Kmart Corporation v. Footstar, Inc.

U.S. App. LEXIS 1775 (7th Cir. February 4, 2015)

Insurer’s Duty to Indemnify Limited to Insured’s Agreed Upon “Work” and Did Not Apply to Liability Arising from Actions of the Insured Outside Scope of “Work” and In Breach of the Agreement

In Kmart Corporation v. Footstar, Inc., Nos. 14-1242, 14-1356, 14-1359, 2015 U.S. App. LEXIS 1775 (7th Cir. Feb. 4, 2015), the Seventh Circuit reversed the district court’s finding that Footstar, Inc. (“Footstar”) and its insurer Liberty Mutual Fire Insurance (“Liberty Mutual”) had a …

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Illinois Federal District Court Refuses To Consider Extrinsic Evidence In Evaluating Insurer’s Duty To Defend

In American Alternative Insurance Corp. v. Metro Paramedic Services, 2014 U.S. Dist. LEXIS 171841 (N.D. Ill. Dec. 12, 2014), the United States District Court for the Northern District of Illinois held that American Alternative Insurance Corporation (“AAIC”) had a duty to defend Metro Paramedic Services, Inc. (“Metro”).  The claimants had filed suit against Metro and Antioch Rescue Squad (“ARS”) alleging sexual harassment and discrimination, negligent supervision and retention, assault and battery, and retaliation, while serving as joint employees of ARS and Metro.

Metro contended …

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GAO and MITRE Sponsor Discussion on Information Sharing During a Crisis

During a crisis, good information is critical to ensure a proper and prompt response. One big challenge is how to ensure good information sharing both between different levels of government and even between agencies at the same level of government. 

On January 26, 2015, the Government Accountability Office (GAO) and The MITRE Corporation (a not-for-profit organization that operates several federally funded research and development centers) will sponsor a discussion on how governmental entities share data in the event of a crisis and subsequent recovery.   Specifically,

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Independent Contractors Fall within Employment-Related Practices Exclusions Says First Circuit

In Ruksznis v. Argonaut Insurance Co., 2014 U.S. App. LEXIS 23881 (1st Cir. Dec. 18, 2014), the First Circuit affirmed the district court’s grant of summary judgment in favor of Argonaut Insurance Company (Argonaut), finding that the employment-related practices exclusion in the subject Commercial General Liability Policy and Public Officials Liability Policy barred coverage.

The underlying dispute arose out of a lawsuit filed by Frank Ruksznis, the former plumbing inspector for the Town of Sangerville (the Town), against Lance Burgess, a Town Selectman.  Burgess, …

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Wisconsin Court Will Not Enforce Intentional Acts Exclusion For Intellectual Property Infringement Claim

In Boehm v. Zimprich, 2014 U.S. Dist. LEXIS 174330 (W.D. Wis. Dec. 17, 2014), the United States District Court for the Western District of Wisconsin held that American Family Mutual Insurance Company (“American Family”) had a duty to defend its insureds against a copyright infringement claim.  The plaintiffs filed suit against Dan and Ciara Zimprich, owners of sports memorabilia vendor “On 2 the Field”, alleging they made and sold prints and photo canvases of approximately two dozen of plaintiffs’ photographs without authorization.  The Zimpriches …

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Florida Court Refuses To Enforce Employment Related Practices Exclusion Against Defamation Claim Under Coverage B

In Khatib v. Old Dominion Insurance Co., 2014 Fla. App. LEXIS 19843 (Fla. DCA 1st Dist. Dec. 5, 2014), the Florida Court of Appeal held that Old Dominion Insurance Company (Old Dominion) did not have a duty to defend its insureds against a defamation claim.  As background, the insureds, directors and officers First Coast Cardiovascular Institute (FCCI), filed suit against Dr. Majdi Aschi for fraud, negligently supplying false information, breach of contract, reformation, unjust enrichment, breach of fiduciary duty, and conspiracy.  Dr. Aschi denied …

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Judge Throws Out Yacht Club’s Hurricane Sandy Suit: Insurer Must Be Allowed to Inspect “Damaged” Property

A District of New Jersey Federal Judge dismissed a yacht club’s case with prejudice and ordered the yacht club to show cause for why its counsel should not be sanctioned for filing a baseless claim after the yacht club refused to let the insurer inspect its property after making a claim.

The Judge stated that the yacht club refused to let the insurer inspect its property, yet claimed $540,000 worth of wind damage to its buildings from Superstorm Sandy. After the initial claim was made, …

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Cases for the January 2014 Editions of CaseWatch: Insurance and Bad Faith Focus

The below cases correspond with the January edition of CaseWatch: Insurance and the analysis of each case.

Click here for access to the newsletter. Cases are provided courtesy of LexisNexis.

Casewatch: Insurance 

120 Greenwich Development Associates v. Admiral Indemnity Company and TIG Insurance Company

Amerisure Ins. Co. v. Orange & Blue Constr., Inc.

Am. Family Mut. Ins. Co. v. Lobrow

Camico Mut. Ins. Co. v. Rogozinski

Cardenas v. United of Omaha Life Ins. Co.

Countrywide Home Loans, Inc. v. United Gen. Tit. Ins. Co.

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