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

Mealey's Insurance Pleadings

January 08, 2025
Biopharmaceutical Company, Insurer Stipulate To Dismiss D&O Coverage Dispute

LOS ANGELES — After announcing that a settlement has been reached in principle, a biopharmaceutical company insured and its insurer filed a joint stipulation to dismiss a directors and officers liability coverage dispute arising from a lawsuit brought by the insured’s former employee.
January 07, 2025
Building Owner, Contractor Say Rehearing En Banc Is Warranted In Collapse Suit

CINCINNATI — A building owner and a contractor filed petitions for rehearing en banc in the Sixth Circuit U.S. Court of Appeals, contending that rehearing en banc is warranted because the panel’s finding that coverage is owed only for a portion of a wall that collapsed in a building that was undergoing renovation is inconsistent with a prior Sixth Circuit opinion and other prevailing case law within the Sixth Circuit.
January 07, 2025
Insurers Owe Coverage For Environmental Remediation Costs, Insureds Say

LAS CRUCES, N.M. — Coverage is owed for environmental contamination remediation costs related to the release of a waste byproduct from a gas pipeline, insureds say in a breach of contract and bad faith complaint filed in New Mexico federal court against three of its environmental liability insurers.
January 06, 2025
Freddie Mac, Insurer Reach Settlement In Directors And Officers Coverage Dispute

WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) and Certain Underwriters at Lloyd’s of London filed a notice in a District of Columbia federal court indicating that they have settled Freddie Mac’s breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.
January 02, 2025
Intervention Sought Over Setoff Rights In Connecticut Rehabilitation Proceeding

HARTFORD, Conn. — Policy owners’ setoff rights are the focus of an intervention motion that three investment managers filed in Connecticut state court regarding the rehabilitation of life insurer PHL Variable Insurance Co. and the subsidiaries that reinsure its liabilities.
December 31, 2024
IRS Asks 5th Circuit To Affirm Tax Court Ruling In Row Over Purported Microcaptives

NEW ORLEANS — Urging the Fifth Circuit U.S. Circuit Court of Appeals to affirm a ruling that certain purported microcaptive insurance arrangements were not entitled to federal tax benefits, the U.S. commissioner of Internal Revenue argues in part that the “Taxpayer can hardly claim reversible error or fault the Tax Court for applying a legal framework that Taxpayer himself advocated.”
December 24, 2024
Tax Court Briefing On Economic Substance Doctrine Continues In Microcaptive Case

WASHINGTON, D.C. — In their latest filings in a U.S. Tax Court dispute over the “economic substance doctrine” in consolidated cases involving purported microcaptive insurance companies, the commissioner of Internal Revenue argues that a “threshold” determination of relevance is not required and the petitioners contend that the bulk of the amicus curiae briefs support their contrary position, among other things.
December 19, 2024
5th Circuit Appeal Seeks Revival Of Untimely Crop Insurance Case

NEW ORLEANS — Briefing has concluded in an appeal concerning federally reinsured crop insurance, the Federal Arbitration Act (FAA), statutes of limitations, tolling and estoppel, and the Fifth Circuit U.S. Court of Appeals has tentatively calendared oral argument for the week of Feb. 3.
December 19, 2024
Redacted Complaint Is Filed In Indemnification Row Over Clash Reinsurance

NEW YORK — A reinsurer that seeks a declaration that it doesn’t have a duty to indemnify an insurer that settled claims stemming from alleged sexual abuse of female athletes by Larry Nassar and others has filed a redacted complaint in New York federal court.
December 18, 2024
Tax Court Ruling In Row Over Purported Microcaptive Is Appealed To 10th Circuit

DENVER — For at least the second time this year, plaintiffs who unsuccessfully sued the commissioner of Internal Revenue in U.S. Tax Court over purported microcaptive insurance have filed an appeal; this one is in the 10th Circuit U.S. Court of Appeals.
December 18, 2024
2 Investors Want To Pursue Resolution With Vesttoo Affiliate In Israel

WILMINGTON, Del. — Two Israeli investors have asked a Delaware federal bankruptcy court for relief from the injunction in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates so they can pursue arbitration and/or liquidation proceedings in Israel.
December 13, 2024
Hawaii Supreme Court Considers Subrogation Issues For Wildfire Settlement

