Category: Policy Conditions, Considerations, Construction, and Formation

Standard Life Assurance Ltd v ACE European Group [2012] EWCA Civ 1713

This case concerns whether the insured was entitled to recover, without apportionment, the full amount of its first party claim (as opposed to a third party claim), which it paid under a “mitigation costs” clause in a professional liability policy covering the insured against third party claims arising out of the provision of financial services.

The insured, Standard Life Assurance Ltd (SLAL), launched a fund in 1996 which was described as being equivalent …

The Commonwealth of Massachusetts, House Docket, No. 2678, A Reduce Act to Gun Violence and to Protect the Citizens of the Commonwealth.

In an effort to curb gun violence in reaction to the Sandy Hook shootings, a Massachusetts state representative proposed a bill which would require all gun owners to maintain liability insurance. The bill was proposed on Friday, January 18, 2013, by Democratic state representative David Linsky. It would require that anyone in possession of a firearm, rifle or shotgun be able to …

Genesis Housing Association limited v. Liberty Syndicate Management Limited [2012] EWHC 3105 (TCC)

This recent decision looks at a type of clause in an insurance contract called a “basis of contract” clause found in some contracts of insurance or proposal forms and which will soon be unavailable to insurers in the UK.   The effect of this clause is to convert any comments made by the insured or the person seeking insurance into warranties.  A breach of a warranty will release insurers from liability.…

On December 31, 2012, New Jersey District Court Judge Noel L. Hillman granted in part and denied in part defendant PHH Mortgage Corporation’s (PHH) motion to dismiss the class action suit brought against it, which challenged the practice of a PHH subsidiary of  purchasing force-placed hazard insurance from a provider in arrangements where PHH benefits financially. Specifically, Judge Hillman dismissed the plaintiffs’ unjust enrichment claim, but left intact some breach of contract and consumer fraud claims.

Judge Hillman concluded that the unjust enrichment claim is …

Hobby Lobby Stores, Inc., v. Sebelius
United States Court of Appeals for the Tenth Circuit (December 20, 2012)

Ment Bros. Iron Works Co. v. Interstate Fire & Casualty Co.
(2012 U.S. App. LEXIS 25310 (2d Cir. N.Y. Dec. 11, 2012)

In this declaratory judgment action, The Second Circuit Court of Appeals found that Interstate Fire & Casualty Co. owed its insured, Ment Bros. Iron Works Co., a defense in a New York state court action stemming from property damage allegedly caused by Ment during the construction of a building located at 40 Mercer St., in New York City.

The developer, WXIV/Broadway Grand Realty …

On October 22, 2012, The State of Washington Office of the Insurance Commissioner (OIC) fined BCS Insurance Company for issuing policy forms that were not filed with and approved by the OIC.  BCS insurance had only two travel insurance policy forms filed and approved by the Washington OIC. Between 2007 and 2009, BCS issued over 500,000 travel insurance policies on up to 72 different forms, that deviated from the two filed and approved forms.  The forms omitted language, changed the order of contract sections and …

Westfield Ins. Co. v. Custom Agri Sys., Inc.
(Ohio Oct. 16, 2012)

The Ohio Supreme Court finally addressed whether faulty workmanship constitutes an “occurrence” that triggers coverage under a CGL policy, and decided that it does not.

Younglove Construction entered into a contract with PSD Developments, wherein it agreed to construct a feed-manufacturing plant in Sandusky, Ohio. Younglove filed suit in federal court against PSD after PSD withheld payment. In its answer, PSD alleged that it sustained damages as a result of defects in a …

Great Am. Ins. Co. v. Christy 
(N.H. Sept. 28, 2012)
An attorney in a two-partner law firm confessed to forging documents to misappropriate money from a client’s estate. The attorney entered into a settlement agreement with the estate in April 2007, setting forth a payment plan for the attorney to satisfy his obligations to the estate. A month later, the second partner at the law firm executed a renewal application for professional liability coverage on behalf of the law firm. Question 6(a) on the renewal …