Property
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June 10, 2024
Insurer Off Hook For HOA's $7.6M Roof Damage Replacement
An insurer didn't act in bad faith or partake in deceptive trade practices when investigating and issuing payment for storm damage that a homeowners association suffered, a federal judge ruled, finding the insurer never accepted the HOA's nearly $8 million estimate as valid and did not agree to pay that amount.
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June 10, 2024
Pa. Bridge Collapse Victim Can Only Get $5K, Court Told
Pittsburgh Regional Transit wants to trim claims brought by a passenger aboard a bus that was on the Fern Hollow Bridge when it collapsed in 2022, telling a Pennsylvania court that as a self-insured state agency, the most it would owe her is $5,000 for medical expenses.
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June 07, 2024
Texas Top Court Denies Roofer's Challenge To Adjuster Laws
The Supreme Court of Texas tossed on Friday a roofing company's challenge to the state's public adjuster licensing laws, saying that requiring a license or preventing certain conduct didn't violate the roofer's free speech rights.
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June 07, 2024
Zurich, Loan Co. Settle $15M Ex-3M Campus Repairs Suit
The lender and current title owner for a now-foreclosed Austin property that was once the campus of 3M reached a settlement in principle with a Zurich unit over coverage for their $15.5 million winter storm damage claim, the parties told a Texas federal court.
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June 06, 2024
Texas AG Takes Aim At Carmakers Selling Drivers' Data
Texas' attorney general has become the latest to turn up the data-privacy heat on connected car manufacturers, revealing Thursday that his office has begun an investigation into how these companies amass and sell drivers' data to third parties, including insurance providers.
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June 06, 2024
La. Commercial Property Co. Settles Storm Insurance Dispute
A Louisiana federal judge has dismissed a commercial property owner's coverage fight over windstorm damage after the company settled in arbitration with a group of 10 insurers.
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June 06, 2024
Justices' Standing Ruling May Embolden Carriers In Ch. 11
The U.S. Supreme Court said Thursday that an insurer with a responsibility for its policyholder's Chapter 11 bankruptcy claims can intervene in those bankruptcy proceedings, potentially giving insurers greater leverage in reorganization negotiations and likely causing an influx of insurer objections in bankruptcy court, experts tell Law360.
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June 06, 2024
Insurers' Climate Exposure Poses Risk To US Housing Market
Climate risks to already strained insurance markets could significantly disrupt the U.S. housing market and the broader financial system, according to insurance, banking and housing experts, as well as a growing body of academic research leveraging new risk data.
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June 06, 2024
State Farm Escapes Policyholder's Life Insurance GIPA Suit
An Illinois state court has permanently tossed a State Farm policyholder's privacy claims targeting family medical history questions the insurer asked as part of its life insurance underwriting process, agreeing with its argument that the state's Genetic Information Privacy Act doesn't apply to life insurance.
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June 06, 2024
8th Circ. To Mull If Geico Auto Policy Covers HPV Claim
The Eighth Circuit will hear oral arguments Wednesday over whether Geico should cover $5.2 million awarded to a woman claiming she contracted HPV during sexual encounters in a policyholder's car, with the case turning on whether her bodily injury claim must arise from the normal use of an automobile.
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June 06, 2024
Liquor Liability Costs Shake And Stir SC's Hospitality Industry
As the South Carolina General Assembly returned to session Wednesday, grassroots organizations advocating for small businesses gathered at the State House for a press conference urging elected officials to reform legislation burdening restaurants, bars and music venues with increasingly high costs of liability insurance.
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June 06, 2024
Insurance Broker Expert Says AI 'Top Risk' For Policyholders
Companies are increasingly integrating artificial intelligence technologies into their work, raising concerns in the insurance sector about the potential for growing risks and what coverage options are available for that exposure.
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June 06, 2024
Insurance Litigation Week In Review
The U.S. Supreme Court allowed an insurer to intervene in policyholder bankruptcy proceedings, Liberty Mutual requested that a policyholder-judge be removed from a construction accident coverage dispute, and a Markel unit is attempting to skirt a $77.7 million auto accident judgment. Here, Law360 takes a look at the past week's top insurance news.
