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Mealey's Emerging Insurance Disputes

  • October 28, 2025

    Justin Baldoni, Movie Studios Move To Toss Insurer’s Suit In Favor Of Other Forum

    NEW YORK — Justin Baldoni, Wayfarer Studios LLC, It Ends With Us Movie LLC and its movie studio officers have asked a New York federal court to dismiss or stay their management liability insurer’s lawsuit seeking a declaration that it has no duty to provide coverage for Blake Lively’s sexual harassment, hostile work environment and retaliation action, arguing that it is “sufficiently more efficient” for the insurer to join a related lawsuit that they filed in a California state court against three of their other insurers.

  • October 28, 2025

    Insurer, City Seek Dismissal Of Coverage Suit Arising From Wrongful Conviction

    DURHAM, N.C. — Following a settlement of all claims, a commercial general liability insurer and the city of Concord, N.C., filed a joint stipulation on Oct. 27 asking the U.S. District Court for the Middle District of North Carolina to dismiss with prejudice the city’s breach of contract and declaratory judgment lawsuit alleging that the insurer has a duty to defend, indemnify and contribute to a $9.3 million settlement of an underlying wrongful conviction lawsuit.

  • October 28, 2025

    Insurer Is Equitably Estopped From Denying Coverage, 2nd Circuit Affirms

    NEW YORK — The Second Circuit U.S. Court of Appeals concluded that a supermarket owner’s insurer is equitably estopped from disclaiming coverage for an underlying personal injury lawsuit that was brought against the owner of the property where the supermarket’s employee was injured when he fell down an elevator shaft, affirming the lower federal court’s summary judgment ruling in favor of the property owner’s insurer on its equitable estoppel claim.

  • October 28, 2025

    Majority: Misappropriation Exclusion Does Not Relieve Insurer Of Its Duty To Defend

    NEW YORK — A Second Circuit U.S. Court of Appeals majority vacated a lower federal court’s dismissal of a law firm insured’s defense and indemnification claims against its professional liability insurer, reversed its denial of the insured’s motion for partial summary judgment as to the insurer’s duty to defend and remanded for the lower court to enter partial summary judgment in favor of the insured, finding that the insurer cannot defeat its duty to defend based on the policy’s misappropriation exclusion.

  • October 24, 2025

    NRA Seeks High Court Review Of Reversal In Free Speech Suit Over Insurance Program

    NEW YORK — The National Rifle Association of America (NRA) petitioned the U.S. Supreme Court to review the Second Circuit U.S. Court of Appeals holding that a former superintendent of the New York department that regulates insurance is entitled to qualified immunity on the NRA’s First Amendment coercion and retaliation claims against New York state officials and the department, challenging the panel’s reversal of a lower federal court’s order denying the former superintendent and the department’s motion to dismiss the NRA’s suit alleging that she unconstitutionally threatened or coerced an insurer or other entities to stifle its speech.

  • October 23, 2025

    Court ‘Diligently Handled’ Jurisdictional Remand In Suit Against Contractor, Surety

    BOSTON— The First Circuit U.S. Court of Appeals remanded a lawsuit seeking to recover subcontractors’ financial losses after a contractor and its surety allegedly did not pay them for work related to rebuilding projects in Puerto Rico and the Virgin Islands following Hurricane Maria, instructing the lower federal court to dismiss the complaint for lack of subject matter jurisdiction.

  • October 22, 2025

    Louisiana High Court Won’t Review Asbestos Liability Row With Guaranty Association

    NEW ORLEANS — The Louisiana Supreme Court denied a petition for a writ of certiorari filed by the Louisiana Insurance Guaranty Association (LIGA) seeking review of an appellate court’s reversal of a ruling granting summary judgment to an insurer and to LIGA but denying a motion for partial summary judgment filed by family members in a dispute over their deceased relative’s death purportedly from asbestos exposure.

  • October 21, 2025

    5th Circuit Partly Reverses Ruling In CGL Insurer’s Favor In Well Operator’s Suit

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Oct. 20 reversed a lower federal court’s dismissal of a well operator’s claims that a commercial general liability insurer has a duty to defend and indemnify its oilfield services company insured against an underlying dispute arising from well damage, finding that the insurer waived the policy’s consent-to-suit requirement and that the fact that the assignee could not recover from the insured or its bankruptcy assets does not preclude its duty to indemnify claim against the insurer.

  • October 21, 2025

    BlueCross, Excess E&O Insurer Stipulate To Dismiss Bad Faith, Breach Of Contract Suit

    HARRISBURG, Pa. — Capital BlueCross and its excess errors and omissions insurer filed a stipulation in a Pennsylvania federal court seeking dismissal with prejudice of Capital BlueCross’ breach of contract and bad faith lawsuit arising from an underlying antitrust multidistrict litigation.

  • October 20, 2025

    Chemical Company Says Settlement Reached In Coverage Suit Arising From Explosion

    BEAUMONT, Texas — A sustainable chemical company insured filed a notice in a Texas federal court indicating that it has reached a settlement with its insurer of its breach of contract and declaratory judgment lawsuit seeking to obtain coverage for the full value of its business interruption loss caused by an explosion at a Texas plant.

  • October 17, 2025

    No Coverage Owed For BIPA Class Action Against Insured, Illinois Panel Affirms

    CHICAGO — An Illinois appeals panel concluded that an insurer has no duty to defend or indemnify its information technology services and consulting firm insured against an underlying putative class lawsuit brought under the Illinois Biometric Information Privacy Act (BIPA), affirming the lower court’s finding that the insured’s “wrongful acts” and “enterprise security events” were not covered because they occurred prior to the policy's retroactive date.

