Category: Emerging Issues

Rose Acre Farms, Inc. v. Columbia Cas. Co. (7^th Cir. (Ind.) Nov. 1, 2011)

The Seventh Circuit ruled last week that an insured was not entitled to defense or indemnity from its liability insurers in several class action lawsuits claiming that the insured conspired to fix the price of eggs.

The insured, the nation’s second largest egg producer, was charged in a number of class action suits with violations of the Sherman Act. The underlying complaints alleged that as a member of United Egg …

State of Florida, et al. v.  United States Department of Health and Human Services (11^th Cir. August 12, 2011)

In a 304-page decision, the Eleventh Circuit Court of Appeals has held that the 2010 law requiring all Americans to purchase health insurance, strongly favored by President Obama, was unconstitutional.

The plaintiffs consisted of 26 states, two private individuals and the National Federal of Independent Businesses (NFIB).  The defendants consisted of the HHS, the Departments of Labor and Treasury.  The plaintiffs challenged the constitutionality of …

Rebecca Meek-Horton v. Trover Solutions Inc. et al (State of New York, Supreme Court, New York County, Case No. 108804-2011)

 A lawsuit naming 50 insurers as defendants has been filed in New York Supreme Court, New York County.  The complaint relates to Medicare Advantage plans and accuses the insurers of violating a 2009 state law by imposing liens on patients who receive personal injury settlements.  The law bars insurers from pursuing liens on settlements absent statutory authorization, and questions exist regarding whether Medicare …

Ulta Salon, Cosmetics & Fragrance, Inc. v. Travelers Prop. & Cas. Co. of Am.(Cal. Ct. App. July 11, 2011)

 A California appeals court recently held that an insurer was not obligated to defend or indemnify its insured against a claim that the insured violated Proposition 65, the California Safe Drinking Water and Toxic Enforcement Act of 1986. The court based its ruling on the complaint’s failure to allege “bodily injury” and rejected the notion that an insurer’s duty to defend can be triggered …

Abouzaid v. Mansard Garden Associates, LLC (N.J. June 21, 2011)

Under New Jersey law, a cause of action exists for negligent infliction of emotional distress based upon witnessing injury to a family member.  Based on Portee v. Jaffe, 84 N.J. 88 (1980), it was an action for the unique emotional distress suffered by a bystanders when loved ones are killed or injured.  The elements are:  (1) death or serious injury of another caused by the defendant’s negligence; (2) a marital or intimate relationship between the …

Mid-Continent Casualty Co. v. Eland Energy Inc. (N.D. Tex. June 16, 2011)

Mid-Continent Casualty Co. issued two insurance policies to several energy companies: a primary policy with a $1 million occurrence limit and $2 million aggregate, and an umbrella policy with a $5 million aggregate.  After Hurricane Katrina, crude oil leaked from the energy companies’ storage tanks at an oil and gas facility in Louisiana.  More oil that was put in a containment boom during cleanup leaked when Hurricane Rita hit.  Following the leaks, lawsuits …

At the time of Michael Jackson’s death on June 25, 2009 he was days away from beginning a slate of 30 concerts at the 02 Arena in London. In fact, the first show was scheduled for July 8, 2009.

AEG Live, LLC the company that contracted with Jackson to perform the show obtained a Contingency Non-Appearance and Cancellation policy from Lloyd’s providing coverage in the amount of $17,500,000. The policy listed AEG Live and the “Mark Jones Company, LLC” as insureds. It is alleged that …

State Automobile Ins. Co. v. Garzone Funeral Home Inc. E.D. Penn., May 27, 2011

Plaintiff insurer filed suit against defendant policyholder, seeking to avoid indemnity for a host of lawsuits over the harvesting and sale of body parts from bodies at the Philadelphia funeral home.  The underlying actions by the families of the deceased allege that defendants and others conspired to sell body parts of corpses. 

Plaintiff insurer files the current suit seeking an order declaring that it does not have a duty to defend …