HONOLULU — How the subrogation rights of property and casualty insurance carriers bear on a proposed global settlement of claims related to the August 2023 Maui wildfires is the focus of three reserved questions the Hawaii Supreme Court is considering, with some recent filings involving how reinsurance could be affected.
December 12, 2024
Real Estate Law Firm, Cyber Security Insurer Settle Coverage Dispute

ASHEVILLE, N.C. — A real estate law firm, its insurer and a third-party administrator filed a joint stipulation asking a North Carolina federal court to dismiss with prejudice the firm’s lawsuit seeking coverage under a cybersecurity policy for gross negligence and obstruction of justice cross-claims arising from a “cyber incident” in 2021 that resulted in the misdirection of funds.
December 11, 2024
Insurer Ask 7th Circuit To Reconsider Ruling That It Has Duty To Defend Architect

CHICAGO — A commercial general liability insurer filed a petition asking the Seventh Circuit U.S. Court of Appeals to reconsider an earlier ruling that it has a duty to defend its architectural company insured against an underlying lawsuit asserting that it inadequately designed and oversaw the construction of an Iowa building, challenging the Seventh Circuit’s finding that the intervening decision by the Illinois Supreme Court in Acuity v. M/I Homes of Chicago, LLC indicates that the insurer owes an underlying defense.
December 10, 2024
Health Plans Seek Revival Of 12 Cases In ACA Reinsurance Dispute

WASHINGTON, D.C. — Arguing in part that “the well-established rule for suspending the running of statutes of limitation in class actions for putative class members” remains available in what are called “Tucker Act” cases, group health plans on Dec. 9 asked the Federal Circuit U.S. Court of Appeals to reverse a ruling that their 12 consolidated cases against the government were untimely.
December 10, 2024
Bank, Related Entities Face Another Suit Connected To Vesttoo Collapse

NEW YORK — China Construction Bank Corp. (CCBC) and related entities are facing yet another lawsuit in connection with the collapse of Vesttoo Ltd., with plaintiffs asserting breach of contract and alternative claims in New York federal court.
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 06, 2024
LTD Benefits Wrongfully Terminated Based On Policy Limitation, Claimant Says

DENVER — A disability insurer and its claims administrator wrongfully terminated a claim for long-term disability (LTD) benefits based on the policy’s limitation for mental or nervous disorders, a disability claimant contends in a complaint filed in Colorado federal court.
December 05, 2024
Total Disability Questions Should Be Certified To La. High Court, Claimant Says

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals should withdraw an unpublished opinion entered in favor of a disability insurer and certify two questions of law to the Louisiana Supreme Court regarding whether a disability claimant was required to prove that she was disabled from performing all of the duties of her occupation as a pharmacist in order to meet the policy’s definition of total disability, the claimant maintains.
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
Appellate Briefing Complete In Construction Insurance Dispute Over Sprinkler Leak

BATON ROUGE, La. — An excess insurer filed its reply brief in the Fifth Circuit U.S. Court of Appeals defending its appeal of a Louisiana federal court’s rulings that first granted a manufacturer’s motion for summary judgment in a construction insurance dispute stemming from damages caused by a sprinkler leak and then dismissed all of the excess insurer’s claims against the manufacturer with prejudice.
December 02, 2024
Insured Says Property Insurer Acted In Bad Faith In Handling Water Damage Claim

SEATTLE — An insured condominium owners association filed suit in Washington federal court, alleging that its property insurer acted in bad faith by failing to investigate and make a coverage decision regarding the association’s claim for hidden water damage discovered in condominium buildings maintained by the association.
December 02, 2024
Construction Company Alleges Bad Faith Cross-Claim Against CGL Insurer

SACRAMENTO, Calif. —A construction company insured answered a commercial general liability insurer’s first amended complaint and filed cross-claims for breach of contract and breach of the implied covenant of good faith and fair dealing and seeks equitable contribution as assignee of an excess insurer that funded its $2,250,000 settlement of an underlying construction defects lawsuit.
November 22, 2024
New York Care Homes Sued By Attorney General Settle Medicare Fraud Suit For $45M

NEW YORK — New York Attorney General Letitia James announced that multiple nursing homes and their owners and operators sued in the New York County Supreme Court have agreed to pay $45 million to settle a suit against them alleging understaffing and resident neglect, as well as fraud and misuse of Medicare and Medicaid funds.