Coverage & Claims

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Until last week, Indiana courts were strict in their treatment of an insurance bad-faith lawsuit. Not only must the plaintiff show ill will by the insurer, he must show that the insurer denied coverage wrongfully. E.g., Foster v. State Farm Fire & Cas. Co., no. 1:10-cv-20 (N.D. Ind. Aug. 17, 2011). …
Read More An Indiana Court Allows a Bad-Faith Claim Even Though the Insurer Denied Coverage Correctly

The Alexandros T [2013] UKSC 70 concerned the application of Articles 27 and 28 of EC Regulation 44/2001 (the Brussels Regulation). Where proceedings are issued in more than one Member State and involve the same cause of action, Article 27 requires any court other than the first seised to stay proceedings until jurisdiction is established by the first court seised. …
Read More UK: Supreme Court Refuses a Stay of Proceedings, Allowing Insurers to Pursue Damages for Breach of Settlement and Jurisdiction Agreements

In Rathbone Brothers Plc & Mr Michael Paul Egerton- Vernon v Novae Corporate Underwriting & Ors [2013] EWHC 3457 (Comm), Rathbone Brothers Plc (Rathbone) and Mr Michael Paul Egerton-Vernon (PEV) brought proceedings in the English High Court to recover under the excess layer of a professional indemnity insurance policy held with Novae Corporate Underwriting & Ors (Novae). …
Read More UK: English High Court Considers the Impact of a Consultancy Agreement on the Policy of Insurance and the Right to Subrogation

In a lengthy judgment, Mr Justice Andrew Smith found that damage resulting from the grounding of the vessel “Irene EM” was caused by an insured peril and, as a consequence, was covered by insurance. The judge also held that the vessel was a constructive total loss (CTL). …
Read More UK: English High Court Holds Vessel a Constructive Total Loss

The California Court of Appeal, Third District, in Yanez v. Plummer, 2013 WL 5915639, Cal. Ct. App. 3d Dist., No. C070726 (Nov. 5, 2013) recently held that a former employee deposed in connection with a co-worker’s personal injury suit may pursue malpractice claims against in-house counsel who failed to disclose the conflict of interest created by counsel’s dual representation of the employer-railroad and the employee. …
Read More California Court of Appeal, Third District Holds In-House Attorney May Be Liable for Malpractice for Failing to Warn Employee About Conflict

The New York State Assembly recently passed a number of bills seeking to amend the state’s insurance laws. Most significantly, Assembly Bill 7455A seeks to amend New York insurance law by prohibiting insurers from using “anti-concurrent causation” clauses in homeowner and commercial insurance policies to preclude coverage for flood claims. …
Read More New York Assembly Passes Bill Prohibiting “Anti-Concurrent Causation” Clauses

In Cohen v. American Security Insurance Co., the Seventh Circuit rang the death knell on mortgagors’ lawsuits complaining about the cost of force-place insurance bought by the mortgagors’ bank. When a bank makes a loan and takes a mortgage, the mortgagor’s real estate often is the bank’s security – that is, the bank’s assurance that its loan will be repaid, involuntarily if need be. …
Read More The Seventh Circuit Puts an End to Litigation Attacking the Cost of Force-Place Insurance

In Arts & Antiques Limited v Peter Richards & Towergate London Market Limited & Zurich Insurance Plc [2013] EWHC 3361 (Comm), the Court struck out claims by Arts and Antiques Limited (A&A) which sought to relitigate issues that were subject to a binding arbitration award. …
Read More UK: English High Court Denies Attempt to Relitigate Issues Already Decided in Arbitration Proceedings

In Genesis Housing Association Ltd v Liberty Syndicate Management Ltd (for and on behalf of Syndicate 4472 at Lloyd’s) [2013] EWCA Civ 117, the Court of Appeal confirmed the validity of basis of contract clauses in business insurance contracts. …
Read More UK: Court of Appeal Confirms the Validity of Basis of Contract Clauses in Business Insurance Contracts

The Court of Appeals of Texas recently held that a third-party claimant does not have standing to assert claims against a commercial general liability insurer.
Read More The Court of Appeals of Texas Holds Third-party Claimant Lacks Standing to Sue Commercial General Liability Insurer