Goldberg Segalla, Author at The Insurance & Reinsurance Report

March 24, 2010 Bad Faith and Extra-Contractual Liability

Policyholder Found By Jury To Have Committed Insurance Fraud Required To Pay Treble Damages

Liberty Mutual Ins. Co. v. Land

App. Div. NJ, January 14, 2010

In this declaratory judgment action, the plaintiff insurer filed a declaratory judgment action against the defendant policyholders alleging that the policyholders committed fraud to inflate the property loss incurred to their home when a tree fell and hit the roof. The insurer sought treble damages for the cost of investigation, various fees and costs, and counsel fees under the New Jersey Insurance Fraud Prevention Act (“IFPA”) and also sought a ruling …

March 23, 2010 Uncategorized

Supreme Court of Pennsylvania to Hear Important Attorney-Client Privilege Case

The Supreme Court of Pennsylvania has agreed to hear a case of vital important to insurers and defense counsel, and their ability to defend claims against insureds. On March 16, 2010, the Supreme Court of Pennsylvania allowed the appeal of Gillard v. AIG Insurance, 947 A2d 836 (2008). In the trial court decision, 2007 Phila. Ct. Com. Pl. LEXIS 159, which was affirmed by the Superior Court without opinion, it was held that communications from defense counsel to the client’s claims representatives were not privileged.…

March 22, 2010 Uncategorized

Discretionary Authority not Granted Despite SPD Language

Jobe v. Medical Life Insurance Company (8th Cir., March 19, 2010)

The issue before the circuit court was whether discretionary language included in the summary plan description ("SPD"), but not in the actual policy, prevailed. Plaintiff argued because the plan itself did not vest the plan administrator with discretionary authority, the district court erred is reviewing the benefit determination under an abuse of discretion standard. The insurer argued that language in the SPD prevails as previously stated by the Eight Circuit. In that prior …

March 18, 2010 CaseWatch

March 18, 2010 Edition of CaseWatch Insurance is Now Available

For a free copy, click here.

To receive Insurance: CaseWatch directly via email, please contact Sarah Delaney at [email protected] …

March 18, 2010 Uncategorized

Fifth Circuit Decides Expedited Appeal – Affirms Duty to Defend Stanford Defendants

Pendergest-Holt v. Certain Underwriters at Lloyd’s London

(5^th Cir. Mar. 15, 2010)

It has been widely reported that about a year ago the SEC sued three companies founded by R. Allen Stanford, and three individual defendants, alleging that Stanford and his cohorts had engaged in a Ponzi scheme through the sale of sham certificates of deposit evidencing billions of dollars of investments. The government subsequently brought a parallel criminal action against the same executives and James Davis, a former executive.

On August …

March 18, 2010 CaseWatch

Cases for CaseWatch: Insurance March 18, 2010

Cases provided with the permission of Lexis.

Download Abdelhamid v. Fire Ins. Exchange

Download Alea London Ltd. v. Woodlake Mgt.

Download Allstate Ins. Co. v. Liberty Surplus Ins. Corp.

Download Arbella Mut. Ins. Co. v. Commissioner of Ins.

Download Architex Assoc. Inc. v. Scottsdale Ins. Co.

Download Axis Surplus Ins. Co. v. Lebanon Hardboard, LLC

Download Bumgarner v. Burlington Ins. Co.

Download Colony Insurance Co. v. Jones

Download Fortney & Weygandt, Inc. v. American Mfrs. Mut. Ins. Co. …

March 17, 2010 Environmental

Insurer Not Liable for Damages from Coal Dust Pollution

Grizzly Processing LLC v. Wausau Underwriters Ins. Co.

(E.D. Ky. March 11, 2010)

Grizzly Processing LLC (“Grizzly”) was sued in state court by ninety plaintiffs alleging the company contaminated their homes with coal dust and other pollutants in Floyd County, Kentucky. Plaintiffs also alleged damages from plant noise, including blast operations, violations of certain environmental regulations, and violations of the Kentucky Surface Mining Act. Plaintiffs claim seek compensatory damages including diminution in the value of their residences, costs of repair, medical expenses, …

March 16, 2010 Directors and Officers

Florida Court Of Appeals Affirms Dismissal Of Complaint Against Insurer For Denial Of Professional Liability Claim, Despite Default By Insurer.

Appel et. al. v. Lexington Ins. Co.

(Florida Court of Appeals, February 26, 2010)

Appellants challenged the dismissal of their complaint and summary judgment in favor of insurer where the trial court held that the complaint failed to state a case of action even after the insurer defaulted. The appellants, a group of creditors, fell victim to a Ponzi scheme when they invested in a company known as SOS Industries. The creditors filed suit against SOS and its two directors for breaching …

March 15, 2010 Professional Liability Monthly

Professional Liability Monthly, March Edition, is Now Available

For a free copy click here

To receive the Professional Liability Monthly directly via email, please contact Brian Biggie at [email protected]

Author: Goldberg Segalla