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Mealey's Emerging Insurance Disputes

  • 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.

  • October 06, 2025

    9th Circuit Won’t Reconsider Ruling In Insurer’s Subrogation Suit Over Jet Damage

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Oct. 3 denied an insurer’s motion to reconsider the court’s denial of a joint motion to vacate an Aug. 25 memorandum decision that affirmed in part and reversed in part a lower federal court’s summary judgment ruling in an insurer’s subrogation lawsuit arising from property damage incurred by the insured’s privately owned noncommercial aircraft while it was parked and stored at the petitioner’s facility.

  • October 03, 2025

    Federal Judge: Insurer Entitled To Rescission, Would Have Breached Duties Otherwise

    CHICAGO — A federal judge in Illinois determined that an insurer was entitled to rescind a directors, officers and corporate liability insurance policy in a telecommunications business insured’s breach of contract and bad faith lawsuit arising from underlying allegations under the Illinois False Claims Act (IFCA), concluding that the insurer would have breached its duties to defend and indemnify the insured had it not been entitled to rescission.

  • October 01, 2025

    No Coverage Owed For Washington State University’s Coronavirus Losses, Panel Affirms

    SPOKANE, Wash.— A Washington appeals panel on Sept. 30 affirmed a lower court’s grant of an insurer’s motion for judgment on the pleadings in a business interruption coverage dispute arising from the coronavirus pandemic, concluding that it is bound by the Washington Supreme Court's ruling in Hill and Stout PLLC v. Mutual of Enumclaw Insurance Company in holding that a business’ shutdown because of the COVID-19 pandemic does not constitute a “direct physical loss or damage” to insured property pursuant to an all-risk insurance policy.

  • October 01, 2025

    Judge: Misappropriation Of Funds Exclusion Bars Professional Liability Coverage

    FRESNO, Calif. — A federal judge in California granted a professional liability insurer’s motion for summary judgment in an insured’s breach of contract and bad faith lawsuit seeking coverage for underlying claims alleging that the insured conducted a negligent background check on a client’s potential employee, ruling that the policy exclusion for “misappropriation of funds” unambiguously bars coverage.

  • September 30, 2025

    Judge: Prior And Pending Litigation Exclusion Does Not Bar Cyber Liability Coverage

    WILMINGTON, Del. — A Delaware judge granted in part and denied in part an insured and its excess insurers’ summary judgment motions in a cyber liability coverage dispute, holding that the prior and pending litigation policy exclusion does not relieve the excess insurers of their duty to defend but they have no duty to indemnify the insured for the costs it incurred in a reciprocal lawsuit.

  • September 30, 2025

    Judge Finds Policy Terms Ambiguous In Employment Practices Liability Coverage Suit

    COLUMBUS, Ohio — A federal judge in Ohio on Sept. 29 denied an insurer’s motion for judgment on the pleadings in its declaratory judgment lawsuit disputing employment practices liability coverage for an underlying civil lawsuit and a charge of employment discrimination arising from the sexual harassment of its insureds’ minor employee, ruling that the policy terms are ambiguous.

  • September 29, 2025

    9th Circuit Affirms Court’s Denial Of Insured’s Request For Attorney Fees

    SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s denial of an insured’s motion for attorney fees and costs after the court granted the insured’s motion to remand a coverage dispute arising from a shooting at the insured’s apartment complexes, finding that the insured’s characterization of the insurer’s “notice of removal as a fabrication and a misrepresentation of fact is a bridge too far.”

  • September 29, 2025

    Texas High Court Denies Review In COVID-19 Contamination Suit

    AUSTIN, Texas — The Texas Supreme Court on Sept. 26 denied an insured’s petition for review of a state appellate court’s ruling that a contamination exclusion bars coverage for the insured’s claim seeking coverage for damages and losses incurred as a result of the coronavirus.

  • September 29, 2025

    Texas High Court Won’t Review Baylor College Of Medicine’s COVID-19 Coverage Suit

    AUSTIN, Texas — The Texas Supreme Court on Sept. 26 denied Baylor College of Medicine’s petition seeking review of an appeals court’s conclusion that the presence of the COVID-19 virus at its premises did not cause “direct physical loss of or damage to” its property, challenging the appeals court’s reversal of a lower court’s judgment following a jury verdict in the school’s favor.

  • September 29, 2025

    Judge Dismisses Coverage Suit Arising From Claims Against U.S. Paralympic Committee

    DENVER — A federal judge in Colorado dismissed without prejudice a commercial general liability insurer’s 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, finding that the court lacks subject matter jurisdiction.

  • September 26, 2025

    6th Circuit Affirms Ruling In Insurance Row Involving Chris Brown Recording Studio

    CINCINNATI  — The Sixth Circuit U.S. Court of Appeals on Sept. 25 affirmed a lower court ruling requiring the insurer of a recording studio owned by musician Chris Brown to pay out the majority of a $2.5 million jury verdict to a co-defendant and lessee of the studio after Brown was previously found liable for submitting a fraudulent insurance claim for burglary and fire at the studio, finding in part that the insurer may not challenge the award going to the lessee pursuant to arguments the insurer could have brought previously.

