In Watford Specialty Insurance Co. v. MDF 92 River Street LLC, the New Jersey Appellate Division clarified that the term “wrongful eviction” in the insuring agreement of a commercial general liability policy’s “personal and advertising injury” coverage section contemplates eviction from a place where the individual has a possessory interest or right of private occupancy. In that case, insurer Watford Specialty Insurance Co. issued a commercial general liability policy ... Keep Reading »
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Fifth Circuit Clarifies Meaning of “Advertising Idea” in Personal and Advertising Injury Coverage Section of Standard CGL Policy
In Princeton Excess & Surplus Lines Insurance Co. v. A.H.D. Houston Inc., the Fifth Circuit Court of Appeals clarified the meaning of the undefined term “advertising idea” in the insuring agreement of a commercial general liability policy’s “personal and advertising injury” coverage section. In that case, insurer Princeton Excess and Surplus Lines Insurance Co. (PESLIC) issued two commercial general liability policies to several Texas strip clubs. The strip clubs ... Keep Reading »
Sixth Circuit Finds Lanham Act False Advertising Claim Not a Personal and Advertising Injury Under General Liability Policy
On June 1, 2023, the Sixth Circuit Court of Appeals found that a Lanham Act false advertising lawsuit was not covered under the “personal and advertising injury” coverage section of a commercial general liability (CGL) policy under Michigan law. The plaintiff in L&K Coffee LLC v. LM Insurance Corp. is a Michigan-based company that roasts and sells coffee products throughout the United States. In early 2019, coffee growers from the Kona region of Hawaii sued ... Keep Reading »
Seventh Circuit Finds Notice-of-Impairment Exclusion Bars Coverage for Warehouse Fire
In Frankenmuth Mut. Ins. Co. v. Fun F/X II, Inc., the U.S. Court of Appeals for the Seventh Circuit considered whether loss from a warehouse fire was excluded from coverage because of the insureds' failure to notify the insurer of a known impairment to the building’s fire protection systems prior to the fire. The defendants were owners of a costume and theatrical supply retailer that stored inventory in a warehouse insured by the plaintiff, Frankenmuth Mutual ... Keep Reading »
Seventh Circuit Finds Pleadings in Same Lawsuit Are “Related Claims,” Despite Addition of New Allegations and Defendants
In a recent decision, the Seventh Circuit Court of Appeals found an amended complaint filed in an underlying action was a “related claim” with respect to the original complaint filed in the same suit and thus that the matter should have been reported to the insurer during the policy period in effect at the time of the original pleading. The dispute in Hanover Insurance Co. v. R.W. Dunteman Co. arose from a conflict among family members over the ownership interests in ... Keep Reading »
Delaware Supreme Court Holds That “Related Claim” Standard Is Based on Plain Language of Policy
As we previously discussed in this blog, in June 2021 the Delaware Superior Court found in First Solar Inc. that there was no coverage under a claims-made policy for a securities action (Maverick) filed during the relevant policy period, on the grounds that the Maverick action constituted a "related claim" with respect to a class action that had been filed before the policy period commenced (Smilovits). In so holding, the court applied a "fundamentally identical" ... Keep Reading »
Fifth Circuit Concludes That Compliance With Pandemic-Related Shutdown Orders Does Not Constitute “Direct Physical Loss of or Damage to Property” Under Louisiana Law
In the recent decision in Q Clothier New Orleans LLC v. Twin City Fire Insurance Co., the Fifth Circuit Court of Appeals affirmed the dismissal of an insured’s claim for coverage under a property policy for loss arising from compliance with pandemic-related shutdown orders. In concluding that such losses did not fall within the meaning of “direct physical loss of or damage to property” in the policy’s insuring agreement under Louisiana law, the court noted that its ... Keep Reading »
Delaware Superior Court Finds Securities Class Action and Its Opt Outs’ Subsequent Class Action Are “Related Claims”
In First Solar Inc. v. National Union Fire Insurance Company of Pittsburgh, the Delaware Superior Court held there was no coverage for a class action brought by the individuals who opted out of a prior class action that had been filed before the subject policies’ inception where both actions involved fundamentally identical allegations of wrongdoing. First Solar sought coverage for a class action lawsuit filed on June 23, 2015 (Maverick action) under primary and ... Keep Reading »
Consistent With Nationwide Trend, Recent Decisions Applying Louisiana Law Find COVID-19 Does Not Cause Physical Loss or Damage
Consistent with the majority of decisions in courts across the country, a number of Louisiana state and federal courts have recently held that COVID-19 does not cause physical loss or damage to property as required for coverage under most first-party property policies. In a summary judgment decision issued from the bench in Nite, Nite LLC v. Certain Underwriters at Lloyd’s, London, a Louisiana state court considered whether the state government’s COVID-19 shutdown ... Keep Reading »
New York First Department Clarifies Effect of New York Insurance Law Section 3420 on Claims-Made-and-Reported Policies
In Certain Underwriters at Lloyd's London v. Advance Transit Co., a New York appellate court provided valuable clarity into how New York Insurance Law section 3420 applies to claims-made-and-reported insurance policies. Underwriters issued a claims-made-and-reported liability policy to Advance Transit Co., effective October 30, 2016, to October 30, 2017. The policy provided that if it were renewed, Advance would have an additional 60 days after the expiration of the ... Keep Reading »