Mealey's Emerging Insurance Disputes : Mealey's : Legal News & Analysis

Mealey's Emerging Insurance Disputes

August 25, 2025
Judge Denies Insurer’s Summary Judgment Motion, Stays Sexual Abuse Coverage Suit

LOS ANGELES — A federal judge in California denied an insurer’s motion for summary judgment in its lawsuit seeking rescission of an assisted living facility’s insurance policy and granted the insured’s motion to stay the coverage dispute until discovery is completed in an underlying action alleging that an elderly patient suffered sexual abuse while she was as a resident at the insured’s facility.
August 25, 2025
Insurers Appeal Duty To Defend, Indemnify Ruling In Sex Trafficking Coverage Suit

NORFOLK, Va. — Insurers filed a notice indicating that they are appealing a federal court’s ruling that granted an insured’s motion to dismiss their lawsuit seeking a declaratory judgment that they have no duty to defend or indemnify against a Jane Doe’s claims that she was trafficked for sex at a hotel that was owned or operated by the insured, challenging the court’s ruling that the policy unambiguously covers the conduct alleged in the underlying action.
August 20, 2025
‘Coverage Position Is Frivolous And Unfounded,’ Insured Argues In Data Breach Suit

GAINESVILLE, Fla. — An insured sued its insurer in a federal court in Georgia for breach of contract and bad faith seeking cyber defense coverage for putative class actions brought as a result of a 2024 data breach.
August 20, 2025
Insured Sues D&O Insurer For Defense Costs Arising From Securities Fraud Suit

WILMINGTON, Del. — A corporation insured sued its directors and officers liability insurer in a Delaware federal court for breach of contract and seeks a declaration that the insurer must promptly reimburse it for the costs it has incurred in defending an underlying securities fraud lawsuit brought by shareholders.
August 20, 2025
Federal Judge: Suits Allege Insureds Intentionally Paid Terrorists; No Coverage Owed

SHERMAN, Texas — A Texas federal judge held that insurers have no duty to defend against underlying lawsuits alleging that insureds violated the federal Anti-Terrorism Act because the underlying actions assert that the insureds “intentionally made payments” to foreign terrorist organizations and, as a result, do not allege an occurrence under the policies.
August 20, 2025
Insurer Disputes Coverage For Suit Alleging Dental Office Violated Privacy Rights

CHICAGO — A commercial general liability and umbrella insurer filed suit in a federal court in Illinois seeking a declaration that it has no duty to defend or indemnify for an underlying putative class action alleging that its dental office insured violated privacy rights through its use of internet tracking that collected private information without notice and without consent, arguing that the policy exclusion for access to/disclosure of private information bars coverage.
August 19, 2025
Delaware High Court Affirms Ruling In Insurers’ Favor In Opioid Coverage Dispute

WILMINGTON, Del. — The Delaware Supreme Court on Aug. 18 affirmed a lower court’s ruling that denied CVS Health Corp.’s motion for partial summary judgment and granted its insurers’ motion for partial summary judgment in their lawsuit disputing coverage for 218 underlying opioid lawsuits, agreeing with the lower court that, under ACE American Insurance Co. v. Rite Aid Corp., the underlying lawsuits fail to seek damages because of any specific bodily injury or damage to any specific property to trigger coverage.
August 19, 2025
Judge: Professional Services Exclusion Bars Coverage For Faulty DNA Analysis

FORT PIERCE, Fla. — A federal judge in Florida determined that an insurance policy’s professional services exclusion expressly bars coverage for the insured’s faulty DNA analysis, granting the insurer’s motion to dismiss an international forensic firm’s lawsuit seeking to collect an underlying $877,245 default judgment entered against the insured.
August 18, 2025
Texas High Court Refuses To Review Coverage Dispute Over Fatal Shooting

TYLER, Texas — The Texas Supreme Court refused to review an appeals panel’s ruling that affirmed a lower court’s grant of a homeowners insurer’s motion for partial summary judgment in its declaratory judgment lawsuit disputing coverage for an underlying wrongful death action.
August 18, 2025
Panel Affirms Coverage Issue, Reverses Attorney Fees Award In Injury Coverage Suit

NEW YORK — The Second Circuit U.S. Court of Appeals affirmed a lower federal court’s judgment declaring that a subcontractor’s commercial general liability insurer has a duty to indemnify a property owner in an underlying personal injury lawsuit that occurred during construction at the premises but reversed the lower court’s award of attorney fees in favor of the property owner’s insurer.
August 12, 2025
COMMENTARY: Shifting Cyber Risk: The Critical Role Of Indemnification In Vendor Contracts

By Latosha M. Ellis and Veronica P. Adams
August 11, 2025
COMMENTARY: The Forever Chemical: Regulation, Litigation And Insurance

By Robert D. Chesler, Arthur J. Clarke, Walker Prentke, Brian Della Torre and Matthew J. Sinkman
August 15, 2025
No Coverage Owed For Elder Abuse Suit, Insurer Argues In Federal Court

SACRAMENTO, Calif. — An insurer filed suit in a California federal court seeking a declaratory judgment that it owes no coverage for an underlying sexual battery, negligence and elder abuse lawsuit brought against its insured and its subsidiaries, arguing that the policy’s exclusions for criminal acts and assault, battery, abuse and molestation bar commercial general liability coverage and that the policy’s professional liability coverage was not triggered because the alleged abuser was not providing health care professional services at the time of the assault.
August 14, 2025
Insured Appeals, Insurer Seeks Attorney Fees In Coverage Suit Over Fatal Shooting

