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Mealey's Emerging Insurance Disputes

  • June 27, 2025

    Judge Refuses To Toss Bad Faith Claim In Coverage Suit Over Antitrust Conspiracy MDL

    DENVER — A federal judge in Colorado denied a data liability protection insurer’s motion to dismiss a common-law bad faith claim brought by a multifamily housing lessor insured in its lawsuit seeking coverage for an underlying multidistrict litigation alleging that it was involved in an antitrust conspiracy when it used revenue management software to artificially inflate multifamily housing rents above market across the country.

  • June 27, 2025

    Parties Dismiss 1 Insurer In N.C. Coverage Suit Arising From Opioid Epidemic

    WINSTON-SALEM, N.C. — Insureds and one insurer filed a joint stipulation asking a North Carolina court to dismiss the claims and counterclaims between them in a coverage dispute arising from the opioid epidemic.

  • June 27, 2025

    California Judge Denies Insured’s Motion For Summary Adjudication As To UCL Claim

    LOS ANGELES — A California judge granted an insured’s motion for summary adjudication as to his declaratory relief claim in a lawsuit alleging that the California Fair Plan Association (CFP) issued property insurance policies with fire coverage that is unlawfully restrictive as to smoke damage claims but denied the insured’s motion as to his unfair competition law (UCL) claim, finding that he failed to satisfy his burden to establish standing to bring the UCL claim.

  • June 27, 2025

    Judge Partly Denies Insurer’s Summary Judgment Motion In Trade Secret Dispute

    LAS VEGAS — A federal judge in Nevada granted in part and denied in part an insurer’s motion for summary judgment in a software provider’s lawsuit alleging that the insurer and another software provider misappropriated its trade secrets to develop a clone of its flood claims services system application.

  • June 27, 2025

    Professional Liability Policy Exclusion Applies, Louisiana Majority Rules, Reverses

    LAKE CHARLES, La. — A Louisiana appeals panel majority held that a professional liability insurance policy’s bodily injury exclusion unambiguously bars coverage for claims brought against a real estate company insured, reversing a lower court’s summary judgment rulings and remanding.

  • June 26, 2025

    Sub-Broker Wins Dismissal From Insureds’ Negligence Suit Over Warehouse Losses

    NEW YORK — In a one-paragraph June 25 order stating that the reasons were “set forth on the record today,” a New York federal judge dismissed a defendant said it “acted as a sub-broker” from a suit seeking $41 million in a dispute involving reinsurance and a warehouse in Afghanistan.

  • June 26, 2025

    Missouri Judge Enters $43.8M Judgment Against Law Enforcement Liability Insurers

    JEFFERSON CITY, Mo. — A Missouri judge entered a $43.8 million final judgment against law enforcement liability insurers after a jury determined that the insurers acted in bad faith and vexatiously refused/delayed a claim for coverage of a lawsuit brought against the city of Columbia, Mo., by a man who was convicted and incarcerated for robbery and homicide and later discharged from custody.

  • June 26, 2025

    U.S. High Court Denies Cert In Pennsylvania Underwriting Association Dispute

    WASHINGTON, D.C. — The U.S. Supreme Court denied a petition for a writ of certiorari filed by the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides insurance to health care providers, including those previously insured by insurers in liquidation, seeking review of a Third Circuit U.S. Court of Appeals holding that the JUA does not have constitutional rights to challenge the constitutionality of Pennsylvania laws due to JUA’s nature as a public entity instead of a private one.

  • June 24, 2025

    Judge: D&O Coverage Restored By Dilution Claims Exception To Policy Exclusion

    SAN DIEGO — A federal judge in California on June 23 held that a business and management indemnity insurer has a duty to defend and indemnify its insured against an underlying unfair dilution lawsuit because the “dilution claims exception” to the “insured vs. insured” exclusion restores directors and officers liability coverage, granting the insured’s motion for summary judgment and denying the insurer’s motion for judgment on the pleadings.

  • June 23, 2025

    Judge Denies D&O, Cyber Liability Insurer’s Motion To Dismiss $2.8M Coverage Suit

    OMAHA, Neb. — A federal judge in Nebraska on June 20 denied a directors and officers and cyber liability insurer’s motion to dismiss two private equity firms’ amended complaint seeking coverage for the $2.83 million they lost when an imposter investor hacked a reserve account, finding that the policy’s definition of “loss” is ambiguous.

  • June 23, 2025

    Judge Denies Insured’s Motion For Relief From Judgment In COVID-19 Coverage Suit

    ELIZABETH CITY, N.C. —A federal judge in North Carolina denied a hotel and restaurant owner insured’s motion for relief from a March 4, 2021, judgment dismissing its breach of contract and bad faith lawsuit arising from the coronavirus pandemic, rejecting the insured’s argument that the North Carolina Supreme Court’s ruling in N. State Deli, LLC v. Cincinnati Ins. Co. constitutes extraordinary circumstances that warrant relief.

  • June 20, 2025

    Florida Majority: No Coverage Owed For Negligence Suit Arising From Shooting Death

    MIAMI — A Florida appellate panel majority affirmed a lower court’s grant of summary judgment in favor of a businessowners insurer in its lawsuit seeking a declaratory judgment that it has no duty to defend or indemnify its homeowners association insured against an underlying negligent maintenance and security lawsuit, agreeing with the lower court that the plain and unambiguous policy terms do not provide coverage for the underlying claims arising from a shooting death in the insured’s development.

