Coverage & Claims

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On July 1, 2008, the Rhode Island Supreme Court ruled that the public nuisance suit filed by the state’s attorney general against various former lead pigment manufacturers, that resulted in a jury verdict against the manufacturers, should have been dismissed by the trial justice. …
Read More Rhode Island Supreme Court Rejects Public Nuisance Theory For Lead Paint Poisoning

Dickie Scruggs, the Mississippi lawyer who represented thousands of policyholders in their Hurricane Katrina coverage litigation against property insurers, was recently sentenced to five years in prison for conspiring to bribe a judge in a Hurricane Katrina case.  In addition, Scruggs was ordered to pay a fine of $250,000. …
Read More Dickie Scruggs Sentenced to Five Years in Prison

The Florida Supreme Court recently granted rehearing and issued a revised opinion in Auto-Owners Ins. Co. v. Pozzi Window Co., No. SC06-779 (Fla. June 12, 2008), six months after issuing its original opinion. …
Read More Florida Supreme Court Issues Revised Opinion In Pozzi: Claim For Repair Or Replacement Of Window That Was Defective Before Installation Is Not Covered By Standard CGL Policy

Last month, the New York Court of Appeals held that a tenant breached its lease and, in doing so, violated New York Insurance Law § 3404.  The court ruled that the lease was breached because the tenant obtaining insurance coverage that explicitly excluded terrorism losses from coverage. 

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Read More New York’s Highest Court Holds that Policy with Terrorism Exclusion Restricts the Cause of Potential Covered Damages

The California State Court of Appeals recently reaffirmed that, under California law, claims made in one policy period and reported in a subsequent policy period are not covered under either of consecutive “claims made and reported” policies when both policies require that a claim be made and reported during the same policy period. 

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Read More California State Court: Claim Made In One Period And Reported In A Subsequent Period Not Covered By “Claims Made And Reported” Policy

A California state court of appeals recently held that an insurer properly denied coverage after its insured failed to timely report a “claim” after receiving a demand letter. 

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Read More California State Court of Appeal Holds That Demand Letter Was A “Claim” That The Insured Was Required To Report Under Its Insurance Policy

The New York Court of Appeals denied a motion for rehearing in the Bi-Economy Market, Inc. v. Harleysville Insurance Company of New York case, thereby leaving intact its February 2008 decision allowing insureds  to recover “consequential damages” for improper denial of coverage.  The Court’s denial was made without comment. 

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Read More New York Court of Appeals Denies Motion for Rehearing Regarding Award of Consequential Damages for Bad Faith Breach of Insurance Contract

A New York federal court recently found that a lawsuit commenced by two insurance companies in run-off, Seaton Insurance Company and Stonewall Insurance Company, against their run-off manager, defendant Cavell USA Inc. and its principal, Ken Randall, was subject to the exclusive jurisdiction of the English courts, granting defendants’ motion to dismiss on that basis. …
Read More New York Federal Court Enforces Forum Selection Clause, Grant’s Run-off Administrator’s Motion to Dismiss

In Bedfordshire Police Authority (BPA) v. David Constable (sued on his own behalf and on behalf of all other members of Syndicate 386 at Lloyd’s) (the Syndicate) [2008] EWHC 1375, BPA sought a declaration that the Syndicate be liable to indemnify it in respect of BPA’s potential liability under the Riot (Damages) Act 1886. …
Read More UK: Court Considers Meaning of “Damages”