Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

October 30, 2024
Arbitration Bid Fought In Reinsurance Billing Row Involving MOU

LOS ANGELES — Urging a California federal court to reject an arbitration bid in a lawsuit over reinsurance billings arising from asbestos bodily injury claims, an insurer contends that the abstention doctrine doesn’t apply and that the arbitration clause is in a different agreement than the one at issue and doesn’t include the present billing dispute.
October 29, 2024
No Coverage Owed For Contamination Suits, Insurer Says In Amended Complaint

ROME, Ga. — Following the transfer of an environmental contamination coverage suit from Alabama to Georgia federal court, an insurer filed a second amended complaint, reiterating its contention that no coverage is owed for contamination caused by wastewater and perfluoroalkyl and polyfluoroalkyl substances (PFAS) stemming from an insured’s manufacturing facilities.
October 28, 2024
Insurer Asks California Court To Dismiss Subrogation Suit Against Roofer

LOS ANGELES — An insurer seeks dismissal with prejudice of its entire subrogation lawsuit against a roofer in a case that was consolidated with a condominium homeowners association’s breach of contract and bad faith lawsuit arising from storm damage to the roof of a Studio City building that housed 31 luxury condominiums.
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
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
Timely Notice, Other Issues Disputed In Reinsurer’s 5th Circuit Appeal

NEW ORLEANS — Contending in its appellee brief that the trial court “followed its obligation to effectuate the parties’ intent,” an insurer urged the Fifth Circuit U.S. Court of Appeals to uphold a $2,866,423.97 judgment against a reinsurer that includes attorney fees.
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
Reconsideration Of Dismissal Sought In Crop Insurance Extracontractual Damages Row

COOKEVILLE, Tenn. — Arguing that dismissal of their suit seeking extracontractual damages from a crop insurer “was incorrect and premature” because a related suit against federal regulators remains pending, farmers moved in Tennessee federal court for reconsideration of the ruling against them.
October 22, 2024
Remand Dispute In Reinsurance Row Focuses On Joint Powers Authority

LOS ANGELES — Whether a joint powers authority (JPA) is a citizen of California for purposes of diversity jurisdiction is disputed in a California federal court lawsuit over a reinsurer’s denial of coverage for litigation arising from sexual abuse allegations, with the JPA urging remand in its reply brief.
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
Asbestos, Pollution Exclusions Bar Coverage For Disposal Of Debris, Insurer Says

ROCK ISLAND, Ill. — No coverage is owed for an underlying suit filed against insureds who allegedly disposed of construction debris containing asbestos because the policy’s asbestos exclusion and pollution exclusion bar coverage for the improper disposal of the debris, a commercial general liability insurer says in a second amended complaint filed in Illinois federal court.
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
Reinsurers Move To Compel Arbitration In Billings Dispute Involving MOU

LOS ANGELES — Arguing that a dispute over reinsurance billings arising from asbestos bodily injury claims falls within the scope of the “broad” arbitration agreement in the excess of loss reinsurance treaty at issue, reinsurers in an Oct. 18 motion ask a California federal court to compel arbitration and dismiss or stay the case.
October 21, 2024
Insured Appeals No Coverage Ruling In Suit Over Improperly Constructed Walls

TACOMA, Wash. — An insured file a notice indicating it is asking the Ninth Circuit U.S. Court of Appeals to review a Washington federal judge’s findings that an insurance policy’s impaired property exclusion bars coverage for underlying damage caused by improperly constructed retaining walls and that the “sudden and accidental injury” exception to the exclusion does not apply.
October 21, 2024
CGL Insurer: Panel’s Opinion Contradicts Pennsylvania Law As To Faulty Workmanship

PHILADELPHIA — A commercial general liability insurer filed a petition for rehearing en banc challenging the Third Circuit U.S. Court of Appeals’ per curiam opinion that vacated a lower federal court’s summary judgment ruling in its favor in a coverage dispute arising from a construction company insured’s allegedly defective renovation work, arguing that the panel’s opinion “contradicts Pennsylvania law that faulty workmanship is not an ‘occurrence,’ regardless if the damage at issue extends beyond the scope of a contractor’s work.”
October 18, 2024
Contractor Appeals No Coverage Ruling In Suit Arising From Alleged Faulty Roof Work