  • June 19, 2025

    Colorado Panel Partly Reverses Ruling In Insurer’s Favor In COVID-19 Coverage Suit

    DENVER — Noting two matters of first impression, a Colorado appellate court on June 18 reversed in part a lower court’s ruling in favor of an insurer in a retirement communities owner’s lawsuit seeking coverage for its losses arising from the coronavirus pandemic after finding that the insured stated a viable claim to recover some of its alleged losses pursuant to the policy’s health care endorsement.

  • June 18, 2025

    N.M. Panel: Policy Term ‘For A Security Breach’ Is Ambiguous; Coverage Triggered

    ALBUQUERQUE, N.M. — A New Mexico appeals court affirmed a lower court’s summary judgment ruling that a cyber insurance policy covered an underlying third-party claim seeking payment for invoices that a now insolvent health insurer mistakenly wired to a fraudulent bank account, finding that the policy term “for a security breach” is ambiguous and must be construed in favor of the insured and the “loss of money” policy exclusions do not apply.

  • June 18, 2025

    English Justice Rules That Aircraft Losses Fall Under War Risk Coverage

    LONDON — In a 230-page ruling pertaining to six cases filed over aircraft and engine leases affected by the legal and economic fallout of Russia’s February 2022 invasion of Ukraine, an English justice concluded in part that there were losses worth billions of dollars and that war risk (WR) rather than hull all risks (AR) coverage should apply.

  • June 18, 2025

    Insurer Says No Defense Owed To Company For Underlying Hair Relaxer Lawsuits

    ATLANTA — A company that purchased certain assets and liabilities of an insured is not entitled to coverage for underlying lawsuits alleging that hair relaxer products manufactured by the insured and others caused cancer diagnoses in individuals because the insurer did not consent to the transfer of any rights under its policies, the insurer says in a complaint filed in Georgia federal court.

  • June 17, 2025

    Illinois Panel Affirms Ruling In Favor Of Professional Liability Insurer

    CHICAGO — An Illinois appeals panel on June 16 affirmed a lower court’s summary judgment ruling in favor of a professional liability insurer in its declaratory judgment lawsuit disputing coverage for an underlying negligence action brought against its doctor insured, finding that the insurer owed no indemnity obligation for the underlying settlement because the doctor insured was not “legally obligated to pay” anything under the settlement terms.

  • June 17, 2025

    3rd Circuit Refuses To Reconsider Refusal To Throw Out BSA Reorganization Plan

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals denied two sets of abuse claimants’ petitions to rehear the majority’s dismissal of their appeals seeking to reverse a lower federal court’s confirmation order that affirmed the Boy Scouts of America’s third modified fifth amended Chapter 11 reorganization plan, which contemplates the creation of a settlement trust to “assume liability for all Abuse Claims.”

  • June 17, 2025

    CGL Insurer Removes City’s Coverage Suit Over $9.3M Wrongful Conviction Settlement

    DURHAM, N.C. — A commercial general liability insurer filed a notice in a North Carolina federal court seeking removal of the city of Concord’s breach of contract and declaratory judgment lawsuit alleging that the insurer has duty to defend, indemnify and contribute to a $9.3 million settlement of an underlying wrongful conviction lawsuit.

  • June 16, 2025

    Auto Insurer Dismissed From Class Action Complaint Alleging Barratry, Conspiracy

    HOUSTON — Two days after insureds filed a notice to voluntary dismiss an automobile insurer from their second amended class action complaint alleging claims for barratry and conspiracy by illegally sharing the personal information of car accident victims for solicitation, a federal judge in Texas dismissed the insurer with prejudice.

  • June 16, 2025

    Supreme Court Denies Auto Insurers’ Petition To Review Class Decertification Dispute

    WASHINGTON, D.C. — The U.S. Supreme Court on June 16 denied automobile insurers’ petition for writ of certiorari seeking review of a Ninth Circuit U.S. Court of Appeals majority’s conclusion that a lower court abused its discretion when it decertified a negotiation class because the insureds established that “injury could be calculated on a class-wide basis.”

  • June 16, 2025

    Mold Exclusion Bars Coverage For Underlying Wrongful Death Suit, Panel Says

    TRENTON, N.J. — A trial court erred in finding that a mold exclusion is ambiguous because the exclusion clearly precludes coverage for bodily injury or property damage claims caused directly or indirectly by mold, the New Jersey Superior Court Appellate Division said June 13 in partially reversing a trial court’s ruling.

  • June 16, 2025

    Issue Preclusion Bars Claims Under Renters Insurance Policy, 9th Circuit Affirms

    PORTLAND, Ore. — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s summary judgment ruling in favor of an insurer in its insured’s lawsuit seeking renters insurance coverage for an underlying arbitration award, agreeing with the lower court that issue preclusion bars the insured’s claims for declaratory relief, breach of contract and negligence per se.

  • June 13, 2025

    Split Louisiana Panel Reverses Judgment For Insurer In Asbestos Liability Dispute

    NEW ORLEANS — A split Louisiana appellate court reversed and remanded a lower court’s ruling granting summary judgment to an insurer and to the Louisiana Insurance Guaranty Association (LIGA) but denying a motion for partial summary judgment filed by family members in a dispute over their deceased relative’s death purportedly from asbestos exposure, finding that issues of fact remain regarding the failure of the insurer and LIGA to show the applicability of a certain policy exclusion to bar coverage.

  • June 13, 2025

    Magistrate Partly Grants Insured’s Motion To Compel In Coronavirus Coverage Suit

    NEW YORK — A federal magistrate judge in New York granted in part and denied in part a holding company for the U.S. interests in the Mandarin Oriental Hotel Group’s motion to compel its “all risk” insurers to produce certain documents they have withheld as privileged in a coronavirus coverage dispute, directing the insurers to produce communications with their reinsurers and produce documents containing reserve information unless there is another viable ground for withholding.