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June 06, 2024
Justices Affirm Taxing Of Estate On Insurance Payout
The U.S. Supreme Court affirmed on Thursday a decision denying a tax refund to the estate of an owner of a building materials company that used a payout from his $3.5 million life insurance policy to purchase his shares in the business.
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June 05, 2024
Aluminum Co. Seeks Reversal Of $10M Coverage Cap
An aluminum supplier is urging the Fourth Circuit to reverse a lower court's ruling capping its damages at $10 million because of a molten material endorsement, arguing that the fire and water damage it sustained is separate and not subject to any sublimit or exclusion.
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June 05, 2024
Chubb Needn't Cover $14.5M Mold Deal, 11th Circ. Says
A $14.5 million consent judgment that a Florida woman secured against her condominium's property manager over what she alleged was mold exposure cannot be enforced against a pair of Chubb insurers, the Eleventh Circuit affirmed, saying the manager's carriers did not breach their duty to defend.
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June 05, 2024
4th Circ. Affirms Insurer's Win In Couple's Home Damage Suit
A West Virginia couple wasn't entitled to a new trial in a property damage coverage dispute, the Fourth Circuit ruled Wednesday, saying a lower court did not abuse its discretion or err in excluding the couple's expert witness and allowing the insurer's expert to testify.
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June 04, 2024
Simpson Reps Frontdoor On $585M Home Warranty Co. Buy
Simpson Thacher is representing Frontdoor Inc. on a newly inked deal to buy fellow home warranties provider 2-10 Home Buyers Warranty, guided by Ropes & Gray, for $585 million in cash, according to a statement Tuesday.
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June 03, 2024
Title Insurer Says Ga. Firm Must Repay $158K For Deed Error
A title insurance company said a Georgia law firm must reimburse it $158,000 for negligently issuing a title insurance policy on a real estate closing, telling a Georgia federal court that it is entitled to contractual and common law indemnity for its losses.
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May 31, 2024
Texas Justices Won't Take On City Insurance Coverage Fight
The Texas Supreme Court on Friday declined to review a trial court's decision rejecting a municipal insurance risk pool's attempt to evade the city of Hidalgo's lawsuit seeking to recover millions of dollars for damage sustained in Hurricane Hanna in July 2020.
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May 31, 2024
Boat Owner's $1.85M Policy Void In Fire Dispute, Judge Says
A Florida federal court declared a yacht owner's marine insurance policy void from inception, saying the owner, who was seeking coverage for a 2023 boat fire, materially misrepresented the price of the vessel.
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May 31, 2024
Contractor, Insurers Settle NYC Four Seasons Coverage Row
A New York federal judge dismissed a general contractor's suit seeking coverage from two insurers for an underlying $1 million action over damage to a Four Seasons hotel in midtown Manhattan, saying the parties have reached a proposed settlement.
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May 31, 2024
4th Circ. Won't Revive NC Homeowners' Storm Coverage Suit
The Fourth Circuit refused on Friday to revive a suit brought by the owners of a North Carolina beach house accusing certain underwriters at Lloyd's London of stalling a $1 million payout over hurricane damage.
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May 31, 2024
Child Care Center Says Insurer Duped It Into Less Coverage
A Texas child care center says that Century Surety Co. made false claims when it came time to renew an insurance policy, telling a federal court Thursday that the insurance company duped it into signing a policy that had coverage well below what the center thought it was getting.
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May 30, 2024
NRA Wins Free Speech High Court Battle But May Lose Its War
The U.S. Supreme Court allowed the National Rifle Association to proceed with its lawsuit alleging a former New York state official unlawfully pressured financial institutions to cut ties, but the group may now face greater hurdles to final victory.
Expert Analysis
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When And How To Depose Fact Witnesses Remotely In 2022
Tim Tryniecki and Thomas Mudd at MG+M offer a series of practice tips for successfully conducting remote depositions of often-inexperienced fact witnesses, as the virtual court proceedings sparked by COVID-19 look set to become a part of the legal landscape next year.
