Coverage & Claims

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Just because a series of merger documents assert something to be true does not necessarily make it so, particularly when it comes to insurance coverage.  That was the lesson an excess-layer D&O carrier learned when it attempted to assert insured-versus-insured and fraud exclusions to defeat a claim to policy proceeds by the purchaser of a corporation in Wojtunik v. Kealy, No. 03-cv-02161 (D.Ariz. Mar. 31, 2011).  A copy of the court’s decision is available here. …
Read More Arizona Federal Court Permits Garnishment From Defunct Company’s D&O Insurers

In Mujur Bakat Sdn Bhd v Uni. Asia General Insurance Berhad & Ors [2011] EWHC 643 (Comm), the Claimants were the owners of a vessel called the M/V MUJUR 1 (the Vessel) and the Defendants were various underwriters which had underwritten a marine hull and machinery policy in respect of the Vessel (the Policy). The Policy was expressly stated to be governed by English law. …
Read More UK: High Court Rules on Proper Forum for Marine Insurance Claim

In Axa Sun Life Services v Campbell Martin [2011] EWCA Civ 133, the Court of Appeal reviewed standard appointed representative agreements entered into between Axa and several different companies. The appointed representatives claimed Axa had misrepresented the nature of the agreements and given collateral warranties, and both the misrepresentations and the warranties had induced them to enter into the agreements. …
Read More UK: Court of Appeal Reviews Entire Agreement Clauses

In 2009, Middlesex Mutual Assurance Company denied coverage under a Business Owners Policy for the collapse of a pier owned by its insured, Puerta de la Esperanza (“Puerta”). …
Read More In Pier Collapse Case, Mass. District Court Finds Breach of Contract, But No Duty to Interpret Policy in Favor of Insured

In Pennsylvania, as in many jurisdictions, a liability insurer’s initial duty to defend is determined solely on the basis of the allegations of the complaint in the underlying action. …
Read More Pennsylvania Federal Court Holds That Liability Insurer Must Defend Claim for Negligent Design Because It Is Unclear Whether the Claim Sounds in Contract or Tort

The Connecticut Appellate Court held recently that an exclusion in a liability policy for “Athletic Activity or Sports Participants” precluded coverage for a claim stemming from injuries that a participant in an outdoor team-building exercise allegedly suffered during a rope-assisted free fall from an elevated platform.  Community Renewal Team, Inc. v. United States Liability Ins. Co., AC 31317 (Conn. App., April 19, 2011). …
Read More Connecticut Appellate Court Holds That Athletic Activity Exclusion Applies to Outdoor Team-Building Activity

Thanks to the Supreme Court’s ruling in AT&T Mobility LLC v. Concepcion, businesses now have a mechanism to insulate themselves from costly class actions. In Concepcion, the Court considered whether states can invalidate arbitration agreements that prohibit class arbitration proceedings. …
Read More Client Advisory – Supreme Court Ruling Deals a Blow to Consumer Class Actions

The New York Appellate Division for the First Department recently reversed a decision of a lower court that had granted summary judgment to the plaintiff, an excess insurer, on a count of insurance bad faith against a primary insurer. Federal Ins. Co. v. North Amer. Spec. Ins. Co. et al., Docket No. 603926/05 (N.Y.A.D., 1st Dep’t, April 5, 2011). …
Read More New York Appellate Court Reverses Judgment of Insurance Bad Faith and Remands for Additional Fact-finding