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Mealey's Emerging Insurance Disputes

  • January 16, 2026

    No Indemnification Owed For $300,000 Personal Injury Judgment, Panel Says, Reverses

    BOSTON — A Massachusetts appeals court on Jan. 15 held that a homeowners insurer owes no indemnification for an underlying $300,000 personal injury judgment, reversing a lower court in concluding that the man who the underlying judgment was awarded against is not a member of his grandmother’s household and, as a result, is not insured under the policy at issue.

  • January 15, 2026

    Judge Dismisses COVID-19 Coverage Suit Brought By Owner Of Seattle Space Needle

    SEATTLE — Following the filing of a joint stipulation of dismissal, a Washington federal judge dismissed the owner and operator of the Space Needle in Seattle’s breach of contract and declaratory judgment lawsuit seeking to recoup the “millions of dollars in revenues” it lost when its business was interrupted because of the coronavirus pandemic (Space Needle LLC v. North American Elite Insurance Company, No. 21-00347, W.D. Wash.).

  • January 14, 2026

    U.S. High Court Denies Abuse Claimants’ Request To Review Confirmation Of BSA Plan

    WASHINGTON, D.C. — The U.S. Supreme Court denied abuse claimants’ petition for a writ of certiorari seeking review of the Third Circuit U.S. Court of Appeals’ dismissal of their appeal seeking to reverse a lower federal court’s confirmation order that affirmed the Boy Scouts of America’s third modified fifth amended Chapter 11 reorganization plan, which contemplates the creation of a settlement trust to “assume liability for all Abuse Claims.”

  • January 14, 2026

    Insureds: Insurer’s ‘Improper,’ ‘Baseless’ Sur-reply Should Be Disregarded By Court

    NEW YORK — Justin Baldoni, Wayfarer Studios LLC, It Ends With Us Movie LLC and its movie studio officers asked a New York federal court to disregard their management liability insurer’s letter motion to file a sur-reply to their reply in support of their motion to dismiss the 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.

  • January 13, 2026

    Judge: Summary Judgment Premature In Coverage Suit Arising From Gas Explosion

    LAFAYETTE, La. — A federal judge in Louisiana denied insurers’ motion for partial summary judgment and a judicial declaration in their coverage lawsuit arising from a fire and explosion that occurred while contractors were working on a pipeline project, finding that summary judgment is premature.

  • January 12, 2026

    Delaware Judge: 2 Insurers Owe D&O Coverage For Breach Of Fiduciary Duty Suit

    WILMINGTON, Del.— A Delaware judge held that because there is a meaningful link between an underlying demand and a subsequent breach of fiduciary duty lawsuit against an insured’s board of directors, two insurers have a duty to provide directors and officers liability coverage for the underlying action.

  • January 09, 2026

    5th Circuit Affirms Refusal To Compel Arbitration Of Hurricane Insurance Dispute

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel affirmed a federal judge’s denial of a motion by a group of domestic insurers to compel arbitration pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), as codified in Chapter 2 of the Federal Arbitration Act (FAA), 9 U.S.C. § 201 et seq., finding that state law prohibits arbitration of such disputes.

  • January 08, 2026

    Prompted By Contractor’s Motion, 5th Circuit Dismisses Appeal In CGL Coverage Suit

    NEW ORLEANS — One day after a contractor insured filed an unopposed motion to dismiss its appeal of a Texas federal court’s opinion that a commercial general liability insurer has no duty to defend or indemnify for an underlying negligence lawsuit arising from the death of a house cleaner, the Fifth Circuit U.S. Court of Appeals dismissed the appeal.

  • January 08, 2026

    No Coverage Owed For $10M Invasion Of Privacy Verdict, 11th Circuit Affirms

    ATLANTA — The 11th Circuit U.S. Court of Appeals on Jan. 7 held that a 58-month delay in notifying an umbrella insurer of underlying conduct that could have triggered coverage was untimely as a matter law, affirming a lower federal court’s grant of summary judgment in favor of the insurer in a direct action lawsuit seeking recovery of a $10 million judgment in an underlying invasion of privacy action.

  • January 08, 2026

    Following Mediation, Parties Reach Impasse In Data Breach Coverage Dispute

    ORLANDO, Fla. — A Florida federal court reported in a Jan. 7 docket note that an insured and its cyber and data risk insurer reached an impasse following mediation of the insured’s breach of contract and declaratory judgment lawsuit arising from a 2024 data breach that caused interruption to its financial technology business.

  • January 08, 2026

    Illinois Panel Affirms Ruling In Favor Of Insurer, Agent In Negligence Suit

    SPRINGFIELD, Ill. — An Illinois appeals panel affirmed a lower court’s grant of summary judgment in favor of a homeowners insurer and its agent, holding that the agent did not owe a duty to procure coverage for water damage to the vacant property that the insured never specifically requested and, as a result, the insured’s negligence claim against the agent and respondeat superior claim against his employer fail.

  • January 08, 2026

    Kentucky High Court: No Coverage Owed For Suit Arising From Wrongful Prosecution

    FRANKFORT, Ky. — The Kentucky Supreme Court affirmed an appeals court’s ruling that affirmed a lower court’s ruling in favor of an insurer in a coverage dispute arising from an underlying lawsuit alleging personal injuries from a wrongful prosecution, holding that, for insurance purposes, the personal injury occurred more than a decade before the onset of the coverage period.