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JP Morgan Ruling May Have Broad Insurance Implications
The New York Court of Appeals' recent decision in J.P. Morgan Securities v. Vigilant Insurance — that settlement funds paid to the U.S. Securities and Exchange Commission did not constitute a penalty for insurance purposes — could have far-reaching application in other types of insurance litigation where plaintiffs could be characterized as seeking equitable relief, say Robert Shulman and Cristen Rose at Paley Rothman.
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Embracing ESG: PayPal CLO Talks Gauging Impact And Intent
For legal teams, the corporate evolution toward more intentional post-COVID-19 environmental, social and governance strategies means deeper integration across business functions, seeking counsel on emerging issues affecting stakeholders, adapting initiatives around changing policies and regulations, and advancing ESG reports to better measure impact, says Louise Pentland at PayPal.
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2 Insurance Rulings Showcase Trend Favoring Appraisal
Two recent decisions from a Florida state court and the Tenth Circuit are consistent with the purpose of, and overwhelming judicial preference toward, appraisal as a means of property claim resolution, ensuring that policyholders have further support in employing this tool against a reluctant insurer, say Matthew Weaver and Jessica Gopiao at Reed Smith.
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COVID Insurance Cases Highlight Federal-State Court Tension
COVID-19 insurance coverage litigation has resulted in an unprecedented number of federal courts preemptively ruling on an area of law in which state courts have final say — a problematic trend with likely undesirable results for litigants unless federal courts consider certain proactive solutions, says John Koch at Flaster Greenberg.
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Strike And Riot Insurance Considerations For Policyholders
As civil unrest risks evolve, outpacing the insurance products designed to cover them, businesses relying on strike, riot and civil commotion coverage or commercial property coverage should review key aspects of their policies, say Jillian Raines and Shafkat Rakib at Cohen Ziffer.
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Texas Insurers' Paths To Post-Appraisal Summary Judgment
Despite Texas insurance law changes that have altered the interaction between appraisal awards and certain extracontractual claims, recent state and federal court decisions show insurers still have options for summary judgment on policyholders' claims after the entry of an appraisal award, say Michael O'Brien and Claire Fialcowitz at Zelle.
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What To Include In Orders Governing Remote Arbitration
When conducting remote arbitration, attorneys should negotiate written orders that spell out clear rules on technology accommodations, document handling, witness readiness and other key considerations to ensure parties' rights are protected and the neutral's time is not wasted, say Matthew Williams and Christina Sarchio at Dechert.
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Insurers Should Honor Astroworld Coverage Obligations
While insurers may be eager to shift blame on Astroworld showrunner Travis Scott for conditions that resulted in 10 deaths and dozens of injuries, arguments suggesting the tragedy shouldn't be covered appear baseless in light of the facts and the law, says Benjamin Massarsky at Miller Friel.
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Revisiting Loss Calculations For Business Interruption Claims
As business interruption insurance claims from COVID-19 and other recent catastrophes flood the courts, David Yohai and Heather Weaver at Weil examine two common judicial approaches to calculating losses, survey their outsize effect on an insured's recovery, and discuss how the influx of new decisions will change the landscape.
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The Hazards Of Female Lawyers Being 'Office Moms'
Female attorneys are frequently credited with being the "office moms" who do critical but undervalued work — from bringing birthday cakes to serving on diversity committees — but as lawyers return to offices, now is a good time for employers to rectify the gender imbalance that disadvantages women, say Ninth Circuit Judge Margaret McKeown and Fine Kaplan partner Roberta Liebenberg.
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Ransomware Case Signifies Shift In Cyber Insurers' Stance
The pleadings in a recently settled California federal court case, Boardriders v. Great American Insurance, show that cyber insurers are taking an adversarial approach to ransomware-related claims in the wake of increasing attacks, so policyholders should anticipate new policy language, claim-payment avoidance and more, say Lynda Bennett and Michael Scales at Lowenstein Sandler.
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Pa. Ruling Leaves Auto Policy Stacking Questions
Following the Pennsylvania Supreme Court's recent decision in Donovan v. State Farm, implicitly confirming the validity of a household vehicle auto policy exclusion with a proper inter-policy stacking waiver, it is unclear what the court expects insurers to do about stacking waivers, say Christopher Woodward and Allison Krupp at Marshall Dennehey.