Mealey's Emerging Insurance Disputes : Mealey's : Legal News & Analysis

Mealey's Emerging Insurance Disputes

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.
September 16, 2025
Federal Judge Grants Insurer’s Motion To Dismiss Wrongful Death Coverage Suit

MOBILE, Ala.— A federal judge in Alabama granted an insurer and its claims handling entity’s motion to dismiss an insured’s lawsuit alleging that the insurer wrongfully denied additional insured coverage to the insured’s franchisor for an underlying wrongful death action, ruling that the insured tried to add a new claim to a lawsuit “over which the court lacked jurisdiction, root and branch.”
September 16, 2025
Judge Rules On Summary Judgment Motions In Copyright Infringement Coverage Suit

WILMINGTON, Del. — A Delaware judge granted in part and denied in part primary and excess insurers’ motions for summary judgment in a coverage dispute arising from copyright infringement claims brought against an insured, finding that the movie studio’s claims against the insured are not indemnifiable but the record company claims against the insured are potentially indemnifiable.
September 16, 2025
Insurers Fail To Settle Equitable Contribution Suit Over Unlawful Recording Claims

SAN DIEGO — A federal court in California on Sept. 15 reported that following an early neutral evaluation conference, a cyber liability insurer and a defendant insurer did not reach a settlement of the cyber liability insurer’s lawsuit seeking equitable contribution and indemnification for an underlying lawsuit alleging that their mutual insured intentionally failed to disclose that hidden cameras were installed in operating rooms and recorded patient procedures in an effort to investigate drug theft.
September 16, 2025
Insurer Moves For Judgment To Appeal Ruling In Suit Brought By Petroleum Company

HONOLULU — An insurer moved for entry of judgment on Sept. 12 so it can immediately appeal a federal court in Hawaii’s summary judgment ruling against it in a lawsuit filed by an insured petroleum company seeking coverage for underlying claims that the company is responsible for contributing to the effects of global warming based on its failure to warn of the hazards of using fossil fuel products, challenging the court’s finding that it has a duty to defend under two policies that did not include pollution exclusions.
September 16, 2025
Judge Dismisses Section 155 Counterclaim In Professional Liability Coverage Dispute

CHICAGO — A federal judge in Illinois granted a professional liability insurer’s motion to dismiss an insured’s counterclaim for violation of Illinois Insurance Code Section 155 in a coverage dispute arising from underlying claims for breach of implied contract and quantum meruit brought against the insured, finding that the insured’s allegations in its counterclaim “are too conclusory to survive” the insurer’s motion to dismiss.
September 15, 2025
Split 9th Circuit: Totaled Vehicles’ Actual Value Dooms Class Certification

PHOENIX — Individual questions surrounding the calculation of the actual cash value (ACV) of insureds’ totaled vehicles predominate, preventing certification of a class of Progressive customers, a divided Ninth Circuit U.S. Court of Appeals panel ruled Sept. 12, affirming a trial court denial of class certification.
September 15, 2025
No Coverage Owed For Negligence Suit Against Group Home, Judge Rules

DULUTH, Minn. — A federal judge in Montana held that a commercial general liability insurer has no duty to defend its insured against an underlying negligence lawsuit, concluding that no coverage was triggered because the underlying complaint alleges only mental injuries and not bodily injury, sickness or disease.
September 12, 2025
Microcaptive Owners’ Bid For 5th Circuit Rehearing Denied In IRS Penalty Dispute

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals denied a petition for rehearing en banc filed by the owners of a microcaptive insurance company, leaving intact its decision that their microcaptive arrangements did not achieve risk distribution and therefore could not qualify as insurance for federal tax purposes.
September 12, 2025
Judge: No Bodily Injury Alleged, No Coverage For Employee’s Suit Against McDonald’s

CHICAGO — A federal judge in Illinois granted a commercial general liability insurer’s motion for summary judgment and denied McDonald’s motion for summary judgment in the restaurant franchise’s breach of contract lawsuit seeking coverage for an underlying negligence action brought by an employee, determining that the underlying allegations fail to allege an actual physical injury to trigger coverage under the CGL policy.
September 09, 2025
Insurer Owes Defense For Class Action Alleging Defective Oil, 1st Circuit Affirms

BOSTON — The First Circuit U.S. Court of Appeals on Sept. 8 affirmed a lower federal court’s ruling that a commercial general liability and umbrella insurer has a duty to defend its insured against an underlying customer class action alleging that the insured caused harm by adding biodiesel fuel to its home heating oil in proportions that exceeded industry standards, rejecting the insurer’s argument that the known loss and loss-in-progress policy provisions relieve it of its duty to defend.
September 09, 2025
New York Justice Grants Archdiocese’s Summary Judgment Motion Against Certain Insurers

NEW YORK — A New York justice on Sept. 8 granted the Archdiocese of New York’s motion for partial summary judgment against London Market Insurers (LMI) in the archdiocese’s coverage dispute arising from close to 1,700 underlying sexual abuse lawsuits, declaring that LMI must pay its solvent shares of its full policy limit of $200,000 per covered occurrence from May 1, 1975, to May 14, 1978, and $300,000 per covered occurrence from May 15, 1978, to Sept. 1, 1978, in excess of the policy’s $100,000-per-occurrence retention.
September 09, 2025
Defendant Seeks Rehearing In Insurer’s Subrogation Suit Prompted By Jet Damage

