance Co. has no coverage obligations to a Brooklyn law firm that had been accused of failing to prevent fraudsters from stealing over $500,000 in a real estate transaction, a New York federal court ruled Wednesday, finding an exclusion barring coverage for the misappropriation of funds was applicable.
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May 10, 2023
5th Circ. Affirms Water Co.'s Coverage Win Over Land Deal
Allied World Specialty Insurance Co. breached its duty to defend a Texas water supplier and certain current and former board members accused of heavily discounting a parcel of land and selling it to another board member, the Fifth Circuit affirmed, finding a contractual liability exclusion in the supplier's policy was inapplicable.
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May 10, 2023
Insurer Refuses To Cover Auto Group In BIPA Class Action
An insurer asked an Illinois federal court to declare it does not need to defend a group of auto dealers in a putative class action alleging violations of the state's Biometric Information Privacy Act, asserting exclusions in the group's policies preclude coverage for the suit.
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May 10, 2023
Insurer Evading Sex Abuse Coverage Suit Requests, Doc Says
A doctor accused of sexually abusing child patients asked a Texas federal court Wednesday to make his insurer comply with discovery requests after the insurer argued he violated his policy's cooperation clause, saying the insurer was being evasive and making unwarranted objections.
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May 10, 2023
SEC Sues Brazilian Reinsurer Over False Investment Claims
A Brazilian reinsurance company has been hit with a U.S. Securities and Exchange Commission lawsuit in New York federal court claiming a former senior executive for the company planted a false story in the news about getting a major investment from Berkshire Hathaway.
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May 10, 2023
Rise Of Mass Shootings Fueling Specialized Coverage Options
The drastic rise in the number of active shooter and mass shooting events has made coverage under commercial general liability lines harder to secure, experts say, leading to a rise in the availability of more custom policies designed to compensate victims and others.
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May 09, 2023
4th Circ. Flips Willis Towers' Win On 'Bump-Up' Exclusion
The Fourth Circuit on Tuesday reversed a trial court decision forcing insurers for Towers Watson to cover settlements of shareholder suits stemming from the company's merger with Willis, saying the lower court improperly ruled that a "bump-up" exclusion didn't apply.
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May 09, 2023
ND Supreme Court Puts 3-Way Auto Insurer Battle To Rest
A majority of the North Dakota Supreme Court upheld on Tuesday an automobile insurer's win in a dispute involving three insurers over which policy was in effect at the time of a 2019 car crash.
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May 09, 2023
Insurer Drops Suit Against US Open Stadium Roof Contractor
A suit between an insurer and the construction manager for Arthur Ashe Stadium's retractable roof has been settled five months after the insurer brought an action against the company alleging it could not cover the construction manager for an underlying claim over increased costs.
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May 09, 2023
Manufacturer Seeks Coverage For NY 'Ghost Gun' Suits
A manufacturer accused by the New York attorney general of selling unfinished firearm frames used to build untraceable guns, or "ghost guns," told a Florida federal court that its insurers wrongfully refused to cover the manufacturer despite the accusations potentially falling within the scope of its policies.
Expert Analysis
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Insurer Implications As 3 Climate Suits Return To State Courts
Three federal circuit courts recently remanded climate change lawsuits brought by state and local governments against major energy corporations back to state courts, where plaintiffs are more likely to succeed, thus significantly increasing their insurers' and reinsurers' exposure to defense costs and judgments, say José Umbert and Jason Reeves at Zelle.
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6 Rulings Reinforce BIPA Coverage For Illinois Policyholders
Six well-reasoned recent decisions in the Northern District of Illinois have considerably strengthened policyholders’ arguments for commercial general liability coverage in lawsuits brought under the Illinois Biometric Information Privacy Act, say attorneys at Neal Gerber.
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How Boards Can Address Insurance-Based Caremark Risk
Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.
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4th Circ.'s Allen Trust Opinion: A New Class Action Primer
The Fourth Circuit's recent opinion in Allen Trust v. Banner Life Insurance is likely to become an oft-cited instruction manual for Rule 23(b)(3) class action certification and settlement in the circuit, because of how it effectively addresses the three major issues that dominate class action litigation, say David Anthony and Justin Golart at Troutman Pepper.
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What Microcaptive Reporting Ruling May Mean For The IRS
In CIC v. Internal Revenue Service, a Tennessee federal court’s decision to set aside an IRS requirement to disclose microcaptive insurance arrangements may be a step toward evidentiary standards to show that the potential for abuse in a lawful transaction is sufficient to support heightened disclosure requirements, says Samuel Lauricia at Weston Hurd.
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7 Policy Terms Defensive IP Coverage Buyers Should Note
To maximize defensive intellectual property insurance — coverage that will defend and indemnify the insured against suits alleging infringement — the technology startups driving the post-pandemic economic recovery should be focusing on specific terms within the manuscripted policies, says Micah Skidmore at Haynes and Boone.
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3 Insurance Lessons From Target Data Breach Ruling
In Target v. ACE American Insurance, a Minnesota federal court recently recognized that commercial general liability policies cover losses arising from data breaches, providing useful lessons for policyholders, including a perspective on occurrence and loss of use, say attorneys at Pasich.
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Del. Related Claims Ruling Is Good News For Insurers
The Delaware Supreme Court recently denied coverage for a shareholder class action in First Solar v. National Union First Insurance, rejecting the test for assessing relatedness-based coverage issues, and opening the door for insurers to rely on specific policy wording when evaluating related claims, say attorneys at Troutman Pepper.
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How Sonic Boom Risk Informs 'Physical Loss' For COVID Era
Applied to today's COVID-19 business interruption insurance battles, insurers' historical treatment of damage associated with sonic booms — or explosive sounds stemming from supersonic airplane speeds — may call into question the many court rulings barring coverage for pandemic-related losses on narrow physical loss grounds, say Peter Kochenburger at the University of Connecticut and Jeffrey Stempel at University of Nevada, Las Vegas.
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Justices Must Apply Law Evenly In Shadow Docket Rulings
In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.
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Preparing For New Mandatory Cyber Reporting Rules
The requirements of a new federal law mandating cyber incident reporting for critical infrastructure will not become operational for several months, but affected companies should begin assessing whether their response plans incorporate critical policies and procedures to ensure compliance, say Steven Stransky at Thompson Hine and Lacy Rex at Oswald Companies.
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What Cos. Can Glean From Early Cyber Policy Cases
Insurance claims for cyberattacks under cyber-specific policies have thus far been less contested than claims brought under commercial, crime and professional liability policies, however that may be changing, as cyber losses and liabilities continue to escalate and the market hardens, says Daniel Healy at Anderson Kill.
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A Guide To Extrinsic Evidence In Determining Duty To Defend
As the eight-corners rule for the duty to defend is increasingly riddled with exceptions to its strict formulation of confining the analysis to only the language of the insurance policy and the underlying complaint, Richard Mason at MasonADR discusses the newest notable decisions and offers strategies for attorneys litigating the duty to defend.