  • January 07, 2026

    COMMENTARY: 2025 Key Insurance Decisions, Trends, & Developments & A Look Ahead To 2026

    By Scott M. Seaman, Pedro E. Hernandez and Jordan W.P. Evans

  • January 08, 2026

    Judge Refuses To Dismiss Insurer’s Suit Arising From Injury At Cryotherapy Facility

    LOS ANGELES — A federal judge in California refused to dismiss an insurer’s lawsuit seeking a declaratory judgment that its business owners liability insurance policy’s professional services exclusion bars coverage for a patient’s underlying action alleging that she was injured at a cryotherapy facility while receiving medical treatment from the insured, also denying the insured’s motion to dismiss the insurer’s claim seeking reimbursement of the $275,000 it paid to settle the underlying action on its insured’s behalf.

  • January 08, 2026

    California FAIR Plan Sued Over Alleged Unlawful Wildfire Smoke Claim Denials

    LOS ANGELES — A pair of property insurance policyholders sued the California FAIR Plan Association in state court alleging that the state’s “insurer of last resort”engaged in bad faith insurance practices and breach of contract by relying on unlawful policy provisions to deny or underpay wildfire smoke contamination and loss-of-use claims arising from the January 2025 Los Angeles wildfires, in violation of California insurance law.

  • January 07, 2026

    Judge Denies Insured’s Motion To Stay Coverage Suit Pending Ruling On MDL Claims

    JOHNSTOWN, Pa. — A federal judge in Pennsylvania on Jan. 6 denied an insured’s motion to temporarily stay its breach of contract and declaratory judgment lawsuit seeking coverage for an underlying multidistrict litigation over allegations that it violated the Computer Fraud and Abuse Act, the Stored Communications Act, the Michigan Identity Theft Protection Act and Ohio data security laws, holding that the issues of coverage are not relevant to and will not be resolved by the MDL.

  • January 07, 2026

    Insurer Disputes Coverage For Suit Seeking Damages For Minor’s Video Game Addiction

    JONESBORO, Ark. — An insurer filed suit in an Arkansas federal court seeking a declaratory judgment that it has no duty to defend or indemnify its insured against an underlying lawsuit seeking damages for video game addiction and/or internet gaming disorder that was allegedly suffered by a minor.

  • January 06, 2026

    Florida Panel Reverses For New Trial On Damages In Suit Against Insurance Broker

    DAYTON BEACH, Fla. —Noting that the case was one of first impression, the Fifth District Florida Court of Appeal concluded that a lower court erred by allowing a jury to calculate damages against an insurance broker based on an insurance policy that an earlier panel determined does not provide coverage for restaurant insureds’ damage following Hurricane Matthew, reversing in part and remanding for a retrial limited solely to damages without reliance on the insurance policy.

  • January 06, 2026

    Panel Affirms Rulings In Favor Of Insurer In Suit Arising From Casino Altercation

    TRENTON, N.J. — A New Jersey appeals panel affirmed a lower court’s rulings in favor of a homeowners insurer in a coverage dispute arising from a physical altercation at an Atlantic City casino, finding no error in the lower court’s conflict-of-law analysis and application of New York law in interpreting the homeowners insurance policy at issue.

  • January 06, 2026

    9th Circuit Vacates, Remands Summary Judgment Ruling In Favor Of D&O Insurer

    LAS VEGAS — The Ninth Circuit U.S. Court of Appeals vacated and remanded a lower federal court’s summary judgment ruling in favor of a directors and officers liability insurer in a coverage dispute over underlying claims for breach of contract, fraud and quantum meruit brought against an insured, holding that the lower court erred in determining that a policy exclusion barred coverage.

  • January 05, 2026

    Judge Declines To Exercise Jurisdiction In Coverage Suit Over City’s Stormwater Fees

    DETROIT — A federal judge in Michigan granted Ann Arbor’s motion to dismiss its insurer’s declaratory judgment lawsuit disputing coverage for an underlying action challenging the constitutionality of the city’s stormwater fees, noting that state courts have “already invested substantial judicial resources in addressing this matter and allowing them to proceed without federal interference promotes comity, avoids duplicative litigation, and reduces the risk of inconsistent outcomes.”

  • December 23, 2025

    Shepard’s Analysis Of U.S. Supreme Court Bankruptcy Standing Ruling

    As of Dec. 19, 52 federal court decisions have referenced the U.S. Supreme Court’s 2024 holding in an asbestos bankruptcy case that an insurer with financial responsibility for bankruptcy claims qualifies as a party in interest with standing to comment on a debtor’s plan of reorganization, rejecting the “insurance neutrality” doctrine that had barred such participation, according to a Shepard’s analysis of the high court’s opinion.

  • December 12, 2025

    2nd Circuit: Insurers Have No Duty To Defend, Indemnify ‘Ghost Guns’ Suits

    NEW YORK — The Second Circuit U.S. Court of Appeals affirmed a lower federal court’s judgment in favor of insurers in their lawsuit disputing coverage for underlying actions arising from their firearm manufacturer insured’s alleged sales of “ghost gun” parts and kits brought by New York state and two cities against their firearm manufacturer insured, holding that the underlying claims fail to allege an “accident” to trigger coverage.

  • December 11, 2025

    Judge: Insurer Has Duty To Defend Cosmetics Company Against Consumer Fraud Suits

    LOS ANGELES — A federal judge in California held that a commercial general liability insurer has a duty to defend its cosmetic company insured against three underlying putative class action lawsuits alleging that the insured deceptively sold beauty products by failing to disclose the dangerous risks and side effects of lash enhancement serums’ “key ingredient,” further concluding that the policy’s unfair competition exclusion does not bar coverage.

  • December 11, 2025

    Insurers Say No Coverage Owed For Suit Arising From Hyperbaric Chamber Death

    FLINT, Mich. — Insurers ask a federal court in Michigan to declare that they have no duty to defend or indemnify their insured and its employees against an underlying negligence lawsuit arising from the death of a minor who was receiving hyperbaric oxygen therapy treatment at the insured’s facility.