A federal judge in Connecticut recently dismissed claims against insurers related to their denial of a claim by two homeowners whose home’s foundation was crumbling. The case, Hyde v. Allstate Ins. Co., No. 3:18-cv-00031 (D. Conn. Dec. 4, 2018), marks the latest development in what is quickly becoming a major source of litigation. When the Hydes tried to sell their house in 2016, they discovered that the home’s foundation was crumbling. Their foundation had allegedly ... Keep Reading »
When a Nightclub Is Forced to Say Goodnight: California Appellate Court Applies Broad Reading of “Loss of Use” Provision
The frustration property owners must feel when the actions of another cause them to no longer be able to use their property as originally intended is certainly palpable, but when the property is not damaged and still can be used for other purposes, is there a covered loss of use of tangible property? The California Court of Appeal answered this question affirmatively in Thee Sombrero, Inc. v. Scottsdale Insurance Company, No. E67505 (Cal. App. Ct. Oct. 25, 2018). Thee ... Keep Reading »
Intentional Accidents: California Supreme Court Announces that General Commercial Liability Policies Apply to Negligent Hiring, Training, and Supervising Claims for Failing to Prevent Intentional Torts
In a recent decision, the U.S. Court of Appeals for the Ninth Circuit observed that under California law, there was an unresolved question as to whether a commercial general liability (“CGL”) insurance policy covers an employer-insured for negligently failing to prevent an employee’s intentional misconduct. In essence, it was unclear whether such an incident constituted an “occurrence” that only covers “accidents,” as an intentional act cannot, by definition, be an ... Keep Reading »
Related Decisions: Three Recent Cases Emphasize Breadth of “Related Wrongful Acts”
Third-party liability policies often include aggregation clauses. As the name suggests, these clauses aggregate "related claims" or "interrelated wrongful acts" into one claim or occurrence. This provides the parties with certainty as to when a claim was "first made" or when an occurrence "first occurred." These clauses often lead to litigation, with carriers and policyholders asserting narrow or broad readings of the language, depending on the desired result. A trio ... Keep Reading »
Clearing the Air: Tenth Circuit Strikes Down an Indoor Air Quality Exclusion, Citing Ambiguity
Ambiguity strikes again. While the heavily litigated pollution exclusion is well-known in the insurance world, its progeny—the indoor air exclusion—only recently has started making its way around the block. Insurers should be aware of the trend in cases holding that indoor air quality exclusions are ambiguous. Such holdings are resulting in courts applying a strict and narrow construction. For example, in Siloam Springs Hotel v. Century Sur. Co., No. 17-6208 (10th Cir. ... Keep Reading »
SEC-ordered Disgorgement is an Uninsurable “Penalty,” not a Covered “Loss”
A New York intermediate appellate court has ruled that a $140 million “disgorgement” payment ordered by the SEC in resolution of an investigation into securities laws violations was a “penalty” that was not covered by insurance rather than a covered “loss.” The case, J.P. Morgan Securities, Inc. v. Vigilant Ins. Co., 2018 NY Slip Op. 06146 (App. Div., 1st Dept. Sept. 20, 2018, stemmed from a 2003 investigation into claims that Bear Stearns employees knowingly ... Keep Reading »
Another Sentinel Strike: California District Court Dismisses Financial Elder Abuse and Fraud Claims
The Hartford affiliate Sentinel Insurance Company continued its successful campaign to limit dubious claims by securing another favorable decision – this time in California in the rapidly developing area of financial elder abuse law in Davis v. Sentinel Insurance Co., No. 17-CV-1845 W (JLB) (S.D. Cal. Oct. 18, 2018). This case centered on a coverage dispute arising out of James and Cecelia Davis’ uninsured motorist (UM)/underinsured motorist (UIM) claim against ... Keep Reading »
Failure to Procure Cyber Insurance Could Haunt Your Company
A federal court in Florida recently adopted the now well-developed consensus that data breach losses are not covered under standard Commercial General Liability (CGL) policies. As the Department of Homeland Security’s officially designated 15th annual Cybersecurity Awareness Month comes to a close, the case stands as yet another stark warning that companies of all sizes – any company that uses, collects, stores or handles confidential personal information such as credit ... Keep Reading »
Six Degrees of Separation: Eleventh Circuit Upholds a Broad ‘Related Claims’ Provision
“Related Claims” provisions in directors and officers (D&O) and errors and omissions (E&O) policies, while common, can spawn disagreement as to scope and application. Beyond these substantive questions, an issue arises as to what information a court may consider in determining whether two or more claims are “related” within the meaning of a given policy. The Eleventh Circuit recently analyzed this issue in Health First, Inc. v. Capitol Specialty Insurance ... Keep Reading »
Eleventh Circuit Finds Exclusion Bars Trademark Infringement and Dependent False Designation and Unfair Competition Claims
Duty to defend principles are generally well-settled in most jurisdictions: If the allegations in an underlying complaint potentially fall within the scope of coverage, the insurer must defend. In many – but not all – jurisdictions, the insurer must defend the entire suit as long as it alleges any potentially covered claims. Once implicated, the duty may be negated if the allegations against the insured fall entirely within a policy exclusion. While ingrained in ... Keep Reading »
- « Previous Page
- 1
- …
- 22
- 23
- 24
- 25
- 26
- …
- 48
- Next Page »