NJ Federal Court Finds Ammonia Release A Direct Physical Loss A New Jersey federal court, applying New Jersey law, found that the discharge of ammonia at a manufacturing facility constituted “direct physical loss of or damage to” property. The court reasoned that although there was no actual physical change or alteration to the property, the presence of ammonia caused the... Read More
NY Appellate Court Finds Single Limit For Multiple Parties’ Exposure To Lead Paint. The New York Appellate Court, applying New York law, held that an insurer’s maximum total liability for successive exposure to lead paint in the same apartment was only one policy limit due to a noncumulation clause. Coverage was sought by the insured for bodily injuries sustained by... Read More
First-Party Property Policy Covers 16 Years of Home Water Damage. The Seventh Circuit, applying Wisconsin law, ruled that Chubb Indemnity Insurance Co. (“Chubb”) was liable to its insureds who were seeking recovery for continuous water damage that their home sustained for over 16 years. Based upon the policy language, the court held that coverage was triggered under Wisconsin’s continuous trigger... Read More
10th Cir. Rejects Insurer’s Attempt to Avoid Coverage For Window Defect Claims Based On Faulty Workmanship. The Tenth Circuit, applying Utah law, agreed with the lower court that Cincinnati Insurance Co. (“Cincinnati”) has a duty to defend AMSCO Windows (“AMSCO”) in litigation concerning its manufactured windows, but not for pre-litigation proceedings brought by homeowners under a Nevada statute because they... Read More
Hoke LLC represented a leading Venture Capital firm and a Fortune 500 company in a high-value environmental insurance coverage and bad faith case. Read More
Hoke LLC Conducted an RFP for a state-of-the-art claims and litigation support system for an asbestos defendant policyholder, and secured 100% insurance company funding for the system – outside of the carriers’ limits – at a $3 million estimated NPV. Read More
Control Of Defense: New York Appellate Division Finds Policyholder Has No Standing To Sue Reinsurer Or Right To Demand Independent Counsel. A New York appellate court, applying New York law, held that Colgate-Palmolive Company (“Colgate”) cannot sue its carrier’s reinsurers relating to the control of the insured’s underlying defense because Colgate had no contractual relationship with the reinsurers. The dispute between... Read More
Number Of Occurrences: West Virginia Supreme Court Finds Separate Limits Applicable In Medical Malpractice Case. The West Virginia Supreme Court, applying West Virginia law, ruled that separate limits of $3,000,000 are available for medical malpractice claims in addition to a global settlement of the same amount, and that reformation of the policy was not warranted. The underlying medical malpractice claims relate... Read More
Settlement Covered Despite Lack Of Insurer Consent: Michigan Federal Court Finds Coverage For Policyholder’s Unilateral Settlement Of Claims Without Insurer Consent. A Michigan U.S. district court, applying Michigan law, held an excess insurer liable to Stryker Corporation (“Stryker”) for settlements of claims related to defective artificial knees, notwithstanding the fact that Stryker did not receive the insurer’s consent prior to... Read More
Construction Defect: 5th Cir. Refuses To Apply Contractual Liability Exclusion To Alleged Failure To Do Work In “Good And Workmanlike Manner.” The Fifth Circuit Court of Appeals, applying Texas law, held that a contractual-liability exclusion did not apply to limit the insurer’s coverage obligations to homeowners because the contractually-assumed duty in question did not expand liability. The homeowners contracted with Arrow... Read More
