Coverage & Claims

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An Illinois trial court recently addressed the issue of whether an insurer exhausted its limits of liability in paying nearly $90 million for an insured’s defense and indemnity associated with asbestos bodily injury claims.  CNA issued umbrella and excess insurance to Borg-Warner Corporation and contended that the occurrence limits of…
Read More Illinois Court: Multi-year Policy Limits Applied To Entire Policy Period, Not Annually, And Payments For Potentially Covered Claims Established Exhaustion

In Boyle v. Zurich American Insurance Company, 472 Mass. 649 (2015), decided on September 14, 2015, the Massachusetts Supreme Judicial Court (the “SJC”) indicated, to the dismay of the insurance defense bar, that the right to a defense under a liability insurance policy is not merely contractual, but rather…
Read More Massachusetts Highest Court Issues Important Decision On Insurers’ Duty to Defend and Liability for Multiple Damages

The Nevada Supreme Court has found that an insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and the insured, adopting California’s “Cumis Counsel” rule. While Nevada law allows “dual representation” such that insurer-appointed counsel represents both the insurer and the insured,…
Read More Independent Counsel Required: Nevada Supreme Court Follows California’s “Cumis Counsel Rule”

The Connecticut Supreme Court recently overturned a $34.7 million judgment against The Hartford Fire Insurance Company (“Hartford”) in a class action suit filed by over 1000 auto body repair shops alleging unfair trade practices by Hartford for paying the shops well below their hourly rates.

In 2009, a jury awarded…
Read More Connecticut High Court Overturns $35 million CUTPA Verdict in Auto Body Rate Case

In Preferred Mutual Insurance Company v. Vermont Mutual Insurance Company, 87 Mass App Ct. 510 (June 17, 2015), the Massachusetts Appeals Court discussed several interesting insurance coverage issues when it addressed a dispute between a homeowner’s insurer and a CGL insurer. The facts of the case were as follows.
Read More Massachusetts Appeals Court Holds Primary Insurer’s Excess “Other Insurance” Clause Does Not Avoid Duty To Defend

The global stock of insurance linked securities at the end of 2014 was approaching $25.2 billion.  Yesterday George Osborne unleashed the giant peach for the United Kingdom in a seemingly measured statement but one full of promises.

“2.228 Global reinsurance – the government announced at Autumn Statement 2014 that it…
Read More George Unleashes the Giant Peach

In a recent decision, a Massachusetts trial court addressed whether an insurer could recoup previously-paid indemnity and defense costs from its insured. Finding that the insured had not obtained the payments as a result of fraud or bad faith, and that the insurer had failed to cite policy language permitting…
Read More Massachusetts Court Rejects Insurer’s Attempt to Recoup Defense and Indemnity Payments

January 12, 2015 – Locke Lord LLP and Edwards Wildman Palmer LLP have officially merged, creating Locke Lord Edwards, a firm with more than 1,000 lawyers in 23 cities around the world as well as a combined history of more than 125 years. With joined revenues, it will be among…
Read More It’s Official: Locke Lord, Edwards Wildman Combination Launched; Locke Lord Edwards Expands Global Reach, Enhances Client Services

In Santacroce v. Sametz, a plaintiff brought suit against both the alleged tortfeasor for negligence, and the tortfeasor’s insurer for bad faith in violation of Mass. Gen. Laws chs. 176D and 93A. The insurer, as is often the case, moved to sever and stay the Chapter 176D and 93A claims. This motion was denied by the trial judge, who noted that “privileges [work product and attorney client] can be protected by less drastic methods than severance and staying these claims.”…
Read More Massachusetts Appeals Court Orders That 93A Claim Against Carrier Be Severed, Reverses Trial Court

On October 28, the United States District Court for the District of Massachusetts denied an insurer’s motion for summary judgment in a coverage action it had brought against its insured on a professional liability policy, an insurance broker who specialized in the placement of professional liability coverage for professionals including real estate agents and brokers.
Read More District of Massachusetts Finds Coverage Under A Professional Liability Policy In Underlying Case Centered On Unfair Competition