Mealey's Insurance Pleadings : Mealey's : Legal News & Analysis

Mealey's Insurance Pleadings

January 22, 2026
Contractor, Subcontractor Appeal Finding Insurer Owed No Duty To Indemnify

PENSACOLA, Fla. — A contractor and subcontractor appealed to the 11th Circuit U.S. Court of Appeals a federal judge in Florida’s order finding that the subcontractor’s insurer owed no duty to indemnify the subcontractor or the contractor that hired it for damages owed after the U.S. Navy found defects in renovations the contractor, subcontractor and other subcontractors did on two buildings at the naval air station in Pensacola.
January 21, 2026
GE, Others Say PCB Injury Indemnification Lawsuit Belongs In Federal Court

ST. LOUIS — General Electric Co., along with other defendants, on Jan. 20 filed a supplemental memorandum in Missouri federal court arguing that Monsanto Co.’s motion to remand to Missouri state court the lawsuit it brought seeking indemnification for litigation related to alleged injuries from exposure to polychlorinated biphenyls (PCBs) should be denied because federal officer removal jurisdiction applies.
January 21, 2026
Grain Production Firm Appeals Judgment Order In Defective Bin Coverage Dispute

INDIANAPOLIS — On Jan. 20, a grain production firm appealed to the Seventh Circuit U.S. Court of Appeals a federal judge in Indiana’s order vacating trial and entering final judgment in a case brought by a grain equipment company’s insurer against the grain equipment company and grain production firm regarding losses for the repair and replacement of leaky grain storage bins.
January 21, 2026
Insurer, Regulator Seek Dismissal Of Agent’s Crop Insurance Commission Suit

WASHINGTON, D.C. — An insurer and a federal regulator moved to dismiss a crop insurance agency’s declaratory judgment complaint alleging that agent commissions were unlawfully reduced and policy transfers were coerced, arguing that the claims fall outside the court’s jurisdiction, rest on statutes that create no private right of action and amount to contractual and regulatory disputes that must be dismissed or resolved through arbitration.
January 20, 2026
Insurer: Judge Should Dismiss Subcontractor’s Remaining Claims

LAS VEGAS — After a federal judge in Nevada granted partial summary judgment in favor of an insurer in a subcontractor’s action against it because the construction defect-related claims were not covered because the subcontractor was not an additional insured under the policy, the insurer filed a supplemental brief arguing that the remaining claims fail for the same reason.
January 20, 2026
Homebuilder Argues Judge Wrong To Find No Coverage For Arbitration Award

NEW ORLEANS — In its opening brief in the Fifth Circuit U.S. Court of Appeals, a homebuilder argues that a federal judge in Texas was wrong to grant summary judgment in favor of the builder’s commercial liability insurer in its suit seeking indemnification for an arbitration award for damages caused by construction defects in a home it built; it argues that the lower court abused its discretion in finding that no coverage existed under the policy.
January 20, 2026
Insured Says Property Insurer Acted In Bad Faith By Relying On Pollution Exclusion

DENVER — A property insurer breached its contract and acted in bad faith by relying on its policy’s pollution exclusion to deny a portion of an insured’s claim for damages caused by the release of asbestos during a fire in a nearby condominium unit, an insured maintains in a lawsuit filed in Colorado federal court.
January 16, 2026
Homeowners: 9th Circuit Broke Precedent Finding No Coverage For Faulty Work

SEATTLE — A group of homeowners filed a petition for rehearing and rehearing en banc on Jan. 15 in the Ninth Circuit U.S. Court of Appeals, arguing that a Ninth Circuit panel broke with precedent in finding that coverage for a development company from claims of faulty work brought by the homeowners is barred by a policy exclusion related to the construction of tract housing.
January 15, 2026
LTD Claimant Takes Pre-Existing Condition Exclusion Fight To 9th Circuit

SAN FRANCISCO — Arguing that the trial court made errors on de novo review including “expansively applying a pre-existing condition exclusion to bar coverage for a disability caused by post-coverage traumatic injuries” and “disregarding uncontroverted medical evidence,” an appellant claimant filed a Jan. 14 brief urging the Ninth Circuit U.S. Court of Appeals to reverse an order that upheld denial of her claim for long-term disability (LTD) benefits.
January 15, 2026
Subcontractor: Court Wrong To Prevent Recovery From Sub-subcontractor, Insurer

OKLAHOMA CITY — In a reply brief filed Jan. 14, a subcontractor argued that a federal judge in Oklahoma should reconsider granting a motion to limit asserted damages filed by a sub-subcontractor and its insurer in a third-party complaint brought by the subcontractor in a construction defects case; the subcontractor argued that it should not be judicially estopped from seeking recovery from the sub-subcontractor or its insurer.
January 15, 2026
Insureds Allege FAIR Plan Mishandled, Underpaid Wildfire Smoke Claims

LOS ANGELES — A pair of property insurance policyholders sued the California FAIR Plan Association in state court, alleging that the association breached statutory coverage requirements and engaged in bad faith claims handling by relying on policy provisions that impermissibly restricted coverage for wildfire smoke contamination and loss-of-use claims stemming from the January 2025 Los Angeles wildfires.
January 15, 2026
RICO Defendants Say MGA, Reinsurer, Sought Leave To Amend Complaint In Bad Faith

BROOKLYN, N.Y. — The defendants in a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit filed a letter in a New York federal court urging denial of a reinsurer and a management general agency’s oral request to amend their first amended complaint (FAC) and dismissal of the case with prejudice, arguing that incurable RICO standing defects would remain and that the proposed amendment was sought in bad faith after plaintiffs advanced contradictory arguments.
January 14, 2026
Reinsurers, Insurers Ask To Seal Summary Judgment Briefs In Indemnification Case

