Coverage Action Limited to Reasons Stated in Denial Letter
The United States District Court for the District of Rhode Island, applying Rhode Island law, held that when an insurance company denies coverage, it should be held to the reasons given to its insured in its denial letter and later barred from introducing into evidence or arguing for any grounds that... Read More
Models’ Negligence Allegations against Strip Club Triggers Duty to Defend
The United States District Court for the Northern District of Illinois, in an opinion written by Judge Feinerman, applying Illinois law, granted, in part, Triple Location LLC’s motion for summary judgment as to its insurer First Mercury Insurance Company’s (“First Mercury”) duty to defend.
The underlying case concerns three models who... Read More
The United States Court of Appeals for the Seventh Circuit, in an opinion by Judge Kanne, interpreting §155 of the Illinois Insurance Code (bad faith), reversed the decision of the district court following a bench trial and instructed the lower court to dismiss the §155 claim in this “admittedly atypical” case.
Creation Supply, Inc. (“CSI”), a seller of writing markers,... Read More
Disclosure to 3rd Party a “Publication” – “Violation of Statute” Exclusion Inapplicable
The Illinois Supreme Court, in an opinion written by Justice Neville, applying Illinois law, affirmed the lower courts’ rulings and held that the insurer had a duty to defend claims for violations of the Biometric Information Privacy Act (“BIPA”) because the disclosure of fingerprint data to a third... Read More
Corporate Successor to OneBeacon, Commercial Union, Employers Fire, et al.
The Bedivere Insurance Company, f/k/a OneBeacon Insurance Company, Commercial Union Insurance Company, et al. (collectively “Bedivere”) was placed into liquidation by the Pennsylvania Commonwealth Court on March 11, 2021, following a Petition for Liquidation filed by the Insurance Commissioner of the Commonwealth of Pennsylvania. All claims and litigation against Bedivere... Read More
COVID Business Interruption Claim Survives Motion to Dismiss
Courts remain divided as to whether insureds’ business interruption lawsuits stemming from COVID-19 closures have made allegations of fact sufficient to survive a 12(b)(6) or analogous state court motion to dismiss. Recently, the United States District Court for the Western District of Missouri, applying Missouri law, on the one hand, granted Lexington... Read More
Contractor Entitled to Coverage as Additional Insured on Subcontractor’s Policy
A New York Appellate Court upheld the lower court’s ruling that Pofi Construction Corporation (“Pofi”), the general contractor on a repair and maintenance projection for the subject building in Manhattan, was an additional insured under a policy Rutgers Casualty Insurance Company (“Rutgers”) issued to Pofi’s subcontractor for the restoration of... Read More
Coverage Case Stayed Because Same Factual Dispute in Underlying Case
The United States District Court for the Eastern District of California, applying California law, ordered a stay of the coverage case until the underlying state court action concludes. The coverage case involves an insurance coverage dispute between New York Marine & General Insurance Company (“New York Marine”) and its insureds.... Read More
“Special Hazards, Fluid Endorsement” Ambiguous – Total Pollution Exclusion Inapplicable
The United States Court of Appeals for the First Circuit, applying Massachusetts law, reversed the district court’s finding that the relevant excess policy provisions unambiguously excluded coverage and ordered entry of judgment in favor of Performance Trans., Inc. and Utica Mutual Insurance Company (collectively “PTI”) on its breach of contract... Read More
Insurer Failed to Provide Sufficient Notice of Non-Payment
The United States District Court for the Northern District of Illinois, in an opinion written by Judge Matthew Kennelly, applying Illinois law, granted Ryan and Sean Harwick’s (“Plaintiffs”) motion for summary judgment in a lawsuit against AXA Equitable Life Insurance Company (“AXA”) finding that the nonpayment notice provided by AXA did not... Read More