  • October 17, 2025

    2 Named Plaintiffs Have Standing To Pursue Claims Stemming From Data Breach

    RICHMOND, Va. — Two of four named plaintiffs in a consolidated class action stemming from a data breach incident have standing to pursue their claims against the insurance companies whose network was hacked because their allegation that their driver's license numbers were posted on the dark web after the breach constitutes a concrete injury, the Fourth Circuit U.S. Court of Appeals said in partially reversing a district court’s opinion dismissing the case.

  • October 15, 2025

    Judge Dismisses Defective Wine Coverage Dispute After Winemaker, Insurer Settle

    SEATTLE — The same day a commercial winemaker and an excess commercial general liability insurer filed a notice of settlement, a federal judge in Washington dismissed the coverage dispute arising from an underlying faulty vinification lawsuit over allegedly defective wine.

  • October 15, 2025

    Judge Dismisses Coverage Dispute Over Claims Insured Falsely Markets Milk Product

    CHICAGO — Four days after an insurer filed a notice of voluntary dismissal, a federal judge in Illinois on Oct. 14 dismissed without prejudice the insurer’s lawsuit seeking a declaration that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements.

  • October 15, 2025

    Panel: Insurer Of Wendy’s Franchise Owes No Coverage For Assault And Battery Claims

    LAS VEGAS — The Ninth Circuit U.S. Court of Appeals held that a Wendy’s franchise owner’s insurer has no duty to indemnify Wendy’s employees against an underlying assault and battery lawsuit, agreeing with the lower federal court that there was no “occurrence” to trigger policy coverage because the underlying claims are intentional torts.

  • October 14, 2025

    Insurer Dismisses Coverage Dispute Over Claims Insured Falsely Markets Milk Product

    CHICAGO — An insurer voluntarily dismissed its lawsuit asking an Illinois federal court to declare that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements.

  • October 13, 2025

    Panel: Conflict Of Interest Claims Do Not Fall Under Misappropriation Exclusion

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Oct. 10 affirmed a lower federal court’s dismissal of a professional liability insurer’s lawsuit seeking a declaration that it has no duty to defend or indemnify an attorney and law firm for an underlying legal malpractice lawsuit, finding that the underlying conflict of interest claims do not fall under the policy’s misappropriation exclusion and, therefore, the insurer must defend the entire underlying action.

  • October 13, 2025

    Insurer Appeals Dismissal Of Suit Disputing Coverage For Sexual Assault Claims

    DENVER — A commercial general liability insurer notified a Colorado federal court on Oct. 10 that it is appealing the court’s dismissal of its lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify the U.S. Olympic & Paralympic Committee (USOPC) for a Paralympic swimmer’s lawsuit alleging that a team member sexually assaulted and harassed him and that USOPC failed to warn his parents about the team member or to supervise the accused, challenging the court’s finding that it lacks subject matter jurisdiction.

  • October 10, 2025

    Judge Denies Embryo Storage Lab’s Motion To Stay Consumer Fraud Coverage Dispute

    CHICAGO — A federal judge in Illinois denied an embryo storage lab’s motion to stay its professional liability insurer’s lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify the lab for an underlying class action alleging the insured engaged in false and deceptive advertising and failed to fully disclose the accuracy of preimplantation genetic testing, ruling that the doctrine in Md. Cas. Co. v. Peppers does not require staying the action.

  • October 10, 2025

    Insurer Disputes Coverage For Suit Alleging Insured Falsely Markets Milk Products

    CHICAGO — An insurer filed suit in a federal court in Illinois seeking a declaration that it has no duty to defend or indemnify Fairlife LLC against an underlying putative class action alleging that it markets its milk products through false or misleading statements, arguing that the runoff exclusion bars coverage.

  • October 10, 2025

    Group Home Appeals No Coverage Ruling For Underlying Negligence Suit

    DULUTH, Minn. — The operators of a group home notified a Montana federal court that it is appealing the court’s holding that a commercial general liability insurer has no duty to defend them against an underlying negligence lawsuit and that they are not entitled to attorney fees, challenging the court’s ruling that no coverage was triggered because the underlying complaint alleges only mental injuries and not bodily injury, sickness or disease.

  • October 09, 2025

    California Panel Affirms Ruling In Insurer’s Favor In Suit Arising From Assault

    SAN DIEGO — A California appeals panel affirmed a lower court’s judgment in favor of a homeowners insurer in its declaratory relief lawsuit disputing coverage for an underlying judgment against its insured, concluding that the insured’s conduct was not the result of an “accident” and, therefore, the underlying damages did not arise from a covered “occurrence” under the policy.

  • October 08, 2025

    Federal Judge Says Law Firm, Insurer Have Settled Cyber Crime Coverage Dispute

    SEATTLE — A federal judge in Washington reported that a settlement has been reached in a law firm insured’s lawsuit seeking commercial cyber insurance coverage for a breach of the firm’s security measures, striking the June 1, 2026, trial date and ordering that dismissal and settlement papers be submitted by Dec. 5.

  • October 07, 2025

    Professional Negligence Suit Against Broker Is Untimely, California Panel Affirms

    LOS ANGELES — A California appeals panel on Oct. 6 determined that a lower court properly determined that a professional negligence lawsuit against an insurance broker is time-barred because the action was filed more than two years after the professional negligence cause of action accrued and the plaintiff has failed to plead any facts supporting his argument that the lower court should have applied equitable tolling principles.

  • October 07, 2025

    N.Y. Justice Allows Insured To Serve Subpoena In Secondhand Smoke Coverage Suit

    NEW YORK — An insured is permitted to serve a subpoena on the New York State Department of Financial Services and to compel the department to produce all complaints filed against a homeowners insurer by insureds for wrongful denial of coverage of claims related to secondhand smoke intrusion, a New York County Supreme Court justice said.