Property
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February 12, 2025
AIG Unit Says $6M Construction Defect Deal Isn't Covered
An AIG unit said it shouldn't have to cover a $6 million agreement and stipulated judgment between a stucco subcontractor and the owner of an apartment construction project, telling an Arizona federal court Wednesday that the deal is unreasonable and unenforceable.
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February 12, 2025
Allstate Hit With Another Class Action Over Data Collection
Allstate has been hit with another proposed class action in Illinois federal court accusing the auto insurer of illegally obtaining the personal driving data of millions of policyholders via software embedded in third-party apps and using that data for the insurer's own underwriting purposes.
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February 12, 2025
NC Justices Weigh Blame For Errors In Insurance Application
The North Carolina Supreme Court on Wednesday grappled with who is to blame for misstatements in an insurance application that was prepared by an agent but signed by the homeowner, with the agency arguing it was on the homeowner to catch those mistakes.
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February 11, 2025
Calif.'s Insurance Safety Net Gets $1B Infusion For Fire Claims
California Insurance Commissioner Ricardo Lara has signed off on $1 billion in additional funding for California's FAIR Plan, the state's insurer of last resort, to ensure the plan can keep paying consumer claims to survivors of the Southern California wildfires, according to an order issued Tuesday.
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February 11, 2025
Progressive Inks $3.25M Data Breach Deal With 350K Members
Approximately 350,000 Progressive Casualty Insurance customers on Tuesday asked an Ohio federal judge to grant final approval to a $3.25 million settlement stemming from a data breach event that exposed their personal information, noting the resolution is a favorable outcome, given the risks to their claims if litigation continued.
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February 10, 2025
Calif. Ruling Holds Wildfire Debris Not A Coverable Loss
Two California homeowners didn't have a covered claim for wildfire debris that infiltrated their home, a state appeals panel ruled, saying there was no evidence the debris caused the kind of loss or damage required for coverage.
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February 10, 2025
Texas Property Owner Seeks Over $1M In Storm Coverage
A Nationwide unit unlawfully failed to cover hail and wind damage to a Texas property, its owner alleged in federal court, accusing the insurer of fraud and violating state insurance statutes over unfair settlement practices and prompt claim payment and seeking over $1 million in damages.
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February 07, 2025
5th Circ. Upholds High School's Win In Gym Fire Suit
The Fifth Circuit on Thursday upheld a Louisiana high school's win in its suit claiming that a flooring company caused a gym fire, holding that the high school has a right of action for property damage to the gymnasium.
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February 07, 2025
Plaintiffs Lawyers Swarm Los Angeles Post-Fires
A deadly wildfire may be among the first covered by a new state fund that reimburses at-fault utility companies. This could mean billions of dollars for plaintiffs lawyers, and, if past fires are any indication, frustration and confusion for some victims.
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February 07, 2025
9th Circ. Says State Farm Unit Owes No More For Leaks
A State Farm unit owes no additional payment to a California medical center for lost income from water damage, a Ninth Circuit panel ruled, agreeing with a lower court that the insurer paid the amount due under the policy.
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February 06, 2025
Trump Tariffs Portend Higher Insurance Industry Costs
President Donald Trump's tariff regime is threatening sections of the insurance industry with higher costs or uncovered exposures, pushing policyholders with few applicable coverage lines at their disposal to explore more indirect forms of risk mitigation.
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February 06, 2025
Policyholder Attys See Calif. Smoke Case As Boon For LA
Smoke-damaged businesses in Los Angeles could benefit from a California federal court decision in January that likened smoke to asbestos, while differentiating smoke from viruses for insurance coverage purposes, according to policyholder attorneys.
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February 06, 2025
Paint Co. Says Chubb Owes $1M For Plant Explosion
A Columbus, Ohio, paint manufacturer accused Chubb of wrongfully refusing to reimburse it for more than $1 million after the company's resin manufacturing plant exploded and caused a hazardous chemical spill, in a suit removed Thursday by Chubb to Ohio federal court.
