On July 20, 2022, Florida’s Third District Court of Appeal reversed and remanded a trial court’s decision compelling the parties to proceed with appraisal and staying litigation until that appraisal was completed. Florida’s...more
The Tenth Circuit recently held that, under Kansas law, an intentional loss exclusion precludes coverage for damage caused by an intentionally set fire even if the actual resulting damage is unintended. In Taylor et al. v. LM...more
On June 28, the Missouri Court of Appeals upheld a lower court’s decision finding Lexington Insurance Company (“Lexington”) breached its policy with homeowner Cynthia Franklin. Franklin’s home has sustained damage in a May...more
An intentional act may not be an “occurrence” even when there is no intent to cause harm, according to a California appellate court’s recent ruling in Ghukasian v. Aegis Security Insurance Co.1 Ghukasian involved an insured...more
6/1/2022
/ Bad Faith ,
Breach of Contract ,
Construction Defects ,
Declaratory Relief ,
Duty to Defend ,
General Contractors ,
Harmful Error ,
Intentional Torts ,
Negligence ,
Occurrence ,
Property Damage ,
Property Insurance ,
Trespass
According to a recent ruling by a New York appellate court, coverage for excavation damage is precluded by the policy’s earth movement exclusion. In 3502 Partners LLC v. Great American Insurance Co. of New York, Case No....more
Accepting coverage for part of a claim may subject an insurer to a policy’s appraisal process when the extent of covered damage is in dispute, according to a recent ruling issued by the Eastern District of Tennessee....more
A policy renewal requires a living insured to form a valid insurance contract, the Sixth Circuit recently ruled. In Boby Davis, et al. v. Westfield Ins. Co., Case No. 21-2797 (6th Cir. Mar. 14, 2022), Della Shields received a...more
The Second Circuit has now joined the Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Circuits in holding that no insurance coverage exists for business interruption losses caused by the Covid-19 pandemic and the...more
An insurer has won the first jury trial on coverage for Covid-19 business interruption losses after a federal jury in the Western District of Missouri issued a verdict in favor of The Cincinnati Insurance Company in K.C....more
11/2/2021
/ Business Income ,
Business Interruption ,
Business Losses ,
Commercial Insurance Policies ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Denial of Insurance Coverage ,
Infectious Diseases ,
Insurance Claims ,
Insurance Litigation ,
Jury Trial ,
Policy Terms
A district court in Montana recently applied an anti-concurrent clause in a property insurance policy to preclude coverage based on an earth movement exclusion. In Ward v. Safeco Ins. Co. of Amer., No. 1:19-CV-0133-SPW, 2021...more
In the second federal appellate ruling on Covid-19 business losses, the Eleventh Circuit has joined the Eighth Circuit in holding that they do not trigger coverage because they do not involve “physical loss” or “physical...more
9/2/2021
/ Business Closures ,
Business Income ,
Business Interruption ,
Business Losses ,
Commercial Insurance Policies ,
Contract Interpretation ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Denial of Insurance Coverage ,
Infectious Diseases ,
Insurance Claims ,
Insurance Litigation ,
Policy Terms
The Court of Appeals of Georgia recently held that an insurer’s reliance on the report of an independent consultant creates a presumption that it did not act in bad faith in denying coverage. In Montgomery v. Travelers Home...more
In determining when the work product doctrine is triggered, the Northern District of Illinois recently held that, rather than adopting a bright-line rule, the issue should be decided on a case-by-case basis at the court’s...more
8/18/2021
/ Bright-Line Rule ,
Discovery ,
Document Productions ,
Fire Damage ,
Insurance Claims ,
Insurance Litigation ,
Investigations ,
Litigation Strategies ,
Property Damage ,
Property Insurance ,
Work-Product Doctrine
Flood exclusions may not apply when floods are preceded by winds strong enough to independently cause the loss, according to a recent decision issued by the Western District of Louisiana. In Doxey v. Aegis Security Ins. Co.,...more
7/21/2021
/ Denial of Insurance Coverage ,
Flood Insurance ,
Flooding ,
Hurricane Laura ,
Insurance Claims ,
Insurance Litigation ,
Policy Exclusions ,
Property Damage ,
Property Insurance ,
Severe Weather ,
Water Damage
The Eighth Circuit Court of Appeals recently held that, under Iowa law, an insurer is not liable for breach of contract or bad faith if its coverage decision was objectively reasonable at the time it was made. In Hallmark...more
The first appellate court to consider a COVID-19 business interruption claim has ruled in favor of the insurer holding that coverage for business losses resulting from the COVID-19 pandemic and related government orders is...more
The Eleventh Circuit Court of Appeals recently held that, under Georgia law, an appraisal process tolled a commercial property policy’s two-year contractual suit limitation period even for non-covered claims....more
A Florida court recently held that rust and corrosion of water pipes is an “act of nature,” and, thus, was excluded from coverage under a homeowner’s insurance policy. In Dodge v. People’s Trust Insurance Company, 2021 WL...more
Insurers in South Carolina may now depreciate both labor costs and material costs when determining the “actual cash value” (ACV) owed to policyholders for property damage....more
A District Court in the Eastern District of Pennsylvania recently held that an insured’s submission of invoices altered to inflate replacement costs for water-damaged inventory constituted material misrepresentations. ...more
6/3/2021
/ Common Law Claims ,
Denial of Insurance Coverage ,
Insurance Claims ,
Insurance Fraud ,
Insurance Litigation ,
Invoices ,
Material Misrepresentation ,
Property Damage ,
Property Insurance ,
Summary Judgment ,
Water Damage
An insurer can no longer claim its lack of notice of a lawsuit against its insured excuses it for failing to settle the suit after the Georgia Supreme Court’s recent decision in GEICO Indemnity Co. v. Whiteside, Case No....more
The Appellate Division of the Supreme Court of New York has provided some clarity to New York businesses and their insurers dealing with loss resulting from fraudulent entrustment. In Crown Jewels Estate Jewelry, Inc. v....more
Last week Hurricane Laura became the strongest hurricane on record to make landfall in the state of Louisiana since 1856. The Category 4 storm claimed at least 10 lives and caused an estimated $4 to $7 billion in property...more
The Eleventh Circuit has provided some clarity to Florida businesses and their insurers dealing with COVID-19 claims. In Mama Jo’s Inc., d.b.a. Berries v. Sparta Ins. Co., No. 18-12887 (11th Cir. March 18, 2020), the Court...more
On April 20, 2020, two policyholders involved in Covid-19 class action suits filed the first motion with the Judicial Panel on Multidistrict Litigation (MDL) asking for the transfer and coordination or consolidation of two...more