TRENTON, N.J. — The parties in a dispute between insurers and reinsurers over indemnification for asbestos bodily injury claims moved to seal confidential information as part of their cross-motions for summary judgment in a New Jersey federal court, stating that the filings contain nonpublic, competitively sensitive business information and that disclosure would cause competitive harm.
January 14, 2026
Insureds: Insurer’s ‘Improper,’ ‘Baseless’ Sur-reply Should Be Disregarded By Court

NEW YORK — Justin Baldoni, Wayfarer Studios LLC, It Ends With Us Movie LLC and its movie studio officers asked a New York federal court to disregard their management liability insurer’s letter motion to file a sur-reply to their reply in support of their motion to dismiss the insurer’s lawsuit seeking a declaration that it has no duty to provide coverage for Blake Lively’s sexual harassment, hostile work environment and retaliation action.
January 13, 2026
Insureds Appeal Finding That No Defense Owed For Faulty Power Pole Installation

LOS ANGELES — A contractor and a subcontractor separately appealed judgment against them to the Ninth Circuit U.S. Court of Appeals after a federal judge in California found that an insurer did not owe a duty to defend or indemnify the subcontractor in an underlying suit brought by the contractor to recover costs and expenses incurred in the inspection and remediation of nonconforming installations of power pole anchors and guy wires by the subcontractor.
January 12, 2026
Condominium Association Dismisses Appeal Of Ruling Over Coblentz Agreement

ATLANTA — A condominium association on Jan. 11 voluntarily dismissed its appeal to the 11th Circuit U.S. Court of Appeals of a Florida judge’s order granting summary judgment to an insurer sued by a condominium association, an assignee for an insured general contractor, to collect funds agreed to under a Coblentz settlement in an underlying suit stemming from defects in the construction of a condominium building, as well as the judge’s order denying the condominium association’s motion for reconsideration.
January 08, 2026
Stipulation Of Dismissal Filed In Bad Faith Suit Over $70K Life Policy

ALBANY, Ga. — Stating “that all claims are resolved,” a life insurer filed a stipulation of dismissal with prejudice in a Georgia federal court in a breach of contract and bad faith suit against it by the beneficiary of a $70,000 life insurance policy.
January 08, 2026
Tax Firm Moves For Summary Judgment In Bid To Vacate IRS Captive Final Rule

DALLAS — A tax firm moved for summary judgment in a Texas federal court in its challenge to an Internal Revenue Service final rule on microcaptive insurance arrangements, arguing that the agency acted arbitrarily and capriciously by imposing reporting requirements without identifying facts or data showing that microcaptive transactions can potentially be done for tax avoidance or evasion.
January 08, 2026
California FAIR Plan Sued Over Alleged Unlawful Wildfire Smoke Claim Denials

LOS ANGELES — A pair of property insurance policyholders sued the California FAIR Plan Association in state court alleging that the state’s “insurer of last resort”engaged in bad faith insurance practices and breach of contract by relying on unlawful policy provisions to deny or underpay wildfire smoke contamination and loss-of-use claims arising from the January 2025 Los Angeles wildfires, in violation of California insurance law.
January 07, 2026
Insurer Disputes Coverage For Suit Seeking Damages For Minor’s Video Game Addiction

JONESBORO, Ark. — An insurer filed suit in an Arkansas federal court seeking a declaratory judgment that it has no duty to defend or indemnify its insured against an underlying lawsuit seeking damages for video game addiction and/or internet gaming disorder that was allegedly suffered by a minor.
January 06, 2026
Homeowner Brings Breach Of Contract, Bad Faith Claims In Underpayment Dispute

LOS ANGELES — A homeowner alleges in a California state court that a property insurer breached its insurance contract and acted in bad faith by refusing to fully pay for covered wind, rain and water damage to his residence, instead issuing only partial payments totaling about $3,250 on a claim seeking nearly $97,000 in repair and mitigation costs.
January 06, 2026
Insured Urges High Court To Review Jurisdiction Ruling In PFAS Exposure Suit

WASHINGTON, D.C. — An insured urges the U.S. Supreme Court to grant its petition for a writ of certiorari seeking review of the Sixth Circuit U.S. Court of Appeals’ finding that a district court erred in remanding a declaratory judgment claim and retaining jurisdiction over breach of contract and bad faith claims in a dispute over coverage for underlying per- and polyfluoroalkyl substances (PFAS) exposure suits, noting in its reply brief that the case presents an “ideal opportunity” to resolve a split among the circuits regarding when a district court is required to exercise discretion over mixed claims.
January 05, 2026
Defendants Argue Regulatory Unwinding Moots Derivative Captive Pool Claims

WILMINGTON, Del. — The defendants in three related cases concerning a disputed captive reinsurance pool seek dismissal of a verified amended and supplemental derivative complaint, arguing that the challenged captive pool restructuring was fully unwound under regulatory supervision, rendering the claims moot, and that the post-unwinding corporate structure did not alter policyholder rights.
December 19, 2025
Insured Railroad Company Says Carriers Owe Coverage For Settlement Of Asbestos Suit

BOSTON — A number of insurers of a railroad company breached their contracts of insurance and acted in bad faith by refusing to reimburse an insured for a settlement of an underlying asbestos personal injury suit, the insured says in a complaint filed in Massachusetts state court.
December 18, 2025
Class Counsel Seeks 5% Attorney Fee Award In ACA Class Action

WASHINGTON, D.C. — Class counsel filed a reply brief in further support of their request for an attorney fee award of 5% of settlement classes’ net in a risk-corridor payment class action under the Patient Protection and Affordable Care Act (ACA), arguing that the fee would not result in an “unjustified windfall.”