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February 06, 2025
House Committee Weighs Wildfire Strain On Calif. Insurers
A U.S. House of Representatives subcommittee met Thursday to discuss the recent California wildfires and how regulatory policy may aid future prevention of natural disasters, as experts emphasized that the fires only further exposed the state's ongoing insurance crisis.
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February 06, 2025
Pillsbury Adds Insurance Partner From Morgan Lewis
Pillsbury Winthrop Shaw Pittman LLP has announced the addition of an insurance recovery expert from Morgan Lewis as a partner in its Washington, D.C., office to advise and represent insurance policyholders.
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February 06, 2025
Insurance Litigation Week In Review
The Delaware Supreme Court agreed that a jury's fraud verdict against an ex-Xerox unit was improper and also limited a pharmaceutical company's recovery for a securities suit, while the Sixth Circuit refused to review Home Depot's data breach coverage loss. Here, Law360 takes a look at the past week's top insurance news.
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February 06, 2025
Insurance Expert Tackles Super Bowl Coverage Risks
The Kansas City Chiefs and Philadelphia Eagles earned their way to the Super Bowl only last week, but the NFL, host city New Orleans, the stadium and others have spent years planning and securing the necessary insurance coverage to ensure the biggest sporting event of the year is properly protected. Here, insurance industry veteran Lori Shaw spoke with Law360 about insuring one of the world's most-watched sporting events.
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February 05, 2025
Ga. Judge Balks At Zurich's Claim Of Surprise Testimony
A Georgia federal judge has rejected Zurich American Insurance's bid to strike supposed surprise testimony from a recent trial where it lost $12.2 million over a disputed rain damage claim from a solar farm, ruling Wednesday that the real surprise was Zurich's belated and meritless objections.
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February 05, 2025
Insurers Sued Over $8M In Water Damage At Wash. Condos
Farmers and Western National have allegedly breached their property insurance policies by refusing to cover nearly $8 million in hidden water damage at two Seattle-area condominium complexes, according to separate complaints filed by the condo owners associations.
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February 05, 2025
Apply Presuit Notice Law Retroactively, Insurer Tells Fla. Court
Universal Property and Casualty Insurance Co. on Wednesday urged the Florida Supreme Court to reverse a decision declining to apply a state law requiring presuit notice against a property insurance carrier to a policy purchased before the law's effective date.
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February 05, 2025
Calif. Panel Revives Malpractice Suit Against Insurer Attys
A California state appeals court revived an Allstate policyholder's legal malpractice suit against his insurer-appointed attorney, saying the policyholder sufficiently alleged the attorney's drafting of an underlying settlement in a wrongful death suit caused him damages.
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February 04, 2025
State Farm Seeks Emergency Rate Hike After Calif. Fires
State Farm asked the California Department of Insurance to approve an emergency rate hike, including a 22% average increase for homeowners across the state, citing the company's worsening financial condition following the fires in Los Angeles.
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February 04, 2025
Ecovie Brings Water Recycling Tech To Real Estate
With building developers and operators increasingly having to pay attention to water management, the property technology firm Ecovie is looking to do its part to help the situation, property by property.
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February 03, 2025
Climate Group Says Insurance Hikes Threaten Housing Market
The U.S. housing market could sustain a $1.4 trillion loss in value over the next 30 years as insurance costs surge and consumer demand shifts due to climate change, according to a report Monday from climate analytics company First Street.
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February 03, 2025
NC Justices Urged To Reject Appeal Over Rate Hike Approvals
North Carolina's insurance commissioner urged the state's highest court to reject a policyholder's appeal challenging a series of insurer rate hike approvals in court, saying an appeals panel correctly found that the policyholder failed to support his claims that intervening in the preceding approval process was impossible.
Expert Analysis
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Fla. Bill Would Rein In Personal Injury Litigation Excesses
A recently proposed bill in the Florida House that would change bad-faith laws and the admissibility of medical bills for services performed under a letter of protection would provide reasonable checks on practices that are far too common in personal injury cases in the Sunshine State, say attorneys at Baker Donelson.
