Author: Goldberg Segalla

Life, Health, Disability & ERISA

Disability Benefits Administrator Did Not Abuse Discretion By Affirming Denial Of Short-term Benefits Prior To Receipt Of Additional Data Requested From The Claimant’s Treating Physician

Medina v. Metro. Life Ins. Co

(1st. Cir. (P.R.) November 24, 2009)

 

The claimant's short-term disability benefits were terminated, and upon the claimant's appeal, sent out for independent review.  After the reviewing physician's report was received, the administrator provided the report to the claimant's treating physician, and requested additional information.  The claimant was on notice that such information was requested.  The treating physician never responded.  The administrator, based upon the independent evaluation, re-affirmed its denial of disability benefits.  The claimant sued, asserting that the administrator …

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Excess Insurance

New Causes of Action Asserted Against Excess Insurance Carrier for Underlying Asbestos Claims

LSG Technologies, Inc. v. US Fire Ins. Co.

(E.D.Texas, November 25, 2009)

 

 

Over two years after initially filing a complaint in the Eastern District of Texas, plaintiff, LGS Technologies Inc., amended its complaint against an excess insurance carrier seeking a declaration of coverage with respect to several underlying asbestos and mixed dust cases.   Plaintiff argues that one or more of its primary policies have been exhausted, triggering the commercial excess policies issued by U.S. Fire Insurance Co.  Specifically, plaintiff references seven policies, with …

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Arbitration

Seventh Circuit Dismisses Appeal Regarding Arbitration for Lack of Jurisdiction

Sherwood v. Marquette Transp. Co., LLC

(7th Cir. (Ill.) Nov. 23, 2009)

 

The Seventh Circuit recently dismissed an employer’s appeal to overturn a district court’s decision refusing to stay an employee’s pending litigation in favor of arbitration. Bluegrass Marine, whose vessels ply the Mississippi River, was sued by an employee injured while working as a deckhand. Bluegrass asked the district court to stay the suit, arguing that the employment contract between the parties required that all disputes be arbitrated under the Illinois Arbitration …

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Reinsurance

Service of Suit Clause in Reinsurance Contract With Foreign Reinsurer Operates as a Waiver of the Reinsurer’s Right to Remove a Lawsuit to Federal Court

Dinallo v. Dunav Ins. Co.

(U.S. Dist. S.D.N.Y. November 19, 2009)

 

The Superintendant of Insurance of the State of New York, in his capacity as the liquidator of the insolvent Midland Insurance Company, filed suit against a Serbian reinsurance company.  The Superintendant alleges that, between November 1978 and October 1980, Midland and the defendant entered into four separate reinsurance treaties pertaining to certain insurance policies written by Midland.  Midland incurred various losses from claims on these policies that the Superintendant alleges were …

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Reinsurance

Arbitration Award Confirmed in Reinsurance Dispute

Ario v. Cologne Reinsurance (Barbados), Ltd.

(M.D. Pa. November 13, 2009)

  

This action was initiated by the Liquidator of American Integrity Insurance Company to recover on a reinsurance agreement American Integrity had with defendant, Cologne Reinsurance (Barbados), Ltd.  The court confirmed the arbitration award, and denied plaintiff’s motion to vacate, rejecting plaintiff’s claims that the arbitrators manifestly disregarded the law or that their partiality was evident.

The court noted that manifest disregard of the law occurs when (1) the arbitrators knew of …

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Uncategorized

CaseWatch: Insurance Cases for November 24, 2009 Issue

Allstate Life Ins. Co. v. Dall 

American Modern Home Ins. Co. v. Corra

Association of Unit Owners of Nestani v. State Farm Fire and Casualty Co. 

Bankers Ins. Co. v. Prezzy 

Bradshaw v. Chandler 

Cal Dive International v. Seabright Ins. Co. 

Century Surety Co. v. Master Design Drywall, Inc. 

Chrysler Ins. Co. v. Greenspoint Dodge of Houston, Inc.

Clinch v. Generali-U.S. Branch 

Employers Reinsurance Corp. v. The Thomson Corp. 

Erie Ins. Co. v. JMM Properties, LLC …

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Policy Conditions, Considerations, Construction, and Formation

Georgia Court of Appeals Affirms Summary Judgment on Coverage And Assesses Additional Penalties Against Insurer For Frivolous Appeal

Transportation Ins. Co. v. Piedmont Const. Grp., LLC.

(Georgia Court of Appeals, Fourth Division, November 13, 2009)

 

In a strongly worded opinion, the Court of Appeals affirmed the trial court decision and assessed frivolous appeal penalties where insurer denied not only coverage but a defense under liability policy issued to a general contractor based upon a “novel and radical interpretation of a single Georgia case.”  The court further noted that “this egregious conduct warrants not only affirmance but the imposition of penalties for …

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