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

Mealey's Emerging Insurance Disputes

September 13, 2024
Utah Judge Rules For Insurer In Coverage Dispute Over Ill. BIPA Violation Claims

SALT LAKE CITY — A Utah judge entered judgment in favor of a general liability insurer in its declaratory judgment lawsuit disputing coverage for an underlying action alleging its insured violated the Illinois Biometric Information Privacy Act (BIPA), finding that various policy exclusions bar coverage.
September 11, 2024
BIPA Violation Suit Did Not Trigger Coverage, Illinois Majority Rules In Reversal

CHICAGO — A majority of an Illinois appeals court panel on Sept. 10 held that an underlying lawsuit alleging that an insured violated the Biometric Information Privacy Act did not trigger coverage under its “Cyber, Data Risk, and Media Insurance” policies, reversing the lower court’s summary judgment ruling in favor of the insured and remanding for the court to enter summary judgment in favor of the insurer on the issue of its duty to defend.
September 11, 2024
5th Circuit Affirms Ruling In Insurer’s Subrogation Suit On Other Grounds

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Sept. 10 held that an oil well operator is not liable to the excess insurer of an oilfield consultancy, affirming on other grounds a lower federal court’s grant of summary judgment in favor of the oil well operator in the insurer’s subrogation breach of contract lawsuit seeking reimbursement for the $5 million it paid toward the settlement of an underlying injury lawsuit.
September 11, 2024
Panel: Court Lost Subject Matter Jurisdiction When It Allowed Insurer To Intervene

ATLANTA — The 11th Circuit U.S. Court of Appeals vacated a lower federal court’s grant of summary judgment in favor of hotel owners and operators in a negligence lawsuit arising from a slip-and-fall injury, finding that the lower court lost subject matter jurisdiction over the lawsuit when it granted an insurer’s motion to intervene.
September 11, 2024
Judge Dismisses $1M Crime Coverage Suit Following Stipulation By Law Firm, Insurer

FLINT, Mich. — Following a stipulation of dismissal by the parties, a federal judge in Michigan dismissed with prejudice a law firm insured’s breach of contract and bad faith lawsuit alleging that its insurer owed $1 million in crime coverage for its $1,602,107.98 in total losses stemming from a fraudulent funds transfer.
September 10, 2024
Panel Refuses To Reconsider Ruling In Insurer’s Favor In Suit Prompted By Pandemic

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals refused to reconsider its ruling that affirmed a federal court’s grant of summary judgment in favor of an insured in its breach of contract and bad faith lawsuit arising from the COVID-19 pandemic.
September 06, 2024
Panel: ‘Sound Reasons’ Exist Why Excess Insurers Should ‘Stay On The Sidelines’

SAN FRANCISCO — A California appellate panel on Sept. 5 affirmed a lower court’s ruling in favor of two excess insurers in a private equity management firm insured’s breach of contract and bad faith lawsuit, finding that “there are sound policy reasons why the excess insurers should stay on the sidelines” of the professional liability coverage dispute.
September 06, 2024
Washington Panel: Domestic Abuse Exception To Intentional Loss Exclusion Applies

SEATTLE — A Washington appeals court reversed a lower court’s summary judgment in favor of an insurer in an insured’s breach of contract and bad faith lawsuit seeking coverage for her losses arising from an assault and arson by her ex-husband, finding that the insured satisfied the domestic abuse exception to the policy’s intentional loss exclusion.
September 06, 2024
Texas High Court Refuses To Review Ruling In Coverage Dispute Over Wrongful Death

HOUSTON — The Texas Supreme Court denied an insured and its insurer’s petitions seeking review of an appeals court’s finding that they “conclusively established” that a defendant breached a contract by not maintaining the minimum required insurance coverages and not ensuring that the insured and its employees qualified as additional insureds but did not “conclusively” prove damages for the breaches.
September 05, 2024
Panel Reverses Ruling In Professional Liability Insurer’s Favor On Bad Faith Claim

DENVER — The 10th Circuit U.S. Court of Appeals on Sept. 4 reversed a lower federal court’s summary judgment ruling in favor of a professional liability insurer on a claim for bad faith in a coverage dispute arising from a medical malpractice lawsuit, finding that the lower court erred in concluding that the bad faith claim was time-barred.
September 04, 2024
5th Circuit Stands By Reversal In Professional Liability Suit Over Oil Spill Claims

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Sept. 3 denied plaintiffs’ request to reconsider last month’s reversal of a lower federal court’s enforcement of a settlement in a lawsuit alleging that law firm insureds committed legal malpractice by failing to properly handle plaintiffs’ claims for compensation of damages caused by the 2010 Deepwater Horizon oil spill, finding that there was no enforceable settlement because the defendants did not accept the plaintiffs’ counteroffer.
September 04, 2024
11th Circuit: Accounting Not Performed For Financial Institution, No Coverage Owed

ATLANTA — The 11th Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of summary judgment in favor of a professional liability insurer in a breach of contract lawsuit brought by assignees of an accounting services provider insured, finding that no coverage is owed for the insured’s alleged liability arising from its audit of a food services company because the insured’s accounting was not performed for a financial institution.
September 04, 2024
Insurer Challenges Panel’s Affirmation Of Judgment In Favor Of Contractor’s Assignee

