News & Analysis as of

Appeals Insurance Litigation

Sheppard Mullin Richter & Hampton LLP

John’s Grill, Inc. v. Hartford Financial Services, Group, Inc.: Illusory Coverage, Unambiguous Policy Language, and the...

In its latest Covid-era coverage case, John’s Grill, Inc. v. Hartford Financial Services, Group, Inc., the California Supreme Court held that an insured cannot use the “illusory coverage doctrine to transform the policy’s...more

Wiley Rein LLP

Second Circuit Finds Pre-Suit Letter Was a “Claim” and Remands for Determination of Whether Notice of Claim Was Timely

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The United States Court of Appeals for the Second Circuit, applying New York law, has held that a pre-suit letter sent to an insured constituted a “Claim” under a liability policy. Match Group, LLC v. Beazley Underwriting...more

Steptoe & Johnson PLLC

Fourth Circuit Reaffirms Necessary Prerequisites for Claiming Hayseeds Damages and Offers Guidance on Admissibility of Experts

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On June 5, the United States Circuit Court of Appeals for the Fourth Circuit issued an unpublished opinion that provides a blueprint to insurance companies for handling bad faith claims. The Fourth Circuit held in Sellman v....more

Robinson Bradshaw

When a Rule 23(f) Appeal Becomes Something More: Fourth Circuit Exercises Pendent Appellate Jurisdiction Over Ruling on the Merits

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Federal Rule of Civil Procedure 23(f) gives the court of appeals discretion to review a narrow class of interlocutory orders: those granting or denying class certification. But it is sometimes possible for other orders to...more

Sheppard Mullin Richter & Hampton LLP

Appellate Judge Proposes Possible Use of GenAI for Contract Interpretation – Recognizes That AI Hallucinates but Flesh-And-Blood...

By now, most lawyers have heard of judges sanctioning lawyers for misuse of generative AI, typically for not fact checking the outputs. Other judges have issued local rules governing use of or prohibiting AI. These actions...more

Stikeman Elliott LLP

Who Should Pay? Ontario Court of Appeal Provides Needed Guidance on Allocation of Defence Costs Among Insurers for Class Actions...

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In Loblaw Companies Limited v. Royal & Sun Alliance Insurance Company of Canada, 2024 ONCA 145, the Ontario Court of Appeal, among other things, overturned the lower court’s finding that insureds were entitled to seek 100% of...more

Sheppard Mullin Richter & Hampton LLP

California Courts Clarify the Interpretation of the MCPPA

The Motor Carrier of Property Permit Act (the “MCPPA”) sets forth insurance requirements for commercial motor carriers in California. There is a dearth of legal authority interpreting the MCPPA, which was adopted in 1996....more

BCLP

English Court Decides COVID-19 is a “Catastrophe”

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The English Court has, for the first time, considered the meaning of a “catastrophe”, as well as how Hours Clauses work in the context of non-damage business interruption losses claimed under two Property Catastrophe Excess...more

Sheppard Mullin Richter & Hampton LLP

Attorney Challenging First-Party Diminution of Value Claims Sanctioned by Ninth Circuit

For years, plaintiff’s attorney Montie S. Day has sued California auto insurers, arguing that the policy exclusion precluding coverage for first-party diminution of value damages claims is unenforceable. On November 30, 2023,...more

Faegre Drinker Biddle & Reath LLP

Texas Court of Appeals Clarifies Accrual of Statute of Limitations for Property Claims

When does a cause of action arise against an insurer in the property and casualty setting? Are there “magic words” by the insurer that start the clock? No; but an insurance company may better evaluate the accrual date for...more

Houston Harbaugh, P.C.

