Mealey's Insurance
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November 28, 2023
Insurer Argues That It Owes No Coverage For Judgment Against Contractor
WILMINGTON, Del. — An insurer that filed a complaint for declaratory judgment in a federal court in Delaware against a contractor and homeowners association filed an answer to counterclaims by the association on Nov. 27, arguing that it owes no coverage for more than $8 million in damages awarded to the association in its underlying case against the contractor for excessive water infiltration and other issues.
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November 28, 2023
No Coverage Owed For COVID-19 Losses Under Pollution Policy, Court Says
NEW YORK — No coverage is owed for business interruption losses caused by the coronavirus because the virus is not a pollution condition and does not constitute an indoor environmental condition as defined in the pollution and remediation policy, a New York appellate panel said in affirming a trial court’s ruling.
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November 28, 2023
Additional Work Not Barred By Policy’s Mold Sublimit Provision, Judge Says
PHILADELPHIA — A claim for additional coverage for mold remediation work required by a local building code is not subject to a policy’s mold sublimit provision because the policy’s ordinance or law provision provides coverage for the additional work that was required by the enforcement of a local building code, a Pennsylvania federal judge said in partially granting the insureds’ motion for summary judgment.
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November 22, 2023
N.Y. Federal Judge Certifies 3 Questions To 2nd Circuit In Asbestos Coverage Suit
BUFFALO, N.Y. — A New York federal judge granted motions to amend a prior opinion in an asbestos coverage suit and certified three questions to the Second Circuit U.S. Court of Appeals pertaining to the issues of whether a named insured whose subsidiary companies are named as defendants in underlying lawsuits is entitled to coverage under its policies and whether an all-sums or pro rata method of allocation applies to defense and indemnity costs incurred by the insured.
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November 22, 2023
Injuries, Death Caused By Carbon Monoxide Exposure Constitute 1 Occurrence
BUTTE, Mont. — A Montana federal judge determined that an underlying suit seeking damages as a result of carbon monoxide exposure that injured a woman and caused the death of her husband alleges only one occurrence under a commercial general liability policy because there was only one cause of the woman’s injuries and the husband’s death.
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November 21, 2023
Insurers Say Contribution To Lead Abatement Fund Is Not Damages Under Policies
COLUMBUS, Ohio — An Ohio appellate court erred in determining that an insured’s obligation to contribute to a lead paint abatement fund constitutes damages under insurance policies because the language of the policies establishes that there were no damages for which coverage is afforded, the insurers reiterate in an appellant reply brief filed in the Ohio Supreme Court.
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November 20, 2023
Reinsurers Fail To Stop New Arbitration By Citing Previous Arbitrations
CHICAGO — Ruling that “a dispute over the preclusive effect of a prior arbitration is arbitrable,” an Illinois federal judge granted an insurer’s motion to compel arbitration and dismissed the case filed by reinsurers without prejudice.
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November 20, 2023
Dispute Over Billings For Asbestos Liabilities Must Be Arbitrated, Judge Says
WILMINGTON, Del. — A Delaware federal judge on Nov. 17 granted an insurer’s motion to stay an insured’s suit seeking coverage for more than $12 million in defense and indemnity costs for asbestos claims, agreeing with the insurer that the parties must submit the dispute to arbitration pursuant to the terms of a prior settlement agreement.
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November 20, 2023
Judge Issues Opinion Reaffirming Order In Landlord’s Coronavirus Coverage Suit
NEW YORK — A federal judge in New York issued an opinion reaffirming its Sept. 29 order granting a commercial property insurer’s motion for summary judgment in a coronavirus coverage suit, finding that a commercial landlord insured failed to meet the contractual prerequisites to recover under the insurance policy’s two communicable disease provisions.
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November 20, 2023
Insurer’s Environmental Coverage Suit Stayed Until Underlying Suit Is Resolved
SANTA ANA, Calif. — A California state judge denied a demurrer to an insurer’s complaint but granted a motion to stay the insurer’s declaratory judgment suit until after an underlying environmental contamination suit against the successor company to an insured is resolved because resolution of the underlying suit will aid the court in determining whether the insurer’s pollution exclusion applies as a bar to coverage for the underlying suit.
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November 17, 2023
No Coverage Owed For Foundation Damage; Bad Faith, Breach Of Contract Claims Fail
LOS ANGELES — An insured’s claims for breach of contract, bad faith and unfair business practices alleged in a complaint seeking coverage for foundation damage arising out of a burst water pipe cannot proceed because the insurer properly denied coverage under the policy’s foundation damage exclusion, the Second District California Court of Appeal said in affirming a trial court’s decision.
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November 16, 2023
Policy’s Virus Exclusion Bars Coverage For Coronavirus Losses, 9th Circuit Affirms
PHOENIX — The Ninth Circuit U.S. Court of Appeals on Nov. 15 held that an insured failed to plausibly allege that anything other than the COVID-19 pandemic is the efficient proximate cause of its losses, affirming a federal court’s dismissal of the insured’s commercial insurance coverage lawsuit.
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November 14, 2023
No Coverage For Damages To Insured’s Dock Caused By Water, Structural Defects
SPOKANE, Wash. — A Washington federal judge on Nov. 13 granted summary judgment in favor of a homeowners insurer after determining that the insured’s claims for breach of contract and bad faith cannot proceed because the insurer’s denial of coverage for damage to a dock on the insured’s property was reasonable as the damage was caused by water and structural defects, excluded causes of losses, rather than wind.
