The Vermont Supreme Court, applying Vermont law, held that coverage for damage to a home caused by a contractor spraying the pesticide chlorpyrifos throughout the house to combat bed bugs was barred by a pollution exclusion in the homeowners policy. The homeowners, Neil and Patricia Whitney, noticed bed bugs in their home shortly after a new foster child was placed... Read More
The Texas Supreme Court, in response to certified questions from the Fifth Circuit Court of Appeals, held that the installation of faulty flanges in a refinery diesel unit did not constitute “physical injury” to the unit and, therefore, the insurer was not required to cover the cost to replace of the flanges. U.S. Metals, Inc. (“US Metals”) sold ExxonMobil Corporation... Read More
Hoke LLC successfully completed the logistical transfer of defense responsibilities, including all underlying processes, from the primary insurance carriers to the excess carriers for a major products liability asbestos defendant. This is the third time that Hoke LLC has managed this process for a major asbestos defendant, making Hoke LLC the most capable firm in America to help your... Read More
Illinois Jury Finds Against Insurer in Bad Faith Case – Awards $13,000,000 in Punitive Damages A Cook County jury found against ISMIE Mutual Insurance Company (“ISMIE”) in a dispute that alleged ISMIE acted in bad faith in defending its insured obstetricians in an underlying medical malpractice suit. The jury awarded compensatory damages of $1,350,000 and punitive damages of $13,000,000. Alizabeth... Read More
Insurer’s Unreasonable Delay in Accepting Defense Results in Loss of Control A California federal court, applying California law, held that Travelers Indemnity Company of Connecticut (“Travelers”) breached its duty to defend its insured by delaying to provide a defense and, as a result, the Court found that Travelers forfeited its right to select counsel and control the defense. The insured, Centex... Read More
No Coverage After Beverage Product Failed Quality Control and Was Destroyed A Massachusetts appellate court, applying Massachusetts law, held that the loss of a bottled beverage product that was destroyed after quality control testing indicated that there was a risk for spoliation and was not covered under an “all risks” policy because the loss was excluded by a “faulty workmanship”... Read More
WV Supreme Court Reverses $8,000,000 Silica Jury Verdict Against Travelers Due to Late Notice The Supreme Court of Appeals of West Virginia, applying West Virginia law, reversed a jury verdict for $8,000,000 and held that Travelers Indemnity Company (“Travelers”) had no coverage obligation to U.S. Silica under three comprehensive general liability policies finding that the decades-long delay between when the... Read More
Illinois Supreme Court Reverses Appellate Ruling and Holds That the Workers’ Compensation Act and Workers’ Occupational Diseases Act Bar Common-Law Mesothelioma Action The Illinois Supreme Court, applying Illinois law, reversed the Illinois First District Appellate Court and held that an injured employee may not bring a direct common-law action against his employer for a mesothelioma claim because the claim... Read More
Hoke LLC represented owners of a grocery store chain that sustained a complete fire loss. The first-party property insurer denied the claim in total. Within just two months of being hired, Hoke LLC modified the claim and negotiated a settlement without having to file litigation. The settlement provided full recovery for both property damage and lost business income. Read More
The Fifth Circuit, applying Texas law, held that an excess insurance policy issued by Axis Insurance Company (“AXIS”) was not triggered because the insured, Martin Resource Management Corporation (“MRMC”), settled with the underlying primary insurer, Zurich American Insurance Company (“Zurich”), for less than the policy limits and therefore the primary policy was not exhausted as required by the terms... Read More
