In In re Illinois National Insurance Co., the Texas Supreme Court held that disclaiming insurers were not bound by any underlying settlement agreement, entered into without the insurers’ consent, where the claimants promised not to pursue the insured’s non-insurance assets. The underlying claimants were investment funds that filed suit in 2014 against Cobalt International Energy and its officers and directors. The claimants asserted securities fraud in connection with ... Keep Reading »
“Common Sense Should Prevail” — Federal Court Recognizes Exception to “Eight-Corners Rule,” Allows Use of Undisputed Extrinsic Evidence to Preclude Duty to Defend
In Southern-Owners Insurance Co. v. Midnight Tires Inc., the U.S. District Court for the Middle District of Florida granted an insurer’s motion for summary judgment after considering extrinsic evidence on the issue of the insurer’s duty to defend in an action seeking a declaration that the insured’s garage general liability policy did not cover claims in an underlying motor vehicle injury lawsuit. In the underlying action, Midnight Tires Inc. was sued in connection ... Keep Reading »
Eighth Circuit Finds Assault & Battery Exclusion Bars CGL Coverage for Bar Patron’s Gunshot Injury
In Scaglione v. Acceptance Indemnity Insurance Co., the Eighth Circuit Court of Appeals affirmed a district court order holding that an assault and battery exclusion in a commercial general liability policy barred coverage for the insured bar owner with respect to an equitable garnishment action brought by a bar patron who was hit by a stray bullet during a dispute between two other patrons. In the underlying action, Sominkcole Conner, the victim of a shooting at Voce ... Keep Reading »
No Coverage for Delinquent Payments: Mobile Home Park Operator Cannot Recover for “Expected or Intended” Injuries
On May 1, 2023, in West American Insurance Co. v. Del Ray Properties Inc., the U.S. District Court for the Western District of Washington held that general liability insurers owed no coverage obligations to a mobile home park operator in connection with delinquent payments of utility bills that jeopardized its residents’ water and garbage services because the underlying claims were for “expected or intended” injuries. Del Ray Properties Inc. is a Washington ... Keep Reading »
No CGL Coverage for Opioid Distributor Sued for Economic Damages but Not Bodily Injury Damage
In Westfield National Insurance Co. v. Quest Pharmaceuticals, the Sixth Circuit held that two insurers owed no coverage obligations to Quest Pharmaceuticals in connection with 77 lawsuits filed against it alleging misconduct that contributed to a nationwide epidemic of opioid abuse. 57 F.4th 558 (6th Cir. 2023). Quest Pharmaceuticals, a Kentucky-based distributor of generic drugs, faced an onslaught of lawsuits from cities, counties, a county health department, ... Keep Reading »
No Coverage Under Cybercrime Endorsement for Florida Fraudulent Wire Transfer
In Star Title Partners of Palm Harbor LLC v. Illinois Union Insurance Co., the Eleventh Circuit Court of Appeals affirmed judgment for the insurer and held that coverage did not exist under the plain language of a cybersecurity policy’s cybercrime endorsement for a Florida title company that was fraudulently induced to wire funds to the account of a fraudster impersonating a mortgage lender. In summer 2019, Star Title was hired by a homeowner to facilitate the sale of ... Keep Reading »