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November 14, 2023
New Trial Date Set In Groundwater Contamination Coverage Suit
RIVERSIDE, Calif. — A California federal judge set an April 2024 trial date in a groundwater contamination coverage suit following the parties’ request to move the trial date, originally scheduled to begin this month.
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November 13, 2023
Insured Files Supplemental Authority On Applicability Of Pollution Exclusion
SAN FRANCISCO — A few days before oral arguments were held in the Ninth Circuit U.S. Court of Appeals in a dispute over the applicability of the pollution exclusion, the insured, seeking coverage for an underlying toxic exposure suit stemming from the cleanup of wildfire debris, filed a notice of supplemental authority, urging the Ninth Circuit to consider a ruling by the Second District California Court of Appeal in support of its argument that the pollution exclusion does not bar coverage for the underlying suit.
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November 13, 2023
West Virginia High Court Majority Says Continuous Trigger Of Coverage Applies
CHARLESTON, W.Va. — In answering a certified question from the Fourth Circuit U.S. Court of Appeals, the majority of the West Virginia Supreme Court of Appeals determined that a continuous trigger of coverage applies in a toxic chemical exposure suit and said that every occurrence-based insurance policy in effect from the initial exposure must provide coverage for the claim.
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November 13, 2023
Insured Condo Association Says Coverage Owed For Hidden Water Damage
SEATTLE — A property insurer’s denial of coverage for hidden water damage discovered in the buildings of a condominium development constitutes a breach of contract and bad faith because coverage is afforded under the policies at issue, an insured condominium association says in a complaint filed in Washington federal court.
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November 13, 2023
Reserve Information In COVID-19 Coverage Suit Not Relevant To Bad Faith Claim
SANTA ANA, Calif. — A California federal magistrate judge denied an insured’s motion to compel documents related to the reserve set by an insurer in response to the insured’s claim for business losses sustained in the wake of the COVID-19 pandemic after determining that the reserve information is not relevant to the insured’s bad faith claim because only a nominal reserve was set by the insurer and no changes were made to the reserve since the coverage claim was filed.
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November 10, 2023
Insurer Is Granted Clerk’s Entry Of Default Against Brazilian Reinsurer
OMAHA, Neb. — An insurer has obtained a clerk’s entry of default in its Nebraska federal court suit seeking reimbursement from a Brazil-based reinsurer for a settlement the insurer reached with Montana regarding alleged asbestos exposure.
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November 06, 2023
No Coverage For Underlying Suit Seeking Damages From Nitric Oxide Plume, Panel Says
DENVER — No coverage is owed to an insured for an underlying suit alleging damages caused by the release of a nitric oxide plume from an insured’s manufacturing plant because a pollution endorsement, which provides coverage for pollution-related bodily injury claims, applies only to claims that have a connection to Vermont, the 10th Circuit U.S. Court of Appeals said in affirming a district court’s ruling in favor of the insurer.
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November 06, 2023
Insurer, Insured Will Mediate Coverage Dispute Over Rodent Dropping Damages
RALEIGH, N.C. — An insurer and its insured will participate in a mediation proceeding in an attempt to resolve the commercial general liability insurer’s suit seeking a declaration that it has no duty to defend or indemnify its insured for an underlying suit claiming that the insured’s failure to inspect its storage pod for rodent droppings resulted in the underlying plaintiff becoming infected with bacterial meningitis.
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November 06, 2023
Insured Municipality Files Suit, Says Coverage Owed For Remediation Costs
TRENTON, N.J. — A premises pollution liability insurer breached its contract and acted in bad faith by denying coverage for environmental contamination remediation costs incurred by an insured municipality because the policy obligates the insurer to provide coverage for the remediation costs, the insured says in a complaint filed in New Jersey state court.
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November 06, 2023
Insurer’s Suit Stemming From Oil Spill Dismissed For Lack Of Standing
NEW ORLEANS — An insurer’s suit seeking a declaration that nine policies issued under the Oil Pollution Act (OPA) do not provide coverage to its insured for an oil discharge from the insured’s oil wells following Hurricane Ivan must be dismissed because the insurer does not have standing to bring the claims against its insured since the U.S. government, and not its insured, is the entity seeking to recover under the policies issued to the insured, a Louisiana federal judge said in granting the insured’s motion to dismiss.
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November 06, 2023
No Coverage Owed For Roof Collapse Following Thunderstorm, 5th Circuit Affirms
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Nov. 3 affirmed a lower federal court’s summary judgment ruling in favor of an insurer in a building owner insured’s breach of contract and bad faith lawsuit seeking coverage for damage caused by a collapsed roof following a thunderstorm, rejecting the insured’s contention that its principal’s deposition testimony created a genuine issue of material fact regarding whether the damage was caused by wind or rain.
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November 03, 2023
Ohio High Court Majority Affirms Choice-Of-Law Analysis For Bad Faith Claim
COLUMBUS, Ohio — An Ohio appellate court applied the correct factors in a choice-of-law analysis for a bad faith claim in an environmental contamination coverage suit because the bad faith claim sounds in tort rather than contract, the majority of the Ohio Supreme Court said in affirming the appellate court’s ruling.