ATLANTA — An insurer asked the 11th Circuit U.S. Court of Appeals to reconsider its ruling that affirmed a lower federal court’s $557,500 summary judgment in favor of a contractor insured’s assignee in a lawsuit seeking coverage for damage incurred as a result of the insured’s misconduct.
September 04, 2024
Global Medical Device Company Dismisses Claims Against Primary D&O Insurer

FORT MYERS, Fla. — A primary directors and officers liability insurer and a global medical device company insured filed a joint stipulation of dismissal with prejudice of the insured’s breach of contract lawsuit seeking coverage for defense and settlement costs arising from an underlying False Claims Act lawsuit.
August 15, 2024
COMMENTARY: Campus Protests May Trigger Insurance Coverage For Property Damage And Economic Losses

By Amber Finch, Anthony Crawford and Adrienne Kitchen
September 03, 2024
5th Circuit Panel Refuses To Reconsider Dismissal Of $192M Coronavirus Coverage Suit

NEW ORLEANS — A panel of the Fifth Circuit U.S. Court of Appeals in an Aug. 30 per curiam order denied Texas’ largest nonprofit health system petition seeking rehearing en banc of a majority opinion that affirmed a lower federal court’s ruling in favor of its commercial property insurer in its lawsuit seeking coverage for $192 million in business interruption losses arising from the coronavirus pandemic.
September 03, 2024
Parties Dismiss Counterclaims In Coverage Dispute Over Earplug Liability Suits

WILMINGTON, Del. — Plaintiffs and their insurer on Aug. 30 agreed to voluntarily dismiss two of the insurer’s counterclaims four days after a Delaware judge denied the plaintiffs’ motion for reargument of his ruling in favor of liability insurers in a coverage lawsuit arising from an underlying earplug product liability multidistrict litigation that resulted in a $6 billion settlement and millions of dollars of defense costs.
August 30, 2024
Texas Panel: Court Lacked Jurisdiction For Coverage Dispute Over Drowning Death

HOUSTON — A Texas appeals panel on Aug. 29 held that a lower court lacked subject matter jurisdiction over a plaintiff insurer’s declaratory judgment claim and a defendant insurer’s counterclaim in a coverage dispute arising from a drowning death, reversing the lower court’s judgment in part and rendering judgment dismissing the lawsuit for lack of jurisdiction.
August 30, 2024
Louisiana Panel: Court Erred In Denying CGL Insurer’s Exception Of Res Judicata

NEW ORLEANS — A Louisiana appeals court reversed the part of a lower court’s judgment that denied a commercial general liability insurer’s exception of res judicata in a coverage dispute over injuries that occurred at a construction site, finding that the insurer satisfied all of the elements on an exception of res judicata.
August 30, 2024
Judge Rules In Favor Of D&O Insurer In Bad Faith Suit Seeking Indemnification

HARTFORD, Conn. — A Connecticut judge granted a directors and liability insurer’s motion for summary judgment in a lawsuit seeking satisfaction of a $1,901,056 underlying stipulated judgment and alleging a claim for bad faith, finding that the underlying damages are restitutionary in nature and, as a result, not covered under the D&O policy.
August 29, 2024
No Coverage Owed To 7-Eleven For Bodily Injury Suit, Federal Judge Rules

MIAMI — A federal judge in Florida granted insurers’ motion for summary judgment in a 7-Eleven store’s declaratory judgment lawsuit seeking coverage for a customer’s underlying bodily injury action alleging that a 7-Eleven employee physically struck him numerous times, finding that the general liability insurance policy’s assault and battery exclusion applied and the liquor liability insurance policy is inapplicable.
August 29, 2024
Judge Dismisses Coverage Dispute Over $1M Settlement Of Canceled Music Festival

AUSTIN, Texas — Two days after the parties filed a joint stipulation of dismissal, a federal judge in Texas on Aug. 28 dismissed an insured’s lawsuit seeking coverage for an underlying $1 million class action settlement arising from the insured’s refusal to refund ticket sales for the South by Southwest festival that was canceled due to the COVID-19 pandemic.
August 29, 2024
9th Circuit Certifies Equitable Subrogation Question To Nevada Supreme Court

PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Aug. 28 certified a question to the Nevada Supreme Court in an equitable subrogation lawsuit arising from an underlying wrongful death action, asking the state’s highest court to determine: “Under Nevada law, can an excess insurer state a claim for equitable subrogation against a primary insurer where the underlying lawsuit settled within the combined policy limits of the insurers?”
August 29, 2024
Sexual Misconduct Exclusion Ambiguous, Nevada Federal Judge Determines

LAS VEGAS — An insured’s assignee, who is seeking to satisfy a $20 million judgment entered against the insured, is entitled to summary judgment on a breach of contract claim because the policy’s sexual misconduct exclusion is ambiguous and must be construed in favor of coverage, a Nevada federal judge said in granting the assignee’s motion.
August 29, 2024
Panel: Coach’s $1.77M Attorney Fee Award In Suit Over Prayer Is Barred From Coverage

SEATTLE — A Washinton appeals panel affirmed a lower court’s summary judgment ruling in favor of an insurer in a school district insured’s breach of contract lawsuit seeking indemnification for the $1.77 million attorney fee award it paid a high school football coach after a divided U.S. Supreme Court concluded that it erred when it removed the coach from his job for praying on the field after games because such expressions are constitutionally protected, finding that the award is excluded from coverage.