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

Mealey's Emerging Insurance Disputes

October 31, 2024
Judge Grants Final Approval To Nearly $20M Settlement Of Ticket Insurance Suit

SAN FRANCISCO — A California federal judge granted final approval to a nearly $20 million settlement resolving claims that insurers including Allianz Global Assistance (AGA) violated California’s unfair competition law (UCL) and other laws in relation to its online marketing of travel and event insurance, with the plaintiffs’ attorneys awarded nearly $5 million in attorney fees.
October 30, 2024
Tennessee Panel Affirms Default Ruling In Coverage Suit Over Wrongful Death Claim

NASHVILLE, Tenn. — A Tennessee appeals panel affirmed a lower court’s ruling that denied a defendant’s request to set aside a default that was entered against her in an insurer’s lawsuit disputing coverage for an underlying wrongful death claim, rejecting the defendant’s argument that a deputy failed to effectuate valid service of process of the complaint.
October 30, 2024
Insurer Removes City Of New York’s Coverage Suit To Federal Court

BROOKLYN, N.Y. — An insurer removed to a New York federal court the city of New York’s declaratory judgment lawsuit seeking additional insured coverage for an underlying negligence action brought on behalf of a decedent who died while staying at a city shelter.
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 29, 2024
Judge: Court Lacks Jurisdiction Over Coverage Dispute Arising From Abuse Claims

TRENTON, N.J. — A New Jersey federal judge on Oct. 28 granted the Diocese of Trenton’s motion to dismiss a general liability insurer’s declaratory judgment lawsuit challenging coverage for underlying abuse lawsuits, finding that the district court lacks subject matter jurisdiction to adjudicate the insurer’s claims because the insurer “relies on a strictly hypothetical controversy that may never occur.”
October 29, 2024
4th Circuit Refuses To Certify Question In Suit Over Lender’s Insurance Premiums

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals denied a motion by a plaintiff in a putative class action to certify “an important question of law” to the Maryland Supreme Court in his appeal arguing that the Credit Grantor Closed End Credit Provisions (CLEC) “strictly prohibit” a mortgage lender’s charge of insurance premiums in connection with a loan and seeking reversal of a lower federal court’s ruling that granted the lender’s motion for judgment.
October 28, 2024
Panel Refuses To Vacate Ruling In Favor Of Professional Liability Insurer

ATLANTA — A panel of the 11th Circuit U.S. Court of Appeals denied a request by assignees of an accounting services provider insured to vacate its ruling that affirmed a lower federal court’s grant of summary judgment in favor of a professional liability insurer in their breach of contract lawsuit.
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.
October 28, 2024
More Briefing Ordered In Microcaptive Case Involving Economic Substance Doctrine

WASHINGTON, D.C. — A U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the “economic substance doctrine” in regard to the remaining issue of accuracy-related penalties has directed the parties to file simultaneous briefs by Dec. 19.
October 28, 2024
Insurer: No Employment Practices Liability Coverage Owed For 2 Class Actions

SEATTLE — An insurer filed suit in a Washington federal court seeking a declaration as to employment practices liability coverage for two underlying putative class actions alleging that its insureds violated state law requiring employers to disclose the range in salary for posted job openings.
October 25, 2024
4th Circuit Affirms Ruling In Insurer’s Favor In Suit Over Cryptocurrency Loss

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Oct. 24 affirmed a lower federal court’s dismissal of an insured’s breach of contract lawsuit seeking homeowners insurance coverage for his alleged $170,000 cryptocurrency loss, agreeing with the lower court that the insured’s loss of cryptocurrency is not a “direct physical loss” to trigger policy coverage.
October 25, 2024
U.S., Ship Owner File Settlement Notice In Exoneration Suit Over Bridge Collapse

BALTIMORE — The United States and the owner and technical manager of the ship that allided with and destroyed the Francis Scott Key Bridge in Baltimore filed a joint notice on Oct. 24 indicating they have reached a settlement and asked a Maryland federal court to dismiss the United States’ Sept. 18 claim and answer to the ship owner’s petition for exoneration from or limitation of liability for the casualties and damage arising from the bridge collapse.
October 24, 2024
Pennsylvania Court Dismisses MCARE Fund From Professional Liability Coverage Suit

HARRISBURG, Pa. — A Pennsylvania court dismissed Medical Care Availability and Reduction of Error Fund (MCARE Fund) from a petition seeking professional liability coverage for a $1 million settlement of an underlying malpractice lawsuit, concluding that MCARE Fund has no statutory obligation to act as the primary insurer and indemnify and defend the insured.
October 24, 2024
Driver’s Claims For Larger COVID-19 Refunds Properly Dismissed, 9th Circuit Told

SAN FRANCISCO — GEICO in an Oct. 23 appellee brief tells the Ninth Circuit U.S. Court of Appeals that a federal judge properly granted summary judgment on an insured driver’s class action claim against it for violating California’s unfair competition law (UCL) by providing drivers an insufficient rebate on premiums after COVID-19, arguing that its rebate was fair under the relevant policy and state insurance regulations.
October 23, 2024
Substantial Nexus Existed Between Burn Incident, Vehicle Use, Panel Says In Reversal

