Louisiana Generating LLC v. Illinois Union Ins. Co.
United States Court of Appeals for the Fifth Circuit, May 15, 2013
Louisiana Generating LLC (LAGen) sought defense coverage from Illinois Union Ins. Co. (Illinois) in a suit brought against it by the EPA and the Louisiana Department of Environmental Quality for Clean Air Act and state environmental law violations. LAGen owns a coal-fired electric steam generating plant known as the Big Cajun II in Louisiana. In 2009, NRG, LAGen’s parent company, purchased a custom Premises Pollution …
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Cases for Reinsurance Review – May 2013 Edition
Cases provided courtesy of LexisNexis
BEAZLEY UNDERWRITING LIMITED AND OTHERS V. AL AHLEIA INSURANCE COMPANY AND OTHER COMPANIES
MUNICH REINSURANCE AM., INC. V. AM. NAT’L INS. CO.
NEW HAMPSHIRE INS. CO. V. MAGELLAN REINSURANCE CO.
NEW JERSEY PHYSICIANS UNITED RECIPROCAL EXCHANGE V. ACE UNDERWRITING AGENCIES LTD.
OLYMPUS INSURANCE CO. V. AON BENFIELD, INC.
PINE TOP RECEIVABLES OF ILLINOIS, LLC V. BANCO DE SEGUROS DEL ESTADO
THE INSURANCE CO. OF THE STATE OF PENNSYLVANIA …
Continue ReadingCourt Rules Policyholder Arguments Do Not Hold Water
Grinnell Mut. Reinsurance Co. v. Hubbs
(Appellate Court ofIllinois, Third District, April 24, 2013)
This water resource/environmental coverage action arises from an underlying dispute involving the interference and damages from the divergence or obstruction of streams or surface water between landowners. Specifically, plaintiff insurer brought a declaratory judgment action against landowners who alleged damages to crop land caused by the policyholder’s alleged alteration of the flow and level of surface and groundwater following the policyholder’s construction of a holding pond on the property.
The insurer …
Continue ReadingBad News for Insurers: Groundless Claims Must Be Defended
Illinois Tool Works Inc. et al. v. Travelers Casualty & Surety Co. et al.,
Circuit Court of Cook County, Illinois
In this insurance coverage action from the Circuit Court of Illinois, the plaintiffs, Illinois Tool Works, Inc. and ITW Finishing LLC (ITW) brought action against their insurers Travelers Casualty & Surety Co., the Travelers Indemnity Co. of Connecticut and Century Indemnity Co., (defendants) for insurance coverage in thousands of underlying toxic tort claims allegedly arising from exposure to harmful chemicals contained in the plaintiffs’ …
Continue ReadingNo Prejudice, No Problem: Reinsurer Not Required to Show Prejudice in Late Notice Dispute
AIU Ins. Co. v. TIG Ins. Co. (S.D.N.Y. Mar. 25, 2013)
On March 25, Judge Sidney H. Stein, of the USDC for the Southern District of New York, agreed with a magistrate report and recommendation and granted summary judgment to a reinsurer, ruling that the reinsurer did not have to show prejudice when denying coverage because of an insurer’s late notice of a claim. Foster Wheeler, a company that used asbestos in its products, was insured by Liberty Mutual Insurance Co. AIU Insurance Co. issued …
Continue ReadingFlorida Widens Insurer’s Liability for Defense Costs
An intermediate appeals court in Florida held that an insurer’s decision to refuse separate independent counsel for an additional insured (AI) was wrong and awarded the AI indemnification for attorney’s fees and costs for independent counsel. In University of Miami v. Great American Assurance Company, etc., (No. 3D09-2010, Florida Third District Court of Appeal), the insured ran a summer swim camp on the AI’s campus. The claimant sued both entities for lack of supervision, claiming bodily injuries from being pulled unresponsive from the …
Continue ReadingArbitrator’s Interlocutory Ruling Not Ripe for Judicial Review
Klehr v. Illinois Farmers Ins. Co.
(Ill. Ct. App. Jan. 22, 2013)
In a matter of first impression in Illinois and nationally, an Illinois Appellate Court recently held that interlocutory rulings by arbitrators are not ripe for judicial review until the arbitration process is complete.
The plaintiff was injured in a hit-and-run accident. She filed a claim with her insurance carrier for uninsured motorist coverage and demanded arbitration under the arbitration provision in her insurance policy. The matter was referred to the American Arbitration Association …
Continue ReadingSeventh Circuit Grants Temporary Restraining Order to Catholic Contractor on Contraception Mandate
Korte v. Sebelius
United States Court of Appeals for the Seventh Circuit (December 28, 2012)
On December 28, 2012, the Seventh Circuit issued a temporary restraining order exempting a contracting company from the contraception rule under the Affordable Care Act. This ruling was in line with other courts including the Eighth District in O’Brien v. U.S. Dep’t of Health & Human Servs. as well as other district courts including a Michigan Federal District Court, which granted a temporary restraining order to Domino’s Farms Corp. …
TCPA Claims Uninsurable on Public Policy Grounds
Standard Mut. Ins. Co. v. Lay (Ill. Ct. App. April 20, 2012)
In a matter of first impression, an Illinois appellate court recently held that damages assessed under the Telephone Consumer Protection Act (TCPA) are punitive in nature and, therefore, are uninsurable on public policy grounds.
A real estate agent hired a fax broadcaster to assist in his advertising effort to sell a property listing. The broadcaster represented that the fax recipients would be only entities that consented to receiving fax messages such as the …
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