Category: Policy Conditions, Considerations, Construction, and Formation

A lengthy rainstorm caused damage to three water basins designed to manage stormwater flow from buildings and parking lots near a shopping center. The increased flow of stormwater into the ground caused substantial sinkholes to form in two of the three basins. The insured repaired and filled the sinkholes but state officials issued an ordinance, requiring a redesign of the basins to prevent future sinkhole damage. The insured sought coverage for all damage arising out of the sinkholes. The insurer disclaimed coverage.

A New …

An Illinois appellate court recently held that insurance coverage for wrongful eviction claims, typically part of “personal and advertising injury” provided by Coverage B in CGL policies, includes coverage for property damage as a result of the eviction, not just physical harm to a person.

The insured property owners leased commercial space to a tenant who worked as an architect, painter, and sculptor. The tenant used the space as a rent storage and work space. During the lease term, the owners sold the space and, …

The issue involved in this case was the duty of an insurer to settle a third party claim within the policy limits when liability was clear and there was a substantial likelihood of a recovery in excess of the policy limits. Specifically, the question decided was whether an insurer must initiate settlement negotiations or offer its policy limits where the third party claimant has not made a demand or settlement offer. The trial court found that the insurer was not liable to the insured for …

Amerisure Ins. Co. v. Old Republic Ins. Co.,
M.D. Fla. Sept. 27, 2013 (2013 U.S. Dist. LEXIS 139251)

This declaratory judgment action arises from an underlying auto and tractor-trailer accident. At the time of the accident, the tractor was owned by Ryder Truck Rental, and the trailer was owned by an affiliate of Star Transportation Company and Star Distribution Systems, Inc. (collectively Star). The tractor was leased to Star pursuant to a Truck Lease and Service Agreement (TLSA). Ryder was insured under a business auto …

Canal Ins. Co. v. Great W. Cas. Co.,
2013 U.S. Dist. LEXIS 133344, 1-2
(D. Minn. Sept. 18, 2013)

In this is a declaratory judgment action, the plaintiff Canal Insurance Company  (Canal) sought insurance coverage from the defendant, Great West Casualty Company (Great West), relating to an underlying trucking accident. In its complaint Canal admitted that the Canal policy provides coverage, but alleges that such coverage is excess to the primary coverage provided by the Great West policy. Great West moved for summary judgment, arguing …

General Refractories Co. v. First State Ins. Co.,
September 6, 2013

The plaintiff, General Refractories Company (GRC), sued multiple defendant insurance carriers for a declaration of excess insurance coverage for underlying claims. Five of the defendant insurance carriers settled with GRC (settled carriers) but seven litigants remain (litigating defendants). Plaintiff GRC and the defendant settled carriers move for dismissal with prejudice of all claims asserted against the settled carriers.

As the defendant insurance carriers would be jointly and severally liable for the loss claimed by …

New London County Mut. Ins. Co. v. Zachem
145 Conn. App. 160 (Conn. App. Ct. 2013)

The plaintiff insurance company sought a declaratory judgment to determine whether it had a duty to provide coverage under an insurance policy issued to the defendants for a claimed loss arising from an explosion and fire that destroyed a house they owned on September 8, 2008. No one had resided at the house since July, 2007, and an intruder broke into the house and removed a copper propane gas …