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Liability Coverage For Construction Claims May Turn On Narrow Factual Distinctions

In a recent trial court decision, a Montana federal court reminds us how fragile insurance coverage can be for construction-related insurance claims. Specifically, this case illustrates how seemingly small factual nuances can...more

Court of Appeal Confirms Availability of Insurance Coverage for Some Kinds of Intentional Conduct

The California Court of Appeal recently issued a thoroughly reasoned decision in City of Whittier v. Everest National Insurance Company, et al. It addresses coverage for whistleblower retaliation claims and also has...more

Policyholders Should Be Skeptical of Coverage Denials, Court of Appeal Warns

On May 5, 2023, the California Court of Appeal for the Second District released a policyholder-friendly decision reiterating the importance of an insurer’s duty to defend. The case also is a reminder to policyholders to...more

California Appellate Court Rules That Mistakenly Grading the Wrong Land Is Not an Accident

In a decision that further muddies the already murky waters of “occurrence” jurisprudence, the California Court of Appeal has ruled that a general liability policy does not cover a homeowner who mistakenly grades the wrong...more

Texas Supreme Court Authorizes Exception to the "Eight-Corners" Rule

For decades, an insurer’s duty to defend under Texas law was determined exclusively by reviewing the insurance contract and the allegations of the complaint under the “eight-corners rule.” All of this changed last week when,...more

Fifth Circuit Confirms: Insurer Must Defend Despite Your Work/Your Product Exclusion

The United States Court of Appeals for the Fifth Circuit recently confirmed that liability insurers have a duty to defend their insureds in construction defect cases when the underlying complaint alleges damage to property...more

Nevada Insureds Can Rely on Extrinsic Facts to Show that An Insurer Owes a Duty to Defend

On Oct. 28, 2021, the Nevada Supreme Court in Zurich American Insurance Company v.. Ironshore Specialty Insurance Company, 137 Nev. Adv. Op. 66, held that an insured can rely on extrinsic facts to show that an insurer has a...more

Federal Court: Insurer Breaches Duty to Defend By Insisting it Owes Only a “Defense-Follows-Indemnity” Share of Defense Costs

In an insurance recovery case being handled by Payne & Fears partners Scott Thomas and Sarah Odia, an Arizona federal court, applying Nevada law, recently held that NGM Insurance Company breached its duty to defend its...more

Nevada Supreme Court Recognizes an Insurer's Reimbursement Claim

The Nevada Supreme Court held that insurers may seek reimbursement of defense costs if a court determines that it owed no duty to defend and the insurer reserved reimbursement rights. In Nautilus Insurance Company v....more

Victory for Policyholders - An Insurer's Breach of the Duty to Defend Opens Up Policy Limits

Insurance companies can no longer breach the duty to defend believing that, as long as they act in good faith, their potential liability is capped at policy limits or any costs incurred by the insured in mounting a defense....more

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