SAN FRANCISCO — An aircraft facility operator on Sept. 8 filed a petition asking the Ninth Circuit U.S. Court of Appeals to reconsider its opinion 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, challenging the court’s 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 08, 2025
Connecticut Majority Affirms Ruling In Broker’s Favor In Insureds’ Negligence Suit

HARTFORD, Conn. — In an opinion scheduled for official release on Sept. 9, a majority of the Connecticut Supreme Court held that an insurance broker did not have a duty to inform insureds that their homeowners insurer did not intend to renew their insurance policy and rejected the insureds’ argument that their long-standing and special relationship with the broker created a legal duty requiring it to provide them with notice of the insurer’s nonrenewal.
September 05, 2025
Insured Appeals No Coverage Ruling For Coffee Farmers’ False Advertising Claims

HONOLULU — An insured notified a federal court in Hawaii on Sept. 4 that it is appealing the court’s order granting summary judgment in favor of an insurer in a coverage dispute arising from claims that the insured falsely advertised that the coffee it sold contained 100% Kona coffee.
September 04, 2025
Judge: No Coverage Owed For Disparagement Suit Brought By Maker Of COVID-19 Test

ALLENTOWN, Pa. — A federal judge in Pennsylvania granted a commercial umbrella insurer’s motion for judgment on the pleadings in an insured’s lawsuit seeking personal and advertising injury coverage for an underlying disparagement lawsuit alleging that it sent 19,000 letters to Chester County residents asserting that the COVID-19 test kits they used were unreliable, finding that the underlying complaint does not state a claim for negligent trade libel and the insurer has met its burden in establishing that the professional services and knowing publication exclusions bar coverage.
September 04, 2025
Underwriting Association Dispute With Pennsylvania Governor Dismissed As Resolved

HARRISBURG, Pa. — Pursuant to a letter indicating a resolution, a Pennsylvania federal court issued a docket annotation dismissing a dispute over whether the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides coverage to health care providers including those previously insured by insurers in liquidation, is a public entity rather than a private one.
September 03, 2025
Owner Of Former MiLB Team Seeks $5.5M From National Association’s D&O Insurer

CONCORD, N.H. — The owner and operator of a former minor league baseball team filed a lawsuit in a New Hampshire federal court alleging that the National Association of Professional Baseball Leagues Inc.’s insurer breached a directors and officers liability insurance policy by failing to pay a $5,550,000 judgment awarded against its insured in an underlying breach of fiduciary lawsuit.
September 03, 2025
Judge: Workers’ Compensation, Employers Liability Exclusions Bar CGL Coverage

FORT PIERCE, Fla. — A federal judge in Florida granted in part and denied in part defendants’ motion to dismiss an insurer’s lawsuit seeking a declaration that it has no duty to defend and indemnify its insured against an underlying negligence lawsuit arising from a worker injury, finding that the commercial general liability insurance policy’s workers’ compensation and employers liability exclusions bar coverage.
September 02, 2025
Insured’s Audit Expenses Covered Under Extra Expense Provision, 2nd Circuit Affirms

NEW YORK — The Second Circuit U.S. Court of Appeals on Sept. 2 affirmed a lower federal court’s ruling in favor of Arizona Beverages USA LLC in its breach of contract lawsuit against its insurer, finding that the full amount of the insured’s $552,573.25 audit expenses arising from damage caused by a power surge is covered under the insurance policy’s Extra Expense provision.
September 02, 2025
Summary Judgment Granted For Insurer In Dispute Over Yacht Fire Damage Coverage

SAN JUAN, Puerto Rico — A Puerto Rico federal judge granted in part summary judgment to a yacht insurer in a fire coverage dispute in which the insurer sought to void the policy for purported material misrepresentations in the policy application, finding that the omitted information in the application “was material as a matter of law.”
August 29, 2025
Panel Partly Reverses Ruling In Insurer’s Subrogation Suit Prompted By Jet Damage

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals 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 an aircraft facility that was operated by the defendant, finding that there is a genuine dispute of material fact regarding whether it was reasonable for the defendant to conclude that the pilot had the apparent authority to bind the aircraft owner to the limitation of liability provision of the landing card.
August 29, 2025
Judge: Motor Vehicle Exclusion Bars Coverage For Negligence Suit Against Minor’s Parents

SPOKANE, Wash. — A Washington federal judge on Aug. 28 held that a manufactured home insurance policy’s motor vehicle exclusion barred coverage for an underlying negligence lawsuit brought against the parents of a minor who was driving a golf cart that struck and injured a pedestrian, granting the insurer’s motion for partial summary judgment seeking a declaration that it has no duty to defend.
August 29, 2025
Assignee’s Bad Faith, Breach Claims In Dog Attack Suit Will Proceed Against Insurer

SAVANNAH, Ga. — An assignee’s claims alleging breach of the duty to settle, breach of the duty to pay and bad faith failure to settle will proceed against a homeowners insurer because a possibility of coverage exists under the insured’s policy for an underlying complaint filed against the insured and stemming from a dog attack, a Georgia federal judge said in denying the insurer’s motion to dismiss.