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 »
Property
Tenth Circuit Upholds Clear and Unambiguous ATV Exclusion in Homeowners Policy
The Tenth Circuit Court of Appeals declared that an insurer’s homeowners policy all-terrain vehicle exclusion barred coverage for a Utah insured’s injuries that did not occur at the “insured location.” The case, Farm Bureau Property & Casualty Insurance Co. v. Cleaver, involved a claim arising out of injuries sustained by minor E.C. while riding an ATV on an unpaved, county-owned public road from a nearby gravel pit back to the insured’s home, which was insured by ... Keep Reading »
Second Circuit Warns Insurers of Risks of Forgoing Discovery
The Second Circuit Court of Appeals recently found an insurer’s decision to waive discovery foreclosed its ability to provide extrinsic evidence to resolve an ambiguous insurance policy. In Ezrasons Inc. v. Travelers Indemnity Co., the insurer, Travelers Property Casualty Co., had refused to indemnify its insured, Ezrasons Inc., for the full policy limit because it contended the loss did not occur at an “approved location” under the policy. The Second Circuit ultimately ... Keep Reading »
Washington Appellate Court Finds Insureds’ Failure to Provide Statutory Notice of Intent to Sue Did Not Void Default Judgments Against Insurer
In Gates v. Homesite Insurance Co., the Washington Court of Appeals held that the plaintiff-insureds’ failure to provide 20 days’ notice of intent to sue its insurer, though required by statute, was a mere “procedural irregularity” insufficient to void the default judgments entered against the insurer. The court also noted that the insurer’s failure to timely respond to the lawsuit was the result of an “internal communication issue” and not an extraordinary circumstance ... 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 »
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 »
Florida Insurance Reform Special Session 2 – This Time Means Business
Between 2017 and 2022, 11 property & casualty insurers domiciled in Florida were declared insolvent and placed into liquidation. In an attempt to restore stability to the marketplace, Governor Ron DeSantis issued a proclamation on April 26, 2022, calling the Florida Legislature into special session to reform Florida’s Insurance Code. While the ensuing May special session yielded significant changes, including amendments designed to reduce fraudulent roof claims and ... Keep Reading »
Eleventh Circuit Affirms Dismissal of First-Party Property Complaint for Failure to Meet Pleading Standard
The Eleventh Circuit Court of Appeals, in M&M Sisters LLC v. Scottsdale Insurance Co., affirmed the district court’s dismissal of an insured’s third amended complaint against its insurance carrier for failure to state a claim for relief without further leave to amend. The plaintiffs, M&M Sisters LLC and its two owners Bertha Garcia and Maria Mendez, purchased a commercial general liability policy from the defendant, Scottsdale Insurance Co., covering an ... 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 »
Sixth Circuit Finds No Coverage for Alleged Losses Related to COVID-19
Just like the tidal wave of trial court decisions in favor of insurers in COVID-19 business interruption insurance coverage lawsuits, a similar wave of appellate decisions is now forming. In Dakota Girls LLC v. Philadelphia Indemnity Insurance Co., the Sixth Circuit Court of Appeals, applying Ohio law, affirmed the dismissal of a lawsuit brought by private preschools seeking coverage for alleged COVID-19-related business interruption losses. The Sixth Circuit held there ... Keep Reading »
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