Coverage & Claims

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In The Commissioners for Her Majesty’s Revenue & Customs v Weald Leasing Ltd [2008] EWHC 30 (Ch), the High Court dismissed an appeal by the Commissioners against a ruling by a VAT and duties tribunal that a scheme deferring irrecoverable VAT using artificial leases was not contrary to the purpose of the Value Added Tax Act 1994 (or Directive 77/388 which the Act implemented) and therefore not abusive. Weald Leasing Ltd was a member of the Churchill group of companies carrying on insurance business but was not a member of their VAT group. …
Read More A Scheme Deferring Irrecoverable Value Added Tax by the Churchill Group of Companies is Upheld by the English High Court

In Hartford Accident and Indemnity Co, et al. v. Ace American Reinsurance Co., et al., No. 17625 (Sup. Ct. Conn. Dec. 25, 2007), the Connecticut Supreme Court found a “common cause” provision in a reinsurance treaty to be ambiguous for purposes of whether multiple asbestos claims could be aggregated as a single occurrence, reversing the lower court’s decision granting summary judgment to the defendant reinsurers. …
Read More Connecticut Supreme Court Rules that “Common Cause” Provision of Reinsurance Treaty Is Ambiguous With Respect to the Aggregation of Claims

In the wake of the wildfires that devastated Southern California in October of last year, more than 22,000 insurance claims were filed, according to the Insurance Information Network of California.  While the bulk of those claims may be for additional living expenses due to the mass evacuation of San Diego County, at least 1,500 homes were destroyed by the fires. 

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Read More California Wildfire Decisions May Provide a Guide for Future Disputes

The English and Scottish Law Commissions are currently engaged in a wide ranging review of insurance contract law. Since September 2006 they have published a series of Issues Papers and one formal Consultation Paper setting out their proposals for reform to the law of misrepresentation, non-disclosure, warranties and agency in the context of pre-contract information. …
Read More The English and Scottish Law Commissions Have Published Their Latest Paper on Insurance Contract Law Reform

While there have been several pre-trial rulings from Louisiana federal courts on Katrina-related insurance coverage issues, the first such trial in Louisiana federal court took place recently.  On November 7, 2007, a jury in the Eastern District of Louisiana awarded $365,000 to Michael and Judy Kodrin from their homeowners’ insurer, State Farm Fire Insurance Company. 

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Read More Louisiana Federal Court Orders State Farm to Pay Its Insureds’ Legal Fees in Bad Faith Katrina-Related Coverage Litigation

The Ohio state Court of Appeals recently determined that where portions of insurance policies at the center of a dispute were missing, the lower court’s consideration of extrinsic evidence in determining the meaning behind ambiguous policy wording was proper. 

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Read More Ohio Court of Appeals: Consideration of Extrinsic Evidence is Proper in Determining Meaning of Policy Wording As to Aggregate Limits Where Portions of the Policy at Issue are Missing

In Shenandoah Chiropractic, P.A. v. National Specialty Ins. Co., 2007 WL 4276531 (S.D. Fla. Dec. 3, 2007), the United States District Court for the Southern District of Florida recently dismissed a class action complaint, seeking declaratory relief and alleging breach of contract in relation to a claim for Personal Injury Protection  (“PIP”) benefits. 

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Read More Federal District Court Dismisses PIP Class Action Suit

A Massachusetts trial court recently ordered a defendant insurer to produce reinsurance agreements during discovery in a coverage dispute.  Neles-Jamesbury, Inc. v. Liberty Mutual Ins. Co., C.A. No. 02-0982A (October 11, 2007). …
Read More Massachusetts Court Orders Discovery of Reinsurance Agreements