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

Mealey's Catastrophic Loss

December 10, 2024
Retail Furniture Insured Voluntarily Dismisses Coronavirus Coverage Suit

PHILADELPHIA — A retail furniture insured filed a notice in a federal court in Pennsylvania to voluntarily dismiss its lawsuit seeking coverage for its losses stemming from the forced closure of its business in response to the coronavirus pandemic.
December 09, 2024
Majority Renders $4.5M In Attorney Fees To Insureds In Hurricane Katrina Suit

JACKSON, Miss. — A Mississippi Supreme Court majority affirmed a jury's $10,457,858.89 damages award against an insurer in a Hurricane Katrina coverage dispute and reversed the lower court’s denial of the insured’s estate’s posttrial motion for attorney fees and rendered $4,500,000 in attorney fees to the estate plus postjudgment interest, finding that the court’s decision to force the estate to use nearly half of its award to pay attorney fees fails to adequately compensate them for bringing this bad faith action against the insurer.
December 09, 2024
Panel Affirms No Coverage Ruling In Convention Center’s Suit Arising From Pandemic

SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a federal court’s ruling that granted an insurer’s motion to dismiss an insured’s lawsuit seeking coverage for its business interruption losses arising from the COVID-19 pandemic, finding that the insured fails to show that coverage exists for its losses under the policy’s Civil or Military Authority provision and further concluding that the policy's contamination exclusion precludes coverage.
December 03, 2024
Restaurant, Insurer Seek Dismissal Of Suit Over Looting Damage After Hurricane Maria

ST. CROIX, Virgin Islands — A restaurant insured and its insurer filed a stipulation in federal court in the Virgin Islands seeking dismissal with prejudice of all claims and counterclaims in their dispute over the insurer’s adjustment of the insured’s property damage claim and business interruption losses arising from looting after Hurricane Maria.
December 03, 2024
No Coverage Owed For Bacteria, Mold In Insureds’ Home, Federal Judge Says

LAKE CHARLES, La. — A homeowners insurer did not breach its contract or act in bad faith in refusing to provide coverage for bacteria, mold and contamination allegedly caused by hurricane damage because the policy clearly excludes coverage for contaminants and pollutants, a Louisiana federal judge said in granting the insurer’s motion for summary judgment.
December 03, 2024
Following John’s Grill, Panel Affirms No Coverage Ruling In COVID-19 Suit

SAN DIEGO — Reconsidering its earlier holding in favor of a diner insured in light of John's Grill, Inc. v. The Hartford Financial Services Group, Inc., a California appeals panel affirmed a lower court’s judgment in favor of an insurer in the diner’s lawsuit seeking coverage for its business losses arising from the COVID-19 pandemic.
December 02, 2024
Status Conference Scheduled In Hurricane Coverage Dispute With Insolvent Insurer

LAFAYETTE, La. — A Louisiana federal magistrate judge issued an order scheduling a follow-up status conference in a homeowner’s suit against his now-insolvent insurer for its purported failure to cover damages caused by Hurricanes Laura and Delta.
November 27, 2024
Insureds Seek Vacatur Of Order Compelling Arbitration Of $7M Hurricane Claim

NEW ORLEANS — Citing new Louisiana Supreme Court precedent on the arbitrability of insurance claims, two New Orleans property owners filed a motion in Louisiana federal court to vacate an order compelling arbitration of their claims for $7 million in damages caused by Hurricane Ida and for bad faith against a group of foreign and domestic insurers, which was previously upheld by the Fifth Circuit U.S. Court of Appeals.
November 26, 2024
Judge Grants Motion To Strike Misrepresentation Defense In Hailstorm Coverage Row

DENVER — A Colorado federal judge on Nov. 25 granted a homeowner’s motion to strike her insurer’s affirmative defense related to voiding her policy for purported misrepresentation in the homeowner’s bad faith suit against the insurer for alleged failure to cover hail damage, finding that the defense fails to meet the pleading requirements for particularity under the Federal Rules of Civil Procedure.
November 22, 2024
COMMENTARY: 2024 Key Insurance Decisions, Trends & Developments & A Look Ahead To 2025

By Scott M. Seaman, Pedro E. Hernandez and Lisa M. Roccanova
November 22, 2024
Louisiana Panel Refuses To Review Hurricanes Laura, Delta Coverage Suit

BATON ROUGE, La. — A Louisiana appeals panel denied Louisiana Insurance Guaranty Association’s writ seeking review of a lower court’s amended judgment in a coverage dispute arising from property damage that was caused by hurricanes Laura and Delta, finding that although it lacks subject matter jurisdiction over the insurer’s appeal of the amended judgment, it has supervisory jurisdiction to deny the writ.
November 22, 2024
Michigan Judge Rules For School District In High School Shooting Coverage Suit

PONTIAC, Mich. — A Michigan judge granted a public school district insured’s motion for partial summary disposition in its lawsuit seeking a declaratory judgment that underlying actions arising from a high school shooting seek damages for “bodily injury” that was caused by multiple “occurrences” under the policy and, therefore, the insured is not limited to $5 million in commercial general liability and excess coverage.
November 20, 2024
Panel Refuses To Rehear Coverage Suit Arising From Hurricanes Laura, Delta

