Policy Conditions, Considerations, Construction, and Formation Archives - Page 9 of 14

June 3, 2013 Policy Conditions, Considerations, Construction, and Formation

Insurers’ Goal Line Stand: California Coverage Action Stayed While New York Case Marches On

National Football League v. Fireman’s Fund Ins. Co.
(Cal. App. Ct. May 28, 2013)
A California appellate court recently affirmed a stay of California litigation commenced by the NFL against multiple insurers seeking coverage for traumatic brain injury cases. The court held that the NFL was not a California resident for purposes of a forum non conveniens analysis even though it has three teams in California.

The NFL administration and its intellectual property marketing arm were sued in multiple states by dozens of former players …

May 24, 2013 Policy Conditions, Considerations, Construction, and Formation

Second Circuit Confirms Standard That Insurer Not Obligated To Defend And Indemnify In $96 Million Defamation Claim

First Advantage Litigation Consulting LLC v. American International Specialty Lines Insurance Co. et al.,
U.S. Court of Appeals for the Second Circuit

First Advantage Litigation Consulting LLC, (First Advantage) brought a declaratory judgment action against its insurers, American International Specialty Lines Insurance Co., Federal Insurance Co. and Zurich American Insurance Co. (collectively, insurers), seeking defense and indemnification in connection with a defamation action commenced by NuWave Investment Corp (NuWave). In 2006, NuWave sued First Advantage for $96 million in claimed damages stemming from allegedly defamatory …

May 21, 2013 Policy Conditions, Considerations, Construction, and Formation

Court Finds that Ownership is indeed 9/10th of the Law in Rescission Case

PHL Variable Ins. Co. v. P. Bowie 2008 Irrevocable Trust
(1^st Cir. (R.I.) May 13, 2013)
The First Circuit recently held that an insurer may retain life insurance premiums following a policy rescission to offset the loss it has suffered. The ruling is notable because courts typically require an insurer to refund an insured’s policy premium where a rescission is effected.

In PHL, an insurance broker submitted an application for life insurance for Peter Bowie. Bowie’s application represented that he was a self-employed …

May 14, 2013 Policy Conditions, Considerations, Construction, and Formation

New York First Department’s Message to Insureds: An Equitable Defense Concerning A Policy Exclusion Cannot Be Decided By Motion Practice

206-208 Main St. Assocs. d/b/a/ Sutphin Blvd., LLC v. Arch Ins. Co.
(N.Y. App. Ct., 1^st Dept. May 2, 2013)
A New York appellate court recently held that the issue of whether an insurer was equitably estopped from raising an earth movement exclusion as a defense to coverage two years after it had assumed the purported additional insured’s defense was an issue for the trier of fact.

The plaintiff, 206-208 Main Street Associates, Inc. d/b/a 8930 Sutphin Blvd., LLC hired defendant H & H …

May 13, 2013 Policy Conditions, Considerations, Construction, and Formation

Alabama’s Highest Court Settles Ambiguity and Declares Faulty Work is not an Occurrence

Shane Traylor Cabinetmaker, LLC and Michael Shane Traylor v. American Resources Insurance Company, Inc. (Ala.)

The highest court in Alabama confirmed and clarified current law addressing whether there could be an occurrence due to faulty work in and of itself, where there was no damage to any surrounding property. In this case, the insured was hired to perform cabinetry and woodworking work for a homebuilder. The insured sued the homebuilder and was later countersued for breach of contract, negligence, and mental-anguish, among other things. This …

May 10, 2013 Policy Conditions, Considerations, Construction, and Formation

Chartis Not Responsible For Losses on $103 Million Loan

CT Investment Management Co. LLC v. Chartis Specialty Insurance Co.
New York State Supreme Court, New York County

CT Investment Management Co. LLC (CT) brought action in New York State Supreme Court, New York County against Chartis Specialty Insurance Co. (Chartis), claiming that Chartis failed to meet its obligations under a political risk policy for damages suffered by CT.

The lawsuit pertains to a $103 million loan made by LaSalle Bank NA to various Mexican hotel operators. In conjunction with the loan, LaSalle purchased a …

April 29, 2013 Policy Conditions, Considerations, Construction, and Formation

Federal Court Maintains No Property Damage, No Occurrence Stance for Intentional Breach of Contract

NWS Corp. v. Hartford Fire Ins. Co. (D. Mass.) (12-30113-KPN)
The U.S. District Court for Massachusetts relied on long-standing state law to deny coverage for an insured television programmer who was sued by DirectTV for setting prices below those set forth in its contract with DirectTV, and fraudulently concealing its conduct with numerous material misrepresentations. In the underlying matter, the arbitrator awarded DirectTV $5 million, finding that the insured “materially breached its contract,” “made intentional, deliberate misrepresentations” and “was also liable for … conversion.” A …

April 15, 2013 Policy Conditions, Considerations, Construction, and Formation

Re-Evaluating “Occurrence” in the Construction Defect Realm

K&L Homes, Inc. v. American Family Mutual Ins. Co., 2013 ND 57 (N.D. 2013) (Index No. 20120060)

The highest court in North Dakota re-evaluated a lower court’s decision concerning a construction defect matter, deciding in favor of the insured. In this matter, the plaintiff, a homebuilder, sought coverage for a judgment entered against them for over $250,000. The damages related to a defective home that the underlying plaintiff purchased from the plaintiff. The underlying plaintiff sued for breach of contract and breach of implied warranties. …

April 10, 2013 Policy Conditions, Considerations, Construction, and Formation

Indiana Appeals Court Finds Ambiguity in Umbrella Policy, Results in $2 Million in Coverage

Gary Hammerstone et al. v. Indiana Insurance Co., (06A04-1211-PL-595 Court of Appeals of Indiana)
In 2009, plaintiff Gary Hammerstone injured his right hand and arm while trying to clear a clog in a Trac-Vac lawn and leaf vacuum he purchased in 2004. Mr. Hammerstone brought a lawsuit against the vacuum’s manufacturer, Palmor Products Inc. (Palmor), and Palmor’s distributors Northampton Farm Bureau Cooperative Association, and Canns-Bilco Distribution Inc. claiming that they negligently designed, manufactured, marketed, and distributed the vacuum.

Palmor provided notice of the underlying …

March 27, 2013 Policy Conditions, Considerations, Construction, and Formation

Illinois Court Protects Insurers from Unripe Coverage Disputes

Byer Clinic & Chiropractic, Ltd. v. State Farm Fire & Cas. Co.
(Illinois Appellate Court Mar. 12, 2013)

An Illinois Appellate Court recently held that an insurer’s defense obligation is not ripe for adjudication if that insurer is defending its insured in an underlying court action, even if subject to a reservation of rights.

The plaintiff filed a class-action complaint against the insured, Kapraun, P.C., and Dr. Michael Kapraun, alleging a violation of the Telephone Consumer Protection Act of 1991 (TCPA). Thereafter, the plaintiff filed …