Author: Thomas F. Segalla

Uncategorized

Ninth Circuit Bad Faith Ruling is Bad News for Insurers

Du v. Allstate Ins. Co.
(9th Cir. (Cal.) June 11, 2012)
The Ninth Circuit ruled last week that an insurer’s covenant of good faith and fair dealing requires an insurer to effectuate settlement when liability is reasonably clear, even in the absence of a settlement demand.

The action arose when Joon Hak Kim’s vehicle collided with another vehicle, injuring all four passengers in the second vehicle, including Yan Fang Du. Kim was insured by Deerbrook Insurance Company, a subsidiary of Allstate Insurance Company, with …

Continue Reading
Uncategorized

Triable Issues Of Fact Existed Regarding Policyholder’s Detrimental Reliance On Certificate Of Flood Insurance

Witkowski v. Richard W. Endlar Ins. Agency, Inc.
(Massachusetts Court of Appeals, May 29, 2012)

In this coverage dispute, the policyholder appealed an adverse summary judgment ruling dismissing its claims arising from a flood of the Shawsheen River that destroyed multiple basement residential condominium units. After the flood, a trustee of the condominium association told the four basement unit owners that their units were excluded from coverage under the association’s master policy.  Also, applicable building codes prohibited units at basement level in a special flood …

Continue Reading
CaseWatch

CaseWatch: Insurance – Cases from the February 24, 2010 Edition

Cases provided courtesy of Lexis

Download American Home Assurance Co. v. Pope 

Download Associated Ins. Serv., Inc. v. Garcia 

Download Auto-Owners Ins. Co. v. Ferwerda Enters., Inc. 

Download Bilezikjian v. Unum Life Ins. Co. of America 

Download Burns v. Smith 

Download Butterfly-Biles v. State Farm Life Ins. Co. 

Download C's Discount Pharmacy, Inc. v. Pacific Ins. Co., LTD 

Download Currier v. Penn Ohio Logistics 

Download Farm Bureau Mut. Ins. Co. of Ak., Inc. v. Gadbury-Swift 

Download …

Continue Reading
Arbitration

Second Circuit Affirms Enforceability Of Arbitration Agreement In Employment Discrimination Case

Ragone v. Atlantic Video, ESPN et. al.

(United States Court of Appeal, Second Circuit, February 17, 2010)

 

Plaintiff-appellant appealed from an order of the district court which granted the motions of Atlantic Video and ESPN dismissing the complaint and compelling arbitration in a Title VII employment discrimination and sexual harassment action.  In affirming the trial court decision, the court of appeals upheld the enforceability of the arbitration agreement against claims that it is was both procedurally and substantively unconscionable. The court also properly …

Continue Reading
Arbitration

Court Awards Attorneys’ Fees Arising from Enforcement of Arbitration Award

Gentle Wace Shipping S.A. v. Transfield Shipping Inc.

(S.D.N.Y. Feb. 16, 2010)

 

A federal judge has awarded attorneys’ fees to a party attempting to enforce a previously-determined arbitration award. In Gentle Wave, a panel of two members of the London Maritime Arbitrators Association issued an arbitration award in favor of petitioner Gentle Wave and against respondent Transfield. Transfield failed to pay the award, forcing Gentle Wave to commence an action to confirm the award, enter judgment, and award attorneys’ fees.

 

The court …

Continue Reading
Reinsurance

DISTRICT COURT ORDERS ARBITRATION OF REINSURANCE DISPUTE

Trustmark Ins. Co. v. Clarendon National Ins. Co. et al.

(N.D. Ill. February 1, 2010)

 

Defendants reinsured plaintiff under a Variable Quota Share Treaty (“VQST”) effective on June 1, 1997 and renewed effective June 1, 1998.  Defendants also reinsured plaintiff under excess-of-loss agreements.

 

The 1998 VQST and the excess-of-loss agreement were the basis of a dispute between the parties that culminated in both parties demanding arbitration.  The parties arbitrated the excess-of-loss agreement first, which arbitration was governed by a confidentiality agreement.…

Continue Reading
Uncategorized

CaseWatch: Insurance – Cases for the February 18, 2010 Edition

Download Bramer v. Utica Mutual Ins. Co. 

Download Countryway Ins. Co. v. Slaugenhoup 

Download Douglas Ridge Rifle Club v. St. Paul Fire & Marine Ins. Co. 

Download Essex Ins. Co. v. Tri-Area Amusement Co. 

Download Forecast Homes, Inc. v. Steadfast Ins. Co. 

Download Martin v. Great Lakes Reinsurance (UK), P.L.C. 

Download Mastec, Inc. v. United States Fire Ins. Co. 

Download McHenry v. PacificSource Health Plans 

Download National Union Fire Ins. Co. of Pittsburgh, Pa. v. Nvidia Corp.…

Continue Reading
Reinsurance

Service of Suit Provision Operates to Waive Serbian Reinsurer’s Removal Rights Despite Lack of Sophistication in U.S. Reinsurance Market

Dinallo v. Dunav Insurance Co.

(S.D.N.Y. February 1, 2010)

 

In a motion for reconsideration in the federal district court for the Southern District of New York, a Serbian reinsurance company sought reversal of an order remanding a suit to New York State supreme court.  The suit was brought by the New York Superintendant of Insurance in his capacity as Liquidator of Midland Insurance Company.  Between 1978 and 1980, Midland entered into four separate reinsurance contracts with the Serbian reinsurer.  Each of …

Continue Reading