GREAT FALLS, Mont. — An insured filed a notice of appeal of a Montana federal court’s finding that a liquor liability insurance policy’s Absolute Firearms Exclusion bars coverage for an underlying negligence action arising from a fatal shooting at the insured’s bar the same day the insurer moved for attorney fees incurred in the underlying action.
August 14, 2025
N.J. Panel Affirms Dismissal Of Townhouse Owner’s Bad Faith Coverage Dispute

TRENTON, N.J. — A New Jersey appeals panel affirmed a lower court’s dismissal of a townhouse owner’s breach of contract and bad faith lawsuit seeking coverage for underlying intentional interference, assault and harassment claims brought against him by a condominium association and its board members, finding that the underlying claims are premised on the plaintiff’s intentional acts and intent to cause the alleged harm.
August 14, 2025
N.Y. Panel Reverses Ruling Against Insurance Broker In Breach Of Contract Suit

BROOKLYN, N.Y. — A New York appeals panel on Aug. 13 reversed a lower court’s denial of an insurance broker’s motion for summary judgment on a remaining breach of contract claim in a lawsuit alleging that it failed to procure appropriate insurance coverage, finding that the plaintiffs failed to raise a triable issue of fact.
August 13, 2025
Recognition Doctrine Decision Spurs Supplemental Briefs In Oil Seizure Row

NEW YORK — A collection of reinsurers disputing whether the 2020 seizure of crude oil at a Venezuelan port arose from an “insurrection” as defined in its marine cargo reinsurance contract with CITGO Petroleum Corp. filed a supplemental brief in the Second Circuit U.S. Court of Appeals citing a decision in an analogous case, arguing that it supports their claim that the recognition doctrine should not have been used to grant partial summary judgment to CITGO on the insurrection element; CITGO responded that the case is distinguishable because it was “limited by the New York Convention, which does not apply here” and maintains that the summary judgment should stand.
August 13, 2025
Insurers’ Coverage Duties Not Triggered For Earplug Liability MDL, Majority Affirms

WILMINGTON, Del. — A majority of the Delaware Supreme Court on Aug. 12 affirmed a lower court’s summary judgment ruling in favor of liability insurers in a coverage dispute arising from an underlying earplug product liability multidistrict litigation that resulted in a $6 billion settlement and millions of dollars of defense costs, agreeing with the lower court that the insurers’ coverage obligations were not triggered because payments made by the insured’s corporate parent did not satisfy the self-insured retention because the corporate parent was not a “named insured.”
August 13, 2025
Contractor Appeals No Coverage Ruling For Negligence Suit Over House Cleaner’s Death

GALVESTON, Texas — A contractor insured filed a notice indicating that it is appealing a Texas federal court’s opinion that a commercial general liability insurer has no duty to defend or indemnify for an underlying negligence lawsuit brought against the insured because the underlying claims arise from an assault and battery, which resulted in the death of a house cleaner.
August 12, 2025
Shutdown Orders Caused Insured’s Losses, Not Pandemic, Minnesota Panel Says, Reverses

ST. PAUL, Minn. — A Minnesota appeals panel on Aug. 11 reversed a lower court’s summary judgment ruling in favor of a commercial property insurer in an insured’s coverage dispute arising from the COVID-19 pandemic, ruling that the governmental orders that shut down 150 of the insured’s health and fitness clubs in response to the pandemic are the causes of the insured’s losses for purposes of determining the number of occurrences subject to the policy’s “Interruption By Communicable Disease” coverage limit.
August 12, 2025
Law Firm Credibly Alleges Breach Of Duty To Indemnify In Cyber Crime Coverage Suit

SEATTLE — A federal judge in Washington held that a law firm insured plausibly alleges that a commercial cyber insurance policy covers its liability under the Security Breach Liability provision, refusing to dismiss the insured’s claim that the insurer breached its duty to indemnify.
August 11, 2025
Judge Refuses To Dismiss Chemical Company’s Coverage Suit Arising From Explosion

BEAUMONT, Texas — A federal judge in Texas denied an insurer’s motion to dismiss a sustainable chemical company’s breach of contract and declaratory judgment lawsuit seeking to obtain coverage for the full value of its business interruption loss caused by an explosion at a Texas plant, finding that the company sufficiently pleaded a right to sue the insurer “based on an implied agreement outside the Reinsurance Agreement.”
August 11, 2025
Connecticut Judge Refuses To Strike Bad Faith Claims In Cryptocurrency Loss Suit

MILFORD, Conn.— A Connecticut judge denied a homeowners insurer’s motion to strike two claims for breach of the implied covenant of good faith and fair dealing in a coverage dispute arising from the insured’s cryptocurrency loss, finding that the insured has asserted specific conduct that indicates actions “with conscious bad faith design.”
August 08, 2025
Judge Grants Insured’s Motion To Certify Order In Suit Over False Advertising

HONOLULU — A federal judge in Hawaii on Aug. 7 granted an insured’s motion to certify an order granting summary judgment in favor of an insurer in a coverage dispute arising from claims that the insured sold coffee and falsely advertised that it contained 100% Kona coffee, allowing the insured to appeal the ruling on contract interpretation issues before discovery begins on its bad faith claim.
August 06, 2025
Shooting Death Direct Result Of Insured’s Foreseeable Actions, 6th Circuit Affirms

CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Aug. 5 held that a woman’s shooting death was a direct result the insured’s foreseeable actions and, as a result, the woman’s estate and the insured fail to demonstrate that the insured’s conduct falls under a homeowners insurance policy’s definition of an “occurrence,” affirming a lower federal court’s grant of the insurer’s motion for summary judgment in its declaratory judgment lawsuit.