Mealey's Catastrophic Loss : Mealey's : Legal News & Analysis

Mealey's Catastrophic Loss

September 28, 2023
Panel: Insured Fails To Satisfy Delaware’s Long-Arm Statute In COVID-19 Dispute

PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Sept. 27 affirmed a lower federal court’s dismissal of a regional sports television network insured’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses arising from the coronavirus pandemic, rejecting the insured’s argument that Delaware’s long-arm statute subsection (c)(1) confers personal jurisdiction over the insurer.
September 27, 2023
Music Festival Organizer Seeks $2.8M For Losses Arising From Tuscany Storm

PHILADELPHIA — An insured that organized a three-day music festival in Tuscany sued its insurer for breach of contract, declaratory relief and bad faith in a Pennsylvania federal court, seeking coverage under an Event Cancellation Policy for its alleged $2.8 million in losses caused by severe weather.
September 27, 2023
Judge Again Denies Insureds’ Motion To Certify Class In Tornado Coverage Dispute

CHICAGO — For the second time in a little over a year, a federal judge in Illinois denied insureds’ motion for class certification in their lawsuit alleging that their homeowners insurer systematically underestimated and underpaid their structural and personal property damage that was caused by a June 22, 2015, tornado, finding that the insureds “plainly failed to distill an actionable common question” to warrant class certification.
September 27, 2023
Judge Grants Motion To File Amended Complaint In Hurricane Ida Coverage Row

NEW ORLEANS — A Louisiana federal judge granted homeowners’ motion to file an amended complaint and add the Louisiana Insurance Guaranty Association (LIGA) as a defendant in their breach of contract and bad faith suit against their now-insolvent insurer over its failure to cover purported damages caused by Hurricane Ida, finding no evidence that the motion to amend is “to defeat federal jurisdiction” and that because diversity jurisdiction no longer exists, the case must be remanded to state court.
September 26, 2023
Panel Affirms Demurrer In Entertainment Conglomerate’s Coronavirus Coverage Suit

LOS ANGELES — A California appeals panel affirmed a lower court’s ruling that sustained commercial property insurers’ demurer to an entertainment conglomerate insured’s complaint seeking coverage for its economic losses arising from the coronavirus, finding that, until the U.S. Supreme Court provides guidance in pending cases, it sides with the vast majority of courts that have ruled that direct physical loss or damage to property is a prerequisite for coverage.
September 25, 2023
Illinois Panel Affirms Ruling In Insurers’ Favor In Coronavirus Coverage Suit

CHICAGO — An Illinois panel on Sept. 22 affirmed a lower court’s grant of commercial property insurers’ motion to dismiss an insured’s lawsuit seeking coverage for its business income losses and extra expenses arising from the coronavirus, finding that no coverage was triggered because the insured failed to demonstrate that it incurred damage of a physical nature.
September 21, 2023
Florida Panel Reverses Order Denying Insurer’s Motion To Strike Expert Witness

WEST PALM BEACH, Fla. — A Florida appeals panel on Sept. 20 held that a lower court erred in admitting insureds’ expert testimony in a windstorm coverage dispute, reversing an order denying the insurer’s motion to strike the expert witness and remanding for a new trial.
September 20, 2023
Homeowner Sues Insolvent Insurer Over Failure To Cover Hurricane Damages

FORT MYERS, Fla. — A homeowner filed a breach of contract suit against his insolvent homeowners insurer, alleging that the insurer failed to compensate him for damages caused by Hurricane Ian.
September 19, 2023
Louisiana Panel Dismisses Appeal In Suit Arising From Hurricanes Zeta, Ida

NEW ORLEANS — A Louisiana appeals panel held that two judgments in a lawsuit arising from hurricanes Zeta and Ida property damage are neither final nor appealable, granting the Louisiana Division of Administration Office of Community Development’s (OCD) motion to dismiss the appeal.
September 19, 2023
Dismissal Granted In Multiple Hurricane Damage Suit Against Insolvent Insurer

LAKE CHARLES, La. — A Louisiana federal judge dismissed a homeowner’s breach of contract suit against a now-insolvent insurer over its failure to compensate for damages caused by two hurricanes, finding that the magistrate judge correctly determined in a report and recommendation that because the homeowner amended her complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant, the court lacks subject matter jurisdiction.
September 18, 2023
Nevada High Court Vacates Ruling Against Insurer In Coronavirus Coverage Suit

CARSON CITY, Nev. — Granting a commercial property insurer’s petition for writ of mandamus in a coverage dispute arising from the forced closure of a shopping mall in response to the coronavirus pandemic, the Nevada Supreme Court directed the lower court to vacate its order denying the insurer’s motion for summary judgment on the insured’s breach of contract and declaratory relief claims after finding that the insured’s evidence failed to create a genuine dispute of material fact regarding the existence of “direct physical loss or damage” to trigger coverage and that the policy’s pollution and contamination exclusion further barred coverage.
September 15, 2023
Motion To Add Guaranty Association Granted, Case Remanded In Hurricane Ida Suit