  • September 25, 2025

    No Coverage For Claims Arising From Fatal Car Crash, Kentucky High Court Affirms

    FRANKFORT, Ky. — The Kentucky Supreme Court affirmed a Kentucky Court of Appeals majority’s reversal of a summary judgment ruling in favor of insureds in an insurer’s lawsuit seeking a declaration as to commercial umbrella insurance coverage for underlying claims arising from a fatal car accident that was caused by a patron of the insured’s business, ruling that the unambiguous commercial umbrella policy does not provide coverage.

  • September 24, 2025

    Maine High Court Affirms Ruling In Insurer’s Favor In Reach-And-Apply Suit

    PORTLAND, Maine — The Maine Supreme Court on Sept. 23 affirmed a lower court’s summary judgment ruling in favor of an insurer in a reach-and-apply lawsuit seeking to recover the remainder of an underlying stipulated judgment arising from an injury, finding that there is no genuine issue of material fact that the injury at the property is excluded under the policy.

  • September 24, 2025

    Texas Panel Partly Rules In Favor Of Insurers In Coronavirus Coverage Suit

    DALLAS — A Texas appellate panel held that a lower court erred in granting summary judgment in favor of certain commercial property insurers in a breach of contract and bad faith lawsuit arising from the coronavirus pandemic, finding that one of the “follow-form” insurance policies included a coverage-extension endorsement that was not present in the lead policy and the insurer that issued that policy failed to demonstrate that the contamination exclusion superseded the endorsement.

  • September 23, 2025

    N.J. Panel Affirms Denial Of Insurer’s Motion To Disqualify Insured’s Attorney

    TRENTON, N.J. —A New Jersey appeals panel on Sept. 22 affirmed a lower court’s denial of an insurer’s motion to disqualify an insured’s attorney in a coverage dispute over an $772,500 theft claim, rejecting the insurer’s argument that the attorney was a necessary witness for trial and also agreeing with the lower court’s decision to quash the insurer’s subpoena served on the attorney and issue a protective order barring the insurer from seeking the attorney’s disqualification.

  • September 23, 2025

    No Coverage Triggered For Sexual Misconduct Suit Against Teacher, Panel Affirms

    CHICAGO — An Illinois appellate panel affirmed a lower court’s dismissal of a teacher’s breach of contract lawsuit against an insurer seeking general liability coverage for an underlying sexual misconduct lawsuit that was dismissed for want of prosecution, agreeing with the lower court that the events required to trigger coverage did not occur.

  • September 22, 2025

    Delaware Judge Dismisses Excess Insurer From D&O Coverage Suit Over Qui Tam Action

    WILMINGTON, Del. — A Delaware judge on Sept. 19 signed an order dismissing with prejudice insureds’ lawsuit against their excess insurer seeking directors and officers liability coverage for an underlying qui tam action four days after the parties filed a stipulation of dismissal.

  • September 22, 2025

    Following Mediation, Parties In D&O Excess Coverage Dispute Reach ‘Total Impasse’

    MIAMI — A mediator told a Florida federal court on Sept. 19 that an excess directors and officers liability insurer and a law firm participated in mediation and failed to resolve the law firm’s lawsuit seeking payment for its legal representation of the insured in underlying criminal and civil lawsuits.

  • September 19, 2025

    Policy’s Delay Warranty Bars Coverage For Damaged Blood Plasma, 11th Circuit Rules

    ATLANTA — The 11th Circuit U.S. Court of Appeals held Sept. 18 that an insurer has no duty to cover the cost of blood plasma that was destroyed due to a shipping delay, concluding that coverage is barred by the policy’s warranty “for loss, damage, or deterioration arising from delay.”

  • September 19, 2025

    CGL Insurer, City Settle Coverage Dispute Over Wrongful Conviction Settlement

    DURHAM, N.C. — A mediator filed a report notifying a North Carolina federal court that a commercial general liability insurer and the city of Concord, N.C., have fully settled 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.

  • September 18, 2025

    Judge Refuses To Strike Breach Of Contract Claim In Suit Against Insurance Broker

    STAMFORD, Conn.— A Connecticut judge denied an insurance broker’s motion to strike a plaintiff’s breach of contract claim in its lawsuit alleging that the broker’s failure to recommend product recall insurance left the plaintiff uninsured for a food product recall loss.

  • September 17, 2025

    9th Circuit Denies Rehearing Of Insurer’s Subrogation Suit Prompted By Jet Damage

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Sept. 16 denied an aircraft facility operator’s petition for reconsideration of its opinion affirming in part and reversing in part a lower federal court’s summary judgment ruling in an insurer’s subrogation lawsuit arising from property damage incurred by the insured’s privately owned noncommercial aircraft while it was parked and stored at the petitioner’s facility, standing by its finding that there is a genuine dispute of material fact regarding whether it was reasonable for the petitioner to conclude that the pilot had the apparent authority to bind the aircraft owner to the limitation of liability provision of the landing card.

  • September 17, 2025

    Insurer Has No Duty To Pay Attorney Fees In Coverage Suit, Panel Rules In Reversal

    INDIANAPOLIS — An Indiana appeals panel reversed a lower court’s finding that an insurer has a duty to provide coverage for attorney fees incurred by the plaintiff in a coverage dispute arising from a workplace injury, concluding that the attorney fees that the plaintiff incurred in bringing the present lawsuit are not defense costs “because of” the underlying action.