On January 23, 2009, Intel Corp. filed suit against American Guarantee and Liability Insurance Company (“AGLI”), in the United States District Court for the Northern District of California, alleging that AGLI owes a duty to defend Intel in its antitrust litigation with Advanced Micro Devices Inc. (“AMD”).
Read More Intel Commences Action Against Its Insurer for Coverage of Antitrust Litigation Under “Advertising Liability” Provision of Policy
Coverage & Claims
Insurer’s Denial of Indemnification of Insured’s Settlement with Claimants Upheld Where Insured Settled Without Insurer’s Consent
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
A California federal court recently held that the consent provision in an insurance policy obligates the insured to notify the insurer and obtain its consent before settling, offering to settle or otherwise incurring a contractual obligation.
Delivery of a Policy is not a Prerequisite to the Enforcement of its Terms; Insurer Can Deny Coverage Based on “Claims Made and Reported” Prerequisites Without First Investigating the Claim
The United States District Court for the District of Massachusetts recently held that delivery of a policy is not a prerequisite to the enforcement of its terms unless a policy so explicitly states. The court also held that an insurer can deny coverage for the failure to satisfy “claims made and reported” policy prerequisites without first investigating the claim.
Missouri Court of Appeals Finds No Right of Equitable Contribution Based on Other Insurance Clauses
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Missouri Court of Appeals, Eastern District recently held that a nurse’s professional liability insurer was not liable for contribution to her employer’s professional liability insurer after the latter settled a wrongful death claim involving the nurse.
Washington Supreme Court Holds that Procedural Bad Faith Claims Are Not Dependant on an Insurer Breaching its Duty to Defend, Settle, or Indemnify
By Troutman Pepper Locke on
The Washington Supreme Court recently held that a cause of action for bad faith claims handling is not dependant on whether the insurer breached its duty to defend, settle, or indemnify, either in the third-party context under the common law, or under the Washington Consumer Protection Act (“CPA”).
Environmental Claims – Limitation to Specified Storage Tanks Upheld
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
In Cain Petroleum Inc. v. Zurich American Insurance Company, A134133 (Or. Ct. App. Dec. 3, 2008), a company that operated gasoline stations sought coverage for a contaminant release under its “Storage Tank System Third Party Liability and Cleanup Policy,” which provided coverage for environmental cleanup costs and third party liability caused by releases from a “scheduled storage tank system” at 17 “scheduled location[s]” after a specific “retroactive date.”
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Read More Environmental Claims – Limitation to Specified Storage Tanks Upheld
Prior Knowledge Exclusion in Warranty Letter Relieves D&O’s Insurer’s Obligation to Pay Increased Limits
By Troutman Pepper Locke on
The United States District Court for the District of Colorado recently held that a warranty letter’s prior knowledge exclusion barred coverage for defense costs incurred by the insured directors and officers in an enforcement action initiated by the SEC. A copy of the decision can be found here.
New York Insurance Department Issues Circular Letter Regarding Late Notice Legislation, Which Takes Effect on January 17, 2009
“[A]ll liability policies” issued or delivered in New York on or after January 17, 2009 will be subject to the recent Legislation promulgated under Chapter 388 of the Laws of 2008 (the “Legislation”). The New York Insurance Department (“Department”) has issued Circular Letter No. 26 (2008), dated November 18, 2008, to remind liability insurers writing property/casualty policies of the changes resulting from the new law, and also to clarify certain aspects of the Legislation.
Did Hall Street Eliminate Manifest Disregard of the Law as a Valid Basis for Vacating or Modifying Arbitration Awards? A 2008 Summary of Conflicting Decisions
By Troutman Pepper Locke on
This past year we’ve followed the U.S. Supreme Court’s decision in Hall Street Associates, L.L.C. v. Mattel, Inc., No. 06-989 (U.S. Mar. 25, 2008), and whether courts have interpreted it as eliminating the doctrine of manifest disregard of the law, a judicially-created concept that provides parties with a basis for challenging an arbitration award beyond those grounds enumerated in the Federal Arbitration Act (“FAA”). …
Read More Did Hall Street Eliminate Manifest Disregard of the Law as a Valid Basis for Vacating or Modifying Arbitration Awards? A 2008 Summary of Conflicting Decisions
Florida Court Finds Coverage for Faulty Subcontractor Work Under CGL Policy
By Troutman Pepper Locke on
EAPD’s Donna Greenspan of the firm’s West Palm Beach office recently authored an article titled “Florida Court Finds Coverage for Faulty Subcontractor Work Under CGL Policy,” published in National Underwriter Property & Casualty. …
Read More Florida Court Finds Coverage for Faulty Subcontractor Work Under CGL Policy