Third Circuit: Assault on a school bus did not have sufficient connection to use of the bus to trigger auto coverage

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On September 22, 2023, the U.S. Court of Appeals for the Third Circuit held in a non-precedential opinion that an insurer had no duty to defend a school bus transportation company under an auto policy for an alleged assault...more

Carlton Fields

Alabama Federal Court Finds No Duty to Defend Lawsuit Alleging Concealment of Defects in Sale of Home

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In Nationwide Mutual Fire Insurance Co. v. Carmichael, the U.S. District Court for the Northern District of Alabama, applying Alabama law, entered summary judgment ruling that Nationwide Fire Insurance Co. had no duty to...more

Chartwell Law

"Wear and Tear" is an "Act of Nature," According to Florida's Third DCA

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In People’s Trust Insurance Company vs. Sheila Banks, et.al., No. 3D22-1436 (August 16, 2023), the Third District Court of Appeal (“Third DCA”) issued two significant findings: (1) wear and tear as well as deterioration are...more

White and Williams LLP

Insurer Doomed in Delaware by the Sutton Rule

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In Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the...more

Ervin Cohen & Jessup LLP

Ninth Circuit Deals Another Blow to Restaurants in COVID-19 Insurance Coverage Case

On June 26, 2023, a panel of judges for the United States Court of Appeals for the Ninth Circuit affirmed an insurance company’s win over a restaurant group seeking insurance coverage for pandemic-related claims in Team 44...more

Chartwell Law

Sixth District Court of Appeal Addresses the Scope of Appraisal

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In a June 9, 2023 decision, the Sixth District Court of Appeal (“DCA”) explained the role of an umpire during the appraisal process. The First Acceptance Ins. Co., Inc. v. At Home Auto Glass, LLC a/a/o Petra James trial court...more

Chartwell Law

Fourth District Court of Appeal Determines that Fla. Stat. § 627.70152’s Pre-Suit Notice Requirement Applies Retroactively,...

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Earlier this month, Florida’s Fourth District Court of Appeal held that Fla. Stat. § 627.70152’s pre-suit notice requirement applies retroactively to insurance policies issued before the statute’s effective date. The holding...more

Maron Marvel

Contractual Additional Insureds – What Coverage? The Texas Supreme Court Weighs In

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Primary and excess insurance carriers and their counsel need to pay close attention to a new Texas Supreme Court case Exxon Mobil vs. National Union Fire Insurance Company of Pittsburgh Pennsylvania and Starr Indemnity &...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Affirms Summary Judgment for Allstate in Bad Faith Claim

In an issue of first impression, the Ninth Circuit Court of Appeals affirmed summary judgment for Allstate and held that the two-year statute of limitations for bad faith claims arising out of an uninsured/underinsured...more

Pillsbury Winthrop Shaw Pittman LLP

Court of Appeals Finds That Insurers May Not Participate in Bankruptcy Negotiations by Invoking an Insured’s Duty to Cooperate

In rejecting an insurer’s attempt to block confirmation of its insured’s bankruptcy plan, the Fourth Circuit found that an insurer may not interject itself into plan negotiations by invoking the duty to cooperate, nor does...more

Bressler, Amery & Ross, P.C.

Insurer’s Counsel Wins One of the First Sixth District Court of Appeals Decisions in Insurance Defense Case

Fort Lauderdale, FL (March 2023) – Bressler, Amery & Ross, P.C. attorneys Hope C. Zelinger and Lilian Rodriguez-Baz successfully represented United Property & Casualty Insurance Company in an insurance defense appeal. This...more

Seyfarth Shaw LLP

A New Standard For Full and Fair Review

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Seyfarth Synopsis: The 7th Circuit recently held that insurers and administrators must provide claimants an opportunity to respond to new information relied on for adverse benefit determinations, even if the claim predated...more

Sheppard Mullin Richter & Hampton LLP

The Commercial Division Rejects Yet Another Insured’s Claim for Coverage for Covid-Related Revenues Losses

Does the business harm caused by COVID-19 qualify as “direct physical loss” for insurance purposes? In Spirit Airlines, Inc. v. American Home Assurance Company, Index No. 655755/2021, Commercial Division Justice Robert R....more

Jenner & Block

Client Alert: First Circuit Parses Underlying Complaint to Find Duty to Defend and to Defeat Exclusions

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The duty of a liability insurer to defend a policyholder from litigation is typically described as broad and expansive, extending beyond the insurer’s duty to indemnify. The duty to defend generally obliges an insurer to...more

Conn Kavanaugh

No Case is Too Big to Notify a Claims-Made Insurer

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A headline-grabbing case regarding race in the college admissions process at an elite university, appealed all the way to the United States Supreme Court, is the type of nightmare scenario that might inspire an educational...more

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