CHARLESTON, W.Va. — A panel of the Fifth Circuit U.S. Court of Appeals denied petitions filed by a church insured and its insurer seeking rehearing of a ruling that partly reversed a lower federal court’s decision in the insured’s lawsuit alleging that the insurer underpaid its losses arising from hurricanes Laura and Delta.
November 18, 2024
Philadelphia Eagles Ask Court To Reconsider Dismissal Of COVID-19 Coverage Suit

PHILADELPHIA — The owner and operator of the Philadelphia Eagles football organization moved for a Pennsylvania federal court to reconsider the dismissal of its action seeking a declaration as to coverage for its losses arising from the COVID-19 pandemic, asserting that the present lawsuit “is unlike any other that already has been decided and warrants proceeding past a motion to dismiss.”
November 15, 2024
Majority Affirms Ruling In Last Resort Insurer’s Favor In Hurricane Coverage Suit

BATON ROUGE, La. — A majority of a First Circuit Louisiana Court of Appeal panel held that a lower court properly interpreted the state Legislature's amendment of Louisiana Revised Statutes Section 22:1892(H) by Act 290 to be a procedural change that applied retroactively and, as a result, eliminated any class action for damages, including bad faith penalties, brought against the state’s insurer of last resort.
November 14, 2024
6th Circuit Affirms Ruling In Insurer’s Favor In Coverage Dispute Over Hail Damage

CINCINNATI — The Sixth Circuit U.S. Court of Appeals affirmed a lower federal court’s dismissal of an insured’s lawsuit seeking coverage for commercial property damage caused by a hailstorm because the insured assigned the rights to his insurance proceeds and did not qualify as the “real party in interest” pursuant to Federal Rule of Civil Procedure 17.
November 13, 2024
Judge Refuses To Dismiss Declaratory Relief Claim in Hurricane Ian Coverage Dispute

FORT MYERS, Fla. — A federal judge in Florida denied an insurer’s motion to dismiss an insured’s declaratory relief claim in a Hurricane Ian coverage dispute, finding that the insured has plausibly asserted a declaratory judgment claim and the issue of whether that claim is subsumed by the insured’s breach of contract claim can better be resolved at the summary judgment stage.
November 11, 2024
Insurer, Insured Reach Confidential Settlement In Hurricane Ida Coverage Suit

NEW ORLEANS — A Louisiana federal magistrate judge announced that a confidential settlement has been reached in a commercial property owner insured’s lawsuit against its insurer seeking coverage for its damage caused by Hurricane Ida.
November 11, 2024
Appraisal Award Partly Vacated, Counterclaim Dismissed In Wildfire Coverage Suit

BIRMINGHAM, Ala. — A federal magistrate judge in California granted in part a homeowners insurer’s motion to vacate a more than $33 million appraisal award in a coverage dispute over damage caused by the Glass Fire in Northern California, further granting the insureds’ motion to dismiss the insurer’s counterclaim for breach of the implied covenant of good faith and fair dealing.
November 08, 2024
Gold Mining Co. Estimates Losses In Coverage Row At More Than $200M

NEW YORK — A New York federal judge ordered parties to file a joint report on the prospect of arbitrating a breach of contract lawsuit for losses estimated at more than $200 million for a gold mining breakdown that involves a dispute over whether the defendants are direct insurers or reinsurers of the plaintiff.
November 08, 2024
Federal Magistrate Denies Insured’s Motion To Remand Hurricane Ian Coverage Dispute

FORT MYERS, Fla. — A federal magistrate judge in Florida denied an insured’s motion to remand its declaratory judgment lawsuit seeking coverage for its damage caused by Hurricane Ian, finding that the insurer timely removed the lawsuit and that the amount in controversy was satisfied.
November 05, 2024
Church, Insurer Seek Rehearing Of Coverage Suit Arising From Hurricanes Laura, Delta

NEW ORLEANS — A church insured and its insurer filed petitions seeking a panel rehearing of the Fifth Circuit U.S. Court of Appeals’ Oct. 17 ruling that partly reversed a lower federal court’s ruling in the insured’s lawsuit alleging that the insurer underpaid its losses arising from hurricanes Laura and Delta, with both relying on First Baptist Church of Iowa v. CM Insurance Company in their respective arguments.
November 04, 2024
Panel Affirms $6.6M Appraisal Award In Insured’s Favor In Hurricane Coverage Dispute

ATLANTA — The 11th Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of a condominium association insured’s motion for summary judgment and confirmation of a $6,599,810.67 appraisal award for its actual cash value loss arising from Hurricane Irma damage, saying it will not save the insurer “from the undesired consequences of the binding appraisal agreement it chose to enter.”
October 29, 2024
Federal Judge Stays Dismissal Of Philadelphia Eagles’ COVID-19 Coverage Dispute

PHILADELPHIA — A federal judge in Pennsylvania stayed his dismissal of a lawsuit brought by the owner and operator of the Philadelphia Eagles football organization seeking a declaration as to coverage for its losses arising from the COVID-19 pandemic pending a ruling on the insured’s motion for reconsideration.
October 28, 2024
Michigan Supreme Court Refuses To Review Ruling In Favor Of Insurance Agent

LANSING, Mich. — The Michigan Supreme Court on Oct. 28 denied an insured’s request for leave to appeal an appeals court’s ruling that affirmed a lower court’s grant of summary disposition in favor of an insurance agent and agency in its negligence lawsuit arising from its lack of flood coverage.