NEW YORK — A contractor filed a notice indicating that it is appealing a New York federal court’s ruling that adopted a magistrate’s report and recommendation in concluding that insurers owe no coverage for an underlying lawsuit that accuses the contractor and a subcontractor of faulty work on roofs in a New York City apartment complex that failed during Hurricane Sandy.
October 17, 2024
Insured’s Hurricane Zeta Lawsuit Is Untimely Under SFIP, 5th Circuit Affirms

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Oct. 16 affirmed a lower federal court’s “carefully crafted opinion” that dismissed with prejudice an insured’s breach of contract lawsuit seeking coverage for its Hurricane Zeta damage, agreeing with the lower court that the insured’s action is time-barred by the one-year statute of limitations pursuant to its Standard Flood Insurance Policy (SFIP).
October 14, 2024
Suit Against Captive Reinsurer, Others Follows Alleged Board Upheaval

WASHINGTON, D.C. — Alleging in part that board upheaval left a captive reinsurer “under the management of inexperienced board members,” a risk retention group (RRG) sued three entities it claims it long had a close relationship with, asserting claims in a District of Columbia federal court for breach of contract, breach of the covenant of good faith and fair dealing and tortious interference with business relations.
October 14, 2024
Insurer Asks 9th Circuit To Reconsider Ruling In Sex Trafficking Coverage Dispute

SAN FRANCISCO — A commercial insurer filed a petition seeking rehearing of the Ninth Circuit U.S. Court of Appeals’ Sept. 25 ruling that affirmed a lower federal court’s dismissal of its declaratory judgment arising from an underlying multidistrict litigation alleging that the insured is liable under Texas’ sex trafficking statutes, challenging the panel’s finding that its duty to defend has not been extinguished because the underlying claims may impose liability on the insured that triggers coverage.
October 14, 2024
Owners Of Aircraft Valued At More Than $222M Sue Insurers In State Court

STAMFORD, Conn. — Claiming breach of contract and bad faith, five entities that own two freighter planes that they allege a Russian cargo airline has refused to return after the invasion of Ukraine have filed a suit in Connecticut state court against more than two dozen “insurers, underwriters, underwriting managers, and insurance subscribers of coverage in the international aviation insurance market.”
October 11, 2024
Disability Insurer Says Claimant Not Entitled To More Than $445K In Attorney Fees

MINNEAPOLIS — A disability plan participant is not entitled to more than $445,000 in attorney fees because the participant’s submissions in support of the requested amount are based on unreasonable hourly rates and unsupported time entries, a disability insurer says in its response to the participant’s motion for attorney fees filed in Minnesota federal court.
October 11, 2024
LTD Benefits Owed Based On Fibromyalgia Diagnosis, Disability Claimant Says

ATLANTA — In a complaint filed in Georgia federal court, a disability claimant alleges that her long-term disability (LTD) benefits were wrongfully denied and urges the court to find that she remains disabled under the disability plan as a result of a fibromyalgia diagnosis.
October 11, 2024
Private Equity Firms Amend Federal Complaint Against D&O, Cyber Liability Insurer

OMAHA, Neb.— Two private equity firms filed an amended complaint against their directors and officers and cyber liability insurer in a Nebraska federal court, seeking coverage for the alleged $2.8 million they lost when an imposter investor hacked a reserve account (Panorama Point Partners LLC, et al. v. Everest National Insurance Company, No. 24-393, D. Neb.).
October 11, 2024
Insurer: Alleged Sexual Assaults Do Not Constitute Religious Expression Injury

SEATTLE — A church’s insurer filed a declaratory judgment lawsuit in a Washington federal court, disputing coverage for an underlying claim alleging a minor was sexually assaulted on multiple occasions by the church’s deacon.
October 10, 2024
California Bishop Amends Complaint, Seeks Insurance Coverage For Sex Abuse Suits

SAN FRANCISCO — The Roman Catholic Bishop of Oakland, Calif., filed a fifth amended declaratory judgment and breach of statutory duty complaint in a California federal court against numerous insurers and the California Insurance Guarantee Association (CIGA), which the plaintiff believes assumed responsibilities for its now-insolvent insurer, seeking a declaratory judgment stating that the plaintiff is entitled to a defense and indemnity regarding covered claims for the more than 300 suits filed against it related to alleged clergy sexual abuse.