TRENTON, N.J. — A New Jersey appeals panel on Oct. 23 reversed a lower court’s ruling in favor of an automobile insurer in an insured’s lawsuit seeking personal injury protection (PIP) benefits for her injuries caused when a hot beverage spilled on her when she was sitting in her car at a Dunkin’ Donuts’ drive-through, finding that the insured’s injuries were a “natural and reasonable . . . consequence” of the use of her vehicle and, therefore, a substantial nexus existed between the injury incident and her vehicle use.
October 23, 2024
Connecticut Judge Rules For Insurer In Coverage Suit Over Assault Claims

NEW BRITAIN, Conn. — A Connecticut judge granted a homeowners insurer’s motion for summary judgment in its lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify its insured against underlying assault claims, finding that the insured’s “alleged violent assault” was no “accident” and, therefore, was not an “occurrence” to trigger coverage under her policy.
October 22, 2024
Insurer Says It Owes No Defense, Indemnification For Data Breach Claim, Suit

SEATTLE — A media tech insurer filed suit in a Washington federal court seeking a declaration that it has no duty to defend or indemnify its financial services firm insured against a bank’s indemnification demand for a data breach incident and a related subrogation lawsuit brought by the bank’s insurer.
October 22, 2024
Illinois Panel Partly Reverses Ruling In Coverage Dispute Over Dog Attack

SPRINGFIELD, Ill. — An Illinois appeals panel reversed a lower court’s grant of summary judgment in favor of defendants in a homeowners insurer’s declaratory judgment lawsuit disputing coverage for bodily injury caused by a dog attack, finding that there is a genuine issue of material fact regarding whether the insured misrepresented her ownership of a pit bull.
October 22, 2024
Contamination Exclusion Bars Coverage For COVID-19 Losses, Federal Judge Says

SACRAMENTO, Calif. — An all-risk policy’s contamination exclusion bars coverage for losses sustained during the COVID-19 pandemic because a California appellate panel’s determination that a contamination exclusion bars coverage for COVID-19 losses is binding and warrants the same finding in a similar suit filed by insureds in federal court, a California federal judge said Oct. 21 in granting an insurer’s motion for summary judgment.
October 22, 2024
3rd Circuit Dismisses Urban Outfitters’ Appeal In Coronavirus Coverage Suit

PHILADELPHIA — One day after URBN US Retail LLC (Urban Outfitters) and its insurer filed a joint stipulation to dismiss, the Third Circuit U.S. Court of Appeals tossed Urban Outfitters’ appeal of a lower federal court’s dismissal of its coverage lawsuit arising from the coronavirus pandemic.
October 22, 2024
CGL Insurer Appeals Ruling That it Owes Hotel Defense For Sex Trafficking Claims

ATLANTA — A commercial general liability insurer filed a notice indicating that it is asking the 11th Circuit U.S. Court of Appeals to review a Georgia federal judge’s ruling that granted a hotel operator insured’s motion to dismiss its complaint to the extent that its seeks a declaration that it has no duty to defend against an underlying lawsuit alleging that the insured did not uphold its duty of care concerning the safety of its hotel and hotel guests by failing to prevent and respond to evidence of sex trafficking.
October 21, 2024
Insurer, Medical Product Manufacturer Settle Coverage Dispute

CONCORD, N.H. — Attorneys for an insurer and a medical product manufacturer insured notified a New Hampshire federal court that they have settled the insurer’s declaratory judgment lawsuit pertaining to 10 underlying class actions alleging that the insured manufactured and marketed medical devices used to clean positive airway pressure (CPAP) and bi-level positive airway pressure (biPAP) devices that were not safe or effective.
October 21, 2024
Insurer Voluntarily Tosses Suit Disputing Coverage For Fraud Claims Against Insureds

CHICAGO — The same day an insurer voluntarily dismissed its lawsuit seeking a declaration that it has no duty to defend or indemnify its insureds against underlying fraud claims, a federal judge in Illinois dismissed the lawsuit.
October 17, 2024
Federal Judge Dismisses Philadelphia Eagles’ COVID-19 Suit Against Insurer

PHILADELPHIA — A federal judge in Pennsylvania on Oct. 16 dismissed a lawsuit brought by the owner and operator of the Philadelphia Eagles football organization seeking a declaration as to coverage for its alleged losses arising from the coronavirus pandemic, noting that the court is bound by Ungarean v. CAN & Valley Forge Ins. Co. that was recently decided by the Pennsylvania Supreme Court.
October 15, 2024
Exclusion Bars Coverage For Farm Injuries, N.D. High Court Rules In Reversal

BISMARCK, N.D. — The North Dakota Supreme Court found that an insurance policy provides coverage for bodily injuries incurred by farm employees but not when the injury is related to their use of a motor vehicle, reversing a lower court’s finding that the motor vehicle exclusion does not apply to coverage that was added by a farm employer liability endorsement to the policy.