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Insurance Litigation Insurance Industry Breach of Duty

Pillsbury - Policyholder Pulse blog

Narrowing the Professional Services Exclusion: Policyholder Lessons “Arising Out of” Practice Fusion v. Freedom Specialty...

A recent decision by a California appellate court in Practice Fusion, Inc. v. Freedom Specialty Insurance Company, denying the policyholder more than $118 million in Directors & Officers liability coverage based on an...more

Cozen O'Connor

Louisiana Court Finds That an Insured Breached its Duty to Cooperate

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The recent decision of Marcantel v. State Farm Fire, No. 2:22-CV-01511, 2024 U.S. Dist. LEXIS 111077 (W.D. La. June 24, 2024) offers valuable lessons for policyholders regarding the importance of cooperation in the insurance...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - January 2024

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Second Circuit Holds That Malpractice Insurer Has No Duty to Defend or to Indemnify Lawyer Because Of Business Enterprise Exclusion- Associated Industries Insurance Company sued its insureds, a lawyer, and his former law...more

Wiley Rein LLP

Insurers Owe Coverage for Settlement Despite Bump-Up Provision

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Applying Delaware law, the Superior Court of the State of Delaware has held that a bump up provision did not bar coverage of a settlement that resolved claims asserting breaches of fiduciary duty. On December 4, 2019, the...more

Rivkin Radler LLP

Insurance Update - August 2023

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Mental state, in some form, is the common theme running through our first three cases this month. The Fifth Circuit decides whether directors and officers of an ice cream company, accused of breaching their fiduciary...more

Saul Ewing LLP

The Friday Five: Five ERISA Litigation Highlights - August 2023

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This month’s Friday Five addresses two cases involving disability claims that touch on Covid-19, a Circuit Court ruling for an insurer, a district court ruling that a 20-year-old regulatory settlement precluded an insurer...more

Rivkin Radler LLP

Insurance Update - January 24, 2023

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It was a busy end to the year, as courts handed down several key insurance decisions before ringing in 2023. The Ohio Supreme Court considered the contours of “direct physical loss or damage” in two separate decisions –...more

Rivkin Radler LLP

The Title Reporter — Winter 2023

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Here is what we cover in this issue of The Title Reporter: A Legal Update for the Title Insurance Industry •A federal district court in New York granted summary judgment in favor of a title insurance company and its...more

Wiley Rein LLP

Lawsuit Deemed Related to Notice of Circumstances Submitted During Prior Claims-Made Policy Period Under Florida’s “Sufficient...

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The United States District Court for the Western District of Louisiana, applying Florida law, has held that an investor’s lawsuit against an attorney related back to a notice of a potential claim submitted during the earlier...more

Wiley Rein LLP

Insurer’s Declaratory Judgment Complaint Plausibly Alleges Violation of Cooperation Clause at Motion to Dismiss Phase

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The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer’s complaint plausibly alleged that the insured had breached the terms of the policy’s cooperation clause....more

Wiley Rein LLP

Duty to Defend Where Complaint Contains Potentially Covered Allegations

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The United States District Court for the Southern District of Florida, applying Florida law, has determined that two lawyers professional liability insurers had a duty to defend where the underlying complaint included at...more

Jaburg Wilk

An Inadequate Investigation Exposes Arizona Insurers to Bad Faith Only If the Insured Proves Additional Investigation Would Have...

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Plaintiffs often allege an insurer breached the duty of good faith and fair dealing by conducting an unreasonable and/or an inadequate investigation. But, Arizona courts have held for over 30 years that an insurer’s...more

Wiley Rein LLP

Insured Barred From Settling Without Insurer’s Consent Absent Breach of Duty to Defend But Insurer Must Exercise Good Faith in...

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The United States District Court for the District of South Dakota, applying South Dakota law, has held that an insured healthcare system was barred from settling without its healthcare liability insurer’s consent where the...more

Wiley Rein LLP

Lawyer’s Professional Liability Insurer has Duty to Defend Suit Alleging Sexual Assault of Client

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Applying Maine law, the United States District Court for the District of Maine has held that a legal professional liability insurer had a duty to defend an insured attorney against a suit alleging sexual assault of a client,...more

Cooley LLP

Fair Presentation, Moral Hazard and Material Circumstances

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In the recent decision in Berkshire Assets (West London) Ltd v AXA Insurance UK Plc [2021] EWHC 2689 (Comm), Lionel Persey QC, sitting as a Judge of the High Court, gave the first English decision on the insured’s duty of...more

White and Williams LLP

Montana Supreme Court Tackles Decade-Old Coverage Dispute Concerning Asbestos Mineworker Claims

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On November 23, 2021, the Montana Supreme Court issued an almost unanimous decision in National Indemnity Company v. State of Montana, a ten-year-old coverage dispute arising from claims against the State of Montana alleging...more

BCLP

When can Insurers avoid for non-disclosure?

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Since the Insurance Act 2015 (the “IA 2015”) came into force on 12 August 2016, the Courts have not been called upon yet to interpret its provisions. Jones v Zurich Insurance Plc handed down on 18 May 2021, considers the...more

Wiley Rein LLP

Delaware Supreme Court Applies Delaware Law in D&O Coverage Dispute Involving California Company Incorporated in Delaware

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In a much-watched case, the Delaware Supreme Court has held that Delaware law governs a dispute regarding insurance coverage for a federal securities class action under D&O policies issued in California to a California...more

Wiley Rein LLP

Negligent Misrepresentation Claim Not Barred By Exclusion for Dishonest Conduct

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The United States District Court for the Northern District of California, applying California law, has held that a dishonesty exclusion in a D&O policy did not bar coverage for an underlying lawsuit alleging a company...more

Winstead PC

Court Holds That Insurers Do Not Generally Owe Fiduciary Duties To Insureds

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In Ec & Sm Guerra v. Phila. Indem. Ins. Co., an insured sued its property insurer for breach of fiduciary duty and other claims arising from the insurer’s denying a claim for wind damage and disagreeing with an appraiser’s...more

Blank Rome LLP

California Corner: Insurer’s Failure to Immediately Commence Defense Waives California Civil Code Section 2860 Rate Limitations...

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California courts strictly enforce an insurer’s duty to immediately commence defending its insured. The insurer’s delay in doing so, even if the delay is short, constitutes a breach of this important duty. In fact, California...more

White and Williams LLP

Amazon Feels the Heat From Hoverboard Fire Claims

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In State Farm Fire & Cas. Co. v. Amazon.com, Inc., No. 3:18CV166-M-P, 2019 U.S. Dist. LEXIS 189053 (Oct. 31, 2019), the United States District Court for the Northern District of Mississippi considered a Motion for Judgment on...more

White and Williams LLP

Delaware Supreme Court Applies Plain Meaning of Insurance Policy Language to Reverse $48 Million Defense Cost Award

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An unbroken sequence of Delaware trial court decisions have reflected strong pro-policyholder leaning in insurance cases in furtherance of the state’s pro-business model. Following the most recent of these pro-policyholder...more

Sheppard Mullin Richter & Hampton LLP

Court Finds That “Care, Custody Or Control” Exclusion Did Not Negate Coverage For General Contractor Who Shared Jobsite...

McMillin Homes Constr., Inc. v. National Fire & Marine Ins. Co., 35 Cal.App.5th 1042 (2019); Fourth Appellate District Court of Appeal, Division One, Case No. D074219 (June 5, 2019). McMillin Homes Construction, Inc....more

Kilpatrick

Court Rules Insured Has Duty To Read Insurance Policy Sooner Rather Than Later

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In a recent case involving claims against an insurance broker, Judge Graham Mullen firmly put the burden of reviewing an insurance policy and understanding coverage exclusions on the insured. Granting summary judgment for...more

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