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A Missing Issue In 'Blank Space' Insurance Ruling
As Norwegian Hull Club v. North Star heads to trial in Florida federal court, the most interesting part of the court opinion denying summary judgment is the argument it doesn't address — contra proferentem, which could have been used to resolve the case's blank space ambiguity in the policyholder's favor, say Jeffrey Mikoni and Scott Greenspan at Pillsbury.
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High Court Ax Of Atty-Client Privilege Case Deepens Split
The U.S. Supreme Court's recent dismissal of In re: Grand Jury as improvidently granted maintains a three-way circuit split on the application of attorney-client privilege to multipurpose communications, although the justices have at least shown a desire to address it, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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Wis. High Court Ruling May Open Door To Coverage Exception
The Wisconsin Supreme Court’s recent decision in Dostal v. Strand finding that an insurer had to defend a civil action following the defendant's criminal conviction on the same facts nonetheless may suggest an exception to the complaint test for determining an insurance company's defense obligation, say David Hollander and Clementine Uwabera at Stafford Rosenbaum.
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Trial Lawyers Rejoice: Justices May Clarify Issue Preservation
The U.S. Supreme Court's recent grant of certiorari in Dupree v. Younger should be a boon to trial and appellate lawyers as the decision will likely standardize a rule for appellate issue preservation, bringing much-needed clarity to an area critical to general litigation success, says Jeremy Christiansen at Gibson Dunn.
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Minimizing Landlord Exposure To NY's Gray Cannabis Market
As New York rolls out its legal adult-use cannabis regime, landlords renting to as-yet unlicensed cannabis establishments may face liability under two statutes — but a few commonsense steps can help protect them from this risk, say attorneys at Carter Ledyard.
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Cultivating Good Relationships With Insurance Regulators
Excerpt from Practical Guidance
Insurers can develop mutually beneficial working relationships with insurance regulators by following some simple tips for streamlining communication, knowing how and when to ask for help, and treating regulatory staff with professional courtesy, says Layna Rush at Baker Donelson.
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How Ohio Software Ruling Implicates Crypto Insurance Claims
The Ohio Supreme Court's recent decision in EMOI Services v. Owners Insurance, holding that software can never be physically damaged, has limited precedential value for property claims, but serious implications for cases involving loss or damage to intangible assets like cryptocurrency and non-fungible tokens, say Jane Warring and Shannon O’Malley at Zelle.
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Courts Should Reject Mandatory Arbitration In Insurance Suits
The case of Friends of Young Audiences v. Certain Underwriters, currently before a Louisiana federal court, is one of several pending opportunities for courts to support policyholder rights by declining to enforce mandatory arbitration provisions in insurance contracts, say Christopher Kuleba and Maria Castro Sanchez at Reed Smith.
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What To Expect In Builder's Risk Insurance Claims In 2023
The builder's risk insurance industry is in store for more complex claims this year due to rising interest rates, labor and materials volatility, and externalities complicating project scheduling, say Jane Warring at Zelle and Michael Haugen at J.S. Held.
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Learning From This Year's Legal Industry Discrimination Suits
To limit the risk of lawsuits and make the workplace a more welcoming environment for female attorneys, it is important to reflect on lawyers' recent discrimination and sexual harassment claims against law firms and public employers, says Hope Comisky at Griesing Law.
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More Stringent Calif. Claim Law Could Benefit Policyholders
Although a new California statute that imposes additional requirements for policyholder presuit demands — effective Jan. 1 — was ostensibly passed as a bad faith liability shield for insurers, used correctly it may provide a more specific road map for plaintiff recovery, says Shanti Eagle at Farella Braun.
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Hard Insurance Market Will Influence Legal Industry, Economy
As the cost of claims starts to outstrip the value of premiums, insurers are denying more claims and considering scaling back coverage, leading to an influx of legal work and potential holes in the market, says Bruce Hepburn at Mactavish.