The Second Appellate District of the California Court of Appeal recently affirmed a lower court ruling that wildfire debris on an insured’s property did not qualify as “direct physical loss” within the meaning of a homeowners insurance policy, as there was no burn damage to the property. The ruling, Gharibian v. Wawanesa General Insurance Co., is especially noteworthy given its potential impact on insurance claims stemming from the 2025 Los Angeles ... Keep Reading »
New Jersey Court Holds Primary Home Insurer Must Cover Dog Bite Injury at Insured’s Second Home
In Berardi v. FMI Insurance Co., a panel of New Jersey’s Superior Court, Appellate Decision, affirmed a lower court’s ruling, which ordered a primary home insurer to defend its insured in a dog bite lawsuit, stemming from alleged injuries sustained by a house cleaner at the insured’s secondary home. Background and Underlying Action The plaintiffs, Anthony and Janet Berardi, own a primary residence in Sparta, New York, along with a second home in Montauk, New York. ... Keep Reading »
Second Circuit Affirms Ruling That Prior Knowledge Exclusion Barred Coverage for Legal Malpractice Lawsuit
The Second Circuit Court of Appeals recently affirmed a lower court’s ruling, which declared that North River Insurance Co. had no duty to defend or indemnify its insured in connection with a legal malpractice lawsuit. Background In September 2019, Max Leifer and his law office applied for professional liability insurance with North River. Leifer’s application was approved, and North River issued the policy, which covered damages and defense expenses for claims ... Keep Reading »
Florida Supreme Court Holds That a Public Adjuster With Pecuniary Interest Cannot Qualify as a “Disinterested” Appraiser for Homeowner
In Parrish v. State Farm Fla. Ins. Co., the Florida Supreme Court settled a conflict between two appellate courts, holding that a public adjuster, including the president of a public adjusting company, cannot serve as a “disinterested” appraiser if they have a pecuniary interest in the outcome of the appraisal. Background and Underlying Proceeding In September 2017, John Parrish, sustained damage to his home from Hurricane Irma. At the time of the damage, the ... Keep Reading »
Insurer Not Liable for Law Firm Accused of Violating North Carolina Driver’s Privacy Protection Act
A federal judge recently granted Nationwide’s motion for summary judgment, ruling that it had no duty to defend or indemnify a personal injury law firm and its founder in an underlying lawsuit alleging violations of North Carolina’s Driver’s Privacy Protection Act (DPPA). In AMCO Insurance Co. v. Van Laningham & Associates PLLC, U.S. District Judge James C. Dever III ruled that Bradley Law Group’s alleged violations of the DPPA did not involve the publication of ... Keep Reading »
Federal Court Finds Selling Products in New Jersey Is Insufficient to Establish Personal Jurisdiction in Case Regarding Insurance Coverage for Underlying New Jersey Action
A U.S. district judge ruled in a coverage dispute that an allegation that a company sold products in New Jersey is insufficient to establish personal jurisdiction in a related insurance coverage action. In Ohio Security Insurance Co. v. Premium Food Group Inc., the court ruled that the fact that the insureds sought coverage for an underlying suit filed in New Jersey was not sufficient to exercise specific personal jurisdiction over two New York corporations. Underlying ... Keep Reading »
10th Circuit Finds No Coverage Under All-Risk Policy for Building Damage Caused by Soil Collapse Triggered by Burst Water Pipe
In Naabani Twin Stars, LLC v. St. Paul Fire & Marine Insurance Co., the Tenth Circuit Court of Appeals held that St. Paul Fire and Marine Insurance Co. has no duty to cover damage that occurred when a building’s underlying soil collapsed, but not the building itself, due to a burst water pipe under an adjacent parking lot. In July 2016, a waterline under a parking lot, near a building owned by Naabani Twin Stars LLC and Twin Stars Limited, ruptured. Two ... Keep Reading »
Illinois Supreme Court Finds That Alleged Sharing of Fingerprint Data Violates the Right of Privacy, a “Personal Injury” Triggering Duty to Defend
The Illinois Supreme Court recently affirmed that West Bend Mutual Insurance Co. has a duty to defend an insured under a business insurance policy against allegations that they violated the Illinois Biometric Information Privacy Act (BIPA), finding that an exclusion that bars coverage for certain statutory actions did not apply. The court ruled that a tanning salon’s sharing of its clients’ biometric identifiers and biometric information (fingerprints) with a third-party ... Keep Reading »
Ninth Circuit Flags NFL Stadium Design and Construction as Intentional Conduct Resulting in Out of Bounds Claim for Occurrence Coverage
The Ninth Circuit Court of Appeals recently found that insurers did not have to defend a construction company from the San Francisco 49ers' claim that the company negligently failed to construct the NFL team's stadium to be accessible to all people with physical disabilities. In Hartford Fire Insurance Co. v. Turner/Devcon, the federal appellate court ruled that because the construction of the stadium was an intentional act, it did not constitute bodily injury or ... Keep Reading »
New York Supreme Court Allows Paint Company to Pursue Coverage for $102M Lead Paint Settlement
In Certain Underwriters at Lloyd’s, London v. NL Industries Inc., a New York Supreme Court recently ruled that paint maker NL Industries Inc. may seek insurance coverage for its almost $102 million share of a settlement, stemming from a suit over the negative impact of the use of its lead-based paint in California homes and buildings. A Case 20 Years in the Making The underlying suit was first filed in 2000 by certain California counties that sought to hold a number of ... Keep Reading »