A Florida district court recently granted summary judgment in favor of an insurer, allowing it to rescind a general liability policy because the insured knowingly made misrepresentations on the insurance application.
Read More Florida District Court Finds Insurer Entitled To Rescind Policy Due To Insured’s Misrepresentations on Application and Grants Summary Judgment Despite Claim That Insurer Knew of Misrepresentations and Failed to Exercise Due Diligence
Coverage & Claims
New York Federal Court Finds that Arbitrator’s Resignation Due to Illness Means that Arbitration Must Start Over From the Beginning
By Troutman Pepper Locke on
Insurance Company of North America and INA Reinsurance Company (“INA”) reinsured Public Service Mutual Insurance Company (“PSMIC”) pursuant to a series of excess of loss reinsurance contracts, effective from 1971 to 1986 (the “Reinsurance Contracts”). In 2005, PSMIC settled a claim against its insured, Deleet Merchandising Corporation, at a site in Newark, New Jersey (the “Deleet claim”) and allocated the loss pro-rata over fifteen insurance policies PSMIC had issued to Deleet between 1971 and 1986. PSMIC then billed its reinsurers, including INA, for the Deleet claim based upon this allocation.
Fifth Circuit Court of Appeals: Insured Can Recover Damages for Mental Anguish under Louisiana Bad Faith Statute Where Insurer Acted in Bad Faith by Delaying Payments
By Troutman Pepper Locke on
The Fifth Circuit Court of Appeals recently ruled that a Louisiana insured, who suffered Hurricane Katrina-related damages, can recover damages for mental anguish when its insurer acts in bad faith.
Massachusetts High Court Rules That Exclusion With “Arising Out Of” Language Extends To Conduct By Third Parties
By Troutman Pepper Locke on
The Massachusetts Supreme Judicial Court recently held that an intellectual property exclusion barring coverage for claims “arising out of” the misappropriation of trade secrets extended to the misappropriation of trade secrets by a third party.
Eleventh Circuit Finds Pozzi Insurer Waived Its Defective Component Defense By Not Raising Issue On Appeal
By Troutman Pepper Locke on
In Pozzi Window Co. v. Auto-Owners Ins. Co., No. 05-10559 (11th Cir. Sept. 26, 2008), the U.S. Court of Appeals for the Eleventh Circuit affirmed the judgment against an insurer, finding that the general contractor’s commercial general liability (“CGL”) policy covered damages from water leakage around windows that a subcontractor had installed in a multimillion dollar home. …
Read More Eleventh Circuit Finds Pozzi Insurer Waived Its Defective Component Defense By Not Raising Issue On Appeal
Eleventh Circuit Finds Release Of Insured Bars Excess Insurer’s Bad Faith Action Against Lower-Level Insurer
By Troutman Pepper Locke on
In Federal Ins. Co. v. National Union Ins. Co. of Pittsburg, P.A., No. 07-12274 (11th Cir. Oct. 30, 2008), the U.S. Court of Appeals for the Eleventh Circuit held that an excess liability insurer could not maintain a bad faith action against a lower-level insurer that had settled the underlying tort claim and caused the injured parties to release the insured and all its insurers.
UK: EL Policy Trigger Judgment Appealed
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
On 2 January 2009 an appeal against the Employers’ Liability Trigger judgment (reported on our blog here) was lodged with the Court of Appeal. While an appeal was not unexpected, it may reinject uncertainty into the EL market. As yet, no hearings of the appeal have been scheduled.
UK: JP Morgan v Springwell: Costs Awarded on Indemnity Basis After Unsuccessful Investment Losses Claim
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
Springwell, the unsuccessful party in JP Morgan v Springwell, failed to establish a case that the investment bank was liable for Springwell’s investment losses, and the High Court awarded costs on an indemnity basis against it. …
Read More UK: JP Morgan v Springwell: Costs Awarded on Indemnity Basis After Unsuccessful Investment Losses Claim
Eleventh Circuit Certifies Conflict-of-Law Question to Florida Supreme Court: Does Law of Place of Contracting or Law of Place of Insured’s Risk Govern Coverage Under CGL Policy?
By Troutman Pepper Locke on
In Fidelity & Guaranty Co. v. Liberty Surplus Ins. Co., No. 08-10544 (11th Cir. Dec. 2, 2008), the United States Court of Appeals for the Eleventh Circuit certified to the Florida Supreme Court the question of whether the law of the place of contracting or the law of the place of the insured’s risk governs a coverage dispute arising from a commercial general liability (“CGL”) policy.
Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy
By Troutman Pepper Locke on
The Supreme Judicial Court of Massachusetts recently held that claims against a livery service for negligently dropping off a drunken passenger in a location where he was likely to drive home “arose out of” the use of the livery service’s van, as the term “arise out of” is broadly interpreted in construing the scope of coverage under auto policies. …
Read More Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy