Summary judgment for “knowing misrepresentation” regarding late notice claim
A Delaware state court judge found Homeland Insurance Co. of New York (“Homeland”) liable for bad faith for its actions in denying a claim by its policyholder CorVel Corp. (“CorVel”) and ordered Homeland to pay damages and penalties in the amount of $13.5M. In the underlying class action arbitration brought in... Read More
“Claims in Process” exclusion applies because contamination first occurred prior to policy inception
The Seventh Circuit, applying Indiana law, affirmed the district court’s ruling and held that there was no coverage for property damage arising out of pollutants leaking from underground storage tanks due to a “Claims in Process” exclusion in the relevant policies. The Seventh Circuit confirmed the trial... Read More
No coverage because exception to IP exclusion not applicable due to inclusion of trademark and copyright claims
An Illinois federal district court, applying Illinois law, held that an intellectual property exclusion relieved an insurer of its defense obligations for an underlying suit regarding trademark infringement and unfair competition, because the exclusion clearly excluded coverage for entire suits that allege intellectual... Read More
Affirms summary judgment to insurer in grain silo explosion case
The Seventh Circuit affirmed a trial court ruling that policyholder West Side Salvage Inc. (“West Side”) was not entitled to seek bad faith damages from RSUI Indemnity Co. (“RSUI”) for its alleged failure to properly protect its interests by settling an underlying claim against it. West Side was contracted to... Read More
Travelers required to provide coverage despite missing policies in pollution case
An Illinois appellate court (1st Dist.), applying Illinois law, upheld the circuit court’s ruling that an insured proved by a preponderance of evidence the material terms and conditions of several years of missing comprehensive general liability (“CGL”) and auto policies.
Rogers Cartage Company (“Rogers”), a trucking company that hauls bulk... Read More
“Logical extension of Waste Management Common-Interest exception” to privilege waiver
An Illinois appellate court, applying Illinois law, held that co-defendants in a case who agree to share information pursuant to their common interest in defeating their litigation opponent do not waive either their attorney-client or work-product privilege.
A purported class action lawsuit was filed against State Farm Mutual Auto Insurance Company... Read More
Potential indemnitor not indispensable party for PCB insurance case / diversity jurisdiction maintained.
A district court for the Northern District of Illinois, applying the Federal Rules of Civil Procedure and Illinois law, held that a potential indemnitor to a party is not indispensable to a coverage dispute, and thus, not required to be joined, especially where there is no contractual... Read More
Professional liability insurer had duty to defend and provide independent counsel for sexual misconduct claim.
A district court for the Northern District of Illinois, applying Illinois law, held allegations of sexual misconduct against a psychiatrist trigged a professional liability insurer’s duty defend. According to the court, the allegations constituted negligence in the performance of professional services and amounted to bodily... Read More
Policyholder must hire and pay for counsel to assert counterclaim in case being defended by insurer.
The First Circuit, applying Massachusetts law, held that the presence of a counterclaim, which the insurer neither is required to prosecute nor pay for, does not create a conflict of interest entitling an insured to independent counsel. Thus, the court found that the insured... Read More
Litigation insurer liable for defense expenses for WTC claims after policy exhausted.
The New York Supreme Court, applying New York law, held that thousands of asbestos-related personal injury claims arising from exposure to asbestos during the construction of the original World Trade Center site (the “WTC”) triggered coverage under a “litigation insurance” policy issued by American Home Assurance Co. (“American... Read More