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

Mealey's Emerging Insurance Disputes

September 29, 2025
9th Circuit Affirms Court’s Denial Of Insured’s Request For Attorney Fees

SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s denial of an insured’s motion for attorney fees and costs after the court granted the insured’s motion to remand a coverage dispute arising from a shooting at the insured’s apartment complexes, finding that the insured’s characterization of the insurer’s “notice of removal as a fabrication and a misrepresentation of fact is a bridge too far.”
September 29, 2025
Texas High Court Denies Review In COVID-19 Contamination Suit

AUSTIN, Texas — The Texas Supreme Court on Sept. 26 denied an insured’s petition for review of a state appellate court’s ruling that a contamination exclusion bars coverage for the insured’s claim seeking coverage for damages and losses incurred as a result of the coronavirus.
September 29, 2025
Texas High Court Won’t Review Baylor College Of Medicine’s COVID-19 Coverage Suit

AUSTIN, Texas — The Texas Supreme Court on Sept. 26 denied Baylor College of Medicine’s petition seeking review of an appeals court’s conclusion that the presence of the COVID-19 virus at its premises did not cause “direct physical loss of or damage to” its property, challenging the appeals court’s reversal of a lower court’s judgment following a jury verdict in the school’s favor.
September 29, 2025
Judge Dismisses Coverage Suit Arising From Claims Against U.S. Paralympic Committee

DENVER — A federal judge in Colorado dismissed without prejudice a commercial general liability insurer’s lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify the U.S. Olympic & Paralympic Committee (USOPC) for a Paralympic swimmer’s lawsuit alleging that a team member sexually assaulted and harassed him and that USOPC failed to warn his parents about the team member or to supervise the accused, finding that the court lacks subject matter jurisdiction.
September 26, 2025
6th Circuit Affirms Ruling In Insurance Row Involving Chris Brown Recording Studio

CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Sept. 25 affirmed a lower court ruling requiring the insurer of a recording studio owned by musician Chris Brown to pay out the majority of a $2.5 million jury verdict to a co-defendant and lessee of the studio after Brown was previously found liable for submitting a fraudulent insurance claim for burglary and fire at the studio, finding in part that the insurer may not challenge the award going to the lessee pursuant to arguments the insurer could have brought previously.
September 25, 2025
No Coverage For Claims Arising From Fatal Car Crash, Kentucky High Court Affirms

FRANKFORT, Ky. — The Kentucky Supreme Court affirmed a Kentucky Court of Appeals majority’s reversal of a summary judgment ruling in favor of insureds in an insurer’s lawsuit seeking a declaration as to commercial umbrella insurance coverage for underlying claims arising from a fatal car accident that was caused by a patron of the insured’s business, ruling that the unambiguous commercial umbrella policy does not provide coverage.
September 24, 2025
Maine High Court Affirms Ruling In Insurer’s Favor In Reach-And-Apply Suit

PORTLAND, Maine — The Maine Supreme Court on Sept. 23 affirmed a lower court’s summary judgment ruling in favor of an insurer in a reach-and-apply lawsuit seeking to recover the remainder of an underlying stipulated judgment arising from an injury, finding that there is no genuine issue of material fact that the injury at the property is excluded under the policy.
September 24, 2025
Texas Panel Partly Rules In Favor Of Insurers In Coronavirus Coverage Suit

DALLAS — A Texas appellate panel held that a lower court erred in granting summary judgment in favor of certain commercial property insurers in a breach of contract and bad faith lawsuit arising from the coronavirus pandemic, finding that one of the “follow-form” insurance policies included a coverage-extension endorsement that was not present in the lead policy and the insurer that issued that policy failed to demonstrate that the contamination exclusion superseded the endorsement.
September 23, 2025
N.J. Panel Affirms Denial Of Insurer’s Motion To Disqualify Insured’s Attorney

TRENTON, N.J. —A New Jersey appeals panel on Sept. 22 affirmed a lower court’s denial of an insurer’s motion to disqualify an insured’s attorney in a coverage dispute over an $772,500 theft claim, rejecting the insurer’s argument that the attorney was a necessary witness for trial and also agreeing with the lower court’s decision to quash the insurer’s subpoena served on the attorney and issue a protective order barring the insurer from seeking the attorney’s disqualification.
September 23, 2025
No Coverage Triggered For Sexual Misconduct Suit Against Teacher, Panel Affirms

CHICAGO — An Illinois appellate panel affirmed a lower court’s dismissal of a teacher’s breach of contract lawsuit against an insurer seeking general liability coverage for an underlying sexual misconduct lawsuit that was dismissed for want of prosecution, agreeing with the lower court that the events required to trigger coverage did not occur.
September 22, 2025
Delaware Judge Dismisses Excess Insurer From D&O Coverage Suit Over Qui Tam Action

WILMINGTON, Del. — A Delaware judge on Sept. 19 signed an order dismissing with prejudice insureds’ lawsuit against their excess insurer seeking directors and officers liability coverage for an underlying qui tam action four days after the parties filed a stipulation of dismissal.
September 22, 2025
Following Mediation, Parties In D&O Excess Coverage Dispute Reach ‘Total Impasse’

MIAMI — A mediator told a Florida federal court on Sept. 19 that an excess directors and officers liability insurer and a law firm participated in mediation and failed to resolve the law firm’s lawsuit seeking payment for its legal representation of the insured in underlying criminal and civil lawsuits.
September 19, 2025
Policy’s Delay Warranty Bars Coverage For Damaged Blood Plasma, 11th Circuit Rules

ATLANTA — The 11th Circuit U.S. Court of Appeals held Sept. 18 that an insurer has no duty to cover the cost of blood plasma that was destroyed due to a shipping delay, concluding that coverage is barred by the policy’s warranty “for loss, damage, or deterioration arising from delay.”
September 19, 2025
CGL Insurer, City Settle Coverage Dispute Over Wrongful Conviction Settlement

DURHAM, N.C. — A mediator filed a report notifying a North Carolina federal court that a commercial general liability insurer and the city of Concord, N.C., have fully settled the city’s breach of contract and declaratory judgment lawsuit alleging that the insurer has a duty to defend, indemnify and contribute to a $9.3 million settlement of an underlying wrongful conviction lawsuit.
September 18, 2025
Judge Refuses To Strike Breach Of Contract Claim In Suit Against Insurance Broker

STAMFORD, Conn.— A Connecticut judge denied an insurance broker’s motion to strike a plaintiff’s breach of contract claim in its lawsuit alleging that the broker’s failure to recommend product recall insurance left the plaintiff uninsured for a food product recall loss.
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.