DE court applying WI law finds no late notice prejudice when insurer consistently denies coverage. The Superior Court of Delaware, applying Wisconsin law, held that Travelers Indemnity Company (“Travelers”) has a duty to defend CNH Industrial America LLC (“CNH”).  The duty to defend was not affected by the insured’s alleged untimely notice, because according to the court, Travelers was not... Read More

NJ Supreme Court finds coverage for subcontractor’s faulty workmanship under general contractor’s CGL policy. In a unanimous opinion, the New Jersey Supreme Court, applying New Jersey law, held that consequential damages resulting from a subcontractor’s defective work on a condominium complex triggered coverage under the general contractor’s comprehensive general liability policy. The underlying dispute stems from the construction of Cypress Point,... Read More

Federal court refuses to interpret non-cumulation clause without further discovery regarding the number of occurrences. A New York District Court, applying New York law, denied an insurer’s motion for summary judgment which sought to limit its liability under successive umbrella policies.  The court found that the applicable non-cumulation clause in the umbrella policies was ambiguous and could not be interpreted... Read More

Trial court holds that all primary policies must exhaust before excess or umbrella can be reached – but declines to adopt a blanket rule above the primary layer. An Illinois circuit court, applying Illinois law, declined to rule whether “horizontal” exhaustion applies to umbrella and excess policies, and instead held that each secondary policy dictates the proper method. Policyholder, John... Read More

NJ App. Ct. refuses to allocate to policies with asbestos exclusion; no duty to defend in certain pre-86 excess policies. A New Jersey Appellate Court, applying New Jersey law, held that the “availability rule” in Owens-Illinois required no allocation of defense or indemnity costs to Honeywell International, Inc. (“Honeywell”) for the post-1986 period because asbestos-related coverage was not available, even... Read More

Indiana law requires that contaminants be specifically listed. An Indiana Federal District Court found that a pollution exclusion issued by Old Republic Insurance Co. to the Gary/Chicago International Airport Authority was unenforceable because it did not specifically identify the individual pollutants it was intended to exclude as required by Indiana law. In 2014, the Indiana Department of Environmental Management instituted a... Read More

“Because of Bodily Injury” language broad enough to encompass legal theories pled by the State of West Virginia reversing Summary Judgment for Insurer. The Seventh Circuit, applying Illinois law, reversed the District Court and held that Cincinnati Insurance Company (“Cincinnati”) must defend H.D. Smith, L.L.C. (“H.D. Smith”) in a lawsuit brought by the state of West Virginia in which it... Read More