NEW ORLEANS — A Louisiana federal judge granted insured homeowners’ motion to file a supplemental complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant in a Hurricane Ida coverage suit against their now-insolvent insurer, finding a lack of evidence that the homeowners sought to amend their complaint to defeat diversity jurisdiction but that because it is defeated by adding LIGA, the case must be remanded to state court.
September 14, 2023
Insured’s Hurricane Irma Claim Is Ripe For Appraisal, Florida Panel Affirms

WEST PALM BEACH, Fla. — A Florida appeals panel on Sept. 13 held that a homeowners association insured’s claim for roof damage caused by Hurricane Irma is ripe for appraisal because its commercial property insurer admitted coverage for the insured’s initial claim, affirming a lower court’s order staying the lawsuit and compelling appraisal.
September 13, 2023
Judge Remands Hurricane Coverage Dispute After Joinder Of Guaranty Association

NEW ORLEANS — A Louisiana federal judge remanded to state court an insurance coverage suit against a mortgage company and an insolvent homeowners insurer over alleged failure to fully compensate an insured for purported damages related to Hurricane Ida, finding that the court lacks subject matter jurisdiction after the Louisiana Insurance Guaranty Association (LIGA) was added as a defendant.
September 13, 2023
No Coverage Owed For Restaurants’ Coronavirus Losses, 9th Circuit Affirms

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of a restaurant owner insured’s breach of contract and declaratory judgment lawsuit seeking coverage for its losses stemming from the coronavirus pandemic, finding that the policy’s virus exclusion bars coverage.
September 08, 2023
COMMENTARY: Maui Wildfire Insurance Recoveries: In The Rush To Lay Blame, Remember Your Claim

By Christopher C. Loeber and Helen P. Hunter
September 12, 2023
Panel Remands Coronavirus Coverage Suit To Decide Federal Diversity Jurisdiction

ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on Sept. 11 reversed and remanded a coronavirus coverage lawsuit for an Iowa federal court to determine whether federal diversity jurisdiction exists, finding that it is unable to decide if an insured’s members were diverse based on the insured’s new affidavit.
September 11, 2023
Florida Panel Affirms Order Denying Dismissal, Transfer Of Hurricane Michael Dispute

TALLAHASEE, Fla. — A Florida appeals panel held that because a service agreement between insureds and a public adjuster is void for violating Florida law, there is no enforceable venue selection clause and, therefore, a lower court did not err in denying the adjuster’s motion to dismiss or transfer the insureds’ declaratory judgment lawsuit arising from Hurricane Michael damage.
September 08, 2023
Federal Judge Dismisses Bobcat Wildfire Coverage Suit After Parties Reach Settlement

LOS ANGELES — A federal judge in California dismissed without prejudice a coverage dispute over underlying lawsuits arising from the Bobcat Wildfire one day after the parties announced that they reached a settlement.
September 08, 2023
Panel: Plaintiff Failed To Assert Plausible RICO Claims Against Insurer, Employee

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals held that a townhome owner has failed to allege plausible Racketeer Influenced and Corrupt Organizations Act (RICO) claims against a residential development’s insurer and its employee, affirming on other grounds a federal court’s dismissal of a lawsuit arising from Hurricane Florence property damage.
September 08, 2023
Majority: Insured Sufficiently States Negligence Claim Against Insurance Agent

RALEIGH, N.C. — A majority of a North Carolina appeals court held that an insured’s allegations are sufficient to state a claim for negligence against an insurance agent in a lawsuit arising from Hurricane Florence property damage, reversing the lower court’s dismissal of the negligence claim and affirming in all other respects.
September 07, 2023
Stay Of Judgment Denied After Insurer Appeals Judgment In Property Damage Dispute

MOBILE, Ala. — A federal judge in Alabama has denied an insurer’s motion for stay of execution without bond of a judgment issued in the wake of a nearly $170,000 verdict against it in an insurance dispute over the handling of a property damage claim after Hurricane Sally pending its appeal to the 11th Circuit U.S. Court of Appeals.
September 07, 2023
N.J. Panel Remands Coronavirus Coverage Suit To Allow Insured To Amend Fraud Claims

TRENTON, N.J. — A New Jersey appeals panel on Sept. 6 reversed a lower court’s dismissal of a law firm insured’s fraud-based claims against its insurers in a coronavirus coverage dispute, remanding with instructions for the court to permit the insured to amend its complaint to adequately plead these claims, but affirmed the dismissal of the other claims.
September 06, 2023
Judge Enters Take-Nothing Judgment In Coverage Suit Arising From Hurricane Dorian

MIAMI — A federal judge in Florida entered a take-nothing judgment in favor of an insurer in a coverage dispute arising from damage to a 61-foot yacht caused by Hurricane Dorian, finding that the insured’s failure to employ a full-time captain increased the hazard posed to its vessel.
August 31, 2023
Insurer Appeals Judgment After Verdict On Property Damage Dispute To 11th Circuit

MOBILE, Ala. — An insured has appealed to the 11th Circuit U.S. Court of Appeals the judgment issued in the wake of a nearly $170,000 verdict against it in an insurance dispute over the handling of a property damage claim after Hurricane Sally and moved a federal court in Alabama to stay execution of the judgment pending appeal.