South Carolina Appeals Court finds exclusion applicable even though “odors” not specifically listed in exclusion, and do not need to be harmful to be a “pollutant.” A South Carolina Appellate Court, applying South Carolina law, affirmed a circuit cort’s ruling that the state-run South Carolina Insurance Reserve Fund (the “Fund”) owed no duty to defend or indemnify the East Richland... Read More

Unintentional unrestricted posting of private medical information on the internet constitutes publication even if no allegation that third-parties actually viewed. The Fourth Circuit, applying Virginia law, affirmed the district court and held that Travelers Indemnity Company of America (“Travelers”) must defend its insured, Portal Healthcare Solutions, L.L.C. (“Portal”), against a class action lawsuit pending in New York state court alleging... Read More

Tribune shareholders can maintain claim against broker for negligence. An Illinois Appellate Court, applying Illinois law, held that the trial court erred in concluding that an exclusion in a directors’ and officers’ (“D&O”) policy would have precluded coverage for underlying suits filed against policyholders, the Robert R. McCormick Foundation and the Cantigny Foundation (collectively “Policyholders”).  Consequently, Policyholders were allowed to... Read More

No “occurrence” because the damages were the ordinary consequence of subcontractor’s defective window installation. An Illinois federal district court, applying Illinois law, held that insurers have no duty to cover a subcontractor’s settlement with a condominium association relating to property damage caused by subcontractor’s faulty window and glazing services. Metro North, the governing body of a condominium building in Chicago, filed... Read More

Equitable Contribution available when two workers’ compensation policies cover same loss. The Massachusetts Supreme Court, on a certified question from the Federal United States Court of Appeals for the First Circuit, found that when one workers’ compensation policy is target tendered, it may seek contribution from another insurer that provided coverage for the same loss.  Although the opinion is rather... Read More

Georgia Supreme Court finds lead a “pollutant” in Absolute Pollution Exclusion rejecting view that it only applies to traditional pollution. The Georgia Supreme Court, applying Georgia law, reversed the appellate court, and held, as a matter of first impression, that lead poisoning due to lead-based paint ingestion was excluded from coverage pursuant to an “absolute pollution exclusion” in a Comprehensive... Read More

9th Cir. applies “efficient proximate cause” test and finds “corrosion” can constitute “direct damage.” The Ninth Circuit, applying Nevada law, affirmed a jury’s finding that Continental Casualty Company (“Continental”) was responsible for covering damage to equipment at an Olin Corporation (“Olin”) chemical plant in Nevada.   Continental issued Olin an insurance policy covering the plant’s boilers and machinery.  In late 2008,... Read More

NY court found “injury-in-fact” theory did not bar $58MM claim as policy only requires some injury during its term. A trial judge in New York State Court found that Ace INA Insurance (“Ace INA”) Factory Mutual Insurance Co. (“Factory Mutual”) and Arch Insurance Co. (“Arch”) were obligated to reimburse approximately $58MM to TransCanada Energy USA, Inc. (“TransCanada”) for property damage... Read More