Section 155 sanctions award upheld for insurer’s delay in settling property damage claim
The Illinois appellate court for the Second District, in an opinion written by Justice Burke, held that the circuit court did not abuse its discretion in finding an insurer’s delay in settling property damage claims was unreasonable, vexatious, and deserving of sanctions under 215 ILCS 5/155. The... Read More
Nightclub’s loss of value due to permit cancellation after shooting covered by general liability policy
A California appeals court, applying California law, reversed a lower court’s ruling and held that a venue owner’s loss of ability to use the property as a nightclub constituted property damage, not economic loss, and therefore it was covered under the applicable general liability policy.
Thee... Read More
Carbon monoxide poisoning coverage not barred by “indoor air” exclusion
The Tenth Circuit, applying Oklahoma law, held that a policy exclusion for injuries due to “qualities or characteristics of indoor air” was ambiguous because it was susceptible to multiple reasonable interpretations. The Tenth Circuit held that the exclusion should be interpreted in favor of coverage, and therefore, the “indoor air”... Read More
Faulty subcontractor work not an “occurrence” triggering insurer’s duty to defend
The Supreme Court of Ohio, applying Ohio law, reversed the judgment of the court of appeals and reinstated the judgment of the trial court. The Supreme Court of Ohio found no duty to defend in a suit brought by a property owner due to faulty work done by a... Read More
Bitcoin constitutes “property” under homeowner’s policy
An Ohio trial court, on an issue of first impression under Ohio law, held that Bitcoin is recognized as property under a homeowner’s policy and not money. Therefore, a homeowner’s claim for stolen Bitcoin was not subject to the sublimit under the policy for money.
James Kimmelman submitted a claim to his homeowner insurer, Wayne... Read More
Insured’s unreasonable untimely notice of environmental claims prejudicial to insurer
An appellate court in Indiana, applying Indiana law, affirmed the grant of summary judgment to an insurer after the insured waited more than a decade to notify the insurer that it had made payments in several suits brought against it.
Franke Plating Works (“Franke Plating”) is an Indiana company that has... Read More
CA Fed. Ct. affirms BK Ct.’s award of IL §155 of fees, expenses, interest, statutory penalty and policy limits
The Bankruptcy Court for the Northern District of California awarded the Trustee of the CFB/WFB Liquidation Trust extra-contractual damages against Continental Casual Company (“Continental”) under Illinois Insurance Code 215 ILCS 5/155 for vexatious and unreasonable conduct due to its failure to... Read More
“Discovery rule” doesn’t toll Statute of Limitation in negligent procurement case against agent (2 Dissenters)
The Illinois Supreme Court, applying Illinois law, held that a two-year statute of limitations applies to an insureds’ claim that their insurance agent negligently sold them a deficient insurance policy. Moreover, the Illinois Supreme Court held that the cause of action for negligent procurement against... Read More
The District Court of Massachusetts, applying Massachusetts law, accepted and adopted the recommendation of a Magistrate Judge that ACE Property and Casualty Insurance Co. (“ACE”) breached its duty to defend its insured, State Line Laundry Services (“State Line Laundry”), in a dispute with Plaistow Project, LLC (“Plaistow”). The court also accepted and adopted the Magistrate’s denial of ACE’s motion... Read More
A New York trial court, applying New York law, ruled that an excess insurer failed to meet its burden on summary judgment to prove that a “prior and pending” litigation or investigation exclusion applied to bar coverage.
The insurance coverage case stemmed from an SEC proceeding and criminal prosecutions alleging Platinum Management (NY) LLC’s (“Platinum”) and other defendants were involved... Read More