Our policyholder client was sued claiming an important new product it recently launched was based on trade secrets belonging to another company. The plaintiff-claimant alleged that one of its former employees had been hired by our client and that the idea and design of our client’s new product was a trade secret developed during his employment with the claimant. ... Read More
Parking lot shooting covered rejecting insurer argument it didn’t result from a defect in the premises.
An Illinois appellate court in the first district, applying Illinois law, reversed the trial court’s grant of summary judgment in favor of an insurer and held the insurer had a duty to defend and indemnify the policyholder for claims filed by two individuals who... Read More
Claim excluded by Virus and Bacteria and Pollution Exclusions.
The Wisconsin Court of Appeals, Fourth District, affirmed a trial court finding that the plaintiff-policyholders’ claims were barred based on mold (Virus and Bacteria) and pollution exclusions in the insurers’ policies. Michael and Rhonda Sue Foley hired Harry Simons, Jr. to remodel their house. The Foleys sued Simons alleging that Simons’... Read More
Insurer ordered to produce specimen forms and a witness to testify on those forms.
A federal magistrate judge from the Western District of New York, applying New York law, held that policyholder American Precision Industries, Inc. (“API”) was entitled to deposition testimony and policy forms from an insurer in connection with its effort to prove up lost policies, and therefore... Read More
“Operations Clause” precluded coverage for contamination pre-dating Conrail’s ownership.
A Pennsylvania appeals court, applying Pennsylvania law, affirmed the lower court’s ruling that interpreted an “Operations Clause” to require insurance coverage only for environmental contamination that was caused by or grew out of the insured’s operations. Thus, while the insured paid millions in remediation and other expenses due to contamination at... Read More
Alleged extrinsic evidence outside complaint did not trigger defense duty.
A Washington federal court, applying Washington law, granted Cincinnati Insurance Company’s motion for summary judgment, holding that the insurer need not cover its insured, Zaycon Foods, LLC (“Zaycon”), in a lawsuit brought by an ousted, former CEO. Zaycon conceded that the only potential for coverage of the underlying lawsuit would... Read More
9th Cir (CA) Potential for coverage triggers defense duty.
The Ninth Circuit, applying California law, upheld the grant of summary judgment in favor of the policyholder, finding the district court properly held that a class action complaint alleged discrimination in a manner that triggered the insurer’s duty to defend.
PHP Group, Inc.’s (“PHP”) employees sued PHP for violating the California Labor... Read More
Reservation of rights on punitive damages does not create Peppers conflict.
An Illinois appellate court in the first district, applying Illinois law, affirmed the trial court’s ruling and held that an insured was not entitled to reimbursement for the fees of its independent counsel, because no conflict of interest existed regarding the defense of the underlying copyright infringement case that... Read More
Pella entitled to defense reimbursement for property damage when evidence demonstrates the potential for coverage.
An Iowa federal court, applying Iowa law, entered summary judgment in favor of window maker regarding during which policy period defense costs coverage was triggered. The court held that the policy period in which the windows were installed was triggered, because there was potential property... Read More
Lloyds $25M excess policy not triggered until underlying insurer pays its full limits.
An Arizona trial court held that an excess pollution policy was not triggered until the primary insurer paid its entire underlying limits. In making its ruling, the court rejected the insured’s argument that the excess policy was triggered when losses exceeded the underlying limit, regardless of whether... Read More