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

Mealey's Emerging Insurance Disputes

December 11, 2024
No Coverage Owed For Regal Cinemas’ Coronavirus Losses, 9th Circuit Affirms

PASADENA, Calif.— The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling in favor of insurers in Regal Cinemas’ breach of contract lawsuit seeking recovery for its revenue losses arising from the coronavirus pandemic, finding that, pursuant to New York law, Regal Cinemas was not insured for its alleged business losses.
December 10, 2024
Panel: Reservation Court Has Jurisdiction In Tribe’s Coronavirus Coverage Suit

PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals held that a tribal court has subject matter jurisdiction over an insurance company in a dispute over the tribe’s claims for business interruption losses at its casino caused by the coronavirus pandemic, affirming a lower federal court on the alterative ground that the insurance policy at issue satisfies Montana’s consensual-relationship exception.
December 10, 2024
No D&O Coverage Owed For Fraudulent Billing Suit, Illinois Panel Affirms

CHICAGO — An Illinois appeals panel determined Dec. 9 that a directors and officers liability insurer has no duty to defend or indemnify its insureds against an underlying fraudulent billing lawsuit because coverage is barred by the policy’s interrelated wrongful acts exclusion, affirming a lower court’s judgment in favor of the insurer.
December 10, 2024
Coverage Owed For Lead, Cadmium Exposure Suit, 3rd Circuit Affirms

PHILADELPHIA — An employers liability insurer has a duty to defend its employer against an underlying suit filed by a former employee and arising out of the former employee’s exposure to lead and cadmium fumes because a potential for coverage exists under the policy as it is not clear that the policy’s intentional injury exclusion bars coverage, the Third Circuit U.S. Court of Appeals said in affirming a district court’s ruling.
December 10, 2024
Insured, 2nd CGL Insurer Seek Dismissal Of Coverage Suit Over BIPA Violation Claim

CHICAGO — An insured and the remaining commercial general liability insurer in its lawsuit seeking a declaration as to coverage for an underlying putative class lawsuit alleging that it violated the Illinois Biometric Privacy Act (BIPA) filed a stipulation asking an Illinois federal court to dismiss with prejudice all claims between them.
December 10, 2024
Retail Furniture Insured Voluntarily Dismisses Coronavirus Coverage Suit

PHILADELPHIA — A retail furniture insured filed a notice in a federal court in Pennsylvania to voluntarily dismiss its lawsuit seeking coverage for its losses stemming from the forced closure of its business in response to the coronavirus pandemic.
December 09, 2024
California Panel: Abuse Or Molestation Exclusion Bars Coverage For Spa Owner

LOS ANGELES — A California appeals panel held that a commercial insurance policy’s “abuse or molestation” exclusion bars coverage for an underlying lawsuit alleging that a spa owner insured sexually assaulted and molested three of its customers during massage sessions, affirming a lower court’s summary judgment ruling in favor of the insurer in the insured’s breach of contract lawsuit.
December 09, 2024
Panel Affirms No Coverage Ruling In Convention Center’s Suit Arising From Pandemic

SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a federal court’s ruling that granted an insurer’s motion to dismiss an insured’s lawsuit seeking coverage for its business interruption losses arising from the COVID-19 pandemic, finding that the insured fails to show that coverage exists for its losses under the policy’s Civil or Military Authority provision and further concluding that the policy's contamination exclusion precludes coverage.
December 06, 2024
10th Circuit Issues Reversal Of Judgment For Liability Insurer In Coverage Row

DENVER — The 10th Circuit U.S. Court of Appeals reversed and remanded a district court’s judgment for a liability insurer in a dispute between it and a health insurer regarding coverage to the health insurer in an underlying multidistrict litigation antitrust dispute involving an excess errors and omissions (E&O) policy issued by a now-insolvent insurer.
December 05, 2024
Panel: Insurer Has No Duty To Defend, Indemnify City For Wrongful Death Suit

ATLANTA —The 11th Circuit U.S. Court of Appeals on Dec. 4 held that a general liability insurance policy unambiguously relieves the insurer of its duty to defend or indemnify its insured for an underlying wrongful death lawsuit, affirming a lower federal court’s dismissal of a direct action brought against the insurer by the daughter of a man who died in a holding cell at a Georgia jail.
December 04, 2024
Policy Exclusion Bars Coverage For BIPA Suit, Illinois Panel Rules In Reversal

CHICAGO — An Illinois appeals panel held that insurers have no duty to defend their insured against an underlying class action lawsuit alleging that the insured violated the Illinois Biometric Information Privacy Act (BIPA) because the policies’ “Recording and Distribution” exclusion barred coverage, reversing a lower court’s judgment in favor of the insured and remanding.
December 04, 2024
Delaware High Court Accepts Interlocutory Appeal In Earplug Liability Coverage Suit

WILMINGTON, Del. — The Delaware Supreme Court accepted plaintiffs’ application for certification of interlocutory appeal of a lower court’s summary judgment 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.
December 03, 2024
Panel Affirms Dismissal Of Amber Heard’s Counterclaims In Defamation Coverage Suit

PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeal affirmed a lower federal court’s dismissal of Amber Heard’s breach of contract and bad faith counterclaims in the insurer’s declaratory judgment lawsuit alleging that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.
December 03, 2024
Restaurant, Insurer Seek Dismissal Of Suit Over Looting Damage After Hurricane Maria

ST. CROIX, Virgin Islands — A restaurant insured and its insurer filed a stipulation in federal court in the Virgin Islands seeking dismissal with prejudice of all claims and counterclaims in their dispute over the insurer’s adjustment of the insured’s property damage claim and business interruption losses arising from looting after Hurricane Maria.
December 03, 2024
Judge Rules On Cross-Motions For Summary Judgment In BIPA Violation Coverage Suit

CHICAGO — A federal judge in Illinois granted in part and denied in part cross-motions for summary judgment filed by an excess insurer and a franchisee of the Burger King chain in its breach of contract lawsuit seeking a declaration that the insurer has a duty to defend it against an underlying putative class lawsuit alleging that it violated the Illinois Biometric Information Protection Act (BIPA).
December 03, 2024
Following John’s Grill, Panel Affirms No Coverage Ruling In COVID-19 Suit

SAN DIEGO — Reconsidering its earlier holding in favor of a diner insured in light of John's Grill, Inc. v. The Hartford Financial Services Group, Inc., a California appeals panel affirmed a lower court’s judgment in favor of an insurer in the diner’s lawsuit seeking coverage for its business losses arising from the COVID-19 pandemic.
December 02, 2024
Company Asks 4th Circuit To Reconsider Reversal Of Dismissal Of Insurer’s Claim

NEW ORLEANS — A marine and industrial construction company asked the Fifth Circuit U.S. Court of Appeals on Nov. 29 to reconsider its reversal of a lower federal court’s dismissal of an intervening insurer’s breach of contract claim against it in a coverage dispute arising from an underlying personal injury claim, challenging the panel’s finding that it was obligated to procure a Protection and Indemnity insurance policy that provided coverage for personal injuries that were incurred by the crew/employees.
December 02, 2024
4th Circuit Refuses To Reconsider No Coverage Ruling For Cryptocurrency Loss

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals denied an insured’s petition seeking a rehearing or rehearing en banc of its affirmation of a lower court’s dismissal of his breach of contract lawsuit seeking homeowners insurance coverage for his alleged $170,000 cryptocurrency loss.
December 02, 2024
Insurers To Pay $11.3 Million To New York State Over Data Breaches

ALBANY, N.Y. — New York Attorney General Letitia James and the New York State Department of Financial Services (DFS) have reached agreements with two national auto insurance companies under which they will pay a total of $11.3 million in penalties for “having poor data security,” which the attorney general said led to data breaches that exposed the personally identifiable information (PII) of their policyholders.
November 27, 2024
Federal Judge Rules For CGL Insurer In General Contractor’s Breach Of Contract Suit

BROOKLYN, N.Y. — A federal judge in Wisconsin granted a commercial general liability insurer’s motion for summary judgment in a general contractor insured’s breach of contract and declaratory judgment lawsuit seeking reimbursement for its cost of replacing defective covers for digesters that were owned by two agricultural companies, concluding that the insured has failed to submit admissible evidence to support its claim that coverage exists under the policy for “property damage” that was caused by an “occurrence” or that coverage exists under the policy’s “products-completed operations hazards” provision.
November 25, 2024
Panel Reverses Dismissal Of Insurer’s Claim Against Marine Construction Company

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals reversed a lower federal court’s dismissal of an intervening insurer’s breach of contract claim against a marine and industrial construction company in a coverage dispute arising from an underlying personal injury claim, finding that the company was obligated to procure a Protection and Indemnity insurance policy that provided coverage for personal injuries that were incurred by the crew/employees.
November 22, 2024
COMMENTARY: 2024 Key Insurance Decisions, Trends & Developments & A Look Ahead To 2025

By Scott M. Seaman, Pedro E. Hernandez and Lisa M. Roccanova
November 22, 2024
Justice: Insurer Has Duty To Defend And Reimburse Costs Of Personal Injury Suit

BROOKLYN, N.Y. — A New York justice held that a businessowners insurer has a duty to defend plaintiffs as additional insureds against an underlying personal injury lawsuit and a duty to reimburse the plaintiff insurer for underlying defense costs.
November 22, 2024
Judge Strikes Insurer’s Counterclaim Against Burger King Franchisee As Redundant

CHICAGO — A federal judge in Illinois granted a franchisee of the Burger King chain’s motion to strike an excess insurer’s declaratory judgment counterclaim in its breach of contract lawsuit seeking a declaration that the insurer has a duty to defend it against an underlying putative class lawsuit alleging that it violated the Illinois Biometric Information Protection Act (BIPA), finding that the counterclaim is redundant and “serves no useful purpose.”
November 22, 2024
California Appeals Panel Finds Tech Firm’s Claims Over Ransomware Attack Untimely

SAN JOSE, Calif. — A trial court properly dismissed a cloud solutions firm’s amended contractual cross-claims over its client’s ransomware attack as barred by the statute of limitations, a California appeals panel ruled, finding that the company’s decision to originally name its client’s insurer and subrogee as cross-defendant was intentional and not a mistake.